Founded in 1999, Shenzhen, China-based, China TMK Battery Systems Inc. (OTCBB:DFEL), is a professional manufacturer and distributor of premier Nickel Metal Hydride (Ni-MH) multi-cell batteries. The Company specializes in researching and developing, manufacturing and marketing of small sized batteries that are distributed through its global network of large, consumer-focused clients.
China TMK batteries are used in a wide array of consumer products, including, but not limited to, home appliances, cordless power tools, personal communication devices, medical devices and electric bicycles.
Continuously looking to expand its footprint within the ever-growing battery space, the Company is also working to expand into becoming a supplier of backup power solutions to the telecommunications and traffic lighting arenas and is also engaging activities to grow into the Lithium-Ion battery industry where it can leverage existing patents that it holds.
Dedicated to meeting its goals, the Company has entered into a Memorandum of Understanding with Lithium-Ion battery producer, Shenzhen DongFang Hualian Technology Ltd in January.
Additionally, China TMK has recently developed a working prototype of a hybrid electric vehicle battery pack and is currently producing samples for testing.
Demand for TMK China batteries has steadily growing throughout the years and recently has grown to the point that the Company added two additional production lines as the 200,000 units produced per day could not keep up with demand.
Yesterday, China TMK Battery Systems, Inc. released its financial results for the three-month period ending September 30, 2010. The numbers were reflective of demand for the Company’s products. The most recent quarter showed sales increased by 26.5% from $13.0 million in 2009 to $16.5 million this year. Gross profits also grew by nearly 30% from $3.1 million to $4.1, while net income was increased by 52.5% from $2.0 million to $3.1 million.
Where many companies waver with expenses running rampant with sizeable moves in sales, TMK data remained steady. Operating expenses only increased from $800,000 to $1.0 million and sales expense increased by $100,000 from $300,000 in 2009 to $400,000 in the most recent quarter.
Unaudited financial results provided by the Company for the first nine months of 2010 as compared to 2009 revealed that sales are up 35.6% from $34.3 million in 2009 to $46.5 million in 2010. Gross profits have increased to $10.6 million from $8.3 million, or 27.0%. Net income decreased by $1.2 million from $5.1 million to $3.9 million, but this is directly attributed to the merger cost of $1.8 million and associated expenses in January 2010. Adjusted net income showed a 28.0% increase from $5.1 million to $6.9 million.
Additional data from the report showed that as of September 30, 2010, TMK China still has in excess of $5 million on hand in cash and cash equivalents. Earnings season is coming in slow for the big boys on the NYSE, NASDAQ and AMEX with countless companies providing earnings reports that have been detrimental to recent trading patterns as a result of weak quarterly and year to date data.
TMK China is a company and a stock that has the eyes and ears of traders and investors looking for sold numbers from a company that is making noise in the industry and establishing itself as a major player in its chosen industry. With its price per share in the area of $1 and earnings numbers like it produced yesterday, it will be falling on the radar of many savvy investors soon.
