Symax Lift (Holding) Co., Ltd.: 2011 Third Quarter Financial Results
November 21 2011 - 9:20AM
Marketwired
Symax Lift Holding Co. Ltd. ("Symax" or the "Company") (TSX
VENTURE:SYL), a developer, manufacturer and servicer of elevators
and escalators globally with a manufacturing base in China, today
reported its interim financial results for the quarter and nine
months ended September 30, 2011.
Sales increased by 74% to $9,174,000 and by 65% to $22,202,000
in the quarter and nine months ended September 30, 2011,
respectively, compared to same periods of 2010. The increase was
primarily driven by the continued benefits of a standardized
elevator model which is specially suited to Chinese government
funded housing development projects and Chinese Tier 2 and 3 city
development projects, as well as sales increases from overseas
markets and elevator components. This growth in sales illustrates
the continuing opportunities in government sponsored housing
development projects in China and Chinese Tier 2 and 3 city
development projects.
Gross profit increased by 31% to $1,928,000 and by 40% to
$4,987,000 in the quarter and nine months ended September 30, 2011,
respectively, compared to same periods of 2010. The measure of this
increase results from the combination of the significant sales
increase and slight gross margin decrease.
Selling, general and administrative expenses decreased by 16% to
$1,071,000 and increased by 12% to $3,379,000 in the quarter and
nine months ended September 30, 2011, respectively, compared to
corresponding periods in 2010. These expenses significantly
decreased as a percentage of sales to 12% from 24% in the third
quarter and to 15% from 22% in the first nine months in 2010.The
decrease in the third quarter of 2011 was mainly due to less
expenditure spent on advertising, while in the same period in 2010,
the company spent more on advertising and promotion in connection
with the Company's re-branding efforts. The principal components of
the increases for the nine months ended September 30, 2011 are
increases in personnel expenses due to additional employees being
hired specializing in marketing, customer relationship, elevator
installation site investigation and elevator testing and more
bonuses being paid to salesmen in connection with sales
increases.
Net income was $603,000 and $1,035,000 for the quarter and nine
months ended September 30, 2011, compared to net income $95,000 and
$217,000 in the same periods of 2010, an improvement of 535% and
377% due to the aforementioned factors.
Cashflow from operations saw an outflow of funds of $740,000 in
the nine months ended September 30, 2011, compared to an outflow of
$43,000 in the same period in 2010. This increase was primarily as
a result of the increase in accounts receivable and decrease in
accounts payable partially offset by inventories decrease and net
income increase.
"We are excited with our continued year-over-year quarterly
sales growth and significant bottom line improvement," noted
Xiaoyan (Sabrina) Zhang, Chief Executive Officer. "We look forward
to continuing substantial sales increase while containing costs to
deliver improved bottom line results for the fourth quarter of the
year."
About Symax Lift (Holding) Co. Ltd.
Symax is in the business of the development, manufacturing, and
sale of elevators, as well as the provision of after-sales services
in China and worldwide. Symax's products and services are
classified into two separate offerings; a main line of standardized
products which include passenger elevators, goods/freight
elevators, villa elevators, panorama elevators, hospital elevators,
residential and commercial escalators and moving walkways; and
customized elevator products.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Symax Lift (Holding) Co. Ltd. Zu (Michael) Zheng +1
416-238-5001michael.zheng@eternefinance.com Symax Lift (Holding)
Co. Ltd. Meng (Matty) Li +1 604-601-8224meng.li@symax.ca