China Bak Battery (NASDAQ:CBAK)

Second Quarter Fiscal Year 2012 Highlights

• Revenue from high-power lithium-ion battery cells reached a record $2.3 million, an increase of 197.3% year-over-year
• In March 2012, China BAK's polymer cells passed ZTE Corporation's certification process and will supply polymer cells to be used in smartphones
• China BAK reported another quarter of positive cash flow of $9.1 million from operating activities
• Net loss was $15.6 million, or diluted loss per share of $0.25, in the second quarter of fiscal 2012 compared to net loss of $1.8 million, or diluted loss per share of $0.03, in the previous quarter and net loss of $4.1 million, or diluted loss per share of $0.06, in the second quarter of fiscal 2011

"Historically, our second fiscal quarter is a slow quarter partly due to the Chinese New Yearholidays, which significantly reduce overall sales volume. In addition, the continued weakness in the global economy and the slowdown in the replacement market also impacted our business. At the same time, we are pleased with the growth in revenue from our high-power lithium battery cells, which are supplied to EV customers," commented Mr. Xiangqian Li, Chairman, President and CEO of China BAK.

Business Outlook

"Over the next few quarters, we expect our earnings performance to improve as we continue to transition from the replacement market to the OEM market. We have cooperative relationships with major tier 1 OEM customers in China and anticipate our revenues will recover as we expand in the OEM market. We were pleased that our high-power lithium ion battery cells reached record quarterly revenues nearly 200% higher than in the same quarter last year, and we expect that our cooperative relationship with Chery Automobile, among others, will contribute to greater earnings in this sector. We also expect our ongoing upgrades to our polymer cell production lines will further our transition toward servicing and generating profits from China's growing smartphone and tablet computer battery cell markets," commented Mr. Xiangqian Li, Chairman, President and CEO of China BAK.

SHENZHEN, China, April 11, 2012 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK" or the "Company") (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company has received a letter from The NASDAQ Stock Market Staff notifying the Company that it has regained compliance with the minimum bid price requirement for continued listing set forth in Listing Rule 5450(a)(1), as its common stock has achieved a closing bid price of $1.00 or more for 10 consecutive business days.

On October 24, 2011, NASDAQ Staff notified the Company that its common stock was not in compliance with one of the standards for continued listing on the NASDAQ Global Market because the closing bid price of its common stock had fallen below $1.00 for 30 consecutive business days. The Staff also notified the Company that it had been granted a grace period of 180 calendar days, or until April 23, 2012 in which to regain compliance. In a letter dated April 10, 2012, the Staff informed the Company that it had determined that the closing bid price of China BAK's common stock has been at $1.00 per share or greater for ten consecutive business days from March 26, 2012 to April 9, 2012. Accordingly, the Company has regained compliance with NASDAQ Listing Rule 5450(a)(1) and this matter is now closed.

SHENZHEN, China, April 9, 2012 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK", the "Company", or "we") (Nasdaq: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that on April 9, 2012, the Company entered into a new contract to supply high-power batteries to Chery Automobile Co., Ltd. ("Chery").

Under the contract, China BAK will deliver 1,000 lithium-ion high-power battery units in 2012 to power Chery's Ruilin M1 electric cars. The new contract is in addition to the Company's previously-announced contract with Chery, entered into in February 2012, to supply 100 high-power battery units to Chery, which are on schedule to be delivered by June 2012. The Ruilin M1 is one of the five electric vehicle models that have been approved for government use since early this year.

Additionally, the Company announced that it will hold a joint press conference with Chery in mid-April in Tianjin. At the press conference, Chery and China BAK plan to announce a long-term cooperation program in the electric vehicles industry and invite an interactive discussion with the attendees.

"We believe that this additional order from Chery, and their anticipated further orders and cooperation, further underline our ability to deliver high-quality battery products and lead the development of China's emerging electric vehicle battery market. Likewise, we continue to expect additional orders from other domestic customers for our lithium-ion high-power batteries to power electric vehicles in China in 2012," commented Mr. Xiangqian Li, CEO of China BAK.

SHENZHEN, China, April 3, 2012 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK", the "Company", or "we") (Nasdaq: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company has received a $1.9 million subsidy for its battery module project from the National Development and Reform Commission (NDRC) and Ministry of Industry and Information Technology (MIIT).

China BAK's battery module is comprised of cylindrical cells that can be used in electric vehicles (EVs), electric motors, electric bicycles (e-bikes) and power storage. The government funds will be used to further develop the battery module's efficiency and environmental-friendliness.

Additionally, the Company announced that it has received new orders from its e-bike customers and expects to deliver 12,000 high-power lithium-ion battery units to its e-bike customers by the end of April 2012.

"In recent years, we have received recognition for our battery modules used in EVs and e-bikes. The subsidy from NDRC and MIIT further demonstrates the government's continued support and recognition of our contribution to China's EV and e-bike industry," commented Mr. Xiangqian Li, China BAK's Chairman and Chief Executive Officer. "We will utilize the grant to further improve our product quality and strengthen our market position in the EV and e-bike industry. We believe that our experience and technological expertise will enable us to increase our market share and deliver high-quality products to our customers."

SHENZHEN, China, March 29, 2012 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK", the "Company", or "we") (Nasdaq: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company received a new contract to supply its high-power lithium-ion batteries to a major Korean electric motor manufacturer.

Under the contract, China BAK will deliver 300 high-power lithium-ion battery units to the Korean manufacturer by April 2012 to power its electric motors. The customer previously tested and provided feedback on a sample set of China BAK's lithium-ion high power batteries.

"We are pleased to expand the end market for our high-power lithium-ion batteries to electric motors. Our supply contract with a major Korean manufacturer marks our entry in the attractive electric motors market," commented Mr. Xiangqian Li, CEO of China BAK. "We are pleased with customer feedback on our high-power lithium-ion batteries and expect to receive additional orders in the third fiscal quarter of 2012. We will continue our attention toward engaging with the EV industry and expect to make additional progress in this direction," added Mr. Li.

SHENZHEN, China, March 26, 2012 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK", the "Company", or "we") (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company achieved progress in the domestic OEM market in March 2012.

On March 23, 2012, ZTE Corporation notified the Company by written notice that China BAK has passed its certification process to supply battery cells It is expected that the Company will begin to supply approximately one million polymer cells every month to ZTE in the third fiscal quarter.

Also in March 2012, the Company won a bid to supply battery cells to TCL Corporation, one of the largest consumer electronics enterprises in China with a global presence. The Company will supply 3 million prismatic cells from April through June to TCL. As the Company is a qualified battery supplier to Vodafone Group, TCL may also supply some of our battery cells to Vodafone.

"We are committed to transforming into a qualified battery supplier to the OEM market globally, and we are pleased to see the initial achievement we gained in China," commented Mr. Xiangqian Li, president and chief executive officer of China BAK. "We will continue to focus on producing qualified batteries used in different areas to the OEM market," added Mr. Li.

SHENZHEN, China, February 14, 2012 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK", the "Company", or "we") (Nasdaq: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that on February 10, 2012, the Company's Tianjin facility received a new contract to supply high-power batteries used in electric cars, Ruilin M1, to Chery Automobile Co., Ltd. ("Chery"), one of the Company's long-term partners in China.

According to the contract, China BAK will supply 100 units of lithium-ion high-power batteries, which will be used to power Chery's electric cars in the first half of 2012. Ruilin M1 is Chery's first Lithium-ion solution EV which was officially launched at the 25th World Electric Vehicle Symposium and Exposition in November 2010. China BAK will deliver these batteries to Chery by the end of June 2012.

"We are pleased to expand our cooperation with Chery Automobile, one of our long-term partners in China. We enjoy good cooperation with Chery in the electric vehicles segment and our customer has been pleased with the quality and performance of all units shipped so far," commented Mr. Xiangqian Li, CEO of China BAK. "We expect to receive additional orders from Chery in the second half of 2012. We also expect additional domestic customers to place orders for electric vehicle batteries in 2012," added Mr. Li.

First Quarter 2012 Results

• Net revenues for the first quarter were $71.8 million, up 16.5% from $61.6 million last quarter and up 12.9% from $63.5 million for the same period in fiscal 2011.
• Net loss was $1.8 million, or diluted loss per share of $0.03, in the first quarter of fiscal 2012 compared to net loss of $9.6 million, or diluted loss per share of $0.15, in the previous quarter and net loss of $3.7 million, or diluted loss per share of $0.06, in the same quarter of fiscal 2011.

Business Outlook

"In fiscal 2012, our growth strategy is focused on implementing aggressive sales and marketing efforts to expand our market share and increase our OEM customer base for prismatic battery packs and high-power lithium batteries. Over the next few quarters, we also expect to be certified by additional Tier 1 customers for polymer batteries for use in ultra-thin smartphones and tablet computers," commented Mr. Xiangqian Li, Chairman, President and CEO of China BAK.

"The market demand for our high-power lithium batteries and cylindrical batteries used in EVs, E-bikes, power tools, and UPS energy storage solutions continues to grow at a robust pace and we believe we are well-positioned to capitalize on such market opportunities. We expect such growth opportunities in the EV industry to contribute to our revenue growth in fiscal 2012," added Mr. Li.

"We continue to make progress with our turnaround strategy and in the first quarter of fiscal 2012, we experienced strong revenue growth and recovery in our gross margin level. We also continue to generate positive cash flow from operations. We continue our efforts to improve our profitability," commented Ke Marcus Cui, CFO of China BAK.

Fourth Quarter 2011 Results

• Net revenues for the fourth quarter were $61.6 million, up 30.7% from $47.1 million last quarter and up 10.8% from $55.6 million for the same period in fiscal 2010.
• Gross profit for the fourth quarter of fiscal year 2011 was $8.3 million, compared to gross profit of $3.6 million last quarter and gross profit of $5.3 million in the same quarter of last year.
• Gross margin for the fourth quarter of fiscal 2011 increased to 13.4% from 9.5% in the year ago period.
• Net loss was $9.6 million, or diluted loss per share of $0.15, in the fourth quarter of fiscal 2011 compared to a net loss of $7.2 million, or diluted loss per share of $0.12, in the last quarter and net loss of $8.6 million, or diluted loss per share of $0.14, in the same quarter of fiscal 2010.

SHENZHEN, China, Sept. 21, 2011 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK", the "Company", or "we") (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, today announced its business outlook for certain key areas for its fiscal year ended September 30, 2012.

Management estimates the Company's wholly-owned subsidiary, BAK International (Tianjin) Limited ("BAK Tianjin"), which produces high-power lithium battery cells, to account for approximately 15% of fiscal year 2012 revenue, up from approximately 5% in fiscal year 2011, while battery cell production for cell phones is expected to decrease proportionally while remaining the Company's core business. In particular, China BAK expects increased sales of battery cells for electric bicycles and electric buses to take advantage of the increasing markets for these vehicles in China. In line with this expectation, the Company expects to install at least one additional production line for electric vehicle (EV) batteries during fiscal year 2012. In fiscal year 2012, the Company expects BAK Tianjin to have average monthly output of approximately 12,500 units, up from average monthly output of approximately 6,000 units in fiscal year 2011, with further increases expected for fiscal years 2013 and 2014 to approximately 33,000 and 91,000 units monthly, respectively. The Company also plans to develop mobile phone batteries under its brand name, which is expected to be launched in phases during fiscal years 2012 and 2013. In addition, although the Company is aware that informal information was recently provided by a member of the Company's management in response to a question as to expected gross profit margin for fiscal year 2012, the Company has determined that additional time is needed before it will be in a position to confirm its outlook in this regard.

In connection with its ongoing and planned future capital expenditures and research and development, China BAK is discussing financing alternatives with certain potential strategic partners to raise capital up to $50 million by the end of calendar year 2011. The form and terms of this potential financing is under discussion. The Company's capital expenditure budget for fiscal year 2011 was approximately $35 million and the budget for fiscal year 2012 is being determined.

"Since inception, China BAK has gained a strong market reputation through delivery of high quality products utilizing its advanced manufacturing capabilities. We plan to leverage our market position to establish our own distribution channel. We also continue to strive to implement cost control measures to achieve profitability," commented Mr. Marcus Cui, CFO of China BAK.

"We are encouraged by the rapid growth in the EV market and plan to accelerate production of our high-power lithium EV cells at BAK Tianjin. The PRC government is promoting use of electric vehicles, given the environmental and energy benefits. Given the environmental benefits, we believe lithium EV batteries will enjoy a competitive edge over lead-based EV batteries, presenting an attractive growth opportunity for China BAK. We are committed to focus on the EV industry and capitalize on the expected market growth," added Dr. Huanyu Mao, CTO of China BAK. Dr. Mao further commented, "As we have noted, we do not have specific plans on the form or terms of the contemplated financing to fund our planned capital expansion and R&D activities. An offering of BAK Tianjin equity would only be one possible way that we would attain this goal. We are exploring a range of options in connection with our discussions to gain sufficient financing to expand our EV investments, and will select the one that we believe is in the best interests of our shareholders."

SHENZHEN, China, June 13, 2011 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK" or the "Company") (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company has successfully achieved a turnaround in its cylindrical battery cells business for the month of May 2011.　

China BAK's operational results for the month of May 2011 indicate that the Company's cylindrical battery cell business is now profitable. As a result of the earthquake in Japan, the Korean and Chinese batteries are in higher in demand since April 2011. In addition, the Company raised the pricing of its cylindrical battery cells following suit with other Korean battery manufacturers, further enhancing profitability. Currently, the Company's total shipment of cylindrical battery cells have nearly doubled compared with the same period in 2010.

"Our cylindrical battery cells business is experiencing strong growth and has resumed profitability. We are pleased with the results and continue to make progress in our effort to achieve a successful turnaround in our other business segments. We believe our cylindrical battery cells business will continue to grow driven by our new products featuring high quality and lower cost raw materials," commented Mr. Xiangqian Li, CEO of China BAK Battery, Inc. "Beginning third quarter of fiscal year 2011, we plan to utilize cost-competitive alternative raw materials in the production of our cylindrical battery cells which will further reduce our costs and enhance our profitability. We expect our cylindrical battery cells business to become an increasing profit contributor in the near future."

SHENZHEN, China, June 9, 2011 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK" or the "Company") (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company is seeing a surge in customer demand for its e-bike battery business at its Tianjin facility due to the recent government suspension of lead-acid battery manufacturing in China.　

As recently reported in the periodical Advanced Battery Weekly, there are nearly 300 lead-acid battery producers in Zhejiang Province, China, and more than a hundred people have unsafely high blood lead level in this area. Several leading lead-acid battery manufacturers in China have recently suspended production due to a government crackdown on heavy metal pollution. In addition, each of the Ministry of Public Security, the Ministry of Industry and Information Technology, State Administration for Industry & Commerce and the General Administration of Quality Supervision, Inspection and Quarantine is reportedly requiring local governments, police, regional industry and commerce offices to tighten management of e-bike manufacturing plants. Based on reports, e-bikes may weigh no more than 40 kg and may not exceed a top speed of 20 km (12.4 miles) per hour. In comparison with the traditional lead-acid battery, it has been documented that lithium-based battery cells provide a number of advantages, including lighter weight (the weight for each battery pack used in an e-bike is about 4 kg) without sacrificing capacity, or about 1/3 or 1/4 less weight than a comparable lead-based battery; longer cycle-life; and have less environmental impact due to zero use of lead. All products using China BAK battery packs can meet the above government requirements.

Concurrently with these industry developments, the Company has received an increase in the number of requests for China BAK's lithium-based battery cells from e-bike manufacturers. Similarly, the Company's major customers, XDS Shenzhen Xidesheng Bicycle Co., Ltd., Geoby Electric Vehicle Co., Ltd. and NOAHtek Electric Bicycles Company, have recently initiated discussions with the Company regarding future orders. As compared with orders received and expected to be received for the Company's quarter ended June 30, 2011, the Company's forecast quantity of orders for its quarter ended September 30, 2011 from e-bike manufacturers is expected to be approximately 88% higher, or 20,000 battery packs compared to expected sales of approximately 10,600 for the current quarter. China BAK also expects that the Company will see additional new customers from the traditional lead-acid-battery-powered bicycle manufacturers for the quarter ended September 30, 2011.

"Reuters reported that batteries for e-bikes accounted for about 20 percent of China's 3.7 million tonnes of refined lead consumption in 2010 with annual production of more than 17 million e-bikes. Due to the government's focus on heavy metal pollution, we believe even a 10% replacement in demand for the traditional lead-acid battery by lithium-ion battery to power e-bikes, would result in a substantial increase in demand for us," commented Mr. Ke Marcus Cui, Chief Financial Officer of China BAK. "The Chinese government provides strong support and encouragement to lithium-based battery development and we are well recognized for our high-quality, extensive production experience and technology in the e-bike market. We therefore expect to further increase our sales of lithium-based batteries to e-bike customers."

SHENZHEN, China, May 27, 2011 /PRNewswire-Asia/ -- China BAK Battery, Inc. ("China BAK" or the "Company") (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company's board of directors promoted Mr. Ke Marcus Cui to chief financial officer, treasurer and secretary, effective immediately. Mr. Cui had been serving as the Company's interim chief financial officer since December 2010 and director of investor relations since September 2010.

Mr. Cui brings a wealth of experience in management, accounting, auditing, financial analysis and reporting. Previously, Mr. Cui served as assistant to the general manager of BAK Tianjin, transitioning to the position of marketing and sales director and most recently he served as the finance director of BAK Tianjin. He also worked in Japan for Nomura Institute of Capital Market Research as assistant researcher. Mr. Cui earned his Bachelor of Science degrees in project management and economic information management from Chiba University of Japan and Jilin University, respectively, and a Master's degree in international financial analysis from University of Newcastle England. Mr. Cui is fluent in Mandarin, English and Japanese.

Mr. Xiangqian Li, China BAK's president and chief executive officer, stated, "Mr. Cui continues to work hard to improve the Company's financial condition since his appointment as interim chief financial officer and has gained recognition from the board and senior management. We are delighted to promote Mr. Cui into the CFO position. Throughout his tenure at China BAK and BAK Tianjin, Marcus has successfully taken on roles of increasing responsibility demonstrating his commitment to achieve excellence. He has a strong understanding of our business and operations and we are confident in his ability to continue to steer China BAK through this turnaround period."

Second Quarter Results:

• Net revenues for the second quarter were $46.7 million, down 26.5% from $63.5 million last quarter and down 7.4% from $50.4 million for the same period in fiscal 2010
• Gross profit for the second quarter of fiscal year 2011 was $4.4 million, down 55.5% from $10.0 million last quarter and down 50.6% from $9.0 million in the same quarter of last year
• Net loss was $4.1 million, or diluted loss per share of $0.06, in the second quarter of fiscal 2011 compared to net loss of $3.7 million, or diluted loss per share of $0.06, in the last quarter and net loss of $2.5 million, or diluted loss per share of $0.04, in the same quarter of fiscal 2010

SHENZHEN, China, Feb. 24, 2011 /PRNewswire-Asia/ -- China BAK Battery, Inc. today announced that the Company's Tianjin facility was awarded a new contract to supply lithium-ion high-power batteries to leading e-bike manufacturer, XDS Shenzhen Xidesheng Bicycle Co., Ltd. ("Xidesheng Bicycle") in China.

As per the supply contract, in calendar year 2011, China BAK will supply 20,000 units of lithium-ion high-power batteries, which will be used to power Xidesheng Bicycle's lithium-ion electric bicycles. Management expects to receive additional orders from Xidesheng Bicycle.

SHENZHEN, China, Jan. 28, 2011 /PRNewswire-Asia/ -- China BAK Battery, Inc. today announced its financial results for the first quarter of fiscal year 2011 ended December 31, 2010 ("Q1 2011").  

Fourth Quarter Fiscal Year 2010 Financial Results

• Net revenues for the fourth quarter were $55.6 million, down 5.1% from $58.6 million last quarter and down 3.4% from $57.6 million for the same period in fiscal 2009.

• Operating loss for the fourth quarter was $7.3 million compared to $18.4 million in the last quarter and $0.9 million in the same quarter of fiscal 2009. Excluding the impact of non-cash items, including provisions for doubtful debts, obsolete inventories and impairment charges related to strategic review of business operations, non-GAAP operating loss was $3.3 million in the fourth quarter of fiscal 2010 compared to non-GAAP operating loss of $3.9 million in the last quarter and non-GAAP operating income of $3.6 million in the same period a year ago.

• Net loss was $8.6 million, or diluted loss per share of $0.14, in the fourth quarter of fiscal 2010 compared to net loss of $18.3 million, or diluted loss per share of $0.29, in the last quarter and net loss of $1.4 million, or diluted loss per share of $0.02, in the same quarter of fiscal 2009. Excluding the impact of non-cash items, including provisions for doubtful debts, obsolete inventories and impairment charges related to strategic review of business operations, non-GAAP net loss for the fourth quarter of fiscal 2010 was $4.6 million, or a loss of $0.08 per diluted share, compared to non-GAAP net loss of $3.8 million in the previous quarter, or a loss of $0.06 per diluted share, and non-GAAP net income of $3.2 million, or earnings of $0.06 per diluted share in the same period a year ago.

Fiscal Year 2010 Financial Results

For fiscal year 2010, net revenues were $214.8 million, up 1.7% from $211.1 million in fiscal 2009, gross profit was $22.7 million or 10.6% of net revenues, down 15.3% from $26.8 million or 12.7% of net revenues for fiscal 2009. Operating loss was $27.7 million compared to $7.0 million in fiscal 2009. Excluding the impact of non-cash items, including provisions for doubtful debts, obsolete inventories and impairment charges related to strategic review of business operations, non-GAAP operating loss was $1.8 million in fiscal 2010 compared to non-GAAP operating income of $5.3 million in fiscal 2009. Net loss was $32.8 million, or diluted loss per share of $0.53, compared to net loss of $14.0 million, or diluted loss per share of $0.25, in fiscal 2009. Excluding the impact of non-cash items, including provisions for doubtful debts, obsolete inventories and impairment charges related to strategic review of business operations, non-GAAP net loss for fiscal 2010 was $6.8 million, or a loss of $0.11 per diluted share, compared to non-GAAP net loss of $1.6 million, or loss of $0.02 per diluted share in fiscal 2009.

Business Outlook

“In the second half of fiscal 2010, we successfully moved forward with our turnaround plan to achieve positive operating cash flow and reduce our debt levels. In the fourth quarter of fiscal 2010, we reported further sequential improvement in gross margin as our management team continued to implement cost control and efficiency measures,” commented Jun Zou, Chief Financial Officer of China BAK.

“China’s EV market presents an exciting growth opportunity and we continue to advance our sales and marketing efforts to promote our high-power lithium batteries used in EVs, E-bikes and UPS - energy storage solution. Our batteries now power new EVs launched by China’s major automobile manufacturer, Chery and e-bikes manufactured by leading e-bike manufacturer, Geoby Electric. We expect a significant increase in revenue contribution in this area in fiscal 2011. In addition, our shipments of prismatic battery packs to OEM customers nearly doubled from last year, further strengthening our leading position in cellular phone market. In the year ahead, we expect to further increase our supply of battery packs to valued OEM customers,” commented Mr. Xiangqian Li, CEO of China BAK.

Net loss was $18.3 million, or diluted loss per share of $0.29, in the third quarter of fiscal 2010 compared to net loss of $2.6 million, or diluted loss per share of $0.04, in the last quarter and net loss of $5.2 million, or diluted loss per share of $0.09, in the same quarter of fiscal 2009. Excluding the impact of non-cash expenses, including provisions for doubtful debts, obsolete inventories and impairment charges related to strategic review of business operations, non-GAAP net loss for the third quarter of fiscal 2010 was $3.8 million, or a loss of $0.06 per diluted share, compared to non-GAAP net loss of $686,000 in the previous quarter, or a loss of $0.01 per diluted share, and non-GAAP net loss of $1.6 million, or a loss of $0.03 in the same period a year ago.

"Over the past four years we have invested heavily in strengthening our manufacturing and R&D capacity. As a result, we now have the production lines necessary to support our future development in the electric vehicle (EV) battery market and in the consumer electronic battery market. Despite the impact of severe price competition in cylindrical battery cells for laptop computer batteries on our short-term profitability, we made good progress penetrating other high-gross margin markets, such as electric vehicle and power tool applications," commented Mr. Xiangqian Li, CEO of China BAK.

"We have already received orders from Taiwan's Yulon-motor along with increased order flow from domestic motor manufacturers and we anticipate sales of batteries used in electric buses and electric vehicles to accelerate in the next quarter. We are optimistic that we are starting to enter a growth phase and expect to see strong top line growth and improvements in bottom line in the next few quarters," Mr. Li concluded.

"We began implementing our turn around plan in late May 2010, and we have already made improvements in operating efficiency, cash flow and leverage. We continue to direct our efforts in these areas in order to return the Company to growth and profitability with lower leverage. We are confident that our gross margin will recover to a double-digit level with our cost control measures and reduced inventories," commented Jun Zou, CFO of China BAK.

Source: PR Newswire (July 28, 2010)

"Reviewing the second quarter of fiscal 2010, we are very encouraged to see that the demand for high power cells for the E-Bike and EV market continues to grow, and we look forward to scaling our production levels in line with the development of this exciting market. We were able to achieve gradual improvement of our shipments to the OEM domestic market for branded mobile phone manufacturers through our in house pack line, which will further improve profitability of our traditional prismatic business. We are pleased with our initial relationships with major global notebook OEMs in the cylindrical segment and are focused on demonstrating that we can be a dependable, high volume, high quality partner to these companies over time," commented Mr. Xiangqian Li, CEO of China BAK.

"I am excited to join the China BAK team and aim to lead the Company's success in the quarters and years ahead through a deep commitment to both financial management and transparent communication with the investment community," commented Jun Zou, CFO of China BAK. "After careful scrutiny of our performance in first half of FY 2010 we found that the business recovery in certain segments is likely to be slower than we expected. As a result, we believe it is prudent to revise our revenue guidance to approximately $220 million for FY 2010. We expect to show positive operating income and EBITDA in the second half of the fiscal year."

'We are glad to see our Tianjin Facility has delivered samples to automakers for testing; it's a milestone of our development of new energy power cells; and we foresee a bright future for this business. In the traditional business segments, we will continue implementing aggressive measures to reduce cost and expenses,' commented Mr. Xiangqian Li, Chairman and CEO of China BAK.

Source: PR Newswire (July 23, 2009)

'Throughout FY09, prioritization of our products portfolio and aggressive cost and expense reduction will be our focus. We are delighted that a first-tier OEM notebook manufacturer determined that China BAK's cylindrical cells meet their stringent performance and reliability requirements. Also, we believe we will continue to gain market share in all products,' commented Mr. Xiangqian Li, Chairman and CEO of China BAK.

'We will continue to take appropriate action to address the downturn in the global economy as well as the challenges related to weak customer demand. We have implemented aggressive measures to reduce costs and expenses which will definitely strengthen the Company's ability to ride out the recession,' commented Mr. Tony Shen, CFO of China BAK.

The company did not address previous guidance reported on January 23, 2009.

Source: PR Newswire (April 28, 2009)

CBAK files an investor presentation.

Source: SEC Form 8K (February 17, 2009)

Guidance Report:

''We are pleased to see stable revenue and gross margin this quarter. Revenues from cylindrical cells remained strong, and revenues from prismatic cells continued to grow. This performance is remarkable in light of the difficult market situation. However, the crisis has affected many markets our customers serve. Looking at weakened demand from our customers, we feel it necessary to take a more cautious look at our revenue guidance for FY09."

Full Year Fiscal 2009 Guidance Ending September

Source: PR Newswire (January 23, 2009)