China BAK Batteries

China BAK Battery, Inc. (NASDAQ: CBAK) Investor Presentation June 2011

Safe Harbor Statement This presentation contains “forward-looking statements”. These statements relate to future events or to the Company’s anticipated performance involving known and unknown risks, uncertainties and other factors that could cause the actual results, level of activities, performance or achievements of the Company to differ materially from the results, level of activities, performance or achievements expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company will not and has no obligation to update the forward-looking information contained in this presentation. You should not place undue reliance on forward-looking statements.

Stock at a Glance Symbol: NASDAQ: CBAK Price (5/18/2011): $1.41 Shares Outstanding (2/8/2011): 63.6 million Market Cap. (5/18/2011): $89.7 million Revenues (TTM) $224.4 million P/S (TTM): 0.4x

Investment Summary 1 Leading lithium-ion battery manufacturer in China 2 Technology leader with leading R&D team and strong product pipeline 3 State-of-the-art manufacturing facility with focus on quality Transitioning to low-cost, high-quality manufacturer 5 4 Cost reduction through automation, process optimization 6 Mid-term growth from cylindrical cells; longer term: E-bike, EV 7 Maintaining positive operating cash flow

Company Overview
BAK Shenzhen established in 2001
Leading global manufacturer of lithium based battery cells
Corporate goal: To become a leading, global Li-ion battery supplier
R&D centers in Vancouver, Shenzhen, and Tianjin
Sales offices in Germany, India, and Austin, TX
Approximately 6,000 employees
China BAK Headquarters in Shenzhen

Corporate Milestones 2001 2002 2003 2004 2005 2006 2007 2008~2009 2011 ★ BAK founded in Shenzhen, China ★ Engaged production of Li Iron Phosphate cell ★ Production capability increased to 1 million cells/day from 2002 to 2005 ★ BAK International (Tianjin) founded in Tianjin, China ★ Shenzhen BAK started to produce Li ion cells for laptops ★ BAK was awarded “China’s famous brands’ ★ BAK International commenced operation ★ Started supply to several first tier notebook brands ★ BAK awarded the 863 EV Project by the Ministry of Science and Technology ★ Upgraded to NASDAQ ★ Reverse merger and APO ★ Promoted Marcus Cui to CFO

Polymer Cells
PDAs
Digital cameras
Bluetooth headsets
MP3/ Portable entertainment
Prismatic Cells
Cell phones
Bread-and-butter business today
Cylindrical Cells
Notebook computers
Only China supplier qualified by Top-6
Mid-term growth driver
High-Power Cells
Hybrid-electric vehicles
Light-electric vehicles
Uninterruptible power supplies
Li-ion Rechargeable Batteries Diversified Product Portfolio

Global Li-ion battery production: 4.2B cells in 2010 (People.com)
Lithium battery market forecasted to be $8B by 2015 (Pike Research)
China has a leading position in global Li-ion battery market and a 25% cost advantage (Roland Berger)
HEV/EV battery market could be $6-$13 billion in 2017 (Roland Berger)
China BAK was ranked #2 in China and #6 globally in 2009 (IIT)
Lithium Battery Market Source: People.com

Battery Types Nickel Cadmium Nickel Metal Hydride Lithium-Ion Lithium Polymer Max Voltage (V) 1.2 1.2 3.6 3.6 Energy density Low Medium High High Memory effect High Low Low Low Uses Toys, lights, power tools, cordless phones Vehicles, power tools Portable consumer electronics, vehicles, UPS Small portable electronics, headsets Revenue (%) 1H FY 2011 Current capacity (per month) Gross margin Prismatic 42.5% 17 million cells Above average Cylindrical 23.3% 8 million cells Above average High-Power 2.6% 0.6 million cells Below average Polymer 4.7% 3 million cells Below average Packs assembly for cell phones 26.9% 2 million cells Above average

Diverse, Marquee Customers Cylindrical Tier-1 notebook manufacturer Prismatic Polymer High Power Two Leading US PC manufacturers

CBAK sells products to international customers through direct sales, distributors and pack manufacturers
Extensive Sales Network

Started as a low-cost, aftermarket producer
Transitioning into an automated, high-quality producer with a broad product line
International presence
Strengthened management team globally
Actively managed performance by analyzing financial performance and setting up KPIs for different units
BAK—Company in Transition Tianjin Facility

Automated Production and Quality Assurance Mixing Calendering Significant process yield improvements over the last 12 months, focus on continuous performance improvement Control room Safety test Performance test
Four levels of quality control:
Design  Process  Material inflow  Output
Zero defects tolerated during design and structuring
Coating Slitting Tab cleaning Tab welding Winding

Strong R&D Team
Shenzhen facility has the most advanced R&D Center in the PRC
Team of 200 researchers and scientists
Gained government recognition as post doctoral working station
Maintains strong relationships with key institutes and universities
Dr. HuanYu Mao Joined BAK in 2004 17 years battery experience Dr. ZhongYi Deng Joined BAK in 2006 15 years battery experience Dr. Ulrich von Sacken Joined BAK in 2007 20 years battery experience Dr. Brian Way Joined BAK in 2007 16 years battery experience

Current products In development Product Pipeline No. Type Voltage Capacity Applications (HEV/PHEV/EV) /V /Ah 1 18650 3.6 2.0 EV 2 26650HP 3.2 2.2 HEV/PHEV 3 26650MP 3.2 2.7 PHEV/EV 4 36800MP 3.2 5.5 PHEV/EV 5 20148130 3.2 20 HEV/PHEV 6 20148240 3.2 50 EV 7 42148240 3.2 100 EV

By 2020, EVs could account for approximately 7-12% of total car sales Global Electric Vehicle Market (Sales): Scenario Analysis, 2008-2015 Source: Frost & Sullivan Demand for Global EV Market Scenario 2008 2009 2015 2020 (% of total car sales) Optimistic 5,103 17,475 2,266,450 12% Moderate 5,103 8,911 1,226,607 7% Conservative 5,103 7,550 520,953 4%

Electric Vehicle Market: Market Breakdown By Region (Asia Pacific), 2015 Source: Frost & Sullivan 2008 2015 650 169,000 75% 21% 4% NEV = Neighborhood Electric Vehicle CEV = City Electric Vehicle PHEV = Plug in Hybrid Electric Vehicle China’s EV Market
China is the world leader in Lithium batteries for Light Electric Vehicles
E-bikes have become the most popular personal transportation in towns, current production capability 30 million e-bikes per year

Cities in China have announced EV Pilot Source: Roland Berger Analysis and China Daily China’s EV Infrastructure Backed by Strong Government Support
13 cities in China have implemented EV
Pilot programs
According to Roland Berger Analysis, sales
of EV will account for approximately 19% of
total sales of vehicle under the pilot program
$8,784 government subsidies will be
granted to buyers for purchasing pure
electric vehicles in: Changchun, Shenzhen,
Hangzhou and Hefei
Buyers of plug-in hybrid cars will receive
subsidies up to $7,321
Government subsidies of RMB 500,000/bus for 1,000 buses in 2010
Government support to promote EV culture
and cut emissions creating opportunities
for CBAK

Growth Strategy
Increase production levels as relationships with current Tier 1 OEMs evolve
Maintain share with current customers and complete testing to receive orders from new Tier 1 OEMs
Current and New Customers
Strengthen R&D activities to maintain and advance leading-edge technology, develop higher-power cells
Strengthen R&D Capabilities
Capture market for E-bike and EV segments
Penetrate China EV/HEV market by selling to FAW, Chery and Haima, etc.
Establish partnerships with U.S. and foreign companies
Expand into New Markets
Develop or acquire complementary technologies
Develop new applications such as storage power stations, UPS, power tools
Expand Product Line

Strong Management Team
Visionary leader in China Li-ion battery industry
Bachelor’s in thermal energy and power engineering, Lanzhou Railway Institute; Ph.D. in quantitative economics, Jilin University
Xiangqian Li Founder, Chairman and CEO
Served as Interim Chief Financial Officer since December 2010, and the finance director of our indirectly wholly-owned subsidiary BAK International (Tianjin) Ltd. since December 2009
Worked in Japan for Nomura Institute of Capital Market Research
Bachelor of Science degrees from Chiba University of Japan and Jilin University, Master's degree from University of Newcastle of England
Marcus Cui Chief Financial Officer
20+ years in the Li-ion battery industry
GM/EVP at NEC Moli Energy and E-One Moli Energy
B.S. in chem. engineering from Univ. of Waterloo
Ken Broom Chief Operating Officer

Revenue, Gross Profit* and Margin*

Summary Income Statement Year ended Sept 30 ($ Million) 2008 2009 2010 Net revenues $245.3 $211.1 $214.8 Cost of revenues 214.4 184.4 192.1 Gross profit 30.9 26.8 22.7 Operating income (0.5) (7.1) (27.8) Income (loss) before taxes (9.0) (15.2) (36.1) Net income (loss) (7.9) (14.0) (32.8) Comprehensive income (loss) 7.3 (14.3) (29.6) Diluted EPS ($0.15) ($0.25) ($0.53)

Summary Balance Sheet ($ Millions) March 31, 2011 September 30, 2010 Cash and cash equivalents $25.6 $22.6 Total current assets 201.1 194.7 Total assets 467.6 456.6 Total current liabilities 286.4 265.5 Total liabilities 320.7 306.2 Shareholders’ equity 146.9 150.4

Investment Summary 1 Leading lithium-ion battery manufacturer in China 2 Technology leader with leading R&D team and strong product pipeline 3 State-of-the-art manufacturing facility with focus on quality Transitioning to low-cost, high-quality manufacturer 5 4 Cost reduction through automation, process optimization 6 Mid-term growth from cylindrical cells; longer term: E-bike, EV 7 Maintaining positive operating cash flow

China BAK Battery, Inc. Mr. Marcus Cui, CFO Phone: +86-755-8977-0093 Email: [email_address] ak.com.cn Counsel Pillsbury Winthrop Shaw Pittman LLP 2300 N Street, NW Washington, DC 20037-1122 Investor Relations Firm: CCG Investor Relations Inc. Mr. Roger Ellis, Partner and Senior VP Phone: +1-310-954-1332 [email_address] Auditor PKF Certified Public Accountants Hong Kong Contact Information This Presentation of CBAK was developed by the Company and CCG and is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not represented by CBAK or CCG as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.

Thank You

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China BAK Batteries

by CCG Investor Relations on May 26, 2010

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China BAK Batteries — Presentation Transcript