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CORRECTION FROM SOURCE: Symax Lift (Holdings) Co. Ltd. Announces Second Quarter 2014 Financial Results

V.SYL

TORONTO, ONTARIO--(Marketwired - Aug. 29, 2014) -

In the news release published on August 28, the number of Earnings Per Share (Basic) was $6.00, we should read $0.06.

Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending June 30, 2014.

Highlights

  • Sales increased to $15 million during the second quarter in 2014, representing an 85% increase over $8.1million in the same quarter of the previous year. This is the highest quarterly sales in the history of Symax.
  • 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 smaller Tier 2 cities, and the recent restructuring of its sales team and sales network to cover the whole of China except for Tibet.
  • Gross profit increased to $4.7million during the second quarter in 2014, representing a 116% increase over $2.2 million in the same quarter of the previous year. Gross margin improved to 31% in this quarter, compared to 27% in the same quarter of the previous year as a result of higher pricing, lower purchase price and product design improvements.
  • Operation expenses increased by 55% to $2.5 million during the second quarter in 2014 over the same quarter of previous year. 48% of this rise in operation expenses was from increased selling expenses, including increases to freight, commission, VAT surtax associated with sales increase, and sales staff cost increase associated with the recent restructuring of the sales team and sales network and the remaining 52% was from increased G&A expenses, including increases to R&D expenditure on stairlift products, travelling expenses associated with the setup of Symax American and management personnel cost increases associated with a couple of senior managers being hired in late 2013 and early 2014.
  • Net income increased to $1.7 million ($0.06 per share) during the second quarter in 2014, representing a 460% increase, compared to $0.3 million ($0.01 per share) in the same quarter of the previous year.
  • EBITDA increased to $2.4 million during the second quarter of 2014, representing an increase of 236% over $0.7 million in the same quarter of the previous year.

SUMMARY FINANCIAL STATEMENTS

in thousands of Canadian dollars Three Months Ended June 30
except per share and percentage data 2014 2013 % Change
Sales 15,042 8,143 85%
Gross profit 4,736 2,197 116%
Gross margin 31% 27%  
Operating expenses 2,506 1,617 55%
Operating income 2,230 580 284%
Other income (loss) (124) (224) (45%)
Income taxes 404 53 662%
Net income 1,702 303 462%
EBITDA 2,448 729 236%
Earnings per share - basic $0.06 $0.00  
Earnings per share - diluted $0.06 $0.00  
       
  30-Jun-14 31-Dec-13  
Total assets 56,449 49,089  
Current liabilities 37,904 33,309  
Long term liabilities 5,908 4,562  
Shareholders' equity 12,637 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 85% in the second quarter, the highest quarterly sales and net income in the history of Symax," 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.

Michael Zheng
Skyone International Securities Corporation
Tel: 416.268.6178
Email: michael.zheng@skyoneisec.com

Mary Ma, CFO
Tel: 604.277.6678
Email: info@symax.ca


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