ZKL China Keli Electric Company Ltd (delisted)

China Keli Electric Co., Ltd. (TSX VENTURE:ZKL) ("Keli" or the "Company") today
announced the financial and operating results for the three months ended July
31, 2010 ("FY2011 Q1"). The Company completed its qualifying transaction with
Creative Grace Limited ("Creative Grace") resulting in a merger of the two
companies on May 5, 2010. The financial and operating results for FY2011 Q1
include the results of operations of the Company and Creative Grace. The
financial and operating results for the three months ended July 31, 2009
("FY2010 Q1") include the results of operations of Creative Grace only. 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 of foreign currency exchange rates the impact on the
financial and operating results may or may not be material.


For FY2011 Q1, reported total revenue of $3,646,698, an increase of 0.5% over
FY2010 Q1 ($3,630,317), with gross profit $1,645,102, an increase of 8.1%
($1,521,161 for FY2010 Q1); excluding the negative impact of foreign exchange,
increases in both revenues and gross profit would have been greater. The Company
incurred operating expenses for FY2011 Q1 of $1,445,923 ($685,472 for FY2010
Q1). Among the operating expenses, there was a one-time charge of $359,723 for
stock-based compensation expense (nil for FY2010 Q1), and some expenses related
to the merger and listing transaction. Net income for FY2011 Q1 was $61,641
($696,266 for FY2010 Q1) and the basic and diluted earnings per share for FY2011
Q1 were $0.001 ($0.011 for FY2010 Q1). Reduced net income and EPS were due
primarily to one-time charges and the negative effect of foreign exchange rates.
After accounting for an unrealized foreign exchange translation gain of
$243,908, the Company ended the quarter with a total comprehensive income of
$305,549, compared with a total comprehensive loss of $143,444 for FY2010 Q1.
The Company's unrealized foreign exchange gains (losses) on translation of
Group's functional currency to reporting currency are subject to fluctuations in
the exchange rate between the RMB and the Canadian dollar in each reporting
period.


As of July 30, 2010, the Company had total cash and cash equivalents of
$2,667,362 compared with $678,682 as of April 30, 2010. Accounts receivable were
$5,578,877 as at July 31, 2010, an increase of $1,080,768 compared with
$4,498,109 as at April 30, 2010. The Company's working capitcal was $9,045,674
as at July 31, 2010, increased from $4,640,028 as at April 30, 2010.


Full financial results of the Company for the three months ended July 31, 2010
are available on SEDAR at www.sedar.com.


About China Keli Eletric Company, Ltd.

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


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.

Grafico Azioni China Keli Electric Company Ltd. (TSXV:ZKL)
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Grafico Azioni China Keli Electric Company Ltd. (TSXV:ZKL)
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