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I'm Lesley Mapstone for Investmentpitch.com
Symax Lift, which trades on the TSX Venture Exchange under the symbol SYL, has announced
that it has won 9 new contracts, worth approximately $11 million, to supply, install and service
Dingtai and Green elevators in China. The contracts, 5 of which are for government housing
projects, are expected to be completed in the first half of 2014.
This is in addition to the 3 contracts worth approximately $5.5 million that were announced
in September.
These 3 contracts, for domestic housing projects in eastern and southeastern China, are expected
to be completed by the end of March 2014.
Symax, through its subsidiaries, primarily operates in the People's Republic of China,
developing and manufacturing elevators.
Products include the Green Passenger Elevator which is designed for residential building
with 5 to 20 floors, the Dingtai Passenger Elevator designed for both residential and
commercial buildings with 15 to 30 floors.
Other products include freight elevators, villa elevators, escalator, walkway and stairlifts.
Ms. Sabrina Zhang, CEO stated, "This September and October were strong months for Symax.
Amid the concern of saturation of housing markets in the Chinese tier 1 cities, we still
observed continuing growth in our business based on tier 2 and 3 cities, which have led
to consistent demand for elevator products. We are particularly encouraged by the increasing
demand from government housing projects."
For the quarter ended June 30th, the company reported sales of $8.1 million, gross profit
of $2.2 million, and net income of $304,000 or $0.01 (say one cent) per share.
These numbers were down from the same quarter in the previous year because of tightening
of monetary policy in China in the first half of 2013 with some customers postponing delivery
of orders until the 3rd and 4th quarters of 2013.
Symax has undertaken an expansion of its domestic Chinese business with a new manufacturing
facility located in Wanzhou, Chongqing.
Upon completion, this facility is expected to double the company's production capacity
by 2014.
Symax plans to set up a subsidiary in Wuxi, China to manufacture and sell stairlift products
in China.
The subsidiary is expected to be established in the third quarter of 2013 and to launch
its stairlift products in the Chinese domestic market before year end 2013.
The company has also undertaken an expansion of its service network in support of its geographic
expansion.
The company currently trades at $0.09 and with 30.7 million shares outstanding, is capitalized
at $2.8 million.
For a more information, please visit the company`s website at www.symax.ca, phone Mary Ma at 604-277-6678, or email info@symax.ca.
Additional information is available from Skyone International Securities in Toronto, Ontario.
Contact Michael Zheng at 416-268-6178 or email Michael.zheng@skyoneisec.com.
I'm Lesley Mapstone for Investmentpitch.com For more video news, and to view our disclaimer,
be sure to visit our website at www.investmentpitch.com This video is for information purposes only
and it not a recommendation to buy or sell any securities.