China Keli Announces Q3 FY2012 Results, and Revenue and Profit Increases for the First Nine Months FY2012 Compared With FY2011 9-Month Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2012) - China Keli Electric Co., Ltd. (TSX VENTURE:ZKL) ("Keli" or the "Company") announced the financial and operating results for the three and nine months ended January 31, 2012.

For the three months ended January 31, 2012 ("Q3 2012"), total revenue was $2,625,393, a decrease of 12.2% over $2,991,162 for Q3 2011, which was mainly due to the long holidays of New Year and Spring Festival in January 2012. With decreased revenue and increased cost of complex switch set, gross profit was 837,046 down 34.5% from $1,277,338 for Q3 2011. Through effective operating expense control measures, loss for Q3 2012 only increased by 1.2% from loss of $596,548 for Q3 2011 to $603,461.

For the first nine months of FY2012, total revenue was $10,735,522, an increase of 6.3% over $10,097,820 for the first nine months of FY2011, with gross profit of $4,160,361 down 7.2% from $4,481,640 for the first nine months of FY2011. The Company carefully managed its operating expenses, which decreased by 10.3% from the first nine months of 2011 ($3,818,163 for the first nine months of FY2012 compared to $4,255,914 for the same period in FY2011). As a result, the Company's net profit was $120,555 for the first nine months of FY2012, compared to a loss of $336,526 for the FY2011 comparable period. Basic and diluted earnings per share ("EPS") were $0.001 compared with loss per share of $0.004 for the first nine months of FY2011. Increased net profit and EPS were due primarily to increased revenues and decreased operating expenses. Excluding stock-based compensation expenses, the Company would have recorded a net profit of $519,723 for the first nine months of FY2012, an increase of 973.2% compared with $48,426 for the same period in FY2011. After accounting for an unrealized foreign exchange translation gain of $1,186,085, the Company reported total comprehensive income of $1,306,640 for the first nine months of 2012, compared with total comprehensive loss of $130,233 for the FY2011 comparable period. 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.

"Although Q3 results were essentially flat, FY2012 is showing a marked improvement over FY2011. Our expectations for the year are on track since we planned for a slow Q3 because of the extended Chinese Spring Festival," said Lou Meng Cheong, Keli's CEO. "For the nine months FY2012, we've seen a major improvement in net profit and EPS which are now in the black, and revenues are meaningfully higher."

As of January 31, 2012, the Company had total cash and cash equivalents of $1,334,608 compared with $1,717,377 as of April 30, 2011. Accounts receivable were $8,518,116 as at January 31, 2012, a decrease of $130,655 compared with $8,648,771 as at April 30, 2011. The Company's working capital was $8,365,152 as at January 31, 2012, down from $8,537,972 as at April 30, 2011.

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, 2012 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.

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.