Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

December 03, 2009 12:32 ET

Grand Power Hires Key VP Sales to Lead South China Direct Sales Team

CALGARY, ALBERTA AND HONG KONG, CHINA--(Marketwire - Dec. 3, 2009) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW) ("Grand Power" or the "Company"), a leading China-based international logistics provider, is pleased to announce that Mr. Wah Fai Chung has joined the Company's direct sales team as Vice President of Sales for Southern China.

Mr. Chung has over 25 years of experience in the logistics industry including air freight, ocean shipping, warehousing and direct sales. His previous position was with a Hong Kong based company with 16 offices in China and over 350 employees, where he served as the Vice President, Direct Sales. He will head up direct sales operations for Grand Power through its Shenzhen office.

Grand Power earns gross margins of 18% to 25% for direct sales in its air freight business, compared to less than 7% for co-loading agency sales. As recently reported in its 2009 third quarter results, the Company's strategy of allocating more capital to direct sales has resulted in a 100% increase in gross margins as a percentage of revenue to almost 11% compared to same period in 2008. This improvement in gross margin as a percentage of revenue combined with a decrease in expenses resulted in a profitable third quarter in 2009, compared to a loss in the same period last year. In the third quarter of 2009 approximetly 10% of revenues were from direct sales and Grand Power intends to continue to increase its direct sales in 2010.

"I am very happy to have joined Grand Power's Direct Sales Team. Given the strength of their networks, experience and dedication of the management, the conditions are ideal for strong growth in the coming years," said Mr. Chung, "Grand Power has been very quick at adapting to changing economic environments, and this agility allows the Company to take advantage of opportunities many other companies are too slow to capitalize on. I look forward to helping the Company to grow the Direct Sales Team revenue with continued expansion in China and to increase in its direct sales customer base across multiple market segments."

"Grand Power welcomes the addition of Mr. Chung to our team. We are fortunate to have someone of his caliber, experience and connections join the company," said Mr. Ricky Chiu, President and CEO of Grand Power Logistics Group, "We have spent many years building up the base co-loading portion of our operations, so we can obtain a larger direct customer business that comes with increasing economies of scale. Margins are significantly higher in direct sales, and this is consistent with our plans to use our foundation to launch into more profitable segments of the logistics market and capture a larger percentage of the rapidly growing Chinese logistics market."

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express) and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles.

Forward-looking statements: Statements included in this press release that are not historical facts may be considered "forward looking statements". All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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