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China BAK Reports Fourth Quarter and Fiscal Year 2007 Financ

发布时间:2018/11/07  编辑:918

SHENZHEN, China, Dec. 13 /Xinhua-PRNewswire/ -- China BAK Battery, Inc. ("China BAK", or "BAK") (Nasdaq: CBAK), one of the largest lithium-ion battery cell manufacturers in the world, as measured by production output, today announced its financial results for the fourth quarter and fiscal year ended September 30, 2007 ("FY07").

Recent Achievements and Highlights

-- Revenue increased by 48.5% from last quarter due to increased sales

to China OEM customers;

-- Product mix further improved with higher-margin aluminum case cells

now accounting for 60% of revenue; and sales of aluminum case cells

and lithium polymer cells grew by 77.5% and 206.6% from last quarter,

respectively;

-- Signed a non-binding Letter of Intent with Hewlett-Packard Company

("HP"), under which both parties will work together in a set time

frame to reach a definitive agreement for BAK to supply lithium ion

battery cells to HP; subsequently in the first quarter of fiscal

2008, our batteries have passed all safety, reliability and

performance tests by HP designated battery pack manufacturers; and

-- We're awarded "China Top Brand" by the General Administration of

Quality Supervision, Inspection and Quarantine of the People's

Republic of China, which is valid for three years. It further

solidifies our product quality, awareness and our leading position in

the industry in China. Those selected as "China Top Brand" are exempt

from all kinds of quality checks conducted by different departments

in different regions as well as customs inspections at exports. They

are also automatically classified as priority products for protection

against counterfeiting.

The Fourth Quarter of FY07 Financial Results

Net revenues for the fourth quarter of FY07 were $43.8 million, down 5.1% from $46.1 million in the same quarter of FY06, but up 48.5% from $29.5 million for the third quarter of FY07. Revenues from steel case cells were $7.0 million, up 32.8% from $5.3 million last quarter, and down 62.8% from $18.8 million in the same quarter of last year. Revenues from aluminum-case cells were $26.1 million, up 77.5% from $14.7 million last quarter and 63.3% from $16.0 million in the same period of last year.

In other products, revenues from battery packs were $3.6 million, down 19.9% from $4.5 million last quarter, but up 122.2% from $1.6 million in the same quarter of last year. Revenues from high-power lithium-ion cells were $3.2 million, up 0.4% from $3.1 million last quarter, and down 63.2% from $8.6 million in the same quarter of last year. Revenues from cylindrical cells, used in notebook computers, were $1.2 million, up 19.4% from last quarter and up 127.7% from the same quarter of last year. Revenues from lithium polymer cells, used in personal electronic devices such as PDAs, MP3 players and Bluetooth devices, were $2.7 million, up 206.6% from last quarter and up 328.3% from the same quarter of last year.

Gross profit for the fourth quarter of FY07 was $6.2 million, up 22.5% from $5.1 million last quarter and down 47.5% from $11.8 million in the same quarter of last year. Gross margin was 14.2%, compared to 17.2% last quarter and 25.6% in the same quarter of last year. The decrease of gross margin was primarily due to increased cost of raw materials, especially lithium cobalt dioxide.

Operating expenses totaled $5.8 million or 13.2% of revenues, as compared to $6.5 million or 22.0% of revenues last quarter and $5.9 million or 12.9% of revenues in the same quarter of last year. Research and development expenses were $1.3 million or 2.9% of revenues, as compared to $1.1 million or 3.8% of revenues last quarter and $1.5 million or 3.3% of revenues in the same quarter of last year. Sales and marketing expenses were $1.4 million or 3.3% of revenues, as compared to $1.2 million, or 4.0% of revenues last quarter and $1.5 million or 3.3% of revenues in the same quarter of last year. General and administrative expenses were $3.1 million or 7.0% of revenues, as compared to $4.2 million or 14.2% of revenues last quarter and $2.9 million or 6.3% of revenues in the same quarter last year.

Operating income for the fourth quarter of FY07 was $0.4 million, as compared to operating loss of $1.4 million last quarter and operating income of $5.9 million in the same quarter of last year. Operating margin was 1.0%, as compared to negative 4.8% last quarter and 12.8% in the same quarter of last year.

Net loss was $0.8 million in the fourth quarter of FY07, as compared to net loss of $2.7 million last quarter and net income of $4.7 million in the same quarter of last year. Diluted earnings per share were negative $0.02 compared with negative $0.05 per diluted share last quarter and $0.41 per diluted share in the same quarter of last year.

FY07 Financial Results

For FY07, net revenues increased to $145.9 million as compared to $143.8 million for FY06, an increase of $2.1 million or 1.4%; gross profit was $25.6 million or 17.6% of net revenues, down 35.4% from $39.6 million or 27.6% of net revenues for FY06; and net income was $0.5 million as compared to $20.2 million for FY06.

The year to year reduction in gross profit and net income is due to a significant increase in the purchase cost of raw materials, especially lithium cobalt dioxide, and significantly increased depreciation charges with the completion of two new production lines in FY07. The completion of these production lines represents a major step in China BAK's continued progress in transitioning from the Chinese secondary market to the international OEM market.

Financial Condition

At September 30, 2007, China BAK had $14.2 million in cash and a negative working capital of $7.0 million, reflecting a current ratio of 0.95:1. At quarter end total debt, including short-term bank loans, bills payable and long-term debt stood at $143.0 million and stockholders' equity totaled $126.7 million. China BAK had $105.3 million available for borrowing under its credit facilities.

Business Outlook

"Looking ahead at fiscal 2008, we anticipate strong growth in sales of our cylindrical and polymer cells, and steady growth in our aluminum-case cells. Our reputation for high quality and product safety will continue to be a competitive advantage as we look forward to manufacturing more products for international tier-1 OEMs. We believe we can achieve revenue target of $210 million, which has been communicated to the investment community at various conferences," commented Mr. Xiangqian Li, CEO of China BAK.

Conference Call

China BAK will host a conference call at 8:00 p.m. ET on Thursday, December 13, 2007, to discuss results for the fourth quarter of fiscal 2007 ended September 30, 2007. Joining Xiangqian Li, China BAK's President and Chief Executive Officer on the call will be Tony Shen, Chief Financial Officer and Dr. Huanyu Mao, Chief Operating Officer and Chief Technology Officer. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (888) 482-0024. International callers should dial (617) 801-9702. The pass code for the call is 12789205. If you are unable to participate in the call at this time, a replay will be available on Friday, December 14, at 7:00 p.m. ET, through Friday, December 28, at 7:00 p.m. ET. To access the replay, please dial (888) 286-8010. International callers should dial (617) 801-6888 and enter the conference ID number 73798676. This conference call will be broadcast live over the Internet and can be accessed by all interested parties on the China BAK website at http://www.bak.com.cn. To listen to the live webcast, please go to the China BAK website at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on China BAK's website for 90 days.

About China BAK Battery, Inc.

China BAK Battery, Inc. is one of the largest manufacturers of lithium-based battery cells in the world, as measured by production output. 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 and PDAs (Personal Digital Assistants). China BAK Battery, Inc.'s 1.9 million square foot 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.

Safe Harbor Statement

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 China BAK's business and risks related to operating in China. Please refer to China BAK's Annual Report on Form 10-K for the fiscal year ended September 30, 2006, as well as China BAK's Quarterly Reports on Form 10-Q for FY07, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. China BAK's actual results could differ materially from those contained in the forward-looking statements. China BAK undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

-Financial Tables Follow-

China BAK Battery, Inc. and subsidiaries

Consolidated Statements of Operations and Comprehensive Income

For the Three Months and Fiscal Years Ended September 30, 2006 and 2007

(Amounts in thousands, except per share data)

Three Months Ended Years Ended

September 30, September 30,

2006 2007 2006 2007

(unaudited)(unaudited)

Net Revenues $46,108 $43,772 $143,829 $145,861

Cost of revenues (34,292) (37,571) (104,196)(120,255)

Gross profit 11,816 6,201 39,633 25,606

Operating expenses:

Research and development costs (1,499) (1,274) (2,935) (3,957)

Sales and marketing expenses (1,512) (1,424) (5,055) (4,696)

General and administrative

expenses (2,921) (3,070) (9,071) 12,372)

Total operating expenses (5,932) (5,768) (17,061) (21,025)

Operating income 5,884 433 22,572 4,581

Finance costs, net (895) (2,089) (1,888) (5,225)

Gain on trading securities -- -- 279 --

Government grant income -- 1,035 -- 1,034

Other expenses (166) (706) (205) (103)

Income / (loss) before income taxes 4,823 (1,327) 20,758 287

Income taxes (expenses) / benefit (81) 477 (593) 196

Net income / (loss) $4,742 ($850) $20,165 $483

Other comprehensive income / (loss) 1,193 1,800 2,443 6,436

- Foreign currency translation

adjustment

Comprehensive income $5,935 $950 $22,608 $6,919

Net income / (loss) per share:

Basic $0.10 ($0.02) $0.41 $0.01

Diluted $0.10 ($0.02) $0.41 $0.01

Weighted average shares outstanding:

Basic 48,879 49,245 48,880 48,979

Diluted 49,076 49,245 48,913 49,442

China BAK Battery, Inc. and subsidiaries

Consolidated Balance Sheets

As of September 30, 2006 and 2007

(Amounts in thousands)

As of September 30

2006 2007

Assets

Current assets

Cash and cash equivalents $21,100 $14,197

Pledged deposits 12,972 4,595

Trade accounts receivable, net 64,332 63,151

Inventories 47,389 59,827

Deferred tax assets -- 503

Prepayments and other receivables 1,134 1,656

Total current assets 146,927 143,929

Property, plant and equipment, net 109,406 145,123

Lease prepayments, net 3,161 17,884

Intangible assets, net 75 121

Deferred tax assets 86 172

Total assets $259,655 $307,229

Liabilities

Current liabilities

Short-term bank loans $67,900 $89,871

Accounts and bills payable 48,316 45,589

Accrued expenses and other payables 25,881 15,466

Share-based payment liabilities 3,625 --

Total current liabilities 145,722 150,926

Long-term bank loans -- 29,291

Deferred tax liabilities 305 280

Total liabilities 146,027 180,497

Commitments and contingencies

Shareholders' equity:

Ordinary shares US$ 0.001 par value;

100,000,000 authorized; 48,885,896

and 49,250,853 issued and outstanding

as of September 30, 2006 and 2007 49 49

Additional paid-in-capital 68,127 74,311

Statutory reserves 5,792 6,427

Retained earnings 36,212 36,060

Accumulated other comprehensive

income 3,448 9,885

Total shareholders' equity 113,628 126,732

Total liabilities and shareholders'

equity $259,655 $307,229

China BAK Battery, Inc. and subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended September 30, 2006 and 2007

(Amounts in thousands, except per share data)

Years Ended September 30,

2006 2007

Cash flow from operating activities

Net income $20,165 $483

Adjustments to reconcile net income

to net cash provided by / (used in)

operating activities:

Depreciation and amortization 5,816 8,912

Provision for / (recovery of)

doubtful debts (556) 1,825

Provision for obsolete inventories -- 1,639

Share-based compensation 4,336 2,559

Deferred income taxes 73 (610)

Changes in operating assets and

liabilities:

Trade accounts receivable (19,938) 2,617

Inventories (25,693) (11,307)

Prepayments and other receivables 456 (219)

Accounts and bills payable 4,274 (3,038)

Accrued expenses and other

payables 5,382 124

Net cash provided by / (used in)

operating activities ($5,685) $2,985

Cash flow from investing activities

Purchases property, plant and

equipment (41,382) (48,793)

Addition in lease prepayment -- (17,042)

Purchases of intangible assets (34) (60)

Net cash used in investing activities ($41,416) ($65,895)

Cash flow from financing activities

Proceeds from borrowings 99,036 157,532

Repayment of borrowings (70,681) (111,115)

Decrease in pledged deposits 6,420 8,827

Amounts received from related parties 272 --

Net cash provided by financing

activities $35,047 $55,244

Effect of exchange rate changes on

cash and cash equivalents 98 763

Net decrease in cash and cash

Equivalents (11,956) (6,903)

Cash and cash equivalents at the

beginning of year 33,056 21,100

Cash and cash equivalents at the

end of year $21,100 $14,197

本文源自: 环亚娱乐



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