Exhibit 99.1
China Bak Battery, Inc.
Company Contact: Investor Relations Contact:
Jim Groh Matt Hayden/Brett Maas
(843) 342-7809 (843) 272-4653
jim@bakbattery.com matt@haydenir.com
China BAK Battery Announces Preliminary
Fiscal 2005 Third Quarter Results
SHENZHEN, China & DALLAS - August 10, 2005 - China BAK Battery, Inc. (OTC BB:
CBBT), one of the largest providers of replacement Lithium Ion (Li-ion)
batteries in China and one of the largest manufacturers in the world, today
announced preliminary financial results for the third quarter and nine-month
periods ended June 30, 2005. The Company anticipates announcing its final
results for the fiscal 2005 third quarter by August 15, 2005.
Financial Results
For the third quarter, management expects to report revenue of approximately
$24.2 million. Net income for the quarter is expected to be approximately $3.4
million, or $0.09 per diluted share. For the first nine months ended June 30,
2005, the Company expects to report revenue of approximately $75.2 million. Net
income for the nine-month period is expected to be approximately $7.7 million,
or $0.23 per diluted share. These results are preliminary and actual results
could vary when the Company reports its final results for the third quarter.
Xiangqian Li, the Company's Chief Executive Officer, commented, "We have shown
increases in revenues and improved gross profit margins, resulting in
significant improvements in net income. Our growth was primarily a result of an
improved product mix with increased sales of higher margin products to both new
and existing customers. We also made substantial progress in our strategy to
diversify into Lithium Ion technology for both OEM and replacement applications.
We are actively pursuing several prospective customers which will leverage our
low-cost manufacturing infrastructure to provide a significant value-add for
their businesses. Management is confirming its net income guidance of
approximately $12 million for the 2005 fiscal year, which ends September 30."
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. The Company is one of the largest Li-ion replacement
battery manufacturers in China and one of the largest manufacturers in the
world. The Company operates a 62-acre, 1.9 million square foot manufacturing
operation in Shenzen, PRC.
Forward-Looking Statements
This press release contains certain statements that may include "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. All
statements, other than statements of historical facts, included herein are
"forward-looking statements." Included among "forward-looking statements" are,
among other things statements regarding net income guidance for the 2005 fiscal
year, statements regarding China BAK Battery's business strategy, plans and
objectives, including statements regarding its strategy to diversify into
Lithium Ion technology for both OEM and replacement applications and pursuit of
prospective customers, and statements about non-historical information. These
forward-looking statements are often identified by the use of terms and phrases
such as "expect," "estimate," "project," "plan," "believe," "achievable,"
"anticipate" and similar terms and phrases. Although China BAK Battery, Inc.
believes that the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. The Company actual net income for the
2005 fiscal year may not be the same as its income guidance, the Company's
strategy to diversify into Lithium Ion technology for both OEM and replacement
applications may not achieve the expected result and there can be no assurance
that the Company will be successful in securing any prospective customer it is
currently pursuing. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
China BAK Battery, Inc.'s actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in China BAK Battery, Inc.'s periodic reports
that are filed with and available from the Securities and Exchange Commission.
All forward-looking statements attributable to China BAK Battery, Inc. or
persons acting on its behalf are expressly qualified in their entirety by these
factors. Other than as required under the securities laws, China BAK Battery,
Inc. does not assume a duty to update these forward-looking statements.
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