Grand Perfecta Provides 2015 Third Quarter Update to Stockholders
GRAND PERFECTA , INC. (OTC SEC Reporting: GPIW) is pleased to provide this update for its stockholders on your company's progress and operations. We have recently completed the process of becoming a fully - reporting, public company, which we believe will enhance our profile and reputation, and make current information about the company readily available to our stockholders and the public markets.
Grand Perfecta is one of the largest horse racing information companies serving the Japanese market. Grand Perfecta Group delivers horse racing information mainly through its branded websites as typified by Umajin.net, a comprehensive source of information related to horse racing. The group shares its content with over 1.2 million users, and has a steady user base of paid customers who rely on its content for information on races and tracks throughout Japan and in Hong Kong. Japan is currently the largest market for horse race wagering globally, with wagers exceeding $28 billion annually generated by over 8 million racing fans.
Our unaudited net sales for the three months ended April 30, 2015 were $4.3 million, down approximately $576,000 from the comparable period in 2014. For the nine months ended April 30, 2015, our unaudited net sales were $13.8 million, versus revenues of $16.7 million for the comparable period in 2014. These declines are due mainly to the stronger US dollar to the Japanese yen, and an increase in the consumption tax rate from 5% to 8% starting in April 2014.
We have been very focused on utilizing our excess free cash flow to pay down debt, so our current portion of notes payable decreased from $8.3 million at July 31, 2014, to $3.2 million at April 30, 2015, and total liabilities decreased from $13.8 million at July 31, 2014, to $11.1 million at April 30, 2015. Not only will this allow us to bring more net income to the Company, but it also allows us to re - allocate some of our cash flows towards new growth initiatives and other strategic expenditures which we hope will lead to the increase of shareholder value.
While we are seeking opportunities to make acquisitions in the space, and we are also focused on finding an opportunity to enter the fantasy sports sector, which is a large and growing Internet user market. Our 30+ year track record in the horse racing sec tor in Japan leaves us ideally suited to enter this market.
We will continue to update our shareholders on the Company's activities as they develop. Management is appreciative of your continued support.
Chairman & Chief Executive Officer
About Grand Perfecta, Inc.
Grand Perfecta, Inc., ("GPIW") a Nevada corporation, is engaged in the business of publishing and disseminating horse racing information and other content related to horse racing in Japan and the Japanese horse racing industry through various types of media, including numerous websites and printed materials . Horse racing in Japan is a popular equestrian sport with approximately 16,000 horse races held each year, which are predominately flat and jump races. Horse racing is organized and managed by the Japan Racing Association (JRA) and National Association of Racing (NAR), both of which are subject to the supervision of the Ministry of Agriculture, Forestry and Fisheries. This system of government supervision and administration of horse racing is unique to Japan and, we believe, one of the main reasons horse racing in Japan is considered by many the best in the world.
Safe Harbor for Forward-looking Statements
This news release may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.
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Released July 3, 2015