T3EX Global Holdings (2636 TT) Obtained Board Approval to Ink Stock Purchase Deal with Shanghai COD & File for Listing on the "New Three Board"

Major issues approved by the board of directors are listed below. For further information, please do not hesitate to contact me.

A. Audited financial results of 1H 2015

Expressed in thousands of New Taiwan Dollars

	1H2015	1H2014	YoY
Revenue	4,989,292	4,441,342	12.34%
Gross Profit	922,644	764,211	20.73%
Operating income	157,347	91,646	71.69%
Profit before tax	187,792	100,174	87.47%
Profit after tax	145,515	76,126	91.15%
EPS(Dollars)	1.40	0.83	68.67%

 

1. Despite a revenue gain of only 12% in 1H, T3EX Global Holdings' multinational tender services continue to increase in volume, thanks to the growth of sea and air freight businesses (6.4% and 5% respectively), a combined land, sea, and air multimodal transport system, as well as a high-density agency network worldwide. Moreover, a total GM of 18.5% was reached, beating 17.2% from the same period last year, as economies of scale actually generated higher profit in acquiring sea and air cargo space during weak seasons. Net profit and EPS also rose significantly because the operating expenses, non-op investment income, and foreign exchange positions were well under check.

2. For the traditional high season of 3Q, revenue and earnings are expected to return to peak season levels. T3EX Global Holdings aims to develop sea and air freight LCL businesses in 3Q, with Asia being the major market, so as to complete the ASEAN plus-three network to expand cross-border logistics services. The company will also seize business opportunities in the Internet of Things and logistics through M&A and forming strategic alliances with warehousing and transportation companies in China.

B. Listing application of Shanghai Yaohwa International Forwarder, T3EX Global Holdings' major subsidiary in China, on the National SME Share Transfer System

1. T3EX Global Holdings plans to apply for listing on China's National SME Share Transfer System via Shanghai Yaohwa International Forwarder, its major subsidiary. As currently China's capital market highly favours the logistics sector, such listing will enhance the company's financing capability and drive rapid growth. Meanwhile, easy share transfer and attracting strategic investment partners will support the company's potential logistics activities in China, such as investment and M&A.

2. Once listed on the National SME Share Transfer System, Shanghai Yaohwa International Forwarder will continue to strengthen growth momentum in its core business - domestic logistics. In addition, it will seize suitable M&A opportunities, initiate the development and integration of B2B and B2C businesses, and consolidate multiple services, including supply chain management, customs clearance, e-commerce logistics, and express delivery.

3. After operational expansion, Shanghai Yaohwa International Forwardermay will consider transferring to the A-share market, in hopes of broadening market coverage from east China to south and central China, and further establishing service sites in north and west China to completing the deployment of logistics network in the greater China region. The integration of three services: warehousing and delivery centre, major logistics route planning, and end-customer delivery will also benefit from the A-share float.

4. The application will begin immediately following the Board's approval, with the listing estimated to be official in 1H 2016.

C. Stock purchase deal with Shanghai COD

1. In response to the rise of global e-commerce, T3EX Global Holdings plans to step into e-commerce logistics via M&A to build an integrated service model comprising e-commerce, warehousing, and delivery. According to the stock purchase agreement, T3EX Global Holdings will inject a total of 30 million RMB in multiple stages to gain 60% shareholdings in Shanghai COD's logistics-focused subsidiary.

2. This partnership with COD is anticipated to exert two synergistic effects. First, as T3EX Global Holdings so far lacks last-mile express delivery sites to meet future logistics demand in B2B, B2C, and O2O, Shanghai COD can fill this gap, allowing T3EX Global Holdings to provide more comprehensive logistics services and enhance company competitiveness. Second, Shanghai COD's core clientele consists of mainstream e-commerce players and brand vendors, which can offer B2C customer relationships and operation bases that T3EX Global Holdings needs.

3. COD, founded in 2006, primarily serves clients in e-commerce, TV shopping, financing, and communication industries. It provides extensive warehousing and delivery solutions, helping to straighten up cargo, capital, and information flows for business customers. COD's market radiates from the over 100 service sites in greater Shanghai and Jiangsu province into east and central China. Currently its products are mostly common home-delivery products while some new products may come online in the future, including:

(1) fresh food home delivery

(2) 24 hour delivery

(3) night delivery

(4) remote delivery

4. COD mainly offers customised logistics services, with its major customers including:

(1) China's top 50 e-commerce websites, such as Tmall, Vipshop, Yihaodian, and Womai;

(2) brand vendors, such asBenesse and Winshare, in which it assists with inventory management and delivery;

(3) large enterprises, such as China Telecom, Chine Mobile, and China Comservice, its major logistics suppliers;

(4) TV shopping channels, such as Jiayou Home Shopping and Global Home Shopping.

Press Release Contact Window

Ms. Echo Wan, Vice President
Direct Line: +886 2 2753 2093 ext.107
+886 2 2742 3165
Mobile Phone: + 886 927 536 179
E-mail：echowan@thi-group.com

Ms. Linda Hsu, Assistant Manager
Direct Line: +886 2 2753 2093 ext. 193
Mobile Phone: + 886 980 909 388
E-mail: lindahsu@thi-group.com