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SYNergy Makes Profits Against Odds 2 Years in Row

2015/5/28

by Bing-Feng Chang

With steady shipments of small-sized lithium-ion battery for the application market of blue tooth headsets, wearable devices, and non-blue tooth niche IT, SYNergy ScienTech Corporation has been making profits continuously for the last two years, culminating in annual revenue of 1.07 billion NT dollars and Earnings per Share of 1.04 NT dollars last year, thus proving itself as one of few profit-making companies in the lithium-ion battery cell industry in Taiwan.

In 2013, thanks to the enforcement of new transportation rules in Mainland China, SYNergy ScienTech Corp., which specializes in the sector of applications of miniature and small-sized lithium-ion polymer batteries, won massive short-term orders for batteries in blue tooth headsets and leapt over 1.1 billion NT dollars in its yearly revenue all at once, meaning 50% in growth and setting a new stage of development in prospect.

Dr. Xuekun Xing, President of Synergy, pointed out that although last year the good effect of rush orders for blue tooth headsets in Mainland China was no more, there were increasing demands in the market for non-blue-tooth headsets, such as computer and mobile phone peripherals, wearable devices, medical gadgets, wireless keyboards, and joysticks, etc., which filled up the gap left in the orders for blue tooth headsets and maintained the revenue and profitability at a good level.

According to the analysis of the operation data , the SYNergy lithium-ion battery application allocation last year is as follows: Blue tooth headsets were largest, occupying about 53%; wearable devices, the second, made up about 24%; non-blue-tooth applications (computer peripherals and mobile phone peripherals) like medical gadgets, wireless keyboards, joysticks, etc. added up to about 23%. The variations in SYNergy products portfolio during the last two years have shown that under the trend towards popularity of Internet of Things and mobile devices, the emerging applications of lithium-ion batteries in wearable devices, medical gadgets, and mobile phone peripherals, etc. are more and more significantly becoming a new mainstay of growth in SYNergy business operation.

Kevin Wang, Vice president of Sales & Marketing, remarked that different from other manufacturers of lithium-ion battery cells in Taiwan, SYNergy dedicates itself to the application market of miniature and small-sized lithium-ion batteries, through developing high-voltage, high-energy density, and miniaturized form factor, irregular-shaped, etc. lithium-ion batteries.The company helps major players of blue tooth headsets around the world in designing more diversified products in new style, while the company is growing together with its clients, and maintaining the high market share. In addition, in the field of non-blue-tooth headsets such as smart bands, computer and mobile phone peripherals, SYNergy successfully procures some international premier companies as new clients, pays big efforts on targeting at a growing and stronger business scope through excellent brand images, and gradually masters the blue ocean strategy for making the best of new business opportunities in the area of small rechargeable lithium-ion batteries on the globe.

According to Dr. Xing, the monthly production capacity in Kunshan Factory No. 1 was elevated on a small scale to 3.6 Million cells/packs last year. To accommodate the demands on the next stage, this year SYNergy initiates large-scale step-by-step plans of production expansion by installing new production facilities with capacity of turning out 6 million cells/packs per month in Kunshan Factory No. 2. This new factory will formally come into operation in the first half of 2017.The products of Kunshan Factory No.2 are mainly small lithium-ion batteries, but not excluding medium- and large-sized niche ones.

SYNergy holds a cautious but optimistic view of its business operation this year. The board of directors has passed a resolution to distribute cash for stock profits. In the second half of this year, company will launch a plan of IPO (Initial Public Offering),conduct Emerging Stock Market registration, and goes towards becoming a publicly listed corporation.

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