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

Symax Lift (Holding) Co. Ltd.

May 30, 2013 16:10 ET

Symax Lift (Holdings) Co. Ltd. Announces First Quarter 2013 Financial Results

TORONTO, ONTARIO--(Marketwired - May 30, 2013) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending March 31, 2013.

Highlights

  • Sales increased to $5.3 million during the first quarter of 2013, representing an 8% increase over the same quarter of previous year.
  • Sales of Dingtai Passenger Elevator decreased to $2.3 million, representing a 15% decrease, during the quarter compared to the same quarter of previous year due to the effects of the real estate development slow-down in Chinese Tier 1 and Tier 2 cities. Despite this, during the quarter, the Company's Green Passenger Elevator product line targeted at the lower rise government sponsored housing projects and tier 3 and 4 city developments increased by 30% to sales of $1,972,000. Sales of Other elevators & after sales services increased by 56% to $1 million due to sales increase in escalators sales in Tier 3 and 4 cities and increased installation fees.
  • Gross profit during the first quarter of 2013 approximated to that of the same quarter of previous year, totaling $1.3 million; gross margin decreased to 24% during the quarter from 26% in the same quarter of previous year due to lower selling prices.
  • Operation expenses decreased by 8% to $1.3 million during the first quarter of 2013 over the same quarter of previous year. The decrease was the result of selling expenses decreasing due to lower advertising and promotion expenses offset by G&A expense increases due to the start-up costs for developing stairlift products.
  • Net loss decreased to $234,000 ($0.00 per share) during the first quarter of 2013, compared to $242,000 ($0.00 per share) in 2012. EBITDA was $142,000 during the quarter, representing an increase of 344% over the same quarter of previous year.
  • As at March 31, the Company had cash of $1 million and short term bank loans of $12 million.

"With the Chinese real estate market strengthening in certain sectors, our Dingtai and Green elevator products continued to grow their market position, especially in government sponsored housing developments and developments in Chinese Tier 3 and 4 city markets. In addition, the development of Symax stairlift products is proceeding as anticipated," stated Ms. Sabrina Zhang, CEO of Symax. "We look forward to realizing higher revenues and tightening our costs to deliver improved bottom line results as we move forward."

SUMMARY FINANCIAL STATEMENTS

in thousands of Canadian dollars except per share and percentage data Three Months Ended March 31
2013 2012 % Change
Sales 5,333 4,922 8%
Gross profit 1,262 1,265 (0% )
Gross margin 24% 26%
Operating expenses 1,276 1,390 (8% )
Operating income (loss) (14 ) (125 ) 89%
Other income (loss) (210 ) (173 )
Income taxes (10 ) 56
Net income (loss) (234 ) (242 ) 3%
EBITDA 142 32 344%
Earnings per share - basic $(0.00 ) $(0.00 )
Earnings per share - diluted $(0.00 ) $(0.00 )
Balance Sheet Highlights As at 3/31/13 As at 12/31/12
Total assets 36,866 35,387
Current liabilities 26,949 25,447
Long term liabilities 518 498
Shareholders' equity 9,419 9,443

Expansion Initiatives

Symax has undertaken an expansion of its domestic Chinese business with a new manufacturing facility located in Wanzhou, Chongqing. Upon completion, this facility is expected to double the Company's production capacity by 2014. The Company has also undertaken an expansion of its service network in support of its geographic expansion.

The Company has introduced a new product line of stairlift products and is expected to launch these products in the Chinese domestic market and the North American market before year end 2013.

About Symax Lift Holdings

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.

This news release contains certain statements that may be deemed "forward looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects,", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.

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