CALGARY, ALBERTA and HONG KONG, CHINA -- (Marketwired) -- 11/29/13 -- 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, 2013. All amounts are expressed in the US dollar (US$) except where noted.
Selected Q3 2013 Financial Highlights
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(in thousands except per share Sept. 30, Sept. 30,
or % data) 2013 2012 Change
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Revenue $ 14,294 $ 15,668 -8.77%
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Gross profits $ 1,254 $ 1,160 +8.06%
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Gross margins 8.77% 7.41% +18.35%
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Net income (loss) for the
period $ 154 $ (15) +$170
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Net income (loss) (owners of
Corporation) $ 145 $ 0.08 +$145
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Earnings (loss) per share $ 0.002 $ 0.000 +$0.002
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Sept. 30, Dec. 31,
2013 2012 Change
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Total assets $ 29,571 $ 27,480 +7.6%
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Working capital $ 2,342 $ 3,324 -29.5%
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Total liabilities $ 18,396 $ 16,750 +9.83%
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Shareholders' Equity (owners of
Corporation) $ 11,024 $ 10,590 +4.15%
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"The company experienced an 8.77% decrease in revenue in the third quarter of 2013 compared to the third quarter of 2012 primarily due to the decrease in pricing. However, the company had a higher gross profit as the gross profit margin increased to 8.77% compared to 7.41% in 2012. There's also an improvement in the net profit. The company had a net profit of $154,356 in the third quarter compared to a net loss of $15,299 in the third quarter of 2012," said Mr. Ricky Chiu, President and CEO of Grand Power.
Q3 2013 Financial Results
Sales revenue for the three months ended September 30, 2013 decreased by $1,373,739 (8.77%) to $14,294,448 from $15,668,187 in 2012. The decrease in sales revenue was primarily due to lower pricing. Gross profit for the three months ended September 30, 2013 increased by 8.06% to $1,253,981 compared to $1,160,463 in 2012, and gross profit margin increased to 8.77% compared to 7.41% for 2012. The increase in gross profit is primarily due to a higher margin as more of the revenue was derived from cargoes shipped to markets in North American and Europe.
Operating expenses for the three months ended September 30, 2013 increased by 8.06% to $1,225,529 compared to $1,134,111 in 2012. The increase in operating expenses was due to the increase in development expense as the Company expanded its operating team in China and due to a decrease in bad debt recovery.
The net profit for the three months ended September 30, 2013 was $154,356 compared to a net loss of $15,299 in 2012. The net profit attributable to the owners of the Corporation for the three months ended September 30, 2013 was $145,322 compared to a net profit of $80 in 2012. The increase in net profit was principally due to the increase of non-operating income and a decrease of Company's share of loss of equity accounted investments.
The Corporation generated a negative cash flow from its operations for the three months ended September 30, 2013 of $1,529,539 compared to a positive cash flow of $43,174 in 2012.
Tonnage shipped increased by 147 tonnes (2.27%) to 6,615 tonnes for the three months ended September 30, 2013 compared to 6,468 tonnes in 2012. The improvement was primarily due to the increase of cargo shipment to markets in North America and Europe during the quarter.
For the three months ended September 30, 2013, the Corporation generated $12,652,232 (88.4%) of its revenue from its traditional co-loading air freight business, $651,208 (4.6%) of revenue from its direct sales air freight business and $1,011,009 (7.1%) of revenue from its ocean freight business. During the corresponding period of 2012, the Corporation generated $14,496,301 (92.5%) of its revenue from its traditional co-loading air freight business, $568,323 (3.6%) of revenue from its direct sales air freight business and $603,562 (3.9%) of revenue from its ocean freight business.
Hong Kong is still the Corporation's largest operating centre during the third quarter of 2013, generating $11,954,372 (83.6%) of the Corporation's total revenue whereas China and other regions accounted for $1,815,642 (12.7%) and $524,435 (3.7%) respectively. For the corresponding period in 2012, Hong Kong, China and other regions accounted for $13,270,808 (84.7%), $2,080,073 (13.3%), and $317,306 (2.0%), respectively, of the Corporation's total revenue.
Outlook
"During the third quarter, the company had a higher gross profit compared to 2012 despite lower revenue due to an improvement in gross profit margin. The company was able to achieve a higher gross profit margin as more of its cargo shipments were shipped to markets in North America and Europe. This is resulted from the company effort in the past two years in expanding its oversea agent network and developing higher-margin business. The company will continue to pursue these developments in order to establish a more diversified and balanced portfolio," 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.
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.
Contacts:
Grand Power Logistics
Alan Chan
CFO
(403) 237-8211
alanchan@grandpowerlogistics.com
www.grandpowerlogistics.com
