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Grand Power Logistics Reports Financial Results for the Year of 2015
Marketwired
HONG KONG, CHINA and CALGARY, ALBERTA--(Marketwired - Apr 29, 2016) - Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE:GPW), an international logistics provider based in Hong Kong, today announced its consolidated financial results for the year ended December 31, 2015. All amounts are expressed in the US dollar (US$) except where noted.
Selected 2015 Financial Highlights
(in thousands except per share or % data)
FY 2015
FY 2014
Revenue
$51,063
$72,737
Gross profits
$4,459
$6,046
Gross margins
8.73%
8.31%
Income (loss) from operations
($787)
$37
Income for the year
($1,105)
$581
Income (owners of the Corporation)
($1,051)
$616
Earnings per share
($0.013)
$0.008
Dec. 31, 2015
Dec. 31, 2014
Total assets
$29,870
$33,731
Total liabilities
$18,829
$21,131
Working capital
$2,868
$1,111
Shareholders' Equity (owners of Corporation)
$10,967
$12,472
"The company experienced lower sales revenue for the year primarily due to weaker demand and a decrease in fuel costs. In addition, the lower sales revenue was also partially due to the company's desire to select higher quality and higher margin customers. The company had a loss of $1,104,650 for the year largely due to some non-cash items, including an amortization charge of $380,362 and an impairment charge of $609,421. As well, the company had additional startup expenses in setting up a number of new subsidiaries or branch offices in the year to pursue new businesses, including the new e-commerce business, as a part of the company's diversification strategy," said Mr. Ricky Chiu, President and CEO of Grand Power.
2015 Financial Results
Sales revenue for the year ended December 31, 2015 decreased by $21,673,908 (29.80%) to $51,062,664 from $72,736,572 in 2014. The decrease in sales revenue is primarily due to weaker demand, a decrease in the fuel costs, and the company's decision to select higher quality and higher margin customers.
Gross profit for the year ended December 31, 2015 decreased by 26.25% to $4,458,517 from $6,045,769 in 2014 primarily due to lower sales revenue. Nevertheless, the gross profit margin increased to 8.73% for 2015 compared to 8.31% for 2014.
The loss from operations for the year ended December 31, 2015 was $786,567 compared an income of $36,795 for 2014. The loss for 2015 included an amortization charge of $380,369. As well, during 2015 the Corporation incurred additional expenses in setting a number of new subsidiaries or branch offices to pursue new businesses, including the new e-commerce business.
General operating expenses for the year ended December 31, 2015 decreased by 12.71% to $5,245,084 from $6,008,974 in 2014 primarily due to lower sales.
The loss for the year ended December 31, 2015 was $1,104,650 compared to an income of $581,019 in 2014. The decrease in income for the year was primarily due to the amortization charge of $380,362 and the impairment charge of available for sale investment of $609,421. The loss attributable to the owners of the Corporation for the year ended December 31, 2015 was $1,051,345 compared to an income of $616,405 in 2014.
For the year ended December 31, 2015, the Corporation generated $42,786,006 (83.79 %) of its revenue from its traditional co-loading air freight business, $1,640,802 (3.21%) of revenue from its direct sales air freight business and $6,635,856 (13.00%) of revenue from its ocean freight business. During the corresponding period of 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.
Hong Kong is still the Corporation's largest operating centre in 2015, generating $43,144,223 (84.49%) of the Corporation's total revenue whereas China and other regions accounted for $7,133,961 (13.97%) and $784,480 (1.54%) respectively. For the corresponding period in 2014, Hong Kong generated $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.
Tonnage shipped decreased by 10,888 tonnes (35.35%) to 19,911 tonnes for the year ended December 31, 2015 compared to 30,799 tonnes in 2014.
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 in the fourth quarter of 2014 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), 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.
