Exhibit 99.1
Company Contact: Investor Relations Contact:
Dave Brigante Matt Hayden/Brett Maas
972-985-4012 (843) 272-4653
dave@bakbattery.com matt@haydenir.com
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China Bak Battery Announces Record Revenues for
the First Quarter of 2005
SHENZHEN, China & DALLAS - May 16, 2005 - China Bak Battery (OTC BB: CBBT), the
largest provider of replacement Lithium Ion (Li-ion) batteries in China and the
seventh largest manufacturer in the world, today announced financial results for
the first quarter ended March 31, 2005.
Financial Results
For the first quarter, the Company reported record revenue of $25.9 million, an
increase of 59.9 percent compared to the $16.2 million reported for the first
quarter last year. Cost of goods sold was $19.7 million, an increase of 60.6
percent compared to the $12.3 million reported for the first quarter last year,
resulting in gross profits of $6.2 million, or 23.8 percent of sales, compared
to gross profit of $3.9 million, or 25.4 percent of sales for the first quarter
last year. Total expenses were $2.8 million, an increase of 13.0 percent
compared to the $2.5 million for the first quarter last year. Income from
operations for the quarter was $3.4 million, an increase of 138.4 percent
compared to the $1.4 million reported for the first quarter last year. Net
income for the quarter was $2.6 million, or $0.07 per share, compared to net
income of $1.2 million, or $0.04 per share for the first quarter last year.
Xiangqian Li, the Company's Chief Executive Officer, commented, "We are very
pleased with the company's progress on all fronts. We have seen growth in orders
from both new and existing customers, and operating expenses increased only
slightly while sales were significantly up. While currently operating near full
capacity, we expect to open the next expansion to our production facility this
month which will enable us to effectively increase our annual capacity by 70
percent. As a result, we expect continued sequential revenue improvements during
the remainder of the year."
About BAK China Battery
China BAK Battery, Inc. is a commercial manufacturer of standard and customized
Lithium Ion (Li-ion) rechargeable batteries for use in various portable
electronic applications, including cellular phones, MP3 players, laptop
computers, electric bicycles, digital cameras, video camcorders, and general
industrial applications. BAK is the largest Li-ion replacement battery
manufacturer in China and the seventh largest manufacturer in the world. BAK
operates a 62-acre, 1.9 million square foot manufacturing operation in Shenzen,
PRC.
Forward-Looking Statements
All "forward-looking statements" relating to the business of China BAK Battery,
Inc. and its subsidiary companies, which can be identified by the use of
forward-looking terminology such as "believes," "expects" or similar
expressions, involve known and unknown risks and uncertainties. China BAK
Battery, Inc. is under no obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements whether as a
result of new information, future events or otherwise.
Tables To Follow
CHINA BAK BATTERY, INC.
(Formerly known as Medina Coffee, Inc.) and Subsidiary
Consolidated Balance Sheets
As of March 31, 2005 and September 30, 2004
(Amounts Expressed in US Dollars)
(Unauidted)
Assets
------
March 31, September 30,
2005 2004
$ $
(Audited)
Current Assets
Cash 10,886,298 3,212,176
Cash -Restricted 10,555,838 7,120,069
Accounts Receivable, Net 30,717,771 20,999,561
Inventories 12,125,092 29,535,985
Prepaid Expenses 1,517,750 1,330,645
Notes Receivable 244,460 18,122
Accounts Receivable - Related Party 561,989 911,093
------------- -------------
Total Current 66,609,198 63,127,651
------------- -------------
Long-Term Assets
Property, Plant, & Equipment 22,602,319 19,875,583
Construction in Progress 31,811,026 23,656,190
Land Use Rights 4,029,038 4,029,038
Less Accumulated Depreciation (3,868,270) (2,370,774)
------------- -------------
Long-term Assets, Net 54,574,113 45,190,037
------------- -------------
Other Assets
Other Receivables 149,469 225,972
Intangible Assets, Net 50,056 58,362
------------- -------------
Total other 199,525 284,334
------------- -------------
Total Assets 121,382,836 108,602,022
============= =============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable 17,810,106 23,570,087
Bank Loans, Short Term 28,876,941 27,304,162
Short Term Loans -- 1,812,316
Notes Payable, Other 25,222,575 20,772,559
Land Use Rights Payable 3,751,028 3,750,756
Construction Costs Payable 2,549,304 6,347,846
Customer Deposits 208,450 369,390
Accrued Expenses 3,388,537 5,247,656
Other Liabilities 436,078 181,223
------------- -------------
Total Current 82,243,019 89,355,995
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Stockholders' Equity
Capital Stock-$.001 Par Value; 100,000,000 Shares 39,826 31,226
Authorized; 39,826,075 and 31,225,642 Shares Issued and outstanding
at March 31, 2005 and September 30, 2004, respectively
Additional Paid In Capital 27,572,874 12,052,845
Accumulated Comprehensive Income (Loss) (1,669) (144)
Reserves 2,323,673 1,724,246
Retained Earnings 9,205,113 5,437,854
------------- -------------
39,139,817 19,246,027
------------- -------------
Total Liabilities and Stockholders' Equity 121,382,836 108,602,022
============= =============
CHINA BAK BATTERY, INC.
(Formerly known as Medina Coffee, Inc.) and Subsidiary
Consolidated Statements of Operations
For The Three Months Ended March 31, 2005 and 2004
(Amounts Expressed in US Dollars)
(Unaudited)
2005 2004
$ $
Revenues, Net of Returns 25,878,407 16,166,081
Cost of Goods Sold 19,717,964 12,279,578
---------- ----------
Gross Profit 6,160,443 3,886,503
---------- ----------
Expenses:
Selling Expense 896,953 403,804
General and Administrative Expenses 688,599 1,433,426
Research and Development 165,770 114,498
Bad Debts Expense 294,252 119,881
Depreciation and Amortization 751,078 404,107
---------- ----------
Total Expenses 2,796,653 2,475,716
---------- ----------
Operating Income 3,363,790 1,410,787
Other Expense
Finance Costs 572,064 107,308
Other Expense 8,759 5,559
---------- ----------
Net Income Before Provision for Income Taxes 2,782,967 1,297,920
Provision for Income Taxes 219,776 97,394
---------- ----------
Net Income 2,563,191 1,200,526
========== ==========
Net Income Per Share - Basic and Diluted 0.07 0.04
========== ==========
Weighted Average Shares Outstanding 38,010,428 31,225,664
========== ==========
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