SHENZHEN, China, April 4 /Xinhua-PRNewswire/ -- China BAK Battery Inc. (Nasdaq: CBAK)("China BAK" or "Company"), one of the largest lithium-ion battery cell manufacturers in China and in the world, today announced its Board of Directors has appointed PKF, Hong Kong, China ("PKF") as the Company's new independent auditors.
PKF replaces KPMG effective April 1, 2007. The decision to change auditors was approved by the Audit Committee of the Board of Directors of the Company. The engagement of PKF, an experienced auditor of China-based companies and in particular mid-cap companies, will allow the China BAK to reduce costs but maintain the same level of quality services. The Company feels this is prudent given the margin pressure experienced in its most recently reported fiscal quarter. PKF has began a transition process to assume audit responsibilities for the 2007 fiscal year. The Company has filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission reporting the change.
PKF is a member firm of PKF International, a network of assurance and business advisory practices with legally independent firms, comprising over 400 offices in 119 countries.
About China BAK Battery Inc.
China BAK Battery, Inc. is one of the largest manufacturers of lithium-based battery cells in China and in the world, as measured by production output. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers, cordless power tools and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices and Personal Digital Assistant or PDA. China BAK Battery, Inc.'s 1.9 million square feet facilities are located in Shenzhen, PRC, and have been recently expanded to produce new products. China BAK Battery, Inc. is the largest manufacturer of lithium-ion battery cells for China's cellular phone replacement battery market.
Safe Harbor Statement
This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China BAK Battery, Inc. and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: risks related to China BAK's business and risks related to operating in China. Please refer to China BAK's Annual Report on Form 10-K for the fiscal year ended September 30, 2006, 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.
