Symax Lift (Holding) Co. Ltd.

Symax Lift (Holding) Co. Ltd.

April 15, 2010 18:39 ET

Symax Lift (Holding) Co. Ltd. Year End 2009 Financial Results

TORONTO, ONTARIO--(Marketwire - April 15, 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 fourth quarter and 2009 year-end financial results for the period ended December 31, 2009.

For the year ended December 31, 2009, revenues increased to $13.1 million from $10.6 million recorded in 2008 and $10.4 million recorded in 2007. The increase in 2009 was driven by new product sales and increases to after sales service contracts, illustrating the growth opportunities in the elevator market both in China and internationally. The appreciation of the Chinese Renminbi against the Canadian dollar was also a factor in the year-over-year increase.

For 2009, gross margin increased to 36 percent of revenues, up from 23 percent in 2008. The increase in gross margin was a result of continuously reviewing suppliers to identify lower cost materials without compromising quality and reliability, in addition to bringing the assembly and manufacturing of certain components in-house versus third-party purchasing.

Inclusive of $585,000 in non-recurring going public transaction costs, Symax recorded net income of $716,381 or $0.04 per share (basic), up from $415,445 or $0.02 per share in 2008.

On a normalized basis, the Company recorded net income of $1.3 million or $0.07 per share (basic) for the full year ended December 31, 2009.

On a year-over-year basis, cashflow from operations improved to a positive contribution of $1,747,000 in 2009 from a deficit of $2,039,000 in 2008. This was achieved through focused growth and development strategies by the Company.

"The completion of the RTO transaction in December 2009, and the resulting listing on the TSX-V, provides Symax with access to capital with which we intend to utilize in 2010 to successfully accelerate our growth strategy of expanding operations within China and internationally," noted Xiaoyan (Sabrina) Zhang, Chief Executive Officer. "We are pleased with our year-over-year performance and look forward to continuing our revenue and earnings growth profile going 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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