News

China BAK Battery Reports Quarterly Financial Results

February 09, 2009 by Jeff Shepard

China BAK Battery Inc. filed Quarterly Report for the period ended December 31, 2008. During the first quarter of fiscal 2009, we generated $68.1 million in net revenues, which is over 29.0% greater than our net revenues of $52.8 million in the first quarter of fiscal year 2008. The increase in net revenues over the net revenues generated in the same period of last year was primarily due to the increase in revenues from the sale of aluminum case cells and cylindrical cells. Strong cylindrical cell sales largely resulted from increased sales to the laptop computer market.

The company has access to $145.7 million in short-term credit facilities and $64.5 million in long-term credit facilities. As of December 31, 2008, the principal outstanding amounts under its credit facilities included short-term bank loans of $112.1 million, long-term bank loans of $13.2 million maturing within one year and long-term bank loans of $46.9 million maturing in over one year, and bills payable of $22.9 million, leaving $10.7 million of short-term funds and $4.4 million of long-term funds available for additional cash needs. In addition, on July 10, 2008, its $60.0 million shelf registration statement was declared effective by the SEC, pursuant to which it has issued $16.0 million in securities, giving it the potential to raise up to an additional aggregate $44.0 million in gross proceeds from future equity financings.

Net revenues increased to $68.1 million for the three months ended December 31, 2008 as compared to $52.8 million for the same period of the prior year, an increase of $15.3 million or 29.0%. Net revenues were greater for the fiscal quarter ended December 31, 2008 than for the same period of the prior year in part because of increased shipments as the company ramped up production capacity to meet increased customer orders for its products.