EXHIBIT 10.16


Summary of Loan  Agreement by and between  Shenzhen BAK Battery Co.,  Ltd.  (the
"Company") and Shenzhen Branch,  Industrial Bank ("Industrial Bank") dated as of
March 11, 2004.

         The contract  number for this agreement is Xingyin Shen Yewu Sanjian Zi
2004 No. 003.  The contract  term is March 11, 2004 to March 11,  2005,  and the
amount of credit to be extended by Industrial  Bank is RMB  20,000,000  Yuan. In
the event of breach of contract,  the agreement  provides for the  correction of
such breach of contract within a certain period of time,  preventing the Company
from drawing on the loan,  termination of the agreement,  the payment of overdue
and compound interest and the payment of litigation fees.