Symax Lift (Holdings) Co. Ltd. Announces Second Quarter 2014 Financial Results

TORONTO, ONTARIO--(Marketwired - Nov. 28, 2014) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending September 30, 2014.

Highlights

• Sales increased to $9.55 million during the third quarter in 2014, representing a 7% increase over $8.91 million in the same quarter of the previous year.

• 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 3and Tier 4 cities as well as smaller Tier 2 cities. In addition, the recent restructuring of Symax's sales team and sales network to cover the whole of China except for Tibet has delivered positive results. However, the increase was lower than expected as some customers requested the delivery on their orders be postponed because projects were being postponed due to lack of funding.

• Gross profit increased to $2.72 million during the third quarter in 2014, representing a 16% increase over $2.35 million in the same quarter of the previous year. Gross margin improved to 28% in this quarter, compared to 26% in the same quarter of the previous year. This resulted from higher selling price, lower purchase prices for product components and product design improvements.

• Operation expenses increased by 32% to $2.38 million during the third quarter in 2014 over the same quarter of previous year. Over 85% of this rise was from increased G&A expense, including increases to R&D on the Company's stairlift products and new elevator models, start-up costs for Symax American, and management personnel cost increases associated with several senior managers being hired in late 2013 and early 2014.

• Net income was $0.16 million ($0.01 per share) during the third quarter in 2014, representing a 32% decrease, compared to $0.23 ($0.01 per share)in the same quarter of the previous year.

• EBITDA was $0.60 million during the third quarter of 2014, representing a decrease of 22% over $0.77 million in the same quarter of the previous year.

SUMMARY FINANCIAL STATEMENTS