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File: News Release - May 22, 2015.docx

CHINA KELI ELECTRIC COMPANY LTD. 
Suite 900, 555 Burrard Street
Vancouver, BC V7X 1MB
NEWS RELEASE
CHINA KELI ELECTRIC COMPANY LTD.
UPDATES ANNOUNCEMENT ABOUT 2014 AUDITED FINANCIAL STATEMENTS AND THE SUBSEQUENT UNAUDITED INTERIM FINANCIAL STATEMENTS
Vancouver, British Columbia, May 22, 2015  {‐ ‐}{‐ ‐}{‐ ‐}{‐ ‐}{‐ ‐}  China Keli Electri
--->c Company Ltd. (TSXV: ZKL) ("ZKL" or the "Company"), wishes to provide an update to its news release of September 26, 
--->2014, relating to the completion of its audit for the financial year ended April 30, 2014 and the subsequent Unaudited
---> Interim Financial Statements. 
After the Company filed the 2014 Audited Annual Financial Statements and the MD&A, the Unaudited Interim Financial Sta
--->tements for the three months ended July 31, 2014 and the MD&A on October 6, 2014, the Unaudited Interim Financial Stat
--->ements for the six months ended October 31, 2014 and the MD&A on January 7, 2015 and the Unaudited Interim Financial S
--->tatements for the nine months ended January 31, 2015 and the MD&A on April 16, 2015, there have been several comments 
--->from British Columbia Securities Commission ("BCSC") concerning the details and disclosure in the statements. The Comp
--->any have gone through several rounds of response with the BCSC to clarify the comments and moving forward to prepare f
--->or any restatements necessary.  Until the BCSC is satisfied with all our response to all the comments, and the restate
--->ments to the related financial statements already filed, the Company will continue to be subject to a Cease Trade Orde
--->r.  The Company believes that the remaining concerns of the BCSC will be cleared and restatements to the related Finan
--->cial Statements will be completed and be filed soon.  The Board has been assured by management that they are providing
---> full cooperation in an effort to undertake all steps necessary to respond to the comments from BCSC and prepare for t
--->he amendment and restatement of the previously filed financial statements.  It is the goal and expectation of the Boar
--->d that the audit for the fiscal year ended April 30, 2015 will also be completed in due course.
According to BCSC comments, the significant items proposed to be revised or amended in the aforementioned financial st
--->atements and MD&A's are as below:
In 2014 Audited Annual Financial Statements filed on October 6, 2014, the excess payment to the Agents as at April 30,
---> 2013 with amount of RMB 5,143,400/$840,432 was restated as amount due to related parties. As the documents received i
--->ndicate the actual fund transfers from Agents to the Shareholders were made after April 30, 2013, the fund to be trans
--->ferred in FY2014 should be recorded as Advance to agents for purpose of payments to shareholders, instead of amount du
--->e to related parties.
The holdback from installation service which is 5% of the total contract amount was originally recognized as installat
--->ion service revenue when the project was completed. The holdback is the quality guarantee held by the customer and wil
--->l be paid back to the Company after 1.5 to 2 years quality guarantee period. According to IAS8 Revenue, the holdback s
--->hould be deferred and recognized as revenue over the period during which the company is responsible for quality proble
--->ms, ie. 1.5 to 2 years.
Clarification on the revenue recognition accounting policies and the cash collection terms.
Reclassify the accounts receivable balances greater than one year as non-current assets
Revision and more detailed aging analysis on accounts receivable.
More detailed disclosure on sales and marketing expenses and general and administrative expenses in 2014 Audited Annua
--->l Financial Statements and MD&A.
Revision and amendment on the disclosure of long-term receivables, loans and prepayments and related party transaction
--->s.
This update does not mean that the Company has completed all its work related to the comments from BCSC, nor can it pr
--->ovide any assurance on the timing or the likelihood of the resumption of trade. The Company will provide further updat
--->es as information becomes available and matters are clarified. 
About China Keli Electric Company Ltd. 
China Keli Electric Company Ltd. specializes in the manufacturing of electrical components and equipment, including pr
--->e{‐ ‐}assembled mini substations, electrical controllers, pressurized and vacuumed switchgears and circuit break
--->ers.  

For further information, please contact:  
CHINA KELI ELECTRIC COMPANY LTD.  
Philip Lo, Corporate Secretary
Tel. No.: (604) 893{‐ ‐}7007
Email: philip@zkl.cc 
For further company information please access our website: www.zkl.cc
Neither the TSX Venture Exchange nor its Regulation service provider (as that term is defined in the policies of the T
--->SX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward{‐ ‐}Looking Information: 
Certain statements in this press release may constitute "forward{‐ ‐}looking" statements which involve known and
---> unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CW7
--->575300.1 the Company to be materially different from any future results, performance or achievements expressed or impl
--->ied by such forward{‐ ‐}looking statements. When used in this press release, such statements may use such words 
--->as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's cur
--->rent expectations regarding future events and operating performance and speak only as of the date of this press releas
--->e. Forward{‐ ‐}looking information in this press release includes, but is not limited to, management's expectati
--->on of full cooperation, management's expectation that the audit will be completed in due course, management's intentio
--->n to provide further updates as soon as information is available. Forward{‐ ‐}looking information involves known
---> and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from 
--->those anticipated in such forward{‐ ‐}looking information. The Company believes the expectations reflected in th
--->e forward{‐ ‐}looking information are reasonable but no assurance can be given that these expectations will prov
--->e to be correct and readers are cautioned not to place undue reliance on forward{‐ ‐}looking information contain
--->ed in this press release. Some of the risks and other factors which could cause results to differ materially from thos
--->e expressed in the forward{‐ ‐}looking information contained in this press release include, but are not limited 
--->to, international, national and local business and economic conditions; political or economic instability in the Compa
--->ny's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoi
--->ng list of factors is not exhaustive. Please see the Company's annual MD&A filed on October 6, 2014 on www.sedar.com, 
--->for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise
---> any forward{‐ ‐}looking information, whether a result of new information, future results or otherwise, except a
--->s required by law.