China TMK Battery Systems Reports Fiscal Year 2009 Financial Results
China TMK Battery Systems Inc. (formerly, Deerfield Resources, Ltd.), a Chinese manufacturer and distributor of customized rechargeable battery solutions to global consumer product companies, announced the company’s financial results for the fiscal year ending December 31, 2009.
For the year ending December 31st 2009, sales revenue increased 32.3% to $48.6 million, from the $36.8 million reported in 2008. International sales comprised 3.5% sales while 97.5% of sales emanated from the PRC. For 2009, total cost of sales of batteries and other products from the company increased by $8.3 million, or 29.4%, to $36.5 million which was directly related to increased sales. The company’s gross profit increased $3.5 million, or 40.5%, to $12 million in the fiscal year of 2009 and gross margins were 24.9% compared to 23.4% for 2008.
Operating expenses for 2009 were approximately $2.9 million, or 5.9% of total sales revenue in comparison to $2.6 million in 2008, or 7% of total sales revenue. Administrative expenses increased $0.3 million, or 31.1%, to $1.3 million primarily due to the expansion of the company’s business through acquisition of Leading Asia Ltd. in 2010. Operating Margins were 19.0% compared to 16.4%.
Net income for the Company in 2009 was approximately $7.5 million, an increase of $1.8 million, or 32.5%, from $5.7 million in 2008. The effective tax rate was 15% for 2009.
"We are very pleased with our financial results for the full year of 2009," stated Henian Wu, Chairman and President. "During 2009, we expanded our customer base and product portfolio for our Ni-MH multi-cell batteries while preparing to launch new products, such as intelligent battery solutions which provide controlled back-up power and address new market verticals, such as traffic technology and the telecommunication infrastructure grid. The rapid growth in consumer products which utilize "environmentally friendly" rechargeable batteries has created a $5 billion market plus market worldwide for Ni-MH batteries and contributed to the Company’s robust revenue and earnings growth in 2009. We are currently doubling our production capacity to capitalize on this growth opportunity and expect to gain further market share in 2010."
Net cash from operating activities was $9.2 million for the fiscal year of 2009, in comparison to $6.3 million provided by operating activities for 2008. The increase in net cash provided in operating activities was primarily due to an increase in net income and trade receivable. Total shareholders’ equity is approximately $15.7 million, with total assets of $36 million versus total liabilities of $20.3 million. The cash balance on our balance as of December 31, 2009 does not include the recent $6.9 million capital raise completed in February 2010.
