MRO Magazine

Symax Lift (Holdings) Co. Ltd. Announces Financial Results of Fiscal Year 2014


April 30, 2015
By Marketwired News

TORONTO, ONTARIO–(Marketwired – April 30, 2015) – 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, 2014.

Highlights

  • Sales increased to $39.67 million during 2014, representing a 22% increase over the previous year as the Company’s Green Passenger Elevator and Dingtai Passenger Elevator were well positioned in the Tier 3, Tier 4 markets and smaller city markets across China; however, sales in the fourth quarter of 2014 were 27% lower than the same quarter of 2013. Some customers of the Company requested that their deliveries which were scheduled for the second half of 2014 be deferred because their projects were postponed due to lack of funding.
  • Gross profit increased to $12.38 million during 2014, representing a 41% increase over the previous year. Gross margin improved to 31% from 27% in 2013, as a result of higher priced orders being delivered, combined with the impact of lower component purchase prices and product design efficiencies.
  • Operation expenses increased by 52% to 10.39 million during 2014 over the previous year. 53% of this rise was the result of increased G&A expense due to expenditures related to i) start up costs for the stairlift business, ii) preparation of the Symax Chongqing manufacturing facility, iii) increased personnel expenses, and iv) increased depreciation associated with property and equipment addition; 47% of this increase was due to rising selling expenses resulting from increased advertising and promotion expenditures and increased sales staff expenses along with higher rental expenses associated with the increased number of Sales and Service centers.
  • Net income decreased to $236,000 ($0.01 per share) during 2014, compared to $799,000 ($0.03 per share) in 2013. EBITDA was $2.91 million during 2014, representing an increase of 10% over the previous year.
  • As at December 31, 2014, the Company had total cash of $1.28 million and short term bank loans of $16.18 million.
  • The construction of Symax Chongqing plant was completed and its production lines are ready for production, and will produce products in May, 2015. The Company’s Stairlift products are still in the process of obtaining ETL certification, which allows the Company to sell its stairlift products in the North American market.

SUMMARY FINANCIAL STATEMENTS

in thousands of Canadian dollarsTwelve Months Ended December 31
except per share and percentage data2014 2,013 % Change
Sales39,669 32,458 22%
Gross profit12,380 8,809 41%
Gross margin31% 27%  
Operating expenses10,393 6,876 51%
Operating income1,987 1,933 3%
Other income (loss)(867)(812)7%
Income taxes(884)(322)175%
Net income236 799 -70%
EBITDA2,908 2,634 10%
Earnings per share – basic & diluted$0.01 $0.03  
 As at December 31  
 2014 2013  
Total assets56,821 49,089  
Current liabilities40,836 33,309  
Long term liabilities3,748 4,562  
Shareholders’ equity12,238 11,218  

“Symax’s sales in 2014 increased by 22%, however this was lower than Management’s expectation as a result of the fourth quarter sales decline resulting from the real estate industry’s slowdown which commenced in the third quarter,” stated Ms. Sabrina Zhang, CEO of Symax. “We expect that the real estate slowdown will continue into 2016, and our objective will be to try to maintain sales levels and take actions to reduce costs 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 Zheng
Skyone International Securities Corporation
416.268.6178
michael.zheng@skyoneisec.com

Symax Lift (Holdings) Co. Ltd.
Mary Ma
CFO
604.277.6678
info@symax.ca