China Keli (TSXV: $ZKL) Announces Q3 2017 Results
Quarterly Year-over-Year Revenue & Profit Further Down 45.2% and 35.6%; Nine Months Year-over-Year Revenue & Profit Further Down 34.4% and 46.1%; Gross Margins of Revenue Remain Low and Loss Continuous Recorded
Vancouver, British Columbia - April 3, 2017 (Newsfile Corp.) (Investorideas.com Newswire) China Keli Electric Co., Ltd. (TSXV: ZKL) ("Keli" or the "Company") today announced the financial and operating results for the three and nine months ended January 31, 2017.
For the three months ended January 31, 2017 ("Q3 2017"), total revenue was $2,407,679, a decrease of 45.2% over the three months ended January 31, 2016 ("Q3 2016") of $4,394,110, caused by the decrease both in sales of products and installation services revenue. Gross profit in Q3 2017 was $509,814 representing 21.2% of revenue over Q3 2016 of $756,339, which was 17.2% of revenue. Operating expenses were $1,175,446 in Q3 2017, a decrease from $1,506,939 in Q3 2016, caused mainly by the decrease of commission expenses, renovation expenses and director fee. The decreased financing costs of $252,987 in Q3 2017 ($343,124 in Q3 2016) because of the decrease in interest rate further decreased the total expenses. As a result, the Company recorded a net loss of $824,447 in Q3 2017, compared with a net loss of $1,280,287 in Q3 2016. Basic and diluted earnings per share ("EPS") were -$0.009 in Q3 2017, compared with -$0.014 in Q3 2016. EBITDA was -$316,390 in Q3 2016, a little bit lesser than -$363,453 in Q3 2016. After accounting for an unrealized foreign exchange translation gain (loss) of $197,893, the Company reported total comprehensive loss of $849,699 in Q3 2017, compared with total comprehensive loss of $1,082,394 in Q3 2016. The Company's unrealized foreign exchange income on translation of the Company'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 nine months of FY2017, total revenue was $9,179,942, a decrease of 34.4% over $13,995,250 for the equivalent nine months period in FY2016. The Company recorded a net loss of $2,229,546 in the nine months period of FY2017, compared to a loss of $1,525,622 in same period in FY2016. For the nine months of FY2017 comprehensive net loss increased 175.3% to a loss of $2,217,249 over the same period from a loss of $805,354 in FY2016.
As of January 31, 2017, the Company had total cash and cash equivalents of $921,563 compared with $462,107 as of April 30, 2016. Accounts receivable was $14,789,224 as at January 31, 2017, a decrease of 1.2% compared with $14,962,003 as at April 30, 2016, which is attributed to the achievement on tight monitoring and greater effort on the timely collection. The Company's working capital deficit further increased to negative $10,042,835 as at January 31, 2017 from negative $8,439,892 as at April 30, 2016.
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 nine months ended January 31, 2017 are available on SEDAR at www.sedar.com.
About China Keli Electric Company Ltd.
China Keli Electric Company Ltd. specializes in the manufacturing and installation of electrical components and equipment, including pre-assembled mini substations, electrical controllers, pressurized and vacuumed switchgears and circuit breakers.
For further information, please contact:
CHINA KELI ELECTRIC COMPANY LTD.
Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732
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.
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