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T3EX Global Holdings Corp.

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EQS-News News vom 13.11.2015

T3EX Global Holdings Signed the Stock Purchase Agreement to Acquire 60% Shares of T3 Global Logistics


(EQS-News / 13/11/2015 / 16:52 UTC+8)

Dear media friends,

The material information approved by our board of directors was listed below. For further information, please do not hesitate to contact me.

A. Financial results in Q1-Q3, 2015

Expressed in thousands of New Taiwan Dollars

  1Q-3Q
2015
1Q-3Q
2014
YoY
Revenue 7,406,903 7,011,855 5.63%
Gross Profit 1,410,791 1,213,837 16.23%
Gross Margin 19.05% 17.31% 1.74%
Operating income 259,987 181,686 43.10%
Profit before tax 309,377 224,639 37.72%
Profit after tax 236,021 179,287 31.64%
EPS(Dollars) 2.16 1.88 14.89%
 

1. Despite a mild revenue gain of 5.6% in the first three quarters, T3EX Global Holdings reported Q1-Q3 gross margin of 19.05%, up from 17.3% last year, and Q3 gross margin of over 20%. The company also announced significant increases in Q1-Q3 net profit and EPS thanks to operating expenses and foreign exchange position, which were kept well under check. The key business growth drivers are:

(1) comprehensive logistics services development:

T3EX provides one-stop-shop services from international shipping, domestic trade warehousing, freight transportation, supply chain management, to e-commerce logistics. It has turned "logistics" from a factor for cost management to a creator for value-added services to help enterprises integrate all internal and external resources to reduce costs, enhance efficiency, and increase market share.

(2) client portfolio adjustment:

T3EX used to mainly target export-oriented SMEs in Asia but shifted focus to MNEs in recent years after increasing its product portfolio and service locations. Meanwhile, it also increased the weightings of logisitcs services for import and domestic trade businesses in China to reduce impact from falling exports. In addition, the company has gained more bargaining power due to freight growth driven by economies of scale. For example, T3EX's Q1-Q3 sea and air freight shipments rose 3% and 12%, respectively, regardless of Asian market's sluggish exports.

2. Q4 is the traditional high season for domestic trade logistics business in China. T.H.I.Group(Shanghai) Ltd. a major international logistics services provider for Alibaba's "Singles Day" sales, will soon acquire Shanghai Exer Logistics Co.,Ltd, a key logistics services provider for Alibaba's TMALL.com. This acqusition is expected to increase the growth momentum of the company's domestic trade logistics business. Furthermore, given possible urgent orders for air freight exports on Chrismas demand from Europe and the U.S. by the end of the year, T3EX's Q415 profit is projected to maintain at a certain level and even surpass that in Q414.

B. Stock purchase deal with New Concept Investments Limited to acquire 60% shares of T3 Global Logistics


(David Yen, Chairman of T3EX group together with Peter Liu, General Manager of T3 Global Logistics, held the contract signing ceremony in Shanghai on 2015/11/10)

1. To develop the freight transportation, distribution, and warehousing, businesses and also establish a comprehensive supply chain services platform in China, T3EX reached an agreement with New Concept Investments Limited (hereinfater called the "New Concept") to acquire 60% shares of T3 Global Logistics, an indirect investment of New Concep, with nearly RMB60 millon. The contract signing ceremony was held in Shanghai on 2015/11/10.

2. T3 Global Logistics has logistics serviced contracts on warehousing and distribution in China with large MNEs (e.g. Global 500: Henkel and Invista). Partnering with well-known logistics giants (e.g. Global Logistic Properties, Goodman Logistics, and Prologis), the company has a total logistics warehousing area of nearly 70,000 sqare meters. Meanwhile, T3 Global Logistics delivers freight by highway to factories, convenience stores, supermarkets, and shopping malls located in nearly 400 tier 1, 2, 3 cities in China.

3. T3 Global Logistics provides sophisticated warehousing and distribution services and enjoys a product gross margin up to 30%. It will be acquired and merged into T3EX next year and is expected to immediately make contributions to T3EX's revenue and profit. In addition, both sides will launch a project to further integrate their businesses in hopes to exert the following two synergistic effects:

(1) reducing costs by integrating both sides' warehousing and transportation resrouces in eastern China to acheive economies of scale and better bargaining power;

(2) enhancing business expansion capability by sharing and developing client resources;

(3) providing multiple value-added services of one-stop shop by opening up the domestic logistics supply chain in China; and

(4) offering resources to support T3EX's domestic trade logistics business undertaking and development in China and providing important resources to develop e-commerce.

4. For the future development in the mailand Chinese market, T3EX will position itself as an integrated logistics services provider and also a comprehensive supply chain services platform. The company will actively develop the transportation, distribution, warehousing, and customs clearance businesses. Additionally, T3EX also aims to build a services platform through mergers and acquisitions as well as strategic alliances. Also, it plans to gradually set up distribution and transit centers in eastern, southern, central, northern, northeastern, southwestern, and northwestern China, based on China's economic development strategy. Besides, the company intends to further establish its highway transport business with a B2B-based integrated warehousing, distribution, and delivery system. In the meantime, T3EX hopes to strengthen its B2C distribution and delivery capability by promoting the e-commerce logistics services and developing the express delivery business with its subsidiary, Shanghai Exer Logistics Co.,Ltd.

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



End of Press Release

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Document: http://n.equitystory.com/c/fncls.ssp?u=VFUPRKKCXM
Document title: T3EX Global Holdings Signed the Stock Purchase Agreement to Acquire 60% Shares of T3 Global Logistics


Key word(s): Investment

13/11/2015 Dissemination of a Press Release, transmitted by EQS TodayIR - a company of EQS Group AG.
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