Grand Power Logistics Reports Financial Results For Q2 2012

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Aug. 30, 2012) - Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE:GPW), a leading international logistics provider based in Hong Kong, today announced its consolidated financial results for the quarter ended June 30, 2012. All amounts are expressed in the US dollar (US$) except where noted.

Selected Q2 2012 Financial Highlights

(in thousands except per share or % data)	Jun. 30, 2012		Jun. 30, 2011		Change
Revenue	$12,870		$12,435		+3.50	%
Gross profits	$1,007		$910		+10.63	%
Gross margins	7.82	%	7.32	%	+6.90	%
Net profit (loss) for the period	$5.4		($241	)	+$246
Net profit (loss) (owners of the Corporation)	$4.0		($222	)	+$226
Earnings (loss) per share	$0.000		($0.003	)	+$0.003
	Jun. 30, 2012		Dec. 31, 2011		Change
Total assets	$23,949		$23,652		+1.26	%
Working capital	$3,399		$3,696		-8.03	%
Total liabilities	$13,853		$13,473		+2.82	%
Shareholders' Equity (owners of Corporation)	$9,933		$10,010		-0.77	%

"The company's operating results in the second quarter of 2012 have improved significantly in comparison to the second quarter in 2011, with a net profit of $5,456 compared to a net loss of $240,784. Gross profit margins have also improved as a result of growth in the company's direct sales business," said Mr. Ricky Chiu, President and CEO of Grand Power. "We are hopeful that this trend will continue in the second half of the year as the third and fourth quarters are usually the stronger quarters for the company."

Q2 2012 Financial Results

Sales revenue for the three months ended June 30, 2012 increased by $434,930 (3.5%) to $12,870,208 from $12,435,278 in 2011. The increase in sales revenue for the quarter reflected the growth of the company's direct sales business.

Gross profit for the three months ended June 30, 2012 increased by 10.6% to $1,006,719 compared to $909,956 in 2011, and gross profit margin increased to 7.82% compared to 7.32% for 2011. The increase in gross profit is primarily due to an increase in revenue and higher margin from direct sales business.

The net profit for the three months ended June 30, 2012 was $5,456 compared to a net loss of $240,784 in 2011. The net profit attributable to the owners of the Corporation for this period was $3,970 compared to a net loss of $222,373 in 2011. Operating expenses for the three months ended June 30, 2012 increased by 6.1% to $1,204,255 compared to $1,135,421 in 2011.

The Corporation generated negative cash flow from its operations for the quarter ended June 30, 2012 of $117,513 compared to a negative cash flow of $188,033 in 2011.

Tonnage shipped increased by 72 tonnes (1.2%) to 6,249 tonnes for the three months ended June 30, 2012 compared to 6,177 tonnes in 2011. The increase was primarily due to the growth of direct sales business.

For the three months ended June 30, 2012, the Corporation generated $10,568,720 (82.1%) of its revenue from its traditional co-loading air freight business, $1,531,147 (11.9%) of revenue from its direct sales air freight business and $770,341 (6.0%) of revenue from its ocean freight business. During the corresponding period of 2011, the Corporation generated $11,619,523 (93.4%) of its revenue from its traditional co-loading air freight business, $295,004 (2.4%) of revenue from its direct sales air freight business and $520,752 (4.2%) of revenue from its ocean freight business.

For the three months ended June 30, 2012, Hong Kong is still the Corporation's largest operating centre, generating $9,352,573 (72.7%) of the Corporation's total revenue whereas China and other regions accounted for $3,031,236 (23.6%) and $486,399 (3.8%) respectively of revenue for the three months ended June 30, 2012. For the corresponding period in 2011, Hong Kong, China and other regions accounted for $10,668,478 (85.8%), $948,608 (7.6%), and $818,192 (6.6%), respectively, of the Corporation's total revenue.

Outlook

"In 2012, the company will continue to focus in the expansion of our oversea agent network and the development of the higher-margin, direct sales business. The company will also actively pursue a higher market share in the ocean freight business in order to establish a more diversified and balanced portfolio for the company," said Ricky Chiu, President and CEO of Grand Power.

About Grand Power Logistics Group Inc.

Grand Power 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 and Guangzhou. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Beijing, Tianjin and Xiamen. For more information, please visit http://www.grandpowerlogistics.com.

Forward-looking Information

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.