QEX LOGISTICS LIMITED

QEX is a New Zealand based cross border logistics company.

QEX Logistics Limited Ordinary Shares

Security Type: Ordinary Shares

Sector: Property

http://www.qex.co.nz

Recent Announcements

Title Date Type
FY18 Preliminary Unaudited Announcement 31 May 2018, 09:44AM FLLYR
Annual Review and Setting of Key Operating Mile... 24 May 2018, 04:55PM NXTUPDTE
QEX Q4 Business Update 30 Apr 2018, 09:54AM MKTUPDTE
Variance to Key Operating Milestone 23 Apr 2018, 09:40AM NXTUPDTE
QEX Interim Update 05 Mar 2018, 10:40AM NXTUPDTE
> MORE

Research

Title Date
QEX Research Report 06/06/18
QEX Research Report 28/05/18
QEX Research Report 03/05/18
QEX Research Report 23/03/18
Reseach Document 15/02/18
> MORE
Denotes 3rd Party Released announcements
Denotes Material or Prescribed announcements

Price History (30 days)

Quarterly Results Target Financial Year
Key Operating Milestones 1st 2nd 3rd 4th 2019 2020
Sales Turnover Target (NZ$) $28,000,000
Gross Margin % 15%
Monthly Volume of Dairy Products Exported (tonnes) 160
Number of parcels cleared monthly 72,000

NXT Advisor

CM Partners Limited

Upcoming Due Dates

Quarterly Date 30/06/2018
Annual Report Due Date 30/06/2018
Quarter Business Update Due 27/07/2018
Quarterly Date 30/09/2018
Half Year Balance Date 30/09/2018
Quarter Business Update Due 29/10/2018
Half Year Preliminary Due 30/11/2018

Upcoming Meetings

Contact Information

Secretary
Doreen Wu
Address
70 Richard Pearse Drive,
Mangere, Auckland 2022
Phone
+64 09 838 8681

COMPANY ANALYSIS

Overview

QEX is a New Zealand based cross border logistics company that facilitates the storage, supply, packaging, customs clearance and delivery of New Zealand products bought from stores, online and e-commerce sites by individual consumers from China, or through a daigou. QEX's current principal activities are:

- Export of health supplement parcels
- Pick and pack services for health supplement parcels
- Supply, storage, repacking and export of infant formula and dairy products
- Logistics solutions across the whole supply chain
- Customs clearance services in China specialising in cross border parcels (parcels being delivered from New Zealand to individual consumers in China)
- Warehousing and related services in Shanghai's Free Trade Zone (FTZ) in China
- Inventory Management in New Zealand and China
- The company established an Australian subsidiary in October 2017 and will start offering cross border logistic services in 2018 for Australian products being sold into China

Performance

This information was extracted by the full year report released by QEX Limited on 31 May 2018:

The Group's focus in FY18 was the continued growth in revenue through growing existing markets and the development of new market opportunities; and the listing of the Company on the NXT.

QEX was listed on the NXT on 15 February 2018. Since listing, there has been active trading in the Company's shares and QEX now has more than 160 shareholders. The listing has raised the profile of the group and created a number of new business opportunities.

Total revenue for the year increased by 42% to $31.5 million.

Milk powder revenue increased by 49%. This growth was funded by bank borrowings and from the $2.575 million raised through the issue of new equity prior to listing. This additional funding enabled the Group to purchase and sea freight higher volumes of infant formula to Shanghai. As a result, the Group was better placed to meet customer demand with a lower cost landed product, as well as providing protection against shortages in the availability of milk powder. The market for dairy products continues to be very competitive with customers being sensitive to pricing, availability and freshness of the products.

The Group's revenues from logistics and customs clearance remained stable. Reductions in international parcel revenues in New Zealand, due to competitive pricing pressures, were offset by
new logistics revenues from Australian and Chinese customers.

The Group achieved a gross margin of $5.066 million (16.1%), an increase of $1.2 million on FY17. Higher costs as a result of the listing and the business growth resulted in a decrease in net profit before tax to $1.85 million (FY17: $2.59 million). Employee costs have increased by 106%. This is a combination of the increase in employees for the New Zealand operations, as well as the employee costs for Shanghai Ditu which were not part of the group in the last financial year. Also, in January the Group moved into new premises near Auckland Airport providing better facilities for ongoing growth and opportunities for new revenues from warehousing services.

The table below shows how we reconcile reported profit after tax and the underlying EBITDA for the years ended 31 March 2018 and 31 March 2017. The reconciliation adjusts for the costs incurred in FY18 as a result of the decision to list the Company, the cost of the share option scheme which was developed in association with the listing, and in FY17, the gain on acquisition which was a gain that arose on acquisition of the Company's subsidiary, Shanghai Ditu International Freight Forwarder Co., Limited ("Shanghai Ditu").

Disclaimer: This section is provided as general information only. It is not intended as a substitute for legal or professional advice to company directors and officers or investors. NZX Limited disclaims any liability arising from the use of this information.