UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant [X]
Filed by a Party other than the
Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ]
Confidential, For Use of the Commission Only (As Permitted by Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material under Rule 14a-12
CBAK ENERGY TECHNOLOGY, INC.
(Name of Registrant as Specified In Its Charter)
_____________________________________________________
(Name
of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No
fee required
[ ] Fee computed on table below per Exchange Act Rules
14a-6(i)(1) and 0-11.
|
(1)
|
Title of each class of securities to which transaction
applies:
|
|
|
|
|
(2)
|
Aggregate number of securities to which transaction
applies:
|
|
|
|
|
(3)
|
Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
|
|
|
|
|
(4)
|
Proposed maximum aggregate value of
transaction:
|
|
|
|
|
(5)
|
Total fee paid:
|
|
|
|
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as
provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing by registration
statement number, or the form or schedule and the date of its filing.
|
(1)
|
Amount Previously Paid:
|
|
|
|
|
(2)
|
Form, Schedule or Registration Statement No.:
|
|
|
|
|
(3)
|
Filing Party:
|
|
|
|
|
(4)
|
Date Filed:
|
|
|
|
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be
Held On September 22, 2017
To the Stockholders of CBAK ENERGY TECHNOLOGY, INC.:
You are cordially invited to
attend the 2017 Annual Meeting of Stockholders (the Annual Meeting) of CBAK
Energy Technology, Inc., a Nevada corporation (the Company) on Friday,
September 22, 2017, at 9:00 a.m., local time, at BAK Industrial Park, Meigui
Street, Huayuankou Economic Zone, Dalian City, 116450, China.
We are now filing this proxy
statement on Schedule 14A (the Proxy Statement) with the Securities and
Exchange Commission (SEC) in order to provide the disclosures required by the
rules and regulations of the SEC in connection with the Annual Meeting, which
will be held for the following purposes:
|
1.
|
To elect five (5) persons to the Board of Directors of
the Company, each to serve until the next annual meeting of stockholders
of the Company or until such person shall resign, be removed or otherwise
leave office;
|
|
|
|
|
2.
|
To ratify the appointment of Centurion ZD CPA Limited as
the Companys independent registered public accounting firm for the fiscal
year ending December 31, 2017;
|
|
|
|
|
3.
|
To have an advisory vote on the compensation of the
Companys Named Executive Officers;
|
|
|
|
|
4.
|
To vote to approve, on an advisory basis, the frequency
of the voting with respect to the compensation of the Companys Named
Executive Officers; and
|
|
|
|
|
5.
|
To transact such other business as may properly come
before the Annual Meeting or at any postponement or adjournment of the
Annual Meeting.
|
The foregoing items of business
are more fully described in the proxy statement accompanying this Notice or made
available over the Internet. We are not aware of any other business to come
before the Annual Meeting.
Only stockholders of record at
the close of business on July 27, 2017 (the Record Date) are entitled to
notice and to vote at the Annual Meeting and any adjournment or postponement
thereof.
It is important that your
shares are represented at the Annual Meeting. We urge you to review the attached
Proxy Statement and, whether or not you plan to attend the Annual Meeting in
person, please vote your shares promptly by casting your vote via the Internet
or, if you receive a full set of proxy materials by mail or request one be
mailed to you, and prefer to mail your proxy or voter instructions, please
complete, sign, date, and return your proxy or vote instruction form in the
pre-addressed envelope provided, which requires no additional postage if mailed
in the United States. You may revoke your vote by submitting a subsequent vote
over the Internet or by mail before the Annual Meeting, or by voting in person
at the Annual Meeting.
If you plan to attend the Annual
Meeting, please notify us of your intentions. This will assist us with meeting
preparations. If your shares are not registered in your own name and you would
like to attend the Annual Meeting, please follow the instructions contained in
the Notice of Internet Availability of Proxy Materials that is being mailed to
you and any other information forwarded to you by your broker, trust, bank, or
other holder of record to obtain a valid proxy from it. This will enable you to
gain admission to the Annual Meeting and vote in person.
|
By Order of the Board of Directors,
|
|
/s/
Yunfei Li
|
|
Secretary
|
July 31, 2017
|
|
TABLE OF CONTENTS
CBAK ENERGY TECHNOLOGY, INC.
BAK Industrial Park,
Meigui Street, Huayuankou Economic Zone,
Dalian City, 116450, China
This Proxy Statement and the
accompanying proxy are being furnished with respect to the solicitation of
proxies by the Board of Directors of CBAK Energy Technology, Inc., a Nevada
corporation (the Company or we), for the Companys Annual Meeting of
Stockholders (the Annual Meeting). The Annual Meeting is to be held at 9:00
a.m., local time, on Friday, September 22, 2017, and at any adjournment(s) or
postponement(s) thereof, at the principal executive offices of the Company,
located at BAK Industrial Park, Meigui Street, Huayuankou Economic Zone, Dalian
City, 116450, China.
The approximate date on which the
Proxy Statement and the accompanying notice and form of proxy are intended to be
sent or made available to stockholders is on or about July 31, 2017.
QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE
ANNUAL MEETING
Why am I receiving these materials?
Our records indicate that you
owned your shares of Company Common Stock at the close of business on July 27,
2017 (the Record Date). You have been sent this Proxy Statement and the
enclosed proxy because the Company is soliciting your proxy to vote your shares
of Common Stock at the Annual Meeting on the proposals described in this Proxy
Statement.
What proposals will be voted at the Annual Meeting?
Four proposals will be voted on
at the Annual Meeting:
|
(1)
|
The election of five (5) persons to the Board of
Directors of the Company, each to serve until the next annual meeting of
stockholders of the Company or until such person shall resign, be removed
or otherwise leave office (Proposal 1);
|
|
|
|
|
(2)
|
The ratification of the appointment of Centurion ZD CPA
Limited as the Companys independent registered public accounting firm for
the fiscal year ending December 31, 2017 (Proposal 2);
|
|
|
|
|
(3)
|
A vote to approve, on an advisory basis, the compensation
of our Named Executive Officers (Proposal 3); and
|
|
|
|
|
(4)
|
A vote to approve, on an advisory basis, the frequency of
the voting with respect to the compensation of our Named Executive
Officers (Proposal 4).
|
We will also consider any other
business that properly comes before the Annual Meeting. If any other matters are
properly brought before the Annual Meeting, the persons named in the enclosed
proxy card or voter instruction card will vote the shares they represent using
their judgment.
What are the recommendations of the Board of Directors?
Our Board of Directors
unanimously recommends that you vote:
|
(1)
|
For the election of the nominated directors (Proposal
1);
|
1
|
(2)
|
For the ratification of the appointment of Centurion ZD
CPA Limited as the Companys independent registered public accounting firm
for the fiscal year ending December 31, 2017 (Proposal 2);
|
|
|
|
|
(3)
|
For the proposal regarding a vote to approve, on an
advisory basis, the compensation of our Named Executive Officers (Proposal
3);
|
|
|
|
|
(4)
|
EVERY THREE YEARS for the proposal regarding a vote to
approve, on an advisory basis, the frequency of the voting with respect to
the compensation of our Named Executive Officers (Proposal
4).
|
Will there be any other items of business on the agenda?
The Board of Directors knows of
no other matters that will be presented for consideration at the Annual Meeting.
Nonetheless, in case there is an unforeseen need, the accompanying proxy gives
discretionary authority to the persons named on the proxy with respect to any
other matters that might be brought before the Annual Meeting or at any
postponement or adjournment of the Annual Meeting. Those persons intend to vote
that proxy in accordance with their judgment. If for any reason any of the
nominees are not available as candidates for director, and our Board of
Directors has not reduced the authorized number of directors on our Board of
Directors, the persons named as proxy holders will vote your proxy for such
other candidate or candidates as may be nominated by the Board of Directors.
Who is entitled to vote at the Annual Meeting?
All owners of our Common Stock as
of the close of business on the Record Date are entitled to vote their shares of
Common Stock at the Annual Meeting and any adjournment or postponement thereof.
As of the Record Date, a total of 26,223,317 shares of Common Stock are
outstanding and eligible to vote at the Annual Meeting. Each share of Common
Stock is entitled to one vote on each matter properly brought before the Annual
Meeting. The enclosed proxy card or voting instruction card shows the number of
shares you are entitled to vote at the Annual Meeting.
Stockholder of Record: Shares
Registered in Your Name
If on the Record Date your shares
were registered directly in your name with the Company, then you are a
stockholder of record. As a stockholder of record, you may vote in person at the
Annual Meeting or vote by proxy. Whether or not you plan to attend the Annual
Meeting, to ensure your vote is counted, we encourage you to vote either by
Internet or by filling out and returning the enclosed proxy card.
Beneficial Owner: Shares
Registered in the Name of a Broker or Bank
If on the Record Date your shares
were held in an account at a brokerage firm, bank, dealer, or other similar
organization, then you are the beneficial owner of shares held in street name
and these proxy materials are being forwarded to you by that organization. The
organization holding your account is considered the stockholder of record for
purposes of voting at the Annual Meeting. As the beneficial owner, you have the
right to direct your broker or other agent on how to vote the shares in your
account. Other than routine matters, such as a proposal to ratify an independent
registered public accounting firm, your broker will not be able to vote your
shares unless your broker receives specific voting instructions from you. You
must give your broker voting instructions in order for your vote to be counted
on the proposal to elect directors (Proposal 1), the proposal regarding a vote
to approve, on an advisory basis, the compensation of our Named Executive
Officers (Proposal 3) and the proposal regarding a vote to approve, on an
advisory basis, the frequency of the voting with respect to the compensation of
our Named Executive Officers (Proposal 4). We strongly encourage you to vote.
How do I vote?
2
Your shares may only be voted at
the Annual Meeting if you are present in person or are represented by proxy.
Whether or not you plan to attend the Annual Meeting, we encourage you to vote
by proxy to ensure that your shares will be represented.
You may vote using any of the
following methods:
|
|
By Internet
. You may vote by using the Internet in
accordance with the instructions provided on the Notice of Internet
Availability of Proxy Materials. The Internet voting procedures are
designed to authenticate stockholders identities, to allow stockholders
to vote their shares and to confirm that their instructions have been
properly recorded.
|
|
|
|
|
|
By Mail
. Stockholders of record of Common Stock as
of the Record Date may submit proxies by completing, signing and dating
their proxy cards and mailing them in the accompanying pre-addressed
envelopes. If you return your signed proxy but do not indicate your voting
preferences, your shares will be voted on your behalf FOR the five
nominees to the Board of Directors (Proposal 1), FOR the ratification of
Centurion ZD CPA Limited as our independent registered public accounting
firm for our fiscal year ending September 30, 2017 (Proposal 2), FOR the
proposal regarding a vote to approve, on an advisory basis, the
compensation of our Named Executive Officers (Proposal 3) and EVERY THREE
YEARS for the proposal regarding a vote to approve, on an advisory basis,
the frequency of the voting with respect to the compensation of our Named
Executive Officers (Proposal 4). Stockholders who hold shares beneficially
in street name and have requested to receive printed proxy materials may
provide voting instructions by mail by completing, signing and dating the
voting instruction forms provided by their brokers, banks or other
nominees and mailing them in the accompanying pre-addressed envelopes.
|
|
|
|
|
|
In person at the Annual Meeting.
Shares held in
your name as the stockholder of record may be voted in person at the
Annual Meeting or at any postponement or adjournment of the Annual
Meeting. Shares held beneficially in street name may be voted in person
only if you obtain a legal proxy from the broker, bank or nominee that
holds your shares giving you the right to vote the shares.
Even if
you
plan to attend the Annual Meeting, we recommend that you
also submit your proxy or voting
instructions by mail or
Internet so that your vote will be counted if you later decide not to
attend the
Annual Meeting
.
|
Can I change my vote or revoke my proxy?
If you are a stockholder of
record, you may revoke your proxy at any time prior to the vote at the Annual
Meeting. If you submitted your proxy by mail, you must file with our Secretary a
written notice of revocation or deliver, prior to the vote at the Annual
Meeting, a valid, later-dated proxy. If you submitted your proxy by the
Internet, you may revoke your proxy with a later Internet proxy. Attendance at
the Annual Meeting will not have the effect of revoking a proxy unless you give
written notice of revocation to the Secretary before the proxy is exercised or
you vote by written ballot at the Annual Meeting. If you are a beneficial owner,
you may vote by submitting new voting instructions to your broker, bank or
nominee, or, if you have obtained a legal proxy from your broker, bank or
nominee giving you the right to vote your shares, by attending the meeting and
voting in person.
Who may attend the Annual Meeting?
All stockholders that were
stockholders of the Company as of the Record Date, or their authorized
representatives, may attend the Annual Meeting. Admission to the Annual Meeting
will be on a first-come, first-served basis. If your shares are held in the name
of a brokerage firm, bank, dealer or other similar organization that holds your
shares in street name and you plan to attend the Annual Meeting, you should
bring proof of ownership to the Annual Meeting, such as a current bank or
brokerage account statement, to ensure your admission.
What constitutes a quorum and how will votes be counted?
3
The Annual Meeting will be held
if a quorum, consisting of thirty-three and one-third percent (33-1/3%) of the
outstanding shares of Common Stock entitled to vote as of the Record Date, is
represented in person or by proxy. Abstentions and broker non-votes will be
counted as present and entitled to vote for purposes of determining a quorum.
A broker non-vote occurs when a
nominee, such as a bank or broker, holding shares for a beneficial owner, does
not vote on a particular proposal because the nominee does not have
discretionary voting power with respect to that item and has not received
instructions from the beneficial owner. Under the rules of the New York Stock
Exchange, absent instructions from the beneficial owners, banks and brokers who
hold shares in street name for beneficial owners have the authority to vote only
on routine corporate matters, such as the ratification of the appointment of
Centurion ZD CPA Limited as our independent registered public accounting firm
for our fiscal year ending September 30, 2017 (Proposal 2) without instructions
from the beneficial owner of those shares. On the other hand, absent
instructions from the beneficial owner of such shares, a broker is not entitled
to vote shares held for a beneficial owner on certain non-routine matters,
such as the uncontested election of our directors (Proposal 1), the vote to
approve, on an advisory basis, the compensation of our Named Executive Officers
(Proposal 3) and the vote to approve, on an advisory basis, the frequency of the
voting with respect to the compensation of our Named Executive Officers
(Proposal 4).
Broker non-votes are counted for
purposes of determining whether or not a quorum exists for the transaction of
business at the Annual Meeting or any postponement or adjournment of the Annual
Meeting, but will not be counted for purposes of determining the number of
shares represented and voted with respect to an individual proposal, and
therefore will have no effect on the outcome of the vote on an individual
proposal. Thus, if you do not give your broker specific voting instructions,
your shares may not be voted on these non-routine matters and will not be
counted in determining the number of shares necessary for approval.
How are proxies being solicited and who will pay for the
solicitation of proxies?
This proxy solicitation is being
made by the Company on behalf of the Board of Directors of the Company and will
be paid for by the Company. We will reimburse brokerage firms, banks and other
persons representing beneficial owners of shares for their expenses in
forwarding solicitation materials to such beneficial owners. Proxies may be
solicited by certain of our directors, officers and regular employees personally
or by telephone, facsimile or electronic mail. No additional compensation will
be paid to these persons for such services.
I am a stockholder, and I only received a copy of the Notice
of Internet Availability of Proxy Materials (Notice) in the mail. How may I
obtain a full set of the proxy materials?
In accordance with the notice
and access rules of the SEC, we may furnish proxy materials, including this
Proxy Statement, to our stockholders of record and beneficial owners of shares
by providing access to such documents on the Internet instead of mailing printed
copies. Stockholders will not receive printed copies of the proxy materials
unless they request them. Instead, the Notice, which was mailed to our
stockholders, will instruct you as to how you may access and review all of the
proxy materials on the Internet. If you would like to receive a paper or
electronic copy of our proxy materials, you should follow the instructions for
requesting such materials in the Notice.
I share an address with another stockholder, and we received
only one paper copy of the proxy materials. How may I obtain an additional copy
of the proxy materials?
We have adopted a procedure
called householding, which the SEC has approved. Under this procedure, we
deliver a single copy of the Notice and, if applicable, the proxy materials to
multiple stockholders who share the same address unless we received contrary
instructions from one or more of the stockholders. This procedure reduces our
printing costs, mailing costs and fees. Stockholders who participate in
householding will continue to be able to access and receive separate proxy
cards. Upon written or oral request, we will deliver promptly a separate copy of
the Notice and, if applicable, the proxy materials to any stockholder at a
shared address to which we delivered a single copy of any of these documents. To
receive a separate copy of the Notice and, if applicable, these proxy materials,
stockholders may contact:
4
Corporate Secretary
CBAK Energy Technology, Inc.
BAK
Industrial Park,
Meigui Street, Huayuankou Economic Zone,
Dalian City,
116450, China
Telephone: 86-411-39185985; Fax: 86-411-39185980
E-mail:
ir@cbak.com.cn
Stockholders who hold shares in
street name (as described above) may contact their brokerage firm, bank,
broker-dealer or other similar organization to request information about
householding.
Whom should I contact with other questions?
You may obtain information from
us by making a request by telephone or in writing at the address of our
Corporate Secretary set forth above.
5
|
Important Notice Regarding the Availability of Proxy
Materials for
|
the Annual Meeting to Be Held on September 22, 2017:
|
|
The Notice of Annual Meeting of Stockholders, Proxy
Statement and 2016 Annual Report are
|
available at http://onlineproxyvote.com/CBAK/
|
|
6
SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
Securities Ownership of Certain Beneficial Owners and
Management
The following table sets forth
information known to us with respect to the beneficial ownership of our Common
Stock as of the close of business on July 27, 2017 (the Reference Date) for:
(i) each person known by us to beneficially own more than 5% of our voting
securities, (ii) each named executive officer, (iii) each of our directors and
nominees, and (iv) all of our named executive officers and directors as a group:
Names of Management and Names
|
|
Amount and
Nature of
|
|
of Certain Beneficial Owners
(1)
|
|
Beneficial Ownership
(1)
|
|
|
|
Number
(2)
|
|
|
Percent
(3)
|
|
|
|
|
|
|
|
|
Yunfei Li
(4)
|
|
3,806,018
|
|
|
14.4%
|
|
|
|
|
|
|
|
|
J. Simon Xue
(5)
|
|
10,000
|
|
|
*
|
|
|
|
|
|
|
|
|
Martha C. Agee
(6)
|
|
17,500
|
|
|
*
|
|
|
|
|
|
|
|
|
Jianjun He
(6)
|
|
17,500
|
|
|
*
|
|
|
|
|
|
|
|
|
Guosheng Wang
(7)
|
|
31,667
|
|
|
*
|
|
|
|
|
|
|
|
|
Wenwu Wang
(8)
|
|
35,834
|
|
|
*
|
|
|
|
|
|
|
|
|
All executive officers and
directors as a group (6 persons)
|
|
3,918,519
|
|
|
14.9%
|
|
*
|
Denotes less than 1% of the outstanding shares
of Common Stock.
|
(1)
|
The number of shares beneficially owned is determined
under Securities and Exchange Commission (SEC) rules, and the
information is not necessarily indicative of beneficial ownership for any
other purpose. Under those rules, beneficial ownership includes any shares
as to which the individual has sole or shared voting power or investment
power, and also any shares which the individual has the right to acquire
within 60 days of the Reference Date, through the exercise or conversion
of any stock option, convertible security, warrant or other right (a
Presently Exercisable security). Including those shares in the table
does not, however, constitute an admission that the named stockholder is a
direct or indirect beneficial owner of those shares.
|
|
|
(2)
|
Unless otherwise indicated, each person or entity named
in the table has sole voting power and investment power (or shares that
power with that persons spouse) with respect to all shares of Common
Stock listed as owned by that person or entity.
|
|
|
(3)
|
A total of 26,223,317 shares of Common Stock are
considered to be outstanding on the Reference Date. For each beneficial
owner above, any Presently Exercisable securities of such beneficial owner
have been included in the denominator, pursuant to Rule 13d-3(d)(1) under
the Securities Exchange Act of 1934, as amended, or the Exchange
Act.
|
|
|
(4)
|
On June 30, 2015, Mr. Yunfei Li was granted 30,000
restricted shares of the Companys common stock, par value $0.001, under
the Companys. 2015 Equity Incentive Plan (the 2015 Plan). The
restricted shares vest over a three year period in 12 equal quarterly
installments with the first vesting date on June 30, 2015. On April 19,
2016, Mr. Li was granted an additional 150,000 restricted shares under the
2015 Plan. Such shares vest semi-annually in 6 equal installments over a
three year period with the first vesting on December 31,
2016.
|
7
(5)
|
On April 19, 2016, pursuant to the 2015 Plan, the Company
granted Dr. Xue an aggregate of 30,000 restricted shares of the Companys
common stock. The restricted shares vest semi-annually in 6 equal
installments over a three year period with the first vesting on December
31, 2016.
|
|
|
(6)
|
On June 30, 2015, each of our then independent directors
was granted 30,000 restricted shares of the Companys common stock under
the 2015 Plan. The restricted shares vest over a three year period in 12
equal quarterly installments with the first vesting date on June 30,
2015.
|
|
|
(7)
|
On June 30, 2015, Mr. Guosheng Wang was granted 50,000
restricted shares of the Companys common stock under the 2015 Plan. The
restricted shares vest over a three year period in 12 equal quarterly
installments with the first vesting date on June 30, 2015. On April 19,
2016, Mr. Wang was granted an additional 20,000 restricted shares under
the 2015 Plan. Such shares vest semi-annually in 6 equal installments over
a three year period with the first vesting on December 31, 2016.
|
|
|
(8)
|
On June 30, 2015, Mr. Wenwu Wang was granted 50,000
restricted shares of the Companys common stock under the 2015 Plan. The
restricted shares vest over a three year period in 12 equal quarterly
installments with the first vesting date on June 30, 2015. On April 19,
2016, Mr. Wang was granted an additional 20,000 restricted shares under
the 2015 Plan. Such shares vest semi-annually in 6 equal installments over
a three year period with the first vesting on December 31,
2016.
|
Changes in Control
There are no arrangements known
to us, including any pledge by any person of our securities, the operation of
which may at a subsequent date result in a change in control of the Company.
8
PROPOSAL 1. - ELECTION OF DIRECTORS
Our Board of Directors is
responsible for establishing broad corporate policies and monitoring the overall
performance of the Company. It selects the Companys executive officers,
delegates authority for the conduct of the Companys day-to-day operations to
those officers, and monitors their performance. Members of the Board of
Directors are kept informed of the Companys business by participating in Board
of Directors and Committee meetings, by reviewing analyses and reports, and
through discussions with the Chairman and other officers.
Effective December 8, 2006,
Article V of our articles of incorporation was amended so that the number of our
directors shall be determined in accordance with our Bylaws instead of in
accordance with provisions contained in our articles of incorporation. At the
Annual Meeting, five (5) directors will be elected, each to hold office until
the next annual meeting of stockholders or his or her earlier death or
resignation or until his or her successor, if any, is elected or appointed. The
individuals who have been nominated for election to the Board of Directors at
the Annual Meeting are listed in the table below. Each of the nominees is a
current director of the Company.
If, as a result of circumstances
not now known or foreseen, any of the nominees is unavailable to serve as a
nominee for the office of Director at the time of the Annual Meeting, the
holders of the proxies solicited by this Proxy Statement may vote those proxies
either (i) for the election of a substitute nominee who will be duly designated
by the proxy holders or by the present Board of Directors or (ii) for the
balance of the nominees, leaving a vacancy. Alternatively, the size of the Board
may be reduced accordingly. The Board of Directors has no reason to believe that
any of the nominees will be unwilling or unable to serve, if elected as a
Director. To be elected, each of the five nominees proposed for election as
directors at the Annual Meeting must receive at least a plurality of the votes
cast at the Annual Meeting.
Director Selection
There have been no material
changes to the procedures by which stockholders may recommend nominees to our
Board of Directors since such procedures were last disclosed. As provided in its
Charter, the Nominating and Corporate Governance Committee of the Companys
Board of Directors is responsible for identifying individuals qualified to
become Board members and recommending to the Board nominees for election as
directors. The Nominating and Corporate Governance Committee considers
recommendations for director nominees, including those submitted by the
Companys stockholders, on the bases described below. Stockholders may recommend
nominees by writing to the Nominating and Corporate Governance Committee c/o the
Secretary at BAK Industrial Park, Meigui Street, Huayuankou Economic Zone,
Dalian City, 116450, China; via email at IR@cbak.com.cn; or via fax at
(86)411-39185980. Stockholder recommendations will be promptly provided to the
chairman of the Nominating and Corporate Governance Committee. To be considered
by the Nominating and Corporate Governance Committee for inclusion in the proxy
for the 2018 annual meeting, recommendations must be received by the Secretary
of the Company not later than the close of business on December 31, 2017.
In identifying and evaluating
nominees, the Nominating and Corporate Governance Committee may consult with the
other Board members, management, consultants, and other individuals likely to
possess an understanding of the Companys business and knowledge of suitable
candidates. In making its recommendations, the Nominating and Corporate
Governance Committee assesses the requisite skills and qualifications of
nominees and the composition of the Board as a whole in the context of the
Board's criteria and needs. In evaluating the suitability of individual Board
members, the Nominating and Corporate Governance Committee may take into account
many factors, including general understanding of marketing, finance and other
disciplines relevant to the success of a publicly traded company in todays
business environment; understanding of the Companys business and technology;
the international nature of the Companys operations; educational and
professional background; and personal accomplishment. The Nominating and
Corporate Governance Committee evaluates each individual in the context of the
Board as a whole, with the objective of recommending a group that can best
perpetuate the success of the Companys business and represent stockholder
interests through the exercise of sound judgment, using its diversity of
experience. The Nominating and Corporate Governance Committee also ensures that
a majority of nominees would be independent directors as defined under the
applicable rules of the SEC and The NASDAQ Stock Market LLC (NASDAQ). For a
description of the qualifications that the Nominating and Corporate Governance Committee seeks in potential nominees, please see
Nominees Qualifications for All Directors below.
9
The names, the positions with the
Company and the ages as of the Record Date of the individuals who are our
nominees for election as directors are:
Name
|
|
Age
|
|
Position/s
|
|
Director Since
|
Yunfei Li
|
|
51
|
|
Chairman, President and Chief
Executive Officer
|
|
March 2016
|
Jianjun He
|
|
45
|
|
Director
|
|
November 2013
|
J. Simon Xue
|
|
63
|
|
Director
|
|
February 2016
|
Martha C. Agee
|
|
62
|
|
Director
|
|
November 2012
|
Guosheng Wang
|
|
45
|
|
Director
|
|
August 2014
|
Director Qualifications
Qualifications, Attributes, Skills and Experience to be
Represented on the Board of Directors as a Whole
In its assessment of each
potential candidate, including those recommended by stockholders, the Nominating
and Corporate Governance Committee considers the nominees judgment, integrity,
experience, independence, understanding of the Companys business or other
related industries and such other factors the Nominating and Corporate
Governance Committee determines are pertinent in light of the current needs of
the Board of Directors. The Nominating and Corporate Governance Committee also
takes into account the ability of a Director to devote the time and effort
necessary to fulfill his or her responsibilities to the Company.
The Board of Directors and the
Nominating and Corporate Governance Committee require that each Director be a
recognized person of high integrity with a proven record of success in his or
her field. Each Director must demonstrate innovative thinking, familiarity with
and respect for corporate governance requirements and practices, an appreciation
of multiple cultures and a commitment to sustainability and to dealing
responsibly with social issues. In addition to the qualifications required of
all Directors, the Board assesses intangible qualities including the
individuals ability to ask difficult questions and, simultaneously, to work
collegially.
The Board has identified
particular qualifications, attributes, skills and experience that are important
to be represented on the Board as a whole, in light of the Companys current
needs and business priorities. The Companys services are performed in various
countries and in significant areas of future growth located outside of the
United States. Accordingly, the Board believes that international experience or
specific knowledge of key geographic growth areas and diversity of professional
experiences should be represented on the Board. In addition, the Companys
business is multifaceted and involves complex financial transactions. Therefore,
the Board believes that the Board should include some Directors with a high
level of financial literacy and some Directors who possess relevant business
experience as a Chief Executive Officer or President. Our business involves
complex technologies in a highly specialized industry. Therefore, the Board
believes that extensive knowledge of the Companys business and industry should
be represented on the Board.
The Board of Directors and the
Nominating and Corporate Governance Committee do not have a specific diversity
policy, but consider diversity of race, ethnicity, gender, age, cultural
background and professional experiences in evaluating candidates for Board
membership. Diversity is important because a variety of points of view
contribute to a more effective decision-making process.
Biographical Information and Summary of Qualifications of
Nominees for Director
Yunfei Li
has
served as the chairman of our board, our president and chief executive officer
since March 1, 2016. Mr. Li has more than 20 years management experience in
industries of real estate development, battery and new energy. Since May 2014,
he has been Vice President of the Companys subsidiary, Dalian BAK Power Battery
Co., Ltd in charge of the companys construction of manufacturing facilities,
government relationship and development of new customers. From May 2010 to May
2014, Mr. Li held management positions of various new energy development and real estate development companies in
China. Prior to that, he was Director of Construction Department, Director of
Comprehensive Management Department and Assistant to President of Shenzhen BAK
Battery Co., Ltd., a former subsidiary of the Company, from March 2003 to May
2010. Mr. Li holds a Bachelors degree in Civil Engineering from Liao Yuan
Vocational Technical College.
10
Director Qualifications
:
Mr. Li has extensive senior management experience in the industry in which we
operate and has held management positions of various new energy development and
real estate development companies in China.
Jianjun He
has
served as our director since November 4, 2013. Mr. He has more than 16-year
experience in accounting and finance and is an associate member of the Chinese
Institute of Certificate Public Accounts. Mr. He has been the Managing Director
of Jilin Cybernaut Lvke Investment and Management Co., Ltd., an investment
consulting firm in China, since January 1, 2013. From June 30, 2009 to December
31, 2012, Mr. He served as the Chief Financial Officer of THT Heat Transfer
Technology, Inc. (Nasdaq: THTI) (THT Heat), a provider of heat exchangers and
heat exchange solutions in China. Mr. He was the Chief Financial Officer of
Siping City Juyuan Hanyang Plate Heat Exchanger Co. Ltd, a wholly owned
subsidiary of THT Heat from 2007 to December 2012. From 1999 to 2007, Mr. He
worked as senior financial officer in Jilin Grain Group, a state-owned
enterprise engaged in the grain processing and trading business. Mr. He
graduated from Changchun Taxation College in 1995 with a Bachelors degree in
Auditing and obtained a Masters degree from Jilin University in 2005.
Director Qualifications
:
Mr. He has a rich knowledge in accounting and corporate finance. He also has
more than three years experience acting as CFO of a Nasdaq listed company.
J. Simon Xue
has
served as our director since February 1, 2016. Dr. Xue has approximately 40
years experience in nuclear chemistry, solid state chemistry, superconductivity
and materials for Lithium ion batteries. Within his research career, he has
spent 21 years in the research and development of Lithium ion battery. Dr. Xue
is currently the Senior Director of National Institute for Low-&-Clean
Energy in China and a member of National Thousand Talent Plan and a member of
Expert Committee for Chinese Industrial Association of Power Sources. Prior to
that, Dr. Xue was a director of Altair Nanotechnologies Inc., a Delaware
company, between August 2011 and April 2012. From 2010 to 2011, he served as the
chief executive officer of Yintong Energy Co., Ltd., a subsidiary of Canon
Investment Holdings Ltd. Dr. Xue has also held positions at Ultralife, Duracell,
B&K Electronics Co., Ltd., Valence Energy-Tech (Suzhou) Co., A123 Systems
Inc. and International Battery Inc. He enjoys an extensive reputation in the
whole product chain of lithium ion battery in China, including materials,
equipment, cell manufacturing and testing. He has authored or co-authored over
50 scientific articles, 12 patents relevant to battery chemistry and materials
and participated, presented and hosted more than 30 battery or material related
international conferences. Dr. Xue completed his Ph.D. program in Solid State
Chemistry in McMaster University in 1992.
Director Qualifications
:
Dr. Xue, Chair of the Compensation Committee, has approximately 40 years
experience in nuclear chemistry, solid state chemistry, superconductivity and
materials for Lithium ion batteries. Within his research career, he has spent 21
years in the research and development of Lithium ion battery.
Martha C. Agee
has
served as our director since November 15, 2012. Since 1997, Ms. Agee has been a
senior lecturer of business law at Hankamer School of Business of Baylor
University where she teaches courses in the Legal Environment of Business,
International Business Law, and Healthcare Law & Ethics for graduate and
undergraduate students. Prior to that, Ms. Agee practiced law from 1988 to 1996.
Ms. Agee obtained her bachelors degree in Accounting in 1976 and Juris
Doctorate degree in 1988 from Baylor University.
Director Qualifications
:
Ms. Agee, Chair of the Audit Committee, was previously Certified Public
Accountant, worked as Chief Accountant for a political sub-division for five and
a half years and worked as Supervisor of Accounting for a large retail chain
with the responsibilities included hiring, training, and supervision of
accounting staff; preparation and analysis of 17 monthly financial statements
and quarterly consolidated financial statements; budgeting, and internal
auditing.
11
Guosheng Wang
has
served as our director since August 1, 2014. Since June 2014, Mr. Wang has been
in charge of the construction of facilities of the Companys subsidiary, Dalian
BAK Power Battery Co., Ltd (Dalian BAK) and the relocation of assets and
equipment of BAK International (Tianjin) Limited (BAK Tianjin) to Dalian BAK.
Prior to that, Mr. Wang served as vice president of operations of BAK Tianjin
since May 2013, where he was managing the Quality Department, Purchase
Department, Equipment Department and HR Department. From May 2010 to May 2013,
Mr. Wang served as manager of Equipment Department of BAK Tianjin. From March
2008 to May 2010, he served as Director of No. 1 Manufacture Department of BAK
Tianjin. Mr. Wang began his career working as an engineer at Harbin Railway
Transportation Equipment Co., Ltd in 1994. Mr. Wang obtained his bachelors
degree in mechanical manufacturing engineering and equipment from Lanzhou
Jiaotong University in July 1994.
Director Qualifications
:
Having served with the Company since 2003, Mr. Wang brings to the Board of
Directors extensive experience in all aspects of our business and industry and
strong management and technical skills.
Each director holds office until
the earlier of his or her death, resignation, removal from office by the
stockholders, or his or her respective successor is duly elected and qualified.
There are no arrangements or understandings between any of our nominees or
directors and any other person pursuant to which any of our nominees or
directors have been selected for their respective positions. No nominee or
director is related to any executive officer or any other nominee or
director.
No director of the Company is a
party adverse to the Company or any of its subsidiaries or has a material
interest adverse to the Company or any of its subsidiaries. There are no family
relationships among our directors or officers.
Other than as described above, no
director has held any directorship during the past five years with any other
public company.
For information as to the shares
of the Common Stock held by each nominee, see Securities Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters Securities
Ownership of Certain Beneficial Owners and Management.
Involvement in Certain
Legal Proceedings
None of our directors or
executive officers has, during the past ten years:
|
|
been convicted in a criminal proceeding or been subject
to a pending criminal proceeding (excluding traffic violations and other
minor offences);
|
|
|
had any bankruptcy petition filed by or against the
business or property of the person, or of any partnership, corporation or
business association of which he was a general partner or executive
officer, either at the time of the bankruptcy filing or within two years
prior to that time;
|
|
|
been subject to any order, judgment, or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction or federal or state authority, permanently or temporarily
enjoining, barring, suspending or otherwise limiting, his involvement in
any type of business, securities, futures, commodities, investment,
banking, savings and loan, or insurance activities, or to be associated
with persons engaged in any such activity;
|
|
|
been found by a court of competent jurisdiction in a
civil action or by the Securities and Exchange Commission or the Commodity
Futures Trading Commission to have violated a federal or state securities
or commodities law, and the judgment has not been reversed, suspended, or
vacated;
|
|
|
been the subject of, or a party to, any federal or state
judicial or administrative order, judgment, decree, or finding, not
subsequently reversed, suspended or vacated (not including any settlement
of a civil proceeding among private litigants), relating to an alleged
violation of any federal or state securities or commodities law or
regulation, any law or regulation respecting financial institutions or
insurance companies including, but not limited to, a temporary or
permanent injunction, order of disgorgement or restitution, civil money
penalty or temporary or permanent cease-and-desist order,
or removal or prohibition order, or any law or regulation
prohibiting mail or wire fraud or fraud in connection with any business entity;
or
|
12
|
|
been the subject of, or a party to, any sanction or
order, not subsequently reversed, suspended or vacated, of any self-
regulatory organization (as defined in Section 3(a)(26) of the Exchange
Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section
1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any
equivalent exchange, association, entity or organization that has
disciplinary authority over its members or persons associated with a
member.
|
Director Independence
Our Board of Directors has
determined that each of our non-employee directors, Mr. Xue, Ms. Agee and Mr.
He, is an independent director as defined by the applicable rules of the SEC
and NASDAQ. Each of our non-employee directors serves on the Boards committees,
and therefore all of the members of our board committees are independent as
defined under the NASDAQ listing standards and by the SEC. There were and are no
transactions, relationships or arrangements not otherwise disclosed in this
Proxy Statement that were considered by the Board of Directors under the
applicable independence definitions in determining that each of these directors
is independent.
Governance Structure
Currently, our Chief Executive
Officer is also our Chairman. The Board of Directors believes that, at this
time, having a combined Chief Executive Officer and Chairman is the appropriate
leadership structure for the Company. In making this determination, the Board of
Directors considered, among other matters, Mr. Yunfei Lis experience and tenure
of having been officers of the Company since 2003, and believed that Mr. Li is
highly qualified to act as both Chairman and Chief Executive Officer due to his
experience, knowledge, and personality. Among the benefits of a combined Chief
Executive Officer/Chairman considered by the Board of Directors is that such
structure promotes clearer leadership and direction for our Company and allows
for a single, focused chain of command to execute our strategic initiatives and
business plans.
The Board of Directors Role in Risk Oversight
The Board of Directors oversees
that the assets of the Company are properly safeguarded, that the appropriate
financial and other controls are maintained, and that the Companys business is
conducted wisely and in compliance with applicable laws and regulations and
proper governance. Included in these responsibilities is the Board of Directors
oversight of the various risks facing the Company. In this regard, the Board of
Directors seeks to understand and oversee critical business risks. The Board of
Directors does not view risk in isolation. Risks are considered in virtually
every business decision and as part of the Companys business strategy. The
Board recognizes that it is neither possible nor prudent to eliminate all risk.
Indeed, purposeful and appropriate risk-taking is essential for the Company to
be competitive on a global basis and to achieve its objectives.
While the Board oversees risk
management, Company management is charged with managing risk. The Company has
robust internal processes and a strong internal control environment to identify
and manage risks and to communicate with the Board of Directors. The Board of
Directors and the Audit Committee monitor and evaluate the effectiveness of the
internal controls and the risk management program at least annually. Management
communicates routinely with the Board of Directors, Board Committees and
individual Directors on the significant risks identified and how they are being
managed. Directors are free to, and indeed often do, communicate directly with
senior management.
The Board implements its risk
oversight function both as a whole and through Committees. Much of the work is
delegated to various Committees, which meet regularly and report back to the
full Board. All Committees play significant roles in carrying out the risk
oversight function. In particular:
|
|
The Audit Committee oversees risks related to the
Companys financial statements, the financial reporting process,
accounting and legal matters. The Audit Committee oversees the internal
audit function. The Audit Committee members meet separately with
representatives of the Companys independent auditing firm; and
|
13
|
|
The Compensation Committee evaluates the risks and
rewards associated with the Companys compensation philosophy and
programs. The Compensation Committee reviews and approves compensation
programs with features that mitigate risk without diminishing the
incentive nature of the compensation. Management discusses with the
Compensation Committee the procedures that have been put in place to
identify and mitigate potential risks in compensation.
|
|
|
The Nominating and Corporate Governance Committee
evaluates risk associated with management decisions and strategic
direction and reports concerns to the full Board. In addition, this
committee evaluates the performance of independent directors and makes
suggestions to the full Board concerning director qualifications and
number of independent directors. The committee also oversees the Companys
ethics programs, including the Code of Business Ethics and Conduct.
|
Required Vote
To be elected, each nominee for
director must receive at least a plurality of the votes cast at the Annual
Meeting (assuming a quorum is present) with respect to that nominees election.
Abstentions and broker non-votes will not be counted as a vote cast with
respect to a nominee.
Recommendation of the Board of Directors
The Board of Directors recommends
a vote FOR the election of the nominees set forth in Proposal 1.
COMMITTEES OF THE BOARD OF DIRECTORS
Committees and Meetings
Our Board of Directors currently
has three standing Committees which, pursuant to delegated authority, perform
various duties on behalf of and report to the Board: (i) Audit Committee, (ii)
Compensation Committee and (iii) Nominating and Corporate Governance Committee.
Each of the three standing Committees is comprised entirely of independent
directors as that term is defined under the NASDAQ listing standards applicable
to each of these committees. From time to time, the Board may establish other
committees.
During the fiscal year ended
September 30, 2016, the Board held a total of four meetings. Each director
attended 100% of the total number of meetings of the Board and 100% of the
meetings of all Committees on which he or she served. We do not have a policy
requiring Board members to attend the annual meeting of our stockholders. Two
members of the Board attended our 2016 annual meeting of stockholders.
Each of the Charters of our
Audit, Compensation and Nominating and Corporate Governance Committees contains
a definition for determining whether members of the respective Committee are
independent for purposes of that committee. Current copies of these Charters are
posted on our Internet website at www.cbak.com.cn.
Audit Committee
Our Audit Committee consists of
three members: Martha C. Agee, J. Simon Xue and Jianjun He. Pursuant to the
determination of our Board of Directors, Ms. Agee serves as the chair of the
Audit Committee and as our Audit Committee financial expert as that term is
defined by the applicable SEC rules. Each director who has served or is serving
on our Audit Committee was or is independent as that term is defined under the
NASDAQ listing rules for Audit Committee members at all times during their
service on such Committee.
The Audit Committee, which was
established in accordance with Section 3(a)(58)(A) of the Exchange Act, oversees
our accounting and financial reporting processes and the audits of the financial
statements of our company. During the fiscal year ended September 30, 2016, the
Audit Committee held four meetings, in compliance with its Charter. The Audit
Committee is responsible for, among other things:
14
|
|
the appointment, compensation, retention and oversight of
the work of the independent auditor;
|
|
|
reviewing and pre-approving all auditing services and
permissible non-audit services (including the fees and terms thereof) to
be performed by the independent auditor;
|
|
|
reviewing and approving all proposed related-party
transactions;
|
|
|
discussing the interim and annual financial statements
with management and our independent auditors;
|
|
|
reviewing and discussing with management and the
independent auditor (a) the adequacy and effectiveness of the Companys
internal controls, (b) the Companys internal audit procedures, and (c)
the adequacy and effectiveness of the Companys disclosure controls and
procedures, and management reports thereon;
|
|
|
reviewing reported violations of the Companys code of
conduct and business ethics; and
|
|
|
reviewing and discussing with management and the
independent auditor various topics and events that may have significant
financial impact on the Company or that are the subject of discussions
between management and the independent auditors.
|
Compensation Committee
Our Compensation Committee
consists of three members: Martha C. Agee, J. Simon Xue and Jianjun He, with Mr.
Xue serving as chair. Each director who has served or is serving on our
Compensation Committee was or is independent as that term is defined under the
NASDAQ listing rules at all times during their service on such Committee. The
Compensation Committee held one meeting meetings during the fiscal year ended
September 30, 2016.
The purpose of our Compensation
Committee is to discharge the responsibilities of the Companys Board of
Directors relating to compensation of the Companys executives, to produce an
annual report on executive compensation for inclusion in the Companys proxy
statement, if required, and to oversee and advise the Board on the adoption of
policies that govern the Companys compensation programs, including stock and
benefit plans. Our chief executive officer may not be present at any
Compensation Committee meeting during which his compensation is deliberated. The
Compensation Committee is responsible for, among other things:
|
|
reviewing and approving the compensation structure for
corporate officers at the level of corporate vice president and above;
|
|
|
overseeing an evaluation of the performance of the
Companys executive officers and approve the annual compensation,
including salary, bonus, incentive and equity compensation, for the
executive officers;
|
|
|
reviewing and approving chief executive officer goals and
objectives, evaluate chief executive officer performance in light of these
corporate objectives, and set chief executive officer compensation
consistent with Company philosophy;
|
|
|
making recommendations to the Board regarding the
compensation of board members;
|
|
|
reviewing and making recommendations concerning long-term
incentive compensation plans, including the use of equity-based plans.
Except as otherwise delegated by the Board of Directors, the Compensation
Committee will act on behalf of the Board of Directors as the Committee
established to administer equity-based and employee benefit plans, and as
such will discharge any responsibilities imposed on the Compensation
Committee under those plans, including making and authorizing grants, in
accordance with the terms of those plans.
|
Nominating and Corporate Governance Committee
Our Nominating and Corporate
Governance Committee consists of three members: Martha C. Agee, J. Simon Xue and
Jianjun He, with Mr. He serving as chair. Each director who has served or is
serving on our Nominating and Corporate Governance Committee was or is
independent as that term is defined under the NASDAQ listing standards at all
times during their service on such Committee. The Nominating and Corporate
Governance Committee held two meetings during the fiscal year ended September
30, 2016, in compliance with its Charter.
The purpose of the Nominating and
Corporate Governance Committee is to determine the slate of director nominees
for election to the Companys Board of Directors, to identify and recommend
candidates to fill vacancies occurring between annual shareholder meetings, and to review
the Companys policies and programs that relate to matters of corporate
responsibility, including public issues of significance to the Company and its
members. The Nominating and Corporate Governance Committee is responsible for,
among other things:
15
|
|
annually presenting to the Board a list of individuals
recommended for nomination for election to the Board at the annual meeting
of stockholders, and for appointment to the committees of the Board;
|
|
|
|
|
|
annually reviewing the composition of each committee and
present recommendations for committee memberships to the Board as needed;
and
|
|
|
|
|
|
annually evaluating and reporting to the Board of
Directors on the performance and effectiveness of the Board of Directors
to facilitate the directors fulfillment of their responsibilities in a
manner that serves the interests of the Companys shareholders.
|
Code of Business Ethics and Conduct
We have adopted a Code of
Business Ethics and Conduct relating to the conduct of our business by our
employees, officers and directors. We intend to maintain the highest standards
of ethical business practices and compliance with all laws and regulations
applicable to our business, including those relating to doing business outside
the United States. During the fiscal year ended September 30, 2016, there were
no amendments to or waivers of our Code of Business Ethics and Conduct. If we
effect an amendment to, or waiver from, a provision of our Code of Business
Ethics and Conduct, we intend to satisfy our disclosure requirements by posting
a description of such amendment or waiver on our Internet website at
www.bak.com.cn or via a current report on Form 8-K. A current copy of our Code
of Business Ethics and Conduct is posted on our Internet website at
www.cbak.com.cn.
16
REPORT OF THE AUDIT COMMITTEE
FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2016
The Audit Committee of the Board
is comprised of three non-employee Directors, each of whom has been determined
by the Board to be independent meeting the independence requirements of the
Listing Rules of NASDAQ and the SEC. The Board has determined, based upon an
interview of Martha Agee and a review of Ms. Agees responses to a questionnaire
designed to elicit information regarding her experience in accounting and
financial matters, that Ms. Agee shall be designated as an Audit Committee
financial expert within the meaning of Item 401(e) of SEC Regulation S-K, as
Ms. Agee has past employment experience in finance or accounting, requisite
professional certification in accounting, or any other comparable experience or
background which results in her financial sophistication. The Audit Committee
assists the Boards oversight of the integrity of the Companys financial
reports, compliance with legal and regulatory requirements, the qualifications
and independence of the Companys independent registered public accounting firm,
the audit process, and internal controls. The Audit Committee operates pursuant
to a written charter adopted by the Board. The Audit Committee is responsible
for overseeing the corporate accounting and financing reporting practices,
recommending the selection of the Companys registered public accounting firm,
reviewing the extent of non-audit services to be performed by the auditors, and
reviewing the disclosures made in the Companys periodic financial reports. The
Audit Committee also reviews and recommends to the Board that the audited
financial statements be included in the Companys Annual Report on Form 10-K.
Following the end of the fiscal
year ended September 30, 2016, the Audit Committee reviewed and discussed the
audited financial statements for the fiscal year ended September 30, 2016 with
Company management. The Audit Committee has also discussed with the independent
auditors the matters required to be discussed by PCAOB Auditing Standard No.
1301, Communications with Audit Committees as amended and adopted by PCAOB.
PCAOB Auditing Standard No. 1301 requires an auditor to discuss with the Audit
Committee, among other things, the auditors judgments about the quality, not
just the acceptability, of the accounting principles applied in the Companys
financial reporting. In addition, the Audit Committee has received the written
disclosures and the letter from the independent registered public accounting
firm required by PCAOB Rule 3526, Communication with Audit Committees
Concerning Independence, and has discussed with the independent registered
public accounting firm its independence from the Company.
Based on the review and
discussions referred to above, the Audit Committee had recommended to the Board
that the audited financial statements be included in the Companys Annual Report
on Form 10-K for the fiscal year ended September 30, 2016 for filing with the
SEC.
/s/ The Audit
Committee
|
|
Martha C. Agee, Chair
|
|
J. Simon Xue
|
|
Jianjun He
|
|
17
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table sets forth
information concerning all cash and non-cash compensation awarded to, earned by
or paid to the named persons (Name Executive Officers) for services rendered
in all capacities during the noted periods. No other executive officer received
total annual salary and bonus compensation in excess of $100,000.
|
|
|
|
|
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Awards
|
|
|
Option
|
|
|
|
|
Name and Principal Position
|
|
Year
|
|
|
Salary
|
|
|
($)
(3)
|
|
|
Awards
|
|
|
Total ($)
|
|
|
|
|
|
|
($)
(1)
|
|
|
|
|
|
($)
|
|
|
|
|
Yunfei Li, President, Chief
Executive Officer
(2)
|
|
2016
|
|
|
92,044
|
|
|
24,300
|
|
|
|
|
|
116,344
|
|
|
|
2015
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Wenwu Wang, Interim Chief
Financial Officer
|
|
2016
|
|
|
48,531
|
|
|
54,000
|
|
|
|
|
|
102,531
|
|
|
|
2015
|
|
|
49,300
|
|
|
27,000
|
|
|
-
|
|
|
76,300
|
|
Xiangqian Li, former
President and Chief Executive Officer
(2)
|
|
2016
|
|
|
9,185
|
|
|
|
|
|
|
|
|
9,185
|
|
|
|
2015
|
|
|
21,214
|
|
|
-
|
|
|
-
|
|
|
21,214
|
|
(1) The amounts reported in this table have been converted from
RMB to U.S. dollars based on the average conversion rate between the U.S. dollar
and RMB for the applicable fiscal year, or $1.00 to RMB 6.5325 (fiscal year 2016
exchange rate), $1.00 to RMB6.2224 (fiscal year 2015 exchange rate).
(2) Mr. Yunfei Li became our President and Chief Executive
Officer on March 1, 2016 upon the resignation of Mr. Xiangqian Li.
(3) The stock awards consisted of restrict shares granted on
June 30, 2015, which are vested and exercisable in twelve equal quarterly
installment with the first vesting date of June 30, 2015 and with a fair value
of $3.24.
Summary of Employment Agreements
The base salary shown in the
Summary Compensation Table is described in each named executive officers
respective employment agreement. The material terms of those employment
agreements are summarized below.
We entered into employment
agreements with three-year initial terms with our named executive officers with
standard employment agreements. We entered into the employment agreements with
Mr. Yunfei Li and Mr. Wenwu Wang on March 1, 2016 and September 30, 2014,
respectively. Each of our standard employment agreements is automatically
extended by a year at the expiration of the initial term and at the expiration
of every one-year extension, until terminated in accordance with the termination
provisions of the agreements, which are described below.
Our standard employment agreement
permits us to terminate the executives employment for cause, at any time,
without notice or remuneration, for certain acts of the executive, including but
not limited to a conviction or plea of guilty to a felony, negligence or
dishonesty to our detriment and failure to perform agreed duties after a
reasonable opportunity to cure the failure. An executive may terminate his
employment upon one months written notice if there is a material reduction in
his authority, duties and responsibilities or if there is a material reduction
in his annual salary before the next annual salary review. Furthermore, we may
terminate the executives employment at any time without cause by giving one
months advance written notice to the executive officer. If we terminate the
executives employment without cause, the executive will be entitled to a
termination payment of up to three months of his or her then base salary,
depending on the length of such executives employment with us. Specifically,
the executive will receive salary continuation for: (i) one month following a
termination effective prior to the first anniversary of the effective date of
the employment agreement; (ii) two months following a termination effective
prior to the second anniversary of the effective date; and (iii) three months
following a termination effective prior to or any time after the third
anniversary of the effective date. The employment agreements provide that the
executive will not participate in any severance plan, policy, or program of the
Company.
18
Our standard employment agreement
contains customary non-competition, confidentiality, and non-disclosure
covenants. Each executive officer has agreed to hold, both during and after the
employment agreement expires or is earlier terminated, in strict confidence and
not to use, except as required in the performance of his duties in connection
with the employment, any confidential information, technical data, trade secrets
and know-how of our company or the confidential information of any third party,
including our affiliated entities and our subsidiaries, received by us. The
executive officers have also agreed to disclose in confidence to us all
inventions, designs and trade secrets which they conceive, develop or reduce to
practice and to assign all right, title and interest in them to us. In addition,
each executive officer has agreed to be bound by non-competition restrictions
set forth in his or her employment agreement. Specifically, each executive
officer has agreed not to, while employed by us and for a period of one year
following the termination or expiration of the employment agreement,
|
|
approach our clients, customers or contacts or other
persons or entities, and not to interfere with the business relationship
between us and such persons and/or entities;
|
|
|
|
|
|
assume employment with or provide services as a director
for any of our competitors, or engage in any business which is in direct
or indirect competition with our business; or
|
|
|
|
|
|
solicit the services of any of our employees.
|
Outstanding Equity Awards at Fiscal Year-End 2016
The following table sets forth the equity awards outstanding at
September 30, 2016 for each of our named executive officers.
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
AWARDS AT
|
|
|
|
|
|
|
|
|
|
FISCAL
|
|
|
|
|
|
|
|
|
|
YEAR-END
|
|
|
|
|
|
|
|
|
|
|
|
|
Option
|
|
|
|
Stock
|
|
|
|
|
|
Awards
|
|
|
|
Awards
|
|
|
Name
|
Number of
|
Number of
|
Equity
|
Option
|
Option
|
Number
|
Market
|
Equity
|
Equity
|
|
securities
|
securities
|
incentive
|
exercise
|
expiration
|
of
|
value
|
incentive
|
incentive
|
|
underlying
|
underlying
|
plan awards:
|
price
|
date
|
shares
|
of
|
plan
|
plan
|
|
unexercised
|
unexercised
|
Number of
|
($)
|
|
or units
|
shares
|
awards:
|
awards:
|
|
options (#)
|
options (#)
|
securities
|
|
|
of stock
|
or units
|
Number
|
Market or
|
|
exercisable
|
unexercisable
|
underlying
|
|
|
that
|
of
|
of
|
payout
|
|
|
|
unexercised
|
|
|
have
|
stock
|
unearned
|
value of
|
|
|
|
unearned
|
|
|
not
|
that
|
shares,
|
unearned
|
|
|
|
options (#)
|
|
|
vested
|
have
|
units or
|
shares,
|
|
|
|
|
|
|
(#)
|
not
|
other
|
units or
|
|
|
|
|
|
|
|
vested
|
rights
|
other
|
|
|
|
|
|
|
|
(#)
|
that have
|
rights that
|
|
|
|
|
|
|
|
|
not
|
have not
|
|
|
|
|
|
|
|
|
vested
|
vested ($)
|
|
|
|
|
|
|
|
|
(#)
|
|
Yunfei Li
|
|
|
|
|
|
-
|
-
|
165,000*
|
371,250
|
Wenwu Wang,
|
|
|
|
|
|
-
|
-
|
45,000
#
|
101,250
|
Interim Chief
|
|
|
|
|
|
|
|
|
|
Financial Officer
|
|
|
|
|
|
|
|
|
|
* On June 30, 2015, Mr. Li was granted 30,000 restricted shares
of the Companys common stock, par value $0.001, under the 2015 Equity Incentive
Plan of the Company (the 2015 Plan). The restricted shares vest over a three
year period in 12 equal quarterly installments with the first vesting date on
June 30, 2015. On April 19, 2016, pursuant to the 2015 Plan, the Company granted
Mr. Li an aggregate of 150,000 restricted shares of the Companys common stock.
The restricted shares vest semi-annually in 6 equal installments over a three
year period with the first vesting on December 31, 2016.
#
On June 30, 2015, Mr. Wang was granted 50,000
restricted shares of the Companys common stock, par value $0.001, under the
2015 Plan. The restricted shares vest over a three year period in 12 equal
quarterly installments with the first vesting date on June 30, 2015. On April
19, 2016, pursuant to the 2015 Plan, the Company granted Mr. Wang an aggregate
of 20,000 restricted shares of the Companys common stock. The restricted shares
vest semi-annually in 6 equal installments over a three year period with the
first vesting on December 31, 2016.
19
Compensation of Directors
Under our Compensation Plan for
Non-Employee Directors, or the Directors Plan, each eligible non-employee
director of the Company may receive an annual retainer fee. Pursuant to the
Directors Plan, the annual retainer fee under the Directors Plan is subject to
adjustments determined by our Board from time to time. Each independent director
is also eligible to be granted 5,000 restricted shares of our common stock for
serving as a director.
In December 2010, our Board of
Directors unanimously approved a change in the annual retainer fee for
independent directors in accordance with the Directors Plan. Effective January
1, 2011, our independent directors will be paid an annual retainer fee of
$45,000. As was previously our policy, the chair of the Audit Committee will
continue to receive an additional $5,000 in recognition of the added
responsibility of this position. In connection with this change, the Board
unanimously determined that the independent directors will no longer receive an
annual issuance of restricted shares under the Directors Plan. Each of the
independent directors has waived all rights to such annual issuances, including
with respect to 2,500 of the shares that were to be issued to each of the
independent directors during calendar year 2011 in connection with their grants
on July 1, 2010.
Effective October 1, 2012, each
of our independent directors will be paid an annual retainer fee of $61,000. The
chair of the Audit Committee will receive an additional $9,000 in recognition of
the added responsibility of this position.
In June 2013, due to the
financial situation of the Company, each of the independent directors agreed to
reduce their annual retainer fee to $20,000, effective from the quarter ended
June 30, 2013.
On June 30, 2015, each of our
independent directors was granted 30,000 restricted shares of the Companys
common stock, par value $0.001, under the 2015 Plan. The restricted shares vest
over a three year period in 12 equal quarterly installments with the first
vesting date on June 30, 2015.
On April 19, 2016, pursuant to
the 2015 Plan, the Company granted Dr. Xue an aggregate of 30,000 restricted
shares of the Companys common stock. The restricted shares vest semi-annually
in 6 equal installments over a three year period with the first vesting on
December 31, 2016.
The following table sets forth
the total compensation earned by our non-employee directors during our fiscal
year ended September 30, 2016:
|
|
Fees Earned
|
|
|
|
|
|
|
|
|
|
or
|
|
|
|
|
|
|
|
Name
|
|
Paid in
|
|
|
Stock
|
|
|
Total ($)
|
|
|
|
Cash ($)
|
|
|
Awards ($)
|
|
|
|
|
J. Simon Xue
|
|
13,333
|
|
|
-
|
|
|
13,333
|
|
Martha C. Agee
|
|
20,000
|
|
|
32,400
|
|
|
52,400
|
|
Jianjun He
|
|
20,000
|
|
|
32,400
|
|
|
52,400
|
|
We do not maintain a medical,
dental or retirement benefits plan for the directors.
Except as disclosed in this
annual report, we have not compensated, and will not compensate, our
non-independent directors, Mr. Yunfei Li and Mr. Guosheng Wang, for serving as
our directors, although they are entitled to reimbursements for reasonable
expenses incurred in connection with attending our board meetings.
20
The directors may determine
remuneration to be paid to the directors with interested members of the Board
refraining from voting. The Compensation Committee will assist the directors in
reviewing and approving the compensation structure for the directors.
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Under U.S. securities laws,
directors, certain executive officers and persons beneficially owning more than
10% of our Common Stock must report their initial ownership of the Common Stock,
and any changes in that ownership, to the SEC. The SEC has designated specific
due dates for these reports. Based solely on our review of copies of such
reports filed with the SEC and written representations of our directors and
executive offers, we believe that all persons subject to reporting filed the
required reports on time in fiscal year ended September 30, 2016.
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Transactions with Related Persons
We obtained a three-year banking
facilities of $19.5 million from Bank of Dandong. The banking facilities were
guaranteed by Mr. Yunfei Li (Mr. Li), our CEO, and Ms. Qinghui Yuan, Mr. Lis
wife, Mr. Xianqian Li, our former CEO, Ms. Xiaoqiu Yu, the wife of our former
CEO, and Shenzhen BAK, our former subsidiary. We also obtained a one-year
banking facilities of $7.5 million from Bank of Dalian. The banking facilities
were guaranteed by Mr. Li, Ms. Qinghui Yuan, and Shenzhen BAK. Mr. Yunfei Li did
not receive and is not entitled to receive any consideration for the
above-referenced guarantees. We are not independently obligated to indemnify any
of those guarantors for any amounts paid by them pursuant to any guarantee.
After the disposal of BAK
International and prior to the completion of construction of the new
manufacturing site in Dalian, we generated our revenues from sale of batteries
via subcontracting the production to BAK Tianjin, a former subsidiary. Also,
from time to time, in order to meet the needs of our customers, we purchased
products from these former subsidiaries that we did not produce.
For the years ended September 30,
2015 and 2016, we purchased inventories of (i) $10.5 million and $2.7 million
from BAK Tianjin, respectively; and (ii) nil and $5.6 million from Shenzhen BAK,
respectively.
For the years ended September 30,
2015 and 2016, we purchased inventories of $395,593 and nil, respectively, from
Tianjin BAK New Energy Research Institute CO., Ltd. (Tianjin New Energy). Mr.
Xiangqian Li, our former CEO, is director of Tianjin New Energy.
During the years ended September
30, 2015 and 2016, the Company purchased machinery and equipment from BAK
Tianjin totaled $6.8 million and nil, respectively.
For the years ended September 30,
2015 and 2016, we generated revenue of
|
|
$1,377,004 and $836,425 from sale of raw materials to
Shenzhen BAK, respectively;
|
|
|
|
|
|
$1,470,579 and $636,331 from BAK Tianjin, respectively;
|
|
|
|
|
|
nil and $102,322 from Shenzhen BAK, respectively;
|
|
|
|
|
|
$17,063 and $576, respectively from Zhengzhou BAK Battery
Co., Ltd. Mr. Xiangqian Li, our former CEO, is director of this company;
and
|
|
|
|
|
|
$298,983 and nil, respectively from Tianjin New Energy.
|
Promoters and Certain Control Persons
We did not have any promoters at
any time during the past five fiscal years.
21
PROPOSAL 2. RATIFICATION OF SELECTION OF INDEPENDENT
AUDITORS
Effective on September 29, 2016,
Crowe Horwath (HK) CPA Limited (Crowe Horwath) resigned as the Companys
independent registered public accounting firm. On September 29, 2016, the
Companys Audit Committee appointed Centurion ZD CPA Limited (formerly known as
DCAW (CPA) Limited) (Centurion) as the Companys independent registered public
accounting firm, effective immediately.
The Audit Committee has selected
Centurion to serve as the Companys independent auditors for the fiscal year
ending December 31, 2017. We are asking our stockholders to ratify our companys
selection of Centurion as our independent registered public accountants at the
Annual Meeting. Although ratification is not required by our amended and
restated bylaws or otherwise, the Board of Directors is submitting the selection
of Centurion to our stockholders for ratification as a matter of good corporate
governance practice. If the selection is not ratified, the Audit Committee will
consider whether it is appropriate to select another registered public
accounting firm. Even if the selection is ratified, the Audit Committee in its
discretion may select a different registered public accounting firm at any time
during the year if it determines that such a change would be in the best
interests of our company and our stockholders.
One or more representatives of
Centurion are expected to be present at the Annual Meeting. They will have an
opportunity to make a statement and will be available to respond to appropriate
questions.
Independent Registered Public Accounting Firms Fees and
Services
Audit Fees
Crowe Horwath has billed us
$228,000 and $218,314 in the aggregate for the fiscal years ended September 30,
2015 and 2016, respectively, for professional services rendered for the audit of
our annual financial statements, including reviews of the interim financial
statements included in our quarterly reports on Form 10-Q and assistance with
the Securities Act filings.
Centurion has billed us $50,000
for the fiscal year ended September 30, 2016 for professional services rendered
for the audit of our annual financial statements.
Audit-Related
Fee
s
We did not engage our principal
accountants to provide assurance or related services during the last two fiscal
years.
Tax Fees
We did not engage our principal
accountants to provide tax compliance, tax advice or tax planning services
during the last two fiscal years.
All Other Fees
We did not engage our principal
accountants to render services to us during the last two fiscal years, other
than as reported above.
Pre-Approval Policies and Procedures
All auditing services and
permitted non-audit services (including the fees and terms thereof) to be
performed for the Company by our independent auditor must be approved by the
Audit Committee in advance, except non-audit services (other than review and
attestation services) if such services fall within exceptions established by the
SEC. The Audit Committee will pre-approve any permissible non-audit services to
be provided by the Companys independent auditors on behalf of the Company that
do not fall within any exception to the pre-approval requirements established by
the SEC. The Audit Committee may delegate to one or more members the authority to pre-approve permissible non-audit services, but
any such delegate or delegates must present their pre-approval decisions to the
Audit Committee at its next meeting. All of our accountants services described
above were pre-approved by the Audit Committee or by one or more members under
the delegate authority described above.
22
Required Vote
Ratification of Centurion as our
Companys independent registered public accountant for the fiscal year ending
December 31, 2017 requires the affirmative vote of a majority of the shares of
the Common Stock present in person or represented by proxy that are entitled to
vote that actually voted (assuming a quorum is present). Abstentions will have
the same effect as a vote against the proposal, and broker non-votes may be
voted at the discretion of the broker holding the shares.
Recommendation of the Board
The Board of Directors recommends
a vote FOR ratification of the selection of Centurion as the Companys
independent registered public accounting firm for the fiscal year ending
December 31, 2017.
23
PROPOSAL 3 ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION
The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010 enables our stockholders to vote to approve,
on an advisory (non-binding) basis, the compensation of our Named Executive
Officers as disclosed in this Proxy Statement pursuant to Item 402 of Regulation
S-K.
Our executive compensation
programs are designed to attract, motivate, and retain our named executive
officers, who are critical to our success. Under these programs, our named
executive officers are rewarded for the achievement of specific annual,
long-term and strategic goals, business unit goals, corporate goals, and the
realization of increased stockholder value.
Our Compensation Committee
continually reviews the compensation programs for our named executive officers
to ensure they achieve the desired goals of aligning our executive compensation
structure with our stockholders interests and current market practices. We are
asking our stockholders to indicate their support for our named executive
officer compensation as described in this Proxy Statement. This proposal,
commonly known as a say-on-pay proposal, gives our stockholders the
opportunity to express their views on our named executive officers
compensation. This vote is not intended to address any specific item of
compensation, but rather the overall compensation of our named executive
officers and the philosophy, policies and practices described in this Proxy
Statement.
The say-on-pay vote is advisory,
and therefore not binding on the Company, the Compensation Committee or our
Board. Our Board and our Compensation Committee value the opinions of our
stockholders and to the extent there is any significant vote against the
approval of the named executive officer compensation as disclosed in this Proxy
Statement, they will consider our stockholders concerns and the Compensation
Committee will evaluate whether any actions are necessary to address those
concerns.
Vote Required
Approval of Proposal 3 requires
the affirmative vote of a majority of the shares of the Common Stock present in
person or represented by proxy and entitled to vote on the matter (assuming a
quorum is present). Abstentions will have the same effect as a vote against the
proposal, and broker non-votes may not be voted at the discretion of the
broker holding the shares.
Recommendation of the Board
The Board of Directors recommends
a vote FOR the approval of the compensation of our Named Executive Officers as
disclosed in this Proxy Statement in accordance with Securities and Exchange
Commission rules.
24
PROPOSAL 4 - ADVISORY VOTE REGARDING THE FREQUENCY OF THE
VOTING WITH
RESPECT TO THE COMPENSATION OF OUR NAMED EXECUTIVE
OFFICERS
In addition to Proposal 3 above,
our stockholders are being provided the opportunity to cast vote to approve, on
an advisory basis, the frequency of the voting with respect to the compensation
of our Named Executive Officers. The advisory vote on executive compensation
described in Proposal 3 above is referred to as a say-on-pay vote.
This Proposal 4 affords
stockholders the opportunity to cast an advisory vote on how often we should
include a say-on- pay vote in our proxy materials for future annual stockholder
meetings (or special stockholder meeting for which we must include executive
compensation information in the proxy statement). Under this Proposal 4,
stockholders may vote to have the say-on-pay vote every year, every two years or
every three years.
Our Board of Directors has
determined that an advisory vote on executive compensation that occurs once
every three years is the most appropriate alternative for the Company and
therefore our Board of Directors recommends that you vote for a three-year
interval for the advisory vote on executive compensation. In determining its
recommendation, the Board of Directors considered how an advisory vote once
every three years will provide our stockholders with sufficient time to evaluate
the effectiveness of our overall compensation philosophy, policies and practices
in the context of our long-term business results for the corresponding period,
while avoiding over-emphasis on short-term variations in compensation and
business results. An advisory vote occurring once every three years will also
permit our stockholders to observe and evaluate the impact of any changes to our
executive compensation policies and practices which have occurred since the last
advisory vote on executive compensation, including changes made in response to
the outcome of a prior advisory vote on executive compensation.
Required Vote
The choice of frequency that
receives the highest number of FOR votes will be considered a non-binding
advisory vote of the stockholders. Abstentions and broker non-votes will not
count as votes cast for or against any frequency choice, and will have no
direct effect on the outcome of this proposal. While this vote is advisory and
not binding on our Company, the Board of Directors expects to take into account
the outcome of the vote, along with other relevant factors, and when considering
future advisory votes on executive compensation.
Recommendation of the Board
The Board of Directors recommends
a vote for
EVERY THREE YEARS
as the frequency with which stockholders are
provided future advisory votes on the compensation of our Named Executive
Officers
.
25
OTHER MATTERS
Our Board of Directors is not
aware of any business to come before the Annual Meeting other than those matters
described above in this Proxy Statement. However, if any other matters should
properly come before the Annual Meeting, it is intended that proxies in the
accompanying form will be voted in accordance with the judgment of the person or
persons voting the proxies.
STOCKHOLDER COMMUNICATIONS
The Company has a process for
stockholders who wish to communicate with the Board of Directors. Stockholders
who wish to communicate with the Board of Directors may write to it at the
Companys address given above. These communications will be reviewed by one or
more employees of the Company designated by the Board of Directors, who will
determine whether they should be presented to the Board of Directors. The
purpose of this screening is to allow the Board of Directors to avoid having to
consider irrelevant or inappropriate communications.
STOCKHOLDER PROPOSALS FOR THE 2018 ANNUAL MEETING
If you wish to have a proposal
included in our proxy statement for next years annual meeting in accordance
with Rule 14a-8 under the Exchange Act, your proposal must be received by the
Secretary of the Company at BAK Industrial Park, Meigui Street, Huayuankou
Economic Zone, Dalian City, 116450, China, no later than December 31, 2017. A
proposal which is received after the applicable date or which otherwise fails to
meet the requirements for stockholder proposals established by the SEC will not
be included. The submission of a stockholder proposal does not guarantee that it
will be included in the proxy statement.
ANNUAL REPORT ON FORM 10-K
We will provide without charge
to each person solicited by this Proxy Statement, on the written request of such
person, a copy of our Annual Report on Form 10-K with any amendments, including
the financial statements and financial statement schedules, as filed with the
SEC for our most recent fiscal year. Such written requests should be directed to
the Secretary of the Company, at our address listed on the top of page one of
this Proxy Statement.
A copy of our Annual Report on Form 10-K, with any
amendments, is also made available on our website at
www.cbak.com.cn
after it is filed with the SEC.
|
By Order of the Board of Directors
|
July 31, 2017
|
|
|
|
|
/s/
Yunfei Li
|
|
Secretary
|
26
CBAK ENERGY TECHNOLOGY, INC.
ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON
SEPTEMBER 22, 2017
|
Annual Meeting Proxy Card
|
|
This Proxy is Solicited on Behalf of the Board of
Directors
The undersigned stockholder of
CBAK ENERGY TECHNOLOGY, INC., a Nevada corporation (the Company), acknowledges
receipt of the Notice of Annual Meeting of Stockholders and Proxy Statement,
dated July 31, 2017, and hereby constitutes and appoints Mr. Yunfei Li, the
Companys Chairman, President, Chief Executive Officer and Secretary, and Mr.
Wenwu Wang, the Companys Interim Chief Financial Officer, or either of them
acting singly in the absence of the other, with full power of substitution in
either of them, the proxies of the undersigned to vote with the same force and
effect as the undersigned all shares of the Companys Common Stock which the
undersigned is entitled to vote at the Annual Meeting of Stockholders to be held
on September 22, 2017 (the Annual Meeting), and at any adjournment or
adjournments thereof, hereby revoking any proxy or proxies heretofore given and
ratifying and confirming all that said proxies may do or cause to be done by
virtue thereof with respect to the following matters:
The undersigned hereby instructs
said proxies or their substitutes:
The Board of Directors recommends that you vote FOR the
following:
|
1.
|
Elect as Directors the nominees listed
below:
|
|
01
|
Yunfei Li
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
|
02
|
J. Simon Xue
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
|
03
|
Martha C. Agee
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
|
04
|
Jianjun He
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
|
05
|
Guosheng Wang
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
The Board of Directors recommends that you vote FOR the
following:
|
2.
|
Ratify the selection of Centurion ZD CPA Limited as the
Companys independent registered public accounting firm for fiscal year
ending December 31, 2017.
|
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
The Board of Directors recommends that you vote FOR the
following:
|
3.
|
Vote to approve, on an advisory basis, the compensation
of the Companys Named Executive Officers.
|
|
FOR [_]
|
AGAINST [_]
|
ABSTAIN [_]
|
The Board of Directors recommends that you vote EVERY THREE
YEARS for the following:
|
4.
|
Vote to approve, on an advisory basis, the frequency of
the voting with respect to the compensation of the Companys Named
Executive Officers.
|
|
EVERY YEAR [_]
|
EVERY TWO YEARS
[_]
|
EVERY THREE YEARS [_]
|
ABSTAIN [_]
|
NOTE
: In their discretion, the proxies are authorized to
vote upon such other business as may properly come before the Annual Meeting,
and any adjournment or adjournments thereof.
IF THIS PROXY IS PROPERLY EXECUTED, THE SHARES OF COMMON
STOCK COVERED HEREBY WILL BE VOTED AS SPECIFIED HEREIN. IF NO SPECIFICATION IS
MADE, SUCH SHARES WILL BE VOTED FOR THE ELECTION OF ALL NOMINATED DIRECTORS
(PROPOSAL 1), FOR THE RATIFICATION OF THE APPOINTMENT OF CENTURION ZD CPA
LIMITED AS THE COMPANYS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE
FISCAL YEAR ENDING DECEMBER 31, 2017 (PROPOSAL 2), FOR THE PROPOSAL REGARDING
A VOTE TO APPROVE, ON AN ADVISORY BASIS, THE COMPENSATION OF OUR NAMED EXECUTIVE
OFFICERS (PROPOSAL 3), AND EVERY THREE YEARS FOR THE PROPOSAL REGARDING A VOTE
TO APPROVE, ON AN ADVISORY BASIS, THE FREQUENCY OF THE VOTING WITH RESPECT TO
THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS (PROPOSAL 4). IN THEIR
DISCRETION, THE PROXIES ARE ALSO AUTHORIZED TO VOTE UPON SUCH OTHER MATTERS AS
MAY PROPERLY COME BEFORE THE ANNUAL MEETING.
I (we) acknowledge receipt of the Notice of Annual Meeting of
Stockholders and the Proxy Statement dated July 31, 2017, and ratify all that
the proxies, or either of them, or their substitutes may lawfully do or cause to
be done by virtue hereof and revoke all former proxies.
If you are voting by mail, please sign, date and mail this
proxy immediately in the enclosed envelope. You are also permitted and
encouraged to vote online by following the instructions on the Notice of
Internet Availability of Proxy Materials that was separately mailed to you.
|
Name
|
|
|
|
|
Name (if joint)
|
|
|
|
|
|
|
|
Date _____________, 2017
|
|
|
|
Please sign your name exactly as it appears hereon. When
signing as attorney, executor, administrator, trustee or guardian, please
give your full title as it appears hereon. When signing as joint tenants,
all parties in the joint tenancy must sign. When a proxy is given by a
corporation, it should be signed by an authorized officer and the
corporate seal affixed. No postage is required if returned in the enclosed
envelope, if mailed in the United States.
|
CBAK Energy Technology, Inc. (NASDAQ:CBAK)
Historical Stock Chart
From Mar 2024 to Apr 2024
CBAK Energy Technology, Inc. (NASDAQ:CBAK)
Historical Stock Chart
From Apr 2023 to Apr 2024