10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10−Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2014

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission File Number: 001-32898

CHINA BAK BATTERY, INC.
(Exact Name of Registrant as Specified in Its Charter)

Nevada	88-0442833
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

BAK Industrial Park
Meigui Street,
Huayuankou Economic Zone
Dalian 116422
People’s Republic of China
(Address of principal executive offices, Zip Code)

(86-411) 6251-0619
(Registrant’s telephone number, including area code)

__________________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]      No [_]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]      No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [_]	Accelerated filer [_]
Non-accelerated filer [_] (Do not check if a smaller reporting company)	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [_]      No [X]

The number of shares outstanding of each of the issuer’s classes of common stock, as of August 18, 2014 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	12,619,597

CHINA BAK BATTERY, INC.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION
Item 1.	Financial Statements.	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	1
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	13
Item 4.	Controls and Procedures.	13
PART II OTHER INFORMATION
Item 1.	Legal Proceedings.	15
Item 1A.	Risk Factors.	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	16
Item 3.	Defaults Upon Senior Securities.	16
Item 4.	Mine Safety Disclosures.	16
Item 5.	Other Information.	16
Item 6.	Exhibits.	16

PART I
FINANCIAL INFORMATION

Item 1. Financial Statements.

CHINA BAK BATTERY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED JUNE 30, 2014 AND 2013

Contents	Page(s)
Condensed Consolidated Balance Sheets as of September 30, 2013 and June 30, 2014 (unaudited)	F-2
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended June 30, 2014 and 2013 (unaudited)	F-3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended June 30, 2014 and 2013 (unaudited)	F-4
Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2014 and 2013(unaudited)	F-5
Notes to the Condensed Consolidated Financial Statements (unaudited)	F-6-F-29

F-1

China BAK Battery, Inc. and subsidiaries

Condensed consolidated balance sheets

As of September 30, 2013 and June 30, 2014

(In US$)

			September 30,			June 30,
	Note		2013			2014
						(Unaudited)
Assets
Current assets
Cash and cash equivalents		$	13,998,626		$	272,115
Pledged deposits	2		8,137,687			-
Trade accounts receivable, net	3		49,875,701			176,439
Inventories	4		57,275,187			806,699
Prepayments and other receivables	5(i)		17,728,605			194,004
Receivable from a former subsidiary	5(ii)		-			438,809
Prepaid land use right, current portion	7		707,810			-
Assets of discontinued operations	1		65,763			-
Total current assets			147,789,379			1,888,066
Property, plant and equipment, net	6		128,237,434			12,078,861
Prepaid land use right- non current	7		20,732,482			-
Intangible assets, net	8		730,884			-
Noncurrent assets of discontinued operations	1		43,115,001			-
Total assets		$	340,605,180		$	13,966,927
Liabilities
Current liabilities
Short-term bank loans	9	$	151,404,677		$	-
Accounts and bills payable			124,507,846			81,946
Other short-term loans	10(i)		28,282,322			-
Accrued expenses and other payables	10(ii)		23,155,435			9,230,115
Deferred government grants, current	12		24,525,004			24,176,781
Total current liabilities			351,875,284			33,488,842
Deferred revenue - non current	11		7,560,386			-
Deferred government grants, noncurrent	12		22,946,463			-
Noncurrent liabilities of discontinued operations	1		715,398			-
Deferred tax liabilities	13(b)		779,814			-
Total liabilities			383,877,345			33,488,842
Commitments and contingencies	17
Shareholders’ equity
Common stock $0.001 par value;20,000,000 authorized; 12,763,803 issued as of September 30, 2013 and June 30, 2014, respectively; 12,619,597 outstanding as of September 30, 2013 and June 30, 2014, respectively			12,763			12,763
Donated shares			14,101,689			14,101,689
Additional paid-in capital			127,349,617			127,437,223
Statutory reserves			7,786,157			-
Accumulated deficit			(226,366,718	)		(157,012,118	)
Accumulated other comprehensive income			37,910,937			5,138
			(39,205,555	)		(15,455,305	)
Less: Treasury shares			(4,066,610	)		(4,066,610	)
Total shareholders’ equity			(43,272,165	)		(19,521,915	)
Total liabilities and shareholders’ equity		$	340,605,180		$	13,966,927

F-2

See accompanying notes to the condensed consolidated financial statements.

China BAK Battery, Inc. and subsidiaries

Condensed consolidated statements of operations and comprehensive loss

For the three and nine months ended June 30, 2013 and 2014

(Unaudited)

(In US$ except for number of shares)

		Three months ended June 30,						Nine months ended June 30,
		2013			2014			2013			2014
Net revenues	$	45,598,726		$	47,994,846		$	153,397,578		$	122,039,250
Cost of revenues		(46,986,217	)		(43,675,974	)		(162,576,588	)		(112,558,168	)
Gross (loss) profit		(1,387,491	)		4,318,872			(9,179,010	)		9,481,082
Operating expenses:
Research and development expenses		(1,135,371	)		(1,469,263	)		(3,995,011	)		(3,981,130	)
Sales and marketing expenses		(1,710,001	)		(1,807,268	)		(5,812,595	)		(4,504,284	)
General and administrative expenses		(4,654,653	)		(3,920,264	)		(13,743,951	)		(11,912,505	)
Recovery of (provision for) doubtful accounts		4,387,805			(729,415	)		5,087,650			639,390
Impairment charge on property, plant and equipment		(3,207,649	)		-			(14,603,998	)		-
Total operating expenses		(6,319,869	)		(7,926,210	)		(33,067,905	)		(19,758,529	)
Operating loss		(7,707,360	)		(3,607,338	)		(42,246,915	)		(10,277,447	)
Finance costs, net		(3,454,229	)		(6,193,187	)		(7,893,537	)		(16,785,103	)
Recovery of loss (loss) arising from loan guarantees		808,950			-			(2,002,089	)		-
Government grant income		112,796			22,413			131,073			74,532
Other income (expense)		27,167			(51,318	)		(29,063	)		636,343
Loss before income tax and continuing operations		(10,212,676	)		(9,829,430	)		(52,040,531	)		(26,351,675	)
Income tax expenses		(58,005	)		-			(6,084,277	)		(16,474	)
Net loss from continuing operations, net of tax		(10,270,681	)		(9,829,430	)		(58,124,808	)		(26,368,149	)
Income from discontinued operations, net of tax		-			46,936,251			-			48,928,143
Net (loss) profit	$	(10,270,681	)	$	37,106,821		$	(58,124,808	)	$	22,559,994
Other comprehensive income
Release of foreign currency translation adjustment upon disposal of subsidiaries		-			(39,008,449	)		-			(39,008,449	)
Foreign currency translation adjustment		871,823			(182,152	)		2,235,990			1,102,650
		871,823			(39,190,601	)		2,235,990			(37,905,799	)
Comprehensive loss	$	(9,398,858	)	$	(2,083,780	)	$	(55,888,818	)	$	(15,345,805	)
(Loss) earnings per share – Basic and diluted
- From continuing operations	$	(0.81	)	$	(0.78	)	$	(4.61	)	$	(2.09	)
- From discontinued operations		-			3.72			-			3.88
(Loss) earnings per share – Basic and diluted	$	(0.81	)	$	2.94		$	(4.61	)	$	1.79
Weighted average number of shares of common stock:
- Basic		12,619,597			12,619,597			12,619,597			12,619,597
- Diluted		12,619,597			12,619,597			12,619,597			12,619,597

See accompanying notes to the condensed consolidated financial statements.

F-3

China BAK Battery, Inc. and subsidiaries

Condensed consolidated statements of changes in shareholders’ equity

For the nine months ended June 30, 2013 and 2014

(Unaudited)

(In US$ except for number of shares)

															Accumulated
	Common stock						Additional								other		Treasury shares						Total
	Number				Donated		paid-in		Statutory			Accumulated			comprehensive		Number						shareholders’
	of shares		Amount		shares		capital		reserves			deficit			income		of shares			Amount			equity
Balance as of October 1, 2012	12,763,269	$	12,763	$	14,101,689	$	126,990,611	$	7,786,157		$	(110,358,489	)	$	37,329,450		(144,206	)	$	(4,066,610	)	$	71,795,571
Net loss	-		-		-		-		-			(58,124,808	)		-		-			-			(58,124,808	)
Share-based compensation for employee stock awards	-		-		-		297,729		-			-			-		-			-			297,729
Rounding difference on reverse stock split	534		-		-		-		-			-			-		-			-			-
Foreign currency translation adjustment	-		-		-		-		-			-			2,235,990		-			-			2,235,990
Balance as of June 30, 2013	12,763,803	$	12,763	$	14,101,689	$	127,288,340	$	7,786,157		$	(168,483,297	)	$	39,565,440		(144,206	)	$	(4,066,610	)	$	16,204,482
Balance as of October 1, 2013	12,763,803	$	12,763	$	14,101,689	$	127,349,617	$	7,786,157		$	(226,366,718	)	$	37,910,937		(144,206	)	$	(4,066,610	)	$	(43,272,165	)
Net profit	-		-		-		-		-			22,559,994			-		-			-			22,559,994
Disposal of subsidiaries	-		-		-		-		(7,786,157	)		46,794,606			(39,008,449	)							-
Share-based compensation for employee stock awards	-		-		-		87,606		-			-			-		-			-			87,606
Foreign currency translation adjustment	-		-		-		-		-			-			1,102,650		-			-			1,102,650
Balance as of June 30, 2014	12,763,803	$	12,763	$	14,101,689	$	127,437,223	$	-		$	(157,012,118	)	$	5,138		(144,206	)	$	(4,066,610	)	$	(19,521,915	)

See accompanying notes to the condensed consolidated financial statements.

F-4

China BAK Battery, Inc. and subsidiaries

Condensed consolidated statements of cash flows

For the nine months ended June 30, 2013 and 2014

(Unaudited)(In US$)

		Nine months ended June 30,
		2013			2014
Cash flow from operating activities
Net (loss) profit	$	(58,124,808	)	$	22,559,994
Income from discontinued operations, net of tax		-			(48,928,143	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		15,059,133			8,251,510
Reversal of doubtful debts		(5,087,650	)		(639,390	)
Write-down of inventories		38,084,761			8,752,543
Impairment charge		14,603,998			-
Loss arising from loan guarantee		2,002,089			-
Share-based compensation		297,729			87,606
Deferred income taxes		5,755,399			-
Exchange difference		1,063,155			375,127
Changes in operating assets and liabilities:
Trade accounts receivable		31,045,373			(13,992,484	)
Inventories		(32,050,027	)		7,163,543
Prepayments and other receivables		1,257,546			(8,768,517	)
Accounts and bills payable		(1,122,102	)		(22,626,190	)
Accrued expenses and other payables		30,622,819			24,964,173
Deferred revenue		(256,149	)		(245,887	)
Net cash provided by (used in) continuing operations		43,151,266			(23,046,115	)
Net cash provided by discontinued operations		-			3,615,638
Net cash provided by (used in) operating activities		43,151,266			(19,430,477	)
Cash flow from investing activities
Disposal of subsidiaries, net of cash disposed of $4,163,555		-			(4,163,555	)
Decrease (increase) in pledged deposits		(7,592,656	)		7,990,705
Payment of guaranteed loans		(7,485,991	)		-
Repayment of guaranteed loans		5,483,903			-
Purchases of property, plant and equipment		(25,379,443	)		(8,456,929	)
Purchases of intangible assets		(370,066	)		(15,825	)
Net cash (used in) provided by continuing operations		(35,344,253	)		(4,645,604	)
Net cash (used in) provided by discontinued operations		(6,657,910	)		(3,296,571	)
Net cash used in investing activities		(42,002,163	)		(7,942,175	)
Cash flow from financing activities
Proceeds from borrowings		148,398,191			91,614,488
Repayment of borrowings		(165,022,657	)		(178,695,284	)
Borrowings from related parties		8,546,133			-
Repayment to related parties		(8,747,771	)		-
Borrowings from unrelated parties		8,802,650			121,232,353
Repayment of borrowings from unrelated parties		-			(20,554,868	)
Proceeds from long-term loans		7,537,453			-
Net cash (used in) provided by financing activities		(486,001	)		13,596,689
Effect of exchange rate changes on cash and cash equivalents		467,153			49,452
Net increase (decrease) in cash and cash equivalents		1,130,255			(13,726,511	)
Cash and cash equivalents at the beginning of period		9,271,633			13,998,626
Cash and cash equivalents at the end of period	$	10,401,888		$	272,115
Supplemental disclosure of cash flow information:
Cash received during the period for:
Bills receivable discounted to banks	$	38,072,936		$	913,517
Cash paid during the period for:
Income taxes	$	-		$	-
Interest, net of amounts capitalized	$	7,527,458		$	8,688,340
Non-cash transactions
Disposal of subsidiaries (Note 1)

See accompanying notes to the condensed consolidated financial statements.

F-5

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014

(In US$ except for number of shares)

(Unaudited)

1. Principal Activities, Basis of Presentation and Organization

Principal Activities

China BAK Battery, Inc. (“China BAK”) is a corporation formed in the State of Nevada on October 4, 1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to China BAK Battery, Inc. on February 14, 2005. China BAK and its subsidiaries (hereinafter, collectively referred to as the “Company”) are principally engaged in the manufacture, commercialization and distribution of high power lithium ion (known as "Li-ion" or "Li-ion cell") rechargeable batteries. Prior to the disposal of BAK International and its subsidiaries (see below), the batteries produced by the Company were for use in cellular telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power tools, digital cameras, video camcorders, MP3 players, electric bicycle, hybrid/electric vehicles, and general industrial applications. After the disposal of BAK International and its subsidiaries, the Company will focus on the manufacture, commercialization and distribution of high power lithium ion rechargeable batteries for use in electric vehicles, light electric vehicles, electric tools, energy storage, UPS and other high power industrial applications. The shares of the Company traded in the over-the-counter market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common stock on The NASDAQ Global Market, and trading commenced that same date under the symbol "CBAK".

Basis of Presentation and Organization

After the disposal of the BAK International and its subsidiaries effective on June 30, 2014, the Company’s subsidiaries consisted of: i) China BAK Asia Holdings Limited(“BAK Asia”), a wholly owned limited liability company incorporated in Hong Kong on July 9, 2013; ii) Dalian BAK Trading Co., Ltd. (“BAK Dalian”), a wholly owned limited company established on August 14, 2013 in the PRC; and iii) Dalian BAK Power Battery Co., Ltd. (“Dalian BAK Power”), a wholly owned limited liability company established on December 27, 2013 in the PRC.

Dalian BAK Power was established on December 27, 2013 as a wholly owned subsidiary of BAK Asia with a registered capital of $30,000,000 (Note 17(i)). Pursuant to Dalian BAK Power’s articles of association and relevant PRC regulations, BAK Asia was required to contribute $6,000,000 to Dalian BAK Power as capital (representing 20% of Dalian BAK Power’s registered capital) on or before December 27, 2015. Up to the date of this report, the Company has contributed $5,000,000 to Dalian BAK Power through an injection of a series of patents.

On November 6, 2004, BAK International, a non-operating holding company that had substantially the same shareholders as Shenzhen BAK, entered into a share swap transaction with the shareholders of Shenzhen BAK for the purpose of the subsequent reverse acquisition of the Company. The share swap transaction between BAK International and the shareholders of Shenzhen BAK was accounted for as a reverse acquisition of Shenzhen BAK with no adjustment to the historical basis of the assets and liabilities of Shenzhen BAK.

On January 20, 2005, the Company completed a share swap transaction with the shareholders of BAK International. The share swap transaction, also referred to as the “reverse acquisition” of the Company, was consummated under Nevada law pursuant to the terms of a Securities Exchange Agreement entered by and among China BAK, BAK International and the shareholders of BAK International on January 20, 2005.The share swap transaction has been accounted for as a capital-raising transaction of the Company whereby the historical financial statements and operations of Shenzhen BAK are consolidated using historical carrying amounts.

Also on January 20, 2005, immediately prior to consummating the share swap transaction, BAK International executed a private placement of its common stock with unrelated investors whereby it issued an aggregate of 1,720,087 shares of common stock for gross proceeds of $17,000,000. In conjunction with this financing, Mr. Xiangqian Li, the Chairman and Chief Executive Officer of the Company, agreed to place 435,910 shares of the Company’s common stock owned by him into an escrow account pursuant to an Escrow Agreement dated January 20, 2005 (the “Escrow Agreement”). Pursuant to the Escrow Agreement, 50% of the escrowed shares were to be released to the investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2005 was not at least $12,000,000, and the remaining 50% was to be released to investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2006 was not at least $27,000,000. If the audited net income of the Company for the fiscal years ended September 30, 2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Xiangqian Li in the amount of 50% upon reaching the 2005 target and the remaining 50% upon reaching the 2006 target.

F-6

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

1. Principal Activities, Basis of Presentation and Organization (Continued)

Basis of Presentation and Organization (Continued)

Under accounting principles generally accepted in the United States of America (“US GAAP”), escrow agreements such as the one established by Mr. Xiangqian Li generally constitute compensation if, following attainment of a performance threshold, shares are returned to a company officer. The Company determined that without consideration of the compensation charge, the performance thresholds for the year ended September 30, 2005 would be achieved. However, after consideration of a related compensation charge, the Company determined that such thresholds would not have been achieved. The Company also determined that, even without consideration of a compensation charge, the performance thresholds for the year ended September 30, 2006 would not be achieved.

While the 217,955 escrow shares relating to the 2005 performance threshold were previously released to Mr. Xiangqian Li, Mr. Xiangqian Li executed a further undertaking on August 21, 2006 to return those shares to the escrow agent for the distribution to the relevant investors. However, such shares were not returned to the escrow agent, but, pursuant to a Delivery of Make Good Shares, Settlement and Release Agreement between the Company, BAK International and Mr. Li entered into on October 22, 2007 (the “Li Settlement Agreement”), such shares were ultimately delivered to the Company as described below. Because the Company failed to satisfy the performance threshold for the fiscal year ended September 30, 2006, the remaining 217,955 escrow shares relating to the fiscal year 2006 performance threshold were released to the relevant investors. As Mr. Li has not retained any of the shares placed into escrow, and as the investors party to the Escrow Agreement are only shareholders of the Company and do not have and are not expected to have any other relationship to the Company, the Company has not recorded a compensation charge for the years ended September 30, 2005 and 2006.

At the time the escrow shares relating to the 2006 performance threshold were transferred to the investors in fiscal year 2007, the Company should have recognized a credit to donated shares and a debit to additional paid-in capital, both of which are elements of shareholders’ equity. This entry is not material because total ordinary shares issued and outstanding, total shareholders’ equity and total assets do not change; nor is there any impact on income or earnings per share. Therefore, previously filed consolidated financial statements for the fiscal year ended September 30, 2007 will not be restated. This share transfer has been reflected in these financial statements by reclassifying the balances of certain items as of October 1, 2007. The balances of donated shares and additional paid-in capital as of October 1, 2007 were credited and debited by $7,955,358 respectively, as set out in the consolidated statements of changes in shareholders’ equity.

In November 2007, Mr. Xiangqian Li delivered the 217,955 shares related to the 2005 performance threshold to BAK International pursuant to the Li Settlement Agreement; BAK International in turn delivered the shares to the Company. Such shares (other than those issued to investors pursuant to the 2008 Settlement Agreements, as described below) are now held by the Company. Upon receipt of these shares, the Company and BAK International released all claims and causes of action against Mr. Xiangqian Li regarding the shares, and Mr. Xiangqian Li released all claims and causes of action against the Company and BAK International regarding the shares. Under the terms of the Li Settlement Agreement, the Company commenced negotiations with the investors who participated in the Company’s January 2005 private placement in order to achieve a complete settlement of BAK International’s obligations (and the Company’s obligations to the extent it has any) under the applicable agreements with such investors.

Beginning on March 13, 2008, the Company has entered into settlement agreements (the “2008 Settlement Agreements”) with certain investors in the January 2005 private placement. Since the other investors have never submitted any claims regarding this matter, the Company did not reach any settlement with them.

Pursuant to the 2008 Settlement Agreements, the Company and the settling investors have agreed, without any admission of liability, to a settlement and mutual release from all claims relating to the January 2005 private placement, including all claims relating to the escrow shares related to the 2005 performance threshold that had been placed into escrow by Mr. Xiangqian Li, as well as all claims, including claims for liquidated damages relating to registration rights granted in connection with the January 2005 private placement. Under the 2008 Settlement Agreement, the Company has made settlement payments to each of the settling investors of the number of shares of the Company’s common stock equivalent to 50% of the number of the escrow shares related to the 2005 performance threshold these investors had claimed; aggregate settlement payments as of March 31, 2013 amounted to 73,749 shares. Share payments to date have been made in reliance upon the exemptions from registration provided by Section 4(2) and/or other applicable provisions of the Securities Act of 1933, as amended. In accordance with the 2008 Settlement Agreements, the Company filed a registration statement covering the resale of such shares which was declared effective by the SEC on June 26, 2008.

F-7

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

1. Principal Activities, Basis of Presentation and Organization (Continued)

Basis of Presentation and Organization (Continued)

Pursuant to the Li Settlement Agreement, the 2008 Settlement Agreements and upon the release of the 217,955 escrow shares relating to the fiscal year 2006 performance threshold to the relevant investors, neither Mr. Li or the Company have any obligations to the investors who participated in the Company’s January 2005 private placement relating to the escrow shares.

As of June 30, 2014, the Company has not received any claim from the other investors who have not been covered by the “2008 Settlement Agreements” in the January 2005 private placement.

As the Company has transferred the 217,955 shares related to the 2006 performance threshold to the relevant investors in fiscal year 2007 and the Company also has transferred 73,749 shares relating to the 2005 performance threshold to the investors who had entered the “2008 Settlement Agreements” with us in fiscal year 2008, pursuant to “Li Settlement Agreement” and “2008 Settlement Agreements”, neither Mr. Li nor the Company has not had any remaining obligations to those related investors who participated in the Company’s January 2005 private placement relating to the escrow shares.

On October 26, 2012, the Company effected a 1-for-5 reverse stock split of its issued and outstanding shares of common stock and a proportional reduction of its authorized shares of common stock. All common share and per share amounts, and exercise prices of common stock options disclosed herein and in the accompanying unaudited condensed consolidated unaudited financial statements have been retroactively restated to reflect the reverse stock split.

The Company’s condensed consolidated financial statements have been prepared under accounting principles generally accepted in the United States of America (“US GAAP”).

These condensed consolidated financial statements are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these condensed consolidated financial statements, which are of a normal and recurring nature, have been included. The results reported in the condensed consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The following (a) condensed consolidated balance sheet as of September 30, 2013, which was derived from the Company’s audited financial statements, and (b) the unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to those rules and regulations, though the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying footnotes of the Company for the year ended September 30, 2013.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company’s principal subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC, Hong Kong, India, Canada or Germany, the accounting standards used in the places of their domicile. The accompanying condensed consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company’s subsidiaries to present them in conformity with US GAAP.

The Company had net liabilities, a working capital deficiency, accumulated deficit from recurring net losses incurred for the current and prior years and significant short-term debt obligations maturing in less than one year as of June 30, 2014. The Company has been suffering severe cash flow deficiencies.

F-8

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

1. Principal Activities, Basis of Presentation and Organization (Continued)

Basis of Presentation and Organization (Continued)

In order to repay the Company’s overdue bank loans, Shenzhen BAK Battery Co., Ltd (“Shenzhen BAK”), a former wholly-owned subsidiary of the Company, borrowed from Mr. Jinghui Wang (“Mr. Wang”), an unrelated third party, in December 2013 and January 2014, an aggregate of $83.8 million (RMB520 million) bearing interest at 20% per annum and repayable by March 31, 2014 (“the “Loans”). The Loans were secured by the Company’s 100% equity interest in BAK International (the “Shares”), guaranteed by BAK International and the Company (collectively the “Collateral”).

The Company failed to repay the loans to Mr. Wang on March 31, 2014. On April 24, 2014, the Company received a default notice from Mr. Wang. On June 30, 2014, the Company received a further notice from Mr. Wang that due to Shenzhen BAK’s default under the Loans, he had foreclosed his security interest in BAK International and sold and transferred to a third party the Shares for a purchase price of $83.8 million (RMB520 million). Pursuant to a debt waiver agreement also dated June 30, 2014, Mr. Wang agreed to waive his entitlement to the interest on the Loans accruing to $8.3 million (RMB51.3 million)as of June 30, 2014.Following the disposal and pursuant to a deed of waiver and release signed on July 4, 2014, the Company and BAK International were both released and discharged from their obligations under the corporate guarantees that they executed in favor of Mr. Wang, and the Company, Shenzhen BAK, BAK International and Mr. Wang shall have no claim whatsoever against each other.

As a result of the foreclosure, the equity interest of BAK International and its wholly owned subsidiaries, namely Shenzhen BAK, BAK Battery (Shenzhen) Co., Ltd., BAK International (Tianjin) Ltd., Tianjin Chenhao Technological Development Limited (a subsidiary of BAK Tianjin established on May 8, 2014,“Tianjin Chenhao”), BAK Battery Canada Ltd., BAK Europe GmbH and BAK Telecom India Private Limited (collectively the “Disposal Group”) was disposed of effective on June 30, 2014. The condensed consolidated financial statements were consolidated up to the date of disposal. The Company recorded a gain on disposal of subsidiaries of $45.8 million, which was mainly related to the market value appreciation of the Company’s Research and Development Centre in Shenzhen.

The following table represents the net assets of the Disposal Group as of June 30, 2014 (date of disposal):

		Carrying amount
Cash and cash equivalents	$	4,163,555
Pledged deposits		119,382
Bill and trade accounts receivable, net		63,539,165
Inventories		39,941,073
Prepayments and other receivables		25,975,982
Property, plant and equipment, net		165,242,359
Prepaid land use rights, net		21,950,651
Intangible assets, net		583,662
Short-term bank loans		(63,181,988	)
Accounts and bills payable		(100,364,485	)
Accrued expenses and other payables		(39,278,719	)
Other short term loans		(38,906,793	)
Payable to the Company (Note)		(11,511,694	)
Deferred revenue		(7,215,622	)
Other long-term payables		(23,834,320	)
Rental deposits		(1,144,121	)
Deferred tax liabilities		(769,357	)
Net assets of BAK International and subsidiaries upon disposal		35,308,730
Consideration received in the form of :
Offset against loans from Mr. Wang		(83,812,839	)
Waiver of interest accruing up to June 30, 2014		(8,262,566	)
Net of stamp duty		(84,677	)
		(56,851,352	)
Impairment on receivable from the Disposal Group (note)		11,072,885
Gain on disposal of subsidiaries	$	(45,778,467	)

Note: The Disposal Group owed the Company a sum of $11,511,694 upon disposal. Management of the Company evaluated the collectability of this amount and determined that $11,072,885 should be impaired (Note 5(ii)).

F-9

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

1. Principal Activities, Basis of Presentation and Organization (Continued)

Basis of Presentation and Organization (Continued)

DISCONTINUED OPERATIONS

The Company had also been engaged in property leasing and management of its Research and Development Centre in Shenzhen since its completion in July 2013. Following the disposal of BAK International and its subsidiaries on June 30, 2014, this business is now accounted for as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented. Accordingly, assets and liabilities, revenues and expenses, and cash flows related to the property leasing and management business have been appropriately reclassified in the accompanying condensed consolidated financial statements as discontinued operations for all periods presented.

The following table presents the major classes of assets and liabilities of discontinued operations of the property leasing and management business reported in the condensed consolidated balance sheets:

		September 30, 2013
Prepayments and other receivables	$	37,239
Prepaid land use right, current portion		28,524
Current assets of discontinued operations	$	65,763
Noncurrent assets
Property, plant and equipment, net	$	41,914,724
Prepaid land use right, non current		1,200,277
Noncurrent assets of discontinued operations	$	43,115,001
Noncurrent liabilities of discontinued operations - Rental deposits from tenants	$	(715,398	)

The following table presents the components of discontinued operations in relation to the property leasing and management business reported in the condensed consolidated statements of operations and comprehensive loss:

		Three months ended			Nine months ended
		June 30, 2014			June 30, 2014
Net revenues	$	1,459,719		$	4,069,146
Cost of revenues		(301,935	)		(919,470	)
		1,157,784			3,149,676
Gain on disposal of subsidiaries		45,778,467			45,778,467
Income from discontinued operations	$	46,936,251		$	48,928,143

As a result of the above foreclosure, the Company currently owns a Hong Kong subsidiary, BAK Asia, which in turn wholly owns two Chinese subsidiaries, Dalian BAK and Dalian BAK Power. China BAK will continue to be a US listing company with a low level of liabilities. The Company has outsourced its manufacturing operations to BAK Tianjin before the completion of construction and operation of facility in Dalian. BAK Tianjin is now a supplier of the Company and the Company does not have any significant benefits or liability from the operating results of BAK Tianjin except the normal risk with any major supplier.

It is the Company’s understanding that the Dalian government will grant certain government subsidies to the Company, including but not limited to land use rights at a favorable price. As of June 30, 2014, the Company had advances from the Management Committee of Dalian Economic Zone of $24,176,781 to finance its removal of our production facilities to Dalian. The Company expects that the removal will be completed by the end of 2014 and these advances will be recognized as income or offset against related expenditures when there are no present or future obligations for the subsidized projects. The Company obtained a short term bank loan of $4.8 million (RMB30 million) from Bank of Dandong for the period from August 19, 2014 to August 18, 2015. The short term loan is bearing fixed interest at 7.8% per annum and was guaranteed by Shenzhen BAK and Mr. Xiangqian Li, the Company’s CEO. The Company plans to raise further financing from local banks to meet its daily cash demands. However, there can be no assurance that the Company will be successful in obtaining this financing.

F-10

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

1. Principal Activities, Basis of Presentation and Organization (Continued)

Basis of Presentation and Organization (Continued)

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty related to the Company’s ability to continue as a going concern.

Recently issued accounting pronouncements

In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements (Topic 205)and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Entities may “early adopt” the guidance for new disposals. The Company does not expect that the adoption will have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" which clarifies and improves the principles for recognizing revenue and develops a common revenue standard for United States generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) that among other things, improves comparability of revenue recognition practices and provides more useful information to users of financial statements through improved disclosure requirements. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently reviewing the effect of ASU 2014-09 on its revenue recognition.

In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718)" which provides explicit guidance on the treatment of awards with performance targets that could be achieved after the requisite service period. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect that the adoption will have a material impact on its consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

F-11

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

2. Pledged Deposits

Pledged deposits as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013		June 30, 2014
Pledged deposits with banks for:
Advances from an unrelated third party (Note 10(b))	$	2,450,540	$	-
Bills payable		5,687,147		-
	$	8,137,687	$	-

3. Trade Accounts Receivable, net

Trade accounts receivable as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013			June 30, 2014
Trade accounts receivable	$	61,706,474		$	176,439
Less: Allowance for doubtful accounts		(17,734,802	)		-
		43,971,672			176,439
Bills receivable		5,904,029			-
	$	49,875,701		$	176,439

4. Inventories

Inventories as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013		June 30, 2014
Raw materials	$	9,732,211	$	-
Work-in-progress		9,220,019		-
Finished goods		38,322,957		806,699
	$	57,275,187	$	806,699

During the three months ended June 30, 2013 and 2014, obsolete inventory write-downs to lower of cost or market of $12,288,997 and $3,105,534, respectively, were charged to cost of revenues.

During the nine months ended June 30, 2013 and 2014, obsolete inventory write-downs to lower of cost or market of $38,084,761 and $8,752,543, respectively, were charged to cost of revenues.

F-12

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

5. Prepayments and Other Receivables and Receivable from former subsidiaries

(i) Prepayments and other receivables were disposed as of September 30, 2013 and June 30, 2014 consisted of the following:

	Note		September 30, 2013			June 30, 2014
Prepayments for raw materials and others		$	3,466,177		$	-
Staff advances			701,923			17,776
Prepaid operating expenses			292,049			1,934
Advance to an unrelated third party	(a) (e)		1,169,798			-
Advance to a related party	(b) (e)		885,052			-
Consideration receivable	(c) (e)		6,483,507			-
Net assets of BAK Canada held by trustee	(d) (e)		1,043,833			-
Value added tax recoverable			4,295,390			165,250
Others			1,371,790			9,044
			19,709,519			194,004
Less: Allowance for doubtful accounts			(1,980,914	)		-
		$	17,728,605		$	194,004

(a)	Advance to an unrelated third party was interest-free, unsecured and repayable on demand.
(b)	As of September 30, the Company advanced to Tianjin BAK New Energy Research Institute Co., Ltd (“Tianjin New Energy”), a related party under the common control of Mr. Xiangqian Li (“Mr. Li”), the Company’s CEO, an amount of $885,052 which was interest-free, unsecured and repayable on demand.
(c)	On August 27, 2013, the Company completed the equity transfer of Tianjin Meicai to Tianjin Zhantuo International Trading Co., Ltd. (“Tianjin Zhantuo”), an unrelated third party. As of September 30, 2013, the remaining consideration receivable was $6,483,507. The amount was interest-free, repayable on September 26, 2013 (30 days upon completion) and pledged for advance from Tianjin Zhantuo.
(d)	BAK Canada filed for bankruptcy on March 28, 2013. As of September 30, 2013, its net assets were held under the custody of its trustee.
(e)	These receivables were disposed as of June 30, 2014. (Note 1).

(ii) Receivable from a former subsidiary

		June 30, 2014
Receivable from a former subsidiary (Note 1)	$	11,511,694
Less: Allowance for doubtful accounts (Note 1)		11,072,885
	$	438,809

As of June 30, 2014, the amount due from Shenzhen BAK was interest free, unsecured and repayable on demand. An amount of $438,809 was repaid in August 2014.

F-13

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

6. Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013			June 30, 2014
Buildings	$	110,214,027		$	-
Machinery and equipment		125,617,004			7,816
Office equipment		2,520,480			2,396
Motor vehicles		1,722,492			116,842
		240,074,003			127,054
Accumulated depreciation		(123,715,978	)		(8,292	)
Construction in progress		11,321,396			11,960,099
Prepayment for acquisition of property, plant and equipment		558,013			-
Carrying amount	$	128,237,434		$	12,078,861

(i) Depreciation expense for the continuing operations is included in the condensed consolidated statements of operations and comprehensive loss as follows:

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
Cost of revenues	$	3,634,835	$	1,415,904	$	11,029,359	$	4,706,625
Research and development expenses		92,751		149,372		373,167		396,926
Sales and marketing expenses		34,820		27,357		101,673		84,194
General and administrative expenses		873,827		800,203		2,490,275		2,490,383
	$	4,636,233	$	2,392,836	$	13,994,474	$	7,678,128

(ii)	Construction in Progress
	Construction in progress as of September 30, 2013 mainly comprised of capital expenditures for the automation production line of BAK Tianjin. Construction in progress as of June 30, 2014 was mainly comprised of capital expenditures for the site of Dalian BAK Power.
	For the three months ended June 30, 2013 and 2014, the Company capitalized interest of $605,648 and $26,943, respectively, to the cost of construction in progress.
	For the nine months ended June 30, 2013 and 2014, the Company capitalized interest of $1,975,311 and $345,443, respectively, to the cost of construction in progress.
(iii)	Impairment charge
	During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment.. The Company charged impairment losses of $3.2 million and $14.6 million for the three and nine months ended June 30, 2013, respectively. The impairment charge represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities in Shenzhen primarily for the production of aluminum-case cells. The Company believes that there was no further impairment for the three and nine months ended June 30, 2014.

F-14

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

7. Prepaid Land Use Rights, net

Prepaid land use rights as of September 30, 2013 and June 30, 2014 consisted of the followings:

		September 30, 2013			June 30, 2014
Prepaid land use rights	$	25,104,833		$	-
Accumulated amortization		(3,664,541	)		-
	$	21,440,292		$	-
Less: Classified as current assets		(707,810	)		-
	$	20,732,482		$	-

Amortization expenses for the continuing operations were $150,712 and $418,720 for the three and nine months ended June 30, 2014, respectively.

Amortization expenses for the continuing operations were $254,386 and $831,840 for the three and nine months ended June 30, 2013, respectively.

8. Intangible Assets, net

Intangible assets as of September 30, 2013 and June 30, 2014 consist of the following:

		September 30, 2013			June 30, 2014
Trademarks, computer software and technology	$	1,430,756		$	-
Less: Accumulated amortization		(699,872	)		-
	$	730,884		$	-

Intangible assets represented the trademarks, computer software and technology used for battery production and research.

Amortization expenses for the continuing operations were $146,002 and $59,601 for the three months ended June 30, 2013 and 2014 and $232,819 and $154,662 for the nine months ended June 30, 2013 and 2014, respectively.

9. Short-term Bank Loans

As of September 30, 2013 and June 30, 2014, the Company had several short-term bank loans with aggregate outstanding balances of $151,404,677 and nil. The loans were primarily obtained for general working capital, carried at interest rates ranging from 5.88% to 15.00% per annum, and had maturity dates ranging from 9 to 12 months. The loans are guaranteed by Mr. Li, the Company’s CEO, BAK International (TJ) Ltd and BAK International Ltd. These facilities were also secured by the Company’s assets with the following carrying values:

		September 30, 2013		June 30, 2014
Inventories	$	24,505,399	$	-
Accounts receivable, net		31,392,774		-
Machinery and equipment, net		12,211,038		-
Land use rights, buildings and construction in progress of BAK Industrial Park		87,763,440		-
Land use rights and buildings of Research and Development Test Centre		43,143,525		-
Land use rights #1 and buildings of Tianjin Industrial Park Zone		17,857,940		-
	$	216,874,116	$	-

As of June 30, 2014, short-term bank loans were disposed (note 1).

During the three months ended June 30, 2013 and 2014, interest expenses of $3,786,211 and $1,101,889, respectively, were incurred on the Company’s short-term bank borrowings.

During the nine months ended June 30, 2013 and 2014, interest expenses of $9,502,769 and $5,693,738, respectively, were incurred on the Company’s short-term bank borrowings.

F-15

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

10. Other short-term loans, Accrued Expenses and Other Payables

(i) Other short-term loans were disposed as of September 30, 2013 and June 30, 2014 consisted of the following:

	Note		September 30, 2013		June 30, 2014
Advances from unrelated third parties
–   Shenzhen Huo Huang Import & Export Co., Ltd.	(a)	$	24,160,595	$	-
–   Gold State Securities Limited	(b)		2,450,540		-
–   Shenzhen Wellgain Industrial Co., Ltd.	(c)		816,847		-
–   Shenzhen De Dao Trading Co., Ltd. (former supplier of the Company)			816,847		-
–   Others			37,493		-
		$	28,282,322	$	-

(ii) Accrued expenses and other payables as of September 30, 2013 and June 30, 2014 consisted of the following:

	Note		September 30, 2013		June 30, 2014
Construction costs payable		$	5,894,919	$	7,555,228
Equipment purchase payable			5,359,816		-
Customer deposits			2,038,387		104,992
Other payables and accruals	(d)		5,400,459		1,569,895
Accrued loan interest			246,027		-
Accrued staff costs			3,869,318		-
Deferred revenue, current portion			346,509		-
		$	23,155,435	$	9,230,115

As of September 30, 2013, the Company had advances from unrelated parties of $28,282,322, which were unsecured, non- interest bearing and repayable on demand except for:

(a)	A loan from Shenzhen Huo Huang Import & Export Co., Ltd. that bears interest at 18% per annum;
(b)	A loan from Gold State Securities Limited that bears interest at 2.31% per annum, secured by fixed deposits of the same amount plus interest placed with a bank (Note 2) and guaranteed by Mr. Xiangqian Li; and
(c)	A loan of $3,267,387 (RMB20 million) from Shenzhen Wellgain Industrial Co., Ltd. which was interest bearing at 0.5% per month and repayable by July 9, 2013, guaranteed by Mr. Xiangqian Li and Mr. Chunzhi Zhang. The Company repaid principal of $2,450,540 and default interest of $201,958 prior to September 30, 2013, and repaid the remaining balance of $816,847 on October 21, 2013;

As of June 30, 2014, advances from related parties were either repaid or disposed.

F-16

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

10. Other short-term loans, Accrued Expenses and Other Payables (continued)

(d)	Other payables and accruals as of September 30, 2013 and June 30, 2014 included a payable for liquidated damages of approximately $1,210,000.
	On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company’s previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of September 30, 2013 and June 30, 2014, no liquidated damages relating to both events have been paid.
	On November 9, 2007, the Company completed a private placement for the gross proceeds to the Company of $13,650,000 by selling 3,500,000 shares of common stock at the price of $3.90 per share. Roth Capital Partners, LLC acted as the Company’s exclusive financial advisor and placement agent in connection with the private placement and received a cash fee of $819,000. The Company may have become liable for liquidated damages to certain shareholders whose shares were included in a resale registration statement on Form S-3 that the Company filed pursuant to a registration rights agreement that the Company entered into with such shareholders in November 2007. Under the registration rights agreement, among other things, if a registration statement filed pursuant thereto was not declared effective by the SEC by the 100th calendar day after the closing of the Company’s private placement on November 9, 2007, or the “Effectiveness Deadline”, then the Company would be liable to pay partial liquidated damages to each such investor of (a) 1.5% of the aggregate purchase price paid by such investor for the shares it purchased on the one month anniversary of the Effectiveness Deadline; (b) an additional 1.5% of the aggregate purchase price paid by such investor every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until the earliest of the effectiveness of the registration statement, the ten-month anniversary of the Effectiveness Deadline and the time that the Company is no longer required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations; and (c) 0.5% of the aggregate purchase price paid by such investor for the shares it purchased in our November 2007 private placement on each of the following dates: the ten-month anniversary of the Effectiveness Deadline and every thirtieth day thereafter (pro rated for periods totaling less than thirty days), until the earlier of the effectiveness of the registration statement and the time that the Company no longer is required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations. Such liquidated damages would bear interest at the rate of 1% per month (prorated for partial months) until paid in full.
	On December 21, 2007, pursuant to the registration rights agreement, the Company filed a registration statement on Form S-3, which was declared effective by the SEC on May 7, 2008. As a result, the Company estimated liquidated damages amounting to $561,174 for the November 2007 registration rights agreement. As of September 30, 2013 and June 30, 2014, the Company had settled the liquidated damages with all the investors and the remaining provision of approximately $159,000 was included in other payables and accruals.

During the three months ended June 30, 2013 and 2014, interest expense of $16,077 and $5,149,806 (including loan interest of $4,203,266 accruing on the loans from Mr. Wang as described in Note 1), respectively, was incurred on the Company’s advances from unrelated third parties.

During the nine months ended June 30, 2013 and 2014, interest expense of $16,077 and $11,687,780 (including loan interest of $8,347,735 accruing on the loans from Mr. Wang as described in Note 1), respectively, was incurred on the Company’s advances from unrelated third parties.

F-17

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

11. Deferred Revenue

Deferred revenue mainly represented a government grant subsidy of $9.0million (RMB56 million) for costs of land use rights relating to BAK Industrial Park, which is amortized on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon of 35 years.

12. Deferred Government Grants

Other long-term payables as of September 30, 2013 and June 30, 2014 consist of the following:

		September 30, 2013			June 30, 2014
Advances from the Management Committee of Dalian Economic Zone (the “Management Committee”)(note)	$	24,505,399		$	24,176,781
Government subsidies received for:-
–   Automated high-power lithium battery project from the National Development and Reform Commission and Ministry of Industry and Information Technology		8,145,594			-
–   New energy innovation project from the Ministry of Finance		340,217			-
–   Various lithium battery related projects from various government authorities		14,448,005			-
Others		32,252			-
	$	47,471,467		$	24,176,781
Less: Current portion		(24,525,004	)		(24,176,781	)
	$	22,946,463		$	-

Note: The Management Committee provided a subsidy of RMB150 million to finance the removal of the Company’s production facilities from Tianjin to Dalian. The Company expects that the removal will be completed before December 2014.

The Company will recognize these grants as income or offset against related expenditures when there are no present or future obligations for the subsidized projects.

F-18

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

13. Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities

(a) Income taxes in the condensed consolidated statements of comprehensive loss

The Company’s provision for income taxes consisted of:

		Three Months ended June 30,				Nine Months ended June 30,
		2013		2014		2013		2014
PRC income tax:
Current	$	32,777	$	-	$	277,599	$	16,474
Deferred		25,228		-		5,806,678		-
	$	58,005	$	-	$	6,084,277	$	16,474

United States Tax
China BAK is subject to statutory tax rate of 35% under United States of America tax law. No provision for income taxes in the United States or elsewhere has been made as China BAK had no taxable income for the three months ended andnine months ended June 30, 2013 and 2014.

Canada States Tax
BAK Canada is subject to statutory tax rate of 38% under Canada tax law. No provision for income taxes in Canada has been made as BAK Canada had no taxable income for the three months and nine months ended June 30, 2013 and 2014.

German States Tax
BAK Europe is subject to 25% statutory tax rate under Germany tax law for the three months and nine months ended June 30, 2013 and 2014.

India Tax
BAK India is subject to 30% statutory tax rate under India tax law. No provision for income taxes in India has been made as BAK India had no taxable income for the three months and nine months ended June 30, 2013 and 2014.

Hong Kong Tax
BAK International and China Asia are subject to Hong Kong profits tax rate of 16.5% . There is no taxable income for both companies for the three months and nine months ended June 30, 2013 and 2014, thus both companies did not incur any Hong Kong profits tax during the periods presented.

PRC Tax
Shenzhen BAK is entitled to a preferential enterprise income tax rate of 15% for the three and nine months ended June 30, 2013 and 2014.

All the other subsidiaries in China are subject to an income tax rate of 25%.

F-19

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

13. Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Continued)

(a) Income taxes in the condensed consolidated statements of comprehensive loss (Continued)

A reconciliation of the provision for income taxes determined at the statutory income tax rate to the Company’s income tax expenses is as follows:

		Three Months ended June 30,						Nine Months ended June 30,
		2013			2014			2013			2014
(Loss) before income taxes-continuing operations	$	(10,212,676	)	$	$ (9,829,430	)	$	(52,040,531	)	$	(26,351,675	)
United States federal corporate income tax rate		35%			35%			35%			35%
Income tax computed at United States statutory corporate income tax rate		(3,574,437	)		(3,440,301	)		(18,214,186	)		(9,223,086	)
Reconciling items:
Rate differential for PRC earnings		1,720,899			455,721			9,782,790			2,555,291
Valuation allowance on deferred tax assets		1,328,284			2,939,065			7,109,734			6,147,546
Non-deductible expenses		554,557			40,430			7,087,660			506,060
Share based payment		27,771			5,085			104,205			30,663
Under-provision in prior year		931			-			214,074			-
Income tax expenses	$	58,005		$	-		$	6,084,277		$	16,474

As of September 30, 2013 and June 30, 2014, the Company’s U.S. entity, had net operating loss carry forwards of $2,511,374 and $3,354,362, respectively, available to reduce future taxable income which will expire in various years through 2030 and the Company’s PRC subsidiaries had net operating loss carry forwards of $105,668,004 and $595,495 which will expire in various years through 2019. Management believes it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, the full amount of the valuation allowance was provided against the potential tax benefits.

F-20

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

13. Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Continued)

(b) Deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of September 30, 2013 and June 30, 2014 are presented below:

		September 30,2013			June 30, 2014
Deferred tax assets
Short-term
Trade accounts receivable	$	5,530,324		$	-
Inventories		5,365,802			-
Accrued expenses and other payables		865,002			-
Valuation allowance		(11,761,128	)		-
Short-term deferred tax assets		-			-
Long-term
Property, plant and equipment		17,826,415			-
Net operating loss carried forward		26,833,658			1,322,901
Valuation allowance		(44,660,073	)		(1,322,901	)
Long-term deferred tax assets		-			-
Total net deferred tax assets	$	-		$	-
Deferred tax liabilities:
Long-term - Property, plant and equipment	$	(779,814	)	$	-
Net deferred tax liabilities	$	(779,814	)	$	-

As of September 30, 2013 and June 30, 2014, the Company has no material unrecognized tax benefits which would favorably affect the effective income tax rates in future periods and does not believe that there will be any significant increases or decreases of unrecognized tax benefits within the next twelve months. No interest or penalties relating to income tax matters have been imposed on the Company during the periods ended June 30, 2013 and 2014, and no provision for interest and penalties is deemed necessary as of June 30, 2013 and 2014.

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion.

F-21

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

14. Share-based Compensation

(i) Options

The Company grants share options to officers and employees and restricted shares of common stock to its non-employee directors as rewards for their services.

Stock Option Plan

In May 2005, the Board of Directors adopted the China BAK Battery, Inc. 2005 Stock Option Plan (the “Plan”). The Plan originally authorized the issuance of up to 800,000 shares of the Company’s common stock, pursuant to stock options granted under the Plan, or as grants of restricted stock. The exercise price of options granted pursuant to the Plan must be at least equal to the fair market value of the Company’s common stock at the date of the grant. Fair market value is determined at the discretion of the designated committee on the basis of reported sales prices for the Company’s common stock over a ten-business-day period ending on the grant date. The Plan will terminate on May 16, 2055. On July 28, 2008, the Company’s stockholders approved certain amendments to the Plan, including an amendment increasing the total number of shares available for issuance under the Plan to 1,600,000.

On June 22, 2009, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of options to purchase 385,640 shares of the Company’s common stock to certain key employees, officers and consultants with an exercise price of $14.05 per share and a contractual life of 7 years. In accordance with the vesting provisions of the grants, the options will become vested and exercisable over five years in twenty equal quarterly installments on the first day of each fiscal quarter beginning on October 1, 2009.

A summary of share option plan activity for these options during the nine months ended June 30, 2014 is presented below:

				Weighted
				average	Weighted		Aggregate
	Number of			exercise price	average remaining		intrinsic
	shares			per share	contractual term		value (1)
Outstanding as of October 1, 2013	136,560		$	14.05	2.7years
Exercised	-			-
Cancelled	-			-
Forfeited	(132,360	)		14.05
Outstanding as of June 30, 2014	4,200		$	14.05	1.95 years	$	-
Exercisable as of June 30, 2014	4,200		$	14.05	1.95 years	$	-

⁽¹⁾ The intrinsic values of options at June 30, 2014 was zero since the per share market value of common stock of $2.35 was lower than the exercise price of the option of $14.05 per share.

The weighted average grant-date fair value of options granted on June 22, 2009 was $12.30 per share. The Company recorded non-cash share-based compensation expense of $57,328 and $10,498 for the three months ended June 30, 2013 and 2014, and $214,351 and of $64,604 for the nine months ended June 30, 2013 and 2014, respectively.

F-22

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

14. Share-based Compensation (Continued)

(i) Options (Continued)

The fair value of the above option awards granted on June 22, 2009 was estimated on the date of grant using the Black-Scholes Option Valuation Model that uses the following assumptions.

Expected volatility	111.03%
Expected dividends	Nil
Expected life	7 years
Risk-free interest rate	3.69%

As of June 30, 2014, there were unrecognized compensation costs of $10,498 related to the above non-vested share options. These costs are expected to be recognized over a weighted average period of 0.25 years.

On April 8, 2010, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of options to purchase 20,000 shares of the Company’s common stock to certain key management with an exercise price of $12.15 per share and a contractual life of 7.5 years. In accordance with the vesting provisions of the grants, the options will become vested and exercisable in eight equal installments beginning on each quarter after September 30, 2010.

A summary of share option plan activity for these options during the nine months ended June 30, 2014 is presented below:

				Weighted	Weighted
				Average	average		Aggregate
	Number of			Exercise	remaining		intrinsic
	shares			price per share	contractual term		value (1)
Outstanding as of October 1, 2013	20,000		$	12.15	4 years
Exercised	-			-
Cancelled	-			-
Forfeited	(20,000	)		12.15
Outstanding as of June 30, 2014	-			-	-	$	-
Exercisable as of June 30, 2014	-			-	-	$	-

⁽¹⁾ The intrinsic values of options at June 30, 2014 was zero since the per share market value of common stock of $2.35 was lower than the exercise price of the option of $12.15 per share.

The weighted average grant-date fair value of options granted on April 8, 2010 was $7.05 per share. The Company recorded non-cash share-based compensation expense of $1,373 and nil for the three months ended June 30, 2013 and 2014and $8,703 and nil for the nine months ended June 30, 2013 and 2014, respectively, in respect of share options granted on April 8, 2010 which was allocated to research and development expense.

F-23

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

14. Share-based Compensation (Continued)

(i) Options (Continued)

The fair value of the above option awards granted on April 8, 2010 was estimated on the date of grant using the Black-Scholes Option Valuation Model that uses the following assumptions.

Expected volatility	51.79%
Expected dividends	Nil
Expected life	7.5 years
Risk-free interest rate	3.90%

As of June 30, 2014, there were no unrecognized compensation costs related to the above non-vested share options.

(ii) Restricted Shares

Pursuant to the Plan and in accordance with the China BAK Battery, Inc. Compensation Plan for Non-Employee Directors, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of 100,000 restricted shares to the Chief Executive Officer, Mr. Xiangqian Li with a fair value of $14.05 per share on June 22, 2009. In accordance with the vesting schedule of the grant, the restricted shares will vest in twenty equal quarterly installments on the first day of each fiscal quarter beginning on October 1, 2009.

The Company recorded non-cash share-based compensation expense of $20,642 and $4,026 for the three months ended June 30, 2013 and 2014 and $74,875 and $23,002 for the nine months ended June 30, 2013 and 2014, respectively, in respect of the restricted shares granted on June 22, 2009, which was allocated to general and administrative expenses.

As of June 30, 2014, there was unrecognized stock-based compensation costs of $596 associated with these restricted shares granted to Mr. Xiangqian Li. These costs are expected to be recognized over a weighted-average period of 0.25 years.

As the Company itself is an investment holding company which is not expected to generate operating profits to realize the tax benefits arising from its net operating loss carried forward, no income tax benefits were recognized for such stock-based compensation cost under stock option plan for the three and nine months ended June 30, 2013 and 2014.

F-24

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

15. (Loss) Earnings Per Share

The following is the calculation of (loss) earnings per share:

		Three months ended June 30,						Nine months ended June 30,
		2013			2014			2013			2014
Net (loss) profit
- From continuing operations	$	(10,270,681	)	$	(9,829,430	)	$	(58,124,808	)	$	(26,368,149	)
- From discontinued operations		-			46,936,251			-			48,928,143
		(10,270,681	)		37,106,821			(58,124,808	)		22,559,994
Weighted average shares used in basic and diluted computation		12,619,597			12,619,597			12,619,597			12,619,597
(Loss) earnings per share – Basic and diluted
- From continuing operations		(0.81	)		(0.78	)		(4.61	)		(2.09	)
- From discontinued operations		-			3.72			-			3.88
(Loss) earnings per share – Basic and diluted	$	(0.81	)	$	2.94		$	(4.61	)	$	1.79

For the three and nine months ended June 30, 2014, the outstanding 4,200 stock options and 100,000 restricted shares were anti-dilutive and excluded from diluted (loss) earnings per share.

For the three and nine months ended June 30, 2013, the outstanding 246,151 stock options and 100,000 restricted shares were anti-dilutive and excluded from diluted loss per share.

F-25

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

16. Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available. The three levels of valuation hierarchy are defined as follows:

- Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

- Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

- Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, trade accounts receivable, other receivables, accounts and bills payable and other payables, approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest.

17. Commitments and Contingencies

(i) Capital Commitments

As of September 30, 2013 and June 30, 2014, the Company had the following contracted capital commitments:

		September 30,2013		June 30, 2014
For construction of buildings	$	321,668	$	11,119,956
For purchase of equipment		1,174,695		-
Capital injection to Dalian BAK Power (Note 1)		-		25,000,000
	$	1,496,363	$	36,119,956

(ii) Guarantees

In order to secure the supplies of certain raw materials and equipment and upon the request of suppliers, the Company has given guarantees of bank borrowings with a maximum obligation period of from one to three years to certain parties to the maximum extent of $31.0 million (including $4.9 million to a related party) and nil as of September 30, 2013 and June 30, 2014, respectively.

During the three months ended June 30, 2013 and 2014, the Company recorded a reversal of loss arising from loan guarantees of $0.8 million and nil, respectively.

During the nine months ended June 30, 2013 and 2014, the Company recorded a net loss arising from loan guarantees of $2.0 million and nil, respectively.

F-26

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

17. Commitments and Contingencies (Continued)

(iii) Outstanding Discounted Bills and Transferred Bills

From time to time, the Company factors bills receivable to banks and endorses the bank acceptance bills received to its suppliers, vendors or other parties for settlement of its liabilities to these creditors. At the time of the factoring and transfer, all rights and privileges of holding the receivables are transferred to the banks and the creditors. The Company removes the assets from its books and records a corresponding expense for the amount of the discount.

The Company’s outstanding discounted and transferred bills as of September 30, 2013 and June 30, 2014 are summarized as follows:

		September 30,2013		June 30, 2014
Bank acceptance bills	$	20,307,818	$	-

(iv) Litigation

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. Other than the legal proceeding set forth below, the Company is currently not aware of any such legal proceedings or claims that the Company believe will have an adverse effect on our business, financial condition or operating results:

China BAK Battery, Inc. has been named as a second defendant in the case of Safeco Ins. Co. of Am. v. Hewlett-Packard Co. et al., filed in the Superior Court of the State of California, County of Ventura. It is an action for negligence and strict product liability. The plaintiff alleges that a product manufactured by the Company was used in a Hewlett Packard laptop, which malfunctioned and caused fire damage in the home of a consumer (the Plaintiff’s insured). The total damages sought are $126,978, plus interest and fees. The Company believes that the plaintiff’s claims are without merit and intends to vigorously defend itself in this lawsuit.

An individual named Steven R. Ruth filed suit against China BAK Battery, Inc. in United States District Court for the Western District of Texas in 2013 alleging breach of contract. The company did not receive notice of this lawsuit and the plaintiff sought a default judgment, which the court granted in January 2014. Accordingly, the court entered judgment in favor of Mr. Ruth in the amount of $442,629.21. The company later learned of the existence of both the lawsuit and the default judgment and it is seeking to have the default judgment vacated so it will have the opportunity to defend against the lawsuit. The Company believes that the plaintiff’s claims are without merit and intends to vigorously defend itself in this lawsuit.

F-27

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

18. Significant Concentrations

(a) Customers and Credit Concentrations

The Company had three and one customers that individually comprised 10% or more of net revenue from continuing operations for the three months ended June 30, 2013 and 2014, respectively, as follows:

		Three months ended June 30,
		2013			2014
Jiangsu Huatiantong Technology Limited.	$	5,108,146	11.20%	$	*	*
Beijing Beny Wave Co., Ltd		5,476,526	12.00%		*	*
Dongguan Yulong Telecom Technology Co., Ltd.	$	4,752,907	10.42%	$	6,657,646	13.87%

*Comprised less than 10% of net revenue from continuing operations for the respective periods.

The Company had one customer that individually comprised 10% or more of net revenue from continuing operations for the nine months ended June 30, 2013 and 2014, respectively as follows:

	Nine months ended June 30,
	2013		2014
Tinno Mobile Technology Company Limited.	*	*	13,278,638	10.88%
Dongguan Yulong Telecom Technology Co., Ltd.	17,395,085	11.34%	*	*

*Comprised less than 10% of net revenue from continuing operations for the respective periods.

As of June 30, 2014, there was no customer that individually comprised 10% or more of accounts receivable.

(b) Credit Risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of September 30, 2013 and June 30, 2014, substantially all of the Company’s cash and cash equivalents and pledged deposits were held by major financial institutions located in the PRC, which management believes are of high credit quality.

F-28

China BAK Battery, Inc. and subsidiaries

Notes to the condensed consolidated financial statements

For the three and nine months ended June 30, 2013 and 2014 (Continued)

(In US$ except for number of shares)

(Unaudited)

19. Segment Information

The Company used to engage in one business segment, the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion rechargeable batteries for use in a wide array of applications. The Company manufactured five types of Li-ion rechargeable batteries: aluminum-case cell, battery pack, cylindrical cell, lithium polymer cell and high-power lithium battery cell. The Company’s products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. Starting from the three months ended December 31, 2013 and until June 30, 2014, the Company was also engaged in the business segment of property lease and management (see Note 1). Net revenues from continuing operations for the three and nine months ended June 30, 2013 and 2014 were as follows:

Net revenues by product:

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
Prismatic cells
Aluminum-case cell	$	7,564,890	$	3,361,596	$	25,868,259	$	24,486,486
Battery pack		15,415,073		29,050,554		55,236,046		61,800,144
Cylindrical cells		8,475,404		3,341,239		38,767,076		9,277,848
Lithium polymer cells		10,462,818		9,963,279		20,314,424		17,145,636
High-power lithium battery cells		3,680,541		2,278,178		13,211,773		9,329,136
Total	$	45,598,726	$	47,994,846	$	153,397,578	$	122,039,250

Net revenues by geographical area:

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
PRC Mainland	$	33,536,946	$	44,300,448	$	118,040,406	$	105,513,367
PRC Taiwan		3,197,234		644,796		10,391,188		2,952,745
India		1,670,086		822,849		6,736,917		1,978,668
Hong Kong, China		1,869,135		1,431,131		8,199,812		5,337,486
Others		5,325,325		795,622		10,029,255		6,256,984
Total	$	45,598,726	$	47,994,846	$	153,397,578	$	122,039,250

F-29

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto and the other financial information appearing elsewhere in this report. Our financial statements are prepared in U.S. dollars and in accordance with U.S. GAAP.

Special Note Regarding Forward Looking Statements

In addition to historical information, this report contains 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. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A, “Risk Factors” described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Use of Terms

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

• “Company”, “we”, “us” and “our” are to the combined business of China BAK Battery, Inc., a Nevada corporation, and its consolidated subsidiaries; up to the effective date of foreclosure.
• “BAK Asia” are to our Hong Kong subsidiary, China BAK Asia Holdings Limited;
• “Dalian BAK Trading” are to our PRC subsidiary, Dalian BAK Trading Co., Ltd.;
• “Dalian BAK Power” are to our PRC subsidiary, Dalian BAK Power Battery Co., Ltd;
• “BAK International” are to our former Hong Kong subsidiary, BAK International Limited;
• “BAK Europe” are to our former German subsidiary, BAK Europe GmbH;
• “BAK Canada” are to our former Canadian subsidiary, BAK Battery Canada Ltd.;
• “BAK India” are to our former Indian subsidiary, BAK Telecom India Private Limited;
• “Shenzhen BAK” are to our former PRC subsidiary, Shenzhen BAK Battery Co., Ltd.;
• “BAK Tianjin” are to our former PRC subsidiary, BAK International (Tianjin) Ltd.;
• “BAK Battery” are to our former PRC subsidiary, BAK Battery (Shenzhen) Co., Ltd.;
• “Tianjin Chenhao” are to our former PRC subsidiary, Tianjin Chenhao Technological Development Limited;
• “China” and “PRC” are to the People’s Republic of China;
• “RMB” are to Renminbi, the legal currency of China;
• “U.S. dollar”, “$” and “US$” are to the legal currency of the United States;
• “SEC” are to the United States Securities and Exchange Commission;
• “Securities Act” are to the Securities Act of 1933, as amended; and
• “Exchange Act” are to the Securities Exchange Act of 1934, as amended.

On December 27, 2013, Dalian BAK Power, a wholly owned subsidiary of BAK Asia, was incorporated in Dalian. As described below, Dalian BAK Power is expected to be engaged in manufacturing high power batteries.

On May 8, 2014, Tianjin Chenhao, a wholly owned subsidiary of BAK Tianjin, was incorporated in Tianjin.

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Overview

Before the foreclosure of BAK International on June 30, 2014, we generated most of our revenues from BAK International and its subsidiaries. We had experienced net losses since fiscal 2008. We generated revenues from the manufacture of lithium ion rechargeable batteries of $48.0 million and $45.6 million for the three months ended June 30, 2014 and 2013, respectively. Starting from December 31, 2013 and up to June 30, 2014, we were also engaged in the business segment of property lease and management of our Research and Development Centre in Shenzhen, which was completed in July 2013. As a result, we generated revenues from property lease and management of $1.5 million and nil for the three months ended June 30, 2014 and 2013, respectively.

We had net liabilities, a working capital deficiency, accumulated deficit from recurring net losses incurred for the current and prior years and significant short-term debt obligations maturing in less than one year as of June 30, 2014.

In order to repay our overdue bank loans, Shenzhen BAK borrowed from Mr. Jinghui Wang an aggregate of RMB520 million (approximately $85.9 million) (the “Loans”) in December 2013 and January 2014. To secure the repayment of the Loans, the Company and BAK International separately entered into a corporate guarantee with Mr. Wang, under which each of the Company and BAK International irrevocably and unconditionally guaranteed to the lender timely performance by Shenzhen BAK of its obligation to repay the Loans. In addition, the Company pledged 100% of its equity interest in BAK International to the lender as security for Shenzhen BAK’s repayment of the Loans (the “Pledged BAK International Equity”).

On April 24, 2014, the Company received a notice from Mr. Wang that requested for immediate payment of the loans. On June 30, 2014, the Company received from Mr. Wang a notice that due to Shenzhen BAK’s default under the Loans, he had foreclosed his security interest in and sold and transferred to a third party the Pledged BAK International Equity for a purchase price of RMB520 million (approximately $83.8 million).

On July 4, 2014, the Company, Shenzhen BAK, BAK International and Mr. Wang entered into certain Deed of Waiver and Release, pursuant to which, Mr. Wang absolutely waived all his title, rights, interests and benefits in and to the accrued and unpaid interests accruing on the Loans in an amount of RMB51 million (approximately $8.3 million) as of June 30, 2014. In addition, the Company and BAK International were both released and discharged from their obligations under the corporate guarantees that they executed in favor of Mr. Wang. Under the Deed of Waiver and Release, the Company, Shenzhen BAK, BAK International and Mr. Wang will have no claim whatsoever against each other.

As a result of the above foreclosure, we lost ownership of the following companies:

• Our former Hong Kong subsidiary, BAK International;
• Our former German subsidiary, BAK Europe;
• Our former Canadian subsidiary, BAK Canada;
• Our former Indian subsidiary, BAK India;
• Our former PRC subsidiary, Shenzhen BAK;
• Our former PRC subsidiary, BAK Tianjin;
• Our former PRC subsidiary, BAK Battery; and
• Our former PRC subsidiary, Tianjin Chenhao.

Our new corporate structure after the foreclosure is as follows:

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We expect that upon the commencement of its commercial operations at the end of calendar year 2014, Dalian BAK Power will be engaged in the business of developing, manufacturing and selling energy high power lithium batteries, which are mainly used in the following applications:

• Electric vehicles (EV), such as electric cars, electric buses, hybrid electric cars and buses;
• Light electric vehicles (LEV), such as electric bicycles, electric motors, sight-seeing cars; and
• Electric tools, energy storage, uninterruptible power supply, and other high power applications.

We are constructing a new manufacturing facility in Dalian and most of the operating assets, including machinery and equipment, as well as the customers, employees, patents and technologies are being relocated from BAK Tianjin to Dalian. The construction of the Dalian facility is expected to be completed in September 2014 and its trial production will begin thereafter immediately. We expect that the Dalian facility will commence its commercial operations at the end of calendar year 2014. We have been actively working with the existing customers of BAK Tianjin on transfer of their orders to Dalian BAK Power. We have and will continue to outsource our customers’ orders to BAK Tianjin until our Dailian manufacturing facility begins its commercial operations.

It is our understanding that the Dalian government will continue to grant certain government subsidies to us, including but not limited to land use rights at a favorable price. During fiscal 2013, we received a subsidy of RMB150 million (approximately $24.2 million) from the Management Committee of Dalian Economic Zone, to finance our relocation of operating assets from Tianjin to Dalian. We obtained a short term bank loan of $4.8 million (RMB30 million) from Bank of Dandong for the period from August 19, 2014 to August 18, 2015. The short term bank loan is bearing a fixed interest rate at 7.8% per annum and guaranteed by Shenzhen BAK and Mr. Xiangqian Li. We plan to borrow additional funds from local banks to meet our cash demands. We believe with the significant reduction of liabilities and borrowing additional funds from local banks we can continue as a going concern.

For the three months ended June 30, 2014 and 2013, we recorded a net loss of $9.8 million and $10.3 million from our continuing operations, respectively. As of June 30, 2014, we had an accumulated deficit of $157.0 million and net liabilities of $19.5 million.

Third Quarter Financial Performance Highlights

The following are some financial highlights for the third quarter of our 2014 fiscal year:

• Net revenues: Net revenues increased by $2.4 million, or 5.3%, to $48.0 million for the three months ended June 30, 2014, from $45.6 million for the same period in 2013.
• Gross profit (loss): Gross profit was $4.3 million for the three months ended June 30, 2014, a change of $5.7 million from a gross loss of $1.4 million for the same period in 2013.
• Operating loss: Operating loss was $3.6 million for the three months ended June 30, 2014, an improvement of $4.1 million, or 53.2%, from an operating loss of $7.7 million for the same period in 2013.
• Net loss from continuing operations: Net loss from continuing operations was $9.8 million for the three months ended June 30, 2014, compared to $10.3 million for the same period in 2013.
• Income from discontinued operations: Income from discontinued operations was $46.9 million for the three months ended June 30, 2014, compared to nil for the same period in 2013.
• Fully diluted earnings (loss) per share: Fully diluted earnings per share was $2.94 for the three months ended June 30, 2014, as compared to fully diluted net loss per share of $0.81 for the same period in 2013.

Financial Statement Presentation

Net revenues. Our net revenues from our continuing operations of sale of batteries represent the invoiced value of our products sold, net of value added taxes, or VAT, sales returns, trade discounts and allowances. We are subject to VAT, which is levied on most of our products at the rate of 17% on the invoiced value of our products. A provision for sales returns is recorded as a reduction of revenue in the same period that revenue is recognized. The provision for sales returns represents our best estimate of the amount of goods that will be returned from our customers based on historical sales return data.

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Revenue from our discontinued operations represents rental income for commercial property leases and management and is recognized on a straight-line basis over the respective lease terms.

Cost of revenues. Cost of revenues consists primarily of material costs, employee remuneration for staff engaged in production activities, share-based compensation, depreciation and related expenses that are directly attributable to the production of products and our property leases and management. Cost of revenues also includes write-downs of inventory to lower of cost or market. Cost of revenues from the sales of battery packs includes the fees we pay to pack manufacturers for assembling our prismatic cells into battery packs.

Research and development expenses. Research and development expenses primarily consist of remuneration for R&D staff, share-based compensation, depreciation and maintenance expenses relating to R&D equipment, and R&D material costs.

Sales and marketing expenses. Sales and marketing expenses consist primarily of remuneration for staff involved in selling and marketing efforts, including staff engaged in the packaging of goods for shipment, advertising cost, depreciation, share-based compensation and travel and entertainment expenses. We do not pay slotting fees to retail companies for displaying our products, engaging in cooperative advertising programs, participating in buy-down programs or similar arrangements. No material estimates are required by management to determine our actual marketing or advertising costs for any period.

General and administrative expenses. General and administrative expenses consist primarily of employee remuneration, share-based compensation, professional fees, insurance, benefits, general office expenses and depreciation.

Property, plant and equipment impairment charges. Impairment charges consist primarily of impairment losses for long-lived assets. These losses reflect the amounts by which the carrying values of these assets exceed their estimated fair value as determined by their estimated future discounted cash flows.

Government grant income. We present the government subsidies received as part of other income unless the subsidies received are earmarked to compensate a specific expense, which have been accounted for by offsetting the specific expense, such as research and development expense or interest expenses. Unearned government subsidies received are deferred for recognition until the criteria for such recognition could be met. Grants applicable to land are amortized over the life of the depreciable facilities constructed on it. For research and development expenses, we match and offset the government grants with the expenses of the research and development activities as specified in the grant approval document in the corresponding period when such expenses are incurred.

Finance costs, net. Finance costs consist primarily of interest income, interest on bank loans and other borrowings and are net of capitalized interest.

Income taxes. Since Shenzhen BAK was acknowledged as a New and High technology enterprise, it is entitled to a preferential tax rate of 15% for each of the calendar years 2011, 2012, 2013 and up to October 2014. BAK Battery is subject to an income tax rate of 25%. Both companies did not incur any enterprise income tax for the calendar years 2013 and 2014 due to the current tax losses carried forward from calendar years 2011 and 2012. BAK Tianjin is currently paying no enterprise income tax due to cumulative tax losses. Dalian BAK Trading and Dalian BAK Power are subject to an income tax rate of 25%. Both companies did not incur any enterprise income tax since their establishment. Our former Canadian, German, Indian, and Hong Kong subsidiaries-BAK Canada, BAK Europe, BAK India and BAK International-are subject to profits tax in their respective countries at rates of 38%, 25%, 30%, and 16.5%, respectively. However, because they do not have any assessable income derived from or arising in those countries, they have not paid any such tax.

Pursuant to the Provisional Regulation of China on Value Added Tax and its implementing rules, all entities and individuals that are engaged in the sale of goods, the provision of repairs and replacement services and the importation of goods in China are generally required to pay VAT at a rate of 17% of the gross sales proceeds received, less any deductible VAT already paid or borne by the taxpayer. Further, when exporting goods, the exporter is entitled to some or all of the refund of VAT that it has already paid or borne. Our imported raw materials that are used for manufacturing exported products and deposited in bonded warehouses are exempt from import VAT.

Results of Operations

Comparison of Three Months Ended June 30, 2014 and 2013

The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of net revenues.

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(All amounts, other than percentages, in thousands of U.S. dollars)

		Three months ended June 30,						Change
		2013			2014			$		%
Net revenues	$	45,599		$	47,995		$	2,396		5.3
Cost of revenues		(46,986	)		(43,676	)		(3,310	)	(7.0	)
Gross (loss) profit		(1,387	)		4,319			5,706		411.4
Operating expenses:
Research and development expenses		1,135			1,469			334		29.4
Sales and marketing expenses		1,710			1,807			97		5.7
General and administrative expenses		4,655			3,921			(734	)	(15.8	)
(Recovery of) provision for doubtful accounts		(4,388	)		729			5,117		116.6
Impairment charge on property, plant and equipment		3,208			-			(3,208	)	(100.0	)
Total operating expenses		6,320			7,926			1,606		25.4
Operating loss		(7,707	)		(3,607	)		(4,100	)	(53.2	)
Finance costs, net		(3,455	)		(6,193	)		2,738		79.3
Recovery of loss from loan guarantees		809			-			(809	)	(100.0	)
Government grant income		113			22			(91	)	(80.1	)
Other income (expense)		27			(51	)		(78	)	(288.9	)
Loss before income tax and continuing operations		(10,213	)		(9,829	)		384		3.8
Income tax expenses		(58	)		-			(58	)	(100.0	)
Net loss from continuing operations, net of tax		(10,271	)		(9,829	)		(442	)	(4.3	)
Income from discontinued operations, net of tax		-			46,936			46,936		100.0
Net (loss) profit		(10,271	)		37,107			47,378		461.3

Net revenues. Net revenues were $48.0 million for the three months ended June 30, 2014, as compared to $45.6 million for the same period in 2013, an increase of $2.4 million, or 5.3%. This increase was primarily attributable to the increase in sales of battery packs by $13.6 million, or 88.5%, compared with the same period last year.

The following table sets forth the breakdown of our net revenues by battery cell type.

(All amounts in thousands of U.S. dollars)

		Three Months Ended June 30,
		2013		2014
Prismatic cells
Aluminum-case cells	$	7,565	$	3,361
Battery packs		15,415		29,051
Cylindrical cells		8,476		3,341
Lithium polymer cells		10,463		9,964
High-power lithium battery cells		3,680		2,278
Total	$	45,599	$	47,995

The following table sets forth the breakdown of our net revenues from sales of reconditioned and normal products for the three months ended June 30, 2014 and 2013, respectively.

(All amounts in thousands of U.S. dollars)

		Three Months Ended June 30, 2014
		Reconditioned sales		Normal sales		Total sales
Prismatic cells
Aluminum-case cells	$	169	$	3,192	$	3,361
Battery packs		2,254		26,797		29,051
Cylindrical cells		-		3,341		3,341
Lithium polymer cells		6,516		3,448		9,964
High-power lithium battery cells				2,278		2,278
Total	$	8,939	$	39,056	$	47,995

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		Three Months Ended June 30, 2013
		Reconditioned sales		Normal sales		Total sales
Prismatic cells
Aluminum-case cells	$	3,600	$	3,965	$	7,565
Battery packs		6,372		9,043		15,415
Cylindrical cells		-		8,476		8,476
Lithium polymer cells		3,143		7,320		10,463
High-power lithium battery cells		-		3,680		3,680
Total	$	13,115	$	32,484	$	45,599

Net revenues from sales of aluminum-case cells decreased to $3.4 million for the three months ended June 30, 2014, from $7.6 million in the same period in 2013, a decrease of $4.2 million, or 55.6%, resulting from a decrease of 60.2% in sales volume, partially offset by a a rise of 11.9% in average selling price. The decrease in sales volume was because of the continuing decrease in demand for aluminum-case cells in view of the popularity of polymer smartphone batteries and fewer reconditioned products sold in this period. We disposed of a large quantity of obsolete and low quality products at a lower selling price in the same corresponding period of last year.

Net revenues from sales of battery packs, which are a crucial component of smartphones, increased to $29.1 million in the three months ended June 30, 2014, from $15.4 million in the same period in 2013, an increase of $13.6 million, or 88.5% . This resulted from an increase of 31.8% in sales volume as well as an increase of 42.9% in average selling price. The increase in sales volume resulted from an increase in our main customers end-market sales. The increase in average selling price was because we sold more high value, high capacity batteries used in smartphones with long standby time and fewer reconditioned batteries to customers.

Net revenues from sales of cylindrical cells decreased to $3.3 million in the three months ended June 30, 2014, from $8.5 million in the same period in 2013, a decrease of $5.1 million, or 60.6% . This resulted from a decrease of 18.7% in sales volume accompanied by a decrease of 51.6% in average selling price. The decrease in sales volume and price were attributable to the fierce competition in cylindrical cells, especially from South Korean competitors. Our sales volume was adversely impacted by such competition and we had to reduce selling prices in order to remain competitive.

Lithium polymer cells are generally used for smart phones. We sold $10.0 million in lithium polymer cells for the three months ended June 30, 2014, compared to $10.5 million in lithium polymer cells in the same period in 2013, a decrease of $0.5 million, or 5.0%, resulting from a decrease of 21.1% in sales volume offset by an increase of 21.1% in average selling price. The decrease in sales volume was attributable to the fierce competition in the battery market. The increase in average selling price was because we disposed of obsolete and low quality products at a lower selling price in the same corresponding period of last year.

We also sold approximately $2.3 million in high-power lithium battery cells for the three months ended June 30, 2014, as compared to $3.7 million in high-power lithium battery cells in the same period in 2013, a decrease of $1.4 million, or 38.1%, resulting from a decrease of 60.2% in sales volume offset by an increase of 56.3% in average selling price. The light electric vehicle market, in particular the electric bicycle market, was turning to be more competitive, and we became more selective in customers and gave up low value customers while trying to retain higher end customers.

Cost of revenues. Cost of revenues decreased to $43.7 million for the three months ended June 30, 2014, as compared to $47.0 million for the same period in 2013, a decrease of $3.3 million, or 7.0% . Included in cost of revenues were write-downs of inventories of $3.1 million and $12.3 million for the three months end June 30, 2014 and 2013, respectively. We write down inventory value whenever there is an indication that it is impaired.

Gross profit (loss). Gross profit for the three months ended June 30, 2014 was $4.3 million, or 9.0% of net revenues, as compared to gross loss of $1.4 million, or 3.0% of net revenues, for the same period in 2013. Our improvement of gross profit was largely due to the decrease in write-downs of inventory and fewer reconditioned products being sold at a loss in this period, compared with the same period of 2013.

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Research and development expenses. Research and development expenses, which were offset with related government grants, increased to $1.5 million for the three months ended June 30, 2014, as compared to $1.1 million for the same period in 2013, an increase of $0.4 million, or 29.4% . This increase was mainly due to more temporary staff being employed and higher average salaries being paid to retain the existing technicians. In addition, there was an increase of $0.1 million in materials being consumed in R&D projects compared with the same period of 2013.

Sales and marketing expenses. Sales and marketing expenses increased to $1.8 million for the three months ended June 30, 2014, as compared to $1.7 million for the same period in 2013, a slight increase of $0.1 million, or 5.7% . As a percentage of revenues, sales and marketing expenses were 3.8% for both quarters.

General and administrative expenses. General and administrative expenses decreased to $3.9 million, or 8.2% of revenues, for the three months ended June 30, 2014, as compared to $4.7 million, or 10.2% of revenues, for the same period in 2013, a decrease of $0.7 million, or 15.8% . The decrease was mainly due to our continuing efforts to control costs.

Operating loss. As a result of the above, our operating loss totaled $3.6 million for the three months ended June 30, 2014, as compared to $7.7 million for the same period in 2013, a decrease of $4.1 million, or 53.2% .

Finance cost, net. Finance cost, net, increased to $6.2 million for the three months ended June 30, 2014, as compared to $3.5 million, for the same period in 2013, an increase of $2.7 million or 79.3% . In December 2013 and January 2014, we borrowed loans amounting $83.8 million (RMB 520 million) from the potential buyer of BAK International, Mr. Jinghui Wang, which bore 20% interest per annum. The increase was attributable to the interest expense of $5.2 million charged on the loans from Mr. Wang and other unrelated third parties while there was no such charge in the same period of 2013. However, the interest on bank borrowings decreased by $2.1 million due to repayment of most bank loans upon maturity during the period.

Recovery of loss from loan guarantees. Shenzhen Langjin Technology Development Co., Ltd or Shenzhen Langjin defaulted on bank loans guaranteed by us and the bank demanded full payment from us. We recovered a loss of $0.8 million during the three months ended June 30, 2013.

Income tax expense. Income tax expense was nil for the three months ended June 30, 2014, as compared to $0.06 million income tax expense for the same period in 2013 as we incurred a loss during the quarter ended June 30, 2014.

Income from discontinued operations, net of tax. Income from discontinued operations, net of tax, represents the income from the leasing and management of our Research and Development Centre of our former subsidiary in Shenzhen. During the three months ended June 30, 2014, this operation generated net income of $1.1 million. We recorded an accounting profit of $45.8 million as of June 30, 2014 on disposal of BAK International and its subsidiaries as a result of the foreclosure described above, which was mainly related to the market value appreciation of our Research and Development Centre.

Net profit (loss). As a result of the foregoing, we had a net profit of $37.1 million for the three months ended June 30, 2014, compared to a net loss of $10.3 million for the same period in 2013.

Comparison of Nine Months Ended June 30, 2014 and 2013

The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of net revenues.

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(All amounts, other than percentages, in thousands of U.S. dollars)

		Nine months ended June 30,						Change
		2013			2014			$		%
Net revenues	$	153,398		$	122,039		$	(31,359	)	(20.4	)
Cost of revenues		(162,577	)		(112,558	)		(50,019	)	(30.8	)
Gross (loss) profit		(9,179	)		9,481			18,660		203.3
Operating expenses:
Research and development expenses		3,995			3,981			(14	)	(0.4	)
Sales and marketing expenses		5,813			4,504			(1,309	)	(22.5	)
General and administrative expenses		13,744			11,913			(1,831	)	(13.3	)
Recovery of doubtful accounts		(5,088	)		(639	)		(4,449	)	(87.4	)
Impairment charge on property, plant and equipment		14,604			-			(14,604	)	(100.0	)
Total operating expenses		33,068			19,759			(13,309	)	(40.2	)
Operating loss		(42,247	)		(10,278	)		(31,969	)	(75.7	)
Finance costs, net		(7,894	)		(16,785	)		8,891		112.6
Loss from loan guarantees		(2,002	)		-			(2,002	)	(100.0	)
Government grant income		131			74			(57	)	(43.5	)
Other (expense) income		(29	)		636			(665	)	(2,293.1	)
Loss before income tax from continuing operations		(52,041	)		(26,353	)		(25,688	)	(49.4	)
Income tax expenses		(6,084	)		(16	)		(6,068	)	(99.7	)
Net loss from continuing operations, net of tax		(58,125	)		(26,369	)		(31,756	)	(54.6	)
Income from discontinued operations, net of tax		-			48,928			48,928		100.0
Net (loss) profit	$	(58,125	)	$	22,559		$	(80,684	)	(138.8	)

Net revenues. Net revenues were $122.0 million for the nine months ended June 30, 2014, as compared to $153.4 million for the same period in 2013, a decrease of $31.4 million, or 20.4% . This decrease was primarily attributable to a decrease in sales from cylindrical cells of $29.5 million, or 76.1% for the nine months end June 30, 2014 as compared to the same period last year.

The following table sets forth the breakdown of our net revenues by battery cell type.

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(All amounts in thousands of U.S. dollars)

		Nine Months Ended June 30,
		2013		2014
Prismatic cells
Aluminum-case cells	$	25,868	$	24,486
Battery packs		55,237		61,800
Cylindrical cells		38,767		9,278
Lithium polymer cells		20,314		17,146
High-power lithium battery cells		13,212		9,329
Total	$	153,398	$	122,039

The following table sets forth the breakdown of our net revenues from sales of reconditioned and normal products for the nine months ended June 30, 2014 and 2013, respectively.

(All amounts in thousands of U.S. dollars)

		Nine Months Ended June 30, 2014
		Reconditioned sales		Normal sales		Total sales
Prismatic cells
Aluminum-case cells	$	18,709	$	5,777	$	24,486
Battery packs		8,545		53,255		61,800
Cylindrical cells		-		9,278		9,278
Lithium polymer cells		12,782		4,364		17,146
High-power lithium battery cells		-		9,329		9,329
Total	$	40,036	$	82,003	$	122,039

		Nine Months Ended June 30, 2013
		Reconditioned sales		Normal sales		Total sales
Prismatic cells
Aluminum-case cells	$	16,595	$	9,273	$	25,868
Battery packs		16,565		38,672		55,237
Cylindrical cells		-		38,767		38,767
Lithium polymer cells		9,054		11,260		20,314
High-power lithium battery cells		-		13,212		13,212
Total	$	42,214	$	111,184	$	153,398

Net revenues from sales of aluminum-case cells decreased to $24.5 million for the nine months ended June 30, 2014, from $25.9 million in the same period in 2013, a decrease of $1.4 million, or 5.3%, resulting from a decrease of 42.7% in sales volume offset by an increase of 63.5% in average selling price. The decrease in sales volume was because of the continuing decrease in demand for aluminum-case cells in view of the popularity of polymer smartphone batteries in this period. The increase in average selling price was because we disposed of a large quantity of obsolete and low quality products at a lower selling price in the same corresponding period of last year.

Net revenues from sales of battery packs increased to $61.8 million in the nine months ended June 30, 2014, from $55.2 million in the same period in 2013, an increase of $6.6 million, or 11.9% . This resulted from an increase of 0.3% in sales volume offset by an increase of 11.6% in average selling price. The increase in sales price was mainly attributable to fewer reconditioned products sold as well as more high value batteries used in smartphones with higher capacity and long standby time requirements sold for the nine months ended June 30, 2014 as compared to the same period last year.

Net revenues from sales of cylindrical cells decreased to $9.3 million in the nine months ended June 30, 2014, from $38.8 million in the same period in 2013, a decrease of $29.5 million, or 76.1% . This resulted from a decrease of 68.1% in sales volume accompanied with a decrease of 24.9% in average selling price. The decrease in sales volume and price were attributable to the fierce competition in cylindrical cells, especially from South Korean competitors.

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We sold $17.1 million in lithium polymer cells for the nine months ended June 30, 2014, compared to $20.3 million in lithium polymer cells in the same period in 2013, a decrease of $3.2 million, or 15.6%, resulting from a decrease of 16.6% in sales volume offset by a slight increase of 1.2% in average selling price. The decrease in sales volume was attributable to the fierce competition in the battery market.

We also sold approximately $9.3 million in high-power lithium battery cells for the nine months ended June 30, 2014, as compared to $13.2 million in high-power lithium battery cells in the same period in 2013, a decrease of $3.9 million, or 29.4%, resulting from a decrease of 45.9% in sales volume offset by an increase of 30.2% in average selling price. The light electric vehicle market, in particular the electric bicycle market, is becoming more competitive, and we became more selective in customers and gave up low value customers while trying to retain higher end customers.

Cost of revenues. Cost of revenues decreased to $112.6 million for the nine months ended June 30, 2014, as compared to $162.6 million for the same period in 2013, a decrease of $50.0 million, or 30.8% . Included in cost of revenues were write-downs of inventories of $38.1 million and $8.8 million for the nine months ended June 31, 2013 and 2014, respectively. We write down inventory value whenever there is an indication that it is impaired.

Gross profit (loss). Gross profit for the nine months ended June 30, 2014 was $9.5 million, or 7.8% of net revenues, as compared to a gross loss of $9.2 million, or 6.0% of net revenues, for the same period in 2013. Our change in gross profit was largely due to the decrease in write-downs of inventory and fewer reconditioned products being sold at a loss in this period, compared with the same period of 2013.

Research and development expenses. Research and development expenses, which were offset with related government grants, were $4.0 million in both the nine months ended June 30, 2014 and 2013.

Sales and marketing expenses. Sales and marketing expenses decreased to $4.5 million for the nine months ended June 30, 2014, as compared to $5.8 million for the same period in 2013, a decrease of $1.3 million, or 22.5% . As a percentage of revenues, sales and marketing expenses were 3.7% and 3.8% for the nine months ended June 30, 2014 and 2013, respectively.

General and administrative expenses. General and administrative expenses decreased to $11.9 million, or 9.8% of revenues, for the nine months ended June 30, 2014, as compared to $13.7 million, or 9.0% of revenues, for the same period in 2013, a decrease of $1.8 million, or 13.3% . The decrease was mainly due to our continuing efforts to control costs.

Operating loss. As a result of the above, our operating loss totaled $10.3 million for the nine months ended June 30, 2014, as compared to $42.2 million for the same period in 2013, a decrease of $32.0 million, or 75.7% .

Finance cost, net. Finance cost, net, increased to $16.8 million for the nine months ended June 30, 2014, as compared to $7.9 million, for the same period in 2013, an increase of $8.9 million or 112.6% . In December 2013 and January 2014, we borrowed loans amounting $83.8 million (RMB 520 million) from the potential buyer of BAK International, Mr. Jinghui Wang, which bore 20% interest per annum. The increase was attributable to the interest expense of $11.7 million charged on the loans from Mr. Wang and other unrelated third parties while there was no such charge in the same period of 2013. However, the interest on bank borrowings decreased by $2.2 million due to repayment of most bank loans upon maturity during the period.

Loss arising from loan guarantees. Shenzhen Langjin defaulted on bank loans guaranteed by us and the bank demanded full payment from us. We recognized such loss of $2.0 million for the nine months ended June 30, 2013. We recovered these amounts later in fiscal 2013 and no such loss was incurred in the nine months ended June 30, 2014.

Income tax expense. Income tax expense was approximately $0.02 million for the nine months ended June 30, 2014, as compared to $6.1 million income tax expense for the same period in 2013. We recorded an allowance of $5.8 million for our deferred tax assets in the same period of last year as we expected that we would not be entitled to the tax benefit in the future.

Income from discontinued operations, net of tax. Incomes from discontinued operations, net of tax represent the income from the leasing and management of our Research and Development Centre in Shenzhen. During the nine months ended June 30, 2014, this operation generated a net income of $3.1 million. We recorded an accounting profit of $45.8 million as of June 30, 2014 on disposal of BAK International and its subsidiaries as a result of the foreclosure described above, which was mainly related to the market value appreciation of our Research and Development Centre.

10

Net profit (loss). As a result of the foregoing, we had a net profit of $22.6 million for the nine months ended June 30, 2014, compared to a net loss of $58.1 million in the same period of last year.

Liquidity and Capital Resources

Before the foreclosure of the pledged ownership of BAK International, we had historically financed our liquidity requirements from a variety of sources, including short-term bank loans, other short-term loans and bills payable under bank credit agreements, factoring of bills receivable to banks and issuance of capital stock.

After the foreclosure of the pledged ownership of BAK International and as of June 30, 2014, we had cash and cash equivalents of $0.3 million. Our total current assets were $1,888,066 and our total current liabilities were $33,488,842, which results in a net working capital deficiency of $31,600,776. These factors raise substantial doubts about our ability to continue as a going concern. It is our understanding that the Dalian government will continue to grant certain government subsidies to us, including but not limited to land use rights at a favorable price. As of June 30, 2014, we had received from the Management Committee of Dalian Economic Zone of $24,176,781 to finance the relocation of our operating assets from Tianjin to Dalian. We expect that the relocation will be completed by the end of 2014 and we will recognize these advances as income or offset them against related expenditures when there are no present or future obligations for the subsidized projects. We obtained a short term bank loan of $4.8 million (RMB30 million) from Bank of Dandong for the period from August 19, 2014 to August 18, 2015. The short term bank loan is bearing fixed interest at 7.8% per annum and was guaranteed by Shenzhen BAK and Mr. Xiangqian Li.

We may require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. We plan to borrow additional funds from local banks to meet the Company’s cash needs. However, there can be no assurance that we will be successful in obtaining this financing. If our existing cash and bank borrowing is insufficient to meet our requirements, we may seek to sell equity securities, debt securities or borrow from lending institutions. We also will continue to reinforce our efforts to improve the collection of receivables. We can make no assurances that financing will be available in the amounts we need or on terms acceptable to us, if at all, or our collection of receivables will improve. The sale of equity securities, including convertible debt securities, would dilute the interests of our current shareholders. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer.

Cash Flows
(All amounts in thousands of U.S. dollars)

		Nine Months Ended
		June 30,
		2013			2014
Net cash provided by (used in) operating activities	$	43,151		$	(19,431	)
Net cash (used in) investing activities		(42,002	)		(7,942	)
Net cash (used in) provided by financing activities		(486	)		13,597
Effect of exchange rate changes on cash and cash equivalents		467			49
Net increase (decrease) in cash and cash equivalents		1,130			(13,727	)
Cash and cash equivalents at the beginning of period		9,272			13,999
Cash and cash equivalents at the end of period	$	10,402		$	272

Operating Activities

Net cash used in operating activities was $19.4 million in the nine months ended June 30, 2014, as compared with $43.2 million in net cash provided by operating activities in the same period in 2013. The increase of $62.6 million in net cash used in operating activities was mainly attributable to the increase of cash outflow to accounts receivable by $45.0 million and increase in settlement of accounts and bills payable by $21.5 million.

Investing Activities

Net cash used in investing activities decreased to $7.9 million in the nine months ended June 30, 2014 from $42.0 million in the same period in 2013. The decrease of $34.1 million in net cash used in investing activities for the nine months ended June 30, 2014 was mainly attributable to the reduction in purchase of property, plant and equipment by $16.9 million after the completion of the construction of Nanshan R&D Centre in July 2013 and the decrease of placement of pledged deposits by $15.6 million after settlement of bills payable.

11

Financing Activities

Net cash provided by financing activities was $13.6 million in the nine months ended June 30, 2014, compared to $0.5 million in net cash used in financing activities during the same period in 2013. The increase in net cash provided by financing activities was mainly attributable to the increase in new borrowings from unrelated third parties and banks of $39.6 million, offset by an increase in repayment of borrowings from unrelated third parties and bank of $25.5 million.

Capital Expenditures

We incurred capital expenditures of $11.8 million and $32.4 million in the nine months ended June 30, 2014 and 2013, respectively. Our capital expenditures were used primarily to purchase plant and equipment to expand our production capacity and lease hold improvement to our R&D Center in Shenzhen and construction of Dalian facility. The table below sets forth the breakdown of our capital expenditures by use for the periods indicated.

(All amounts in thousands of U.S. dollars)

		Nine Months Ended June 30,
		2013		2014
Purchase of property, plant and equipment and construction in progress	$	32,037	$	11,754
Purchase of intangible assets		370		16
Total capital expenditure	$	32,407	$	11,770

We estimate that our total capital expenditures in fiscal year 2014 will be approximately $22.9 million. Such funds will be used for the construction of the production plant at our Dalian facility.

Contractual Obligations and Commercial Commitments

The following table sets forth our contractual obligations and commercial commitments as of June 30, 2014:

(All amounts in thousands of U.S. dollars)

		Payments due by period
				Less than		1-3		3-5		More than
Obligations		Total		1 year		years		years		5 years
Capital injection to Dalian Power	$	25,000	$	25,000	$	-	$	-	$	-
Other short-term loans		24,177		24,177		-		-		-
Capital commitments		11,120		11,120		-		-		-
Total	$	60,297	$	60,297	$	-	$	-	$	-

Other than the contractual obligations and commercial commitments set forth above, we did not have any other long-term debt obligations, operating lease obligations, capital commitments, purchase obligations or other long-term liabilities as of June 30, 2014.

Off-Balance Sheet Transactions

After the foreclosure of BAK International and as of June 30, 2014, we had no off-balance sheet transactions.

Critical Accounting Policies

Our condensed consolidated financial information has been prepared in accordance with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect (1) the reported amounts of our assets and liabilities, (2) the disclosure of our contingent assets and liabilities at the end of each fiscal period and (3) the reported amounts of revenues and expenses during each fiscal period. We continually evaluate these estimates based on our own historical experience, knowledge and assessment of current business and other conditions, our expectations regarding the future based on available information and reasonable assumptions, which together form our basis for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. There have been no material changes to the critical accounting policies previously disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013.

12

Changes in Accounting Standards

Please refer to note 1 to our condensed consolidated financial statements, “Principal Activities, Basis of Presentation and Organization –Recently Issued Accounting Standards,” for a discussion of relevant pronouncements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

During and subsequent to the reporting period covered by this report, and under the supervision and with the participation of our chief executive officer and interim chief financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter ended June 30, 2014, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our chief executive officer and interim chief financial officer have concluded that our disclosure controls and procedures were not effective.

Management evaluated the effectiveness of our disclosure controls and procedures for the fiscal quarter ended June 30, 2014, under the supervision and with the participation of our chief executive officer and interim chief financial officer, and identified the following material weaknesses in our internal control over financial reporting

• We did not have appropriate policies and procedures in place to evaluate the proper accounting and disclosures of key documents and agreements.
• We do not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of accounting principles generally accepted in the United States commensurate with our financial reporting requirements.

In order to cure the foregoing material weakness, we have taken or are taking the following remediation measures:

• We are in the process of hiring a permanent chief financial officer with significant U.S. GAAP and SEC reporting experience; and
• We plan to make necessary changes by providing training to our financial team and our other relevant personnel on the U.S. GAAP accounting guidelines applicable to our financial reporting requirements.

Although we intend to complete the remediation of the material weaknesses discussed above before September 30, 2014, we can give no assurance that we will be able to do so. Designing and implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address the material weakness that we have identified, and material weaknesses in our disclosure controls and procedures may be identified in the future. Should we discover such conditions, we intend to remediate them as soon as practicable. We are committed to taking appropriate steps for remediation, as needed.

13

Changes in Internal Control over Financial Reporting

Except for the matters described above, there were no changes in our internal controls over financial reporting during the third quarter of our fiscal year 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

14

PART II
OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. Other than the legal proceeding set forth below, we are currently not aware of any such legal proceedings or claims that we believe will have an adverse effect on our business, financial condition or operating results:

China BAK Battery, Inc. has been named as a second defendant in the case of Safeco Ins. Co. of Am. v. Hewlett-Packard Co. et al., filed in the Superior Court of the State of California, County of Ventura. It is an action for negligence and strict product liability. The plaintiff alleges that a product manufactured by the Company was used in a Hewlett Packard laptop, which malfunctioned and caused fire damage in the home of a consumer (the plaintiff’s insured). The total damages sought are $126,978, plus interest and fees. The Company believes that the plaintiff’s claims are without merit and intends to vigorously defend itself in this lawsuit.

An individual named Steven R. Ruth filed suit against China BAK Battery, Inc. in United States District Court for the Western District of Texas in 2013 alleging breach of contract. The company did not receive notice of this lawsuit and the plaintiff sought a default judgment, which the court granted in January 2014. Accordingly, the court entered judgment in favor of Mr. Ruth in the amount of $442,629.21. The company later learned of the existence of both the lawsuit and the default judgment and it is seeking to have the default judgment vacated so it will have the opportunity to defend against the lawsuit. The Company believes that the plaintiff’s claims are without merit and intends to vigorously defend itself in this lawsuit.

ITEM 1A. RISK FACTORS.

This “Risk Factors” section provides the following new risk factor to the “Risk Factors” set forth in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013, which was filed with the SEC on January 14, 2014.

Our failure to timely complete the construction of our Dalian facility and commence its commercial operations could negatively affect our business operations.

We are currently constructing our Dalian facility and relocating most of the operating assets, including machinery and equipment, as well as the customers, employees, patents and technologies from BAK Tianjin to the Dalian facility. The construction is expected to be completed by September and commercial operation is expected to begin by the end of calendar year 2014, but we cannot give assurance that the construction will be completed as scheduled or, without cost overrun. Even if the construction is completed on a timely basis, we cannot give assurance that the commercial operation can begin as scheduled. In addition, we may not be able to attract a sufficient number of skilled workers to meet the needs of the new facility. If we experience delays in construction or commencement of commercial operations, increased costs or lack of skilled labor, or other unforeseen events occur, our business, financial condition and results of operations could be adversely impacted. Operating results could also be unfavorably impacted by start-up costs until production at the new facility reaches planned levels.

We rely on BAK Tianjin, our former subsidiary, for all of our battery production prior to the commercial operations of our Dalian facility and our operations could be materially adversely affected if we fail to effectively manage our relationships with, or lose the services of, BAK Tianjin.

As we are currently constructing our Dalian facility, we have been actively working with the existing customers of BAK Tianjin to transfer of their orders to Dalian BAK Power. In addition, before the Dalian manufacturing facility commences its commercial operation, which is expected to be the end of calendar 2014, we expect to generate revenues by outsourcing our customers’ orders to BAK Tianjin.

Although we are negotiating on the terms of the outsourcing arrangements with BAK Tianjin, there is no assurance that we will be able to enter into written contracts with BAK Tianjin. If our business relationship with BAK Tianjin changes negatively or BAK Tianjin’s financial condition deteriorates, our business may be harmed in many ways. BAK Tianjin may unilaterally terminate battery supply to us or increase the prices. As a result, we are not assured of an uninterrupted supply of batteries of acceptable quality or at acceptable prices from BAK Tianjin. We may not be able to substitute suitable alternative contract manufacturers in a timely manner on commercially acceptable term or at all. We may be forced to default on the agreements with our customers. This may negatively impact our revenues and adversely affect our reputation and relationships with our customers, causing a material adverse effect on our financial condition, results of operations and prospects.

15

If we fail to comply with the Nasdaq continued listing standards, our common stock could be delisted from the Nasdaq Stock Market, which could negatively impact the price of our common stock and our ability to access the capital markets.

Our common stock is currently listed on the Nasdaq Global Market, which imposes both objective and subjective requirements for continued listing. Continued listing criteria include the financial condition of the company, market capitalization, shareholder equity, total assets, annual revenue, and share price. There can be no assurance that we will satisfy the continued listing requirements of the Nasdaq Stock Market or that we will continue to be listed on any exchange.

If the Nasdaq listing staff determine that we fail to satisfy the requirements for continued listing, we could be de-listed from the exchange. The delisting of our common stock would significantly affect the ability of investors to trade our securities and could significantly negatively affect the value and liquidity of our common stock. In addition, the delisting of our common stock could materially adversely affect our ability to raise capital on terms acceptable to us or at all. Delisting from Nasdaq could also have other negative results, including the loss of potential investor interest and fewer business development opportunities.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

The following exhibits are filed as part of this report or incorporated by reference:

Exhibit No.	Description
31.1	Certifications of Principal Executive Officer and Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Deed of Waiver and Release, dated July 4, 2014, by and among, Shenzhen BAK, the Company, BAK International and Mr. Wang.

16

Exhibit No.	Description
101	Interactive data files pursuant to Rule 405 of Regulation S-T (furnished herewith).

17

SIGNATURES

      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 thereunto duly authorized.

Date: August 19, 2014

CHINA BAK BATTERY, INC.

By: /s/ Xiangqian Li                                           
       Xiangqian Li
       Chief Executive Officer and Interim Chief Financial Officer

18

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certifications of Principal Executive Officer and Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Deed of Waiver and Release, dated July 4, 2014, by and among, Shenzhen BAK, the Company, BAK International and Mr. Wang.
101	Interactive data files pursuant to Rule 405 of Regulation S-T (furnished herewith).

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Xiangqian Li, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of China BAK Battery, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 19, 2014

/s/ Xiangqian Li

Xiangqian Li

Chief Executive Officer and Interim Chief

Financial Officer

(Principal Executive Officer, Principal

Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

     The undersigned, Xiangqian Li, the Chief Executive Officer and Interim Chief Financial Officer of CHINA BAK BATTERY, INC. (the “Company”), DOES HEREBY CERTIFY that:

     1.      The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

     2.      Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

     IN WITNESS WHEREOF, the undersigned has executed this statement this 19^th day of August, 2014.

/s/ Xiangqian Li

Xiangqian Li

Chief Executive Officer and Interim Chief Financial Officer

(Principal Executive Officer, Principal Financial and

Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to China BAK Battery, Inc. and will be retained by China BAK Battery, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-99.1

Exhibit 99.1

THIS DEED OF WAIVER AND RELEASE is made the 4^th day of July 2014.

BETWEEN :-

(1)	SHENZHEN BAK BATTERY CO., LTD (深圳市比克電池有限公司), of 深圳市龍崗區葵涌街道比克工業園, a company incorporated under the laws of the People’s Republic of China, as borrower (the “Borrower”);
(2)	CHINA BAK BATTERY, INC., of 2215-B Renaissance Drive, Las Vegas, NV89119, USA, a company incorporated under the laws of the State of Nevada, the United States of America, as mortgagor (the “China BAK”) ;
(3)	BAK INTERNATIONAL LIMITED, of Room 1201, 12th Floor, Wing On Centre, No.111 Connaught Road Central, Hong Kong, a company incorporated under the laws of Hong Kong with registration number 877123 (the “Company”); and
(4)	MR. Wang Jinghui (王景輝), of 深圳市福田區香蜜湖僑香路金地香蜜山 5 棟 7C, holder of PRC Identity Card No.152601196905183632, as lender (the “Lender” or “Covenantor”).

WHEREAS :-

(A)	By a loan agreement (“Loan Agreement”) dated 17th December 2013 and a supplemental loan agreement (“Supplemental Loan Agreement”) dated 8th January 2014 (the Loan Agreement and the Supplemental Loan Agreement are collectively referred to as “Loan Agreements”), the Lender advanced the total sum of RMB520,000,000 to the Borrower on terms as set out in the Loan Agreements.
(B)	Pursuant to the terms of the Loan Agreements, the following documents were executed in favour of the Lender as security for repayment of the loans and interests accrued thereon:
	Corporate Guarantees

(1) Corporate Guarantee dated 10^th January 2014 executed by China BAK as Guarantor in favour of the Lender;

(2)	Corporate Guarantee dated 10th January 2014 executed by Bak International Limited as Guarantor in favour of the Lender;
(3)	Corporate Guarantee dated 14th March 2014 executed by China BAK as Guarantor in favour of the Lender;
(4)	Corporate Guarantee dated 14th March 2014 executed by Bak International Limited as Guarantor in favour of the Lender;

(the above items (1), (2), (3) and (4) are collectively referred to as “Corporate Guarantees”)

Collateral (Share Mortgages)

(5)	Share Mortgage dated 10th January 2014 executed by China BAK as Mortgagor in favour of the Lender;
(6)	Further Share Mortgage dated 14th March 2014 executed by China BAK as Mortgagor in favour of the Lender; and
(7)	Confirmation and Second Further Share Mortgage dated 23rd June 2014 executed by China BAK as Mortgagor in favour of the Lender.

	(The above items (5), (6) and (7) are collectively referred to as “Collateral”)
(C)	The Borrower defaulted in repaying the loans and accrued interests in the total sum of RMB 571,263,440.86 (RMB520,000,000.00 being the Principal and RMB51,263,440.86 being the interest accrued upto 30th June 2014) to the Lender.
(D)	The Lender has exercised his rights and powers conferred under the Collateral to sell or otherwise dispose (the “Disposal”) of the entire issued share capital in the Company to Asia Zhi Li New Energy Holding Limited at the consideration of RMB520,000,000.00;
(E)	Completion of the Disposal took place on [30th June 2014]. Particulars of the statement of accounts of the Disposal and application of the proceeds of the Disposal for the repayment of the loans and accrued interests are annexed hereto as Schedule 1.
(F)	According to Schedule 1, the Borrower still owes the Lender the total sum of RMB51,263,440.86 (the “Debt”) as at [30th June 2014] after the application of the proceeds of the Disposal for repayment of the loans and accrued interests.

(G) The Lender hereby hereto agrees to waive all of his title, rights, interests and benefits of and in the Debt.

NOW THIS DEED WITNESSETH as follows :-

(1)	The Covenantor as legal and beneficial owner hereby absolutely waives all its title, rights, interests and benefits in and to the Debt with immediate effect in favour of the Borrower to the intent that the obligations of the Borrower under the Debt owing to the Covenantor shall be absolutely discharged and released from the date of this Deed.
(2)	The Covenantor hereby confirms and acknowledges that China BAK and the Company shall be released and discharged from their obligations under all Corporate Guarantees executed by them in favour of the Lender with immediate effect from this Deed.
(3)	Each party hereto confirms and acknowledges that they shall have no claim whatsoever against any parties or party hereto arising out of or in connection with or incidental to the Loan Agreements, the Corporate Guarantees, the Collateral and the Disposal. If there is any claims arising therefrom, each party hereto covenants to waive such claims absolutely.
(4)	The Covenantor hereby warrants that :-

(a)	the Debt is duly and validly owing by the Borrower to the Covenantor;
(b)	Save as the Debt, there is no other debt, liability (whether actual or contingent) owing by the Borrower to the Covenantor;
(c)	the Covenantor is the legal and beneficial owners of the Debt and has full power and authority to enter into this Deed and waive the Debt without any consent or approval from any third party;

(d)	the Debt is hereby waived in favour the Borrower free from any charge, lien and encumbrances; and
(e)	the Covenantor will forthwith after being called upon by the Borrower so to do execute all further assurances and do all acts and deeds as may be reasonably required by the Borrower to perfect the effect and validity of this Deed.

(5)	The Borrower hereby acknowledges and confirms that due notice in writing of the waiver of the Debt has been received by the Borrower and as from the date hereof, the Debt has been waived by the Covenantor absolutely.
(6)	This Deed shall be binding upon and enure for the benefit of each party's successors and assigns. Each of the parties shall execute, do and perform or procure to be executed, done and performed by other necessary persons all such further acts, agreements, assignments, assurances, deeds and documents as any other party may reasonably require to give full effect to the provisions of this Deed.
(7)	This Deed shall be governed by and construed in accordance with Hong Kong law and the parties hereby irrevocably submit to the non-exclusive jurisdiction of the Hong Kong courts.

IN WITNESS whereof the parties hereto have executed this Deed the day and year first above written.

The Borrower
SHENZHEN BAK BATTERY CO., LTD.,	)
(深圳市比克電池有限公司)	)
has executed and delivered this Deed	)
by its legal representative Mr Li Xiangqian	)
who has been duly authorised by a resolution	)
of the Board of Directors	)
in the presence of	) /s/ Xiangqian Li
	Mr Li Xiangqian,

CHINA BAK BATTERY, INC.
CHINA BAK BATTERY, INC., has	)
executed and delivered this Deed by	)
its authorised officer Mr Li Xiangqian	)
(Chairman, President and	)
Chief Executive Officer) who has been	)
duly authorised by a resolution	)
of the Board of Directors	)
in the presence of	) /s/ Xiangqian Li
	Mr Li Xiangqian,

The Company
SEALED with the COMMON SEAL of	)
BAK INTERNATIONAL LIMITED	)
and signed by	)
	)
its director duly authorised by a	)
resolution of the Board of Directors	)
in the presence of	) /s/ Xiangqian Li
	Director

The Lender
Signed, Sealed and Delivered by the Lender	)
Mr. Wang Jinghui (王景輝)	)
Holder of PRC Identity Card No.	)
152601196905183632	)
in the presence of	) /s/ Jinghui Wang
	Mr. Wang Jinghui (王景輝)

SCHEDULE 1

STATEMENT OF ACCOUNTS

DISPOSAL OF ENTIRE ISSUED SHARE CAPITAL IN

BAK INTERNATIONAL LIMITED AND

REPAYMENT OF LOAN AND INTEREST

Proceeds of the Disposal	RMB520,000,000.00
Less:
The Principal	RMB520,000,000.00
Interest accrued upto 30th June 2014	RMB51,263,440.86
Outstanding amount	RMB51,263,440.86

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(Loss) Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2014

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

		Three months ended June 30,						Nine months ended June 30,
		2013			2014			2013			2014
Net (loss) profit
- From continuing operations	$	(10,270,681	)	$	(9,829,430	)	$	(58,124,808	)	$	(26,368,149	)
- From discontinued operations		-			46,936,251			-			48,928,143
		(10,270,681	)		37,106,821			(58,124,808	)		22,559,994
Weighted average shares used in basic and diluted computation		12,619,597			12,619,597			12,619,597			12,619,597
(Loss) earnings per share – Basic and diluted
- From continuing operations		(0.81	)		(0.78	)		(4.61	)		(2.09	)
- From discontinued operations		-			3.72			-			3.88
(Loss) earnings per share – Basic and diluted	$	(0.81	)	$	2.94		$	(4.61	)	$	1.79

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Share-based Compensation (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014 Y
Share-based Compensation 1	800,000
Share-based Compensation 2	1,600,000
Share-based Compensation 3	385,640
Share-based Compensation 4	$ 14.05
Share-based Compensation 5	7
Share-based Compensation 6	$ 2.35
Share-based Compensation 7	$ 14.05
Share-based Compensation 8	$ 12.30
Share-based Compensation 9	57,328
Share-based Compensation 10	10,498
Share-based Compensation 11	214,351
Share-based Compensation 12	64,604
Share-based Compensation 13	10,498
Share-based Compensation 14	0.25
Share-based Compensation 15	20,000
Share-based Compensation 16	$ 12.15
Share-based Compensation 17	7.5
Share-based Compensation 18	2.35
Share-based Compensation 19	$ 12.15
Share-based Compensation 20	$ 7.05
Share-based Compensation 21	1,373
Share-based Compensation 22	0
Share-based Compensation 23	8,703
Share-based Compensation 24	0
Share-based Compensation 25	100,000
Share-based Compensation 26	$ 14.05
Share-based Compensation 27	20,642
Share-based Compensation 28	4,026
Share-based Compensation 29	74,875
Share-based Compensation 30	23,002
Share-based Compensation 31	$ 596
Share-based Compensation 32	0.25

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Intangible Assets, net (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Intangible Assets, Net 1	$ 146,002
Intangible Assets, Net 2	59,601
Intangible Assets, Net 3	232,819
Intangible Assets, Net 4	$ 154,662

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SCHEDULE OF FACILITIES SECURED BY THE COMPANY'S ASSETS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 1	$ 24,505,399
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 2	0
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 3	31,392,774
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 4	0
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 5	12,211,038
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 6	0
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 7	87,763,440
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 8	0
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 9	43,143,525
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 10	0
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 11	17,857,940
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 12	0
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 13	216,874,116
Short-term Bank Loans Schedule Of Facilities Secured By The Company's Assets 14	$ 0

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(Loss) Earnings Per Share (Narrative) (Details)	9 Months Ended
	Jun. 30, 2014
(loss) Earnings Per Share 1	4,200
(loss) Earnings Per Share 2	100,000
(loss) Earnings Per Share 3	246,151
(loss) Earnings Per Share 4	100,000

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SCHEDULE OF VALUATION OF OPTIONS GRANTED ON June 22, 2009 (Details) (USD $)	9 Months Ended
	Jun. 30, 2014 Y
Share-based Compensation Schedule Of Valuation Of Options Granted On June 22, 2009 1	111.03%
Share-based Compensation Schedule Of Valuation Of Options Granted On June 22, 2009 2	$ 0
Share-based Compensation Schedule Of Valuation Of Options Granted On June 22, 2009 3	7
Share-based Compensation Schedule Of Valuation Of Options Granted On June 22, 2009 4	3.69%

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Property, Plant and Equipment, net (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Property, Plant And Equipment, Net 1	$ 605,648
Property, Plant And Equipment, Net 2	26,943
Property, Plant And Equipment, Net 3	1,975,311
Property, Plant And Equipment, Net 4	345,443
Property, Plant And Equipment, Net 5	3,200,000.0
Property, Plant And Equipment, Net 6	$ 14,600,000.0

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Intangible Assets, net (Tables)

9 Months Ended

Jun. 30, 2014

SDCHEDULE OF INTANGIBLE ASSETS [Table Text Block]

		September 30, 2013			June 30, 2014
Trademarks, computer software and technology	$	1,430,756		$	-
Less: Accumulated amortization		(699,872	)		-
	$	730,884		$	-

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SCHEDULE OF SUMMARY OF SHARE OPTION PLAN ACTIVITY June 30, 2014 (Details) (USD $)	9 Months Ended
	Jun. 30, 2014 Y
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 1	$ 20,000
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 2	12.15
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 3	4
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 4	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 5	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 6	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 7	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 8	(20,000)
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 9	12.15
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 10	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 11	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 12	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 13	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 14	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 15	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 16	0
Share-based Compensation Schedule Of Summary Of Share Option Plan Activity June 30, 2014 17	$ 0

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SCHEDULE OF GOVERNMENT SUBSIDIARIES (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Deferred Government Grants Schedule Of Government Subsidiaries 1	$ 24,505,399
Deferred Government Grants Schedule Of Government Subsidiaries 2	24,176,781
Deferred Government Grants Schedule Of Government Subsidiaries 3	8,145,594
Deferred Government Grants Schedule Of Government Subsidiaries 4	0
Deferred Government Grants Schedule Of Government Subsidiaries 5	340,217
Deferred Government Grants Schedule Of Government Subsidiaries 6	0
Deferred Government Grants Schedule Of Government Subsidiaries 7	14,448,005
Deferred Government Grants Schedule Of Government Subsidiaries 8	0
Deferred Government Grants Schedule Of Government Subsidiaries 9	32,252
Deferred Government Grants Schedule Of Government Subsidiaries 10	0
Deferred Government Grants Schedule Of Government Subsidiaries 11	47,471,467
Deferred Government Grants Schedule Of Government Subsidiaries 12	24,176,781
Deferred Government Grants Schedule Of Government Subsidiaries 13	(24,525,004)
Deferred Government Grants Schedule Of Government Subsidiaries 14	(24,176,781)
Deferred Government Grants Schedule Of Government Subsidiaries 15	22,946,463
Deferred Government Grants Schedule Of Government Subsidiaries 16	$ 0

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Significant Concentrations (Narrative) (Details)	9 Months Ended
	Jun. 30, 2014
Significant Concentrations 1	10.00%
Significant Concentrations 2	10.00%
Significant Concentrations 3	10.00%
Significant Concentrations 4	10.00%
Significant Concentrations 5	10.00%

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SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 1	$ 5,530,324
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 2	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 3	5,365,802
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 4	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 5	865,002
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 6	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 7	(11,761,128)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 8	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 9	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 10	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 11	17,826,415
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 12	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 13	26,833,658
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 14	1,322,901
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 15	(44,660,073)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 16	(1,322,901)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 17	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 18	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 19	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 20	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 21	(779,814)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 22	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 23	(779,814)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Deferred Tax Assets And Liabilities 24	$ 0

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SCHEDULE OF NET REVENUES FROM MANUFACTURE OF BATTERIES BY GEOGRAPHICAL AREAS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 1	$ 33,536,946
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 2	44,300,448
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 3	118,040,406
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 4	105,513,367
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 5	3,197,234
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 6	644,796
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 7	10,391,188
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 8	2,952,745
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 9	1,670,086
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 10	822,849
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 11	6,736,917
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 12	1,978,668
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 13	1,869,135
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 14	1,431,131
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 15	8,199,812
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 16	5,337,486
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 17	5,325,325
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 18	795,622
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 19	10,029,255
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 20	6,256,984
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 21	45,598,726
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 22	47,994,846
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 23	153,397,578
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Geographical Areas 24	$ 122,039,250

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Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 1	$ (10,270,681)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 2	(9,829,430)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 3	(58,124,808)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 4	(26,368,149)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 5	0
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 6	46,936,251
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 7	0
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 8	48,928,143
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 9	(10,270,681)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 10	37,106,821
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 11	(58,124,808)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 12	22,559,994
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 13	12,619,597
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 14	12,619,597
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 15	12,619,597
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 16	12,619,597
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 17	(0.81)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 18	(0.78)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 19	(4.61)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 20	(2.09)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 21	0
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 22	3.72
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 23	$ 0
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 24	3.88
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 25	(0.81)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 26	2.94
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 27	(4.61)
(loss) Earnings Per Share Schedule Of Earnings Per Share, Basic And Diluted 28	1.79

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SCHEDULE OF STOCK OPTION, ACTIVITY (Details) (USD $)	9 Months Ended
	Jun. 30, 2014 Y
Share-based Compensation Schedule Of Stock Option, Activity 1	$ 136,560
Share-based Compensation Schedule Of Stock Option, Activity 2	14.05
Share-based Compensation Schedule Of Stock Option, Activity 3	0
Share-based Compensation Schedule Of Stock Option, Activity 4	0
Share-based Compensation Schedule Of Stock Option, Activity 5	0
Share-based Compensation Schedule Of Stock Option, Activity 6	0
Share-based Compensation Schedule Of Stock Option, Activity 7	(132,360)
Share-based Compensation Schedule Of Stock Option, Activity 8	14.05
Share-based Compensation Schedule Of Stock Option, Activity 9	4,200
Share-based Compensation Schedule Of Stock Option, Activity 10	14.05
Share-based Compensation Schedule Of Stock Option, Activity 11	1.95
Share-based Compensation Schedule Of Stock Option, Activity 12	0
Share-based Compensation Schedule Of Stock Option, Activity 13	4,200
Share-based Compensation Schedule Of Stock Option, Activity 14	14.05
Share-based Compensation Schedule Of Stock Option, Activity 15	1.95
Share-based Compensation Schedule Of Stock Option, Activity 16	$ 0

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Schedule of Other short-term loan (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 1	$ 24,160,595
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 2	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 3	2,450,540
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 4	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 5	816,847
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 6	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 7	816,847
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 8	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 9	37,493
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 10	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 11	28,282,322
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Other Short-term Loan 12	$ 0

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Segment Information

9 Months Ended

Jun. 30, 2014

Segment Information [Text Block]

19. Segment Information

The Company used to engage in one business segment, the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion rechargeable batteries for use in a wide array of applications. The Company manufactured five types of Li-ion rechargeable batteries: aluminum-case cell, battery pack, cylindrical cell, lithium polymer cell and high-power lithium battery cell. The Company's products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. Starting from the three months ended December 31, 2013 and until June 30, 2014, the Company was also engaged in the business segment of property lease and management (see Note 1). Net revenues from continuing operations for the three and nine months ended June 30, 2013 and 2014 were as follows:

Net revenues by product:

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
Prismatic cells
Aluminum-case cell	$	7,564,890	$	3,361,596	$	25,868,259	$	24,486,486
Battery pack		15,415,073		29,050,554		55,236,046		61,800,144
Cylindrical cells		8,475,404		3,341,239		38,767,076		9,277,848
Lithium polymer cells		10,462,818		9,963,279		20,314,424		17,145,636
High-power lithium battery cells		3,680,541		2,278,178		13,211,773		9,329,136
Total	$	45,598,726	$	47,994,846	$	153,397,578	$	122,039,250

Net revenues by geographical area:

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
PRC Mainland	$	33,536,946	$	44,300,448	$	118,040,406	$	105,513,367
PRC Taiwan		3,197,234		644,796		10,391,188		2,952,745
India		1,670,086		822,849		6,736,917		1,978,668
Hong Kong, China		1,869,135		1,431,131		8,199,812		5,337,486
Others		5,325,325		795,622		10,029,255		6,256,984
Total	$	45,598,726	$	47,994,846	$	153,397,578	$	122,039,250

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Other short-term loans, Accrued Expenses and Other Payables (Narrative) (Details)	9 Months Ended
	Jun. 30, 2014 USD ($)	Jun. 30, 2014 CNY
Other Short-term Loans, Accrued Expenses And Other Payables 1	$ 28,282,322
Other Short-term Loans, Accrued Expenses And Other Payables 2	18.00%	18.00%
Other Short-term Loans, Accrued Expenses And Other Payables 3	2.31%	2.31%
Other Short-term Loans, Accrued Expenses And Other Payables 4	3,267,387
Other Short-term Loans, Accrued Expenses And Other Payables 5		20,000,000
Other Short-term Loans, Accrued Expenses And Other Payables 6	0.50%	0.50%
Other Short-term Loans, Accrued Expenses And Other Payables 7	2,450,540
Other Short-term Loans, Accrued Expenses And Other Payables 8	201,958
Other Short-term Loans, Accrued Expenses And Other Payables 9	816,847
Other Short-term Loans, Accrued Expenses And Other Payables 10	1,210,000
Other Short-term Loans, Accrued Expenses And Other Payables 11	1,051,000
Other Short-term Loans, Accrued Expenses And Other Payables 12	13,650,000
Other Short-term Loans, Accrued Expenses And Other Payables 13	3,500,000	3,500,000
Other Short-term Loans, Accrued Expenses And Other Payables 14	$ 3.90
Other Short-term Loans, Accrued Expenses And Other Payables 15	819,000
Other Short-term Loans, Accrued Expenses And Other Payables 16	1.50%	1.50%
Other Short-term Loans, Accrued Expenses And Other Payables 17	1.50%	1.50%
Other Short-term Loans, Accrued Expenses And Other Payables 18	144	144
Other Short-term Loans, Accrued Expenses And Other Payables 19	0.50%	0.50%
Other Short-term Loans, Accrued Expenses And Other Payables 20	144	144
Other Short-term Loans, Accrued Expenses And Other Payables 21	1.00%	1.00%
Other Short-term Loans, Accrued Expenses And Other Payables 22	561,174
Other Short-term Loans, Accrued Expenses And Other Payables 23	159,000
Other Short-term Loans, Accrued Expenses And Other Payables 24	0	0
Other Short-term Loans, Accrued Expenses And Other Payables 25	5,149,806
Other Short-term Loans, Accrued Expenses And Other Payables 26	4,203,266
Other Short-term Loans, Accrued Expenses And Other Payables 27	0	0
Other Short-term Loans, Accrued Expenses And Other Payables 28	11,687,780
Other Short-term Loans, Accrued Expenses And Other Payables 29	$ 8,347,735

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Segment Information (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF NET REVENUES FROM MANUFACTURE OF BATTERIES BY PRODUCTS [Table Text Block]

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
Prismatic cells
Aluminum-case cell	$	7,564,890	$	3,361,596	$	25,868,259	$	24,486,486
Battery pack		15,415,073		29,050,554		55,236,046		61,800,144
Cylindrical cells		8,475,404		3,341,239		38,767,076		9,277,848
Lithium polymer cells		10,462,818		9,963,279		20,314,424		17,145,636
High-power lithium battery cells		3,680,541		2,278,178		13,211,773		9,329,136
Total	$	45,598,726	$	47,994,846	$	153,397,578	$	122,039,250

SCHEDULE OF NET REVENUES FROM MANUFACTURE OF BATTERIES BY GEOGRAPHICAL AREAS [Table Text Block]

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
PRC Mainland	$	33,536,946	$	44,300,448	$	118,040,406	$	105,513,367
PRC Taiwan		3,197,234		644,796		10,391,188		2,952,745
India		1,670,086		822,849		6,736,917		1,978,668
Hong Kong, China		1,869,135		1,431,131		8,199,812		5,337,486
Others		5,325,325		795,622		10,029,255		6,256,984
Total	$	45,598,726	$	47,994,846	$	153,397,578	$	122,039,250

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SCHEDULE OF INCOME TAX RECONCILIATION (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 1	$ (10,212,676)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 2	(9,829,430)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 3	(52,040,531)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 4	(26,351,675)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 5	35.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 6	35.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 7	35.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 8	35.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 9	(3,574,437)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 10	(3,440,301)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 11	(18,214,186)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 12	(9,223,086)
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 13	1,720,899
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 14	455,721
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 15	9,782,790
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 16	2,555,291
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 17	1,328,284
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 18	2,939,065
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 19	7,109,734
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 20	6,147,546
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 21	554,557
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 22	40,430
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 23	7,087,660
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 24	506,060
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 25	27,771
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 26	5,085
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 27	104,205
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 28	30,663
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 29	931
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 30	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 31	214,074
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 32	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 33	58,005
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 34	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 35	6,084,277
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Tax Reconciliation 36	$ 16,474

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Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF INCOME TAXES [Table Text Block]

		Three Months ended June 30,				Nine Months ended June 30,
		2013		2014		2013		2014
PRC income tax:
Current	$	32,777	$	-	$	277,599	$	16,474
Deferred		25,228		-		5,806,678		-
	$	58,005	$	-	$	6,084,277	$	16,474

SCHEDULE OF INCOME TAX RECONCILIATION [Table Text Block]

		Three Months ended June 30,						Nine Months ended June 30,
		2013			2014			2013			2014
(Loss) profit before income taxes-continuing operations	$	(10,212,676	)		$(9,829,430	)	$	(52,040,531	)	$	(26,351,675	)
United States federal corporate income tax rate		35%			35%			35%			35%
Income tax computed at United States statutory corporate income tax rate		(3,574,437	)		(3,440,301	)		(18,214,186	)		(9,223,086	)
Reconciling items:
Rate differential for PRC earnings		1,720,899			455,721			9,782,790			2,555,291
Valuation allowance on deferred tax assets		1,328,284			2,939,065			7,109,734			6,147,546
Non-deductible expenses/(non-taxable income)		554,557			40,430			7,087,660			506,060
Share based payment		27,771			5,085			104,205			30,663
Under-provision in prior year		931			-			214,074			-
Income tax expenses	$	58,005		$	-		$	6,084,277		$	16,474

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES [Table Text Block]

		September 30,2013			June 30, 2014
Deferred tax assets
Short-term
Trade accounts receivable	$	5,530,324		$	-
Inventories		5,365,802			-
Accrued expenses and other payables		865,002			-
Valuation allowance		(11,761,128	)		-
Short-term deferred tax assets		-			-
Long-term
Property, plant and equipment		17,826,415			-
Net operating loss carried forward		26,833,658			1,322,901
Valuation allowance		(44,660,073	)		(1,322,901	)
Long-term deferred tax assets		-			-
Total net deferred tax assets	$	-		$	-
Deferred tax liabilities:
Long-term - Property, plant and equipment	$	(779,814	)	$	-
Net deferred tax liabilities	$	(779,814	)	$	-

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Deferred Government Grants (Narrative) (Details) (CNY) In Millions, unless otherwise specified	9 Months Ended
	Jun. 30, 2014
Deferred Government Grants 1	150

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SCHEDULE OF DEPRECIATION EXPENSE (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 1	$ 3,634,835
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 2	1,415,904
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 3	11,029,359
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 4	4,706,625
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 5	92,751
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 6	149,372
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 7	373,167
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 8	396,926
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 9	34,820
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 10	27,357
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 11	101,673
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 12	84,194
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 13	873,827
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 14	800,203
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 15	2,490,275
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 16	2,490,383
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 17	4,636,233
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 18	2,392,836
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 19	13,994,474
Property, Plant And Equipment, Net Schedule Of Depreciation Expense 20	$ 7,678,128

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SCHEDULE OF PLEDGED DEPOSITS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Pledged Deposits Schedule Of Pledged Deposits 1	$ 2,450,540
Pledged Deposits Schedule Of Pledged Deposits 2	0
Pledged Deposits Schedule Of Pledged Deposits 3	5,687,147
Pledged Deposits Schedule Of Pledged Deposits 4	0
Pledged Deposits Schedule Of Pledged Deposits 5	8,137,687
Pledged Deposits Schedule Of Pledged Deposits 6	$ 0

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Prepaid Land Use Rights, net (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Prepaid Land Use Rights, Net 1	$ 150,712
Prepaid Land Use Rights, Net 2	418,720
Prepaid Land Use Rights, Net 3	543,386
Prepaid Land Use Rights, Net 4	$ 831,840

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Trade Accounts Receivable, net

9 Months Ended

Jun. 30, 2014

Trade Accounts Receivable, net [Text Block]

3. Trade Accounts Receivable, net

Trade accounts receivable as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013			June 30, 2014
Trade accounts receivable	$	61,706,474		$	176,439
Less: Allowance for doubtful accounts		(17,734,802	)		-
		43,971,672			176,439
Bills receivable		5,904,029			-
	$	49,875,701		$	176,439

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SCHEDULE OF TRADE ACCOUNTS RECEIVABLE (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 1	$ 61,706,474
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 2	176,439
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 3	(17,734,802)
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 4	0
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 5	43,971,672
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 6	176,439
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 7	5,904,029
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 8	0
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 9	49,875,701
Trade Accounts Receivable, Net Schedule Of Trade Accounts Receivable 10	$ 176,439

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Principal Activities, Basis of Presentation and Organization (Narrative) (Details)	9 Months Ended
	Jun. 30, 2014 USD ($)	Jun. 30, 2014 CNY
Principal Activities, Basis Of Presentation And Organization 1	$ 30,000,000
Principal Activities, Basis Of Presentation And Organization 2	6,000,000
Principal Activities, Basis Of Presentation And Organization 3	20.00%	20.00%
Principal Activities, Basis Of Presentation And Organization 4	5,000,000
Principal Activities, Basis Of Presentation And Organization 5	1,720,087	1,720,087
Principal Activities, Basis Of Presentation And Organization 6	17,000,000
Principal Activities, Basis Of Presentation And Organization 7	435,910	435,910
Principal Activities, Basis Of Presentation And Organization 8	50.00%	50.00%
Principal Activities, Basis Of Presentation And Organization 9	12,000,000
Principal Activities, Basis Of Presentation And Organization 10	50.00%	50.00%
Principal Activities, Basis Of Presentation And Organization 11	27,000,000
Principal Activities, Basis Of Presentation And Organization 12	435,910	435,910
Principal Activities, Basis Of Presentation And Organization 13	50.00%	50.00%
Principal Activities, Basis Of Presentation And Organization 14	50.00%	50.00%
Principal Activities, Basis Of Presentation And Organization 15	217,955	217,955
Principal Activities, Basis Of Presentation And Organization 16	217,955	217,955
Principal Activities, Basis Of Presentation And Organization 17	7,955,358
Principal Activities, Basis Of Presentation And Organization 18	217,955	217,955
Principal Activities, Basis Of Presentation And Organization 19	50.00%	50.00%
Principal Activities, Basis Of Presentation And Organization 20	73,749	73,749
Principal Activities, Basis Of Presentation And Organization 21	217,955	217,955
Principal Activities, Basis Of Presentation And Organization 22	217,955	217,955
Principal Activities, Basis Of Presentation And Organization 23	73,749	73,749
Principal Activities, Basis Of Presentation And Organization 24	5	5
Principal Activities, Basis Of Presentation And Organization 25	83,800,000
Principal Activities, Basis Of Presentation And Organization 26		520,000,000
Principal Activities, Basis Of Presentation And Organization 27	20.00%	20.00%
Principal Activities, Basis Of Presentation And Organization 28	100.00%	100.00%
Principal Activities, Basis Of Presentation And Organization 29	83,800,000
Principal Activities, Basis Of Presentation And Organization 30		520,000,000
Principal Activities, Basis Of Presentation And Organization 31	8,300,000
Principal Activities, Basis Of Presentation And Organization 32		51,300,000
Principal Activities, Basis Of Presentation And Organization 33	45,800,000
Principal Activities, Basis Of Presentation And Organization 34	11,511,694
Principal Activities, Basis Of Presentation And Organization 35	11,072,885
Principal Activities, Basis Of Presentation And Organization 36	24,176,781
Principal Activities, Basis Of Presentation And Organization 37	4,800,000
Principal Activities, Basis Of Presentation And Organization 38		30,000,000
Principal Activities, Basis Of Presentation And Organization 39	7.80%	7.80%

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Inventories (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF INVENTORIES [Table Text Block]

		September 30, 2013		June 30, 2014
Raw materials	$	9,732,211	$	-
Work-in-progress		9,220,019		-
Finished goods		38,322,957		806,699
	$	57,275,187	$	806,699

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Trade Accounts Receivable, net (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF TRADE ACCOUNTS RECEIVABLE [Table Text Block]

		September 30, 2013			June 30, 2014
Trade accounts receivable	$	61,706,474		$	176,439
Less: Allowance for doubtful accounts		(17,734,802	)		-
		43,971,672			176,439
Bills receivable		5,904,029			-
	$	49,875,701		$	176,439

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Commitments and Contingencies (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Commitments And Contingencies 1	$ 31,000,000.0
Commitments And Contingencies 2	4,900,000.0
Commitments And Contingencies 3	0
Commitments And Contingencies 4	800,000.0
Commitments And Contingencies 5	0
Commitments And Contingencies 6	2,000,000.0
Commitments And Contingencies 7	0
Commitments And Contingencies 8	126,978
Commitments And Contingencies 9	$ 442,629.21

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Inventories (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Inventories 1	$ 12,288,997
Inventories 2	3,105,534
Inventories 3	38,084,761
Inventories 4	$ 8,752,543

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Prepayments and Other Receivables and Receivable from former subsidiaries (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES [Table Text Block]

	Note		September 30, 2013			June 30, 2014
Prepayments for raw materials and others		$	3,466,177		$	-
Staff advances			701,923			17,776
Prepaid operating expenses			292,049			1,934
Advance to an unrelated third party	(a)		1,169,798			-
Advance to a related party	(b)		885,052			-
Consideration receivable	(c)		6,483,507			-
Net assets of BAK Canada held by trustee	(d)		1,043,833			-
Value added tax recoverable			4,295,390			165,250
Others			1,371,790			9,044
			19,709,519			194,004
Less: Allowance for doubtful accounts			(1,980,914	)		-
		$	17,728,605		$	194,004

Schedule of Receivable from a former subsidiary [Table Text Block]

		June 30, 2014
Receivable from a former subsidiary (Note 1)	$	11,511,694
Less: Allowance for doubtful accounts (Note 1)		11,072,885
	$	438,809

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Property, Plant and Equipment, net (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT [Table Text Block]

		September 30, 2013			June 30, 2014
Buildings	$	110,214,027		$	-
Machinery and equipment		125,617,004			7,816
Office equipment		2,520,480			2,396
Motor vehicles		1,722,492			116,842
		240,074,003			127,054
Accumulated depreciation		(123,715,978	)		(8,292	)
Construction in progress		11,321,396			11,960,099
Prepayment for acquisition of property, plant and equipment		558,013			-
Carrying amount	$	128,237,434		$	12,078,861

SCHEDULE OF DEPRECIATION EXPENSE [Table Text Block]

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
Cost of revenues	$	3,634,835	$	1,415,904	$	11,029,359	$	4,706,625
Research and development expenses		92,751		149,372		373,167		396,926
Sales and marketing expenses		34,820		27,357		101,673		84,194
General and administrative expenses		873,827		800,203		2,490,275		2,490,383
	$	4,636,233	$	2,392,836	$	13,994,474	$	7,678,128

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Pledged Deposits

9 Months Ended

Jun. 30, 2014

Pledged Deposits [Text Block]

2. Pledged Deposits

Pledged deposits as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013		June 30, 2014
Pledged deposits with banks for:
Advances from an unrelated third party (Note 10(b))	$	2,450,540	$	-
Bills payable		5,687,147		-
	$	8,137,687	$	-

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Prepaid Land Use Rights, net (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF PREPAID LAND USE RIGHTS [Table Text Block]

		September 30, 2013			June 30, 2014
Prepaid land use rights	$	25,104,833		$	-
Accumulated amortization		(3,664,541	)		-
	$	21,440,292		$	-
Less: Classified as current assets		(707,810	)		-
	$	20,732,482		$	-

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SCHEDULE OF DISCOUNTED BANK ACCEPTANCE BILLS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Commitments And Contingencies Schedule Of Discounted Bank Acceptance Bills 1	$ 20,307,818
Commitments And Contingencies Schedule Of Discounted Bank Acceptance Bills 2	$ 0

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Commitments and Contingencies (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF CAPITAL COMMITMENTS [Table Text Block]

		September 30,2013		June 30, 2014
For construction of buildings	$	321,668	$	11,119,956
For purchase of equipment		1,174,695		-
Capital injection to Dalian BAK Power (Note 1)		-		25,000,000
	$	1,496,363	$	36,119,956

SCHEDULE OF DISCOUNTED BANK ACCEPTANCE BILLS [Table Text Block]

		September 30,2013		June 30, 2014
Bank acceptance bills	$	20,307,818	$	-

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Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 1	35.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 2	38.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 3	25.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 4	30.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 5	16.50%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 6	15.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 7	25.00%
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 8	$ 2,511,374
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 9	3,354,362
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 10	105,668,004
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities 11	$ 595,495

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SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 1	$ 5,894,919
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 2	7,555,228
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 3	5,359,816
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 4	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 5	2,038,387
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 6	104,992
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 7	5,400,459
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 8	1,569,895
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 9	246,027
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 10	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 11	3,869,318
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 12	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 13	346,509
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 14	0
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 15	23,155,435
Other Short-term Loans, Accrued Expenses And Other Payables Schedule Of Accrued Expenses And Other Payables 16	$ 9,230,115

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Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Sep. 30, 2013
Current assets
Cash and cash equivalents	$ 272,115	$ 13,998,626
Pledged deposits	0	8,137,687
Trade accounts receivable, net	176,439	49,875,701
Inventories	806,699	57,275,187
Prepayments and other receivables	194,004	17,728,605
Receivable from a former subsidiary	438,809	0
Prepaid land use right, current portion	0	707,810
Assets of discontinued operations	0	65,763
Total current assets	1,888,066	147,789,379
Property, plant and equipment, net	12,078,861	128,237,434
Prepaid land use right- non current	0	20,732,482
Intangible assets, net	0	730,884
Noncurrent assets of discontinued operations	0	43,115,001
Total assets	13,966,927	340,605,180
Current liabilities
Short-term bank loans	0	151,404,677
Accounts and bills payable	81,946	124,507,846
Other short-term loans	0	28,282,322
Accrued expenses and other payables	9,230,115	23,155,435
Deferred government grants, current	24,176,781	24,525,004
Total current liabilities	33,488,842	351,875,284
Deferred revenue - non current	0	7,560,386
Deferred government grants, noncurrent	0	22,946,463
Noncurrent liabilities of discontinued operations	0	715,398
Deferred tax liabilities	0	779,814
Total liabilities	33,488,842	383,877,345
Commitments and contingencies	0	0
Shareholders' equity
Common stock $0.001 par value;20,000,000 authorized; 12,763,803 issued as of September 30, 2013 and June 30, 2014, respectively; 12,619,597 outstanding as of September 30, 2013 and June 30, 2014, respectively	12,763	12,763
Donated shares	14,101,689	14,101,689
Additional paid-in capital	127,437,223	127,349,617
Statutory reserves	0	7,786,157
Accumulated deficit	(157,012,118)	(226,366,718)
Accumulated other comprehensive income	5,138	37,910,937
Stockholders' Equity before Treasury Stock	(15,455,305)	(39,205,555)
Less: Treasury shares	(4,066,610)	(4,066,610)
Total shareholders' equity	(19,521,915)	(43,272,165)
Total liabilities and shareholders' equity	$ 13,966,927	$ 340,605,180

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Prepayments and Other Receivables and Receivable from former subsidiaries (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Prepayments And Other Receivables And Receivable From Former Subsidiaries 1	$ 885,052
Prepayments And Other Receivables And Receivable From Former Subsidiaries 2	6,483,507
Prepayments And Other Receivables And Receivable From Former Subsidiaries 3	$ 438,809

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Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flow from operating activities
Net (loss) profit	$ 22,559,994	$ (58,124,808)
Income from discontinued operations, net of tax	(48,928,143)	0
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	8,251,510	15,059,133
Reversal of doubtful debts	(639,390)	(5,087,650)
Write-down of inventories	8,752,543	38,084,761
Impairment charge	0	14,603,998
Loss arising from loan guarantee	0	2,002,089
Share-based compensation	87,606	297,729
Deferred income taxes	0	5,755,399
Exchange difference	375,127	1,063,155
Changes in operating assets and liabilities:
Trade accounts receivable	(13,992,484)	31,045,373
Inventories	7,163,543	(32,050,027)
Prepayments and other receivables	(8,768,517)	1,257,546
Accounts and bills payable	(22,626,190)	(1,122,102)
Accrued expenses and other payables	24,964,173	30,622,819
Deferred revenue	(245,887)	(256,149)
Net cash provided by (used in) continuing operations	(23,046,115)	43,151,266
Net cash provided by discontinued operations	3,615,638	0
Net cash provided by (used in) operating activities	(19,430,477)	43,151,266
Cash flow from investing activities
Disposal of subsidiaries, net of cash disposed of $4,163,555	(4,163,555)	0
Decrease (increase) in pledged deposits	7,990,705	(7,592,656)
Payment of guaranteed loans	0	(7,485,991)
Repayment of guaranteed loans	0	5,483,903
Purchases of property, plant and equipment	(8,456,929)	(25,379,443)
Purchases of intangible assets	(15,825)	(370,066)
Net cash (used in) provided by continuing operations	(4,645,604)	(35,344,253)
Net cash (used in) provided by discontinued operations	(3,296,571)	(6,657,910)
Net cash used in investing activities	(7,942,175)	(42,002,163)
Cash flow from financing activities
Proceeds from borrowings	91,614,488	148,398,191
Repayment of borrowings	(178,695,284)	(165,022,657)
Borrowings from related parties	0	8,546,133
Repayment to related parties	0	(8,747,771)
Borrowings from unrelated parties	121,232,353	8,802,650
Repayment of borrowings from unrelated parties	(20,554,868)	0
Proceeds from long-term loans	0	7,537,453
Net cash (used in) provided by financing activities	13,596,689	(486,001)
Effect of exchange rate changes on cash and cash equivalents	49,452	467,153
Net increase (decrease) in cash and cash equivalents	(13,726,511)	1,130,255
Cash and cash equivalents at the beginning of period	13,998,626	9,271,633
Cash and cash equivalents at the end of period	272,115	10,401,888
Supplemental disclosure of cash flow information:
Bills receivable discounted to banks	913,517	38,072,936
Income taxes	0	0
Interest, net of amounts capitalized	$ 8,688,340	$ 7,527,458

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Schedule of assets and liabilities of discontinued operations of the property leasing and management business reported in the condensed consolidated balance sheets (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 1	$ 37,239
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 2	28,524
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 3	65,763
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 4	41,914,724
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 5	1,200,277
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 6	43,115,001
Principal Activities, Basis Of Presentation And Organization Schedule Of Assets And Liabilities Of Discontinued Operations Of The Property Leasing And Management Business Reported In The Condensed Consolidated Balance Sheets 7	$ (715,398)

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Other short-term loans, Accrued Expenses and Other Payables (Tables)

9 Months Ended

Jun. 30, 2014

Schedule of Other short-term loan [Table Text Block]

	Note		September 30, 2013		June 30, 2014
Advances from unrelated third parties
–   Shenzhen Huo Huang Import & Export Co., Ltd.	(a)	$	24,160,595	$	-
–   Gold State Securities Limited	(b)		2,450,540		-
–   Shenzhen Wellgain Industrial Co., Ltd.	(c)		816,847		-
–   Shenzhen De Dao Trading Co., Ltd. (former supplier of the Company)			816,847		-
–  Others			37,493		-
		$	28,282,322	$	-

SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES [Table Text Block]

	Note		September 30, 2013		June 30, 2014
Construction costs payable		$	5,894,919	$	7,555,228
Equipment purchase payable			5,359,816		-
Customer deposits			2,038,387		104,992
Other payables and accruals	(d)		5,400,459		1,569,895
Accrued loan interest			246,027		-
Accrued staff costs			3,869,318		-
Deferred revenue, current portion			346,509		-
		$	23,155,435	$	9,230,115

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Schedule of Receivable from a former subsidiary (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Receivable From A Former Subsidiary 1	$ 11,511,694
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Receivable From A Former Subsidiary 2	11,072,885
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Receivable From A Former Subsidiary 3	$ 438,809

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Fair Value of Financial Instruments

9 Months Ended

Jun. 30, 2014

Fair Value of Financial Instruments [Text Block]

16. Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available. The three levels of valuation hierarchy are defined as follows:

- Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

- Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

- Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, trade accounts receivable, other receivables, accounts and bills payable and other payables, approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest.

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Deferred Government Grants (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF GOVERNMENT SUBSIDIARIES [Table Text Block]

		September 30, 2013			June 30, 2014
Advances from the Management Committee of Dalian Economic Zone (the “Management Committee”)(note)	$	24,505,399		$	24,176,781
Government subsidies received for:-
–   Automated high-power lithium battery project from the National Development and Reform Commission and Ministry of Industry and Information Technology		8,145,594			-
–   New energy innovation project from the Ministry of Finance		340,217			-
–   Various lithium battery related projects from various government authorities		14,448,005			-
Others		32,252			-
	$	47,471,467		$	24,176,781
Less: Current portion		(24,525,004	)		(24,176,781	)
	$	22,946,463		$	-

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Significant Concentrations

9 Months Ended

Jun. 30, 2014

Significant Concentrations [Text Block]

18. Significant Concentrations

(a) Customers and Credit Concentrations

The Company had three and one customers that individually comprised 10% or more of net revenue from continuing operations for the three months ended June 30, 2013 and 2014, respectively, as follows:

		Three months ended June 30,
		2013			2014
Jiangsu Huatiantong Technology Limited.	$	5,108,146	11.20%	$	*	*
Beijing Beny Wave Co., Ltd		5,476,526	12.00%		*	*
Dongguan Yulong Telecom Technology Co., Ltd.	$	4,752,907	10.42%	$	6,657,646	13.87%

*Comprised less than 10% of net revenue from continuing operations for the respective periods.

The Company had one customer that individually comprised 10% or more of net revenue from continuing operations for the nine months ended June 30, 2013 and 2014 as follows:

	Nine months ended June 30,
	2013		2014
Tinno Mobile Technology Company Limited.	*	*	13,278,638	10.88%
Dongguan Yulong Telecom Technology Co., Ltd.	17,395,085	11.34%	*	*

*Comprised less than 10% of net revenue from continuing operations for the respective periods.

As of June 30, 2014, there was no customer that individually comprised 10% or more of accounts receivable.

(b) Credit Risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of September 30, 2013 and June 30, 2014, substantially all of the Company’s cash and cash equivalents and pledged deposits were held by major financial institutions located in the PRC, which management believes are of high credit quality.

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SCHEDULE OF PREPAID LAND USE RIGHTS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 1	$ 25,104,833
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 2	0
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 3	(3,664,541)
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 4	0
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 5	21,440,292
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 6	0
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 7	(707,810)
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 8	0
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 9	20,732,482
Prepaid Land Use Rights, Net Schedule Of Prepaid Land Use Rights 10	$ 0

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Principal Activities, Basis of Presentation and Organization

9 Months Ended

Jun. 30, 2014

Principal Activities, Basis of Presentation and Organization [Text Block]

1. Principal Activities, Basis of Presentation and Organization

Principal Activities

China BAK Battery, Inc. (“China BAK”) is a corporation formed in the State of Nevada on October 4, 1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to China BAK Battery, Inc. on February 14, 2005. China BAK and its subsidiaries (hereinafter, collectively referred to as the “Company”) are principally engaged in the manufacture, commercialization and distribution of high power lithium ion (known as "Li-ion" or "Li-ion cell") rechargeable batteries. Prior to the disposal of BAK International and its subsidiaries (see below), the batteries produced by the Company were for use in cellular telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power tools, digital cameras, video camcorders, MP3 players, electric bicycle, hybrid/electric vehicles, and general industrial applications. After the disposal of BAK International and its subsidiaries, the Company will focus on the manufacture, commercialization and distribution of high power lithium ion rechargeable batteries for use in electric vehicles, light electric vehicles, electric tools, energy storage, UPS and other high power industrial applications. The shares of the Company traded in the over-the-counter market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common stock on The NASDAQ Global Market, and trading commenced that same date under the symbol "CBAK".

Basis of Presentation and Organization

After the disposal of the BAK International and its subsidiaries effective on June 30, 2014, the Company’s subsidiaries consisted of: i) China BAK Asia Holdings Limited(“BAK Asia”), a wholly owned limited liability company incorporated in Hong Kong on July 9, 2013; ii) Dalian BAK Trading Co., Ltd. (“BAK Dalian”), a wholly owned limited company established on August 14, 2013 in the PRC; and iii) Dalian BAK Power Battery Co., Ltd. (“Dalian BAK Power”), a wholly owned limited liability company established on December 27, 2013 in the PRC.

Dalian BAK Power was established on December 27, 2013 as a wholly owned subsidiary of BAK Asia with a registered capital of $30,000,000 (Note 17(i)). Pursuant to Dalian BAK Power’s articles of association and relevant PRC regulations, BAK Asia was required to contribute $6,000,000 to Dalian BAK Power as capital (representing 20% of Dalian BAK Power’s registered capital) on or before December 27, 2015. Up to the date of this report, the Company has contributed $5,000,000 to Dalian BAK Power through an injection of a series of patents.

On November 6, 2004, BAK International, a non-operating holding company that had substantially the same shareholders as Shenzhen BAK, entered into a share swap transaction with the shareholders of Shenzhen BAK for the purpose of the subsequent reverse acquisition of the Company. The share swap transaction between BAK International and the shareholders of Shenzhen BAK was accounted for as a reverse acquisition of Shenzhen BAK with no adjustment to the historical basis of the assets and liabilities of Shenzhen BAK.

On January 20, 2005, the Company completed a share swap transaction with the shareholders of BAK International. The share swap transaction, also referred to as the “reverse acquisition” of the Company, was consummated under Nevada law pursuant to the terms of a Securities Exchange Agreement entered by and among China BAK, BAK International and the shareholders of BAK International on January 20, 2005.The share swap transaction has been accounted for as a capital-raising transaction of the Company whereby the historical financial statements and operations of Shenzhen BAK are consolidated using historical carrying amounts.

Also on January 20, 2005, immediately prior to consummating the share swap transaction, BAK International executed a private placement of its common stock with unrelated investors whereby it issued an aggregate of 1,720,087 shares of common stock for gross proceeds of $17,000,000. In conjunction with this financing, Mr. Xiangqian Li, the Chairman and Chief Executive Officer of the Company, agreed to place 435,910 shares of the Company's common stock owned by him into an escrow account pursuant to an Escrow Agreement dated January 20, 2005 (the “Escrow Agreement”). Pursuant to the Escrow Agreement, 50% of the escrowed shares were to be released to the investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2005 was not at least $12,000,000, and the remaining 50% was to be released to investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2006 was not at least $27,000,000. If the audited net income of the Company for the fiscal years ended September 30, 2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Xiangqian Li in the amount of 50% upon reaching the 2005 target and the remaining 50% upon reaching the 2006 target.

Under accounting principles generally accepted in the United States of America (“US GAAP”), escrow agreements such as the one established by Mr. Xiangqian Li generally constitute compensation if, following attainment of a performance threshold, shares are returned to a company officer. The Company determined that without consideration of the compensation charge, the performance thresholds for the year ended September 30, 2005 would be achieved. However, after consideration of a related compensation charge, the Company determined that such thresholds would not have been achieved. The Company also determined that, even without consideration of a compensation charge, the performance thresholds for the year ended September 30, 2006 would not be achieved.

While the 217,955 escrow shares relating to the 2005 performance threshold were previously released to Mr. Xiangqian Li, Mr. Xiangqian Li executed a further undertaking on August 21, 2006 to return those shares to the escrow agent for the distribution to the relevant investors. However, such shares were not returned to the escrow agent, but, pursuant to a Delivery of Make Good Shares, Settlement and Release Agreement between the Company, BAK International and Mr. Li entered into on October 22, 2007 (the “Li Settlement Agreement”), such shares were ultimately delivered to the Company as described below. Because the Company failed to satisfy the performance threshold for the fiscal year ended September 30, 2006, the remaining 217,955 escrow shares relating to the fiscal year 2006 performance threshold were released to the relevant investors. As Mr. Li has not retained any of the shares placed into escrow, and as the investors party to the Escrow Agreement are only shareholders of the Company and do not have and are not expected to have any other relationship to the Company, the Company has not recorded a compensation charge for the years ended September 30, 2005 and 2006.

At the time the escrow shares relating to the 2006 performance threshold were transferred to the investors in fiscal year 2007, the Company should have recognized a credit to donated shares and a debit to additional paid-in capital, both of which are elements of shareholders’ equity. This entry is not material because total ordinary shares issued and outstanding, total shareholders’ equity and total assets do not change; nor is there any impact on income or earnings per share. Therefore, previously filed consolidated financial statements for the fiscal year ended September 30, 2007 will not be restated. This share transfer has been reflected in these financial statements by reclassifying the balances of certain items as of October 1, 2007. The balances of donated shares and additional paid-in capital as of October 1, 2007 were credited and debited by $7,955,358 respectively, as set out in the consolidated statements of changes in shareholders’ equity.

In November 2007, Mr. Xiangqian Li delivered the 217,955 shares related to the 2005 performance threshold to BAK International pursuant to the Li Settlement Agreement; BAK International in turn delivered the shares to the Company. Such shares (other than those issued to investors pursuant to the 2008 Settlement Agreements, as described below) are now held by the Company. Upon receipt of these shares, the Company and BAK International released all claims and causes of action against Mr. Xiangqian Li regarding the shares, and Mr. Xiangqian Li released all claims and causes of action against the Company and BAK International regarding the shares. Under the terms of the Li Settlement Agreement, the Company commenced negotiations with the investors who participated in the Company’s January 2005 private placement in order to achieve a complete settlement of BAK International’s obligations (and the Company’s obligations to the extent it has any) under the applicable agreements with such investors.

Beginning on March 13, 2008, the Company has entered into settlement agreements (the “2008 Settlement Agreements”) with certain investors in the January 2005 private placement. Since the other investors have never submitted any claims regarding this matter, the Company did not reach any settlement with them.

Pursuant to the 2008 Settlement Agreements, the Company and the settling investors have agreed, without any admission of liability, to a settlement and mutual release from all claims relating to the January 2005 private placement, including all claims relating to the escrow shares related to the 2005 performance threshold that had been placed into escrow by Mr. Xiangqian Li, as well as all claims, including claims for liquidated damages relating to registration rights granted in connection with the January 2005 private placement. Under the 2008 Settlement Agreement, the Company has made settlement payments to each of the settling investors of the number of shares of the Company’s common stock equivalent to 50% of the number of the escrow shares related to the 2005 performance threshold these investors had claimed; aggregate settlement payments as of March 31, 2013 amounted to 73,749 shares. Share payments to date have been made in reliance upon the exemptions from registration provided by Section 4(2) and/or other applicable provisions of the Securities Act of 1933, as amended. In accordance with the 2008 Settlement Agreements, the Company filed a registration statement covering the resale of such shares which was declared effective by the SEC on June 26, 2008.

Pursuant to the Li Settlement Agreement, the 2008 Settlement Agreements and upon the release of the 217,955 escrow shares relating to the fiscal year 2006 performance threshold to the relevant investors, neither Mr. Li or the Company have any obligations to the investors who participated in the Company’s January 2005 private placement relating to the escrow shares.

As of June 30, 2014, the Company has not received any claim from the other investors who have not been covered by the “2008 Settlement Agreements” in the January 2005 private placement.

As the Company has transferred the 217,955 shares related to the 2006 performance threshold to the relevant investors in fiscal year 2007 and the Company also has transferred 73,749 shares relating to the 2005 performance threshold to the investors who had entered the “2008 Settlement Agreements” with us in fiscal year 2008, pursuant to “Li Settlement Agreement” and “2008 Settlement Agreements”, neither Mr. Li nor the Company has not had any remaining obligations to those related investors who participated in the Company’s January 2005 private placement relating to the escrow shares.

On October 26, 2012, the Company effected a 1-for- 5 reverse stock split of its issued and outstanding shares of common stock and a proportional reduction of its authorized shares of common stock. All common share and per share amounts, and exercise prices of common stock options disclosed herein and in the accompanying consolidated unaudited condensed financial statements have been retroactively restated to reflect the reverse stock split.

The Company’s condensed consolidated financial statements have been prepared under accounting principles generally accepted in the United States of America (“US GAAP”).

These interim condensed consolidated financial statements are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these condensed consolidated financial statements, which are of a normal and recurring nature, have been included. The results reported in the condensed consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The following (a) condensed consolidated balance sheet as of September 30, 2013, which was derived from the Company’s audited financial statements, and (b) the unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to those rules and regulations, though the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying footnotes of the Company for the year ended September 30, 2013.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company’s principal subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC, Hong Kong, India, Canada or Germany, the accounting standards used in the places of their domicile. The accompanying condensed consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company's subsidiaries to present them in conformity with US GAAP.

The Company had net liabilities, a working capital deficiency, accumulated deficit from recurring net losses incurred for the current and prior years and significant short-term debt obligations maturing in less than one year as of June 30, 2014. The Company has been suffering severe cash flow deficiencies.

In order to repay the Company’s overdue bank loans, Shenzhen BAK Battery Co., Ltd (“Shenzhen BAK”), a former wholly-owned subsidiary of the Company, borrowed from Mr. Jinghui Wang (“Mr. Wang”), an unrelated third party, in December 2013 and January 2014, an aggregate of $83.8 million (RMB520 million) bearing interest at 20% per annum and repayable by March 31, 2014 (“the “Loans”). The Loans were secured by the Company’s 100% equity interest in BAK International (the “Shares”), guaranteed by BAK International and the Company (collectively the “Collateral”).

The Company failed to repay the loans to Mr. Wang on March 31, 2014. On April 24, 2014, the Company received a default notice from Mr. Wang. On June 30, 2014, the Company received a further notice from Mr. Wang that due to Shenzhen BAK’s default under the Loans, he had foreclosed his security interest in BAK International and sold and transferred to a third party the Shares for a purchase price of $83.8 million (RMB520 million). Pursuant to a debt waiver agreement also dated June 30, 2014, Mr. Wang agreed to waive his entitlement to the interest on the Loans accruing to $8.3 million (RMB51.3 million)as of June 30, 2014.Following the disposal and pursuant to a deed of waiver and release signed on July 4, 2014, the Company and BAK International were both released and discharged from their obligations under the corporate guarantees that they executed in favor of Mr. Wang, and the Company, Shenzhen BAK, BAK International and Mr. Wang shall have no claim whatsoever against each other.

As a result of the foreclosure, the equity interest of BAK International and its wholly owned subsidiaries, namely Shenzhen BAK, BAK Battery (Shenzhen) Co., Ltd., BAK International (Tianjin) Ltd., Tianjin Chenhao Technological Development Limited (a subsidiary of BAK Tianjin established on May 8, 2014,“Tianjin Chenhao”), BAK Battery Canada Ltd., BAK Europe GmbH and BAK Telecom India Private Limited (collectively the “Disposal Group”) was disposed of effective on June 30, 2014. The condensed consolidated financial statements were consolidated up to the date of disposal. The Company recorded a gain on disposal of subsidiaries of $45.8 million, which was mainly related to the market value appreciation of the Company’s Research and Development Centre in Shenzhen.

The following table represents the net assets of the Disposal Group as of June 30, 2014 (date of disposal):

		Carrying amount
Cash and cash equivalents	$	4,163,555
Pledged deposits		119,382
Bill and trade accounts receivable, net		63,539,165
Inventories		39,941,073
Prepayments and other receivables		25,975,982
Property, plant and equipment, net		165,242,359
Prepaid land use rights, net		21,950,651
Intangible assets, net		583,662
Short-term bank loans		(63,181,988	)
Accounts and bills payable		(100,364,485	)
Accrued expenses and other payables		(39,278,719	)
Other short term loans		(38,906,793	)
Payable to the Company (Note)		(11,511,694	)
Deferred revenue		(7,215,622	)
Other long-term payables		(23,834,320	)
Rental deposits		(1,144,121	)
Deferred tax liabilities		(769,357	)
Net assets of BAK International and subsidiaries upon disposal		35,308,730
Consideration received in the form of :
Offset against loans from Mr. Wang		(83,812,839	)
Waiver of interest accruing up to June 30, 2014		(8,262,566	)
Net of stamp duty		(84,677	)
		(56,851,352	)
Impairment on receivable from the Disposal Group (note)		11,072,885
Gain on disposal of subsidiaries	$	(45,778,467	)

Note: The Disposal Group owed the Company a sum of $11,511,694 upon disposal. Management of the Company evaluated the collectability of this amount and determined that $11,072,885 should be impaired (Note 5(ii).

DISCONTINUED OPERATIONS

The Company had also been engaged in property leasing and management of its Research and Development Centre in Shenzhen since its completion in July 2013. Following the disposal of BAK International and its subsidiaries on June 30, 2014, this business is now accounted for as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented. Accordingly, assets and liabilities, revenues and expenses, and cash flows related to the property leasing and management business have been appropriately reclassified in the accompanying condensed consolidated financial statements as discontinued operations for all periods presented.

The following table presents the major classes of assets and liabilities of discontinued operations of the property leasing and management business reported in the condensed consolidated balance sheets:

		September 30, 2013
Prepayments and other receivables	$	37,239
Prepaid land use right, current portion		28,524
Current assets of discontinued operations	$	65,763
Noncurrent assets
Property, plant and equipment, net	$	41,914,724
Prepaid land use right, non current		1,200,277
Noncurrent assets of discontinued operations	$	43,115,001
Noncurrent liabilities of discontinued operations - Rental deposits from tenants	$	(715,398	)

The following table presents the components of discontinued operations in relation to the property leasing and management business reported in the condensed consolidated statements of operations and comprehensive loss:

		Three months ended			Nine months ended
		June 30, 2014			June 30, 2014
Net revenues	$	1,459,719		$	4,069,146
Cost of revenues		(301,935	)		(919,470	)
		1,157,784			3,149,676
Gain on disposal of subsidiaries		45,778,467			45,778,467
Income from discontinued operations	$	46,936,251		$	48,928,143

As a result of the above foreclosure, the Company currently owns a Hong Kong subsidiary, BAK Asia, which in turn wholly owns two Chinese subsidiaries, Dalian BAK and Dalian BAK Power. China BAK will continue to be a US listing company with a low level of liabilities. The Company has outsourced its manufacturing operations to BAK Tianjin before the completion of construction and operation of facility in Dalian. BAK Tianjin is now a supplier of the Company and the Company does not have any significant benefits or liability from the operating results of BAK Tianjin except the normal risk with any major supplier.

It is the Company’s understanding that the Dalian government will grant certain government subsidies to the Company, including but not limited to land use rights at a favorable price. As of June 30, 2014, the Company had advances from the Management Committee of Dalian Economic Zone of $24,176,781 to finance its removal of our production facilities to Dalian. The Company expects that the removal will be completed by the end of 2014 and these advances will be recognized as income or offset against related expenditures when there are no present or future obligations for the subsidized projects. The Company obtained a short term bank loan of $4.8 million (RMB30 million) from Bank of Dandong for the period from August 19, 2014 to August 18, 2015. The short term loan is bearing fixed interest at 7.8% per annum and was guaranteed by Shenzhen BAK and Mr. Xiangqian Lt, the Company's CEO. The Company plans to raise further financing from local banks to meet its daily cash demands. However, there can be no assurance that the Company will be successful in obtaining this financing.

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty related to the Company’s ability to continue as a going concern.

Recently issued accounting pronouncements

In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements (Topic 205)and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Entities may “early adopt” the guidance for new disposals. The Company does not expect that the adoption will have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" which clarifies and improves the principles for recognizing revenue and develops a common revenue standard for United States generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) that among other things, improves comparability of revenue recognition practices and provides more useful information to users of financial statements through improved disclosure requirements. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently reviewing the effect of ASU 2014-09 on its revenue recognition.

In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718)" which provides explicit guidance on the treatment of awards with performance targets that could be achieved after the requisite service period. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect that the adoption will have a material impact on its consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	12,763,803	12,763,803
Common Stock, Shares, Outstanding	12,619,597	12,619,597

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Deferred Revenue

9 Months Ended

Jun. 30, 2014

Deferred Revenue [Text Block]

11. Deferred Revenue

Deferred revenue mainly represented a government grant subsidy of $9.0 million (RMB56 million) for costs of land use rights relating to BAK Industrial Park, which is amortized on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon of 35 years.

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Document and Entity Information	9 Months Ended
	Jun. 30, 2014	Aug. 18, 2014
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Trading Symbol	cbak
Entity Registrant Name	CHINA BAK BATTERY INC
Entity Central Index Key	0001117171
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,619,597
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

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Deferred Government Grants

9 Months Ended

Jun. 30, 2014

Deferred Government Grants [Text Block]

12. Deferred Government Grants

Other long-term payables as of September 30, 2013 and June 30, 2014 consist of the following:

		September 30, 2013			June 30, 2014
Advances from the Management Committee of Dalian Economic Zone (the “Management Committee”)(note)	$	24,505,399		$	24,176,781
Government subsidies received for:-
–   Automated high-power lithium battery project from the National Development and Reform Commission and Ministry of Industry and Information Technology		8,145,594			-
–   New energy innovation project from the Ministry of Finance		340,217			-
–   Various lithium battery related projects from various government authorities		14,448,005			-
Others		32,252			-
	$	47,471,467		$	24,176,781
Less: Current portion		(24,525,004	)		(24,176,781	)
	$	22,946,463		$	-

Note: The Management Committee provided a subsidy of RMB150 million to finance the removal of the Company's production facilities from Tianjin to Dalian. The Company expects that the removal will be completed before December 2014.

The Company will recognize these grants as income or offset against related expenditures when there are no present or future obligations for the subsidized projects.

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SCHEDULE OF VALUATION OF OPTIONS GRANTED ON April 8, 2010 (Details) (USD $)	9 Months Ended
	Jun. 30, 2014 Y
Share-based Compensation Schedule Of Valuation Of Options Granted On April 8, 2010 1	51.79%
Share-based Compensation Schedule Of Valuation Of Options Granted On April 8, 2010 2	$ 0
Share-based Compensation Schedule Of Valuation Of Options Granted On April 8, 2010 3	7.5
Share-based Compensation Schedule Of Valuation Of Options Granted On April 8, 2010 4	3.90%

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Condensed consolidated statements of operations and comprehensive loss (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net revenues	$ 47,994,846	$ 45,598,726	$ 122,039,250	$ 153,397,578
Cost of revenues	(43,675,974)	(46,986,217)	(112,558,168)	(162,576,588)
Gross (loss) profit	4,318,872	(1,387,491)	9,481,082	(9,179,010)
Operating expenses:
Research and development expenses	(1,469,263)	(1,135,371)	(3,981,130)	(3,995,011)
Sales and marketing expenses	(1,807,268)	(1,710,001)	(4,504,284)	(5,812,595)
General and administrative expenses	(3,920,264)	(4,654,653)	(11,912,505)	(13,743,951)
Recovery of (provision for) doubtful accounts	(729,415)	4,387,805	639,390	5,087,650
Impairment charge on property, plant and equipment	0	(3,207,649)	0	(14,603,998)
Total operating expenses	(7,926,210)	(6,319,869)	(19,758,529)	(33,067,905)
Operating loss	(3,607,338)	(7,707,360)	(10,277,447)	(42,246,915)
Finance costs, net	(6,193,187)	(3,454,229)	(16,785,103)	(7,893,537)
Recovery of loss (loss) arising from loan guarantees	0	808,950	0	(2,002,089)
Government grant income	22,413	112,796	74,532	131,073
Other income (expense)	(51,318)	27,167	636,343	(29,063)
Loss before income tax and continuing operations	(9,829,430)	(10,212,676)	(26,351,675)	(52,040,531)
Income tax expenses	0	(58,005)	(16,474)	(6,084,277)
Net loss profit from continuing operations, net of tax	(9,829,430)	(10,270,681)	(26,368,149)	(58,124,808)
Income from discontinued operations, net of tax	46,936,251	0	48,928,143	0
Net loss (profit)	37,106,821	(10,270,681)	22,559,994	(58,124,808)
Other comprehensive income
Release of foreign currency translation adjustment upon disposal of subsidiaries	(39,008,449)	0	(39,008,449)	0
Foreign currency translation adjustment	(182,152)	871,823	1,102,650	2,235,990
Total Other comprehensive income	(39,190,601)	871,823	(37,905,799)	2,235,990
Comprehensive loss	$ (2,083,780)	$ (9,398,858)	$ (15,345,805)	$ (55,888,818)
(Loss) earnings per share - Basic and diluted
- From continuing operations	$ (0.78)	$ (0.81)	$ (2.09)	$ (4.61)
- From discontinued operations	$ 3.72	$ 0.00	$ 3.88	$ 0.00
(Loss) earnings per share - Basic and diluted	$ 2.94	$ (0.81)	$ 1.79	$ (4.61)
Weighted average number of shares of common stock:
- Basic	12,619,597	12,619,597	12,619,597	12,619,597
- Diluted	12,619,597	12,619,597	12,619,597	12,619,597

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Property, Plant and Equipment, net

9 Months Ended

Jun. 30, 2014

Property, Plant and Equipment, net [Text Block]

6. Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013			June 30, 2014
Buildings	$	110,214,027		$	-
Machinery and equipment		125,617,004			7,816
Office equipment		2,520,480			2,396
Motor vehicles		1,722,492			116,842
		240,074,003			127,054
Accumulated depreciation		(123,715,978	)		(8,292	)
Construction in progress		11,321,396			11,960,099
Prepayment for acquisition of property, plant and equipment		558,013			-
Carrying amount	$	128,237,434		$	12,078,861

(i) Depreciation expense for the continuing operations is included in the condensed consolidated statements of operations and comprehensive loss as follows:

		Three months ended June 30,				Nine months ended June 30,
		2013		2014		2013		2014
Cost of revenues	$	3,634,835	$	1,415,904	$	11,029,359	$	4,706,625
Research and development expenses		92,751		149,372		373,167		396,926
Sales and marketing expenses		34,820		27,357		101,673		84,194
General and administrative expenses		873,827		800,203		2,490,275		2,490,383
	$	4,636,233	$	2,392,836	$	13,994,474	$	7,678,128

(ii)	Construction in Progress
	Construction in progress as of September 30, 2013 mainly comprised of capital expenditures for the automation production line of BAK Tianjin. Construction in progress as of June 30, 2014 was mainly comprised of capital expenditures for the site of Dalian BAK Power.
	For the three months ended June 30, 2013 and 2014, the Company capitalized interest of $605,648 and $26,943, respectively, to the cost of construction in progress.
	For the nine months ended June 30, 2013 and 2014, the Company capitalized interest of $1,975,311 and $345,443, respectively, to the cost of construction in progress.
(iii)	Impairment charge
	During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment.. The Company charged impairment losses of $3.2 million and $14.6 million for the three and nine months ended June 30, 2013, respectively. The impairment charge represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities in Shenzhen primarily for the production of aluminum-case cells. The Company believes that there was no further impairment for the three and nine months ended June 30, 2014.

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Prepayments and Other Receivables and Receivable from former subsidiaries

9 Months Ended

Jun. 30, 2014

Prepayments and Other Receivables and Receivable from former subsidiaries [Text Block]

5. Prepayments and Other Receivables and Receivable from former subsidiaries

(i) Prepayments and other receivables were disposed as of September 30, 2013 and June 30, 2014 consisted of the following:

	Note		September 30, 2013			June 30, 2014
Prepayments for raw materials and others		$	3,466,177		$	-
Staff advances			701,923			17,776
Prepaid operating expenses			292,049			1,934
Advance to an unrelated third party	(a)		1,169,798			-
Advance to a related party	(b)		885,052			-
Consideration receivable	(c)		6,483,507			-
Net assets of BAK Canada held by trustee	(d)		1,043,833			-
Value added tax recoverable			4,295,390			165,250
Others			1,371,790			9,044
			19,709,519			194,004
Less: Allowance for doubtful accounts			(1,980,914	)		-
		$	17,728,605		$	194,004

(a)	Advance to an unrelated third party was interest-free, unsecured and repayable on demand.
(b)	As of September 30, the Company advanced to Tianjin BAK New Energy Research Institute Co., Ltd (“Tianjin New Energy”), a related party under the common control of Mr. Xiangqian Li (“Mr. Li”), the Company's CEO, an amount of $885,052 which was interest-free, unsecured and repayable on demand.
(c)	On August 27, 2013, the Company completed the equity transfer of Tianjin Meicai to Tianjin Zhantuo International Trading Co., Ltd. (“Tianjin Zhantuo”), an unrelated third party. As of September 30, 2013, the remaining consideration receivable was $6,483,507. The amount was interest-free, repayable on September 26, 2013 (30 days upon completion) and pledged for advance from Tianjin Zhantuo.
(d)	BAK Canada filed for bankruptcy on March 28, 2013. As of September 30, 2013, its net assets were held under the custody of its trustee.

(ii) Receivable from a former subsidiary

		June 30, 2014
Receivable from a former subsidiary (Note 1)	$	11,511,694
Less: Allowance for doubtful accounts (Note 1)		11,072,885
	$	438,809

As of June 30, 2014, the amount due from Shenzhen BAK was interest free, unsecured and repayable on demand. An amount of $438,809 was repaid in August 2014.

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Commitments and Contingencies

9 Months Ended

Jun. 30, 2014

Commitments and Contingencies [Text Block]

17. Commitments and Contingencies

(i) Capital Commitments

As of September 30, 2013 and June 30, 2014, the Company had the following contracted capital commitments:

		September 30,2013		June 30, 2014
For construction of buildings	$	321,668	$	11,119,956
For purchase of equipment		1,174,695		-
Capital injection to Dalian BAK Power (Note 1)		-		25,000,000
	$	1,496,363	$	36,119,956

(ii) Guarantees

In order to secure the supplies of certain raw materials and equipment and upon the request of suppliers, the Company has given guarantees of bank borrowings with a maximum obligation period of from one to three years to certain parties to the maximum extent of $31.0 million (including $4.9 million to a related party) and nil as of September 30, 2013 and June 30, 2014, respectively.

During the three months ended June 30, 2013 and 2014, the Company recorded a reversal of loss arising from loan guarantees of $0.8 million and nil, respectively.

During the nine months ended June 30, 2013 and 2014, the Company recorded a net loss arising from loan guarantees of $2.0 million and nil, respectively.

(iii) Outstanding Discounted Bills and Transferred Bills

From time to time, the Company factors bills receivable to banks and endorses the bank acceptance bills received to its suppliers, vendors or other parties for settlement of its liabilities to these creditors. At the time of the factoring and transfer, all rights and privileges of holding the receivables are transferred to the banks and the creditors. The Company removes the assets from its books and records a corresponding expense for the amount of the discount.

The Company's outstanding discounted and transferred bills as of September 30, 2013 and June 30, 2014 are summarized as follows:

		September 30,2013		June 30, 2014
Bank acceptance bills	$	20,307,818	$	-

(iv) Litigation

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. Other than the legal proceeding set forth below, the Company is currently not aware of any such legal proceedings or claims that the Company believe will have an adverse effect on our business, financial condition or operating results:

China BAK Battery, Inc. has been named as a second defendant in the case of Safeco Ins. Co. of Am. v. Hewlett-Packard Co. et al., filed in the Superior Court of the State of California, County of Ventura. It is an action for negligence and strict product liability. The plaintiff alleges that a product manufactured by the Company was used in a Hewlett Packard laptop, which malfunctioned and caused fire damage in the home of a consumer (the Plaintiff’s insured). The total damages sought are $126,978, plus interest and fees. The Company believes that the plaintiff's claims are without merit and intends to vigorously defend itself in this lawsuit.

An individual named Steven R. Ruth filed suit against China BAK Battery, Inc. in United States District Court for the Western District of Texas in 2013 alleging breach of contract. The company did not receive notice of this lawsuit and the plaintiff sought a default judgment, which the court granted in January 2014. Accordingly, the court entered judgment in favor of Mr. Ruth in the amount of $442,629.21. The company later learned of the existence of both the lawsuit and the default judgment and it is seeking to have the default judgment vacated so it will have the opportunity to defend against the lawsuit. The Company believes that the plaintiff’s claims are without merit and intends to vigorously defend itself in this lawsuit.

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Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities

9 Months Ended

Jun. 30, 2014

Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities [Text Block]

13. Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities

(a) Income taxes in the condensed consolidated statements of comprehensive loss

The Company’s provision for income taxes consisted of:

		Three Months ended June 30,				Nine Months ended June 30,
		2013		2014		2013		2014
PRC income tax:
Current	$	32,777	$	-	$	277,599	$	16,474
Deferred		25,228		-		5,806,678		-
	$	58,005	$	-	$	6,084,277	$	16,474

United States Tax
China BAK is subject to statutory tax rate of 35% under United States of America tax law. No provision for income taxes in the United States or elsewhere has been made as China BAK had no taxable income for the three months ended andnine months ended June 30, 2013 and 2014.

Canada States Tax
BAK Canada is subject to statutory tax rate of 38% under Canada tax law. No provision for income taxes in Canada has been made as BAK Canada had no taxable income for the three months and nine months ended June 30, 2013 and 2014.

German States Tax
BAK Europe is subject to 25% statutory tax rate under Germany tax law for the three months and nine months ended June 30, 2013 and 2014.

India Tax
BAK India is subject to 30% statutory tax rate under India tax law. No provision for income taxes in India has been made as BAK India had no taxable income for the three months and nine months ended June 30, 2013 and 2014.

Hong Kong Tax
BAK International and China Asia are subject to Hong Kong profits tax rate of 16.5% . There is no taxable income for both companies for the nine months ended June 30, 2013 and 2014, thus both companies did not incur any Hong Kong profits tax during the periods presented.

PRC Tax
Shenzhen BAK is entitled to a preferential enterprise income tax rate of 15% for the three and nine months ended June 30, 2013 and 2014.

All the other subsidiaries in China are subject to an income tax rate of 25%.

(a) Income taxes in the condensed consolidated statements of comprehensive loss (Continued)

A reconciliation of the provision for income taxes determined at the statutory income tax rate to the Company's income tax expenses is as follows:

		Three Months ended June 30,						Nine Months ended June 30,
		2013			2014			2013			2014
(Loss) profit before income taxes-continuing operations	$	(10,212,676	)		$(9,829,430	)	$	(52,040,531	)	$	(26,351,675	)
United States federal corporate income tax rate		35%			35%			35%			35%
Income tax computed at United States statutory corporate income tax rate		(3,574,437	)		(3,440,301	)		(18,214,186	)		(9,223,086	)
Reconciling items:
Rate differential for PRC earnings		1,720,899			455,721			9,782,790			2,555,291
Valuation allowance on deferred tax assets		1,328,284			2,939,065			7,109,734			6,147,546
Non-deductible expenses/(non-taxable income)		554,557			40,430			7,087,660			506,060
Share based payment		27,771			5,085			104,205			30,663
Under-provision in prior year		931			-			214,074			-
Income tax expenses	$	58,005		$	-		$	6,084,277		$	16,474

As of September 30, 2013 and June 30, 2014, the Company’s U.S. entity, had net operating loss carry forwards of $2,511,374 and $3,354,362, respectively, available to reduce future taxable income which will expire in various years through 2030 and the Company’s PRC subsidiaries had net operating loss carry forwards of $105,668,004 and $595,495 which will expire in various years through 2019. Management believes it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, the full amount of the valuation allowance was provided against the potential tax benefits.

(b) Deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of September 30, 2013 and June 30, 2014 are presented below:

		September 30,2013			June 30, 2014
Deferred tax assets
Short-term
Trade accounts receivable	$	5,530,324		$	-
Inventories		5,365,802			-
Accrued expenses and other payables		865,002			-
Valuation allowance		(11,761,128	)		-
Short-term deferred tax assets		-			-
Long-term
Property, plant and equipment		17,826,415			-
Net operating loss carried forward		26,833,658			1,322,901
Valuation allowance		(44,660,073	)		(1,322,901	)
Long-term deferred tax assets		-			-
Total net deferred tax assets	$	-		$	-
Deferred tax liabilities:
Long-term - Property, plant and equipment	$	(779,814	)	$	-
Net deferred tax liabilities	$	(779,814	)	$	-

As of September 30, 2013 and June 30, 2014, the Company has no material unrecognized tax benefits which would favorably affect the effective income tax rates in future periods and does not believe that there will be any significant increases or decreases of unrecognized tax benefits within the next twelve months. No interest or penalties relating to income tax matters have been imposed on the Company during the periods ended June 30, 2013 and 2014, and no provision for interest and penalties is deemed necessary as of June 30, 2013 and 2014.

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion.

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SCHEDULE OF REVENUE BY MAJOR CUSTOMERS BY REPORTING SEGMENTS (Details) (USD $)	3 Months Ended	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 1	$ 5,108,146
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 2	11.20%
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 3	5,476,526
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 4	12.00%
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 5	4,752,907
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 6	10.42%
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 7	6,657,646
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 8	13.87%
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 1		13,278,638
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 2		10.88%
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 3		$ 17,395,085
Significant Concentrations Schedule Of Revenue By Major Customers By Reporting Segments 4		11.34%

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Short-term Bank Loans

9 Months Ended

Jun. 30, 2014

Short-term Bank Loans [Text Block]

9. Short-term Bank Loans

As of September 30, 2013 and June 30, 2014, the Company had several short-term bank loans with aggregate outstanding balances of $151,404,677 and nil. The loans were primarily obtained for general working capital, carried at interest rates ranging from 5.88% to 15.00% per annum, and had maturity dates ranging from 9 to 12 months. The loans are guaranteed by Mr. Li, the Company's CEO, BAK International (TJ) Ltd and BAK International Ltd. These facilities were also secured by the Company's assets with the following carrying values:

		September 30, 2013		June 30, 2014
Inventories	$	24,505,399	$	-
Accounts receivable, net		31,392,774		-
Machinery and equipment, net		12,211,038		-
Land use rights, buildings and construction in progress of BAK Industrial Park		87,763,440		-
Land use rights and buildings of Research and Development Test Centre		43,143,525		-
Land use rights #1 and buildings of Tianjin Industrial Park Zone		17,857,940		-
	$	216,874,116	$	-

During the three months ended June 30, 2013 and 2014, interest expenses of $3,786,211 and $1,101,889, respectively, were incurred on the Company’s short-term bank borrowings.

During the nine months ended June 30, 2013 and 2014, interest expenses of $9,502,769 and $5,693,738, respectively, were incurred on the Company’s short-term bank borrowings.

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Schedule of discontinued operations in relation to the property leasing and management business reported in the condensed consolidated statements of operations and comprehensive loss (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 1	$ 1,459,719
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 2	4,069,146
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 3	(301,935)
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 4	(919,470)
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 5	1,157,784
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 6	3,149,676
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 7	45,778,467
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 8	45,778,467
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 9	46,936,251
Principal Activities, Basis Of Presentation And Organization Schedule Of Discontinued Operations In Relation To The Property Leasing And Management Business Reported In The Condensed Consolidated Statements Of Operations And Comprehensive Loss 10	$ 48,928,143

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Prepaid Land Use Rights, net

9 Months Ended

Jun. 30, 2014

Prepaid Land Use Rights, net [Text Block]

7. Prepaid Land Use Rights, net

Prepaid land use rights as of September 30, 2013 and June 30, 2014 consisted of the followings:

		September 30, 2013			June 30, 2014
Prepaid land use rights	$	25,104,833		$	-
Accumulated amortization		(3,664,541	)		-
	$	21,440,292		$	-
Less: Classified as current assets		(707,810	)		-
	$	20,732,482		$	-

Amortization expenses for the continuing operations were $150,712 and $418,720 for the three and nine months ended June 30, 2014, respectively.

Amortization expenses for the continuing operations were $543,386 and $831,840 for the three and nine months ended June 30, 2013, respectively.

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Intangible Assets, net

9 Months Ended

Jun. 30, 2014

Intangible Assets, net [Text Block]

8. Intangible Assets, net

Intangible assets as of September 30, 2013 and June 30, 2014 consist of the following:

		September 30, 2013			June 30, 2014
Trademarks, computer software and technology	$	1,430,756		$	-
Less: Accumulated amortization		(699,872	)		-
	$	730,884		$	-

Intangible assets represented the trademarks, computer software and technology used for battery production and research.

Amortization expenses for the continuing operations were $146,002 and $59,601 for the three months ended June 30, 2013 and 2014 and $232,819 and $154,662 for the nine months ended June 30, 2013 and 2014, respectively.

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Other short-term loans, Accrued Expenses and Other Payables

9 Months Ended

Jun. 30, 2014

Other short-term loans, Accrued Expenses and Other Payables [Text Block]

10. Other short-term loan, Accrued Expenses and Other Payables

(i) Other short-term loans were disposed as of September 30, 2013 and June 30, 2014 consisted of the following:

	Note		September 30, 2013		June 30, 2014
Advances from unrelated third parties
–   Shenzhen Huo Huang Import & Export Co., Ltd.	(a)	$	24,160,595	$	-
–   Gold State Securities Limited	(b)		2,450,540		-
–   Shenzhen Wellgain Industrial Co., Ltd.	(c)		816,847		-
–   Shenzhen De Dao Trading Co., Ltd. (former supplier of the Company)			816,847		-
–  Others			37,493		-
		$	28,282,322	$	-

(ii) Accrued expenses and other payables as of September 30, 2013 and June 30, 2014 consisted of the following:

	Note		September 30, 2013		June 30, 2014
Construction costs payable		$	5,894,919	$	7,555,228
Equipment purchase payable			5,359,816		-
Customer deposits			2,038,387		104,992
Other payables and accruals	(d)		5,400,459		1,569,895
Accrued loan interest			246,027		-
Accrued staff costs			3,869,318		-
Deferred revenue, current portion			346,509		-
		$	23,155,435	$	9,230,115

As of September 30, 2013, the Company had advances from unrelated parties of $28,282,322, which were unsecured, non- interest bearing and repayable on demand except for:

(a)	A loan from Shenzhen Huo Huang Import & Export Co., Ltd. that bears interest at 18% per annum;
(b)	A loan from Gold State Securities Limited that bears interest at 2.31% per annum, secured by fixed deposits of the same amount plus interest placed with a bank (Note 2) and guaranteed by Mr. Xiangqian Li; and
(c)	A loan of $3,267,387 (RMB20 million) from Shenzhen Wellgain Industrial Co., Ltd. which was interest bearing at 0.5% per month and repayable by July 9, 2013, guaranteed by Mr. Xiangqian Li and Mr. Chunzhi Zhang. The Company repaid principal of $2,450,540 and default interest of $201,958 prior to September 30, 2013, and repaid the remaining balance of $816,847 on October 21, 2013;

(d)	Other payables and accruals as of September 30, 2013 and June 30, 2014 included a payable for liquidated damages of approximately $1,210,000.
	On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company's previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of September 30, 2013 and June 30, 2014, no liquidated damages relating to both events have been paid.
	On November 9, 2007, the Company completed a private placement for the gross proceeds to the Company of $13,650,000 by selling 3,500,000 shares of common stock at the price of $3.90 per share. Roth Capital Partners, LLC acted as the Company's exclusive financial advisor and placement agent in connection with the private placement and received a cash fee of $819,000. The Company may have become liable for liquidated damages to certain shareholders whose shares were included in a resale registration statement on Form S-3 that the Company filed pursuant to a registration rights agreement that the Company entered into with such shareholders in November 2007. Under the registration rights agreement, among other things, if a registration statement filed pursuant thereto was not declared effective by the SEC by the 100th calendar day after the closing of the Company's private placement on November 9, 2007, or the “Effectiveness Deadline”, then the Company would be liable to pay partial liquidated damages to each such investor of (a) 1.5% of the aggregate purchase price paid by such investor for the shares it purchased on the one month anniversary of the Effectiveness Deadline; (b) an additional 1.5% of the aggregate purchase price paid by such investor every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until the earliest of the effectiveness of the registration statement, the ten-month anniversary of the Effectiveness Deadline and the time that the Company is no longer required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations; and (c) 0.5% of the aggregate purchase price paid by such investor for the shares it purchased in our November 2007 private placement on each of the following dates: the ten-month anniversary of the Effectiveness Deadline and every thirtieth day thereafter (pro rated for periods totaling less than thirty days), until the earlier of the effectiveness of the registration statement and the time that the Company no longer is required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations. Such liquidated damages would bear interest at the rate of 1% per month (prorated for partial months) until paid in full.
	On December 21, 2007, pursuant to the registration rights agreement, the Company filed a registration statement on Form S-3, which was declared effective by the SEC on May 7, 2008. As a result, the Company estimated liquidated damages amounting to $561,174 for the November 2007 registration rights agreement. As of September 30, 2013 and June 30, 2014, the Company had settled the liquidated damages with all the investors and the remaining provision of approximately $159,000 was included in other payables and accruals.

During the three months ended June 30, 2013 and 2014, interest expense of nil and $5,149,806 (including loan interest of $4,203,266 accruing on the loans from Mr. Wang as described in Note 1), respectively, was incurred on the Company's advances from unrelated third parties.

During the nine months ended June 30, 2013 and 2014, interest expense of nil and $11,687,780 (including loan interest of $8,347,735 accruing on the loans from Mr. Wang as described in Note 1), respectively, was incurred on the Company's advances from unrelated third parties.

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SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 1	$ 3,466,177
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 2	0
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 3	701,923
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 4	17,776
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 5	292,049
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 6	1,934
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 7	1,169,798
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 8	0
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 9	885,052
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 10	0
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 11	6,483,507
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 12	0
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 13	1,043,833
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 14	0
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 15	4,295,390
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 16	165,250
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 17	1,371,790
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 18	9,044
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 19	19,709,519
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 20	194,004
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 21	(1,980,914)
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 22	0
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 23	17,728,605
Prepayments And Other Receivables And Receivable From Former Subsidiaries Schedule Of Prepayments And Other Receivables 24	$ 194,004

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SCHEDULE OF NET REVENUES FROM MANUFACTURE OF BATTERIES BY PRODUCTS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 1	$ 7,564,890
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 2	3,361,596
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 3	25,868,259
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 4	24,486,486
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 5	15,415,073
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 6	29,050,554
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 7	55,236,046
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 8	61,800,144
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 9	8,475,404
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 10	3,341,239
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 11	38,767,076
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 12	9,277,848
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 13	10,462,818
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 14	9,963,279
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 15	20,314,424
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 16	17,145,636
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 17	3,680,541
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 18	2,278,178
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 19	13,211,773
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 20	9,329,136
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 21	45,598,726
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 22	47,994,846
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 23	153,397,578
Segment Information Schedule Of Net Revenues From Manufacture Of Batteries By Products 24	$ 122,039,250

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SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 1	$ 110,214,027
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 2	0
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 3	125,617,004
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 4	7,816
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 5	2,520,480
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 6	2,396
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 7	1,722,492
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 8	116,842
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 9	240,074,003
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 10	127,054
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 11	(123,715,978)
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 12	(8,292)
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 13	11,321,396
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 14	11,960,099
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 15	558,013
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 16	0
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 17	128,237,434
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 18	$ 12,078,861

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SCHEDULE OF INVENTORIES (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Inventories Schedule Of Inventories 1	$ 9,732,211
Inventories Schedule Of Inventories 2	0
Inventories Schedule Of Inventories 3	9,220,019
Inventories Schedule Of Inventories 4	0
Inventories Schedule Of Inventories 5	38,322,957
Inventories Schedule Of Inventories 6	806,699
Inventories Schedule Of Inventories 7	57,275,187
Inventories Schedule Of Inventories 8	$ 806,699

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Short-term Bank Loans (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF FACILITIES SECURED BY THE COMPANY'S ASSETS [Table Text Block]

		September 30, 2013		June 30, 2014
Inventories	$	24,505,399	$	-
Accounts receivable, net		31,392,774		-
Machinery and equipment, net		12,211,038		-
Land use rights, buildings and construction in progress of BAK Industrial Park		87,763,440		-
Land use rights and buildings of Research and Development Test Centre		43,143,525		-
Land use rights #1 and buildings of Tianjin Industrial Park Zone		17,857,940		-
	$	216,874,116	$	-

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Deferred Revenue (Narrative) (Details) In Millions, unless otherwise specified	9 Months Ended
	Jun. 30, 2014 USD ($) Y	Jun. 30, 2014 CNY
Deferred Revenue 1	$ 9
Deferred Revenue 2		56
Deferred Revenue 3	35	35

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(Loss) Earnings Per Share

9 Months Ended

Jun. 30, 2014

(Loss) Earnings Per Share [Text Block]

15. (Loss) Earnings Per Share

The following is the calculation of (loss) earnings per share:

		Three months ended June 30,						Nine months ended June 30,
		2013			2014			2013			2014
Net (loss) profit
- From continuing operations	$	(10,270,681	)	$	(9,829,430	)	$	(58,124,808	)	$	(26,368,149	)
- From discontinued operations		-			46,936,251			-			48,928,143
		(10,270,681	)		37,106,821			(58,124,808	)		22,559,994
Weighted average shares used in basic and diluted computation		12,619,597			12,619,597			12,619,597			12,619,597
(Loss) earnings per share – Basic and diluted
- From continuing operations		(0.81	)		(0.78	)		(4.61	)		(2.09	)
- From discontinued operations		-			3.72			-			3.88
(Loss) earnings per share – Basic and diluted	$	(0.81	)	$	2.94		$	(4.61	)	$	1.79

For the three and nine months ended June 30, 2014, the outstanding 4,200 stock options and 100,000 restricted shares were anti-dilutive and excluded from diluted (loss) earnings per share.

For the three and nine months ended June 30, 2013, the outstanding 246,151 stock options and 100,000 restricted shares were anti-dilutive and excluded from diluted loss per share.

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Principal Activities, Basis of Presentation and Organization (Tables)

9 Months Ended

Jun. 30, 2014

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

		Carrying amount
Cash and cash equivalents	$	4,163,555
Pledged deposits		119,382
Bill and trade accounts receivable, net		63,539,165
Inventories		39,941,073
Prepayments and other receivables		25,975,982
Property, plant and equipment, net		165,242,359
Prepaid land use rights, net		21,950,651
Intangible assets, net		583,662
Short-term bank loans		(63,181,988	)
Accounts and bills payable		(100,364,485	)
Accrued expenses and other payables		(39,278,719	)
Other short term loans		(38,906,793	)
Payable to the Company (Note)		(11,511,694	)
Deferred revenue		(7,215,622	)
Other long-term payables		(23,834,320	)
Rental deposits		(1,144,121	)
Deferred tax liabilities		(769,357	)
Net assets of BAK International and subsidiaries upon disposal		35,308,730
Consideration received in the form of :
Offset against loans from Mr. Wang		(83,812,839	)
Waiver of interest accruing up to June 30, 2014		(8,262,566	)
Net of stamp duty		(84,677	)
		(56,851,352	)
Impairment on receivable from the Disposal Group (note)		11,072,885
Gain on disposal of subsidiaries	$	(45,778,467	)

Schedule of assets and liabilities of discontinued operations of the property leasing and management business reported in the condensed consolidated balance sheets [Table Text Block]

		September 30, 2013
Prepayments and other receivables	$	37,239
Prepaid land use right, current portion		28,524
Current assets of discontinued operations	$	65,763
Noncurrent assets
Property, plant and equipment, net	$	41,914,724
Prepaid land use right, non current		1,200,277
Noncurrent assets of discontinued operations	$	43,115,001
Noncurrent liabilities of discontinued operations - Rental deposits from tenants	$	(715,398	)

Schedule of discontinued operations in relation to the property leasing and management business reported in the condensed consolidated statements of operations and comprehensive loss [Table Text Block]

		Three months ended			Nine months ended
		June 30, 2014			June 30, 2014
Net revenues	$	1,459,719		$	4,069,146
Cost of revenues		(301,935	)		(919,470	)
		1,157,784			3,149,676
Gain on disposal of subsidiaries		45,778,467			45,778,467
Income from discontinued operations	$	46,936,251		$	48,928,143

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Short-term Bank Loans (Narrative) (Details) (USD $)	9 Months Ended
	Jun. 30, 2014 M
Short-term Bank Loans 1	$ 151,404,677
Short-term Bank Loans 2	0
Short-term Bank Loans 3	5.88%
Short-term Bank Loans 4	15.00%
Short-term Bank Loans 5	9
Short-term Bank Loans 6	12
Short-term Bank Loans 7	3,786,211
Short-term Bank Loans 8	1,101,889
Short-term Bank Loans 9	9,502,769
Short-term Bank Loans 10	$ 5,693,738

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Significant Concentrations (Tables)

3 Months Ended

9 Months Ended

Jun. 30, 2014

Jun. 30, 2014

SCHEDULE OF REVENUE BY MAJOR CUSTOMERS BY REPORTING SEGMENTS [Table Text Block]

		Three months ended June 30,
		2013			2014
Jiangsu Huatiantong Technology Limited.	$	5,108,146	11.20%	$	*	*
Beijing Beny Wave Co., Ltd		5,476,526	12.00%		*	*
Dongguan Yulong Telecom Technology Co., Ltd.	$	4,752,907	10.42%	$	6,657,646	13.87%

	Nine months ended June 30,
	2013		2014
Tinno Mobile Technology Company Limited.	*	*	13,278,638	10.88%
Dongguan Yulong Telecom Technology Co., Ltd.	17,395,085	11.34%	*	*

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Condensed consolidated statements of changes in shareholders equity (USD $)	Common stock [Member] USD ($)	Donated shares [Member]	Additional paid-in capital [Member] USD ($)	Statutory Reserves [Member] USD ($)	Accumulated deficit [Member] USD ($)	Accumulated other comprehensive income [Member] USD ($)	Treasury shares [Member] USD ($)	Total USD ($)
Beginning Balance at Sep. 30, 2012	$ 12,763		$ 126,990,611	$ 7,786,157	$ (110,358,489)	$ 37,329,450	$ (4,066,610)	$ 71,795,571
Beginning Balance (Shares) at Sep. 30, 2012	12,763,269	14,101,689					(144,206)
Net loss					(58,124,808)			(58,124,808)
Share-based compensation for employee stock awards			297,729					297,729
Rounding difference on reverse stock split (Shares)	534
Disposal of a subsidiary								0
Foreign currency translation adjustment						2,235,990		2,235,990
Ending Balance at Jun. 30, 2013	12,763		127,288,340	7,786,157	(168,483,297)	39,565,440	(4,066,610)	16,204,482
Ending Balance (Shares) at Jun. 30, 2013	12,763,803	14,101,689					(144,206)
Beginning Balance at Sep. 30, 2013	12,763		127,349,617	7,786,157	(226,366,718)	37,910,937	(4,066,610)	(43,272,165)
Beginning Balance (Shares) at Sep. 30, 2013	12,763,803	14,101,689					(144,206)
Net loss					22,559,994			22,559,994
Share-based compensation for employee stock awards			87,606					87,606
Disposal of a subsidiary				(7,786,157)	46,794,606	(39,008,449)		(39,008,449)
Foreign currency translation adjustment						1,102,650		1,102,650
Ending Balance at Jun. 30, 2014	$ 12,763		$ 127,437,223		$ (157,012,118)	$ 5,138	$ (4,066,610)	$ (19,521,915)
Ending Balance (Shares) at Jun. 30, 2014	12,763,803	14,101,689					(144,206)

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Inventories

9 Months Ended

Jun. 30, 2014

Inventories [Text Block]

4. Inventories

Inventories as of September 30, 2013 and June 30, 2014 consisted of the following:

		September 30, 2013		June 30, 2014
Raw materials	$	9,732,211	$	-
Work-in-progress		9,220,019		-
Finished goods		38,322,957		806,699
	$	57,275,187	$	806,699

During the three months ended June 30, 2013 and 2014, obsolete inventory write-downs to lower of cost or market of $12,288,997 and $3,105,534, respectively, were charged to cost of revenues.

During the nine months ended June 30, 2013 and 2014, obsolete inventory write-downs to lower of cost or market of $38,084,761 and $8,752,543, respectively, were charged to cost of revenues.

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Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 1	$ 4,163,555
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 2	119,382
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 3	63,539,165
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 4	39,941,073
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 5	25,975,982
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 6	165,242,359
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 7	21,950,651
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 8	583,662
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 9	(63,181,988)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 10	(100,364,485)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 11	(39,278,719)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 12	(38,906,793)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 13	(11,511,694)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 14	(7,215,622)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 15	(23,834,320)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 16	(1,144,121)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 17	(769,357)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 18	35,308,730
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 19	(83,812,839)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 20	(8,262,566)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 21	(84,677)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 22	(56,851,352)
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 23	11,072,885
Principal Activities, Basis Of Presentation And Organization Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures 24	$ (45,778,467)

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SCHEDULE OF CAPITAL COMMITMENTS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Commitments And Contingencies Schedule Of Capital Commitments 1	$ 321,668
Commitments And Contingencies Schedule Of Capital Commitments 2	11,119,956
Commitments And Contingencies Schedule Of Capital Commitments 3	1,174,695
Commitments And Contingencies Schedule Of Capital Commitments 4	0
Commitments And Contingencies Schedule Of Capital Commitments 5	0
Commitments And Contingencies Schedule Of Capital Commitments 6	25,000,000
Commitments And Contingencies Schedule Of Capital Commitments 7	1,496,363
Commitments And Contingencies Schedule Of Capital Commitments 8	$ 36,119,956

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SDCHEDULE OF INTANGIBLE ASSETS (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Intangible Assets, Net Sdchedule Of Intangible Assets 1	$ 1,430,756
Intangible Assets, Net Sdchedule Of Intangible Assets 2	0
Intangible Assets, Net Sdchedule Of Intangible Assets 3	(699,872)
Intangible Assets, Net Sdchedule Of Intangible Assets 4	0
Intangible Assets, Net Sdchedule Of Intangible Assets 5	730,884
Intangible Assets, Net Sdchedule Of Intangible Assets 6	$ 0

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Pledged Deposits (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF PLEDGED DEPOSITS [Table Text Block]

		September 30, 2013		June 30, 2014
Pledged deposits with banks for:
Advances from an unrelated third party (Note 10(b))	$	2,450,540	$	-
Bills payable		5,687,147		-
	$	8,137,687	$	-

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SCHEDULE OF INCOME TAXES (Details) (USD $)	9 Months Ended
	Jun. 30, 2014
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 1	$ 32,777
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 2	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 3	277,599
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 4	16,474
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 5	25,228
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 6	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 7	5,806,678
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 8	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 9	58,005
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 10	0
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 11	6,084,277
Income Taxes, Deferred Tax Assets And Deferred Tax Liabilities Schedule Of Income Taxes 12	$ 16,474

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Share-based Compensation (Tables)

9 Months Ended

Jun. 30, 2014

SCHEDULE OF STOCK OPTION, ACTIVITY [Table Text Block]

				Weighted
				average	Weighted		Aggregate
	Number of			exercise price	average remaining		intrinsic
	shares			per share	contractual term		value (1)
Outstanding as of October 1, 2013	136,560		$	14.05	2.7years
Exercised	-			-
Cancelled	-			-
Forfeited	(132,360	)		14.05
Outstanding as of June 30, 2014	4,200		$	14.05	1.95 years	$	-
Exercisable as of June 30, 2014	4,200		$	14.05	1.95 years	$	-

SCHEDULE OF VALUATION OF OPTIONS GRANTED ON June 22, 2009 [Table Text Block]

Expected volatility	111.03%
Expected dividends	nil
Expected life	7 years
Risk-free interest rate	3.69%

SCHEDULE OF SUMMARY OF SHARE OPTION PLAN ACTIVITY June 30, 2014 [Table Text Block]

				Weighted	Weighted
				Average	average		Aggregate
	Number of			Exercise	remaining		intrinsic
	shares			price per share	contractual term		value (1)
Outstanding as of October 1, 2013	20,000		$	12.15	4 years
Exercised	-			-
Cancelled	-			-
Forfeited	(20,000	)		12.15
Outstanding as of June 30, 2014	-			-	-	$	-
Exercisable as of June 30, 2014	-			-	-	$	-

SCHEDULE OF VALUATION OF OPTIONS GRANTED ON April 8, 2010 [Table Text Block]

Expected volatility	51.79%
Expected dividends	nil
Expected life	7.5 years
Risk-free interest rate	3.90%

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Share-based Compensation

9 Months Ended

Jun. 30, 2014

Share-based Compensation [Text Block]

14. Share-based Compensation

(i) Options

The Company grants share options to officers and employees and restricted shares of common stock to its non-employee directors as rewards for their services.

Stock Option Plan

In May 2005, the Board of Directors adopted the China BAK Battery, Inc. 2005 Stock Option Plan (the “Plan”). The Plan originally authorized the issuance of up to 800,000 shares of the Company’s common stock, pursuant to stock options granted under the Plan, or as grants of restricted stock. The exercise price of options granted pursuant to the Plan must be at least equal to the fair market value of the Company’s common stock at the date of the grant. Fair market value is determined at the discretion of the designated committee on the basis of reported sales prices for the Company’s common stock over a ten-business-day period ending on the grant date. The Plan will terminate on May 16, 2055. On July 28, 2008, the Company’s stockholders approved certain amendments to the Plan, including an amendment increasing the total number of shares available for issuance under the Plan to 1,600,000.

On June 22, 2009, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of options to purchase 385,640 shares of the Company’s common stock to certain key employees, officers and consultants with an exercise price of $14.05 per share and a contractual life of 7 years. In accordance with the vesting provisions of the grants, the options will become vested and exercisable over five years in twenty equal quarterly installments on the first day of each fiscal quarter beginning on October 1, 2009.

A summary of share option plan activity for these options during the nine months ended June 30, 2014 is presented below:

				Weighted
				average	Weighted		Aggregate
	Number of			exercise price	average remaining		intrinsic
	shares			per share	contractual term		value (1)
Outstanding as of October 1, 2013	136,560		$	14.05	2.7years
Exercised	-			-
Cancelled	-			-
Forfeited	(132,360	)		14.05
Outstanding as of June 30, 2014	4,200		$	14.05	1.95 years	$	-
Exercisable as of June 30, 2014	4,200		$	14.05	1.95 years	$	-

⁽¹⁾ The intrinsic values of options at June 30, 2014 was zero since the per share market value of common stock of $2.35 was lower than the exercise price of the option of $14.05 per share.

The weighted average grant-date fair value of options granted on June 22, 2009 was $12.30 per share. The Company recorded non-cash share-based compensation expense of $57,328 and $10,498 for the three months ended June 30, 2013 and 2014, and $214,351 and of $64,604 for the nine months ended June 30, 2013 and 2014, respectively.

(i) Options (Continued)

The fair value of the above option awards granted on June 22, 2009 was estimated on the date of grant using the Black-Scholes Option Valuation Model that uses the following assumptions.

Expected volatility	111.03%
Expected dividends	nil
Expected life	7 years
Risk-free interest rate	3.69%

As of June 30, 2014, there were unrecognized compensation costs of $10,498 related to the above non-vested share options. These costs are expected to be recognized over a weighted average period of 0.25 years.

On April 8, 2010, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of options to purchase 20,000 shares of the Company’s common stock to certain key management with an exercise price of $12.15 per share and a contractual life of 7.5 years. In accordance with the vesting provisions of the grants, the options will become vested and exercisable in eight equal installments beginning on each quarter after September 30, 2010.

A summary of share option plan activity for these options during the nine months ended June 30, 2014 is presented below:

				Weighted	Weighted
				Average	average		Aggregate
	Number of			Exercise	remaining		intrinsic
	shares			price per share	contractual term		value (1)
Outstanding as of October 1, 2013	20,000		$	12.15	4 years
Exercised	-			-
Cancelled	-			-
Forfeited	(20,000	)		12.15
Outstanding as of June 30, 2014	-			-	-	$	-
Exercisable as of June 30, 2014	-			-	-	$	-

⁽¹⁾ The intrinsic values of options at June 30, 2014 was zero since the per share market value of common stock of $2.35 was lower than the exercise price of the option of $12.15 per share.

The weighted average grant-date fair value of options granted on April 8, 2010 was $7.05 per share. The Company recorded non-cash share-based compensation expense of $1,373 and nil for the three months ended June 30, 2013 and 2014and $8,703 and nil for the nine months ended June 30, 2013 and 2014, respectively, in respect of share options granted on April 8, 2010 which was allocated to research and development expense.

(i) Options (Continued)

The fair value of the above option awards granted on April 8, 2010 was estimated on the date of grant using the Black-Scholes Option Valuation Model that uses the following assumptions.

Expected volatility	51.79%
Expected dividends	nil
Expected life	7.5 years
Risk-free interest rate	3.90%

As of June 30, 2014, there were no unrecognized compensation costs related to the above non-vested share options.

(ii) Restricted Shares

Pursuant to the Plan and in accordance with the China BAK Battery, Inc. Compensation Plan for Non-Employee Directors, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of 100,000 restricted shares to the Chief Executive Officer, Mr. Xiangqian Li with a fair value of $14.05 per share on June 22, 2009. In accordance with the vesting schedule of the grant, the restricted shares will vest in twenty equal quarterly installments on the first day of each fiscal quarter beginning on October 1, 2009.

The Company recorded non-cash share-based compensation expense of $20,642 and $4,026 for the three months ended June 30, 2013 and 2014 and $74,875 and $23,002 for the nine months ended June 30, 2013 and 2014, respectively, in respect of the restricted shares granted on June 22, 2009, which was allocated to general and administrative expenses.

As of June 30, 2014, there was unrecognized stock-based compensation costs of $596 associated with these restricted shares granted to Mr. Xiangqian Li. These costs are expected to be recognized over a weighted-average period of 0.25 years.

As the Company itself is an investment holding company which is not expected to generate operating profits to realize the tax benefits arising from its net operating loss carried forward, no income tax benefits were recognized for such stock-based compensation cost under stock option plan for the three and nine months ended June 30, 2013 and 2014.