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China BAK Battery Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
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10qk

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China BAK Battery Inc. (CBAK) filed Quarterly Report for the period ended 2012-06-30.

China Bak Battery Inc. has a market cap of $24.5 million; its shares were traded at around $0.38 with and P/S ratio of 0.1.

Highlight of Business Operations:

We sold $6.3 million in lithium polymer cells for the three months ended June 30, 2012, compared to $2.0 million in lithium polymer cells in the same period in 2011, an increase of $4.3 million, or 215.5%, resulting from an increase of 179.4% in sales volume, offset by a decrease of 21.2% in our average selling price.

Sales and marketing expenses. Sales and marketing expenses increased to $2.2 million for the three months ended June 30, 2012, as compared to $2.0 million for the same period in 2011, an increase of $215,000, or 10.5%, primarily due to increased salaries and social insurance benefits of $232,000. As a percentage of revenues, sales and marketing expenses have increased to 4.8% for the three months ended June 30, 2012, from 4.3% for the same period in 2011, primarily due to the decrease in revenues from sales over the three months ended June 30, 2012.

General and administrative expenses. General and administrative expenses increased to $11.9 million, or 25.5% of revenues, for the three months ended June 30, 2012, as compared to $5.0 million, or 10.7% of revenues, for the same period in 2011, an increase of $6.9 million, or 136.5% . The primary reason for the increase was that provision for bad debt expenses increased by $7.1 million over the three months ended June 30, 2012.

Sales and Marketing Expenses. Sales and marketing expenses decreased to $5.9 million for the nine months ended June 30, 2012, as compared to $6.5 million for the same period in fiscal year 2011, a decrease of $547,000, or 8.4%, primarily due to decreased packing and transportation expenses of $300,000, depreciation of $194,000 and repair and maintenance expenses of $73,000, resulting from improved cost control under our strategic plan. As a percentage of revenues, sales and marketing expenses have decreased to 3.9% for the nine months ended June 30, 2012 from 4.1% for the same period in 2011, due to decreased sales commissions on revenues from older products.

General and Administrative Expenses. General and administrative expenses increased to $24.8 million, or 16.4% of revenues, for the nine months ended June 30, 2012, as compared to $15.1 million, or 9.6% of revenues, for the same period in fiscal year 2011, an increase of $9.8 million, or 64.7% . Bad debt expenses increased by $8.3 million during the nine months ended June 30, 2012 due to the provision charged following an assessment of account collectability in the second quarter of 2012.

Read the The complete Report

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