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Enter Symbol
or Name
USA
CA



China Keli Electric Company Ltd
Symbol ZKL
Shares Issued 90,415,223
Close 2016-09-02 C$ 0.05
Market Cap C$ 4,520,761
Recent Sedar Documents

China Keli loses $7.67-million in fiscal 2016

2016-09-28 18:55 ET - News Release

Mr. Philip Lo reports

CHINA KELI ANNOUNCES FY 2016 RESULTS WITH REVENUE DECLINE OF 11.6% AND A LOSS RECORDED OF $7,679,201

China Keli Electric Company Ltd. has released the financial and operating results for the year ended April 30, 2016.

For the year ended April 30, 2016, total revenue was $17,394,467, a decrease of 11.6 per cent over fiscal year 2015 of $19,669,339, which was attributable to the decrease in sales of products and installation revenue. Gross profit in fiscal year 2016 was $3,876,701, representing 22.3 per cent of revenue, and increased 2.8 per cent over fiscal year 2015 of $3,772,247, which was 19.2 per cent of revenue. Operating expenses were $10,532,505 in fiscal year 2016, a decrease of $427,723 from $10,960,228 in fiscal year 2015, mainly caused by the decrease of sales commission and sales-related expenses and a decrease in inventory provision, offset by the increase of provision for doubtful debt allowance and office expenses. The increased financing costs of $1,251,904 in fiscal year 2016 (fiscal year 2015: $1,109,554), due to the increased short-term bank loans, further increased the total expenses. As a result, the company recorded a net loss of $7,679,201 in fiscal year 2016, compared with a net loss of $7,999,688 in fiscal year 2015. Basic and diluted losses per share were (8.5 cents) in fiscal year 2016, compared with (8.8 cents) in fiscal year 2015. Earnings before interest, taxes, depreciation and amortization were ($5,080,707) in fiscal year 2016, compared with ($5,680,238) in fiscal year 2015. After accounting for an unrealized foreign exchange translation gain of $349,796, the company reported a total comprehensive loss of $7,329,405 in fiscal year 2016, compared with a total comprehensive loss of $$6,459,560 in fiscal year 2015. 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 renminbi and the Canadian dollar in each reporting period.

As of April 30, 2016, the company had total cash and cash equivalents of $462,107 compared with $405,240 as of April 30, 2015. Accounts receivable were $14,962,003 as at April 30, 2016, a decrease of 13.2 per cent compared with $17,237,759 as at April 30, 2015. The company's working capital deficit further decreased to ($8,439,892) as at April 30, 2016, from ($2,389,539) as at April 30, 2015, mainly because of a further increase in provision for doubtful debt allowance.

The functional currency of the company and its subsidiaries is the Chinese yuan (also known as the renminbi). 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 audited financial results of the company for the fiscal year ended April 30, 2016, are available on SEDAR.

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