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China Keli Electric Q3 2014 total revenue up 34.9%

Staff writer ▼ | April 3, 2014
China Keli Electric Co., Ltd. announced the financial and operating results for the three and nine months ended January 31, 2014. For the three months ended January 31, 2014 (Q3 2014), total revenue was $4,004,536, an increase of 34.9% over Q3 2013 of $2,967,761.
China Keli Electric
China Keli ElectricChina Keli Electric Co., Ltd. announced the financial and operating results for the three and nine months ended January 31, 2014. For the three months ended January 31, 2014 (Q3 2014), total revenue was $4,004,536, an increase of 34.9% over Q3 2013 of $2,967,761.


Installation service was the key driver of the revenue increase. The Company recorded $1,745,446 in installation service revenue, an increase of 221.7% from $542,528 in Q3 2013. Gross profit in Q3 2014 was $1,166,784, an increase of 8.4% over Q3 2013 of $1,076,413.

The revenue increase was driven by ongoing investment in marketing to develop new customers, as well as the success of our product development. Meanwhile, with share options being fully vested, share-based compensation expense decreased. As a result, operating expenses decreased from $1,447,562 in Q3 2013 to $1,267,734 in Q3 2014. The Company recorded a loss of $322,228 in Q3 2014 compared to loss of $386,691 in Q3 2013.

Q3 is traditionally a slow quarter for Keli because of Chinese New Year and because new budgets are not yet available for expenditure by Keli's common customers.

The loss decreased by 16.7%. Basic and diluted earnings per share were -$0.004. Positive EBITDA was $59,261 in Q3 2014, which is a significant turnaround from a loss of $260,351 in Q3 2013.

After accounting for an unrealized foreign exchange translation gain of $1,202,550, the Company reported total comprehensive income of $880,322 in Q3 2014, compared with total comprehensive loss of $354,364 in Q3 2013. The Company's unrealized foreign exchange income on translation of the Group'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 9 months of FY2014, total revenue was $15,384,941, an increase of 25.4% over $12,272,436 for the equivalent 9 month period in FY2013. The Company recorded a net profit of $149,384 in the first 9 months of FY2014, more than triple the amount of $46,652 in same period in FY2013. For the first 9 months of FY2014 comprehensive net income jumped 396.2% over the same period in FY2013.

As of January 31, 2014, the Company had total cash and cash equivalents of $746,260 compared with $1,186,364 as of April 30, 2013. Accounts receivable were $11,306,235 as at January 31, 2014, an increase of $1,514,371 compared with $9,791,864 as at April 30, 2013. The Company's working capital increased to $8,504,766 as at January 31, 2014 from $8,195,776 as at April 30, 2013.


 

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