Symax Lift (Holding) Co. Ltd.

Symax Lift (Holding) Co. Ltd.

August 26, 2011 09:20 ET

Symax Lift (Holding) Co., Ltd. 2011 Second Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2011) - Symax Lift Holding Co. Ltd. ("Symax" or the "Company") (TSX VENTURE:SYL), a developer, manufacturer and servicer of elevators and escalators globally with a manufacturing base in China, today reported its interim financial results for the quarter and six months ended June 30, 2011.

Sales increased by 46% to $9,773,000 in the second quarter and by 59% to $13,028,000 in the first half of 2011, compared to same periods of 2010. The increase was primarily driven by the continued benefits of a standardized elevator model which is specially suited to Chinese government funded housing development projects and Chinese Tier 2 and 3 cities as well as sales increases into overseas markets. This growth in sales illustrates the continuing opportunities in government sponsored housing development projects in China.

Gross profit increased by 33% to $2,242,000 in the second quarter and by 47% to $3,058,000 in the first half of 2011, compared to same periods of 2010. The measure of this increase results from the combination of the significant sales increase and slight gross margin decrease.

Selling, general and administrative expenses increased by 23% to $1,389,000 in the second quarter and by 27% to $2,039,000 in the first half of 2010, compared to corresponding periods in 2010, yet significantly decreased as a percentage of sales to 14% from 17% in the second quarter and to 18% from 22% in the first half in 2010.

Net income was $630,000 and $431,000 for the second quarter and first half of 2011, compared to net income $458,000 and $64,000 in the same periods of 2010, which excluded the effect of gain of $58,000 on disposal of a subsidiary recorded in January, 2010, an improvement of 46% and 573% due to the aforementioned factors.

Cashflow from operations was an inflow of funds of $885,000 in the six months ended June 30, 2011, compared to an outflow of $1,181,000 in the same period in 2010. This improvement was primarily as a result of increases in net income and deferred revenue, decreases in accounts receivable and inventories partially offset by decrease to accounts payable.

"We are excited with our record quarterly sales of $9,773,000, the largest quarterly sales in Symax history," noted Xiaoyan (Sabrina) Zhang, Chief Executive Officer. "We look forward to continuing substantial sales increase while containing costs to deliver improved bottom line results for the remainder of the year."

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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