Beijing Logistic, Inc. Announces Strong Year-End 2007 Financial Results
Wednesday April 16, 4:30 pm ET
-- 2007 Revenues Increased 51.8% to $85.9 million
-- 2007 Net Income Increased 41.7% to $13.5 million
-- 2007 EPS reached $0.14 per diluted share
NEW YORK & BEIJING--(BUSINESS WIRE)--Beijing Logistic, Inc. (the "Company") (OTC Bulletin Board: BJGL - News), one of China's largest third-party logistics providers, specializing in books & magazines, agricultural products and Chinese traditional medicine storage and shipping, today announced operating results for year-end 2007.
2007 Full Year Highlights
Net revenues for the full year 2007 increased 51.8% to $85.9 million compared to $56.6 million for the full year 2006:
The major contribution of this growth was the expansion of our books logistics business. In 2007, revenues from books and magazines logistics management increased 66.8% from 2006, to approximately $51.9 million USD.
Ms. Zhang, Chief Executive Officer of Beijing Logistic, explained, "The growth was due to our continued focus on expanding warehouse service offerings as a third party logistics trustee company to the publishing Industry. We built new distribution centers in large cities to organize and manage inventory for many publishers, and as a result, we earned profit not just from book and magazine shipping, but also from the management service in the warehouse. We diversified services, and improved efficiency in order to satisfy the requirement of different clients, and the client base in the publishing business segment has increased."
In addition, the revenues from the agricultural products and traditional medicine business segments also increased 34.4% and 38.5%, reaching $19.6 million USD and $13.9 million USD, respectively from 2006 to 2007.
Gross profit for 2007 was $20.16 million USD, or 23.47% of net sales, as compared $14.15 million USD, or 25% of net sales in 2006:
Gross Profit increased approximately $6.01 million USD due to higher revenues, however, gross margin decreased 1.53% due to the following: relatively higher increase of our cost of revenues: $64,186,115 USD in fiscal 2007 (or 74.7% of net revenues), an increase of $22,917,948 USD (or approximately 55.5%) over the cost of revenues in fiscal 2006; higher salaries and benefits; higher fuel costs, and professional fees related to going public in the United States.
Full year 2007 net income was $13.5 million USD, an increase of approximately $3.9 million USD, or 41.7%, from the full year 2006.
Working capital was $11,552,857 USD as of December 31, 2007.
Cash and cash equivalents were $13,755,350 USD as of December 31, 2007, and current assets totaled $15,027,321 USD as of December 31, 2007. Total current liabilities were $3,474,464 USD as of December 31, 2007. During 2007, the Company generated $15.6 million USD in cash from operations, an increase of approximately $4.8 million USD over the 2006 level, which reflected the increase in revenue in 2007.
Ms. Zhang Yu, Chief Executive Officer of Beijing Logistic summarized, "2007 was a notable year for Beijing Logistic, we were striving to become the largest book logistics company in China, the highest ranked third-party logistics company, and the most renowned logistics company."
"About the future", she continued, "for 2008, our economic activity is expected to continue to expand with a moderate pace. As a result, we expect our revenue trends to moderate in 2008, with growth driven by books and magazine logistics management. In order to support long-term volume growth, we expect to open additional distribution centers in China, launch new warehouses, and improve our warehouse storage volume and operational functionality to plan, receive, process, and invoice activities."
About Beijing Logistic, Inc
Beijing Logistic, Inc. conducts business in China through its operational subsidiary-Beijing Baolong Logistics, Co. Ltd. It is one of China's largest third-party logistics providers, specializing in Books & Magazines, agricultural products and Chinese traditional medicine storage and shipping. It provides full-service, client-specific solutions to clients in the industry above, combining the flows of goods, information, and funds. For more company information, please visit its website: www.beijinglogisticinc.com.
