China BAK Updates Business Outlook25 July 2006
China BAK Battery, Inc. (Nasdaq: CBAK), one of the largest lithium-ion battery cell manufacturers in China and in the world, announced its business outlook for the third-quarter ended June 30, 2006.
"For the third quarter, sales of our steel-case battery cells and aluminum-case battery cells were lower than we expected. The decline was primarily attributable to seasonal variations that are more accentuated than prior periods because of our increased production output," stated Xiangqian Li, the Company's Chief Executive Officer. "Specifically, we now expect third-quarter revenues to be approximately 15% below second-quarter revenues."
"We expect sales of battery cells for cellular phones to increase in the fourth quarter in line with seasonal trends. In addition, we expect sales of new products, such as battery cells for notebook computers and cordless power tools to increase as we ramp up production for two types of battery cells. Based on this, we expect our FY06 net income to be approximately $24 million."
Forward Looking Statements
This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China BAK Battery, Inc. and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: risks related to our business and risks related to operating in China. Please refer to our 10-K for specific details on our risk factors. This press release contains discussions regarding our preliminary quarterly results, which have not yet been verified by our auditors and thus, are subject to change. China BAK Battery, Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
About China BAK Battery, Inc.
China BAK Battery, Inc. is one of the largest manufacturers of lithium-based battery cells in China and in the world. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers, cordless power tools and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices, PDAs and Blackberries. China BAK Battery, Inc.'s 1.9 million square feet facilities are located in Shenzhen, PRC, and have been recently expanded to produce new products. China BAK Battery, Inc. is the largest manufacturer of lithium-ion battery cells for China's cellular phone replacement battery market.
For more information, please contact:
Company Contact:
Jim Groh
Tel: +1-843-277-0024
Email: jim@bakbattery.com
Or
Investor Relations Contacts:
Crocker Coulson
Tel: +1-310-477-9800, ext. 103
Email: crocker.coulson@ccgir.com
Source: prnewswire
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