China Keli Announces FY 2018 Results with Revenue Increase of 2.6% and Loss Expanded to $9,161,089

Vancouver, British Columbia--(Newsfile Corp. - March 12, 2019) - China Keli Electric Co., Ltd. (TSXV: ZKL.H) ("Keli" or the "Company") today announced the financial and operating results for the year ended April 30, 2018.

For the year ended April 30, 2018 ("FY2018"), total revenue was $11,263,486 an increase of 2.6% over FY2017 of $10,977,609, which was attributable to the increase of $832,348 in sales of products and the decrease of $546,471 in installation service. Gross profit in FY2018 was $3,205,606 representing 28.5% of revenue and decreased 10.3% over FY2017 of $3,572,299, which was 32.5% of revenue. Operating expenses were $13,449,017 in FY2018, an increase of $4,232,922 from $9,216,095 in FY2017, mainly caused by the decrease of sales commission and sales related expenses, with the increase of provision for doubtful debt allowance, and the increase in inventory provision. The decreased financing costs of $1,042,470 in FY2018 (FY2017: $1,096,745) due to the decrease in short-term bank loans overcome the increasing short-term bank loan interest rate. As a result, the Company recorded a net loss of $9,161,089 in FY2018, compared with a net loss of $6,269,697 in FY2017. Basic and diluted losses per share ("EPS") were -$0.101 in FY2018, compared with -$0.069 in FY2017. EBITDA was -$8,644,747 in FY2018, compared with -$4,112,024 in FY2017. After accounting for an unrealized foreign exchange translation loss of $446,671 the Company reported a total comprehensive loss of $9,607,760 in FY2018, compared with a total comprehensive loss of $6,320,155 in FY2017. 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, 2018, the Company had total cash and cash equivalents of $170,630 (of which $152,381 was included in Disposal Group held for sale) compared with $737,145 as of April 30, 2017. Accounts receivable was $4,856,000 (which was included in Disposal Group held for sale) as at April 30, 2018, a decrease of 58.0% compared with $11,559,177 as at April 30, 2017. The Company's working capital deficit was increased to -$13,516,940 as at April 30, 2018 from -$14,171,173 as at April 30, 2017, mainly because of continuous loss on operation result and the disposal of operating subsidiaries.

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, 2018 are available on SEDAR at

For further information, please contact:


Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732

For further company information please access our website:

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.

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