Summary of CHINA BAK BATTERY INC

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing
Rule or Standard; Transfer of Listing.

On August 20, 2012, Richard B. Goodner ("Mr. Goodner") notified China BAK Battery, Inc. (the "Company") of his decision to resign as a member of the Board of Directors of the Company and as a member of the Board's Audit, Compensation and Nominating and Corporate Governance Committees, effective immediately. Mr. Goodner's decision to resign is due to personal reasons and was not a result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices. The Company intends to elect a new independent director to fill the vacancies created by Mr. Goodner's resignation as soon as practicable.

As a result of the resignation of Mr. Goodner, the Company is not currently in compliance with Listing Rules 5605(b)(1) and 5605(c)(2)(A) of the NASDAQ Stock Market LLC. NASDAQ Listing Rules 5605(b)(1) and 5605(c)(2)(A) require, among other things, that a majority of the Board of Directors be comprised of independent directors as defined in Rule 5605(a)(2) and the Company's Audit Committee be comprised of at least three members. Currently the Company's Board of Directors consists of two independent directors and two non-independent directors and the Audit Committee is comprised of two members.

The Company notified NASDAQ of its noncompliance with the NASDAQ listing rules described above on August 20, 2012, which notification also specified the Company's reliance on the cure period specified in NASDAQ Listing Rules 5605
(b)(1)(A) and 5605(c)(4)(B). In accordance with NASDAQ Listing Rules 5605
(b)(1)(A) and 5605(c)(4)(B), the Company has a cure period in order to regain compliance until the earlier of the Company's next annual shareholders' meeting or August 20, 2013. If the Company's next annual shareholders' meeting is held before February 16, 2013, then the Company must evidence compliance no later than February 16, 2013.