VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 1, 2013) - China Keli Electric Co., Ltd. (TSX VENTURE:ZKL) ("Keli" or the "Company") today announced the financial and operating results for the three months ended July 31, 2013.
For the three months ended July 31, 2013 ("Q1 2014"), total revenue was $5,344,191, an increase of 11.9% over Q1 2013 ($4,776,872). The installation service business continues to drive the majority of revenue increases. The Company recorded $979,581 installation service revenue, an increase of 223.1% from $303,197 in Q1 2013. Gross profit in Q1 2013 was $1,661,890, a decrease of 1.1% over Q1 2013 ($1,680,638). Although the Company increased its investment in R&D to develop new products in Q1 2014, the Company carefully managed its marketing and sales expenses, which resulted in a slight decrease of operating expense from Q1 2013 ($1,179,863 in Q1 2014 compared to $1,194,949 in Q1 2013). As a result, the Company's net profit was $254,972 in Q1 2014 compared to $289,446 in Q1 2013. Basic and diluted earnings per share ("EPS") were $0.003 compared with $0.003 in Q1 2013. The decreased net profit was primarily due to decreased gross profit and increase finance expense. EBITDA was $622,049 in Q1 2014, an increase of 4.0% over Q1 2013 ($582,203). After accounting for an unrealized foreign exchange translation gain of $420,869, the Company reported total comprehensive income of $675,841 in Q1 2014, compared with total comprehensive income of $355,615 in Q1 2013. The Company's unrealized foreign exchange income on translation of the Group's functional currency to its reporting currency is subject to fluctuations in the exchange rate between the RMB and the Canadian dollar in each reporting period.
"We're pleased to see strong increases in our installation service business," said Lou Meng Cheong, Keli's CEO, "We have successfully adapted to the way in which heavy electrical equipment sales are now made in China; our services are an essential component, and we expect to see progress from new product introductions as well."
As of July 31, 2013, the Company had total cash and cash equivalents of $1,354,351 compared with $1,186,364 as of April 30, 2013. Accounts receivable were $11,577,288 as at July 31, 2013, an increase of $1,785,424 compared with $9,791,864 as at April 30, 2013. The Company's working capital was $8,871,982 as at July 31, 2013, an increase from $8,195,776 as at April 30, 2013.
The functional currency of the Company and its subsidiaries is Chinese Yuan (also known as "Renminbi" or "RMB"). The financial and operating results of the relevant periods have been translated into Canadian dollars. Depending on the magnitude of changes in foreign currency exchange rates, the impact on the financial and operating results may or may not be material.
Full financial results of the Company for the three months ended July 31, 2013 are available on SEDAR at www.sedar.com.
About China Keli Electric Company Ltd.
China Keli Electric Company Ltd. specializes in the manufacturing of electrical components and equipment, including pre-assembled mini substations, electrical controllers, pressurized and vacuumed switchgears and circuit breakers.
For further company information please access our website: www.zkl.cc
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Keli's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars unless noted otherwise.