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

Symax Lift (Holding) Co. Ltd.

August 28, 2012 09:20 ET

Symax Lift (Holdings) Co. Ltd. Announces Second Quarter 2012 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending June 30, 2012.

Highlights

  • Gross profit increased to $2.5 million during the second quarter of 2012, representing a 14% increase over the same quarter of the previous year; gross margin increased to 25% in 2012 from 23% in the same quarter of the previous year.
  • Sales of the Dingtai Passenger Elevator decreased to $4.4 million, representing a 33% decrease during the quarter, compared to the second quarter of the previous year due to the impact of the real estate development slow-down in Chinese Tier 1 and Tier 2 cities. Despite this, during the second quarter, the Company's new Green Passenger Elevator product line targeted at lower rise government housing developments and tier 3 and 4 city developments continued to grow, this product achieved $3.3 million in sales with 28% gross margin.
  • Sales increased to $10.1 million during the second quarter of 2012, representing a 4% increase over the same quarter of previous year.
  • Net income increased to $0.7 million ($0.02 per share) during the second quarter of 2012, compared to $0.6 million ($0.02 per share) in 2011. EBITDA was $1.2 million during the second quarter of 2012, representing an increase of 20% over the same quarter of previous year.
  • Construction of the manufacturing facility located in Wanzhou commenced in June of 2012. The Company has also undertaken an expansion of its service network in support of its continuing geographic expansion.

"With our Dingati and new Green elevator products, Symax is continuing to grow its market position in government housing developments and the domestic Tier 3 and 4 cities marketplace," stated Ms. Sabrina Zhang, CEO of Symax. "Continued investment in our sales and service network together with the expansion at Wanzhou will enable the Company to continue to expand and service our growing customer base in China."

With the launch of the Green product line, the company experienced an increase in exports during this quarter to 8% of sales compared with 6% in the same period of 2011. This higher level of exports contributed to higher margins during the quarter.

SUMMARY FINANCIAL STATEMENTS

in thousands of Canadian dollars except per share and percentage data Three Months Ended
June 30
Six Months Ended
June 30
2012 2011 % Change 2012 2011 % Change
Sales 10,117 9,773 4% 15,039 13,028 15%
Gross profit 2,545 2,242 14% 3,811 3,058 25%
Gross margin 25% 23% 10% 25% 23% 8%
Operating expenses 1,479 1,389 6% 2,869 2,309 24%
Operating income (loss) 1066 852 25% 941 750 25%
Other income (loss) (213) (111) 92% (387) (186) 108%
Income taxes 152 111 37% 97 132 -27%
Net income (loss) 700 630 11% 458 431 6%
EBITDA 1178 978 20% 1,210 1,002 21%
Earnings per share - basic $0.02 $0.02 $0.01 $0.01
Earnings per share - diluted $0.02 $0.02 $0.01 $0.01
Weighted average number of shares:
Basic 30,656,666 30,656,666 30,656,666 30,656,666
Diluted 30,656,666 30,670,049 30,780,210 30,659,586
Balance Sheet Highlights As at 6/30/12 As at 12/31/11
Total assets 33,853 33,992
Current liabilities 23,382 23,941
Long term liabilities 601 571
Shareholders' equity 9,870 9,480

Symax maintains a strong balance sheet with $4.5 million in cash and total loans of $7.1 million.

Expansion Initiatives

Symax has undertaken an expansion of its domestic Chinese business with a new manufacturing facility located in Wanzhou. The land use rights for this facility have been acquired and construction has commenced since June, 2012. 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.

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.

Contact Information

  • Symax Lift (Holdings) Co. Ltd.
    Mary Ma
    CFO
    604.601.8224
    info@symax.ca