VANCOUVER, Nov. 1, 2011 /CNW/ - China Keli Electric Co., Ltd. (TSX-V:
ZKL) ("Keli" or the "Company") announced the financial and operating
results for the three months ended July 31, 2011.
For the three months ended July 31, 2011 ("Q1 2012"), reported total
revenue was $4,054,351, an increase of 11.2% over $3,646,698 for Q1
2011, with gross profit $1,644,802, consistent with $1,645,102 for Q1
2011. The Company incurred operating expenses for Q1 2012 of $1,170,220
($1,360,627 for Q1 2011). The decrease was mainly caused by the decline
in stock-based compensation expense. The Company recognized stock-based
compensation expenses of $93,004 for Q1 2012 ($359,723 for Q1 2011). As
a result, the Company recorded a net profit of $380,872 for Q1 2012, up
517.9% over Q1 2011 (net profit of $61,641 for Q1 2011) and the basic and diluted earnings
per share ("EPS") were $0.004 ($0.001 for Q1 2011). Increased net
profit and EPS were due primarily to the increase of revenue and the
decrease of operating expenses. Excluding stock-based compensation
expenses, the Company would record a net profit of $473,876 for Q1
2012. After accounting for an unrealized foreign exchange translation
gain of $223,696, the Company ended Q1 2012 with a total comprehensive
income of $604,568, compared with a total comprehensive income of
$305,549 for Q1 2011. 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.
"We've had a very good start for fiscal year 2012", said Lou Meng
Cheong, Keli's CEO, "We tightened our belt on the administrative side
of the company and worked hard to deliver improved financial results
for shareholders. In addition, our investment of time, money and energy
in the prior year contributed to stronger financial and operating
results for Q1 2012. We look forward to continuing this positive trend
in our performance, and hope our investors will share our enthusiasm
for our company and our progress".
As of July 31, 2011, the Company had total cash and cash equivalents of
$1,114,637 compared with $1,717,377 as of April 30, 2011. Accounts
receivable were $10,109,734 as at July 31, 2011, an increase of
$1,460,963 compared with $8,648,771 as at April 30, 2011. The Company's
working capital was $8,138,910 as at July 31, 2011, decreased from
$8,537,972 as at April 30, 2011.
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, 2011 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.
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
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.
SOURCE China Keli Electric Company Ltd.
For further information:
CHINA KELI ELECTRIC COMPANY LTD.
Michael Raymont, EVP Finance and Corporate Development
Tel. No.: (403) 389-3488
Scott Koyich, President, Brisco Capital Partners
Tel. No.: (403) 262-9888
For further company information please access our website: www.zkl.cc