Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

China Keli Announces Q2 2018 Results

Quarterly Year-over-Year Revenue down by 39.9% with Loss Narrow Down and Six Months Year-over-Year Revenue up by 9.1% with Higher Gross Margin and Loss Reduced 72.0% Recorded

Vancouver, British Columbia--(Newsfile Corp. - January 2, 2018) - China Keli Electric Co., Ltd. (TSXV: ZKL) ("Keli" or the "Company") today announced the financial and operating results for the three Months Ended October 31, 2017.

For the three months ended October 31, 2017 ("Q2 2018"), total revenue was $1,901,321, a decrease of 39.9% over Q2 2017 of $3,165,996, caused by the decrease in revenue from products sales. Gross profit in Q2 2018 was $554,135 representing 29.1% of revenue which decreased 28.4% over Q2 2017 of $774,344, which was 24.5% of revenue. Operating expenses were $787,117 in Q2 2018, a decrease from $1,296,091 in Q2 2017, caused by the decrease of salary and benefit, entertainment, travelling expenses, office expenses, research and development expenses, and the reversal of inventory write-down. With the slightly changes in financing costs of $255,887 in Q2 2018 ($251,301 in Q2 2017), the total expenses remained decreased. Although the total expenses decreased, the Company still recorded a narrow downed net loss of $350,273 in Q2 2018, compared with a net loss of $708,685 in Q2 2017. The reduced loss resulted from higher gross margin along with the effective cost control of operating expenses which are expected to be continued. Basic and diluted loss per share ("EPS") were -0.004 cents in Q2 2018, compared with -0.008 cents in Q2 2017. EBITDA was $88,519 in Q2 2018, a turn around increase from negative $186,310 in Q2 2017. After accounting for an unrealized foreign exchange translation loss of $169,527, the Company reported total comprehensive loss of $519,800 in Q2 2018, compared with total comprehensive loss of $370,889 in Q2 2017. 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 six months of FY2018, total revenue was $7,390,998, an increase of 9.1% over $6,772,263 for the equivalent six months period in FY2017. The Company recorded a net loss of $394,019 in the first six months of FY2018, compared to a loss of $1,405,099 in same period in FY2017, reduced 72.0%, was mainly attributed by increase revenue and gross margin, decrease in operating expenses especially in the reversal of inventory write-down. For the six months of FY2018 comprehensive net loss narrow down to $316,015 over the same period $1,367,550 in FY2017.

As of October 31, 2017, the Company had total cash and cash equivalents of $506,515 compared with $737,145 as of April 30, 2017. Accounts receivable was $12,408,926 as at October 31, 2017, an increase of 7.4% compared with $11,559,177 as at April 30, 2017, which was attributed to the increase in sales of product revenue during the period. The Company's working capital deficit improved to negative $13,752,483 as at October 31, 2017 from negative $14,171,173 as at April 30, 2017.

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 six months ended October 31, 2017 are available on SEDAR at

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:


Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732
Email: [email protected]

For further company information please access our website:

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.

This post first appeared on Newsfile Corp News Releases, please read the originial post: here

Share the post

China Keli Announces Q2 2018 Results


Subscribe to Newsfile Corp News Releases

Get updates delivered right to your inbox!

Thank you for your subscription