T3EX Global Holdings (2636 TT) major issues approved by the board of directors are listed below. For further information, please do not hesitate to contact me.
1. Audited financial results of 2015
Expressed in thousands of New Taiwan Dollars
| 2015 | 2014 | YoY | |
| Revenue | 9,736,912 | 9,729,513 | 0.08% |
| Gross Profit | 1,877,272 | 1,659,065 | 13.15% |
| Gross Margin | 19.28% | 17.05% | 2.23% |
| Operating income | 312,196 | 225,141 | 38.67% |
| Profit before tax | 397,257 | 273,906 | 45.03% |
| Profit after tax | 303,900 | 206,665 | 47.05% |
| EPS(Dollars) | 2.70 | 2.14 | 26.17% |
A. 2015 gross margin significantly grew to 19.28% from 17.5% from 2014, with a record-high net profit and an EPS of NT$2.7. The key reasons to the profit growth are as follows:
(1) Developing high-margin long-distance sea freight services: The sea shipping prices started decreasing month by month on marked growth in ship freight supply since 2Q15. Compared with the same period of 2014, the Company's long-distance sea freight business posted a mild growth. Meanwhile, China's 2015 total import/export trade volume was down 7% on the back of global economy's slow growth and sluggish demand growth, according to statistics from the Customs Administration. Hence, the Company's sea freights slightly decreased amid the unfavorable global economic conditions. Despite decreasing shipping prices and flat freight growth, the Company still saw increases in gross profit and gross margin, mainly thanks to the Company's continuous efforts to develop the high-margin long-distance sea freight business for imports/exports to and from the U.S. and Canada as well as strong bargaining power to reduce costs for better earnings performance compared to the previous year.
(2) Developing the CFS and LCL businesses with the collection hub model: The CFS and LCL businesses are expected to blossom following the trend of smaller, lighter, thinner, and diversified products. Therefore, the Company uses major airports and seaports as hubs for traditional cargo collection as well as emerging CFS and LCL businesses to create new cost-effective business opportunities. The hub service may help clients deal with problems caused by unexpected production delays, transportation changes, and coordination difficulties of supply chain. With a tight-knit network in the Asia-Pacific region, we provide SMEs services to send products to anywhere in the world.
(3) Developing integrated logistics services: We provide integrated one-stop-shop services for international shipping, domestic trade warehousing, freight transportation, supply chain management, to e-commerce logistics. We aim to turn "logistics" from a factor for cost management to a creator for value-added services to help enterprises integrate all available internal and external resources to reduce costs, enhance efficiency, and increase market share.
B. 2.For the 2016 product portfolio plan, T3EX aims to continue enhancing the core products and integrating the Group's multiple brand businesses to realize the goal to provide clients the one-stop-shop logistics services so as to achieve synergistic effects through the following subsidiaries - through T.H.I. Logistics(THI) to offer long-distance sea and air freight services to international clients, through Taiwan Express(TEC) to provide logistics management services for upstream component supply chain in Asia, through Shanghai Yaohwa (YHI)to provide import customs services, through T-Cube Logistics(T-Cube) to offer warehousing and distribution services, and through Shanghai Exer Logistics(EXer) to provide delivery services.
C. For the 2016 network development plan, T3EX aims to continue maintaining strong relations with its 400 plus oversea agencies and establishing a comprehensive network in the Asia-Pacific region with a reach extending into Malaysia, the Philippines, and India. Moreover, T3EX will keep looking for supply chain management and freight forwarding companies in China for future investment and strategic alliance opportunities to expand business scale.
D. In addition, this happens to be the best timing for T3EX to develop the cross-border rail freight business amid China's "One Belt and One Road" implementation period. As of now, T3EX has set up rail project units in China's Zhengzhou, Suzhou, and Chendu to actively promote the new business channel. In the meantime, T3EX has also earned long-term business contracts with several major import/export enterprises. These clients require freight pickup services in half of China's provinces and municipalities (Henan, Hebei, Tianjin, Shandong, Anhui, Hunan, Hubei, Shanghai, Jiangsu, Jiangxi, Zhejiang, Guangdong, Fujian, and Beijing). Accordingly, T3EX has successfully laid a solid foundation in the Pan-Pearl River Delta, Yangtze River Delta, Circum-Bohai Sea Economic Zone, and northeast China.
2. Appropriations of earnings to shareholders approved by the Company's board of directors:
In view of the overall business operations this year, the board of directors approved to issue a dividend of NT$ 2 (stock dividend of NT$0.2 and cash dividend of NT$1.8) per share based on the shares outstanding. The Company's annual general meeting of shareholder is scheduled to be held on May 31, 2016 to discuss the agenda on acknowledgement of the auditor's report, earnings distribution plan, etc.
Press Release Contact Window
Ms. Echo Wan, Vice President
Direct Line: +886 2 2753 2093 ext.107
+886 2 2742 3165
E-mail：echowan@thi-group.com
Ms. Linda Hsu, Assistant Manager
Direct Line: +886 2 2753 2093 ext. 193
E-mail: lindahsu@thi-group.com
End of Press Release