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March 2018


China Keli Announces Q3 2018 Results


Quarterly Year-Over-Year Revenue down by 28% with Loss Maintained and Six Months Year-Over-Year Revenue down by 0.6% with Higher Gross Margin and Loss Reduced By 45% Recorded

Vancouver, British Columbia–(Newsfile Corp. – March 31, 2018) – China Keli Electric Co., Ltd. (TSXV: ZKL) (“Keli” or the “Company”) today announced the financial and operating results for the three months and nine months ended January 31, 2018.

For the three months ended January 31, 2018 (“Q3 2018”), total revenue was $1,731,627, a decrease of 28% over the three months ended January 31, 2017 (“Q3 2017”) of $2,407,679, caused by the decrease in revenue from products sales and installation services. Gross profit in Q3 2018 was $350,448 representing 20% of revenue which decreased 31% over Q3 2017 of $509,814, which was 21% of revenue. Operating expenses were $1,059,326 in Q3 2018, a decrease from $1,175,446 in Q3 2017, caused by the decrease of salary and benefits, entertainment, travelling expenses, office expenses, research and development expenses, and the reversal of inventory write-down. With the 4% increase in financing costs of $260,735 in Q3 2018 ($250,663 in Q3 2017), the total expenses remained decreased. Although the total expenses decreased, the Company still recorded a net loss of $830,282 in Q3 2018, compared with a net loss of $824,447 in Q3 2017. The loss resulted from lower gross margin, offset by the effective cost control of operating expenses which are expected to be continued. Basic and diluted loss per share (“EPS”) were -0.009 cents in Q3 2018, compared with -0.009 cents in Q3 2017. EBITDA was negative $322,574 in Q3 2018, a slightly increase from negative $316,390 in Q3 2017. After accounting for an unrealized foreign exchange translation loss of $49,199, the Company reported total comprehensive loss of $879,481 in Q3 2018, compared with total comprehensive loss of $849,699 in Q3 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 nine months of FY2018, total revenue was $9,122,625, a decrease of 0.6% over $9,179,942 for the equivalent nine months period in FY2017. The Company recorded a net loss of $1,224,301 in the first nine months of FY2018, compared to a loss of $2,229,546 in same period in FY2017, a reduction of 45%. This was mainly caused by an increase in gross margin and decrease in operating expenses, especially in the reversal of inventory write-down. For the nine months of FY2018 comprehensive net loss narrowed down to $1,195,496 over the same period $2,217,249, in FY2017.

As of January 31, 2018, the Company had total cash and cash equivalents of $720,387 compared with $737,145 as of April 30, 2017. Accounts receivable was $10,454,347 as at January 31, 2018, a decrease of 9.6% compared with $11,559,177 as at April 30, 2017, which was attributed to the decrease in sales of product revenue during the period. The Company’s working capital deficit remained to be negative $14,451,163 as at January 31, 2018 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 nine months ended January 31, 2018 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

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.