Chimin Sang

China BAK Battery: Overdone Sell-off Presents Buying Opportunity

ALL the VCs are liquidating their positions. KPMG has a negative view on internal control.

"We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of the Group’s internal control over financial reporting as of September 30, 2006, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated December 8, 2006 expressed an unqualified opinion on management’s assessment of, and an adverse opinion on the effective operation of, internal control over financial reporting.

/s/ KPMG
Hong Kong, China"


These two are very bad signs. This S-1 is a very negative one. Yes, no wonder people are selling.