Taiwan-based battery pack maker Simplo Technology brought in 2010 net profit of NT$3.328 billion (US$105 million), exceeding its current paid-in capital for the eight consecutive time, and sets a challenging goal of generating net profit at least equivalent to current paid-in capital in 2011, according to company chairman and CEO Raymond Sung at a March 15 investors conference.
Simplo posted revenues of NT$38.382 billion, gross margin of about 14%, net operating profit of NT$3.319 billion, net profit of NT$3.328 billion which was 30.65% in excess of paid-in capital, and net EPS of NT$13.06 in 2010.
Simplo is setting up a factory in Chongqing, western China, with trial operation and product certification scheduled for July and volume production to begin in September, Sung indicated. The factory will reach a monthly capacity of two million battery packs in October-November, Sung said.
In addition, Simplo has an existing factory with a monthly capacity of seven million units in eastern China and plans to set up a new one with a monthly capacity of two million units in 2012, Sung pointed out. The capacity expansion is to meet growing demand for batteries used in consumer electronics and electrical cars, Sung noted.
Sony has stopped production of battery cells at its factories in northeastern Japan due to the recent earthquake, but this has not brought substantial impact on Simplo because Sony accounts for only a small portion of its total procurement volume of battery cells, Sung pointed out.
Article translated by Adam Hwang
