China Keli Announces Q3 2014 Results - Quarterly Yr-Over-Yr Revenues Up 34.9%, Nine Month Yr-Over-Yr Revenue up 25.4% and 9 Month Profit Up 220.2%

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 2, 2014) - China Keli Electric Co., Ltd. (TSX VENTURE:ZKL) ("Keli" or the "Company") today announced the financial and operating results for the three and nine months ended January 31, 2014.

For the three months ended January 31, 2014 ("Q3 2014"), total revenue was $4,004,536, an increase of 34.9% over Q3 2013 of $2,967,761. Installation service was the key driver of the revenue increase. The Company recorded $1,745,446 in installation service revenue, an increase of 221.7% from $542,528 in Q3 2013. Gross profit in Q3 2014 was $1,166,784, an increase of 8.4% over Q3 2013 of $1,076,413. The revenue increase was driven by ongoing investment in marketing to develop new customers, as well as the success of our product development. Meanwhile, with share options being fully vested, share-based compensation expense decreased. As a result, operating expenses decreased from $1,447,562 in Q3 2013 to $1,267,734 in Q3 2014. The Company recorded a loss of $322,228 in Q3 2014 compared to loss of $386,691 in Q3 2013. [Note: Q3 is traditionally a slow quarter for Keli because of Chinese New Year, and because new budgets are not yet available for expenditure by Keli's common customers.] The loss decreased by 16.7%. Basic and diluted earnings per share ("EPS") were -$0.004. Positive EBITDA was $59,261 in Q3 2014, which is a significant turnaround from a loss of $260,351 in Q3 2013. After accounting for an unrealized foreign exchange translation gain of $1,202,550, the Company reported total comprehensive income of $880,322 in Q3 2014, compared with total comprehensive loss of $354,364 in Q3 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.

For the 9 months of FY2014, total revenue was $15,384,941, an increase of 25.4% over $12,272,436 for the equivalent 9 month period in FY2013. The Company recorded a net profit of $149,384 in the first 9 months of FY2014, more than triple the amount of $46,652 in same period in FY2013. For the first 9 months of FY2014 comprehensive net income jumped 396.2% over the same period in FY2013.

"We're pleased to see continuing improvement in our financial performance and the overall direction of our business, in spite of a sluggish economy", said Lou Meng Cheong, Keli's CEO, "Q3 is always a slow quarter for business in China, but we improved in all major performance metrics. Our long range strategic plans and our constant attention to operational details combine to fuel Keli's success".

As of January 31, 2014, the Company had total cash and cash equivalents of $746,260 compared with $1,186,364 as of April 30, 2013. Accounts receivable were $11,306,235 as at January 31, 2014, an increase of $1,514,371 compared with $9,791,864 as at April 30, 2013. The Company's working capital increased to $8,504,766 as at January 31, 2014 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 and nine months ended January 31, 2014 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.

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.