HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – May 30, 2016) – 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 March 31, 2016. All amounts are expressed in US dollars (US$) except where noted.
Selected Q1 2016 Financial Highlights
| (in thousands except per share or % data) | Mar. 31, 2016 | Mar. 31, 2015 | ||||
| Revenue | $9,162 | $12,478 | ||||
| Gross profits | $1,044 | $1,391 | ||||
| Gross margins | 11.40 | % | 11.14 | % | ||
| Net profit (loss) for the period | ($609 | ) | $25 | |||
| Net profit (loss) (owners of the Corporation) | ($596 | ) | $26 | |||
| Earnings (loss) per share | ($0.007 | ) | $0.0003 | |||
| Mar. 31, 2016 | Dec. 31, 2015 | |||||
| Total assets | $25,875 | $29,870 | ||||
| Total liabilities | $15,377 | $18,829 | ||||
| Shareholders’ Equity (owners of Corporation) | $10,438 | $10,967 |
“The company experienced lower sales revenue for the quarter primarily due to weaker demand and lower surcharges on fuel costs. The gross profit margin for the quarter increased slightly to 11.40% from 11.14% in 2015. Primarily due to lower revenue and higher interest cost, the company had a loss of $609,242 for the quarter compared to an income of $25,265 in 2015,” said Mr. Ricky Chiu, President and CEO of Grand Power.
Q1 2016 Financial Results
Sales revenue for the three months ended March 31, 2016 decreased by $3,315,785 (26.57%) to $9,161,857 from $12,477,642 in 2015. The decrease in sales revenue is primarily due to weaker demand and decrease in fuel costs.
Gross profit for the three months ended March 31, 2016 decreased by 24.90% to $1,044,320 compared to $1,390,527 in 2015, and gross profit margin increased slightly to 11.40% compared to 11.14% for 2015.
The loss from operations for the three months ended March 31, 2016 $384,162 compared to an income of $101,946 for 2015. The loss is primarily due to a lower gross profit.
General operating expenses for the three months ended March 31, 2016 increased by 10.86% to $1,428,482 compared to $1,288,581 in 2015.
The net loss for the three months ended March 31, 2016 was $609,242 compared to an income of $25,265 in 2015. The decrease in income for the quarter was primarily due to lower gross profit and an increase in interest cost.
Tonnage shipped decreased by 690 tonnes (12.82%) to 4,693 tonnes for the three months ended March 31, 2016 compared to 5,383 tonnes in 2015.
For the three months ended March 31, 2016, the Corporation generated $7,434,321 (81.1%) of its revenue from its traditional co-loading air freight business, $425,943 (4.6%) of revenue from its direct sales air freight business and $1,301,593 (14.2%) of revenue from its ocean freight business. During the corresponding period of 2015, the Corporation generated $11,350,002 (91.0%) of its revenue from its traditional co-loading air freight business, $210,119 (1.7%) of revenue from its direct sales air freight business and $917,521 (7.4%) of revenue from its ocean freight business.
Hong Kong was still the Corporation’s largest operating centre during the first quarter of 2016, generating $6,707,581 (73.2%) of the Corporation’s total revenue whereas China and other regions accounted for $1,793,434(19.6%) and $660,841 (7.2%) respectively. For the corresponding period in 2015, Hong Kong, China and other regions accounted for $10,772,458(86.3%), $1,654,206 (13.3%), and $50,978(0.4%), respectively, of the Corporation’s total revenue.
Outlook
“In 2014, the Corporation received approval from its shareholders to diversify its business by making acquisitions and investments in various industrial sectors in addition to the Corporation’s core logistics business. In pursuit of this diversification, the company made an investment in a commercial property in Macau and has initiated the development of an e-commerce business in China in 2015. The company has also been working with other shareholders of the Yangshan deep seaport project with a desire of reactivating and developing the Yangshan project. In 2016, the company will continue to look for more investment opportunities in pursuit of its diversification strategy,” 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.
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.
Alan Chan
CFO
(403) 237-8211
alanchan@grandpowerlogistics.com
www.grandpowerlogistics.com