Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

December 03, 2007 09:30 ET

Grand Power Reports Q3 Results; Revenue Growth Remains Strong

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Dec. 3, 2007) - Grand Power Logistics Group Inc. ("Grand Power" or "Company") (TSX VENTURE:GPW) is pleased to announce the consolidated financial results for the third quarter ending, September 30, 2007, which include the operating results of its wholly owned subsidiary, Grand Power Express International Ltd ("GP Express") of Hong Kong and GP Express' subsidiaries in China and Macau.

Grand Power reports that revenue growth remained strong, increasing by 68.1% to C$29,840,238 for the third quarter, compared to C$17,746,523 for the same period in 2006. For the first nine month period, the revenues were $66,042,023 compared to $37,936,069 for the corresponding period in 2006 for a growth 74%. During the third quarter, the net earnings after income tax decreased 89.5% to $25,059 compared to $239,022 for the same 3 month period in 2006. As a result, basic and fully diluted earnings per share for the quarter were both $0.001 per share. The decrease in net earnings was due mainly to higher expenses related to the Company's aggressive expansion activities in all regions where Company has operations, as well as an increase in interest costs related to those expansion activities.

The EBITA (earnings before interest, taxes and amortization) for the quarter was $203,964 compared to $306,935 in the third quarter of 2006. However, EBITA for the nine months ended September 30, 2007 increased by 54% to $1,039,046 compared to $674,687 for the corresponding period in 2006, when the one-time cost of stock based compensation is excluded.

Tonnage shipped by the Company increased by 60% to 11,521 tonnes for the third quarter compared to 7,211 tonnes in the same period in 2006. For the first nine months, the tonnage shipped was 27,502 tonnes compared to 18,064 tonnes for the first nine months in 2006 for an increase of 52.25%.

Ricky Chiu, President and CEO of Grand Power Logistics Group said, "In spite of the increased cost of fuel and the costs associated with expanding our presence globally, we remain profitable, with strong growth in revenue and a healthy EBITA. Like any growth company, we expect to experience narrower margins as we aggressively expand. Once the start-up costs of bringing on new locations or expanding existing operations are absorbed, we expect the bottom line contributions from those operations to be more positive as the number of customers increases and cargo volumes grow."

Commenting on the future, Mr. Chiu said, "Our growth has been strong, and it has been consistent with our well-defined strategy. We remain well-positioned for the continued industrialization of China, which is an important factor for our continued growth. We will continue to evaluate growth opportunities that will strengthen our presence in key locations in the Asia Pacific region and around the world. As we continue to develop the important and higher margin direct client business, we expect tonnage growth to remain strong as in the past."

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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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