Long-term Bank Loans

12 Months Ended

Sep. 30, 2011

Long-term Bank Loans [Text Block]

12	Long-term Bank Loans
	As of September 30, 2010 and 2011, the Company had long-term bank loans of US$41,846,006 and US$38,470,278, respectively. As of September 30, 2011, US$14,975,142 was borrowed under a four-year long-term loan credit facility from China Development Bank, bearing interest at the benchmark rate of the People’s Bank of China (“PBOC”) for three-year to five-year long-term loans, which is currently 5.94% per annum. This long-term bank loan is repayable on February 28, 2016.
	Two other long-term loans totaled an aggregate borrowed amount of US$7,831,712 as of September 30, 2011. These loans were borrowed under a five-year long-term loan credit facility from Shenzhen Eastern Branch, Agricultural Bank of China, and carry interest at 90% of the benchmark rate of the PBOC for three-year to five-year long-term loans. The first loan of US$6,265,370 currently carries interest at 5.184% per annum and is repayable on January 25, 2012. The second loan of US$1,566,342 currently carries annual interest of 5.184% and is repayable on January 25, 2012.
	Another loan of US$15,663,424 as of September 30, 2011 was borrowed under a four-year long-term loan credit facility from Tianjin Branch, Agricultural Bank of China and carries interest at the benchmark rate of the PBOC for three-year to five-year long-term loans, which is currently 5.76% per annum.
	The long-term bank loan with China Development Bank is: (i) guaranteed by Mr. Xiangqian Li; (ii) secured by certain shares of the Company owned by Mr. Xiangqian Li; and (iii) secured by the property ownership and land use rights certificate relating to the land on which the Company’s Research and Development Test Centre is constructed and the facilities to be constructed thereon (Note 9).
	The long-term bank loan with Shenzhen Eastern Branch, Agricultural Bank of China is: (i) guaranteed by Mr. Xiangqian Li; (ii) secured by the Company’s machinery and equipment with carrying values of US$29,047,596 as of September 30, 2011 (Note 8); and (iii) secured by the property ownership certificate and land use rights certificate in relation to the land on which Shenzhen BAK’s corporate campus had been constructed and any machinery and equipment purchased and used in the campus subsequent to such construction.
	The long-term bank loan with Tianjin Branch, Agricultural Bank of China is secured by the machinery and equipment purchased for the automated high-power lithium battery cells production line in Tianjin with carrying values of US$1,995,265 as of September 30, 2011.
	Mr. Xiangqian Li did not receive any compensation for pledging his shares in the Company or acting as guarantor for the above long-term bank loans.
	The aggregate maturities of long-term bank loans as of September 30, 2011 are as follows:

Fiscal years ending on September 30,
2012	$	23,495,136
2013 or after		14,975,142
	$	38,470,278