Grand Power Logistics Reports Financial Results for Q2 2013 16:30 EST Thursday, Aug 29, 2013
CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwired - Aug. 29, 2013) - 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, 2013. All amounts are expressed in the US dollar (US$) except where noted.
Selected Q2 2013 Financial Highlights | (in thousands except per share or % data) | | June 30, 2013 | | | June 30, 2012 | | Change | |
| Revenue | $ | 13,415 | | $ | 12,870 | | +4.23 | % |
| Gross profits | $ | 994 | | $ | 1,007 | | -1.25 | % |
| Gross margins | | 7.41 | % | | 7.82 | % | -5.24 | % |
| Net income (loss) for the period | $ | 436 | | $ | 5.46 | | +$430 | |
| Net income (loss) (owners of Corporation) | $ | 430 | | $ | 3.97 | | +$426 | |
| Earnings (loss) per share | $ | 0.006 | | $ | 0.000 | | +$0.006 | |
| | | June 30, 2013 | | | Dec. 31, 2012 | | Change | |
| Total assets | $ | 26,568 | | $ | 27,480 | | -3.32 | % |
| Working capital | $ | 2,173 | | $ | 3,324 | | -34.6 | % |
| Total liabilities | $ | 15,703 | | $ | 16,750 | | -6.25 | % |
| Shareholders' Equity (owners of Corporation) | $ | 10,722 | | $ | 10,590 | | +1.25 | % |
"The company experienced a 4.23% increase in revenue in the second quarter of 2013 compared to the second quarter of 2012 primarily due to the improvement in pricing. There was a slight decrease in gross profit of $12,574 and the gross profit margin in the second quarter lowered slightly to 7.41% compared to 7.82% in 2012. However, the company had a net profit of $435,841 in the second quarter compared to a net profit of $5,456 in the second quarter of 2012," said Mr. Ricky Chiu, President and CEO of Grand Power.
Q2 2013 Financial Results Sales revenue for the three months ended June 30, 2013 increased by $544,656 (4.23%) to $13,414,864 from $12,870,208 in 2012. The increase in sales revenue was primarily due to the improvement in pricing.
Gross profit for the three months ended June 30, 2013 decreased by 1.25% to $994,145 compared to $1,006,719 for 2012, and gross profit margin decreased to 7.41% compared to 7.82% for 2012. The decrease in gross profit is primarily due to higher cost.
The net profit for the three months ended June 30, 2013 was $435,841 compared to a net profit of $5,456 in 2012. The net profit attributable to the owners of the Corporation for the three months ended June 30, 2013 was $429,997 compared to a net profit of $3,970 in 2012. The increase in net profit was principally due to the increase of the Company's share of gain of equity in an associate company. Operating expenses for the three months ended June 30, 2013 increased by 43.33% to $1,701,947 compared to $1,204,255 in 2012. The increase in operating expenses was due to the increase in development expense as the Company expanded its operating team in northern China and the increase in restructuring cost in some of its operating divisions.
The Corporation generated a negative cash flow from its operations for the three months ended June 30, 2013 of $434,210 compared to a negative cash flow of $1,059,118 in 2012.
Tonnage shipped decreased by 634 tonnes (10.1%) to 5,615 tonnes for the three months ended June 30, 2013 compared to 6,249 tonnes in 2012. The decrease was primarily due to the general weakness in the logistics sector during the quarter.
For the three months ended June 30, 2013, the Corporation generated $12,671,475 (94.5%) of its revenue from its traditional co-loading air freight business, $588,288 (4.4%) of revenue from its direct sales air freight business and $155,100 (1.2%) of revenue from its ocean freight business. During the corresponding period of 2012, the Corporation generated $10,568,720 (82.1%) of its revenue from its traditional co-loading air freight business, $1,531,147 (11.9%) of revenue from its direct sales air freight business and $770,341 (6.0%) of revenue from its ocean freight business.
Hong Kong is still the Corporation's largest operating centre during the second quarter of 2013, generating $11,248,509 (83.9%) of the Corporation's total revenue whereas China and other regions accounted for $1,699,903 (12.7%) and $466,452 (3.5%) respectively. For the corresponding period in 2012, Hong Kong, China and other regions accounted for $9,352,573 (72.7%), $3,031,236 (23.6%), and $486,399 (3.8%), respectively, of the Corporation's total revenue.
Outlook "The company is very excited about the recent signing of the contract for the purchasing and development of the land for the Yangshan International Container Transit Logistics Park ("Yangshan Logistics Park") by the company's associate company, Grand Power Logistics Development Co. Ltd ("GPLD"). Even though the company has only a minority interest in this project, it is expected that this project will bring significant benefits to the company in the future," 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 https://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. FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
Grand Power Logistics
Alan Chan
CFO
(403) 237-8211
alanchan@grandpowerlogistics.com
www.grandpowerlogistics.com