SHENZHEN, China, Jan. 10 /Xinhua-PRNewswire/ -- China BAK Battery, Inc.
("China BAK", or "BAK") (Nasdaq: CBAK), today announced plans to construct a
new facility that will focus on product development and manufacture of an
advanced lithium ion battery cell product line. The facility will be owned and
operated by BAK's new indirect wholly-owned Chinese subsidiary.
The new subsidiary, BAK International (Tianjin) Co., Ltd., will be located
in Tianjin Beichen Hi-Tech Industrial Park. Tianjin is a coastal city in
northeast China. This prestigious industrial park is a business development
project of the State Council of The People's Republic of China whereby the
Council provides government policy incentives to private industry. BAK
believes that the location offers several advantages including ample human
resources, excellent shipping and logistics, proximity to customers and
vendors and available manufacturing support resources. The project also
affords China BAK certain tax abatements.
The new battery cells will provide higher energy density and power, longer
life cycle and shorter charge times as compared to other types of lithium-
based batteries. The initial customer development programs will focus on
applications in Light Electric Vehicles, or LEVs, and Uninterruptible Power
Supply. Among the most prevalent products in the LEV space is the electric
bicycle. The planned products from this new facility also have potential
application in hybrid electric vehicles.
The timing of the construction of the new facility will be dependent on
the progress of our customer development programs. Historically, China BAK has
endeavored to add manufacturing infrastructure as sales opportunities become
clearly defined. The earliest potential shipment from the newly planned
facility is fiscal 2008, and will become more certain as business development
activities, and construction of the Tianjin facility progress.
China BAK has successfully commercialized new product lines due in large
part, it believes, to its R&D capabilities and experienced sales organization
focused on new business development. In fiscal 2006, China BAK introduced a
new line cylindrical battery cells for use in laptop computers and scaled its
lithium polymer sales for mobile electrical devices significantly. BAK
believes it is now in an ideal position to expand its product lines into these
other emerging applications in order to capitalize on additional market
opportunities.
"The formation of the BAK International (Tianjin) Co., Ltd. reflects the
continuing evolution and development of China BAK's battery cell business, and
we look forward to introducing many more high quality and innovative products
in the future," commented Xiangqian Li, the President and Chief Executive
Officer of China BAK. "Our new line of battery cells, which we expect to
manufacture once our new Tianjin facility is completed, is a logical extension
of our current product mix, it expands the market applications we serve and
should strengthen our position as the worldwide market leader in lithium-based
batteries cells."
About China BAK Battery Inc.
China BAK Battery, Inc. is one of the largest manufacturers of lithium-
based battery cells in China and in the world, as measured by production
output. It produces battery cells that are the principal component of
rechargeable batteries commonly used in cellular phones, notebook computers,
cordless power tools and portable consumer electronics, such as digital media
devices, portable media players, portable audio players, portable gaming
devices and personal digital assistants, or PDAs. China BAK's 1.9 million
square feet facilities are located in Shenzhen, PRC, and have been recently
expanded to produce new products. China BAK is the largest manufacturer of
lithium-ion battery cells for China's cellular phone replacement battery
market.
Safe Harbor Statement
This press release contains forward-looking statements, which are subject
to change. The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. 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 which could
cause actual results to differ. These factors include but are not limited to:
risks related to China BAK's business and risks related to operating in China.
Please refer to China BAK's Annual Report on Form 10-K for the fiscal year
ended September 30, 2006, filed with the U.S. Securities and Exchange
Commission, for specific details on risk factors. Given these risks and
uncertainties, you are cautioned not to place undue reliance on forward-
looking statements. China BAK's actual results could differ materially from
those contained in the forward-looking statements. China BAK undertakes no
obligation to revise or update its forward-looking statements in order to
reflect events or circumstances that may arise after the date of this release.
For more information, please contact:
Company Contact:
Jim Groh
Tel: +1-843-277-0024
Email: jim@BAKbattery.com
Or
Investor Relations Contacts:
Crocker Coulson
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Elaine Ketchmere
Tel: +1-310-231-8600 ext. 119
Email: elaine.Ketchmere@ccgir.com
