CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwired - Sept. 2, 2014) - 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 June 30, 2014. All amounts are expressed in the US dollar (US$) except where noted.
|
| Selected Q2 2014 Financial Highlights |
|
| (in thousands except per share or % data) |
June 30,
2014 |
June 30,
2013 |
Change |
| Revenue |
$20,481 |
$13,415 |
+52.67% |
| Gross profits |
$1,708 |
$994 |
+71.77% |
| Gross margins |
8.34% |
7.41% |
+12.55% |
| Income (loss) from operations |
$379 |
($607) |
+162.3% |
| Net profit (loss) for the period |
($87) |
$486 |
-117.94% |
| Net profit (loss) (owners of the Corporation) |
($87) |
$480 |
-118.16% |
| Earnings (loss) per share |
($0.001) |
$0.006 |
-$0.007 |
|
June 30,
2014 |
Dec. 31,
2013 |
Change |
| Total assets |
$31,596 |
$31,638 |
-0.001% |
| Working capital |
$2,901 |
$2,908 |
-0.002% |
| Total liabilities |
$18,891 |
$19,331 |
-2.27% |
| Shareholders' Equity (owners of Corporation) |
$12,535 |
$12,142 |
+3.24% |
|
|
|
|
"The company experienced a very strong second quarter from its operations. Sales revenue in the second quarter of the year increased by more than 50% and the gross profit increased by over 70% in comparison to the results in the second quarter of 2013. The increase is primarily due to improvement in the company's Hong Kong operations and also in ocean freight business. As a result, the company also had significant improvement in income from its operations which increased by 162.3% to $378,570 in the second quarter of 2014 from a loss of $607,229 in 2013. We are particularly satisfied that we were able to lower our G&A expenses despite having a significant increase in sales revenue," said Mr. Ricky Chiu, President and CEO of Grand Power.
Q2 2014 Financial Results
Sales revenue for the three months ended June 30, 2014 increased by $7,066,266 (52.67%) to $20,481,130 from $13,414,864 in 2013. The increase in sales revenue is primarily due to the improvement in air freight business in the Corporation's Hong Kong division and the increase in ocean freight business. Gross profit for the three months ended June 30, 2014 increased by 71.77% to $1,707,677 compared to $994,145 in 2013, and gross profit margin increased to 8.34% compared to 7.41% for 2013. The increase in gross profit is primarily due to the increase in revenue.
The income from operations for the three months ended June 30, 2014 was $378,570 in comparison to a loss from operations of $607,229 for 2013. The improvement is primarily due to a higher gross profit and a decrease in general operating expenses.
General operating expenses for the three months ended June 30, 2014 decreased by 17.00% to $1,329,107 compared to $1,601,374 in 2013 despite a significant increase in sales revenue. The decrease in corporate operating expenses was primarily due to the decrease in general and administrative expenses as the Corporation continues to reduce its overhead expenses.
The net loss for the three months ended June 30, 2014 was $87,188 compared to a net profit of $485,959 in 2013. The net loss attributable to the owners of the Corporation for the three months ended June 30, 2014 was $87,191 compared to a net profit of $480,115 in 2013. The decrease in net profit was principally due to the decrease of the Company's share of equity value in associated companies in the amount of $416,881. Without accounting for this equity value, the Company would have a net profit of $329,693.
Sales revenue for the six months ended June 30, 2014 increased by $10,498,090 (40.60%) to $36,353,701 from $25,855,611 in 2013. Gross profit for the six months ended June 30, 2014 increased by 47.63% to $2,919,078 compared to $1,977,227 in 2013, gross profit margin increased to 8.03% compared to 7.65% for 2013. Income from operations for the six months ended June 30, 2014 increased by 134.9% to $264,801 from a loss of $759,464 for 2013. General operating expenses for the six months ended June 30, 2014 decreased by 3.01% to $2,654,277 compared to $2,736,691 in 2013. The net profit for the six months ended June 30, 2014 was $349,494 compared to a net profit of $354,963 in 2013. The net profit attributable to the owners of the Corporation for the six months ended June 30, 2014 was $345,347 compared to a net profit of $352,360 in 2013.
Tonnage shipped increased by 3,713 tonnes (66.11%) to 9,327 tonnes for the three months ended June 30, 2014 compared to 5,615 tonnes in 2013. The increase was primarily due to the improvement in air freight business in the Corporation's Hong Kong division and the increase in ocean freight business.
For the three months ended June 30, 2014, the Corporation generated $17,444,236 (85.2%) of its revenue from its traditional co-loading air freight business, $387,498 (1.9%) of revenue from its direct sales air freight business and $2,649,396 (12.9%) of revenue from its ocean freight business. During the corresponding period of 2013, the Corporation generated $12,671,475 (94.4%) 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.
Hong Kong is still the Corporation's largest operating centre during the second quarter of 2014, generating $18,381,048 (89.7%) of the Corporation's total revenue whereas China and other regions accounted for $1,709,677 (8.3%) and $390,405 (1.9%) respectively. For the corresponding period in 2013, Hong Kong, China and other regions accounted for $11,248,509 (83.8%), $1,699,903 (13.7%), and $466,452 (3.5%), respectively, of the Corporation's total revenue.
Outlook
"While continuing to focus on expanding its core logistics business and increasing efficiencies, the company will also continue to look for opportunities in diversifying its business into other sectors with higher potential for growth and capital appreciation," 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.