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 and nine months
ended January 31, 2014.


For the three months ended January 31, 2014 ("Q3 2014"), total revenue was
$4,004,536, an increase of 34.9% over Q3 2013 of $2,967,761. Installation
service was the key driver of the revenue increase. The Company recorded
$1,745,446 in installation service revenue, an increase of 221.7% from $542,528
in Q3 2013. Gross profit in Q3 2014 was $1,166,784, an increase of 8.4% over Q3
2013 of $1,076,413. The revenue increase was driven by ongoing investment in
marketing to develop new customers, as well as the success of our product
development. Meanwhile, with share options being fully vested, share-based
compensation expense decreased. As a result, operating expenses decreased from
$1,447,562 in Q3 2013 to $1,267,734 in Q3 2014. The Company recorded a loss of
$322,228 in Q3 2014 compared to loss of $386,691 in Q3 2013. (Note: Q3 is
traditionally a slow quarter for Keli because of Chinese New Year, and because
new budgets are not yet available for expenditure by Keli's common customers.)
The loss decreased by 16.7%. Basic and diluted earnings per share ("EPS") were
-$0.004. Positive EBITDA was $59,261 in Q3 2014, which is a significant
turnaround from a loss of $260,351 in Q3 2013. After accounting for an
unrealized foreign exchange translation gain of $1,202,550, the Company reported
total comprehensive income of $880,322 in Q3 2014, compared with total
comprehensive loss of $354,364 in Q3 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 9 months of FY2014, total revenue was $15,384,941, an increase of 25.4%
over $12,272,436 for the equivalent 9 month period in FY2013. The Company
recorded a net profit of $149,384 in the first 9 months of FY2014, more than
triple the amount of $46,652 in same period in FY2013. For the first 9 months of
FY2014 comprehensive net income jumped 396.2% over the same period in FY2013.


"We're pleased to see continuing improvement in our financial performance and
the overall direction of our business, in spite of a sluggish economy", said Lou
Meng Cheong, Keli's CEO, "Q3 is always a slow quarter for business in China, but
we improved in all major performance metrics. Our long range strategic plans and
our constant attention to operational details combine to fuel Keli's success".


As of January 31, 2014, the Company had total cash and cash equivalents of
$746,260 compared with $1,186,364 as of April 30, 2013. Accounts receivable were
$11,306,235 as at January 31, 2014, an increase of $1,514,371 compared with
$9,791,864 as at April 30, 2013. The Company's working capital increased to
$8,504,766 as at January 31, 2014 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 nine months ended
January 31, 2014 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.


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 COMPANY LTD.
Michael Raymont
EVP Finance and Corporate Development
(403) 389-3488
mraymont@zkl.cc
www.zkl.cc

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