VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2012) - China Keli Electric Co., Ltd. (TSX VENTURE:ZKL) ("Keli" or the "Company") today announced the financial and operating results for the three months ended July 31, 2012.
For the three months ended July 31, 2012 ("Q1 2013"), total revenue was $4,776,872, an increase of 17.8 over Q1 2012 ($4,054,351). Gross profit in Q1 2013 was $1,680,638, an increase of 2.2% over Q1 2012 ($1,644,802). Although the Company increased its investment in marketing activities in Q1 2013, the Company carefully managed its general and administration expenses, which resulted in a slight increase of operating expense from Q1 2012 ($1,194,949 in Q1 2013 compared to $1,170,220 in Q1 2012). As a result, the Company's net profit was $289,446 in Q1 2013 compared to $380,872 in Q1 2012. Basic and diluted earnings per share ("EPS") were $0.003 compared with $0.004 in Q1 2012. The decreased net profit and EPS were due primarily to increased finance cost. EBITDA was $582,203 in Q1 2013, an increase of 4.0% over Q1 2012 ($559,797). After accounting for an unrealized foreign exchange translation gain of $66,169, the Company reported total comprehensive income of $355,615 in Q1 2013, compared with a total comprehensive income of $604,568 in Q1 2012. 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.
"As we indicated in the last quarter, we expected Keli revenues to increase in spite of a global economic slow-down, and indeed we were able to deliver increased revenue," said Lou Meng Cheong, Keli's CEO. "Gross profit improved slightly, but net profit and EPS decreased modestly primarily because we chose to increase our sales and marketing efforts both to the Grid companies and for our installation services. We believe this small investment will pay-off in better performance in FY2013."
As of July 31, 2012, the Company had total cash and cash equivalents of $2,106,254 compared with $1,486,664 as of April 30, 2012. Accounts receivable were $11,310,286 as at July 31, 2012, an increase of $700,846 compared with $10,609,440 as at April 30, 2012. The Company's working capital was $8,745,436 as at July 31, 2012, an increase from $8,535,065 as at April 30, 2012.
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 months ended July 31, 2012 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.
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.
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.