China Keli Announces Q2 2014 Results -- Quarterly Year-over-Year Revenues and Profit Up 33.3% and 50.6%, and Six Month Year-o...

China Keli Electric Co., Ltd. (TSX VENTURE:ZKL) ("Keli" or the "Company") today
announced the financial and operating results for the three and six months ended
October 31, 2013.


For the three months ended October 31, 2013 ("Q2 2014"), total revenue was
$6,036,214, an increase of 33.3% over Q2 2013 of $4,527,803. Product sales were
the key driver of the revenue increase, but the installation service business
continues to grow also. The Company recorded $4,621,420 product sales revenue,
an increase of 43.7% from 3,216,377 in Q2 2013. The installation service revenue
increased 7.9% to $1,414,794 from Q2 2013 of $1,311,426. Gross profit in Q2 2014
was $1,919,581, an increase of 25.3% over Q2 2013 of $1,532,199. The revenue
increase was driven by ongoing investment in marketing and R&D to develop new
customers and products. This additional investment increased operating expenses
from $1,271,462 in Q2 2013 to $1,504,925 in Q2 2014. As a result, the Company's
net profit was $216,640 in Q2 2014 compared to $143,897 in Q2 2013, and increase
of 50.6%. Basic and diluted earnings per share ("EPS") were $0.002. EBITDA was
$556,988 in Q2 2014, an increase of 48.6% over $374,860 in Q2 2013. After
accounting for an unrealized foreign exchange translation gain of $324,585, the
Company reported total comprehensive income of $541,225 in Q2 2014, compared
with total comprehensive income of $421,432 in Q2 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 6 months of FY2014, total revenue was $11,380,405, an increase of 22.3%
over $9,304,675 for the equivalent 6 month period in FY2013. The Company
recorded a net profit of $471,612 in the first 6 months of FY2014, compared to
$433,343 in same period in FY2013. Or the 6 months of FY2014 comprehensive net
income jumped 56.6% over the same period in FY2013.


"We're pleased to report continued revenue and profit improvements in our
operations", said Lou Meng Cheong, Keli's CEO, "Our re-engineering of the
business in the last two years is clearly paying off, and we expect this trend
to continue".


As of October 31, 2013, the Company had total cash and cash equivalents of
$1,196,391 compared with $1,186,364 as of April 30, 2013. Accounts receivable
were $12,982,763 as at October 31, 2013, an increase of $3,190,899 compared with
$9,791,864 as at April 30, 2013. The Company's working capital increased to
$8,380,909 as at October 31, 2013 from $8,195,776 as at April 30, 2013.


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 financial results of the Company for the three and six months ended October
31, 2013 are available on SEDAR at www.sedar.com.


About China Keli Electric Company Ltd.

China Keli Electric Company Ltd. specializes in the manufacturing of electrical
components and equipment, including pre-assembled mini substations, electrical
controllers, pressurized and vacuumed switchgears and circuit breakers.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
China Keli Electric Co. Ltd.
Michael Raymont
EVP Finance and Corporate Development
[phone]
[e-mail]
www.zkl.cc