DALIAN, China, Sept. 1, 2014 /PRNewswire/ -- On August 29, a delegation of the Standing Committee
of Dalian Municipal People's Congress took an inspection tour of
the power lithium battery R&D and production base of China BAK
Battery, Inc. ("China BAK", the "Company", or "we") (Nasdaq: CBAK)
in Dalian. The delegation studied
the business, products and solutions provided by China BAK and took
a test drive of electric vehicles powered by BAK batteries. Mr.
Jingrui Li, Director-General of the
Standing Committee of Dalian Municipal People's Congress, pointed
out that new energy has become one of the emerging strategic
industries receiving focused attention from the Dalian government in recent years. As the
world's leading lithium battery manufacturer and electric energy
solution provider, by entering Dalian,
China BAK will boost local new energy-related industries -
such as the power battery sector - and can help the city of
Dalian expedite its effort to take
a leading position in China's new
energy industry. China BAK's Chairman Xiangqian Li and several of the company's core
executives accompanied the government officials during the tour and
introduced the investment, planning and construction progress, and
outlined future prospects for this base.
Located in the Dalian Huayuankou Economic Zone, China BAK's
power lithium battery project was funded by Dalian BAK Power
Battery Co., Ltd. (" Dalian BAK"), China BAK's wholly-owned
subsidiary. With a total investment of approximately USD60 million and covering an area of 15.4
hectares, the project is expected to be equipped with four of the
most advanced lithium battery production lines in China and forecasts an annual output of 120
million Ah of high-energy power lithium batteries after completion,
to provide 100,000 sets of power battery packs for electric
vehicles and energy storage products.
In recent years, thanks to the Chinese government's favorable
policies, the growth of the new energy vehicle industry has shown
significant momentum. The year 2014 is seen as the first real year
for the development of China's new
energy vehicle industry by many industry insiders. In the first
half of 2014, the production of new energy vehicles reached 20,700
units - up 230 percent year-on-year; and sales reached
20,500 units - up 220 percent
year-on-year. As the core mechanism for new energy vehicles, the
power battery industry has also recently welcomed an unprecedented
growth. According to the Development Program for the Energy
Efficient and New Energy Vehicle Industry 2012-2020 designed by
the State Council of the PRC, some major objectives are: to
enthusiastically advance innovation in power battery technologies;
scientifically plan the industrial layout; focus on developing
power battery industry clusters; and actively promote the mass
production of power batteries. With the recent introduction of a
number of supporting policies, the production of power batteries
for vehicles has grown remarkably. The statistics from the Ministry
of Industry and Information Technology (MIIT) have shown that the
production of power lithium batteries for electric vehicles stood
at 804 million watt-hours in the first half of 2014, compared to
the 360 million watt-hours in the whole of 2013.
As one of the first pilot cities in China to promote new energy vehicles,
Dalian plans to own 5,000 units of
new-energy vehicles by 2015. In early August, the municipal
government issued the Opinions on Further Promoting New Energy
Vehicles, based on which the municipal government will provide
a one-time subsidy to new energy vehicle buyers who meet the
subsidy requirements put forward by the central government,
according to a ratio of 0.8:1. The promotion and application of new
energy vehicles has also advanced the development of related
industries. Currently, multiple new energy-related industrial bases
are being developed in Dalian.
Among them, the Huayuankou Economic Zone - a national hi-tech
and new materials industrial base - has taken shape in its
initial form as a cluster of technology-intensive industries
dominated by new energy, new materials and biopharmaceutical
industries. Moreover, the new energy industry cluster - led by
projects such as China BAK's power battery project - enjoys an
increasingly obvious advantage and provides strong support for
Dalian in its effort to become one
of the country's first pilot cities for the application of new
energy vehicles.
According to Mr. Jingrui Li,
Director-General of the Standing Committee of Dalian Municipal
People's Congress, "Power lithium batteries represent the main
direction for new energy vehicle technologies during the "12th
Five-Year Plan" period. We are very confident that China BAK will
be able to produce internationally advanced power batteries. We
also hope that China BAK can introduce more external think tanks
like the Dalian Institute of Chemical Physics of Chinese Academy of
Sciences ("DICP") to further the advancement of technological
innovation, making Dalian the
industrial and innovation base for energy efficient and new energy
vehicles in northern China."
Mr. Xiangqian Li, Chairman of
China BAK, said, "The Huayuankou
Economic Zone in Dalian is
actively developing the new material and new energy industries.
During our cooperation, we are very much impressed by the
government's confidence, determination and execution in growing the
local economy and, therefore, are more confident about the future.
With a good ecological environment and convenient transportation in
Dalian - and by taking advantage
of the opportunities for change in the lithium battery industry, as
well as by capitalizing onthe region's industrial and educational
resources and supportive government policies - BAK will achieve
another strategic advancement, helping to make Dalian a leader in the newenergy industry,
while driving the development of the entire lithium battery
industry."
In July 2013, China BAK and the
Dalian municipal government
officially signed an agreement to invest in the power lithium
battery project. The development of the project began in
October 2013 and is expected to be
completed and put into commercial operation before the end of
calendar year 2014. We have been actively working with the existing
customers of BAK International (Tianjin) Limited ("Tianjin BAK") on transfer
of their orders to Dalian BAK. Dalian BAK also has and will
continue to outsource its customers' orders to Tianjin BAK until
the manufacturing facility begins its commercial operations.
About China BAK Battery, Inc.
China BAK Battery, Inc. (CBAK),founded in August 2001, is a global leading, high-tech
enterprise engaged in the R&D, manufacture, and sale of
high-power lithium batteries. The application of its products and
solutions covers such areas aselectric tools, transportation and
energy storage. As the first lithium battery company in
China to belisted in the U.S. in
January 2005, CBAK possesses
China's first production base
specially engaged in power battery, and has its wholly-owned
subsidiary - Dalian BAK Power Battery Co., Ltd., and a
large-scale R&D and production base in Dalian. For more information, please visit
www.cbak.com.cn.
Safe Harbor
Statement
This press release contains forward-looking statements, which
are subject to change. The forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All "forward-looking statements"
relating to the business of China BAK Battery, Inc. and its
subsidiary companies, which can be identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions, involve known and unknown risks and
uncertainties which could cause actual results to differ. These
factors include but are not limited to: the ability of the Company
to meet its contract obligations; the uncertain market for the
Company's high-power lithium and other battery cells; business,
macroeconomic, technological, regulatory, or other factors
affecting the profitability of battery cells designed for electric
vehicles; and risks related to China BAK's business and risks
related to operating in China.
Please refer to China BAK's Annual Report on Form 10-K for the
fiscal year ended September 30, 2013,
as well as other SEC reports that have been filed since the date of
such annual report, for specific details on risk factors. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on forward-looking statements. China BAK's actual results
could differ materially from those contained in the forward-looking
statements. China BAK undertakes no obligation to revise or update
its forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release.
Photo - http://photos.prnewswire.com/prnh/20140901/141760
SOURCE China BAK Battery, Inc.