-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UqvIh1NVL7YXH613W2LUMuvY3naolqM/axZvyqzIzIjnYVRgwdhrlbWetWFbs2Jt tQ9hhfMjTtvfpUetXSIVvw== 0001010549-06-000001.txt : 20060103 0001010549-06-000001.hdr.sgml : 20060102 20060103161706 ACCESSION NUMBER: 0001010549-06-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060102 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060103 DATE AS OF CHANGE: 20060103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHINA BAK BATTERY INC CENTRAL INDEX KEY: 0001117171 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 880442833 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49712 FILM NUMBER: 06502713 BUSINESS ADDRESS: STREET 1: BAK INDUSTRIAL PARK, NO. 1 BAK STREET STREET 2: KUICHONG TOWN, LONGGANG DISTRICT CITY: SHENZHEN PEOPLE STATE: F4 ZIP: 518119 BUSINESS PHONE: 86-755-8977-0093 MAIL ADDRESS: STREET 1: BAK INDUSTRIAL PARK, NO. 1 BAK STREET STREET 2: KUICHONG TOWN, LONGGANG DISTRICT CITY: SHENZHEN PEOPLE STATE: F4 ZIP: 518119 FORMER COMPANY: FORMER CONFORMED NAME: MEDINA COFFEE INC DATE OF NAME CHANGE: 20000626 8-K 1 bak8k123005.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 2, 2006 China BAK Battery, Inc. (Exact Name of Registrant as Specified in Charter) Nevada 000-49712 88-0442833 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) BAK Indistrial Park, No. 1 BAK Street 518119 Kuichong Town, Longgang District (Zip Code) Shenzhen, Peoples Republic of China (Address of Principal Executive Offices) Registrant's telephone number, including area code: (86-755) 8977-0093 Not applicable. (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On January 2, 2006, China BAK Battery, Inc. announced its financial results for the fiscal year ended September 30, 2005. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K pursuant to Item 2.02. The information in this Form 8-K (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. Item 9.01. Financial Statements and Exhibits (c) Exhibits The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed: 99.1 Press Release issued by China BAK Battery, Inc. on January 2, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CHINA BAK BATTERY, INC. Date: January 2, 2006 By: /s/ Yongbin Han ----------------------- Yongbin Han Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ------------ -------------------------------------------------------------- 99.1 Press Release issued by China BAK Battery, Inc. on January 2, 2006. EX-99.1 2 bak8kex991123005.txt PRESS RELEASE DATED DECEMBER 30, 2005 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 Reports 60% Increase in Revenue and 83% Increase in Net Income for Fiscal 2005 Fourth-Quarter Revenue Increases 59%; Net Income Increases 189%. SHENZHEN, China & DALLAS - December 30, 2005 - China BAK Battery, Inc. (OTC BB: CBBT), one of the largest manufacturers of Lithium Ion (Li-ion) batteries, today announced financial results for the fourth quarter and fiscal year ended September 30, 2005. Financial Results For the fourth quarter of its fiscal year ended September 30, 2005, the Company reported revenue of $26.8 million, an increase of 59.2 percent compared to the $16.8 million reported for the fourth quarter of the 2004 fiscal year. Gross profits for the fourth quarter of the 2005 fiscal year were $8.8 million, or 32.8 percent of sales, compared to gross profit of $3.6 million, or 21.6 percent of sales for the fourth quarter of the 2004 fiscal year. Total operating expenses for the fourth quarter of the 2005 fiscal year were $3.2 million, or 11.9 percent of sales, compared to $1.4 million, or 8.2 percent of sales for the fourth quarter of the 2004 fiscal year. Net income for the fourth quarter of fiscal 2005 increased 188.8 percent to $4.6 million, or $0.11 per basic and diluted share, compared to net income of $1.6 million, or $0.05 per basic and diluted share, for the fourth quarter of fiscal 2004. The Company used 42.2 million diluted shares in the calculation for the fourth quarter of fiscal 2005 compared to 31.2 million diluted shares in the fourth quarter of fiscal 2004. For the full fiscal year ended September 30, 2005, the Company reported revenue of $101.9 million, an increase of 59.9 percent compared to the $63.7 million reported for the 2004 fiscal year. Gross profits were $25.7 million, or 25.2 percent of sales, for the fiscal year ended September 30, 2005 compared to $13.8 million, or 21.7 percent of sales, for fiscal 2004. Total operating expenses for the 2005 fiscal year were $10.4 million, or 10.2 percent of sales, compared to $5.7 million, or 8.9 percent of sales for the 2004 fiscal year. Net income for the 2005 fiscal year was $12.4 million, or $0.32 per basic and fully diluted share, an increase of 83.4 percent compared to net income of $6.7 million, or $0.22 per share reported in the 2004 fiscal year. Xiangqian Li, the Company's Chief Executive Officer, commented, "This was an outstanding year for China BAK Battery, as we exceeded $100 million in annual revenues for the first time with each quarter's revenues surpassing the prior quarter. We expanded our market opportunity by beginning lithium polymer battery manufacturing and grew our manufacturing capacity to meet growing demand for our products. The result of our growth initiatives in terms of products, market share growth and channel expansion combined with continued growth in our existing markets contributed to our increase in revenues, gross profit margin and the over 80 percent increase in net income for the 2005 fiscal year versus the 2004 fiscal year." Management intends to conduct a conference call within the next month to update investors on the Company's progress and near-term strategy. The Company's cash balances increased during fiscal 2005, with cash and restricted cash totaling $52.4 million as of September 30, 2005 compared to $10.3 million as of September 30, 2004. The Company completed the 2005 fiscal year with a current ratio of 1.2 to 1 and $20 million in working capital. As a result of sales of common stock in private placements and the Company's retention of earnings, stockholder's equity increased 357 percent to $88.0 million at the end of fiscal 2005 compared to $19.2 million at the end of fiscal 2004. 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 one of the largest Li-ion replacement battery manufacturers in the world. BAK 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 fact included herein are "forward-looking statements" including statements regarding China BAK Battery, Inc. and its subsidiary companies business strategy, plans and objective and statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. 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. 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. Tables To Follow
CHINA BAK BATTERY, INC. Consolidated Balance Sheets As of September 30, 2005 and 2004 (Amounts expressed in US Dollars, except number of shares) September 30, September 30, 2005 2004 $ $ Assets Current Assets Cash 33,055,784 3,212,176 Cash - Restricted 19,392,280 7,120,069 Accounts Receivable, Net 43,379,754 20,999,561 Inventories 21,696,226 29,535,985 Prepaid Expenses 1,448,119 1,330,645 Notes Receivable 484,028 18,122 Accounts Receivable - Related Party 271,873 911,093 ------------- ------------- Total Current Assets 119,728,064 63,127,651 ------------- ------------- Long-Term Assets Property, Plant and Equipment 52,160,610 19,875,583 Construction in Progress 17,804,181 23,656,190 Land Use Rights 3,246,791 4,029,038 Less Accumulated Depreciation (5,873,954) (2,370,774) ------------- ------------- Long-Term Assets, Net 67,337,628 45,190,037 ------------- ------------- Other Assets Other Assets 566,703 225,972 Intangible Assets, Net 53,379 58,362 ------------- ------------- Total Other Assets 620,082 284,334 ------------- ------------- Total Assets 187,685,774 108,602,022 ============= ============= Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 17,836,561 23,570,087 Bank Loans, Short Term 39,545,230 27,304,162 Short-Term Loans -- 1,812,316 Notes Payable 29,577,308 20,772,559 Land Use Rights Payable 2,962,560 3,750,756 Construction Costs Payable 5,241,883 6,347,846 Customer Deposits 655,065 369,390 Accrued Expenses 3,196,594 5,247,656 Other Liabilities 712,506 181,223 ------------- ------------- Total Current Liabilities 99,727,707 89,355,995 ------------- ------------- CONTINGENCIES AND COMMITMENTS (NOTE 13) Stockholders' Equity Common Stock - $.001 Par Value; 100,000,000 Shares Authorized; 48,878,396 and 31,225,642 shares issued and outstanding at September 30, 2005 and 2004, respectively 48,878 31,226 Additional Paid In Capital 68,012,808 12,052,845 Accumulated Comprehensive Income (Loss) 362,728 (144) Reserves 3,688,989 1,724,246 Retained Earnings 15,844,664 5,437,854 ------------- ------------- Total Stockholders' Equity 87,958,067 19,246,027 ------------- ------------- Total Liabilities and Stockholders' Equity 187,685,774 108,602,022 ============= =============
CHINA BAK BATTERY, INC. Consolidated Statements of Operations For the Years Ended September 30, 2005 and 2004 (Amounts expressed in US Dollars, except number of shares) 2005 2004 $ $ Revenues, Net of Returns 101,921,583 63,746,202 Cost of Goods Sold 76,234,834 49,921,818 ----------- ----------- Gross Profit 25,686,749 13,824,384 ----------- ----------- Expenses: Selling 4,023,582 1,877,878 General and Administrative 5,027,154 3,141,125 Research and Development 541,735 328,779 Bad Debts Expense 769,807 326,990 ----------- ----------- Total Expenses 10,362,278 5,674,772 ----------- ----------- Operating Income 15,324,471 8,149,612 Other Expenses Finance Costs 2,395,137 1,006,056 Other Expenses 28,117 2,916 ----------- ----------- Net Income Before Provision for Income Tax 12,901,217 7,140,640 ----------- ----------- Provision for Income Tax 526,840 394,333 ----------- ----------- Net Income 12,374,377 6,746,307 =========== =========== Net Income Per Common and Common Equivalent Share: Basic 0.32 0.22 =========== =========== Diluted 0.32 0.22 =========== =========== Weighted Average Shares Outstanding: Basic 38,288,874 31,225,642 =========== =========== Diluted 38,405,401 31,225,642 =========== =========== CHINA BAK BATTERY, INC. Consolidated Statements of Operations For the Three Months Ended September 30, 2005 and 2004 (Amounts expressed in US Dollars, except number of shares) 2005 2004 $ $ ----------- ----------- Revenues, Net of Returns 26,762,368 16,811,746 Cost of Goods Sold 17,993,367 13,178,237 ----------- ----------- Gross Profit 8,769,001 3,633,509 ----------- ----------- Expenses (Reversals): Selling 1,097,080 560,667 General and Administrative 2,042,418 278,953 Research and Development 227,109 (16,692) Bad Debts Expense (Reversal) (174,288) 554,141 ----------- ----------- Total Expenses 3,192,319 1,377,069 ----------- ----------- Operating Income 5,576,682 2,256,440 Other Expenses (Income): Finance Costs 1,062,019 483,427 Other Income (5,507) (2,323) ----------- ----------- Net Income Before Provision for Income Tax 4,520,170 1,775,336 Provision for (Reversal of) Income Tax (123,674) 167,490 ----------- ----------- Net Income 4,643,844 1,607,846 =========== =========== Net Income Per Common and Common Equivalent Share: Basic 0.11 0.05 =========== =========== Diluted 0.11 0.05 =========== =========== Weighted Average Shares Outstanding: Basic 42,116,280 31,225,642 =========== =========== Diluted 42,247,042 31,225,642 =========== =========== ### -----END PRIVACY-ENHANCED MESSAGE-----