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Grand Power Logistics Reports Financial Results for the Year of 2012

Apr 30 2013 12:00AM

Marketwire

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CALGARY, ALBERTA and HONG KONG, CHINA -- (Marketwired) -- 04/30/13 -- 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 year ended December 31, 2012. All amounts are expressed in the US dollar (US$) except where noted.

Selected 2012 Financial Highlights----------------------------------------------------------------------------(in thousands except per share or % data) FY 2012 FY 2011 Change----------------------------------------------------------------------------Revenue $ 61,336 $ 50,980 +20.31%Gross profits $ 4,667 $ 3,670 +21.17%Gross margins 7.61% 7.20% +0.41%Net profit (loss) for the period $ 770 $ (1,653) +$2,424Net profit (loss) (owners of the Corporation) $ 799 $ (1,604) +$2,404Earnings (loss) per share $ 0.011 $ (0.021) +$0.032---------------------------------------------------------------------------- Dec. 31, 2012 Dec. 31, 2011 Change----------------------------------------------------------------------------Total assets $ 27,480 $ 23,073 +19.10%Working capital $ 3,324 $ 3,586 -7.32%Total liabilities $ 16,750 $ 13,141 +27.46%Shareholders' Equity (owners of Corporation) $ 10,590 $ 9,763 +8.47%----------------------------------------------------------------------------



"The company's operating results for 2012 improved significantly in comparison to those in 2011, with the company's sales revenue in the year increased by 20.31% to $61,336,069 compared to $50,979,974 in 2011. In 2012, the company had a net profit of $770,151 compared to a net loss of $1,653,553 for 2011," said Mr. Ricky Chiu, President and CEO of Grand Power. "In particular, we are also very satisfied that our general and administration expenses continued to decrease despite of a higher revenue. We believe that we are in a strong position to benefit as the world economy continues to recover."

2012 Financial Results

Sales revenue for the year ended December 31, 2012 increased by $10,356,095 (20.31%) to $61,336,369 from $50,979,974 in 2011. The increase in sales revenue for the year reflected the continual growth of the air freight business initiated by the Corporation's expanded oversea agent network in the first quarter of 2012.

Gross profit for the year ended December 31, 2012 increased by 27.17% to $4,667,428 compared to $3,670,127 in 2011, and gross profit margin increased to 7.61% compared to 7.20% for 2011. The increase in gross profit is primarily due to the increase in revenue.

The net profit for the year ended December 31, 2012 was $770,151 compared to a net loss of $1,653,553 in 2011. The net profit attributable to the owners of the Corporation for the year ended December 31, 2012 was $799,381 compared to a net loss of $1,604,249 in 2011. Operating expenses for the year ended December 31, 2012 decreased by 21.97% to $5,157,778 compared to $6,610,312 in 2011. The significant increase in net profit in 2012 compared to 2011 is partly due to the gain on revaluation of investment property of the Corporation in 2012 and the goodwill impairment taken in 2011.

For the year ended December 31, 2012, the Corporation generated $53,076,370 (86.5%) of its revenue from its traditional co-loading air freight business, $5,303,827 (8.6%) of revenue from its direct sales air freight business and $2,955,872 (4.8%) of revenue from its ocean freight business. During the corresponding period of 2011, the Corporation generated $47,280,046 (88.6%) of its revenue from its traditional co-loading air freight business, $2,813,642 (5.3%) of revenue from its direct sales air freight business and $3,245,744 (6.1%) of revenue from its ocean freight business.

Hong Kong is still the Corporation's largest operating centre in 2012, generating $48,129,942 (78.5%) of the Corporation's total revenue whereas China and other regions accounted for $11,654,007 (19.0%) and $1,552,120 (2.5%) respectively. For the corresponding period in 2011, Hong Kong, China and other regions accounted for $41,905,522 (78.6%), $8,550,785 (16.0%), and $2,883,124 (5.4%), respectively, of the Corporation's total revenue.

Tonnage shipped increased by 2,660 tonnes (10.8%) to 27,184 tonnes for the year ended December 31, 2012 compared to 24,524 tonnes in 2011. The increase was primarily due to the continual growth of the air freight business initiated by the Corporation's recently expanded oversea agent network.

Outlook

"In 2013, the company will continue to focus on the expansion of its oversea agent network and the development of higher-margin business and higher sale volume in the ocean freight business in order to establish a more diversified and balanced portfolio," 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.



Contacts:
Grand Power Logistics Group Inc.
Alan Chan
CFO
(403) 237-8211
alanchan@grandpowerlogistics.com





Source: Marketwire


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