Symax Lift (Holdings) Co. Ltd. Announces Financial Results of Fiscal Year 2012
April 29 2013 - 7:10PM
Marketwired Canada
Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company")
announces its financial results for the three-month period and fiscal year
ending December 31, 2012.
Highlights
-- Sales decreased to $26.6 million during 2012, representing a 7% decrease
over the previous year.
-- Sales of Dingtai Passenger Elevator as well as certain other elevator
productss & after-sale services decreased by 34% to $18.8 million during
2012, due to the negative effects of the real estate development slow-
down in the Chinese Tier 1 and 2 cities. However, the Company's new
Green Passenger Elevator product line targeted at the lower rise
government sponsored housing projects and tier 3 and 4 city developments
successfully achieved $7.8 million sales in 2012 with gross margins of
29%.
-- Gross profit increased to $7.0 million during 2012, representing a 7%
increase over the previous year. Due to the increased volume of higher
gross margin export sales and raw material purchase price decreases,
gross margin increased to 26% in 2012 from 23% in the previous year.
-- Operating expenses increased by 29% to $6.1 million during 2012 over the
previous year. Just over half of this rise in operating expenses was the
result of increased selling expenses due to higher advertising and
promotion expenses and higher sales commissions paid on high gross
margin products. The balance of the increase in operation expenses arose
from higher G&A expense as a result of the start-up costs for
introducing starilift products and Symax Chongqing.
-- Net income decreased to $77,000 ($0.00 per share) during 2012, compared
to $1.0 million ($0.03 per share) in 2011. EBITDA was $1.5million during
2012, representing adecrease of 37% over the previous year.
-- As at December 31, 2012, the Company had total cash of $1.3 million and
short term bank loans of $9.5 million.
-- Symax has undertaken an expansion of its domestic Chinese business with
a new manufacturing facility located in Wanzhou. Construction began in
June of 2012. Upon completion, this facility is expected to double the
Company's production capacity by 2014. The Company has also undertaken
an expansion of its service network in support of its geographic
expansion. The Company has introduced a new product line of stairlift
products and is expected to launch these products in the Chinese
domestic market and the North American market in the third quarter of
2013.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian
dollars except per share and Twelve Months
percentage data Ended December 31
2012 2011 % Change
---------------------------------------------
Sales 26,593 28,606 (7%)
Gross profit 6,979 6,526 7%
Gross margin 26% 23%
Operating expenses 6,078 4,711 29%
Operating income 901 1,754 (49%)
Other income (loss) (708) (457) 55%
Income taxes (116) (296) (61%)
Net income 77 1,001 (92%)
EBITDA 1,459 2,306 (37%)
Earnings per share - basic $0.00 $0.03
Earnings per share - diluted $0.00 $0.03
As at As at
Balance Sheet Highlights 12/31/2012 12/31/11
Total assets 35,387 33,992
Current liabilities 25,447 23,941
Long term liabilities 498 571
Shareholders' equity 9,443 9,480
"With our Dingati and new Green elevator products, Symax is continuing to grow
its market position in government sponsored housing developments and the
domestic Tier 3 and 4 city markets. In addition, the development of Symax
stairlift products will enable the Company to expand its product lines," stated
Ms. Sabrina Zhang, CEO of Symax. "We look forward to recognizing higher revenues
and tightening our costs to deliver improved bottom line results as we move
forward."
With the launch of the Green product line, the company experienced an increase
in exports in 2012, 13% of total sales compared with 8% in 2011. This higher
level of exports contributed to higher margins during 2012.
Expansion Initiatives
Symax established a wholly-owned subsidiary - Symax Stairlift Co., Ltd. to
develop, manufacture and distribute residential and commercial accessibility
equipment for people with mobility challenges. Symax's stairlift products are
expected to be launched into the American market and Chinese market before year
end 2013.
About Symax Lift Holdings
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.
This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects,", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes
the expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are made. The
Company undertakes no obligation to update these forward looking statements,
except as required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change.
FOR FURTHER INFORMATION PLEASE CONTACT:
Skyone International Securities Corporation
Michael Zheng
Corporate Information
416.268.6178
michael.zheng@skyoneisec.com
Symax Lift (Holdings) Co. Ltd.
Mary Ma
CFO
604.277.6678
info@symax.ca