China Keli Announces Q2 2014 Results -- Quarterly Year-over-Year Revenues & Profit Up 33.3% & 50.6%, & Six Month Year-over-Ye...
December 31 2013 - 11:26AM
Marketwired
China Keli Announces Q2 2014 Results -- Quarterly Year-over-Year
Revenues and Profit Up 33.3% and 50.6%, and Six Month
Year-over-Year Revenue Up 22.3%
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 31, 2013) -
China Keli Electric Co., Ltd. (TSX-VENTURE:ZKL) ("Keli" or the
"Company") today announced the financial and operating results for
the three and six months ended October 31, 2013.
For the three months ended October 31, 2013 ("Q2 2014"), total
revenue was $6,036,214, an increase of 33.3% over Q2 2013 of
$4,527,803. Product sales were the key driver of the revenue
increase, but the installation service business continues to grow
also. The Company recorded $4,621,420 product sales revenue, an
increase of 43.7% from 3,216,377 in Q2 2013. The installation
service revenue increased 7.9% to $1,414,794 from Q2 2013 of
$1,311,426. Gross profit in Q2 2014 was $1,919,581, an increase of
25.3% over Q2 2013 of $1,532,199. The revenue increase was driven
by ongoing investment in marketing and R&D to develop new
customers and products. This additional investment increased
operating expenses from $1,271,462 in Q2 2013 to $1,504,925 in Q2
2014. As a result, the Company's net profit was $216,640 in Q2 2014
compared to $143,897 in Q2 2013, and increase of 50.6%. Basic and
diluted earnings per share ("EPS") were $0.002. EBITDA was $556,988
in Q2 2014, an increase of 48.6% over $374,860 in Q2 2013. After
accounting for an unrealized foreign exchange translation gain of
$324,585, the Company reported total comprehensive income of
$541,225 in Q2 2014, compared with total comprehensive income of
$421,432 in Q2 2013. The Company's unrealized foreign exchange
income on translation of the Group's functional currency to its
reporting currency is subject to fluctuations in the exchange rate
between the RMB and the Canadian dollar in each reporting
period.
For the 6 months of FY2014, total revenue was $11,380,405, an
increase of 22.3% over $9,304,675 for the equivalent 6 month period
in FY2013. The Company recorded a net profit of $471,612 in the
first 6 months of FY2014, compared to $433,343 in same period in
FY2013. Or the 6 months of FY2014 comprehensive net income jumped
56.6% over the same period in FY2013.
"We're pleased to report continued revenue and profit
improvements in our operations", said Lou Meng Cheong, Keli's CEO,
"Our re-engineering of the business in the last two years is
clearly paying off, and we expect this trend to continue".
As of October 31, 2013, the Company had total cash and cash
equivalents of $1,196,391 compared with $1,186,364 as of April 30,
2013. Accounts receivable were $12,982,763 as at October 31, 2013,
an increase of $3,190,899 compared with $9,791,864 as at April 30,
2013. The Company's working capital increased to $8,380,909 as at
October 31, 2013 from $8,195,776 as at April 30, 2013.
The functional currency of the Company and its subsidiaries is
Chinese Yuan (also known as "Renminbi" or "RMB"). The financial and
operating results of the relevant periods have been translated into
Canadian dollars. Depending on the magnitude of changes in foreign
currency exchange rates, the impact on the financial and operating
results may or may not be material.
Full financial results of the Company for the three and six
months ended October 31, 2013 are available on SEDAR at
www.sedar.com.
About China Keli Electric Company Ltd.
China Keli Electric Company Ltd. specializes in the
manufacturing of electrical components and equipment, including
pre-assembled mini substations, electrical controllers, pressurized
and vacuumed switchgears and circuit breakers.
For further company information please access our website:
www.zkl.cc.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
This press release contains forward-looking statements based
on current expectations. These forward-looking statements entail
various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Risks and uncertainties about Keli's business are more
fully discussed in the Company's disclosure materials filed with
the securities regulatory authorities in Canada. All amounts are
stated in Canadian dollars unless noted otherwise.
China Keli Electric Co. Ltd.Michael RaymontEVP Finance and
Corporate Development(403) 389-3488mraymont@zkl.ccwww.zkl.cc
China Keli Electric Company Ltd. (TSXV:ZKL)
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