|By Marketwired .||
|December 31, 2013 11:26 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/31/13 -- 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.