Symax Lift (Holding) Co. Ltd.
TSX VENTURE : SYL

Symax Lift (Holding) Co. Ltd.

August 23, 2010 08:00 ET

Symax Lift (Holding) Co., Ltd. Three and Six Months Ended June 30, 2010 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2010) - Symax Lift Holding Co. Ltd. ("Symax" or the "Company") (TSX VENTURE:SYL), a China based developer and manufacturer of elevators and escalators, today reported financial results for the three and six months ended June 30, 2010.

For the three and six months ended June 30, 2010, sales increased to $6.7 million and $8.2 million, respectively, from $4.2 million and $5.3 million recorded in the same periods in 2009. These increases were driven primarily by the continued benefits of an elevator model which focuses specifically on housing projects funded by China government for lower income families, and the recovery of normal seasonal sales trends following the Chinese New Year period, continuing to illustrate the growth opportunities in the Chinese elevator market.

For the three and six months ended June 30, 2010, gross margin decreased to 27 and 28 percent of sales, respectively, from 36 percent in the same periods in 2009. The decreases in gross margin were a result of a higher proportion of product sold for housing projects funded by the Chinese government for lower income families compared to customized product, and greater domestic sales over international sales in 2010 compared to 2009, which were partially offset by the contribution of bringing the assembly and manufacturing of certain components in-house versus third-party purchasing.

Symax recorded a net income for the three and six months ended June 30, 2010 of $468,000 and $142,000 ($0.02 and $0.01 per share), respectively, a slight decrease from $637,000 and $448,000 ($0.03 and $0.02 per share) for the same periods 2009. 2010 net income includes $246,000 of non-recurring expenditures relating to the Company's re- branding efforts, including the cost of a global sales conference held to communicate the Company's expertise to international sales agents.

Cashflow from operations for the three and six months ended June 30, 2010 required a use of funds of $121,000 and $1,181,000, respectively, compared to funds provided of $1,280,000 and $584,000 in the same periods in 2009. This was primarily as a result of increases to restricted cash, accounts receivable, inventories and prepaid expenses and deposits, partially offset by increases to accounts payable to service current and future sales commitments.

"We are very pleased with the substantial increase of sales in the second quarter of the year over both the first quarter and previous year's sales, and our net results to date" noted Xiaoyan (Sabrina) Zhang, Chief Executive Officer. "We look forward to recognizing further revenue growth period-over-period due to some significant new contracts being obtained and further execution of our growth strategies as we move forward."

About Symax Lift (Holding) Co. Ltd.

Symax is in the business of the development, manufacturing, and sale of elevators, as well as the provision of after- sales services in China and worldwide. Symax's products and services are classified into two separate offerings; a main line of standardized products which include passenger elevators, goods/freight elevators, villa elevators, panorama elevators, hospital elevators, residential and commercial escalators and moving walkways; and customized elevator products.

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