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

Symax Lift (Holding) Co. Ltd.

November 21, 2011 09:20 ET

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

TORONTO, ONTARIO--(Marketwire - Nov. 20, 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 nine months ended September 30, 2011.

Sales increased by 74% to $9,174,000 and by 65% to $22,202,000 in the quarter and nine months ended September 30, 2011, respectively, 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 city development projects, as well as sales increases from overseas markets and elevator components. This growth in sales illustrates the continuing opportunities in government sponsored housing development projects in China and Chinese Tier 2 and 3 city development projects.

Gross profit increased by 31% to $1,928,000 and by 40% to $4,987,000 in the quarter and nine months ended September 30, 2011, respectively, 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 decreased by 16% to $1,071,000 and increased by 12% to $3,379,000 in the quarter and nine months ended September 30, 2011, respectively, compared to corresponding periods in 2010. These expenses significantly decreased as a percentage of sales to 12% from 24% in the third quarter and to 15% from 22% in the first nine months in 2010.The decrease in the third quarter of 2011 was mainly due to less expenditure spent on advertising, while in the same period in 2010, the company spent more on advertising and promotion in connection with the Company's re-branding efforts. The principal components of the increases for the nine months ended September 30, 2011 are increases in personnel expenses due to additional employees being hired specializing in marketing, customer relationship, elevator installation site investigation and elevator testing and more bonuses being paid to salesmen in connection with sales increases.

Net income was $603,000 and $1,035,000 for the quarter and nine months ended September 30, 2011, compared to net income $95,000 and $217,000 in the same periods of 2010, an improvement of 535% and 377% due to the aforementioned factors.

Cashflow from operations saw an outflow of funds of $740,000 in the nine months ended September 30, 2011, compared to an outflow of $43,000 in the same period in 2010. This increase was primarily as a result of the increase in accounts receivable and decrease in accounts payable partially offset by inventories decrease and net income increase.

"We are excited with our continued year-over-year quarterly sales growth and significant bottom line improvement," 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 fourth quarter 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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