Scud Battery Co.

SCUD Group Limited (HKSE Stock Code: 01399) (the ¡°Company¡±, together with its subsidiaries, the ¡°Group¡±) is engaged in research and development, design, production and sale of various rechargeable lithium-ion battery modules in the PRC. The Group was established in 1997 with registered capital of USD 127 million, SCUD Industrial Park covers an area of 170,000 square meters, the Group is in the PRC battery industry has a strong sales channel network and the most advanced manufacturing scale, the Group is the most valuable enterprise provide a comprehensive battery solutions for portable digital electronic products. The ¡°SCUD·ÉëÍÈ¡±brand enjoys reputation in the industry by virtue of high safety and quality of its lithium-ion battery modules. In 2004, ¡°SCUD·ÉëÍÈ¡±brand was obtained "China Famous Brand" title. In 2005, ¡°SCUD·ÉëÍÈ¡±brand was obtained ¡°Most Valuable Brand in China¡±. In 2006, ¡°SCUD·ÉëÍÈ¡±brand was obtained ¡°Famous Trademark of China¡±. n 2006, SCUD Group Limited successfully listed on the Stock Exchange of Hong Kong Limited and opened a new chapter of SCUD¡¯s history. Lithium-ion battery is a major battery technology for portable electronic products, motive power batteries and energy storage application market in the world. The Group¡¯s major production activities cover three areas along the industry chain, namely battery materials, manufacturing of bare battery cells and assembly of battery modules. Battery modules generally refer to units consisting of rechargeable bare battery cells, a power management system,and precision structural parts and accessories. They are widely used as batteries or backup battery products for various portable electronic products. The Group has been focusing on developingits lithium-ion battery business. To enhance market competitiveness of its products, the Group has increased research and development expenditures in lithium-ion battery modules as well as power management system, a major component of lithium-ion battery modules manufactured by the Group itself. The Group has become a professional lithium-ion battery module manufacturer with its design capability and self-support capacities ranking amongst other leading market players in the domestic lithium-ion battery sector. Since its establishment, the Group has been supplying lithium-ion battery modules to its own-brand business, which sells ¡°SCUD·ÉëÍÈ¡± branded lithium-ion battery modules suitable for various mobile phones and other mobile phone peripheral accessories mainly through its vast distribution network and online stores. The Group has also been actively supplying lithium-ion battery modules to domestic and foreign brands of electronic products in recent years. It has entered into supply chain systems of well-known branded smartphones and tablets manufacturers domestically and abroad and become a major battery supplier for customers including Huawei, ZTE, Lenovo, Panasonic, Xiaomi, TCL and BBK. In 2010, the Group completed a vertical consolidation of lithium-ion battery module industry chain through acquisition of a manufacturer engaged in upstream lithium-ion bare battery cell business, the Group¡¯s business now covers both manufacturing of bare battery cells and assembly of battery modules. The Group¡¯s current bare battery cell products mainly include prismatic liquid lithium-ion bare battery cells as well as polymer lithium-ion bare battery cells, which are for self-use and external sale in the domestic market.