HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – Aug. 31, 2015) –
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 June 30, 2015. All amounts are expressed in the US dollar (US$) except where noted.
Selected Q2 2015 Financial Highlights
|(in thousands except per share or % data)||June 30,|
|Net profit (loss) for the period||$234||($87)|
|Net profit (loss) (owners of the Corporation)||$235||($87)|
|Earnings (loss) per share||$0.003||($0.001)|
|Shareholders’ Equity (owners of Corporation)||$12,964||$12,472|
“The company experienced lower sales revenue for the quarter primarily due to weaker demand and a significant drop in fuel surcharge rates, of approximately 48%. This directly impacts revenue as the reduced fuel surcharge rates are directly passed onto our customers. As a result of the lower revenue, the company had a loss of $345,199 from operations for the quarter compared to a profit of $378,570 in 2014. However, the company’s income for the quarter increased to $234,206 from a loss of $87,188 in 2014 primarily due to an increase in the gain on revaluation of investment property,” said Mr. Ricky Chiu, President and CEO of Grand Power.
Q1 2015 Financial Results
Sales revenue for the three months ended June 30, 2015 decreased by $7,929,783 (44.09%) to $10,471,416 from $18,401,199 in 2014. The decrease in sales revenue is primarily due to weaker demand and decrease in fuel surcharge rates of 47.8%.
Gross profit for the three months ended June 30, 2015 decreased by 41.73% to $994,981 compared to $1,707,677 in 2014, and gross profit margin increased to 9.50% compared to 9.28% for 2014.
The income from operations for the three months ended June 30, 2015 decreased by 191.18% to a loss of $345,199 compared to an income of $378,570 for 2014 primarily due to lower gross profit.
General operating expenses for the three months ended June 30, 2015 increased by 2.49% to $1,340,180 compared to $1,329,107 in 2014.
The net income for the three months ended June 30, 2015 was $234,206 compared to a net loss of $87,188 in 2014. The increase in net profit for the year was primarily due to gain on revaluation of investment property. The net profit attributable to the owners of the Corporation for the three months ended June 30, 2015 was $234,958 compared to a net loss of $87,191 in 2014.
Tonnage shipped decrease by 4,052 tonnes (76.82%) to 5,275 tonnes for the three months ended June 30, 2015 compared to 9,327 tonnes in 2014.
For the three months ended June 30, 2015, the Corporation generated $8,932,182 (85.3%) of its revenue from its traditional co-loading air freight business, $277,247 (12.6%) of revenue from its direct sales air freight business and $1,261,987 (12.1%) of revenue from its ocean freight business. During the corresponding period of 2014, the Corporation generated $17,444,236 (94.8%) of its revenue from its traditional co-loading air freight business, $387,498 (2.19%) of revenue from its direct sales air freight business and $ 569,464(3.1%) of revenue from its ocean freight business.
Hong Kong is still the Corporation’s largest operating centre during the second quarter of 2015, generating $8,824,892 (84.3%) of the Corporation’s total revenue whereas China and other regions accounted for $1,358,949 (13.0%) and $287,575 (2.7%) respectively. For the corresponding period in 2014, Hong Kong, China and other regions accounted for $16,301,116 (88.6%), $1,709,677 (9.3%), and $390,405 (2.1%), respectively, of the Corporation’s total revenue.
“In 2014, the company 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 company. Since then, the company had made one investment in a commercial property in Macau and has been continuing seeking additional investment opportunities,” said Ricky Chiu, President and CEO of Grand Power. He added “As well, the company has agreed with some other shareholders of the Yangshan deep seaport project to work together to reactivate the project and is looking forward to successfully moving on multiple fronts to expand its business and diversify its operations.”
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.
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.