Symax Lift (Holdings) Co. Ltd. Announces Financial Results of Fiscal Year 2013
April 30 2014 - 6:28PM
Marketwired
Symax Lift (Holdings) Co. Ltd. Announces Financial Results of
Fiscal Year 2013
TORONTO, ONTARIO--(Marketwired - Apr 30, 2014) - 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, 2013.
Highlights
- Sales increased to $32.5 million during 2013, representing a
22% increase over the previous year.
- Sales of the Green Passenger Elevator increased by 86% to $14.5
million, sales of Dingtai Passenger Elevator, decreased by 1% to
$13.5 million, and the sales of other elevators & after-sale
services decreased by 14% to $4.4 million. The increase was mainly
due to the Company's marketing and selling strategy being adjusted
to focus on the increasing demand from Chinese government sponsored
housing projects, developments in Chinese Tier 3, Tier 4 cities and
small Tier 2 cities, and the restructuring of its sales team and
sales network to cover the whole China except for Tibet.
- Gross profit increased to $8.8 million during 2013,
representing a 26% increase over the previous year. Gross margin
slightly improved from 26% in 2012 to 27% in 2013.
- Operation expenses increased by 13% to $6.9 million during 2013
over the previous year. Over 90% of this rise in operation expenses
was the result of increased G&A expenses due to the start-up
costs for developing stairlift products, the construction of new
facilities for Symax Chongqing and bad debt expenses accrued for
doubtful accounts. Share-based compensation expenses also
contributed to this rise.
- Net income increased to $799,000 ($0.03 per share) during 2013,
compared to $77,000 ($0.00 per share) in 2012. EBITDA was $2.6
million during 2013, representing an increase of 81% over the
previous year.
- As at December 31, 2013, the Company had total cash of $1.6
million and short term bank loans of $6.3 million.
- Symax has undertaken an expansion of its domestic Chinese
business with a new manufacturing facility located in Wanzhou,
Chongqing to be put into use in July, 2014. Upon completion, this
facility is expected to double the Company's production capacity by
the end of 2014. The Company has also undertaken an expansion of
its service network in support of its geographic market 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 July, 2014.
SUMMARY FINANCIAL
STATEMENTS
In
Thousands of Canadian Dollars |
Twelve Months Ended December 31 |
|
except per share and percentage data |
2013 |
|
2012 |
|
% Change |
|
Sales |
|
32,458 |
|
|
26,593 |
|
22 |
% |
Gross
profit |
|
8,809 |
|
|
6,979 |
|
26 |
% |
Gross
margin |
|
27 |
% |
|
26 |
% |
|
|
Operating expenses |
|
6,876 |
|
|
6,078 |
|
13 |
% |
Operating income |
|
1,933 |
|
|
901 |
|
115 |
% |
Other
income (loss) |
|
(812 |
) |
|
(708 |
) |
15 |
% |
Income taxes |
|
(322 |
) |
|
(116 |
) |
178 |
% |
Net
income |
|
799 |
|
|
77 |
|
938 |
% |
EBITDA |
|
2,634 |
|
|
1,459 |
|
81 |
% |
Earnings per share - basic |
$ |
0.03 |
|
$ |
0.00 |
|
|
|
Earnings per share - diluted |
$ |
0.03 |
|
$ |
0.00 |
|
|
|
|
|
As at December 31 |
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
Total
Assets |
|
49,089 |
|
|
35,387 |
|
|
|
Current liabilities |
|
33,309 |
|
|
25,447 |
|
|
|
Long
Term liabilities |
|
4,562 |
|
|
498 |
|
|
|
Shareholders' equity |
|
11,218 |
|
|
9,443 |
|
|
|
"With adjustments to the Company's marketing and selling
strategy, restructured sales team and sales network, Symax's sales
in 2013 increased by 22% and the Company expects continuing growth
in 2014. In addition, the Company's stairlift products will be
launched into the North American market in July, 2014 and the Symax
Chongqing plant will be put into operation in July, 2014," stated
Ms. Sabrina Zhang, CEO of Symax. "We look forward to recognizing
higher revenues from these activities and we will continue to focus
on tightening our costs to deliver better bottom line results as we
move forward."
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.
Michael ZhengSkyone International Securities
Corporation416.268.6178michael.zheng@skyoneisec.comMary Ma,
CFO604.277.6678info@symax.ca