China Keli Announces FY 2017 Results with Revenue Decline of 36.9% and a Loss Recorded of $6,269,697

Vancouver, British Columbia--(Newsfile Corp. - October 29, 2017) - China Keli Electric Co., Ltd. (TSXV: ZKL) ("Keli" or the "Company") today announced the financial and operating results for the year ended April 30, 2017.

For the year ended April 30, 2017 ("FY2017"), total revenue was $10,977,609 a decrease of 36.9% over FY2016 of $17,394,467, which was attributable to the decrease in sales of products and installation service. Gross profit in FY2017 was $3,572,299 representing 32.5% of revenue and decreased 7.9% over FY2016 of $3,876,701, which was 22.3% of revenue. Operating expenses were $9,216,095 in FY2017, a decrease of $1,316,410 from $10,532,505 in FY2016, mainly caused by the decrease of sales commission and sales related expenses, the decrease of provision for doubtful debt allowance, and the decrease in inventory provision. The decreased financing costs of $1,096,745 in FY2017 (FY2016: $1,251,904) due to the repayment of long-term bank loans with higher interest rate than the renewed short-term bank loans. As a result, the Company recorded a net loss of $6,269,697 in FY2017, compared with a net loss of $7,679,201 in FY2016. Basic and diluted losses per share ("EPS") were -$0.069 in FY2017, compared with -$0.085 in FY2016. EBITDA was -$6,269,697 in FY2017, compared with -$5,080,707 in FY2016. After accounting for an unrealized foreign exchange translation loss of $50,458 the Company reported a total comprehensive loss of $6,320,155 in FY2017, compared with a total comprehensive loss of $7,329,405 in FY2016. The Company's unrealized foreign exchange loss 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.

As of April 30, 2017, the Company had total cash and cash equivalents of $737,145 compared with $462,107 as of April 30, 2016. Accounts receivable was $11,559,177 as at April 30, 2017, a decrease of 22.7% compared with $14,962,003 as at April 30, 2016. The Company's working capital deficit further decreased to -$14,171,173 as at April 30, 2017 from -$8,439,892 as at April 30, 2016, mainly because of continuous loss on operation result.

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 audited financial results of the Company for the fiscal year ended April 30, 2017 are available on SEDAR at www.sedar.com.

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:

CHINA KELI ELECTRIC COMPANY LTD.

Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732
Email: philip@zkl.cc

For further company information please access our website: www.zkl.cc

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.