China BAK releases 3Q 2008 financial results

Tag : Notebook Battery Pack
China BAK Battery, Inc. ("China BAK", or "BAK") , one of the largest lithium-ion battery cell manufacturers in the world, as measured by production output, today announced its financial results for the third quarter of fiscal year 2008 ("FY08").

Recent Achievements and Highlights -- Achieved a new record revenue of $68.5 million in the traditionally slow quarter, over 30% increase as compared to last quarter, as sales of prismatic cells and cylindrical cells maintained continuous strong growth; -- Revenue from cylindrical cells, used in laptop computers, increased to $13.6 million, more than doubled from last quarter's levels and now accounts for 20% of our total revenues; started shipment of cylindrical cells to a well-known Taiwan-based notebook maker, ASUS Tek Computer Inc via pack assembling companies since May 2008. -- Narrower loss as compared to last quarter; gross margin starting to improve, reflecting results from sales price increase and cost-cutting efforts; -- Obtained final approval from Shenzhen Municipal Government regarding the land use rights of BAK Industrial Park; -- BAK International (Tianjin) Limited obtained a 4-year long-term loan of RMB 160 million from Agricultural Bank of China, which will fund operation in the Tianjin facilities commencing in or about October 2008; -- Continued to gain major customers for our prismatic cells and polymer cells, including Foxconn Technology Group, the largest manufacturing services provider in the world, and Sandisk, the largest supplier of innovative flash memory data storage products in the world.

Third Quarter FY08 Financial Results

Net revenues for the third quarter of FY08 were $68.5 million, up 33.4% from $51.3 million last quarter, and up 132.3% from $29.5 million in the same quarter of fiscal year 2007 ("FY07").

Revenues from prismatic cells, including aluminum-case cells, steel-case cells and battery packs, were $52.3 million, up 22.5% from $42.7 million last quarter and up 113.9% from $24.5 million in the third quarter of FY07. Revenues from aluminum-case cells were $33.8 million, up 11.5% from $30.3 million last quarter and up 129.4% from $14.7 million in the third quarter of FY07. Revenues from steel case cells were $10.0 million, up 70.5% from $5.9 million last quarter, and up 90.5% from $5.3 million in the third quarter of FY07. Revenues from battery packs were $8.5 million, up 29.8% from $6.6 million last quarter and up 90.2% from $4.5 million in the third quarter of FY07.