Symax Lift (Holdings) Co. Ltd. Announces Second Quarter 2013 Financial Results
August 28 2013 - 4:05PM
Marketwired Canada
Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company")
announces its financial results for the three-month period ending June 30, 2013.
Highlights
-- Sales decreased to $8.1 million in the second quarter of 2013,
representing a 20% decrease compared to the same quarter of the previous
year.
-- During the second quarter, sales of the Dingtai Passenger Elevator
decreased by 26% to $3.3 million, sales of other elevators & after-sale
services decreased by 35% to $1.6 million and sales of Green Passenger
Elevator increased by 1% to $3.3 million.. The overall decrease in sales
was mainly attributable to some customers postponing delivery until the
third and fourth quarter of 2013 because of the tightening of monetary
policy in China for the first half of 2013.
-- Gross profit decreased to $2.2 million in the second quarter of 2013,
representing a 14% decrease over the same quarter of the previous year;
however, gross margin increased to 27% in 2013 from 25% in the same
quarter of the previous year.
-- Operation expenses increased by 9% to $1.6 million in the second quarter
of 2013 over the same quarter of the previous year. The increase was the
result of G&A expenses increasing due to the start-up costs for
developing stairlift products which increase was partially offset by a
decrease in selling expenses due to lower selling commission and freight
expenses.
-- Net income decreased to $304,000 ($0.01 per share) in the second quarter
of 2013, compared to 700,000 ($0.02 per share) in the same quarter in
2012. EBITDA was $728,000 during this quarter, representing a decrease
of 38% over the same quarter of the previous year.
-- As at June 30, the Company had total cash of $2,226,000 and short term
bank loans of $12,505,000.
"Sales in the second quarter were lower than anticipated due to some customers
deferring delivery, nonetheless the deferred orders will be completed in the
second half of 2013. In addition, the development of the 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 Three Months Ended June 30 Six Months Ended June 30
Canadian dollars
except per share
and percentage data
--------------------------------------------------------
2013 2012 % 2013 2012 %
Change Change
--------------------------------------------------------
Sales 8,143 10,117 -20% 13,476 15,039 -10%
Gross profit 2,197 2,545 -14% 3,458 3,811 -9%
Gross margin 27% 25% 26% 25%
Operating expenses 1,617 1479 9% 2,893 2,869 1%
Operating income
(loss) 580 1,066 565 942
Other income (loss) (224) (213) (433) (387)
Income taxes 53 152 62 97
Net income (loss) 303 701 -57% 70 458 -85%
EBITDA 728 1,178 -38% 870 1,210 -28%
Earnings per share -
basic $ 0.01 $ 0.02 $ 0.00 $ 0.01
Earnings per share -
diluted $ 0.01 $ 0.02 $ 0.00 $ 0.01
Balance Sheet
Highlights June 30, 2013 December 31, 2012
Total assets 42,330 35,387
Current liabilities 31,628 25,447
Long term
liabilities 529 498
Shareholders' equity 10,173 9,443
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 commenced in 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. As of June 30, 2013, the Company set up 12 sales
and services centers throughout the whole China.
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; first, 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 second, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
For Corporate Information:
Skyone International Securities Corporation
Michael Zheng
416.268.6178
michael.zheng@skyoneisec.com
Symax Lift Holdings
Mary Ma
CFO
604.601.8224
info@symax.ca