China BAK Battery, Inc.
(Nasdaq: CBAK)
Nov 2009
Corporate Presentation
Safe Harbor Statement
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This presentation includes or incorporates by reference statements that constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements relate to future events or to our future
financial performance, and involve known and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance, or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied by these forward-looking
statements. These statements include, but are not limited to, information or assumptions about revenues,
gross profit, expenses, income, capital and other expenditures, financing plans, capital structure, cash flow,
liquidity, management’s plans, goals and objectives for future operations and growth. In some cases, you can
identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,”
“seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or
other comparable terminology. You should not place undue reliance on forward-looking statements since they
involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our
control and which could materially affect actual results, levels of activity, performance or achievements .
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An upstart in providing power cells for electric
cars and bikes
Established leader in manufacturing Li-ion
mobile and notebook batteries
Strong performance amid economic recession
Shipment started to a Tier 1 OEM notebook
customer
Investment Considerations
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Experienced Team Focused on Growth
and Profitability
Xiangqian Li, Chairman and CEO
Visionary leader in China Li-ion battery industry
Led CBAK since founding; full-time, operating CEO
Tony Shen, CFO, 2+ years with CBAK
Former CFO at eLong Inc (Nasdaq: LONG), led
eLong to its first quarter of operating profit
Directed comprehensive cost/expense reduction
efforts
Ken Broom, COO, nearly 2 years with CBAK
20+ years of management, engineering and sales
experience in the Li-ion battery industry
Successful tenure as GM at NEC Moli Energy
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Polymer Cells
PDAs
Digital cameras
Bluetooth headsets
MP3/ Portable
entertainment
Prismatic
Aluminum-Case Cells
Cell phones
Cylindrical Cells
Notebook Computers
Power Cells
Hybrid-electric
vehicles
Light-electric
vehicles
Uninterruptible
Power Supply
Li-ion
Rechargeable
Batteries
Key Applications
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New Products at BAK Tianjin
350k Sq. meters of industrial campus
and 200k Sq. meters of facility area
Power Cells (LiFePO4) For
Electric Cars
Electric Bicycles
Other Applications
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Power Cells Applications
Power Cells for Electric Cars
Qingyuan Motors (China):
Samples shipped in July
Discussions started with major
US- and EU-based auto
manufacturers
National “863” Program
- 7 -
Power Cells for Electric
Bicycles
Small shipments to Taiwanese
bicycle manufacturers
Great market potential in China
- 8 -
Power Cells Applications
Power Cells for Other
Applications
Uninterrupted Power Supply
(UPS)
Mining Lamps
Power Tools
Gardening Tools
Power Cells Applications
- 9 -
Customers
Cylindrical
Started shipping to a leading notebook manufacturer in June
Another notebook manufacturer qualification by end of 09
Asus (Taiwanese notebook/net-book maker) volume shipment
Prismatic Aluminum-Case (Cell phone OEMs)
Foxconn, Lenovo, ZTE, Haier and Hisense
Recently supplied small batch to Verizon
Polymer
SanDisk
Small batch shipped to a supplier of Canon
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Highlights: Q309 (June)
Strong performance amid recession
Revenue at $45M, grew 10% sequentially
Gross Margin at 11.3% vs. 7.4% last Q
Operating cash flow $5.2M
Cylindrical a bright spot
2nd largest revenue source (28%)
Shipped to tier-1 customer “A” and to be qualified by “B”
Growth Potential in Power Cells
Sample cells for LEVs shipped to customers for testing
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$20M RD Offering (Oct ‘09)
Strengthened Capital Structure
At least $10M will be for debt reduction
Rest of proceeds goes to CapEx for power-cell
capacity
Favorable Distribution
European and US investors participated and reached
Both Clean Tech/New Energy and China-focused
funds targeted
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Thank You
