China TMK Battery Systems Inc. Reports Full Year 2011 Results

Jul 18, 2012, 07:30 ET from China TMK Battery Systems Inc.

SHENZHEN, China, July 18, 2012 /PRNewswire-Asia/ -- China TMK Battery Systems Inc. (OTC Bulletin Board: DFEL) ("TMK" or "the Company") (formerly, Deerfield Resources, Ltd.), a Chinese designer, manufacturer and distributor of customized rechargeable battery solutions to global consumer product companies, today announced the Company's financial results for the twelve months ended December 31, 2011. To reduce the financial cost, the company had its accounting firm Malone Bailey conduct an independent accountant's review.

Full Year Results (USD) (Review)

 

12 months ended December 31,

2011

2010

CHANGE

Sales

$91.7 million

$66.4 million

+38%

Gross Profit

$20.8 million

$15.3 million

+36%

Net Income

$13.2 million

$6.3 million

+111%

EPS

$0.36

$0.17

+111%

Fiscal Year ended December 31, 2011

Revenues increased from $66.4 million in the twelve months ended December 31, 2010 to $91.7 million in the corresponding period in 2011, representing a 38% increase due to increase of customer base and product upgrade.

Total cost of sales increased by approximately 39% to $71.1 million compared to $51.1 million in the same period in 2010. Gross profit increased 36% to $20.8 million with gross margin of 22.6% in 2011, compared to $15.3 million and gross margin of 23.0% in 2010.

TMK Battery generated approximately $13.2 million of net income in 2011, an increase of $6.9 million compared to $6.3 million in the same period last year due to better customer demand in 2011 and approximately $1.8 million in one-time merger costs, one-time bonus payments of $1.5 million, and a $0.4 million charge related to S1 registration right penalty incurred in the first quarter of 2010.

The Company had cash and cash equivalents of $7.5 million as of December 31, 2011 compared to $0.4 million at December 31, 2010. Accounts receivable increased from by approximately $4.4 million to $16.8 million due to higher sales.

About China TMK Battery Systems Inc.

Based in Shenzhen, PRC and founded in 1999, TMK manufactures and distributes high rate discharge Nickel Metal Hydride ("Ni-MH") multi-cell batteries in its manufacturing facility located in Shenzhen, China. TMK maintains a diverse roster of large, consumer-focused clients with major production facilities in China. The Company works with its clients throughout the product design cycle to develop and integrate reliable and long-lasting rechargeable power solutions for widely used consumer products, which include home appliances, cordless power tools, medical devices, multiple personal communication devices and electric bicycles segments. The Company is also focused on becoming a supplier of back-up power solutions to the telecommunications industry and for traffic lighting applications. Corporate Information can be found at www.tmk-battery.com and investor information can be found at http://ir.stockpr.com/tmk-battery/  

Cautionary Statement Regarding Forward Looking Information

This press release may contain certain "forward-looking statements" relating to the business of China TMK Battery Systems Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company's short term business and operations, including the ability of the Company to significantly increase its Ni-MH battery manufacturing capacity and meet its current backlog of orders; the ability of the Company to introduce new battery types into its product portfolio while developing Lithium-Ion battery production capabilities, sustain aggressive growth in the coming years relative to its peers and position the Company a vertically integrated rechargeable battery supply solution provider; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Johnny Lai, CFA Senior Analyst MZ Group Direct: 949-259-4989 Mobile: 626-318-0411 Email: jlai@mzgroup.us www.mzgroup.com

SOURCE China TMK Battery Systems Inc.



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