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Subsequent Events

12 Months Ended

Sep. 30, 2013

24.	Subsequent Events

	On November 18, 2013, the Company entered a Memorandum of Understanding agreement with Tianjin Zhantuo International Trading Co., Ltd (“Tianjin Zhantuo”). Pursuant to the agreement, the Company is planning to sell its Tianjin campus land use right and properties at RMB150 million (approximately $24.5 million) to Tianjin Zhantuo. Prior to the completion of the transaction, Tianjin Zhantuo agreed to provide loan financing to the Company to the extent of $21.2 million (RMB130 million) to help the Company repay the bank loans upon maturities. On November 20, 2013, the Company and Tianjin Zhantuo signed a loan agreement relating to the first batch of such loan in the amount of $8.2 million (RMB50 million), which is interest-free, secured by the other receivable due from Tianjin Zhantuo amounting $6.5 million (RMB39.7 million) (Note 6) and repayable on demand. On the same date, the Company received this loan from Tianjin Zhantuo and repaid the relevant matured bank loans of $8.2 million (RMB50 million).

On November 20, 2013, the Company entered into a loan agreement of $11.6 million (RMB71 million) with Shenzhen Aisibo Trading Company Co., Ltd, an unrelated third party, whereby the loan was unsecured and bearing interest at 0.17% per day. This loan was repaid on December 11, 2013.

On December 17, 2013, the Company entered into a loan agreement with Mr. Jinghui Wang, the sole shareholder of the potential buyer of BAK International whereby Mr. Wang agreed to lend the Company in the aggregate amount of $60.4 million (RMB370 million) which is secured by the Company’s 100% equity interest in BAK International and guaranteed by BAK International and the Company, bearing interest at 20% per annum and repayable by March 31, 2014. Up to the date of these financial statements, the Company has received $60.4 million (RMB370 million) pursuant to this loan agreement and $24.6 million (RMB150 million) from Mr. Wang.

Subsequent to September 30, 2013 and up to the date of these financial statements, bank loans of $43.3 million (RMB265 million) and bills payable of $8.1 million (RMB49.5 million) were due for repayment. The Company had renewed short term bank loan of $11.6 million (RMB71 million), repaid and early repaid bank loans of $94.9 million (RMB580.9 million) and bills payable of $8.1 million (RMB49.2 million).