Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

November 30, 2015 16:15 ET

Grand Power Logistics Reports Financial Results for Q3 2015

HONG KONG, CHINA and CALGARY, ALBERTA--(Marketwired - Nov. 30, 2015) - Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE:GPW) is pleased to announce its consolidated financial results for the quarter ended September 30, 2015. All amounts are expressed in the US dollar (US$) except where noted.

Selected Q3 2015 Financial Highlights
(in thousands except per share or % data) Sept. 30, 2015 Sept. 30, 2014
Revenue $ 12,144 $ 16,666
Gross profits $ 1,249 $ 1,330
Gross margins 10.29 % 7.89 %
Income (loss) from operations $ 124 $ 96
Net income (loss) for the period $ (72 ) 157
Net profit (loss) (owners of the Corporation) $ (69 ) 157
Earnings (loss) per share $ (0.001 ) $ 0.002
Sept. 30, 2015 Dec. 31, 2014
Total assets $ 28,010 $ 33,731
Total liabilities $ 15,189 $ 21,131
Shareholders' Equity (owners of Corporation) $ 12,700 $ 12,472

"Similar to the second quarter, the company experienced lower sales revenue for the quarter due to weaker demand and a significant decrease in fuel surcharge rates of roughly 56% compared with Q3, 2014. Reduced fuel surcharge rates are directly passed onto our customers. In addition, the lower revenue was also due to the company's decision to select higher quality and higher margin customers. As a result, the gross profit margin for the quarter increased to 10.29% from 7.89% in 2014, and the income from operations increased to $124,279 from $95,995 in 2014. The company had a loss of $72,023 for the quarter primarily due to the company's share of loss in equity accounted investments of associated companies in the amount of $163,560," said Mr. Ricky Chiu, President and CEO of Grand Power.

Q3 2015 Financial Results

Sales revenue for the three months ended September 30, 2015 decreased by $4,522,079 (27.13%) to $12,143,965 from $16,666,044 in 2014. The decrease in sales revenue is primarily due to weaker demand, a decrease in the fuel surcharge rates, and the company's decision to select higher quality and higher margin clients.

Gross profit for the three months ended September 30, 2015 decreased by 6.04% to $1,249,389 compared to $1,329,729 in 2014, and gross profit margin increased to 10.29% compared to 7.98% for 2014.

The income from operations for the three months ended September 30, 2015 increased by 29.46% to $124,279 compared to $95,995 for 2014 primarily due to lower general and administrative expense.

General operating expenses for the three months ended September 30, 2015 decreased by 8.80% to $1,125,110 compared to $1,233,734 in 2014.

The net loss for the three months ended September 30, 2015 was $72,023 compared to a net income of $156,676 in 2014. The decrease is primarily due to the company's share of loss of equity accounted investments of associated companies. The net loss attributable to the owners of the Corporation for the three months ended September 30, 2015 was $69,479 compared to a net profit of $156,679 in 2014.

Tonnage shipped decreased by 1,325 tonnes (20.42%) to 5,124 tonnes for the three months ended September 30, 2015 compared to 6,439 tonnes in 2014.

For the three months ended September 30, 2015, the Corporation generated $10,230,671 (84.2%) of its revenue from its traditional co-loading air freight business, $449,816 (3.7%) of revenue from its direct sales air freight business and $1,463,489 (12.1%) of revenue from its ocean freight business. During the corresponding period of 2014, the Corporation generated $13,698,313 (82.2%) of its revenue from its traditional co-loading air freight business, $400,349 (2.4%) of revenue from its direct sales air freight business and $2,567,384 (15.4%) of revenue from its ocean freight business.

Hong Kong is still the Corporation's largest operating centre during the third quarter of 2015, generating $10,503,199 (86.5%) of the Corporation's total revenue whereas China and other regions accounted for $1,437,011 (11.8%) and $203,755 (1.7%) respectively. For the corresponding period in 2014, Hong Kong, China and other regions accounted for $14,234,519 (85.4%), $2,062,935 (12.4%) and $368,591 (2.2%), respectively, of the Corporation's total revenue.

Outlook

"In pursuit of diversification from the company's core logistics business, the company made an investment in a commercial property in Macau in 2014 and has initiated the development of an e-commerce business in China recently. In addition, the company will continue to pursue the reactivation and development of the Yangshan deep seaport project with other shareholders of the project," 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 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information