CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Nov. 29, 2012) - 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, 2012. All amounts are expressed in the US dollar (US$) except where noted.
Selected Q3 2012 Financial Highlights
|(in thousands except per share or % data)||Sept. 30, 2012|| ||Sept. 30, 2011|| ||Change|| |
|Revenue||$||15,668|| ||$||11,274|| ||+39.0||%|
|Gross profits||$||1,160|| ||$||839|| ||+38.26||%|
|Gross margins|| ||7.41||%|| ||7.45||%||-0.54||%|
|Net profit (loss) for the period||$||(15.3||)||$||(183||)||+$167|| |
|Net profit (loss) (owners of the Corporation)||$||0.08|| ||$||(191||)||+$191|| |
|Earnings (loss) per share||$||0.000|| ||$||(0.003||)||+$0.003|| |
| || Sept. 30, 2012|| || ||Dec. 31, 2011|| ||Change|| |
|Total assets||$||23,328|| ||$||23,605|| ||-1.17||%|
|Working capital||$||3,488|| ||$||3,696|| ||-5.63||%|
|Total liabilities||$||13,185|| ||$||13,473|| ||-2.14||%|
|Shareholders' Equity (owners of Corporation)||$||9,995|| ||$||10,009|| ||-0.14||%|
"The company's operating results in 2012 continued to improve in comparison to those in 2011, with the company's sales revenue in the third quarter increased by 39% to $15,668,187 compared to $11,273,930 in 2011. In the third quarter of 2012, the company had a net loss of $15,299 compared to a net loss of $182,617 for the third quarter of 2011. Gross profit margins remained relatively the same," said Mr. Ricky Chiu, President and CEO of Grand Power. "The current business environment in the logistics sector still continues to be relatively weak and competitive as the global economy is still facing many challenges. Nevertheless, the company has reduced its overhead cost structure significantly over the past few years and is in a strong position to benefit as and when the world economy recovers."
Q3 2012 Financial Results
Sales revenue for the three months ended September 30, 2012 increased by $4,394,257 (39%) to $15,668,187 from $11,273,930 in 2011. The increase in sales revenue for the quarter reflected the continual growth of the company's air freight business initiated by the Corporation's expanded oversea agent network in the first quarter of 2012.
Gross profit for the three months ended September 30, 2012 increased by 38.26% to $1,160,463 compared to $839,348 in 2011, and gross profit margin decreased slightly to 7.41% compared to 7.45% for 2011.
The net loss for the three months ended September 30, 2012 was $15,299 compared to a net loss of $182,617 in 2011. The net profit attributable to the owners of the Corporation for this period was $80 compared to a net loss of $190,666 in 2011. Operating expenses for the three months ended September 30, 2012 decreased by 7.03% to $1,134,111 compared to $1,219,822 in 2011. The Corporation generated a positive cash flow from its operations for the quarter ended September 30, 2012 of $43,174 compared to a negative cash flow of $1,377,560 in 2011.
Tonnage shipped increased by 936 tonnes (16.9%) to 6,468 tonnes for the three months ended September 30, 2012 compared to 5,532 tonnes in 2011. The increase was primarily due to the increase of air freight business initiated by the Corporation's recently expanded oversea agent network.
For the three months ended September 30, 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. During the corresponding period of 2011, the Corporation generated $10,077,954 (89.4%) of its revenue from its traditional co-loading air freight business, $524,357 (4.7%) of revenue from its direct sales air freight business and $671,619 (6.0%) of revenue from its ocean freight business.
For the three months ended September 30, 2012, Hong Kong is still the Corporation's largest operating centre, generating $13,270,808 (84.7%) of the Corporation's total revenue whereas China and other regions accounted for $2,080,073 (13.3%) and $317,306 (2.0%) respectively. For the corresponding period in 2011, Hong Kong, China and other regions accounted for $10,092,270 (89.5%), $458,924 (4.1%), and $722,736 (6.4%), respectively, of the Corporation's total revenue.
"In 2012, the company will continue to focus in the expansion of its oversea agent network and the development of the higher-margin, direct sales business. The company will also actively pursue a higher sale volume in the ocean freight business in order to establish a more diversified and balanced portfolio for the company," 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.
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.