Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

China BAK Battery, Inc. (NASDAQ:CBAK)

F4Q12 Earnings Call

December 20, 2012 08:00 am ET

Executives

Tracy Li – Investor Relations Officer

Xiangqian Li – Chairman, President and Chief Executive Officer

Tracy Li

Hello. Good evening, everyone. Thank you for joining us on China BAK’s Fourth Quarter and Fiscal Year-End September 30, 2012 Conference Call. Today we have IR Department staff here to answer all the investor’s questions. Since we have already publicly announced the initial performance, and we estimated to file the 10-K by end of this month, so we will only discuss any questions if you have.

So hello, may I know who’s online.

Question-and-Answer Session

Unidentified Analyst

Yeah, hello.

Tracy Li

Hello. This is Tracy Li…

Unidentified Analyst

Yes, first during the conference call China BAK Battery.

Tracy Li

Hello, hi.

Xiangqian Li

Hi.

Tracy Li

Can you hear me?

Xiangqian Li

Yes.

Tracy Li

I cannot hear you clearly. Hello?

Xiangqian Li

Yes, go ahead.

Tracy Li

Yes.

Xiangqian Li

I’m listening in.

Tracy Li

Hi, sir. Is there any questions?

Unidentified Analyst

Yeah, hello.

Tracy Li

Hi.

Unidentified Analyst

Yeah, this is for CBAK.

Tracy Li

Yes, this is CBAK Fourth quarter and fiscal year 2012 earnings call.

Unidentified Analyst

Okay, fine. How much time remains to start the call?

Tracy Li

Pardon, I cannot hear you clearly, excuse me.

Unidentified Analyst

Yeah, I just want to confirm how much time remains to start the call?

Tracy Li

The call is now started.

Xiangqian Li

Oh, so you are just taking questions from whoever is on the line right now?

Tracy Li

Yes.

Xiangqian Li

Okay, you want to go ahead first sir, or you’re ahead of me? Yeah, do you want me to go ahead?

Tracy Li

Yes, please.

Xiangqian Li

All right. I will ask you, you currently, I know your CFO left in August if I remember correctly, why is it that you haven’t replaced him with another CFO?

Tracy Li

Actually we have almost closed the interview process and we have already, has a new CFO, and we estimated to appoint him by end of this month. So right after we file the 10-K and the new CFO will start from the calendar year 2013.

Unidentified Analyst

Okay, because that would definitely help your situation. When you don’t have a CFO, it doesn’t look too good.

Tracy Li

Yeah.

Unidentified Analyst

You had a scaling report that came out December 3, the institutions all had in their hand saying that your company is installment, how do you address that?

Tracy Li

Yeah, we have actually have read that article, and we think that most of the information you’ve got actually is not correct. Just from the filing time from the first part of that, so it is a review that’s right here, it’s not, carefully study our company and didn’t (inaudible), so we know that we will also notice the price, performance during these days. We believe that’s because driving by other reasons just we are in a selection of some government supported projects, and that kind of information is half public in the industry, but we cannot disclose before the government publicly announce the year selection.

So that kind of information may lead to the market and mixed price has some abnormal performance. That article we believe is not correct and we solely didn’t make any official address to that.

Unidentified Analyst

You got a lot of rumors circling out there amongst the institutional guys and of course, your Investment Relations firm, which we believe you should get rid of, because they are under investigation, and I know, if you know they’re not, but putting that aside for a minute, you need to find somebody else, because they are not doing a good job for you okay?

Tracy Li

Actually we’ve already – well, we’ve engaged another IR firm.

Unidentified Analyst

Yeah, you’ve been told that a long time ago to get rid of these guys, and they are not, they are a very shady company in our opinion. But putting that aside, they’ve been getting, but barred with calls over and I guess they are not telling you that the word bankruptcy has been thrown around and we feel, we don’t think that’s the case, but we want to ask you by, but we feel there’s a lot of people out there who are shorting your stock, trying to drive your stock price down by throwing that word out there and keeping your stock price depressed, and that should have been addressed very rapidly by the Investor Relations firm, which they didn’t bother doing, and this has been going on for quite a while, I guess you’re not aware that. How would you address that, because you need to spell that real quickly if that isn’t true?

Tracy Li

Yeah, and I think that’s all our requirements to our new IR firm, and we will work more closely with them.

Unidentified Analyst

Yeah, because that’s why your stock price has been word is, and I think if that had been put out, you then had to do reverse split, and that Investor Relations firm hasn’t done you on any justice at all. And they’re known to handle throughout the companies, companies that are under verge of bankruptcy and shady companies, okay as [Cracker Carlson Group], right?

Tracy Li

Yeah.

Unidentified Analyst

You need to find somebody back at least somebody with impeccable credentials and somebody who is probably handling some other companies that are stellar companies up put you in good light. You need to start marketing yourselves better. But let me put the switch on to your batteries. You’ve been doing some stuff with the various car companies, Chery and I just can’t remember the other one, but some of the various car companies over there. How are you making out on that end?

Tracy Li

Well, we have reached really good progress during the past year at least today. I mean these days we’ve already had a new progress with China at AW Group. We have assembled some EV cars, EV vehicles for the governors and for the bank officials to pass the driving. So we believe that in the New Year, we will keep our corporation with the top Chinese high electric vehicle makers.

And also in December, our program, the Key Materials, Batteries and Battery Packs for use in EV was selected into the National Support List. We ranked the number one in all the EV battery suppliers in China, which is the highest, the top position that the Chinese government that granted to EV battery suppliers.

So by this kind of acknowledge, the government will place new orders to us through their supported automakers and also with our current business relationships with the high-tech Chinese EV maker and with FAW, China first auto. All those markers, they are satisfied with our products. So we will get new orders responding in auto in the New Year.

Unidentified Analyst

Do you expect those orders to be substantial more than just to touch that?

Tracy Li

Yes, that will be replaced order from, based on our previous year’s samples. We are mainly by our cylindrical battery sales, which are transitionally used in laptop computers, which will be a much better margin for this product.

Unidentified Analyst

May I ask you a question that’s maybe relevant and sometimes small things can turn into big thing, even they don’t seem to begin with. But any chance that maybe change in your, name your company, maybe something that makes a little more catchy, sometimes that where China know this respect, but sometimes they can have a negative connotation, BAK, sometime they see a symbol, people make, or is that a banking stock, is that a battery stock, or they come up with other things would be 8-K. I just wanted to someway maybe you can come up with something a little more catchy that a little more universal?

Tracy Li

Yeah, I got it, it’s really a good suggestion.

Unidentified Analyst

Yeah, looking at it from my ended upon over here.

Tracy Li

Got it, we will pass this information to the management for their determination.

Unidentified Analyst

Okay. And hopefully you start skyrocketing the stock up here, this is getting old and we can maybe start doing some forward splits going forward instead of reverse splits, okay?

Tracy Li

Okay, got it. Thank you.

Unidentified Analyst

Okay. I wish you all, listen and if I have any other question, I’ll get back on the line and ask you some more questions. I’ll let somebody else get on.

Tracy Li

Thanks. Any other questions?

Unidentified Analyst

Sorry, I rush myself. Well, I guess there is, but listen you guys, obviously a great disappoint is where is that and what’s been done to your company and some that’s been brought on by other people, some that’s been brought on by yourself and whatnot. But let’s see if we can bring in this New Year and start (inaudible) things around over there and let’s get some good marketing skills over there and start acting like a 12,000 pound grower?

Tracy Li

Thank you.

Unidentified Analyst

Yeah.

Tracy Li

We all make a good preparation for the New Year.

Unidentified Analyst

Actually I hope so, and let’s see if we can make this thing. Let’s put your company on the map for a change, okay?

Tracy Li

Right, thank you.

Unidentified Analyst

Because we don’t wanted to be the lapping stock anymore. I want to thank you for your time.

Tracy Li

Thank you. Thanks for your time also.

Unidentified Analyst

You’re very welcome.

Tracy Li

There’s no more questions. We always welcome all the investors to contact our IR Department directory or right after the K. By end of this month, our new CFO will be very glad to contact all the investors and potential investors. And I think in future, we will get more close conversation and communication between us. Thanks for all of you who joined the call.

Xiangqian Li

You’re welcome.

Tracy Li

You’re welcome. Bye-bye.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: China BAK Battery's CEO Discusses F4Q12 Results - Earnings Call Transcript
This Transcript
All Transcripts