Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

May 01, 2007 15:30 ET

Grand Power Reports Revenue Growth and Gains in US Cargo Business

CALGARY, ALBERTA and HONG KONG, CHINA--(CCNMatthews - May 1, 2007) - Grand Power Logistics Group Inc. ("Grand Power") (TSX VENTURE:GPW) is pleased to announce its consolidated financial results for the year ended December 31, 2006. These results include the operating results of Grand Power's wholly-owned subsidiary, Grand Power Express International Limited of Hong Kong (GP Express).

Grand Power reports strong revenue growth for the Fiscal Year ending 31 December 2006. Revenue increased by 47.1% to C$59,161,191 compared to C$40,210,391 during the same period in 2005. Net earnings for the year decreased by 4.02% to C$668,437 compared to $696,464 for 2005, while basic and fully-diluted earnings per share for the period were C$0.031 and $0.030 respectively.

The Company also experienced a robust growth in cargo volume during 2006, with shipments increasing by 40.6% to 26,427 tonnes compared to 18,801 tonnes in the same period last year. The strongest growth was in the North American markets which grew by 474% to 3,712 tonnes in 2006 compared to 646 tonnes in the previous year. The company also experienced strong gains in the intra-Asia markets with 19,153 tonnes shipped, an increase of 28.8% over 14,874 shipped in 2005. Cargo volume to the European markets increased by 8.6% to 3,563 tonnes, compared to 3,281 shipped during the previous year.

The net profit margin for 2006 dropped to 1.13% compared to 1.73% for the previous year, partially due to the strength of the Canadian dollar against the Hong Kong dollar during the year. This was a year of aggressive corporate expansion for Grand Power and higher expenses were expected as a result. This was a also a challenging year for the airfreight sector with higher costs associated with fuel surcharges, security charges and terminal handling fees which are passed through to customers without any mark-up.

Ricky Chiu, President and CEO of Grand Power said "We are pleased with our progress during 2006. Our objectives were to gain a foothold in North America, expand our presence into the key areas of China, and strengthen our sales and management team to support this growth, particularly in Europe and North America." Chiu adds, "We met those objectives by opening a subsidiary office in Los Angeles, as well as Branch Offices and Subsidiaries in Shanghai and in cities on the Pearl River Delta region, including Guangzhou, Shenzhen and Jiangmen. Adding more strength and international experience to our sales team has also been very effective. As a result, we increased the number of high-margin direct customers, and significantly grew our business to the overseas markets, demonstrated by the sharp triple-digit increase in trans-Pacific business."

In looking to the future, Mr. Chiu is remains confident; Chiu said, "We have a proven strategy to continue to grow our business and our worldwide exposure. In the coming year, we will continue to focus on building our base of direct clients. These higher margin direct clients provide us with the opportunity to increase our profit margin and strengthen our bottom line for our shareholders."

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: tatements 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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