Symax Lift (Holdings) Co. Ltd. Announces First Quarter 2014 Financial Results
May 30 2014 - 9:20AM
Marketwired
Symax Lift (Holdings) Co. Ltd. Announces First Quarter 2014
Financial Results
TORONTO, ONTARIO--(Marketwired - May 30, 2014) - Symax Lift
(Holdings) Co. Ltd. (TSX-VENTURE:SYL) ("Symax" or the "Company")
announces its financial results for the three-month period ending
March 31, 2014.
Highlights
- Sales increased to $7.8 million during the first quarter in
2014, representing a 45% increase over the same quarter of the
previous year.
- Sales of the Green Passenger Elevator line increased by 103% to
$4.0 million, sales of the Dingtai Passenger Elevator line
increased by 9% to $2.5 million, and sales of Other elevator &
after-sale service increased by 16% to $1.2 million. The increase
results mainly from 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 smaller Tier 2 cities, as well as the recent
restructuring of the sales team and sales network to cover the
whole of China except for Tibet.
- Gross profit increased to $2.5 million during the first quarter
in 2014, representing a 100% increase over the same quarter of
previous year. Gross margin improved to 32% in this quarter,
compared to 24% in the same quarter of previous year due to higher
pricing and lower purchase price.
- Operation expenses increased by 79% to $2.3 million during the
first quarter in 2014 over the same quarter of previous year. Over
80% of this rise in operation expenses was the result of increased
selling expenses, including advertising & promotion expenses
increase, increases to freight charges and sales staff cost
increase associated with the recent restructuring of the sales team
and sales network. In March 2014, the Company held its Global Sales
Agent Conference which is scheduled to be held every two years,
which also contributed to additional expenses in the quarter.
- Net income was $79,000 ($0.00 per share) during the first
quarter in 2014, compared to a net loss $234,000 ($0.00 per share)
in the same quarter of previous year. EBITDA was $437,000 during
the first quarter of 2014, representing an increase of 208% over
the same quarter of previous year.
- As at March 31, the Company had total cash of $3.6 million and
short term bank loans of $6.4 million.
- Symax has undertaken an expansion of its domestic Chinese
business with a new manufacturing facility located in Wanzhou,
Chongqing which is scheduled to come online in July of 2014. Upon
completion, this facility is expected to double the Company's
production capacity by the end of 2014. The Company is also
introducing a new stairlift product line and is expected to launch
these products in the Chinese domestic market and the North
American market in July of 2014.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian dollars except per share and
percentage data |
Three Months Ended March 31 |
2014 |
2013 |
% Change |
Sales |
7,755 |
5,333 |
45% |
Gross profit |
2,520 |
1,262 |
100% |
Gross margin |
32% |
24% |
|
Operating expenses |
2,283 |
1,276 |
79% |
Operating income |
237 |
(14) |
|
Other income (loss) |
(137) |
(210) |
(35%) |
Income taxes |
(21) |
(10) |
110% |
Net income |
79 |
(234) |
(134%) |
EBITDA |
437 |
142 |
208% |
Earnings per share - basic |
$0.00 |
($0.00) |
|
Earnings per share - diluted |
$0.00 |
($0.00) |
|
|
As at December 31 |
|
|
31-Mar-14 |
31-Dec-13 |
|
Total assets |
49,859 |
49,089 |
|
Current liabilities |
33,914 |
33,309 |
|
Long term liabilities |
4,523 |
4,562 |
|
Shareholders' equity |
11,422 |
11,218 |
|
"Benefiting from successful adjustments to the Company's
marketing and selling strategy, a restructured sales team and sales
network, Symax's sales growth continued in 2014.Sales increased by
45% and Symax made profits in the first quarter 2014, a first for
Q1, a period that is typical slow for our industry in China, in the
Company's history", stated Ms. Sabrina Zhang, CEO of Symax " 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.
For Corporate Information:Michael ZhengSkyone International
Securities CorporationTel: 416.268.6178Email:
michael.zheng@skyoneisec.comMary Ma, CFOTel:
604.277.6678Email:info@symax.ca