Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

August 30, 2005 09:00 ET

Grand Power Reports First Six Month Results of 2005

CALGARY, ALBERTA and HONG KONG, PEOPLES REPUBLIC OF CHINA--(CCNMatthews - Aug. 30, 2005) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW) (the "Corporation") today announced its consolidated financial results for the 6 months ended June 30, 2005, which include the operating results of its wholly owned subsidiaries, Grand Power Express International Ltd ("Grand Power Express") of Hong Kong and its subsidiary, United Air Cargo and Express Co. Ltd ("United Air Cargo") of Macau. (Since the Corporation has only become a public company in November, 2004, the first 6 month results of 2005 are compared to the results of an average 6 month period in 2004).

Financial Highlights (CDN$) for 6 Months Ended June 30, 2005:

- Generated revenue of $16,620,535 compared to $14,868,710 for an average 6 month period in 2004 for an increase of 11.78%.

- Tonnage shipped by the Corporation increased by 31% to 8,083 tonnes compared to 6,167 tonnes in the corresponding period in 2004.

- Net earnings increased 28.7% to $361,836 compared to $281,213 for an average 6 month period in 2004.

-Basic and diluted earnings per share for the period were $0.034 and $0.023 per share respectively.

Discussion of Results:

The Corporation had a significant improved 6 month period compared to the average 6 month period in 2004, particularly if one looks at the results of Grand Power Express itself. The Corporation's 11.78% revenue growth in the first 6 months of 2005 was attributable to a number of factors, including expansion of the company's business to new markets in China, increase of shipment to Europe and USA, and increase in ocean shipment.

The overall increase in weight handled in the first 6 months of 2005 was attributable to Grand Power Express' continuing effort in its sale and marketing program, as well as to the continued utilization of Hong Kong as the traditional shipping hub for Southern China.

Grand Power Express:

Based on the unaudited results of Grand Power Express itself, Grand Power Express had revenues of $16,620,525CDN (HK$104,804,857) for the first 6 months of 2005 compared to $10,049,577CDN (HK$58,465,166) for the same period in 2004 for an increase of 65.4% in CDN$ and 79.3% in HK$, with the difference between CDN$ and HK$ percentages due to foreign currency changes. Its net earnings after income tax were $599,074 (HK$3,766,571) compared to $395,261 (HK$2,299,502) for the same period in 2004 for an increase of 63.8% in HK$.

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned subsidiary, Grand Power Express, which commenced business in Hong Kong in March 2002 as an airfreight forwarding service. Although Grand Power Express is principally an airfreight provider, it also provides sea freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services for clients. The Grand Power group is uniquely positioned in Asia, with its headquarters in Hong Kong and supporting offices in Macau, Shanghai, Guangzhou, Taipei and Bangkok. The Company has obtained key agent status with eight (8) airlines such as Cathay Pacific and Thai Airways. Grand Power began trading on the TSX Venture Exchange in November 2004.

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

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