Simplo to Challenge Full-year Revenue of NT$50 B. This Year

Taipei, May 9, 2011 (CENS)--Riding on the booming PC market, Simplo Technology Co., Ltd., a globally leading supplier of battery packs, is likely to challenge full-year revenue of NT$50 billion for an annual growth of 30% this year, according to the company's chairman Raymond Sung.

Optimistic about sales prospects for notebook and tablet PCs, Sung said that his company will focus production on battery packs for the two electronic devices. He projected shipment of tablet PC batteries to increase explosively this year, and that of notebook PC batteries to rise 10% year-on-year.

Following the footsteps of notebook PC manufacturers, the company has set up a manufacturing base in Chongqing, western China, which is scheduled to deliver a small number of batteries starting in August. Sung noted that three plants will be constructed in the base, with one dedicated to manufacturing key parts and components for batteries.

Hopefully, the company will achieve maximum monthly output of 12 million batteries in the first quarter of 2012 to consolidate its presence in the PC industry.

On another front, Sung also stressed that his company will keep deploying operations in the segment for lithium-ion batteries for electric vehicles in the short term, and has cooperated with China Potevio Group on a joint venture to cash in on growing demand for batteries used in electric buses and taxis. He mentioned that cooperation with Protevio Group will help his company to gain a price competitiveness.

The company raked in NT$9.561 billion in sales revenue and net profits of NT$657 million, or NT$2.58 per share, for the first quarter of this year, with a gross profit rate of 12.12%. The company projected itself sales revenue and net profits to grow 22.9% and 45.8%, respectively, to NT$11.5-12 billion and NT$946-966 million in the second quarter, with the gross profit rate to increase by 0.68 percentage point of a percentage point to 12.8%.

After scoring EPS (earnings per share) of NT$13.06 for 2010, the company has also decided to grant investors dividends of NT$6.5 this year, with NT$5.5 in cash and NT$1 in stock.