Symax Lift (Holding) Co., Ltd. Three and Six Months Ended June 30, 2010 Financial Results
August 23 2010 - 7:00AM
Marketwired
Symax Lift Holding Co. Ltd. ("Symax" or the "Company") (TSX
VENTURE: SYL), a China based developer and manufacturer of
elevators and escalators, today reported financial results for the
three and six months ended June 30, 2010.
For the three and six months ended June 30, 2010, sales
increased to $6.7 million and $8.2 million, respectively, from $4.2
million and $5.3 million recorded in the same periods in 2009.
These increases were driven primarily by the continued benefits of
an elevator model which focuses specifically on housing projects
funded by China government for lower income families, and the
recovery of normal seasonal sales trends following the Chinese New
Year period, continuing to illustrate the growth opportunities in
the Chinese elevator market.
For the three and six months ended June 30, 2010, gross margin
decreased to 27 and 28 percent of sales, respectively, from 36
percent in the same periods in 2009. The decreases in gross margin
were a result of a higher proportion of product sold for housing
projects funded by the Chinese government for lower income families
compared to customized product, and greater domestic sales over
international sales in 2010 compared to 2009, which were partially
offset by the contribution of bringing the assembly and
manufacturing of certain components in-house versus third-party
purchasing.
Symax recorded a net income for the three and six months ended
June 30, 2010 of $468,000 and $142,000 ($0.02 and $0.01 per share),
respectively, a slight decrease from $637,000 and $448,000 ($0.03
and $0.02 per share) for the same periods 2009. 2010 net income
includes $246,000 of non-recurring expenditures relating to the
Company's re- branding efforts, including the cost of a global
sales conference held to communicate the Company's expertise to
international sales agents.
Cashflow from operations for the three and six months ended June
30, 2010 required a use of funds of $121,000 and $1,181,000,
respectively, compared to funds provided of $1,280,000 and $584,000
in the same periods in 2009. This was primarily as a result of
increases to restricted cash, accounts receivable, inventories and
prepaid expenses and deposits, partially offset by increases to
accounts payable to service current and future sales
commitments.
"We are very pleased with the substantial increase of sales in
the second quarter of the year over both the first quarter and
previous year's sales, and our net results to date" noted Xiaoyan
(Sabrina) Zhang, Chief Executive Officer. "We look forward to
recognizing further revenue growth period-over-period due to some
significant new contracts being obtained and further execution of
our growth strategies as we move forward."
About Symax Lift (Holding) Co. Ltd.
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.
Contacts: Spinnaker Capital Markets Inc. Ali Mahdavi +1
416-962-3300 ext. 225 am@spinnakercmi.com Symax Lift (Holding) Co.,
Ltd. Ming (Barry) Sheng 604-601-8224 barry.sheng@symax.ca
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