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

Symax Lift (Holding) Co. Ltd.

April 29, 2011 09:20 ET

Symax Lift (Holding) Co., Ltd. 2010 Fourth Quarter and Year End Financial Results

TORONTO, ONTARIO--(Marketwire - April 29, 2011) - 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 fourth quarter and fiscal year ended December 31, 2010.

Sales for the quarter and fiscal year ended December 31, 2010 increased by 28% and 48% to $5.83 million and $19.31 million, respectively, compared to the same periods in 2009. These increases were primarily driven by the continued benefits of an standardized elevator model which is specially suited to Chinese government funded housing development projects and Chinese Tier 2 and Tier 3 city developments; as well as the growth in after-sales service. This growth in sales illustrates the growing opportunities in the Chinese elevator market as government sponsored housing development projects continue.

Gross margin for the quarter and fiscal year ended December 31, 2010 decreased to 27% and 28% of sales, respectively, from 36% and 34% in the same periods in 2009. These decreases in gross margin were the result of higher proportion of sales relating to Chinese government funded housing development projects and Chinese Tier 2 and Tier 3 city developments compared to customized products and greater domestic sales over international sales in 2010 compared to 2009.

Selling expenses for the quarter and fiscal year ended December 31, 2010 increased by 62% and 121% to $0.75 million and $2.41 million, respectively, compared to the corresponding periods in 2009. These increases were principally attributable to increases in sales personnel expenses and rental costs as the Company expanded its sales force and opened its sales head office in Shanghai, China, and expanded its advertising and promotion programs relative to the Company's re-branding efforts from the old Sanyo Elevator brand to the Symax banner.

Net income for the quarter ended December 31 2010 increased by 190% to $0.2 million compared to the same period in 2009, primarily due to the reduction in general and administrative expense. Net income for the 2010 fiscal year was $0.4 million compared to $0.7 million in 2009 fiscal year, a decrease of 38%, primarily the result of higher sales, lower gross margin and higher selling expenses. 2010 net income included $0.25 million of non-recurring expenditures relating to the Company's re-branding efforts.

Cashflow from operations for the year ended December 31 2010 was negative $1.24 million, compared to $1.75 million in 2009. This was primarily as a result of increases to accounts receivable and inventories partially offset by increases to accounts payable and deferred revenues. A payment of $3.1 million was received in the first quarter of 2011 against the $7.6 million accounts receivable recorded at year end 2010.

"We continue to deliver substantial increases in sales over last year" noted Xiaoyan (Sabrina) Zhang, Chief Executive Officer. "We look forward to recognizing further revenue growth period-over-period and tightening our costs to deliver improved bottom line results 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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