GRAND POWER LOGISTICS REPORTS FINANCIAL RESULTS FOR Q3 2010

Generates net profit for second consecutive quarter

CALGARY, Alberta and HONG KONG, China, Nov. 9 /CNW/ - Grand Power Logistics Group Inc. (TSXV: GPW), a leading international logistics provider based in Hong Kong and with operations in China, today announced its consolidated financial results for the three- and nine-month periods ended September 30, 2010.  All amounts are expressed in American currency¹ except where noted.

Selected Q3 Financial Highlights

(in thousands except  share or % data)	Sept. 30,  2010	Sept. 30, 2009	Change
Revenue	$18,227	$18,176	+0.3%
Gross profits	$1,451	$1,932	-24.9%
Gross margins	8.0%	10.6%	-2.6%
Net income (loss)	$13.7	$(9.3)	+$22.9
Earnings (loss) per share	$0.00	$(0.00)	+$0.00
	Sept. 30, 2010	Dec 31, 2009	Change
Total assets	$28,995	$37,175	-22.0%
Working capital	$7,433	$9,927	-25.1%
Total  liabilities	$17,784	$27,717	-35.8%
Shareholders' Equity	$10,414	$8,896	+17.1%

"We are very encouraged by our third quarter results and the progress that we continue to make," said Mr. Ricky Chiu, President and CEO of Grand Power Logistics Group.  "Despite higher airline surcharges that impacted our gross margins, we generated net income for the second consecutive quarter, grew our gross profit per tonne shipped by 26% and reduced our debt level by more than 30%.  We expect this momentum to be sustained for the balance of 2010, as historically, our operations are at their strongest in the second-half of the year due to international shipping trends."

Q3 2010 Financial Operational Highlights

• Generated $13,659 in net income, representing the second consecutive quarter of positive earnings.
• Shipped 7,589 tonnes of cargo, down 40% as a result of a concerted strategy to increase direct sales and reduce co-loading activities.
• Gross profit per tonne shipped increased by 26% to $191.16 per tonne, up from $151.88 as a result of the Company's direct sales strategy and increased concentration of higher margin sales opportunities.
• Reduced operating expenses by $429,170 or 23.7%.
• Reduced debt by 30.8% to $8.9 million from $12.8 million.
• Reduced net debt to capitalization ratio from 18.6% to 12.3%.

Highlights Subsequent to Quarter End

• Closed a non-brokered private placement of 16.7 million common shares at a price of $0.12 per share for gross proceeds of CDN $2 million.

Q3 2010 Financial Results

Grand Power Logistics reported consolidated revenue of $18.2 million for Q3 2010, up 0.3% or $91,175 on a comparative basis from $18.2 million for Q3 2009. The growth was principally due to the recovery of the global economy, and, in particular, increased exports from China to the U.S. and European markets. 

On a segmented basis, the Company generated $13.1 million, or 71.6% of aggregate totals, from its air-freight co-loading services, $3.7 million, or 20.5% of revenue, from its direct sales activities, and $1.4 million, or 7.6% of revenue, from its ocean freight services.  By comparison, the Company's segmented results for Q3 2009 were 76.7% for co-loading services, 9.5% for direct sales activities and 13.7% from ocean freight services. The year-over-year changes are consistent with the Company's decision to increase its focus on direct sales activities.

On a nine-month basis, revenue for 2010 was $54.4 million, down from $59.0 million for 2009. The decline in revenue on a year-to-date basis was due to number of factors, including the divestiture of the Company's subsidiary BSI Logistics as well as to disruptions to international air travel caused by volcanic activity in Iceland.

Gross profit and gross margins were $1.5 million and 8.0%, respectively, for Q3 2010.  These compare to $1.9 million and 10.6%, respectively, for the corresponding period of 2009.  The declines were primarily attributable to higher surcharges imposed by airline carriers in Q3 2010. The charges were passed directly on to customers without any adjustment or mark up by the Company.

On a nine-month basis, gross profit and gross profit margins for 2010 were $4.4 million and 8.0%, respectively. These compare to $5.5 million and 9.3%, respectively, for 2009.  The year-over-year decline was principally due to rate increases levied by air carriers in Q1 2010 as part of general industry-wide trend as well as to higher surcharges in Q3. The timing of the air carrier rate increases, coupled with the terms of existing customer contracts, made it impossible to offset the increased cost of sales with higher customer fees.

Operating expenses for Q3 2010 were $1.4 million, down 23.7% from $1.8 million for the corresponding period of 2009. The decline, which was most notable by a decrease in general and administrative expenses of more than $320,000 was due to the Company's restructuring program implemented in 2009 and ongoing cost-cutting measures. 

Operating expenses for the nine-month period of 2010 were $4.6 million, down from $5.9 million for 2009.  The decline in expenses was primarily due to the Company's restructuring program and ongoing cost-cutting measures.

Net income for Q3 2010 was $13,659 or $0.00 per fully diluted share, representing a positive turnaround of approximately $23,000 when compared to a net loss of $9,251, or $0.00 per fully diluted share, for Q3 2009.  Net income for Q3 2010 included a recovery of $26,078 of the share of costs attributable to minority shareholders affiliated with the Company's subsidiary, Grand Power Logistics Development Co (GPLD), for the development of the Yangshan International Container Transit Logistics Park.

On a nine-month basis, the Company reported a net loss of $311,382, or $0.00 per share fully diluted share, for 2010. This compared to a net loss of $547,570, or $0.01 per fully diluted share, for the corresponding period of 2009.  The decrease in net loss is attributable to a number of factors, including improved market conditions, higher gross margins for tonnage shipped and reduced operating expenses.

As at September 30, 2010, Grand Power had working capital of $7.4 million, including cash totaling $5.3 million. This compares to $9.9 million and $6.1 million, respectively, at December 31, 2009. At September 30, the Company's total liabilities were $17.8 million, down from $27.7 million at year-end 2009.

Outlook

"The continued strengthening of our balance sheet and increasing demand for our services due to the recovery of the global economy augur very well for our future prospects," added Mr. Chiu.  "In the short term, we expect our Q4 results will build on our recent progress, particularly as we drive higher revenue from our direct sales activities as well as lower operating costs. Over the long term, we remain very much committed to developing the Yangshan International Container Transit Logistics Park.  As an important next milestone, we expect to register our joint venture, which is leading the Park's development, as a wholly-owned foreign enterprise, or WOFE, in the coming months."

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. 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, Guangzhou and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles. For more information visit 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.

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¹ Effective April 1 2010, Grand Power adopted the US dollar as its reporting currency.  In accordance with Canadian generally accepted accounting principles (GAAP), all prior year comparative asset and liability balances were translated at historical exchange rates, and income statement balances were translated at the average exchange rate for the respective period.

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