China BAK Battery Inc. reported financial results for the fourth quarter and fiscal year ended September 30, 2005 were up almost 60% compared to 2004. For the fourth quarter of its fiscal year ended September 30, 2005, the Company reported revenue of $26.8 million, an increase of 59.2 percent compared to the $16.8 million reported for the fourth quarter of the 2004 fiscal year. For the full fiscal year ended September 30, 2005, the Company reported revenue of $101.9 million, an increase of 59.9 percent compared to the $63.7 million reported for the 2004 fiscal year.
Xiangqian Li, the Company's Chief Executive Officer, commented, "This was an outstanding year for China BAK Battery, as we exceeded $100 million in annual revenues for the first time with each quarter's revenues surpassing the prior quarter. We expanded our market opportunity by beginning lithium polymer battery manufacturing and grew our manufacturing capacity to meet growing demand for our products. The result of our growth initiatives in terms of products, market share growth and channel expansion combined with continued growth in our existing markets contributed to our increase in revenues, gross profit margin and the over 80 percent increase in net income for the 2005 fiscal year versus the 2004 fiscal year."
Gross profits for the fourth quarter of the 2005 fiscal year were $8.8 million, or 32.8 percent of sales, compared to gross profit of $3.6 million, or 21.6 percent of sales for the fourth quarter of the 2004 fiscal year. Total operating expenses for the fourth quarter of the 2005 fiscal year were $3.2 million, or 11.9 percent of sales, compared to $1.4 million, or 8.2 percent of sales for the fourth quarter of the 2004 fiscal year.
Net income for the fourth quarter of fiscal 2005 increased 188.8 percent to $4.6 million, or $0.11 per basic and diluted share, compared to net income of $1.6 million, or $0.05 per basic and diluted share, for the fourth quarter of fiscal 2004. The Company used 42.2 million diluted shares in the calculation for the fourth quarter of fiscal 2005 compared to 31.2 million diluted shares in the fourth quarter of fiscal 2004.
Gross profits for the year were $25.7 million, or 25.2 percent of sales, for the fiscal year ended September 30, 2005 compared to $13.8 million, or 21.7 percent of sales, for fiscal 2004. Total operating expenses for the 2005 fiscal year were $10.4 million, or 10.2 percent of sales, compared to $5.7 million, or 8.9 percent of sales for the 2004 fiscal year. Net income for the 2005 fiscal year was $12.4 million, or $0.32 per basic and fully diluted share, an increase of 83.4 percent compared to net income of $6.7 million, or $0.22 per share reported in the 2004 fiscal year.
The Company's cash balances increased during fiscal 2005, with cash and restricted cash totaling $52.4 million as of September 30, 2005 compared to $10.3 million as of September 30, 2004.
