<SEC-DOCUMENT>0001062993-16-010497.txt : 20160711
<SEC-HEADER>0001062993-16-010497.hdr.sgml : 20160711
<ACCEPTANCE-DATETIME>20160711160516
ACCESSION NUMBER:		0001062993-16-010497
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160826
FILED AS OF DATE:		20160711
DATE AS OF CHANGE:		20160711
EFFECTIVENESS DATE:		20160711

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA BAK BATTERY INC
		CENTRAL INDEX KEY:			0001117171
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				880442833
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32898
		FILM NUMBER:		161762167

	BUSINESS ADDRESS:	
		STREET 1:		BAK INDUSTRIAL PARK, MEIGUI STREET
		STREET 2:		HUAYUANKOU ECONOMIC ZONE
		CITY:			DALIAN
		STATE:			F4
		ZIP:			116422
		BUSINESS PHONE:		(86)(411)6251-0619

	MAIL ADDRESS:	
		STREET 1:		BAK INDUSTRIAL PARK, MEIGUI STREET
		STREET 2:		HUAYUANKOU ECONOMIC ZONE
		CITY:			DALIAN
		STATE:			F4
		ZIP:			116422

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEDINA COFFEE INC
		DATE OF NAME CHANGE:	20000626
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>def14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
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   <TITLE>China BAK Battery, Inc.: Form DEF 14A - Filed by newsfilecorp.com</TITLE>
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<P align=center><B><FONT size=5>UNITED STATES </FONT></B><BR><B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT></B><BR><B>WASHINGTON, D.C.
20549 </B></P>
<P align=center><B><FONT size=5>SCHEDULE 14A </FONT></B></P>
<P align=center>Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 </P>
<P align=justify>Filed by the Registrant [X] <BR>Filed by a Party other than the
Registrant [&nbsp; ] </P>
<P align=justify>Check the appropriate box: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>[ &nbsp;]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">Preliminary Proxy Statement </TD></TR>
  <TR vAlign=top>
    <TD align=left>[&nbsp; ]</TD>
    <TD align=left width="95%">Confidential, For Use of the Commission Only
      (As Permitted by Rule 14a-6(e)(2)) </TD></TR>
  <TR vAlign=top>
    <TD align=left>[X]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">Definitive Proxy Statement </TD></TR>
  <TR vAlign=top>
    <TD align=left>[&nbsp; ]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">Definitive Additional Materials </TD></TR>
  <TR vAlign=top>
    <TD align=left>[&nbsp; ]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">Soliciting Material under Rule 14a-12
  </TD></TR></TABLE>
<P align=center><B><U><FONT size=5>CHINA BAK BATTERY, INC.
</FONT></U></B><BR>(Name of Registrant as Specified In Its Charter) </P>
<P align=center>_____________________________________________________<BR>(Name
of Person(s) Filing Proxy Statement, if other than the Registrant) </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left colSpan=2>Payment of Filing Fee (Check the appropriate
      box): </TD></TR>
  <TR vAlign=top>
    <TD align=left>[X]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">No fee required </TD></TR>
  <TR vAlign=top>
    <TD align=left>[&nbsp; ]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">Fee computed on table below per Exchange Act
      Rules 14a-6(i)(1) and 0-11. </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Title of each class of securities to which transaction
      applies:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Aggregate number of securities to which transaction
      applies:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Per unit price or other underlying value of transaction
      computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which
      the filing fee is calculated and state how it was determined):</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Proposed maximum aggregate value of
transaction:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(5) </TD>
    <TD>
      <P align=justify>Total fee paid:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD
style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>[&nbsp; ]&nbsp;&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify>Fee paid previously with preliminary materials.
</P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left>[&nbsp; ] </TD>
    <TD align=left width="95%">
      <P align=justify>Check box if any part of the fee is offset as provided by
      Exchange Act Rule 0-11(a)(2) and identify the filing for which the
      offsetting fee was paid previously. Identify the previous filing by
      registration statement number, or the form or schedule and the date of its
      filing. </P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>(1) </TD>
    <TD align=left width="90%">Amount Previously Paid: </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="90%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>(2) </TD>
    <TD align=left width="90%">Form, Schedule or Registration Statement No.:
    </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="90%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>(3) </TD>
    <TD align=left width="90%">Filing Party: </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="90%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>(4) </TD>
    <TD align=left width="90%">Date Filed: </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="90%">&nbsp;</TD></TR></TABLE><BR>
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<P align=center><IMG src="def14ax2x1.jpg" border=0 width="376" height="62"> </P>
<P align=center><B>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</B> <BR><B>To Be
Held On August 26, 2016</B><B> </B></P>
<P align=justify>To the Stockholders of CHINA BAK BATTERY, INC.: </P>
<P align=justify style="text-indent:5%">You are cordially invited to
attend the 2016 Annual Meeting of Stockholders (the &#147;Annual Meeting&#148;) of China
BAK Battery, Inc., a Nevada corporation (the &#147;Company&#148;) on Friday, August 26,
2016, at 9:00 a.m., local time, at BAK Industrial Park, Meigui Street,
Huayuankou Economic Zone, Dalian City, 116450, China. </P>
<P align=justify style="text-indent:5%">We are now filing this proxy
statement on Schedule 14A with the Securities and Exchange Commission (&#147;SEC&#148;) in
order to provide the disclosures required by the rules and regulations of the
SEC in connection with the Annual Meeting, which will be held for the following
purposes: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>To elect five (5) persons to the Board of Directors of
      the Company, each to serve until the next annual meeting of stockholders
      of the Company or until such person shall resign, be removed or otherwise
      leave office;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>To ratify the appointment of Crowe Horwath (HK) CPA
      Limited as the Company&#146;s independent registered public accounting firm for
      the fiscal year ending on September 30, 2016; and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>To transact such other business as may properly come
      before the Annual Meeting or at any postponement or adjournment of the
      Annual Meeting.</P></TD></TR></TABLE>
<P align=justify style="text-indent:5%">The foregoing items of business
are more fully described in the proxy statement accompanying this Notice or made
available over the Internet. We are not aware of any other business to come
before the Annual Meeting. </P>
<P align=justify style="text-indent:5%">Only stockholders of record at
the close of business on July 8, 2016 (the &#147;Record Date&#148;) are entitled to notice
and to vote at the Annual Meeting and any adjournment or postponement thereof.
</P>
<P align=justify style="text-indent:5%"><B>It is important that your
shares are represented at the Annual Meeting. We urge you to review the attached
Proxy Statement and, whether or not you plan to attend the Annual Meeting in
person, please vote your shares promptly by casting your vote via the Internet
or, if you receive a full set of proxy materials by mail or request one be
mailed to you, and prefer to mail your proxy or voter instructions, please
complete, sign, date, and return your proxy or vote instruction form in the
pre-addressed envelope provided, which requires no additional postage if mailed
in the United States. You may revoke your vote by submitting a subsequent vote
over the Internet or by mail before the Annual Meeting, or by voting in person
at the Annual Meeting.</B> </P>
<P align=justify style="text-indent:5%">If you plan to attend the Annual
Meeting, please notify us of your intentions. This will assist us with meeting
preparations. If your shares are not registered in your own name and you would
like to attend the Annual Meeting, please follow the instructions contained in
the <B>Shareholder Notice of Availability of Proxy Materials </B>that is being
mailed to you and any other information forwarded to you by your broker, trust,
bank, or other holder of record to obtain a valid proxy from it. This will
enable you to gain admission to the Annual Meeting and vote in person. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">By Order of the Board of Directors, </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="50%">/s/
      Yunfei Li </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Secretary </TD></TR></TABLE>
<P align=justify>July 11, 2016 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center><B>TABLE OF CONTENTS</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee><A
      href="#page_4"><B>QUESTIONS
      AND ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL MEETING</B> </A></TD>
    <TD noWrap align=right width="10%" bgColor=#eeeeee><A
      href="#page_4"><B>1</B>
      </A></TD></TR>
  <TR>
    <TD noWrap align=left>&nbsp;</TD>
    <TD noWrap align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_9"><B>SECURITIES
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND</B> <B>RELATED
      STOCKHOLDER MATTERS</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_9"><B>6</B>
      </A></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10"><B>PROPOSAL
      1. - ELECTION OF DIRECTORS</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_10"><B>7</B>
      </A></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23"><B>PROPOSAL
      2. &#150; RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_23"><B>20</B>
      </A></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_25"><B>OTHER
      MATTERS</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_25"><B>22</B>
      </A></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_25"><B>STOCKHOLDER
      COMMUNICATIONS</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_25"><B>22</B>
      </A></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_25"><B>STOCKHOLDER
      PROPOSALS FOR THE 2017 ANNUAL MEETING</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_25"><B>22</B>
      </A></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_25"><B>ANNUAL
      REPORT ON FORM 10-K</B> </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A
      href="#page_25"><B>22</B>
      </A></TD></TR></TABLE><BR>
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<P align=center><B>CHINA BAK BATTERY, INC. </B><BR>BAK Industrial Park,
<BR>Meigui Street, Huayuankou Economic Zone, <BR>Dalian City, 116450, China </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="20%" border=0>

  <TR>
    <TD style="BORDER-TOP: #000000 1px solid" align=center>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center><B>PROXY STATEMENT</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify style="text-indent:5%">This Proxy Statement and the
accompanying proxy are being furnished with respect to the solicitation of
proxies by the Board of Directors of China BAK Battery, Inc., a Nevada
corporation (the &#147;Company&#148; or &#147;we&#148;), for the Company&#146;s Annual Meeting of
Stockholders (the &#147;Annual Meeting&#148;). The Annual Meeting is to be held at 9:00
a.m., local time, on Friday, August 26, 2016, and at any adjournment(s) or
postponement(s) thereof, at the principal executive offices of the Company,
located at BAK Industrial Park, Meigui Street, Huayuankou Economic Zone, Dalian
City, 116450, China. </P>
<P align=justify style="text-indent:5%">The approximate date on which the
Proxy Statement and the accompanying notice and form of proxy are intended to be
sent or made available to stockholders is on or about July 11, 2016. </P>
<P align=center><B>QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE
ANNUAL MEETING </B></P>
<P align=justify><B>Why am I receiving these materials? </B></P>
<P align=justify style="text-indent:5%">Our records indicate that you
owned your shares of Company common stock, par value $ $0.001 per share (&#147;Common
Stock&#148;) at the close of business on July 8, 2016 (the &#147;Record Date&#148;). You have
been sent this Proxy Statement and the enclosed proxy because the Company is
soliciting your proxy to vote your shares of Common Stock at the Annual Meeting
on the proposals described in this Proxy Statement. </P>
<P align=justify><B>What proposals am I voting on at the Annual Meeting?
</B></P>
<P align=justify style="text-indent:5%">Two proposals will be voted on at the
Annual Meeting: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>to elect five (5) persons to the Board of Directors of
      the Company, each to serve until the next annual meeting of stockholders
      of the Company or until such person shall resign, be removed or otherwise
      leave office (Proposal 1); and</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>to ratify the appointment of Crowe Horwath (HK) CPA
      Limited as the Company&#146;s independent registered public accounting firm for
      the fiscal year ending on September 30, 2016 (Proposal
2)</P></TD></TR></TABLE>
<P align=justify><B>Who is entitled to vote at the Annual Meeting? </B></P>
<P align=justify style="text-indent:5%">All owners of our Common Stock as
of the close of business on the Record Date are entitled to vote their shares of
Common Stock at the Annual Meeting and any adjournment or postponement thereof.
As of the Record Date, a total of 17,287,994 shares of Common Stock are
outstanding and eligible to vote at the Annual Meeting. Each share of Common
Stock is entitled to one vote on each matter properly brought before the Annual
Meeting. The enclosed proxy card or voting instruction card shows the number of
shares you are entitled to vote at the Annual Meeting. </P>
<P align=justify style="text-indent:5%"> Stockholder of Record: Shares
Registered in Your Name </I></P>
<P align=justify style="text-indent:5%">If on the Record Date your shares
were registered directly in your name with the Company, then you are a
stockholder of record. As a stockholder of record, you may vote in person at the
Annual Meeting or vote by proxy. </P>
<P align=center>1 </P>
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<P align=justify>Whether or not you plan to attend the Annual Meeting, to ensure
your vote is counted, we encourage you to vote either by Internet or by filling
out and returning the enclosed proxy card. </P>
<P align=justify style="text-indent:5%">Beneficial Owner: Shares Registered
in the Name of a Broker or Bank </I></P>
<P align=justify style="text-indent:5%">If on the Record Date your shares
were held in an account at a brokerage firm, bank, dealer, or other similar
organization, then you are the beneficial owner of shares held in &#147;street name&#148;
and these proxy materials are being forwarded to you by that organization. The
organization holding your account is considered the stockholder of record for
purposes of voting at the Annual Meeting. As the beneficial owner, you have the
right to direct your broker or other agent on how to vote the shares in your
account.</P>
<P align=justify><B>How do I vote? </B></P>
<P align=justify style="text-indent:5%">Your shares may only be voted at
the Annual Meeting if you are present in person or are represented by proxy.
Whether or not you plan to attend the Annual Meeting, we encourage you to vote
by proxy to ensure that your shares will be represented. </P>
<P align=justify style="text-indent:5%">You may vote using any of the
following methods: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify><I>By Internet</I>. You may vote by using the Internet in
      accordance with the instructions provided on the Shareholder Notice of
      Availability of Proxy Materials. The Internet voting procedures are
      designed to authenticate stockholders&#146; identities, to allow stockholders
      to vote their shares and to confirm that their instructions have been
      properly recorded. </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify><I>By Mail</I>. Stockholders of record of Common Stock as
      of the Record Date may submit proxies by completing, signing and dating
      their proxy cards and mailing them in the accompanying pre-addressed
      envelopes. If you return your signed proxy but do not indicate your voting
      preferences, your shares will be voted on your behalf &#147;FOR&#148; the five
      nominees to the Board of Directors (Proposal 1) and &#147;FOR&#148; the ratification
      of Crowe Horwath (HK) CPA Limited as our independent registered public
      accounting firm for our fiscal year ending on September 30, 2016 (Proposal
      2). Stockholders who hold shares beneficially in street name and have
      requested to receive printed proxy materials may provide voting
      instructions by mail by completing, signing and dating the voting
      instruction forms provided by their brokers, banks or other nominees and
      mailing them in the accompanying pre-addressed envelopes. </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify><I>In person at the Annual Meeting. </I>Shares held in
      your name as the stockholder of record may be voted in person at the
      Annual Meeting or at any postponement or adjournment of the Annual
      Meeting. Shares held beneficially in street name may be voted in person
      only if you obtain a legal proxy from the broker, bank or nominee that
      holds your shares giving you the right to vote the shares. <B><I>Even if
      you</I></B> <B><I>plan to attend the Annual Meeting, we recommend that you
      also submit your proxy or voting</I></B> <B><I>instructions by mail or
      Internet so that your vote will be counted if you later decide not to
      attend the</I></B> <B><I>Annual Meeting</I></B>. </P></TD></TR></TABLE>
<P align=justify><B>Can I change my vote or revoke my proxy? </B></P>
<P align=justify style="text-indent:5%">If you are a stockholder of
record, you may revoke your proxy at any time prior to the vote at the Annual
Meeting. If you submitted your proxy by mail, you must file with our Secretary a
written notice of revocation or deliver, prior to the vote at the Annual
Meeting, a valid, later-dated proxy. If you submitted your proxy by the
Internet, you may revoke your proxy with a later Internet proxy. Attendance at
the Annual Meeting will not have the effect of revoking a proxy unless you give
written notice of revocation to the Secretary before the proxy is exercised or
you vote by written ballot at the Annual Meeting. If you are a beneficial owner,
you may vote by submitting new voting instructions to your broker, bank or
nominee, or, if you have obtained a legal proxy from your broker, bank or
nominee giving you the right to vote your shares, by attending the meeting and
voting in person. </P>
<P align=center>2 </P>
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<P align=justify><B>Who may attend the Annual Meeting? </B></P>
<P align=justify style="text-indent:5%">All stockholders that were
stockholders of the Company as of the Record Date, or their authorized
representatives, may attend the Annual Meeting. Admission to the Annual Meeting
will be on a first-come, first-served basis. If your shares are held in the name
of a brokerage firm, bank, dealer or other similar organization that holds your
shares in &#147;street name&#148; and you plan to attend the Annual Meeting, you should
bring proof of ownership to the Annual Meeting, such as a current bank or
brokerage account statement, to ensure your admission. </P>
<P align=justify><B>What constitutes a quorum and how will votes be counted?
</B></P>
<P align=justify style="text-indent:5%">The Annual Meeting will be held
if a quorum, consisting of thirty-three and one-third percent (33-1/3%) of the
outstanding shares of Common Stock entitled to vote as of the Record Date, is
represented in person or by proxy. Abstentions and broker &#147;non-votes&#148; will be
counted as present and entitled to vote for purposes of determining a quorum.
</P>
<P align=justify style="text-indent:5%">A broker &#147;non-vote&#148; occurs when a
nominee, such as a bank or broker, holding shares for a beneficial owner, does
not vote on a particular proposal because the nominee does not have
discretionary voting power with respect to that item and has not received
instructions from the beneficial owner. Under the rules of the New York Stock
Exchange, absent instructions from the beneficial owners, banks and brokers who
hold shares in street name for beneficial owners have the authority to vote only
on routine corporate matters, such as the ratification of Crowe Horwath (HK) CPA
Limited as our independent registered public accounting firm for our fiscal year
ending on September 30, 2016 (Proposal 2) without instructions from the
beneficial owner of those shares. On the other hand, absent instructions from
the beneficial owner of such shares, a broker is not entitled to vote shares
held for a beneficial owner on certain &#147;non-routine&#148; matters, such as the
uncontested election of our directors (Proposal 1). </P>
<P align=justify style="text-indent:5%">Broker non-votes are counted for
purposes of determining whether or not a quorum exists for the transaction of
business at the Annual Meeting or any postponement or adjournment of the Annual
Meeting, but will not be counted for purposes of determining the number of
shares represented and voted with respect to an individual proposal, and
therefore will have no effect on the outcome of the vote on an individual
proposal. Thus, if you do not give your broker specific voting instructions,
your shares may not be voted on these &#147;non-routine&#148; matters and will not be
counted in determining the number of shares necessary for approval. </P>
<P align=justify><B>How are proxies being solicited and who will pay for the
solicitation of proxies? </B></P>
<P align=justify style="text-indent:5%">This proxy solicitation is being
made by the Company on behalf of the Board of Directors of the Company and will
be paid for by the Company. We will reimburse brokerage firms, banks and other
persons representing beneficial owners of shares for their expenses in
forwarding solicitation materials to such beneficial owners. Proxies may be
solicited by certain of our directors, officers and regular employees personally
or by telephone, facsimile or electronic mail. No additional compensation will
be paid to these persons for such services. </P>
<P align=justify><B>I am a stockholder, and I only received a copy of the
Shareholder Notice of Availability of Proxy Materials (&#147;Notice&#148;) in the mail.
How may I obtain a full set of the proxy materials? </B></P>
<P align=justify style="text-indent:5%">In accordance with the &#147;notice
and access&#148; rules of the SEC, we may furnish proxy materials, including this
Proxy Statement, to our stockholders of record and beneficial owners of shares
by providing access to such documents on the Internet instead of mailing printed
copies. Stockholders will not receive printed copies of the proxy materials
unless they request them. Instead, the Notice, which was mailed to our
stockholders, will instruct you as to how you may access and review all of the
proxy materials on the Internet. If you would like to receive a paper or
electronic copy of our proxy materials, you should follow the instructions for
requesting such materials in the Notice. </P>
<P align=justify><B>I share an address with another stockholder, and we received
only one paper copy of the proxy materials. How may I obtain an additional copy
of the proxy materials? </B></P>
<P align=center>3 </P>
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noShade SIZE=5>
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<P align=justify style="text-indent:5%">We have adopted a procedure
called &#147;householding,&#148; which the SEC has approved. Under this procedure, we
deliver a single copy of the Notice and, if applicable, the proxy materials to
multiple stockholders who share the same address unless we received contrary
instructions from one or more of the stockholders. This procedure reduces our
printing costs, mailing costs and fees. Stockholders who participate in
householding will continue to be able to access and receive separate proxy
cards. Upon written or oral request, we will deliver promptly a separate copy of
the Notice and, if applicable, the proxy materials to any stockholder at a
shared address to which we delivered a single copy of any of these documents. To
receive a separate copy of the Notice and, if applicable, these proxy materials,
stockholders may contact: </P>
<P align=center>Corporate Secretary <BR>China BAK Battery, Inc. <BR>BAK
Industrial Park, <BR>Meigui Street, Huayuankou Economic Zone, <BR>Dalian City,
116450, China <BR>Telephone: 86-411-39185985; Fax: 86-411-39185980 <BR>E-mail:
ir@cbak.com.cn </P>
<P align=justify style="text-indent:5%">Stockholders who hold shares in
street name (as described above) may contact their brokerage firm, bank,
broker-dealer or other similar organization to request information about
householding. </P>
<P align=justify><B>Whom should I contact with other questions? </B></P>
<P align=justify style="text-indent:5%">You may obtain information from
us by making a request by telephone or in writing at the address of our
Corporate Secretary set forth above. </P>
<P align=center>4 </P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B>Important Notice Regarding the Availability of Proxy
      Materials for</B> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B>the Annual Meeting to Be Held on August 26, 2016:</B>
  </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp;
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B>The Notice of Annual Meeting of Stockholders, Proxy
      Statement and 2015 Annual Report are</B> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B>available at </B><B>www.shareholdervote.info</B> </TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center >&nbsp;</TD></TR></TABLE>
<P align=center>5 </P>
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noShade SIZE=5>
<!--$$/page=--><A name=page_9></A>
<P align=center><B>SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND <BR>RELATED STOCKHOLDER MATTERS </B></P>
<P align=justify><B>Securities Ownership of Certain Beneficial Owners and
Management </B></P>
<P align=justify style="text-indent:5%">The following table sets forth
information known to us with respect to the beneficial ownership of our Common
Stock as of the close of business on July 8, 2016 (the &#147;Reference Date&#148;) for:
(i) each person known by us to beneficially own more than 5% of our voting
securities, (ii) each named executive officer, (iii) each of our directors and
nominees, and (iv) all of our named executive officers and directors as a group:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center><B>Names of Management and Names</B>
    </TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="27%" colSpan=4><B>Amount and
      Nature of</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center><B>of Certain Beneficial Owners </B><SUP>(1)</SUP> </TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="27%" colSpan=4><B>Beneficial Ownership
      </B><SUP>(1)</SUP> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="12%"><B>Number </B><SUP>(2)</SUP> </TD>
    <TD vAlign=bottom noWrap align=center width="2%"></TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="12%"><B>Percent </B><SUP>(3)</SUP> </TD>
    <TD vAlign=bottom noWrap align=center width="2%"><SUP></SUP></TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Yunfei Li <SUP>(4)</SUP> </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>3,012,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>17.4% </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>J. Simon Xue <SUP>(5)</SUP>
    </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>0 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>* </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Martha C. Agee </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>12,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>* </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Jianjun He </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>12,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>* </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Guosheng Wang </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>12,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>* </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>All executive officers and
      directors as a group (5 persons) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>3,050,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>17.6% </TD>
    <TD vAlign=bottom align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>* </TD>
    <TD align=left width="95%">Denotes less than 1% of the outstanding shares
      of Common Stock. </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>The number of shares beneficially owned is determined
      under SEC rules, and the information is not necessarily indicative of
      beneficial ownership for any other purpose. Under those rules, beneficial
      ownership includes any shares as to which the individual has sole or
      shared voting power or investment power, and also any shares which the
      individual has the right to acquire within 60 days of the Reference Date,
      through the exercise or conversion of any stock option, convertible
      security, warrant or other right (a &#147;Presently Exercisable&#148; security).
      Including those shares in the table does not, however, constitute an
      admission that the named stockholder is a direct or indirect beneficial
      owner of those shares.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Unless otherwise indicated, each person or entity named
      in the table has sole voting power and investment power (or shares that
      power with that person&#146;s spouse) with respect to all shares of Common
      Stock listed as owned by that person or entity.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>A total of 17,287,994 shares of Common Stock are
      considered to be outstanding on the Reference Date. For each beneficial
      owner above, any Presently Exercisable securities of such beneficial owner
      have been included in the denominator, pursuant to Rule 13d-3(d)(1) under
      the Securities Exchange Act of 1934, as amended, or the Exchange
    Act.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Including 12,500 vested restricted shares which have been
      issued to Mr. Li. On June 30, 2015, Mr. Li was granted an aggregate of
      30,000 restricted shares under China BAK Battery, Inc. 2015 Equity
      Incentive Plan, which vest over a three year period in 12 equal quarterly
      installments with the first vesting on June 30,
2015.</P></TD></TR></TABLE>
<P align=justify><B>Changes in Control </B></P>
<P align=justify style="text-indent:5%">There are no arrangements known
to us, including any pledge by any person of our securities, the operation of
which may at a subsequent date result in a change in control of the Company.
</P>
<P align=center>6 </P>
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<P align=center><B>PROPOSAL 1. - ELECTION OF DIRECTORS </B></P>
<P align=justify style="text-indent:5%">Our Board of Directors is
responsible for establishing broad corporate policies and monitoring the overall
performance of the Company. It selects the Company&#146;s executive officers,
delegates authority for the conduct of the Company&#146;s day-to-day operations to
those officers, and monitors their performance. Members of the Board of
Directors are kept informed of the Company&#146;s business by participating in Board
of Directors and Committee meetings, by reviewing analyses and reports, and
through discussions with the Chairman and other officers. </P>
<P align=justify style="text-indent:5%">Effective December 8, 2006,
Article V of our articles of incorporation was amended so that the number of our
directors shall be determined in accordance with our Bylaws instead of in
accordance with provisions contained in our articles of incorporation. At the
Annual Meeting, five (5) directors will be elected, each to hold office until
the next annual meeting of stockholders or his or her earlier death or
resignation or until his or her successor, if any, is elected or appointed. The
individuals who have been nominated for election to the Board of Directors at
the Annual Meeting are listed in the table below. Each of the nominees is a
current director of the Company. </P>
<P align=justify style="text-indent:5%">If, as a result of circumstances
not now known or foreseen, any of the nominees is unavailable to serve as a
nominee for the office of Director at the time of the Annual Meeting, the
holders of the proxies solicited by this Proxy Statement may vote those proxies
either (i) for the election of a substitute nominee who will be duly designated
by the proxy holders or by the present Board of Directors or (ii) for the
balance of the nominees, leaving a vacancy. Alternatively, the size of the Board
may be reduced accordingly. The Board of Directors has no reason to believe that
any of the nominees will be unwilling or unable to serve, if elected as a
Director. To be elected, each of the five nominees proposed for election as
directors at the Annual Meeting must receive at least a plurality of the votes
cast at the Annual Meeting. </P>
<P align=justify style="text-indent:5%"><B>Director Selection </B></B></P>
<P align=justify style="text-indent:5%">There have been no material
changes to the procedures by which stockholders may recommend nominees to our
Board of Directors since such procedures were last disclosed. As provided in its
Charter, the Nominating and Corporate Governance Committee of the Company&#146;s
Board of Directors is responsible for identifying individuals qualified to
become Board members and recommending to the Board nominees for election as
directors. The Nominating and Corporate Governance Committee considers
recommendations for director nominees, including those submitted by the
Company&#146;s stockholders, on the bases described below. Stockholders may recommend
nominees by writing to the Nominating and Corporate Governance Committee c/o the
Secretary at BAK Industrial Park, Meigui Street, Huayuankou Economic Zone,
Dalian City, 116450, China; via email at IR@cbak.com.cn; or via fax at
(86)411-39185980. Stockholder recommendations will be promptly provided to the
chairman of the Nominating and Corporate Governance Committee. To be considered
by the Nominating and Corporate Governance Committee for inclusion in the proxy
for the 2017 annual meeting, recommendations must be received by the Secretary
of the Company not later than the close of business on December 31, 2016. </P>
<P align=justify style="text-indent:5%">In identifying and evaluating
nominees, the Nominating and Corporate Governance Committee may consult with the
other Board members, management, consultants, and other individuals likely to
possess an understanding of the Company&#146;s business and knowledge of suitable
candidates. In making its recommendations, the Nominating and Corporate
Governance Committee assesses the requisite skills and qualifications of
nominees and the composition of the Board as a whole in the context of the
Board's criteria and needs. In evaluating the suitability of individual Board
members, the Nominating and Corporate Governance Committee may take into account
many factors, including general understanding of marketing, finance and other
disciplines relevant to the success of a publicly traded company in today&#146;s
business environment; understanding of the Company&#146;s business and technology;
the international nature of the Company&#146;s operations; educational and
professional background; and personal accomplishment. The Nominating and
Corporate Governance Committee evaluates each individual in the context of the
Board as a whole, with the objective of recommending a group that can best
perpetuate the success of the Company&#146;s business and represent stockholder
interests through the exercise of sound judgment, using its diversity of
experience. The Nominating and Corporate Governance Committee also ensures that
a majority of nominees would be &#147;independent directors&#148; as defined under the
applicable rules of the SEC and The NASDAQ Stock Market LLC (&#147;NASDAQ&#148;). For a
description of the qualifications that the Nominating and Corporate Governance Committee seeks in potential nominees, please see
&#147;Nominees &#150; Qualifications for All Directors&#148; below. </P>
<P align=center>7 </P>
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<P align=justify style="text-indent:5%">The names, the positions with the
Company and the ages as of the Record Date of the individuals who are our
nominees for election as directors are: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center>Name </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="15%">Age </TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="26%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Position/s </TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="26%">Director Since </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Yunfei Li </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="15%" bgColor=#e6efff>49 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="26%" bgColor=#e6efff>Chairman, President and Chief
      Executive Officer </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="26%" bgColor=#e6efff>March 2016 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Jianjun He </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="15%">44 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="26%">Director </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="26%">November 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>J. Simon Xue </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="15%" bgColor=#e6efff>62 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="26%" bgColor=#e6efff>Director </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="26%" bgColor=#e6efff>February 2016 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Martha C. Agee </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="15%">61 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="26%">Director </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="26%">November 2012 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Guosheng Wang </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="15%" bgColor=#e6efff>44 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="26%" bgColor=#e6efff>Director </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="26%" bgColor=#e6efff>August 2014
</TD></TR></TABLE>
<P align=justify><B>Director Qualifications </B></P>
<P align=justify><B><I>Qualifications, Attributes, Skills and Experience to be
Represented on the Board of Directors as a Whole</I></B> </P>
<P align=justify style="text-indent:5%">In its assessment of each
potential candidate, including those recommended by stockholders, the Nominating
and Corporate Governance Committee considers the nominee&#146;s judgment, integrity,
experience, independence, understanding of the Company&#146;s business or other
related industries and such other factors the Nominating and Corporate
Governance Committee determines are pertinent in light of the current needs of
the Board of Directors. The Nominating and Corporate Governance Committee also
takes into account the ability of a Director to devote the time and effort
necessary to fulfill his or her responsibilities to the Company. </P>
<P align=justify style="text-indent:5%">The Board of Directors and the
Nominating and Corporate Governance Committee require that each Director be a
recognized person of high integrity with a proven record of success in his or
her field. Each Director must demonstrate innovative thinking, familiarity with
and respect for corporate governance requirements and practices, an appreciation
of multiple cultures and a commitment to sustainability and to dealing
responsibly with social issues. In addition to the qualifications required of
all Directors, the Board assesses intangible qualities including the
individual&#146;s ability to ask difficult questions and, simultaneously, to work
collegially. </P>
<P align=justify style="text-indent:5%">The Board has identified
particular qualifications, attributes, skills and experience that are important
to be represented on the Board as a whole, in light of the Company&#146;s current
needs and business priorities. The Company&#146;s services are performed in various
countries and in significant areas of future growth located outside of the
United States. Accordingly, the Board believes that international experience or
specific knowledge of key geographic growth areas and diversity of professional
experiences should be represented on the Board. In addition, the Company&#146;s
business is multifaceted and involves complex financial transactions. Therefore,
the Board believes that the Board should include some Directors with a high
level of financial literacy and some Directors who possess relevant business
experience as a Chief Executive Officer or President. Our business involves
complex technologies in a highly specialized industry. Therefore, the Board
believes that extensive knowledge of the Company&#146;s business and industry should
be represented on the Board. </P>
<P align=justify style="text-indent:5%">The Board of Directors and the
Nominating and Corporate Governance Committee do not have a specific diversity
policy, but consider diversity of race, ethnicity, gender, age, cultural
background and professional experiences in evaluating candidates for Board
membership. Diversity is important because a variety of points of view
contribute to a more effective decision-making process. </P>
<P align=justify><B><I>Biographical Information and Summary of Qualifications of
Nominees for Director</I></B><B> </B></P>
<P align=justify style="text-indent:5%"><B><I>Yunfei Li</I></B> has
served as the chairman of our board, our president and chief executive officer
since March 1, 2016. Mr. Li has more than 20 years management experience in
industries of real estate development, battery and new energy. Since May 2014,
he has been Vice President of the Company&#146;s subsidiary, Dalian BAK Power Battery
Co., Ltd in charge of the company&#146;s construction of manufacturing facilities,
government relationship and development of new customers. From May 2010 to May
2014, Mr. Li held management positions of various new energy development and real estate development companies in
China. Prior to that, he was Director of Construction Department, Director of
Comprehensive Management Department and Assistant to President of Shenzhen BAK
Battery Co., Ltd., a former subsidiary of the Company, from March 2003 to May
2010. Mr. Li holds a Bachelor&#146;s degree in Civil Engineering from Liao Yuan
Vocational Technical College. </P>
<P align=center>8 </P>
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<P align=justify style="text-indent:5%"><U>Director Qualifications</U>:
Mr. Li has extensive senior management experience in the industry in which we
operate and has held management positions of various new energy development and
real estate development companies in China. </P>
<P align=justify style="text-indent:5%"><B><I>Jianjun He </I></B>has
served as our director since November 4, 2013. Mr. He has more than 16-year
experience in accounting and finance and is an associate member of the Chinese
Institute of Certificate Public Accounts. Mr. He has been the Managing Director
of Jilin Cybernaut Lvke Investment and Management Co., Ltd., an investment
consulting firm in China, since January 1, 2013. From June 30, 2009 to December
31, 2012, Mr. He served as the Chief Financial Officer of THT Heat Transfer
Technology, Inc. (Nasdaq: THTI) (&#147;THT Heat&#148;), a provider of heat exchangers and
heat exchange solutions in China. Mr. He was the Chief Financial Officer of
Siping City Juyuan Hanyang Plate Heat Exchanger Co. Ltd, a wholly owned
subsidiary of THT Heat from 2007 to December 2012. From 1999 to 2007, Mr. He
worked as senior financial officer in Jilin Grain Group, a state-owned
enterprise engaged in the grain processing and trading business. Mr. He
graduated from Changchun Taxation College in 1995 with a Bachelor&#146;s degree in
Auditing and obtained a Master&#146;s degree from Jilin University in 2005. </P>
<P align=justify style="text-indent:5%"><U>Director Qualifications</U>:
Mr. He has a rich knowledge in accounting and corporate finance. He also has
more than three years&#146; experience acting as CFO of a Nasdaq listed company. </P>
<P align=justify style="text-indent:5%"><B><I>J. Simon Xue </I></B>has
served as our director since February 1, 2016. Dr. Xue has approximately 40
years experience in nuclear chemistry, solid state chemistry, superconductivity
and materials for Lithium ion batteries. Within his research career, he has
spent 21 years in the research and development of Lithium ion battery. Dr. Xue
is currently the Senior Director of National Institute for Low-&amp;-Clean
Energy in China and a member of National &#147;Thousand Talent&#148; Plan and a member of
Expert Committee for &#147;Chinese Industrial Association of Power Sources.&#148; Prior to
that, Dr. Xue was a director of Altair Nanotechnologies Inc., a Delaware
company, between August 2011 and April 2012. From 2010 to 2011, he served as the
chief executive officer of Yintong Energy Co., Ltd., a subsidiary of Canon
Investment Holdings Ltd. Dr. Xue has also held positions at Ultralife, Duracell,
B&amp;K Electronics Co., Ltd., Valence Energy-Tech (Suzhou) Co., A123 Systems
Inc. and International Battery Inc. He enjoys an extensive reputation in the
whole product chain of lithium ion battery in China, including materials,
equipment, cell manufacturing and testing. He has authored or co-authored over
50 scientific articles, 12 patents relevant to battery chemistry and materials
and participated, presented and hosted more than 30 battery or material related
international conferences. Dr. Xue completed his Ph.D. program in Solid State
Chemistry in McMaster University in 1992. </P>
<P align=justify style="text-indent:5%"><U>Director Qualifications</U>:
Dr. Xue, Chair of the Compensation Committee, has approximately 40 years
experience in nuclear chemistry, solid state chemistry, superconductivity and
materials for Lithium ion batteries. Within his research career, he has spent 21
years in the research and development of Lithium ion battery. </P>
<P align=justify style="text-indent:5%"><B><I>Martha C. Agee </I></B>has
served as our director since November 15, 2012. Since 1997, Ms. Agee has been a
senior lecturer of business law at Hankamer School of Business of Baylor
University where she teaches courses in the Legal Environment of Business,
International Business Law, and Healthcare Law &amp; Ethics for graduate and
undergraduate students. Prior to that, Ms. Agee practiced law from 1988 to 1996.
Ms. Agee obtained her bachelor&#146;s degree in Accounting in 1976 and Juris
Doctorate degree in 1988 from Baylor University. </P>
<P align=justify style="text-indent:5%"><U>Director Qualifications</U>:
Ms. Agee, Chair of the Audit Committee, was previously Certified Public
Accountant, worked as Chief Accountant for a political sub-division for five and
a half years and worked as Supervisor of Accounting for a large retail chain
with the responsibilities included hiring, training, and supervision of
accounting staff; preparation and analysis of 17 monthly financial statements
and quarterly consolidated financial statements; budgeting, and internal
auditing. </P>
<P align=center>9 </P>
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<P align=justify style="text-indent:5%"><B><I>Guosheng Wang </I></B>has
served as our director since August 1, 2014. Since June 2014, Mr. Wang has been
in charge of the construction of facilities of the Company&#146;s subsidiary, Dalian
BAK Power Battery Co., Ltd (&#147;Dalian BAK&#148;) and the relocation of assets and
equipment of BAK International (Tianjin) Limited (&#147;BAK Tianjin&#148;) to Dalian BAK.
Prior to that, Mr. Wang served as vice president of operations of BAK Tianjin
since May 2013, where he was managing the Quality Department, Purchase
Department, Equipment Department and HR Department. From May 2010 to May 2013,
Mr. Wang served as manager of Equipment Department of BAK Tianjin. From March
2008 to May 2010, he served as Director of No. 1 Manufacture Department of BAK
Tianjin. Mr. Wang began his career working as an engineer at Harbin Railway
Transportation Equipment Co., Ltd in 1994. Mr. Wang obtained his bachelor&#146;s
degree in mechanical manufacturing engineering and equipment from Lanzhou
Jiaotong University in July 1994. </P>
<P align=justify style="text-indent:5%"><U>Director Qualifications</U>:
Having served with the Company since 2003, Mr. Wang brings to the Board of
Directors extensive experience in all aspects of our business and industry and
strong management and technical skills. </P>
<P align=justify style="text-indent:5%">Each director holds office until
the earlier of his or her death, resignation, removal from office by the
stockholders, or his or her respective successor is duly elected and qualified.
There are no arrangements or understandings between any of our nominees or
directors and any other person pursuant to which any of our nominees or
directors have been selected for their respective positions. No nominee or
director is related to any executive officer or any other nominee or
director.<B> </B></P>
<P align=justify style="text-indent:5%">No director of the Company is a
party adverse to the Company or any of its subsidiaries or has a material
interest adverse to the Company or any of its subsidiaries. There are no family
relationships among our directors or officers. </P>
<P align=justify style="text-indent:5%">Other than as described above, no
director has held any directorship during the past five years with any other
public company. </P>
<P align=justify style="text-indent:5%">For information as to the shares
of the Common Stock held by each nominee, see &#147;Securities Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters &#150; Securities
Ownership of Certain Beneficial Owners and Management.&#148; </P>
<P align=justify style="text-indent:5%"> Involvement in Certain Legal
Proceedings </B></P>
<P align=justify style="text-indent:5%">None of our directors or executive
officers has, during the past ten years: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>been convicted in a criminal proceeding or been subject
      to a pending criminal proceeding (excluding traffic violations and other
      minor offences); </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>had any bankruptcy petition filed by or against the
      business or property of the person, or of any partnership, corporation or
      business association of which he was a general partner or executive
      officer, either at the time of the bankruptcy filing or within two years
      prior to that time; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>been subject to any order, judgment, or decree, not
      subsequently reversed, suspended or vacated, of any court of competent
      jurisdiction or federal or state authority, permanently or temporarily
      enjoining, barring, suspending or otherwise limiting, his involvement in
      any type of business, securities, futures, commodities, investment,
      banking, savings and loan, or insurance activities, or to be associated
      with persons engaged in any such activity; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>been found by a court of competent jurisdiction in a
      civil action or by the Securities and Exchange Commission or the Commodity
      Futures Trading Commission to have violated a federal or state securities
      or commodities law, and the judgment has not been reversed, suspended, or
      vacated; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>been the subject of, or a party to, any federal or state
      judicial or administrative order, judgment, decree, or finding, not
      subsequently reversed, suspended or vacated (not including any settlement
      of a civil proceeding among private litigants), relating to an alleged
      violation of any federal or state securities or commodities law or
      regulation, any law or regulation respecting financial institutions or
      insurance companies including, but not limited to, a temporary or
      permanent injunction, order of disgorgement or restitution, civil money
      penalty or temporary or permanent cease-and-desist order,
  or removal or prohibition order, or any law or regulation
      prohibiting mail or wire fraud or fraud in connection with any business
    entity; or </P></TD></TR></TABLE>
<P align=center>10 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>been the subject of, or a party to, any sanction or
      order, not subsequently reversed, suspended or vacated, of any self-
      regulatory organization (as defined in Section 3(a)(26) of the Exchange
      Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section
      1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any
      equivalent exchange, association, entity or organization that has
      disciplinary authority over its members or persons associated with a
      member. </P></TD></TR></TABLE>
<P align=justify><B>Director Independence</B> </P>
<P align=justify style="text-indent:5%">Our Board of Directors has
determined that each of our non-employee directors, Dr. Xue, Ms. Agee and Mr.
He, is an &#147;independent director&#148; as defined by the applicable rules of the SEC
and NASDAQ. Each of our non-employee directors serves on the Board&#146;s committees,
and therefore all of the members of our board committees are independent as
defined under the NASDAQ listing standards and by the SEC. There were and are no
transactions, relationships or arrangements not otherwise disclosed in this
Proxy Statement that were considered by the Board of Directors under the
applicable independence definitions in determining that each of these directors
is independent. </P>
<P align=justify><B>Governance Structure </B></P>
<P align=justify style="text-indent:5%">Currently, our Chief Executive
Officer is also our Chairman. The Board of Directors believes that, at this
time, having a combined Chief Executive Officer and Chairman is the appropriate
leadership structure for the Company. In making this determination, the Board of
Directors considered, among other matters, Mr. Yunfei Li&#146;s experience and tenure
of having been officers of the Company since 2003, and believed that Mr. Li is
highly qualified to act as both Chairman and Chief Executive Officer due to his
experience, knowledge, and personality. Among the benefits of a combined Chief
Executive Officer/Chairman considered by the Board of Directors is that such
structure promotes clearer leadership and direction for our Company and allows
for a single, focused chain of command to execute our strategic initiatives and
business plans. </P>
<P align=justify><B>The Board of Directors&#146; Role in Risk Oversight</B> </P>
<P align=justify style="text-indent:5%">The Board of Directors oversees
that the assets of the Company are properly safeguarded, that the appropriate
financial and other controls are maintained, and that the Company&#146;s business is
conducted wisely and in compliance with applicable laws and regulations and
proper governance. Included in these responsibilities is the Board of Directors&#146;
oversight of the various risks facing the Company. In this regard, the Board of
Directors seeks to understand and oversee critical business risks. The Board of
Directors does not view risk in isolation. Risks are considered in virtually
every business decision and as part of the Company&#146;s business strategy. The
Board recognizes that it is neither possible nor prudent to eliminate all risk.
Indeed, purposeful and appropriate risk-taking is essential for the Company to
be competitive on a global basis and to achieve its objectives. </P>
<P align=justify style="text-indent:5%">While the Board oversees risk
management, Company management is charged with managing risk. The Company has
robust internal processes and a strong internal control environment to identify
and manage risks and to communicate with the Board of Directors. The Board of
Directors and the Audit Committee monitor and evaluate the effectiveness of the
internal controls and the risk management program at least annually. Management
communicates routinely with the Board of Directors, Board Committees and
individual Directors on the significant risks identified and how they are being
managed. Directors are free to, and indeed often do, communicate directly with
senior management. </P>
<P align=justify style="text-indent:5%">The Board implements its risk
oversight function both as a whole and through Committees. Much of the work is
delegated to various Committees, which meet regularly and report back to the
full Board. All Committees play significant roles in carrying out the risk
oversight function. In particular: </P>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>The Audit Committee oversees risks related to the
      Company&#146;s financial statements, the financial reporting process,
      accounting and legal matters. The Audit Committee oversees the internal
      audit function. The Audit Committee members meet separately
      with representatives of the Company&#146;s independent auditing firm; and </P></TD></TR></TABLE>
<P align=center>11 </P>
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<TABLE
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  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%">&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>The Compensation Committee evaluates the risks and
      rewards associated with the Company&#146;s compensation philosophy and
      programs. The Compensation Committee reviews and approves compensation
      programs with features that mitigate risk without diminishing the
      incentive nature of the compensation. Management discusses with the
      Compensation Committee the procedures that have been put in place to
      identify and mitigate potential risks in compensation. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%">&#149; </TD>
    <TD align=left width="85%">
      <P align=justify>The Nominating and Corporate Governance Committee
      evaluates risk associated with management decisions and strategic
      direction and reports concerns to the full Board. In addition, this
      committee evaluates the performance of independent directors and makes
      suggestions to the full Board concerning director qualifications and
      number of independent directors. The committee also oversees the Company&#146;s
      ethics programs, including the Code of Business Ethics and Conduct.
  </P></TD></TR></TABLE>
<P align=justify><B>Required Vote </B></P>
<P align=justify style="text-indent:5%">To be elected, each nominee for
director must receive at least a plurality of the votes cast at the Annual
Meeting (assuming a quorum is present) with respect to that nominee&#146;s election.
Abstentions and broker &#147;non-votes&#148; will not be counted as a vote cast with
respect to a nominee. </P>
<P align=justify><B>Recommendation of the Board of Directors </B></P>
<P align=justify style="text-indent:5%">The Board of Directors recommends a
vote FOR the election of the nominees set forth in Proposal 1. </P>
<P align=center><B>COMMITTEES OF THE BOARD OF DIRECTORS </B></P>
<P align=justify><B>Committees and Meetings</B> </P>
<P align=justify style="text-indent:5%">Our Board of Directors currently
has three standing Committees which, pursuant to delegated authority, perform
various duties on behalf of and report to the Board: (i) Audit Committee, (ii)
Compensation Committee and (iii) Nominating and Corporate Governance Committee.
Each of the three standing Committees is comprised entirely of independent
directors as that term is defined under the NASDAQ listing standards applicable
to each of these committees. From time to time, the Board may establish other
committees. </P>
<P align=justify style="text-indent:5%">During the fiscal year ended
September 30, 2015, the Board held a total of six meetings. Each director
attended 100% of the total number of meetings of the Board and 100% of the
meetings of all Committees on which he or she served. We do not have a policy
requiring Board members to attend the annual meeting of our stockholders. Two
members of the Board attended our 2015 annual meeting of stockholders. </P>
<P align=justify style="text-indent:5%">Each of the Charters of our
Audit, Compensation and Nominating and Corporate Governance Committees contains
a definition for determining whether members of the respective Committee are
independent for purposes of that committee. Current copies of these Charters are
posted on our Internet website at www.cbak.com.cn. </P>
<P align=justify><B>Audit Committee</B> </P>
<P align=justify style="text-indent:5%">Our Audit Committee consists of
three members: Martha C. Agee, J. Simon Xue and Jianjun He. Pursuant to the
determination of our Board of Directors, Ms. Agee serves as the chair of the
Audit Committee and as our Audit Committee financial expert as that term is
defined by the applicable SEC rules. Each director who has served or is serving
on our Audit Committee was or is &#147;independent&#148; as that term is defined under the
NASDAQ listing rules for Audit Committee members at all times during their
service on such Committee. </P>
<P align=justify style="text-indent:5%">The Audit Committee, which was
established in accordance with Section 3(a)(58)(A) of the Exchange Act, oversees
our accounting and financial reporting processes and the audits of the financial
statements of our company. During the fiscal year ended September 30, 2015, the
Audit Committee held four meetings, in compliance with its Charter. The Audit
Committee is responsible for, among other things: </P>
<P align=center>12 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>the appointment, compensation, retention and oversight of
      the work of the independent auditor; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and pre-approving all auditing services and
      permissible non-audit services (including the fees and terms thereof) to
      be performed by the independent auditor; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and approving all proposed related-party
      transactions; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>discussing the interim and annual financial statements
      with management and our independent auditors; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and discussing with management and the
      independent auditor (a) the adequacy and effectiveness of the Company&#146;s
      internal controls, (b) the Company&#146;s internal audit procedures, and (c)
      the adequacy and effectiveness of the Company&#146;s disclosure controls and
      procedures, and management reports thereon; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing reported violations of the Company&#146;s code of
      conduct and business ethics; and </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and discussing with management and the
      independent auditor various topics and events that may have significant
      financial impact on the Company or that are the subject of discussions
      between management and the independent auditors. </P></TD></TR></TABLE>
<P align=justify><B>Compensation Committee</B> </P>
<P align=justify style="text-indent:5%">Our Compensation Committee
consists of three members: Martha C. Agee, J. Simon Xue and Jianjun He, with Dr.
Xue serving as chair. Each director who has served or is serving on our
Compensation Committee was or is &#147;independent&#148; as that term is defined under the
NASDAQ listing rules at all times during their service on such Committee. The
Compensation Committee held two meetings during the fiscal year ended September
30, 2015. </P>
<P align=justify style="text-indent:5%">The purpose of our Compensation
Committee is to discharge the responsibilities of the Company&#146;s Board of
Directors relating to compensation of the Company&#146;s executives, to produce an
annual report on executive compensation for inclusion in the Company&#146;s proxy
statement, if required, and to oversee and advise the Board on the adoption of
policies that govern the Company&#146;s compensation programs, including stock and
benefit plans. Our chief executive officer may not be present at any
Compensation Committee meeting during which his compensation is deliberated. The
Compensation Committee is responsible for, among other things: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and approving the compensation structure for
      corporate officers at the level of corporate vice president and above;
    </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>overseeing an evaluation of the performance of the
      Company&#146;s executive officers and approve the annual compensation,
      including salary, bonus, incentive and equity compensation, for the
      executive officers; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and approving chief executive officer goals and
      objectives, evaluate chief executive officer performance in light of these
      corporate objectives, and set chief executive officer compensation
      consistent with Company philosophy; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>making recommendations to the Board regarding the
      compensation of board members; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>reviewing and making recommendations concerning long-term
      incentive compensation plans, including the use of equity-based plans.
      Except as otherwise delegated by the Board of Directors, the Compensation
      Committee will act on behalf of the Board of Directors as the &#147;Committee&#148;
      established to administer equity-based and employee benefit plans, and as
      such will discharge any responsibilities imposed on the Compensation
      Committee under those plans, including making and authorizing grants, in
      accordance with the terms of those plans. </P></TD></TR></TABLE>
<P align=justify><B>Nominating and Corporate Governance Committee</B> </P>
<P align=justify style="text-indent:5%">Our Nominating and Corporate
Governance Committee consists of three members: Martha C. Agee, J. Simon Xue and
Jianjun He, with Mr. He serving as chair. Each director who has served or is
serving on our Nominating and Corporate Governance Committee was or is
&#147;independent&#148; as that term is defined under the NASDAQ listing standards at all
times during their service on such Committee. The Nominating and Corporate
Governance Committee held one meeting during the fiscal year ended September 30,
2015. </P>
<P align=justify style="text-indent:5%">The purpose of the Nominating and
Corporate Governance Committee is to determine the slate of director nominees
for election to the Company&#146;s Board of Directors, to identify and recommend
candidates to fill vacancies occurring between annual shareholder meetings, and
to review the Company&#146;s policies and programs that relate to matters of corporate responsibility, including public issues of
significance to the Company and its members. The Nominating and Corporate
Governance Committee is responsible for, among other things: </P>
<P align=center>13 </P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>annually presenting to the Board a list of individuals
      recommended for nomination for election to the Board at the annual meeting
      of stockholders, and for appointment to the committees of the Board;
    </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>annually reviewing the composition of each committee and
      present recommendations for committee memberships to the Board as needed;
      and </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>annually evaluating and reporting to the Board of
      Directors on the performance and effectiveness of the Board of Directors
      to facilitate the directors fulfillment of their responsibilities in a
      manner that serves the interests of the Company&#146;s shareholders.
  </P></TD></TR></TABLE>
<P align=justify><B>Code of Business Ethics and Conduct </B></P>
<P align=justify style="text-indent:5%">We have adopted a Code of
Business Ethics and Conduct relating to the conduct of our business by our
employees, officers and directors. We intend to maintain the highest standards
of ethical business practices and compliance with all laws and regulations
applicable to our business, including those relating to doing business outside
the United States. During the fiscal year ended September 30, 2015, there were
no amendments to or waivers of our Code of Business Ethics and Conduct. If we
effect an amendment to, or waiver from, a provision of our Code of Business
Ethics and Conduct, we intend to satisfy our disclosure requirements by posting
a description of such amendment or waiver on our Internet website at
www.bak.com.cn or via a current report on Form 8-K. A current copy of our Code
of Business Ethics and Conduct is posted on our Internet website at
www.cbak.com.cn. </P>
<P align=center>14 </P>
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<P align=center><B>REPORT OF THE AUDIT COMMITTEE </B><BR><B>FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2015 </B></P>
<P align=justify style="text-indent:5%">The Audit Committee of the Board
is comprised of three non-employee Directors, each of whom has been determined
by the Board to be &#147;independent&#148; meeting the independence requirements of the
Listing Rules of NASDAQ and the SEC. The Board has determined, based upon an
interview of Martha Agee and a review of Ms. Agee&#146;s responses to a questionnaire
designed to elicit information regarding her experience in accounting and
financial matters, that Ms. Agee shall be designated as an &#147;Audit Committee
financial expert&#148; within the meaning of Item 401(e) of SEC Regulation S-K, as
Ms. Agee has past employment experience in finance or accounting, requisite
professional certification in accounting, or any other comparable experience or
background which results in her financial sophistication. The Audit Committee
assists the Board&#146;s oversight of the integrity of the Company&#146;s financial
reports, compliance with legal and regulatory requirements, the qualifications
and independence of the Company&#146;s independent registered public accounting firm,
the audit process, and internal controls. The Audit Committee operates pursuant
to a written charter adopted by the Board. The Audit Committee is responsible
for overseeing the corporate accounting and financing reporting practices,
recommending the selection of the Company&#146;s registered public accounting firm,
reviewing the extent of non-audit services to be performed by the auditors, and
reviewing the disclosures made in the Company&#146;s periodic financial reports. The
Audit Committee also reviews and recommends to the Board that the audited
financial statements be included in the Company&#146;s Annual Report on Form 10-K.
</P>
<P align=justify style="text-indent:5%">Following the end of the fiscal
year ended September 30, 2015, the Audit Committee (1) reviewed and discussed
the audited financial statements for the fiscal year ended September 30, 2015
with Company management; (2) discussed with the independent auditors the matters
required to be discussed by Statement on Auditing Standards No. 61, as amended
(AICPA, Professional Standards , Vol. 1. AU section 380), as adopted by the
PCAOB in Rule 3200T; and (3) received the written disclosures and the letters
from the independent accountants required by applicable requirements of the
PCAOB regarding the independent accountants&#146; communications with the Audit
Committee concerning independence, and has discussed with the independent
accountants their independence. </P>
<P align=justify style="text-indent:5%">Based on the review and
discussions referred to above, the Audit Committee had recommended to the Board
that the audited financial statements be included in the Company&#146;s Annual Report
on Form 10-K for the fiscal year ended September 30, 2015 for filing with the
SEC. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>/s/ The Audit
      Committee </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Martha C. Agee, Chair </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>J. Simon Xue </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Jianjun He </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR></TABLE>
<P align=center>15 </P>
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<P align=center><B>EXECUTIVE COMPENSATION </B></P>
<P align=justify><B>Summary Compensation Table</B> </P>
<P align=justify style="text-indent:5%">The following table sets forth
information concerning all compensation awarded to, earned by or paid to
Xiangqian Li, our former Chief Executive Officer for services rendered in all
capacities during fiscal years 2015 and 2014. No other executive officers
received total compensation in excess of $100,000 in either fiscal year. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">Stock </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%"
>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">Awards </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">Option </TD>
    <TD vAlign=bottom noWrap align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%"
>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
      align=left>Name and Principal Position </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="8%">Year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="8%">Salary ($)<SUP>(1)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="2%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="8%">($) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="8%">Awards ($) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="8%">Total ($) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Xiangqian Li, former
      President and Chief Executive Officer </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>2015 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>21,214 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff><B>-</B> </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>21,214 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2014 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">39,044 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%"><B>-</B> </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">39,044 </TD>
    <TD vAlign=bottom align=left width="2%"
>&nbsp;</TD></TR></TABLE>
<P align=justify>(1) The amounts reported in this table have been converted from
RMB to U.S. dollars based on the average conversion rate between the U.S. dollar
and RMB for the applicable fiscal year, or $1.00 to RMB 6.2224 (fiscal year 2015
exchange rate), $1.00 to RMB6.1469 (fiscal year 2014 exchange rate). </P>
<P align=justify><B>Summary of Employment Agreements</B> </P>
<P align=justify style="text-indent:5%">The base salary shown in the
Summary Compensation Table is described in each named executive officer&#146;s
respective employment agreement. The material terms of those employment
agreements are summarized below. </P>
<P align=justify style="text-indent:5%">We entered into employment
agreements with three-year initial terms with our named executive officers with
standard employment agreements. We entered into the employment agreements with
Mr. Xiangqian Li and Mr. Wenwu Wang on October 1, 2014 and September 30, 2014,
respectively. Each of our standard employment agreements is automatically
extended by a year at the expiration of the initial term and at the expiration
of every one-year extension, until terminated in accordance with the termination
provisions of the agreements, which are described below. </P>
<P align=justify style="text-indent:5%">Our standard employment agreement
permits us to terminate the executive&#146;s employment for cause, at any time,
without notice or remuneration, for certain acts of the executive, including but
not limited to a conviction or plea of guilty to a felony, negligence or
dishonesty to our detriment and failure to perform agreed duties after a
reasonable opportunity to cure the failure. An executive may terminate his
employment upon one month&#146;s written notice if there is a material reduction in
his authority, duties and responsibilities or if there is a material reduction
in his annual salary before the next annual salary review. Furthermore, we may
terminate the executive&#146;s employment at any time without cause by giving one
month&#146;s advance written notice to the executive officer. If we terminate the
executive&#146;s employment without cause, the executive will be entitled to a
termination payment of up to three months of his or her then base salary,
depending on the length of such executive&#146;s employment with us. Specifically,
the executive will receive salary continuation for: (i) one month following a
termination effective prior to the first anniversary of the effective date of
the employment agreement; (ii) two months following a termination effective
prior to the second anniversary of the effective date; and (iii) three months
following a termination effective prior to or any time after the third
anniversary of the effective date. The employment agreements provide that the
executive will not participate in any severance plan, policy, or program of the
Company. </P>
<P align=justify style="text-indent:5%">Our standard employment agreement
contains customary non-competition, confidentiality, and non-disclosure
covenants. Each executive officer has agreed to hold, both during and after the
employment agreement expires or is earlier terminated, in strict confidence and
not to use, except as required in the performance of his duties in connection
with the employment, any confidential information, technical data, trade secrets
and know-how of our company or the confidential information of any third party,
including our affiliated entities and our subsidiaries, received by us. The executive officers have also
agreed to disclose in confidence to us all inventions, designs and trade secrets
which they conceive, develop or reduce to practice and to assign all right,
title and interest in them to us. In addition, each executive officer has agreed
to be bound by non-competition restrictions set forth in his or her employment
agreement. Specifically, each executive officer has agreed not to, while
employed by us and for a period of one year following the termination or
expiration of the employment agreement, </P>
<P align=center>16 </P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&#149; </TD>
    <TD align=left width="85%">approach our clients, customers or contacts or
      other persons or entities, and not to interfere with the business
      relationship between us and such persons and/or entities; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&#149; </TD>
    <TD align=left width="85%">assume employment with or provide services as a
      director for any of our competitors, or engage in any business which is in
      direct or indirect competition with our business; or </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&#149; </TD>
    <TD align=left width="85%">solicit the services of any of our employees.
    </TD></TR></TABLE>
<P align=justify><B>Outstanding Equity Awards at Fiscal Year-End 2015 </B></P>
<P align=justify style="text-indent:5%">The following table sets forth
information concerning the fiscal 2015 year-end value of restricted shares
granted to our Interim Chief Financial Officer, Wenwu Wang. No other executive
officers received unexercised options or stock that has not vested or equity
incentive plan awards that remained outstanding as of the end of the fiscal year
2015. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    noWrap align=left colSpan=10><B>OUTSTANDING EQUITY AWARDS AT FISCAL
      YEAR-END</B> </TD></TR>
  <TR>
    <TD
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
  <TD width="10%"
    noWrap bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">Option </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">Stock </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
  <TD width="10%"
    align=left bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">Awards </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">Awards </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
  <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp;
    </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="10%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Name </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Number of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Number of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Equity </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Option </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Option </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Number </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Market </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Equity </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Equity </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">securities </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">securities </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">incentive </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">exercise </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">expiration </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">of&nbsp;&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">value of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">incentive </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">incentive </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">underlying </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">underlying </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">plan </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">price ($) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">date </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">shares or </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">shares or </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">plan </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">plan </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unexercised </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unexercised&nbsp;&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">awards: </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">units of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">units of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">awards: </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">awards: </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">options (#) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">options (#) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Number of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">stock that </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">stock that </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Number </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">Market or </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">exercisable </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unexercisable </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">securities&nbsp;&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">have not </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">have not </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">of </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">payout </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">underlying </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">vested (#) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">vested (#) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unearned </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">value of </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unexercised </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">shares, </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unearned </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">unearned </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">units or </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">shares, </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">options (#) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">other </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">units or </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">rights that </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">other </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">have not </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">rights that </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">vested (#) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left width="10%">have not </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="10%">vested ($) </TD></TR>
  <TR>
    <TD bgcolor="#e6efff"
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp;
    </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD>
    <TD
    width="10%" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">Wenwu Wang </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">-- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">41,667* </TD>
    <TD width="10%"
    align=left bgcolor="#e6efff"
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">107,640 </TD></TR></TABLE>
<P align=justify>* On June 30, 2015, our Interim Chief Financial Officer, Wenwu
Wang was granted 50,000 restricted shares of the Company&#146;s common stock, par
value $0.001, under the 2015 Equity Incentive Plan (the &#147;2015 Plan&#148;). The
restricted shares vest over a three year period in 12 equal quarterly
installments with the first vesting date on June 30, 2015. </P>
<P align=justify><B>Compensation of Directors</B> </P>
<P align=justify style="text-indent:5%">Under our Compensation Plan for
Non-Employee Directors (the &#147;Directors Plan&#148;), each eligible non-employee
director of the Company may receive an annual retainer fee. Pursuant to the
Directors Plan, the annual retainer fee under the Directors Plan is subject to
adjustments determined by our Board from time to time. Each independent director
is also eligible to be granted 5,000 restricted shares of our common stock for
serving as a director. </P>
<P align=center>17 </P>
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<P align=justify style="text-indent:5%">In December 2010, our Board of
Directors unanimously approved a change in the annual retainer fee for
independent directors in accordance with the Directors Plan. Effective January
1, 2011, our independent directors will be paid an annual retainer fee of
$45,000. As was previously our policy, the chair of the Audit Committee will
continue to receive an additional $5,000 in recognition of the added
responsibility of this position. In connection with this change, the Board
unanimously determined that the independent directors will no longer receive an
annual issuance of restricted shares under the Directors Plan. Each of the
independent directors has waived all rights to such annual issuances, including
with respect to 2,500 of the shares that were to be issued to each of the
independent directors during calendar year 2011 in connection with their grants
on July 1, 2010. </P>
<P align=justify style="text-indent:5%">Effective October 1, 2012, each
of our independent directors will be paid an annual retainer fee of $61,000. The
chair of the Audit Committee will receive an additional $9,000 in recognition of
the added responsibility of this position. </P>
<P align=justify style="text-indent:5%">In June 2013, due to the
financial situation of the Company, each of the independent directors agreed to
reduce their annual retainer fee to $20,000, effective from the quarter ended
June 30, 2013. </P>
<P align=justify style="text-indent:5%">On June 30, 2015, each of our
independent directors was granted 30,000 restricted shares of the Company&#146;s
Common Stock under the 2015 Plan. The restricted shares vest over a three year
period in 12 equal quarterly installments with the first vesting date on June
30, 2015. </P>
<P align=justify style="text-indent:5%">The following table sets forth
the total compensation earned by our non-employee directors during our fiscal
year ended September 30, 2015: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">Fees Earned </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">or </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Name </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="10%">Paid in </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="10%">Stock </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="10%">Total ($) </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="10%">Cash ($) </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="10%">Awards ($) </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Chunzhi Zhang (former
      director) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>20,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>32,616 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>52,616 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Martha C. Agee </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">20,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">32,616 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">52,616 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Jianjun He </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>20,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>32,616 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>52,616 </TD>
    <TD vAlign=bottom align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify style="text-indent:5%">We do not maintain a medical, dental
or retirement benefits plan for the directors. </P>
<P align=justify style="text-indent:5%">Except as disclosed in this
annual report, we have not compensated, and will not compensate, our
non-independent directors for serving as our directors, although they are
entitled to reimbursements for reasonable expenses incurred in connection with
attending our board meetings. </P>
<P align=justify style="text-indent:5%">The directors may determine
remuneration to be paid to the directors with interested members of the Board
refraining from voting. The Compensation Committee will assist the directors in
reviewing and approving the compensation structure for the directors. </P>
<P align=center><B>SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</B>
</P>
<P align=justify style="text-indent:5%">Under U.S. securities laws,
directors, certain executive officers and persons beneficially owning more than
10% of our Common Stock must report their initial ownership of the Common Stock,
and any changes in that ownership, to the SEC. The SEC has designated specific
due dates for these reports. Based solely on our review of copies of such
reports filed with the SEC and written representations of our directors and
executive offers, we believe that all persons subject to reporting filed the
required reports on time in fiscal year 2015. </P>
<P align=center>18 </P>
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<P align=center><B>CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B> </P>
<P align=justify><B>Transactions with Related Persons </B></P>
<P align=justify style="text-indent:5%">We obtained a one-year banking
facilities of $18.9 million from Bank of Dandong. The banking facilities were
guaranteed by Mr. Xiangqian Li, the Company&#146;s former CEO and his wife, Ms.
Xiaoqiu Yu, and Shenzhen BAK, our former subsidiary. Mr. Li did not receive and
is not entitled to receive any consideration for the above-referenced
guarantees. We are not independently obligated to indemnify any of those
guarantors for any amounts paid by them pursuant to any guarantee. </P>
<P align=justify style="text-indent:5%">After the disposal of BAK
International and prior to the completion of construction of the new
manufacturing site in Dalian, we generated our revenues from sale of batteries
via subcontracting the production to BAK Tianjin, a former subsidiary. For the
years ended September 30, 2014 and 2015, we purchased inventories of $3.3
million and $10.5 million from BAK Tianjin. </P>
<P align=justify style="text-indent:5%">During the years ended September
30, 2014 and 2015, the Company purchased machinery and equipment from BAK
Tianjin totaled $4.3 million and $6.8 million, respectively. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; For the years ended September 30, 2014
and 2015, we generated revenue of </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">$18,030 and $1,377,004 from Shenzhen BAK,
      respectively; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">$98,459 and $1,470,579 from BAK Tianjin,
      respectively; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">nil and $17,063, respectively from Zhengzhou
      BAK Battery Co., Ltd, a company with the common director of Mr. Xiangqian
      Li, the Company&#146;s former CEO; and </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="85%">nil and $298,983, respectively from Tianjin BAK
      New Energy. </TD></TR></TABLE>
<P align=justify style="text-indent:5%">For the years ended September 30,
2014 and 2015, we purchased inventories of $19,411 and $395,593, respectively
from Tianjin BAK New Energy, a company with the common director of Mr. Li, the
Company&#146;s former CEO. </P>
<P align=justify><B>Promoters and Certain Control Persons</B> </P>
<P align=justify style="text-indent:5%">We did not have any promoters at any
time during the past five fiscal years. </P>
<P align=center>19 </P>
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<P align=center><B>PROPOSAL 2. &#150; RATIFICATION OF SELECTION OF INDEPENDENT
AUDITORS </B></P>
<P align=justify style="text-indent:5%">On January 16, 2013, the Audit
Committee appointed Crowe Horwath (HK) CPA Limited (&#147;Crowe Horwath&#148;) as the
Company&#146;s independent registered public accounting firm for the fiscal year
ended September 30, 2013. Crowe Horwath served as our company&#146;s independent
registered public accountants for fiscal years 2015, 2014 and 2013 and reported
on our company&#146;s consolidated financial statements for such years. </P>
<P align=justify style="text-indent:5%">The Audit Committee has selected
Crowe Horwath to serve as the Company&#146;s independent auditors for the fiscal year
ending on September 30, 2016. We are asking our stockholders to ratify our
company&#146;s selection of Crowe Horwath as our independent registered public
accountants at the Annual Meeting. Although ratification is not required by our
amended and restated bylaws or otherwise, the Board of Directors is submitting
the selection of Crowe Horwath to our stockholders for ratification as a matter
of good corporate governance practice. If the selection is not ratified, the
Audit Committee will consider whether it is appropriate to select another
registered public accounting firm. Even if the selection is ratified, the Audit
Committee in its discretion may select a different registered public accounting
firm at any time during the year if it determines that such a change would be in
the best interests of our company and our stockholders. </P>
<P align=justify style="text-indent:5%">One or more representatives of
Crowe Horwath are expected to be present at the Annual Meeting. They will have
an opportunity to make a statement and will be available to respond to
appropriate questions. </P>
<P align=justify><B>Independent Registered Public Accounting Firm&#146;s Fees and
Services </B></P>
<P align=justify><B><I>Audit Fees </I></B></P>
<P align=justify style="text-indent:5%">Crowe Horwath has billed us
$392,000 and $228,000 in the aggregate for the fiscal years ended September 30,
2014 and 2015, respectively for professional services rendered for the audit of
our fiscal years 2014 and 2015 annual financial statements, including reviews of
the interim financial statements included in our quarterly reports on Form 10-Q
and assistance with the Securities Act filings. </P>
<P align=justify><B><I>Audit-Related Fee</I></B><I>s </I></P>
<P align=justify style="text-indent:5%">We did not engage our principal
accountants to provide assurance or related services during the last two fiscal
years. </P>
<P align=justify><B><I>Tax Fees </I></B></P>
<P align=justify style="text-indent:5%">We did not engage our principal
accountants to provide tax compliance, tax advice or tax planning services
during the last two fiscal years. </P>
<P align=justify><B><I>All Other Fees </I></B></P>
<P align=justify style="text-indent:5%">We did not engage our principal
accountants to render services to us during the last two fiscal years, other
than as reported above. </P>
<P align=justify><B>Pre-Approval Policies and Procedures</B> </P>
<P align=justify style="text-indent:5%">All auditing services and
permitted non-audit services (including the fees and terms thereof) to be
performed for the Company by our independent auditor must be approved by the
Audit Committee in advance, except non-audit services (other than review and
attestation services) if such services fall within exceptions established by the
SEC. The Audit Committee will pre-approve any permissible non-audit services to
be provided by the Company&#146;s independent auditors on behalf of the Company that
do not fall within any exception to the pre-approval requirements established by
the SEC. The Audit Committee may delegate to one or more members the authority
to pre-approve permissible non-audit services, but any such delegate or
delegates must present their pre-approval decisions to the Audit Committee at
its next meeting. All of our accountants&#146; services described above were pre-approved by the Audit Committee or by one or more
members under the delegate authority described above. </P>
<P align=center>20 </P>
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<P align=justify><B>Required Vote </B></P>
<P align=justify style="text-indent:5%">Ratification of Crowe Horwath as
our company&#146;s independent registered public accountant for the fiscal year
ending September 30, 2016 requires the affirmative vote of a majority of the
shares of the Common Stock present in person or represented by proxy that are
entitled to vote that actually voted (assuming a quorum is present). Abstentions
will have the same effect as a vote against the proposal, and broker &#147;non-votes&#148;
may be voted at the discretion of the broker holding the shares. </P>
<P align=justify><B>Recommendation of the Board </B></P>
<P align=justify style="text-indent:5%">The Board of Directors recommends
a vote FOR ratification of the selection of Crowe Horwath as the Company&#146;s
independent registered public accounting firm for the fiscal year ending
September 30, 2016. </P>
<P align=center>21 </P>
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<P align=center><B>OTHER MATTERS </B></P>
<P align=justify style="text-indent:5%">Our Board of Directors is not
aware of any business to come before the Annual Meeting other than those matters
described above in this Proxy Statement. However, if any other matters should
properly come before the Annual Meeting, it is intended that proxies in the
accompanying form will be voted in accordance with the judgment of the person or
persons voting the proxies. </P>
<P align=center><B>STOCKHOLDER COMMUNICATIONS </B></P>
<P align=justify style="text-indent:5%">The Company has a process for
stockholders who wish to communicate with the Board of Directors. Stockholders
who wish to communicate with the Board of Directors may write to it at the
Company&#146;s address given above. These communications will be reviewed by one or
more employees of the Company designated by the Board of Directors, who will
determine whether they should be presented to the Board of Directors. The
purpose of this screening is to allow the Board of Directors to avoid having to
consider irrelevant or inappropriate communications. </P>
<P align=center><B>STOCKHOLDER PROPOSALS FOR THE 2017 ANNUAL MEETING </B></P>
<P align=justify style="text-indent:5%">If you wish to have a proposal
included in our proxy statement for next year&#146;s annual meeting in accordance
with Rule 14a-8 under the Exchange Act, your proposal must be received by the
Secretary of the Company at BAK Industrial Park, Meigui Street, Huayuankou
Economic Zone, Dalian City, 116450, China, no later than December 31, 2016. A
proposal which is received after the applicable date or which otherwise fails to
meet the requirements for stockholder proposals established by the SEC will not
be included. The submission of a stockholder proposal does not guarantee that it
will be included in the proxy statement. </P>
<P align=center><B>ANNUAL REPORT ON FORM 10-K </B></P>
<P align=justify style="text-indent:5%"><B>We will provide without charge
to each person solicited by this Proxy Statement, on the written request of such
person, a copy of our Annual Report on Form 10-K with any amendments, including
the financial statements and financial statement schedules, as filed with the
SEC for our most recent fiscal year. Such written requests should be directed to
the Secretary of the Company, at our address listed on the top of page one of
this Proxy Statement.</B> A copy of our Annual Report on Form 10-K, with any
amendments, is also made available on our website at <U>www.cbak.com.cn</U>
after it is filed with the SEC. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">By Order of the Board of Directors </TD></TR>
  <TR vAlign=top>
    <TD align=left >July 11, 2016&nbsp;&nbsp;</TD>
    <TD align=left width="50%"></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="50%">/s/
      Yunfei Li </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Secretary </TD></TR></TABLE>
<P align=center>22 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_26></A>
<P align=center><B>CHINA BAK BATTERY, INC. </B></P>
<P align=center><B>ANNUAL MEETING OF STOCKHOLDERS</B> <BR><B>TO BE HELD ON
AUGUST 26, 2016</B> </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="20%" border=0>

  <TR>
    <TD style="BORDER-TOP: #000000 1px solid" align=center>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center><B>Annual Meeting Proxy Card</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE></DIV>
<P align=center><B>This Proxy is Solicited on Behalf of the Board of
Directors</B> </P>
<P align=justify style="text-indent:5%">The undersigned stockholder of
CHINA BAK BATTERY, INC., a Nevada corporation (the &#147;Company&#148;), acknowledges
receipt of the Notice of Annual Meeting of Stockholders and Proxy Statement,
dated July 11, 2016, and hereby constitutes and appoints Mr. Yunfei Li,
the Company&#146;s Chairman, President, Chief Executive Officer and Secretary, and
Mr. Wenwu Wang, the Company&#146;s Interim Chief Financial Officer, or either of them
acting singly in the absence of the other, with full power of substitution in
either of them, the proxies of the undersigned to vote with the same force and
effect as the undersigned all shares of the Company&#146;s Common Stock which the
undersigned is entitled to vote at the Annual Meeting of Stockholders to be held
on August 26, 2016, and at any adjournment or adjournments thereof, hereby
revoking any proxy or proxies heretofore given and ratifying and confirming all
that said proxies may do or cause to be done by virtue thereof with respect to
the following matters: </P>
<P align=justify style="text-indent:5%">The undersigned hereby instructs said
proxies or their substitutes: </P>
<P align=justify><B>The Board of Directors recommends that you vote FOR the
following:</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Elect as Directors the nominees listed
  below:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%">01 </TD>
    <TD align=left width="24%">Yunfei Li </TD>
    <TD align=left width="24%"><B>FOR [_]</B> </TD>
    <TD align=left width="24%"><B>AGAINST [_]</B> </TD>
    <TD align=left width="24%"><B>ABSTAIN [_]</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">02 </TD>
    <TD align=left width="24%">J. Simon Xue </TD>
    <TD align=left width="24%"><B>FOR [_]</B> </TD>
    <TD align=left width="24%"><B>AGAINST [_]</B> </TD>
    <TD align=left width="24%"><B>ABSTAIN [_]</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">03 </TD>
    <TD align=left width="24%">Martha C. Agee </TD>
    <TD align=left width="24%"><B>FOR [_]</B> </TD>
    <TD align=left width="24%"><B>AGAINST [_]</B> </TD>
    <TD align=left width="24%"><B>ABSTAIN [_]</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">04 </TD>
    <TD align=left width="24%">Jianjun He </TD>
    <TD align=left width="24%"><B>FOR [_]</B> </TD>
    <TD align=left width="24%"><B>AGAINST [_]</B> </TD>
    <TD align=left width="24%"><B>ABSTAIN [_]</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">05 </TD>
    <TD align=left width="24%">Guosheng Wang </TD>
    <TD align=left width="24%"><B>FOR [_]</B> </TD>
    <TD align=left width="24%"><B>AGAINST [_]</B> </TD>
    <TD align=left width="24%"><B>ABSTAIN [_]</B> </TD></TR></TABLE>
<P align=justify><B>The Board of Directors recommends that you vote FOR the
following:</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Ratify the selection of Crowe Horwath as the Company&#146;s
      independent registered public accounting firm for the fiscal year ending
      on September 30, 2016.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="30%"><B>FOR [_]</B> </TD>
    <TD align=left width="30%"><B>AGAINST [_]</B> </TD>
    <TD align=left width="30%"><B>ABSTAIN [_]</B> </TD></TR></TABLE>
<P align=justify><B>The Board of Directors recommends that you vote FOR the
following:</B> </P>
<P align=justify><B>NOTE</B>: In their discretion, the proxies are authorized to
vote upon such other business as may properly come before the Annual Meeting,
and any adjournment or adjournments thereof. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_27></A>
<P align=justify><B>IF THIS PROXY IS PROPERLY EXECUTED, THE SHARES OF COMMON
STOCK COVERED HEREBY WILL BE VOTED AS SPECIFIED HEREIN. IF NO SPECIFICATION IS
MADE, SUCH SHARES WILL BE VOTED &#147;FOR&#148; ALL NOMINEES, AND FOR PROPOSAL 2. IN THEIR
DISCRETION, THE PROXIES ARE ALSO AUTHORIZED TO VOTE UPON SUCH OTHER MATTERS AS
MAY PROPERLY COME BEFORE THE ANNUAL MEETING. </B></P>
<P align=justify>I (we) acknowledge receipt of the Notice of Annual Meeting of
Stockholders and the Proxy Statement dated July 11, 2016, and ratify all that
the proxies, or either of them, or their substitutes may lawfully do or cause to
be done by virtue hereof and revoke all former proxies. </P>
<P align=justify><B>If you are voting by mail, please sign, date and mail this
proxy immediately in the enclosed envelope. You are also permitted and
encouraged to vote online by following the instructions on the Notice of
Internet Availability of Proxy Materials that was separately mailed to you.</B>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >Name </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%" colSpan=2>Name (if joint) </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="50%" colSpan=2>&nbsp;
    </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%" colSpan=2>Date _____________, 2016 </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%" colSpan=2>
      <P align=justify>Please sign your name exactly as it appears hereon. When
      signing as attorney, executor, administrator, trustee or guardian, please
      give your full title as it appears hereon. When signing as joint tenants,
      all parties in the joint tenancy must sign. When a proxy is given by a
      corporation, it should be signed by an authorized officer and the
      corporate seal affixed. No postage is required if returned in the enclosed
      envelope, if mailed in the United States. </P></TD></TR></TABLE><BR>
<HR align=center width="100%" color=black noShade SIZE=5>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
