CALGARY, ALBERTA and HONG KONG, CHINA -- (Marketwired) -- 12/01/14 -- Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE: GPW), a leading international logistics provider based in Hong Kong, today announced its consolidated financial results for the quarter ended September 30, 2014. All amounts are expressed in the US dollar (US$) except where noted.
Selected 2014 Q3 Financial Highlights
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Sept. 30, Sept. 30,
(in thousands except per share or % data) 2014 2013 Change
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Revenue $ 18,336 $ 14,294 +28.28%
Gross profits $ 1,330 $ 1,254 +6.04%
Gross margins 7.25% 8.77% +1.52%
Income (loss) from operations $ 96 $ 134 -28.49%
Net profit (loss) for the period $ 157 $ 137 +14.34%
Net profit (loss) (owners of the
Corporation) $ 157 $ 128 +22.42%
Earnings (loss) per share $ 0.002 $ 0.002 $ 0.00
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Sept. 30, Dec. 31,
2014 2013 Change
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Total assets $ 30,669 $ 31,638 -3.06%
Working capital $ 2,662 $ 2,908 -8.46%
Total liabilities $ 18,126 $ 19,331 -6.16%
Shareholders' Equity (owners of
Corporation) $ 12,360 $ 12,142 +1.80%
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"The company is satisfied with its operating results in the third quarter as it experienced an increase of 28.28% in sales revenue and an increase of 14.34% in net income in comparison to the results in the third quarter of 2013. The increase in sales revenue is primarily due to improvement in the company's air and ocean freight business. The company's sales revenue in ocean freight business was $4,237,654 versus $1,011,009 in the third quarter in 2013," said Mr. Ricky Chiu, President and CEO of Grand Power.
2014 Q3 Financial Results
Sales revenue for the three months ended September 30, 2014 increased by $4,041,868 (28.28%) to $18,336,316 from $14,294,448 in 2013. The increase in sales revenue is due to the increase in the Corporation's air and ocean freight business. Gross profit for the three months ended September 30, 2014 increased by 6.04% to $1,329,729 compared to $1,253,981 in 2013, and gross profit margin decreased to 7.25% compared to 8.77% for 2013. The decrease in gross profit margin is primarily due to the increase in ocean freight business which has a lower gross profit margin.
The income from operations for the three months ended September 30, 2014 decreased by 28.49% to $95,995 compared to $134,237 for 2013 primarily due to higher general and administrative expenses.
General operating expenses for the three months ended September 30, 2014 increased by 10.18% to $1,233,734 compared to $1,119,744 in 2013.
The net profit for the three months ended September 30, 2014 was $156,676 compared to a net profit of $137,022 in 2013. The net profit attributable to the owners of the Corporation for the three months ended September 30, 2014 was $156,679 compared to a net profit of $127,988 in 2013.
Sales revenue for the nine months ended September 30, 2014 increased by $14,539,958 (36.21%) to $54,690,017 from $40,150,059 in 2013. Gross profit for the nine months ended September 30, 2014 increased by 31.49% to $4,248,807 compared to $3,231,208 in 2013, and gross profit margin decreased to 7.77% compared to 8.05% for 2013. Income from operations for the nine months ended September 30, 2014 increased by 157.71% to $360,795 from a loss of $625,228 for 2013. General operating expenses for the nine months ended September 30, 2014 increased by 0.82% to $3,888,012 compared to $3,856,436 in 2013. The net profit for the nine months ended September 30, 2014 was $506,169 compared to a net profit of $491,984 in 2013. The net profit attributable to the owners of the Corporation for the nine months ended September 30, 2014 was $502,025 compared to a net profit of $480,347 in 2013.
Tonnage shipped decreased by 176 tonnes (2.66%) to 6,439 tonnes for the three months ended September 30, 2014 compared to 6,615 tonnes in 2013.
For the three months ended September 30, 2014, the Corporation generated $13,698,313 (74.7%) of its revenue from its traditional co-loading air freight business, $400,349 (2.2%) of revenue from its direct sales air freight business and $4,237,654 (23.1%) of revenue from its ocean freight business. During the corresponding period of 2013, the Corporation generated $12,632,232 (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.
Hong Kong is still the Corporation's largest operating centre during the third quarter of 2014, generating $15,904,789 (86.7%) of the Corporation's total revenue whereas China and other regions accounted for $2,062,935 (11.3%) and $368,591 (2.0%) respectively. For the corresponding period in 2013, Hong Kong, China and other regions accounted for $11,954,372 (83.6%), $1,815,642 (12.7%), and $524,435 (3.72%), respectively, of the Corporation's total revenue.
Outlook
"On June 27, 2014, the Corporation received approval from its shareholders to diversify its business by making acquisitions and investments in various industry sectors in addition to the core logistics business of the Corporation as long as the cumulative costs of these acquisitions or investments do not exceed twenty percent of the value of the total assets of the Corporation. Since then, the Corporation has been evaluating a number of opportunities and is looking forward to complete one or more of these acquisitions or investments in other industry sectors in the coming quarters," 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.
Contacts:
Grand Power Logistics Group Inc.
Alan Chan
CFO
(403) 237-8211
(403) 228-3013 (FAX)
alanchan@grandpowerlogistics.com
www.grandpowerlogistics.com
