8-K

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

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): February 20, 2007 (February 20, 2007)

CHINA BAK BATTERY, INC.

(Exact name of registrant as specified in its charter)

Nevada	000-49712	86-0442833
(State of Incorporation)	(Commission File No.)	(IRS Employer ID No.)

BAK Industrial Park, No. 1 BAK Street
Kuichong Town, Longgang District
Shenzhen, Peoples Republic of China, 518119

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code:  (86-755) 8977-0093

Not applicable.

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01.   REGULATION FD DISCLOSURE.

          In anticipation of the planned presentation by China BAK Battery, Inc. (the “Company”) to a group of potential investors at the 19^th Annual OC Stock Conference (the “Conference”) in Laguna Niguel, California, sponsored by Roth Capital Partners, LLC, the Company is filing this current report on Form 8-K to disclose its planned presentation materials in order to avoid the selective disclosure of any material nonpublic information at the Conference.  The Company’s presentation materials are attached hereto as Exhibit 99.1.

          The information contained in this Current Report on Form 8-K and the exhibits attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information or such exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth in or exhibits to this Form 8-K shall not be deemed an admission as to the materiality of any information in this report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

ITEM 9.01.   FINANCIAL STATEMENTS AND EXHIBITS

          (d)         Exhibits.

99.1 Slide Presentation of China BAK Battery, Inc., dated February 2007.

SIGNATURE

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CHINA BAK BATTERY, INC.
Date: February 20, 2007	By:	/s/ Xiangqian Li
		Xiangqian Li
		Chief Executive Officer

EXHIBITS INDEX

Exhibit No.	Description
99.1	Slide Presentation of China BAK Battery, Inc., dated February 2007.

EX-99.1

Exhibit 99.1

Investor Presentation

February 2007

[LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Safe Harbor Statement

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This presentation includes or incorporates by reference statements that constitute 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. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.  These statements include, but are not limited to, information or assumptions about revenues, gross profit, expenses, income, capital and other expenditures, financing plans, capital structure, cash flow, liquidity, management’s plans, goals and objectives for future operations and growth.  In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology.  You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, levels of activity, performance or achievements.

2 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Investment Considerations

• One of the world’s biggest & fastest growing Li-ion battery cell manufacturers

• Large & growing $2.5 billion Li-ion battery market

• Expanding Li-ion product opportunities

• Recurring revenue stream

• Low cost manufacturing

• State-of-the-art technical capability

• Multiple growth opportunities

[GRAPHIC APPEARS HERE]

3 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Li-Ion Cell Market in China

• Li-Ion cell/battery producers growing more rapidly in China than rest of of world

• Production shift of OEM’s factories to Asia in general and China in particular

• Lower cost vs. Japan and Korea:  manufacturing costs, logistics, import duty

• Replacement cell phone market unique to China:

– 416 million cell phone subscribers growing by another 250 million over the next 5 years

– Cell phones are sold and resold through an existing distribution network – not disposed of like in the US

– BAK sells replacement batteries to the installed base of cell phones

4 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Li-ion vs. Competing Technologies

Feature	NiCd	NiMH	Li-ion
Operating Voltage	1.2	1.2	3.6
Cycle Life	500	500	1,000
Rapid Charge	Not Good	Good	Good
Memory Effect	Yes	No	No
Environmental Impact	Cadmium (poisonous)	None	None

Li-ion Batteries are the “defacto standard” in most applications due to higher power and longer duration

5 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Key Rechargeable Battery Applications

[GRAPHIC APPEARS HERE]	[GRAPHIC APPEARS HERE]	[GRAPHIC APPEARS HERE]
Notebook Computers	PDAs	Digital Cameras
[GRAPHIC APPEARS HERE]	[GRAPHIC APPEARS HERE] Li-ion Rechargeable Batteries	[GRAPHIC APPEARS HERE]
Cell phones		Bluetooth Headsets
[GRAPHIC APPEARS HERE]		[GRAPHIC APPEARS HERE]
Cordless power tools		Hybrid-electric vehicles
[GRAPHIC APPEARS HERE]	[GRAPHIC APPEARS HERE]	[GRAPHIC APPEARS HERE]
MP3/Portable Entertainment	Uninterruptible Power Supply	Light-electric vehicles

6 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Replacement Battery Market

• BAK has 60% share of this market

• Provides recurring revenue stream

• BAK’s historical core business

– Sales of steel and aluminum case battery cells to replacement battery manufacturers

– These manufacturers, who sell under their own brand name or private-label brands, are predominantly Chinese manufactures

• Relationships with key battery pack customers, including:

– SCUD (Fujian) Electronics Co., Ltd.

– Desay Power Tech. Co., Ltd.

– Shenzhen Ya Litong Electronic Co., Ltd.

7 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

The “Razor Blade” Business Model

Lithium batteries are consumable products.  More devices in use creates a recurring revenue stream along the lines of a “razor and razorblade” model

• Consumables are sold to the installed base

• Potential market expands at a geometric rate

• Stability; Predictability; “Evolutionary rather than Revolutionary” changes

[CHART APPEARS HERE]

8 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Sales to Mobile Phone OEMs

• The competitive environment

– Product safety is the OEM’s primary concern.

– Most OEM cells manufactured in Japan or Korea

– BAK believes it has a significant cost manufacturing advantage over Japanese and Korean suppliers

• New Customers

– BAK has announced a number of new customers:  Lenovo, Ben Q Siemens,  China Tech Faith Wireless, UTStarcom, SIM Technology Group, Longcheer Technology, Hisense

• Qualification underway with international Tier 1 OEM’s

9 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

High Power Cells:
Sales to A123 Systems

• First high power cell application:  DeWalt’s 36V line of power tools: “The power of corded without the cord”

• Sales to A123 Systems 15% of Q1 2007 revenues

• New high-powered battery products for applications in power tools, medical devices and hybrid electric vehicles

[GRAPHIC APPEARS HERE]

10 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Laptop Power Products

• Began commercial production in July 2006

• Significant increase in manufacturing sophistication as compared to mobile phone cells

• Customers

– Shenzhen Fonleate Electronics

– In negotiations with several Tier 1 OEMs

• Production is currently 40,000 pieces per day

[GRAPHIC APPEARS HERE]

11 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Lithium Polymer Product Line

• Utilized for small-format batteries customized in size and shape for specific applications

• Current Capacity > 1 million pieces per month

• Current applications include:

– MP3 players

– Bluetooth headsets

– Ultra light cell phones

[GRAPHIC APPEARS HERE]

12 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Low Cost Manufacturing

• Factory structure combines automated and manual processes that utilize low cost Chinese cost labor

– Automated equipment sourced in PRC and Taiwan

– New equipment like slitters, electrode processing equipment, and winders that decrease cost, decrease process variability, improve product reliability and safety.

• Strategic sourcing initiatives and use of purchasing power to gain the lowest material cost

International Labor Cost Comparison (per hour)	Domestic Labor Cost Comparison (per hour)
[CHART APPEARS HERE]	[CHART APPEARS HERE]

13 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

World Class Technical Capability

• BAK facilities meet or exceed international standards

– EU and CE attestation, UL Authentication, ISO9001: 2000, ISO4001:1996 certified

– Most advanced Li-ion research lab in China

– State-of-the-art analytical equipment

– Advanced automated model plant

• World class scientists BAK R&D Center

• R&D organization focus:

– Joint program development with customers and partners

– Unique ability to transition laboratory technology to manufacturing practice

14 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

State of the Art Facilities

• 90-Acre industrial campus in Shenzhen including R&D center

• 1.9 million sq. ft. of manufacturing space

• 10,500+ employees

• New planned facility in Tianjin

• New R&D offices planned in central Shenzhen

[GRAPHICS APPEAR HERE]

15 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Company Growth Plans

Distribution Channels
		Replacement Battery Manufacturers		OEM (Original Equipment Manufacturer)
Mobile Phones	•	60%+ Market Share	•	Automated, process controlled production capability established
	•	Strong relationships with key battery pack manufacturers	•	Growth catalyst: New OEM customers
	•	Growth catalyst:  Organic growth with market	•	Early success with China “Tier 1” OEM’s
			•	Targeting international “Tier 1” OEM’s
Laptop Computers	•	Growth catalyst: New battery pack manufacturer customers	•	Automated process controlled production capability established April 2006
			•	Growth catalyst: New OEM customers

16 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Company Growth Plans

OEM
(Original Equipment Manufacturer)
Lithium Polymer	•	Production capability established 2006
	•	Growth catalyst:  New customer development; continue to add manufacturing capacity
Lithium Phosphate	•	Production established 2006 to supply A123 with nano lithium phosphate based cells for high power applications.
High Power	•	Initial application:  Power tools manufactured by Black and Decker’s DeWalt division.
	•	Growth catalyst:  supply to A123
High power	•	Planned facility announced in Tianjin.
	•	Target applications:  UPS, LEV.
	•	Potential applications:  HEV

17 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Company Management

• Mr. Xiangqian Li, Chief Executive Officer

– Founder provided initial capital of $2.4 million from personal funds

– Full time, operating CEO

• Dr Huanyu Mao, Chief Operating Officer

– Significant expertise in Li Ion technology: equipment, materials and production processes

– Successful tenure as CTO at Lishen; previous to that NEC Moli Energy

– PhD in Electrochemistry Memorial University of Newfoundland; postdoctoral work at Simon Fraser University; widely published technical author; 7 LI-Ion patents

• Mr. Hongbin Han, Chief Financial Officer

– Chinese CPA and Chinese certified tax agent.

• Mr. Jim Groh, US Representative

– US based management presence

18 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Financial Overview

19 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Revenue Growth

[CHART APPEARS HERE]

For the fiscal years ended September 30 and the year- to-date period ended December 31.

20 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Gross Profit Growth

[CHART APPEARS HERE]

For the fiscal years ended September 30 and the year- to-date period ended December 31.

21 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Net Income Growth

[CHART APPEARS HERE]

For the fiscal years ended September 30 and the year- to-date period ended December 31.

22 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Capital Structure

Shares Outstanding	48.9 million
Float	21 million
Insider ownership	46%
Institutional Ownership	69%

23 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Income Statement

(US$ in millions)	Fiscal Year Ended 9/30/05		Fiscal Year Ended 9/30/06		Three months Ended 12/31/06
Revenues	$	101.9	$	143.8	$	43.1
Gross Profit	$	25.9	$	39.6	$	8.2
Operating Expenses	$	10.4	$	17.1	$	4.6
Operating Income	$	15.5	$	22.5	$	3.6
Pre-tax Income	$	13.1	$	20.7	$	3.6
Net Income	$	12.4	$	20.2	$	3.6

24 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Strong Balance Sheet

(US$ in millions)	9/30/2006		12/31/06
Current Assets	$	146.9	$	148.0
Total Assets	$	259.7	$	264.6
Cash & Restricted Cash	$	34.1	$	34.8
Current Liabilities	$	145.7	$	128.8
Short term Bank Loans & Notes Payable	$	67.9	$	71.1
Shareholders’ Equity	$	113.6	$	122.6
Total Liabilities and Stockholders’ Equity	$	259.7	$	264.6

25 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Investment Considerations

• One of the world’s biggest & fastest growing Li-ion battery cell manufacturers

• Large & growing $2.5 billion Li-ion battery market

• Expanding Li-ion product opportunities

• Recurring revenue stream

• Low cost manufacturing

• State-of-the-art technical capability

• Multiple growth opportunities

[GRAPHIC APPEARS HERE]

26 [LOGO OF CHINA BAK BATTERY, INC.]

[GRAPHIC APPEARS HERE]

Questions and Answers

[LOGO OF CHINA BAK BATTERY, INC.]