Profile: China BAK Battery, Inc. (CBAK.O)

China BAK Battery, Inc.(China BAK), incorporated on October 4, 1999, is a manufacturer of rechargeable lithium-based battery cells. The Company produces battery cells that are the principal component of rechargeable batteries used to power the applications, such as cellular phones; notebook computers; portable consumer electronics, such as digital cameras, portable media players, portable gaming devices and personal digital assistants (PDAs), and other applications, such as cordless power tools, mining lamps, light electric vehicles and hybrid electric vehicles. The Company products are packed into batteries by third-party battery pack manufacturers in accordance with the specifications of manufacturers of portable electronic applications. The Company conducts all its operations in China.

The Company manufactures prismatic lithium-ion cells for the cellular phone replacement battery market and original equipment manufacturer (OEM) market. The Company’s prismatic cells are targeted at the People’s Republic of China replacement market, where cellular phone batteries produced by independent battery manufacturers are purchased for use in second-hand cellular phones or as back-up batteries. The Company also operates in the cellular phone battery OEM market, where it sells battery cells for incorporation into branded batteries that are included in new cellular phones or are sold as replacement batteries. The Company's product line consists of Cylindrical lithium-ion cells, High-power lithium-phosphate cells and Lithium polymer cells.

Cylindrical lithium-ion cells are used in notebook computers. High-power lithium-phosphate cells used in cordless power tools, uninterruptible power supplies, mining lamps, electric bicycles, light electric vehicles, hybrid electric vehicles and other applications. Lithium polymer cells are used in ultra-portable electronic devices, such as high-end cellular phones, PDAs, bluetooth headsets, digital media players and digital audio players.

Prismatic Cells

The Company’s Prismatic cells contribute a major portion to the Company’s revenues. Prismatic Cells are contained in metal casing made of aluminum. At the request of customers that order prismatic battery packs, the Company also engages battery pack manufacturers to assemble its prismatic cells into batteries for a fee and then sell battery packs to these customers for the replacement market.

The Company competes with Sanyo Group, Sony Corporation, Matsushita Electric Works, Ltd., NEC Corporation, Hitachi, Ltd., LG Group, BYD Company Limited, Tianjin Lishen Battery Joint- Stock Co., Ltd., and Samsung Electronics Co., Ltd.

Cylindrical Cells

Cylindrical cells are used for notebook computers, portable digital versatile disc (DVD) players, digital cameras and camcorders. The Company targets its cylindrical cells for the notebook computer market. During the fiscal year ended September 30, 2009 (fiscal 2009), the Company initiated shipments of cylindrical cells to a first-tier international OEM notebook manufacturer. The Company has also been pursuing other tier-one OEM qualifications from international brand names, such as Dell and Lenovo.

The Company competes with Sanyo Group, Sony Corporation, Matsushita Electric Works, LG Group and Samsung Electronics Co., Ltd.

High-power Lithium-phosphate Cells

In October 2008, the Company completed construction of its first lithium-phosphate cells production line. In October 2008, the Company initiated trial production of lithium-phosphate cells.

The Company competes with Sanyo Group, Sony Corporation and BYD Company Limited.

Lithium Polymer Cells

The Company’s lithium polymer cells do not have a hard metal casing but rather a flexible, pouch-like container, thereby enabling flexible designs and customizations. During fiscal 2009, the Company received orders from notebook computer battery OEM manufacturer STL Technology Co., Ltd.

The Company competes with Amperex Technology Limited, LG Group and Samsung Electronics Co., Ltd.