HONG KONG, CHINA and CALGARY, ALBERTA -- (Marketwired) -- 04/30/15 -- Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX V: GPW), a leading international logistics provider based in Hong Kong, today announced its consolidated financial results for the year ended December 31, 2014. All amounts are expressed in the US dollar (US$) except where noted.
Selected 2014 Financial Highlights
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(in thousands except per share or %
data) FY 2014 FY 2013 Change
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Revenue $72,737 $62,534 +16.31%
Gross profits $6,046 $4,665 +29.59%
Gross margins 8.31% 7.46% +0.85%
Net profit for the period $581 $1,512 +119.66%
Net profit (owners of the
Corporation) $616 $1,491 -58.67%
Earnings per share $0.008 $0.020 -$0.012
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Dec. 31, 2014 Dec. 31, 2013 Change
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Total assets $33,731 $31,638 +6.62%
Working capital $1,111 $3,720 -70.13%
Total liabilities $21,131 $19,330 +9.32%
Shareholders' Equity (owners of
Corporation) $12,472 $12,142 +2.72%
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"In 2014, the company experienced 16.31% increase in sales revenue to $72,736,572 and 29.59% increase in gross profit to $6,045,769 in comparison to that of 2013 primarily due to the general improvement in the logistic sector and better pricing received by the company during the year. However, the company had a lower net profit in 2014. The net profit for 2014 was $581,019 compared to a net profit of $1,512,444 for 2013 primarily due to the decrease of the gain on revaluation of investment property and on share dilution in associate company," said Mr. Ricky Chiu, President and CEO of Grand Power.
2014 Financial Results
Sales revenue for the year ended December 31, 2014 increased by $10,202,901 (16.31%) to $72,736,572 from $62,533,671 in 2013. The increase in sales revenue for the year was primarily due to the general improvement in the logistic sector during the year and also due to more competitive pricing received by the company from various airlines.
Gross profit for the year ended December 31, 2014 increased by 29.59% to $6,045,769 compared to $4,665,301 in 2013, and gross profit margin increased to 8.31% for 2014 compared to 7.46% for 2013.
General operating expenses for the year ended December 31, 2014 increased by 7.80% to $6,008,974 compared to $5,574,240 in 2013. The increase in operating expenses was primarily due to the expansion of the operating team in China and the increase in bad debts expenses.
The net profit for the year ended December 31, 2014 was $581,019 compared to $1,512,444 in 2013. The decrease in net profit for the year was primarily due to the decrease of the gain on revaluation of investment property and on share dilution in associate company. The net profit attributable to the owners of the Corporation for the year ended December 31, 2014 was $616,405 compared to $1,491,374 in 2013.
For the year ended December 31, 2014, the Corporation generated $65,054,273 (89.44 %) of its revenue from its traditional co-loading air freight business, $1,906,238 (2.62%) of revenue from its direct sales air freight business and $5,776,061 (7.94%) of revenue from its ocean freight business. During the corresponding period of 2013, the Corporation generated $55,655,243 (89.00%) of its revenue from its traditional co-loading air freight business, $2,607,480 (4.17%) of revenue from its direct sales air freight business and $4,270,948 (6.83%) of revenue from its ocean freight business.
Hong Kong is still the Corporation's largest operating centre in 2014, generating $62,951,571 (86.55%) of the Corporation's total revenue whereas China and other regions accounted for $8,260,153 (11.36%) and $1,524,848 (2.09%) respectively. For the corresponding period in 2013, Hong Kong, China and other regions accounted for $53,144,424 (84.99%), $7,252,466 (11.59%), and $2,136,781 (3.42%), respectively, of the Corporation's total revenue.
Tonnage shipped increased by 5,863 tonnes (23.51%) to 30,799 tonnes for the year ended December 31, 2014 compared to 24,936 tonnes in 2013.
Outlook
"During the year, 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 will continue to seek for more investment opportunities 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), one of China's largest economic regions. 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
