Shareholders wish many blessings to the  
 Management and employees of Advanced Battery as the Season Continues!!!!
 Click Below for More Videos of  
ABAT's Dongguan Opening Ceremony on YouTube or
 Scroll Down for Slideshow of New Dongguan Facility

   ABAT New Video                      Wuxi Promo Video                    Chairman Fu Keynote

                      (SLIDESHOWS  of Opening Ceremony at ABAT's Dongguan Amperex and New Product Catalog Below)  

ABAT, through its three subsidiaries engages in the design, manufacture, marketing and sales of rechargeable (PLI) polymer lithium-ion batteries, battery cells, electric bikes and electric scooters and component parts within China for domestic sales and global export and is traded in the U.S  stock market currently on the pink sheets and previously on Nasdaq. 1 year price target for ABAT is $3.52, a penny higher than it was before the unproven and to some degree dis-proven negative reports emerged.

***FOR LINKS TO SLIDESHOW, PRODUCT CATALOGUES, New Products 10-K/Q's, Rebuttals, Video of ZQTD-690 off the assembly line etc. 
                                            Click here. .  .             http://www.abatelectricscooter.com/links.html 

  SLIDESHOW OF OPENING CEREMONY IN Dongguan City, China  12/10/2011
                    All shareholders were invited to attend the public ceremony 2 months in advance.

                                                                                                                                 Part One             

We believe and are of the opinion that ABAT has been immorally, unfairly and unjustly attacked by short sellers, and that these accusations,  as well as other ensuing events have severely devalued the stock.  Our goal is to support other investors and potential new investors to return the stock to true valuation (ABAT's book value is about $3.50) and also to create an atmosphere and forum for clarifying what the reality is, especially given the opposing points of view and the conflicting information we received in 2011 regarding ABAT.  Over the past year, some Chinese companies have been accused of falsely reporting revenues, capital expenditures and/or transferring funds to shell companies or that production facilities are fake or never get finished.  In this environment of suspicion,  there were negative short and distort reports that came out against Advanced Battery accusing them ( we believe, wrongly) of being in Eiad Asbahi's words, the CEO of Prescience "yet another Chinese fraud."   Since the company was portrayed in a very negative light by the short sellers,  two investors decided to get a first hand look at ABAT and its various facilities and accepted the opportunity to attend the opening ceremony for the new facility in Dongguan City, China in December of 2011 and then travel to Wuxi and Harbin and present their findings.  Since that time, many other investors have traveled to China to inspect ABAT's operations as well as continued to deconstruct and refute the allegations of the short sellers exaggerated negative claims. That information is now widely available.

One glaring misportayal by the short sellers was that ABAT had created a network of fictitious distributorships regarding the subsidiary in Wuxi that sells electric scooters and bikes.  For starters, here is a report by an investor that utterly refutes the short sellers claims that ABAT's distributorships were fabricated.  This diligent individual  documented 10 out of the 11 distributorships that are mentioned in ABAT's 2010 10-k demonstrating the falsity of both the Variant View Research report and the Prescience report which claimed these were non-existent or insubstantial.  It undermines their credibility and the notion that their "research" had integrity.  Furthermore, it supports the sentiment of shareholders that VVR and Prescience are not blameless in the significant drop in ABAT's share price from $3.50 to $2.00 when the VVR report was released.

                                                                           ABAT'S DISTRIBUTORSHIP REPORT
                                            http://www.scribd.com/fullscreen/81919700?access_key=key-72lmxwmxf2nc3xqqmh
With that being said, let's continue.  Back in December of 2011, about 8 months after the short reports came out causing great damage to shareholders,  ABAT opened a new facility in Dongguan China for manufacturing small lithium-ion batteries and invited the shareholders to attend.  As a result of the short sellers fallacious report and ABAT's delisting from NASDAQ, rumors were circulating that the facility was not even built.  This was unfortunate and part of the reason why it was  decided that a first hand trip to the opening was necessary.     After the gala opening ceremony in Dongguan, the investor visited the e-scooter/bike factory in Wuxi to see the production facilities there and then returned to China in May of 2012  to visit the Harbin campus and revisit Wuxi and Dongguan to verify their continued operations.  Despite the significant drop in share price, other shareholders were happy to hear that all facilities were in operation and producing and selling significant quantities of the product.   Along with other shareholders, our ongoing goal was/is to get solid evidence and to present it to the investment community.   You can get a deeper insight into the working atmosphere of the facilities in Dongguan, Wuxi and Harbin by checking out these YouTube videos.  
                                    http://www.youtube.com/user/ABATevents/videos?feature=context-chv&sort=dd&page=1&view=0

"By the way, these videos contradict the way that the short sellers portrayed ABAT on YouTube which was another low blow to the shareholders at that time, because they knew that YouTube in China is limited so they were able to utilize that to their advantage.  Now that 14 months have passed, they probably realize they hurt American shareholders far more than they did the company, therefore, it would be honorable of them to apologize, retract any false statements publically and remove or amend their videos. " 

This investors qualitative opinion is that the short sellers' reports were highly self-serving and exaggerated and filled with the type of accusations that they, the short sellers themselves were actually guilty of.  For example, in one customer interview, an anonymous individual claimed that the facility in Wuxi  "consisted of 4 empty walls" and that "anyone who visited would realize it was a joke".   While this statement may or may not have been true when he visited in 2008 or 2009 (ironically, he couldn't even remember in his interview), it most certainly was not the case when several investors visited between December 2011 and January 2013.  During those visits, all shareholders saw dozens of scooters coming of the assembly line each hour, a full workshop assembling motors and controllers and plastic parts being molded and painted.  Many of us have shared that we personally felt very sad for fellow shareholders who were damaged by these false accusations and for the employees of the company who were working hard and in good spirits. (By the way, the date of the "4 empty walls customer's" visit is highly relevant because ABAT did not assume ownership of the facility in Wuxi until May of 2009 and it is very likely that the "customer" visited before the new management even took over, or shortly after, but while they were still in transition. Furthermore, the VVR/Prescience "short and distort" report that referenced this visit came out 2 years later  and tried to argue that ABAT did not sell a mere 90,000 e-bikes/scooters in 2010 when in fact, the entire Chinese e-bike sector exploded that year.  

Drawing on a customer visit from 2008 or 2009 and using this "story without a context" to make the claim that ABAT did not sell 90,000 scooters in 2010 and then to make a YouTube video about it,  was a low blow, cheap shot meant to instill fear and most likely trigger "stop loss selling" leading to a significant drop in share price.  This notion is corroborated by the understanding that a sizable position of short selling had been growing in ABAT over the preceeding months.     Here is an audited report by a China based factory inspector that shows pictures of ABAT Wuxi facilities.   http://www.scribd.com/doc/109644516 (this item is password  protected so if you want this report send an email to abatevents@gmail.com)

In conclusion to this opening section, I opine that it is beyond ironic that the Plaintiff law firms, in their original and amended complaints entitle the section regarding the anonymous VVR report as "The Truth Begins to Emerge".  How funny?  Clearly, they had just lifted the report almost verbatim, without considering or scrutinizing its overall merits or truthfulness.  Now that more than a year has passed, several of the sensational allegations would be perceived as comical if so many investors had not been hurt by them.  Daily on the Yahoo message board, knowledgeable investors have discussed which of the allegations were downright lies and which may contain some aspects of Truth.  The Judge alludes to this in her comments about "dis-aggregating factors" that may have contributed to the decline in stock price.   Be that as it may, the notion that the VVR or the Prescience report reflects the "end all be all" Truth is, was and always will be ludicrous.  Sadly, however, the damage their persuasive exaggerations inflicted has been done to ABAT and its shareholders and will take time to heal if indeed it can.
____________________________________________________________________
                                                                Part Two

Given all the dynamics going on, including the distance between a majority of the investors and the location of operations and how the short sellers portrayed Advanced Battery in their pictures and videos,  we hope that the additional photos, videos and commentary presented here will help bridge the distance between us and the company that we have invested in, especially in light of the clear bias by the short sellers who buttressed "their thesis" by taking horrible pictures and posting "kafka-esque" YouTube videos designed to muddy the waters and invoke fear.  They succeeded but the time is long past to restore balance.  Your input is very welcome and will be communicated to the board.    At this point it is clear to this writer that at least some and possibly all of the allegations against ABAT are false.   This is just my opinion at the present time and shared by many other investors  in the company.  Please do your own due diligence and form your own opinion.  On August 31, 2012, the honorable Judge Colleen McMahon gave her ruling that the case against ABAT would move into discovery while the cases against ABAT's auditors would be dismissed.  That information is in the public domain and is available on www.pacer.gov under case # 1:11-cv-02279 .  I hope that in the final analysis, truth and justice will be served and that ill-gotten gains will be returned somehow to the wronged individuals.  Since that time, a "settlement in principle" letter has been placed in the public domain and shareholders are awaiting the outcome of that part of the process.

This website contains commentary of the visits with pictures and videos that provide deeper qualitative insight into the working atmosphere of ABAT's facilities that present a fuller and brighter picture than the negative way that the company was portrayed by the short sellers who made several exaggerated claims including that ABAT's facilities consisted of "four empty walls." 

As impressive as the new Dongguan facility is,  it is the smallest of all of ABAT's factories/complexes.   You can check the info about each complex at the "About Us" portion of the websites.

To view the website in Chinese go here .   www.zqpt.com 

To view the website in English go here      www.abatglobal.com

Here are some important sub-links
1) http://www.zqpt.com    Click English                 (Main website in English including Chairman Fu's letter to investors)
2) http://wuxi.zqpt.com/index.html    (Wuxi Zhongqiang Autocycle Co., Ltd. formerly known as Wuxi Angell, referred to now as Wuxi ZQ)
3) http://hrb.zqpt.com/index.html                      (Harbin portion of the website Harbin, China)
4)http://abat4.sys145.pkulab.com/a/English/   (New Dongguan Facility in Chinese and English
_____________________________________________________________________________________________________________
                                                              Part Three

Because of the numerous "hit pieces" by self-disclosing short sellers, such as Variant View Research (VVR) and Prescience Investments, as well as dishonest paid bashers on the message boards,  many of us were very skeptical of anything ABAT claimed as the allegations were very persuasive and well-presented upon first glance (yet not necessarily true upon deeper analysis.  And as time passes, many investors are finding the numerous holes in what they said).  For example, in one of the YouTube videos, Eiad Abashi, the CEO of Prescience states quite confidently that "ABAT is hoodwinking investors and fabricating its SEC statements" and elsewhere states as an uncontested truism "Since the company is engaging in securities fraud and likely has no intention of providing a meaningful return to public foreign shareholders, we think that the stock is fundamentally worth zero."  He reaches this conclusion based on very sketchy evidence such as inaccurate reports from anonymous customers, ABAT's high net margins and discrepancies between SEC (audited financials) and SAIC (unaudited financials reported to a Ministerial agency in China).  Furthermore, there is at least one place where he refers to the number of ABAT Wuxi's assembly lines and he takes information from an SEC report that had been amended only one week after the original.  What is remarkable is that even though his report came out six weeks later, he quotes the original report when he had ample time to check the amended report which correctly stated the # of assembly lines and units and parts per assembly line.    The accusations made against ABAT were heavy and many investors are skeptical and believe them to be untrue.   Some believe that the short sellers are themselves guilty of libel and defamation and that ABAT is making the revenues and profit that it claims. 

 If it turns out that ABAT's SEC filings were indeed honest and truthful as this writer and many of our readers believe and if and when it becomes public knowledge that Eiad et al. are really the "out and out liars" who have created a "fiction", then a public apology, retraction and a willingness to make amends for the damage they have inflicted would be merely the first step that they should  take in order to "do the right thing" and act in a proper and moral way.  The frustration that investors might be feeling toward ABAT and its management will then be  re-directed at the anonymous bloggers, short selling hedge funds and plaintiff law firms  for their deception, dishonest manipulations, mistaken allegations, false accusations and intentional fabrications.   Here are Advanced Battery's responses to the allegations which this writer believes are truthful and worthy of revisiting as the claims against this company move through the United States Southern District Court of New York.    http://www.globenewswire.com/newsroom/news.html?d=218071   

In recent months,  Judge McMahon has dismissed the cases against ABAT's auditors and moved the case against ABAT into discovery. The plaintiffs then moved to reopen the case against the Auditor defendants as well as introduce a new Class member.  However, on October 10, 2012, based on a court document in the public domain, it appears that settlement talks have begun between ABAT which maintains the accuracy of its SEC filings and Pomerantz Law firm which used many of the short seller allegations verbatim in their complaints against ABAT.  You can view the settlement letter here.  http://www.scribd.com/doc/110053762 .  Given that many of the allegations are clearly untrue, a quick settlement will hopefully restore shareholder value.
 
It seems to this writer that there is some left over karma from a previously unresolved situation with a former employee of ABAT that may have been the initial impetus causing the events of this last year.  (This is merely conjecture on my part based on a reading of the court history including the previously dismissed court case of Dr. Sui-Yang Huang.) which can be downloaded from Pacer.  

ABAT's most recent quarterly is available here.   
http://sec.gov/Archives/edgar/data/745651/000109690611001908/advbattery10q20110630.htm 
ABAT's most recent 10-k from 2010 is available here.  
http://sec.gov/Archives/edgar/data/745651/000109690611000507/abat10k20101231.htm

Interestingly, and time will tell if ironically,  Eiad was voted one of the top "forty under 40" outstanding professionals in a Baton Rouge business report,  however ABAT is currently standing by the authenticity of its SEC filings despite Eiad's belief that they are fraudulent.   How credible are their reports and the information they contain?  Can they be fact checked?     This ordeal leaves the average investor in a very uncertain position as both sides are questioning the others integrity and honesty.  In the investing world, perception is reality. . .at least initially until the community has time to parse through everything.  According to ABAT's most recent SEC filing, "The Company and its senior management believe that the claims are without merit.  They intend to mount a vigorous defense to the actions and to seek their prompt dismissal after a consolidated complaint is filed."     

The question I (the guy that went to China) have and intend to answer is. . . Did Eiad and his accomplices falsely accuse ABAT in order to score huge returns in 2011 and bring down a successful and profitable, yet, imperfect company with some management and customer service issues and a few less than ideal business transactions or did ABAT indeed file exaggerated SEC filings and overstate its revenues giving management or Chairman Fu, the opportunity to pilfer money from the investors?   Prior to the release of the VVR and Prescience report ABAT was attractive to many investors not only for its purported excellent fundamentals, but also because of its ecological transportation vehicles.

 Whether you are a member of the Class or not, your contribution is most welcome.  A lot of money has changed hands and many short sellers reaped incredible gains while long investors watched as the share price plummeted.  (False accusations are not only illegal, unethical and immoral but also violate the Biblical 9th commandment not to bear false witness or lie for those religiously minded investors. )  If he and the folks behind the Variant View Research did indeed make false allegations  as ABAT claims, then they have highly profited on the pain and pocketbook of investors like myself and many of the readers of this website (we average about 150 hits a day for the past three months and have on several days had over 300 hits.)   And so, I do not believe this story is over and I hope that in 2012, we, as investors will at least come to know what really happened.  We invested in a company and a product that we believed in.  I deserve to know.  You deserve to know and for the sake of Truth,  my hope is that we will know if ABAT was indeed what it claimed to be. . . a very profitable and successful company that increased revenues rapidly and reported that honestly and therefore should be rewarded, not punished for their hard work,  or, what Eiad and his coterie citing the SAIC report claimed that ABAT is "a company generating millions of dollars in losses, not profits"  
See Prescience's video and skip to two minutes in to hear the claim that ABAT is not profitable.

                                         http://www.youtube.com/watch?v=gNd4AAIC61s&feature=related  

One question for the plaintiffs and members of the class would be "If ABAT is generating losses, then what exactly do you hope to gain by suing them???"  and if you do think they are sitting on a lot of cash, then doesn't this undermine your accusation that they were fabricating their financial results?

Numerous investors have found holes in the short selling reports which emphasized the discrepancy between the SAIC and SEC that were done last year that have not yet been retracted.  

Be all that as it may, let's get back to the new facility in Dongguan.  The authenticity, size and functionality of the new complex, as well as the seriousness and grandeur of the opening ceremony gave many investors a sigh of relief to know that the 86 million dollar factory/dormitory/living complex was there and operational. {Videos to come} Moreover,  the event was attended by hundreds of distinguished customers, government leaders, celebrities, employees and their families lending significant credence to ABAT's integrity.    After about 800 guests arrived and everyone received a lovely lapel bouquet, we were treated to a celebratory Chinese marching band, an authentic Chinese Dragon dance authorized by some very high up military leaders,  speeches by political and environmental leaders in different fields and even 2 of the top entertainers in China.  We then received a tour of the working facility (pictures above and videos to be posted.)   Here are links with pictures of the event, articles from various Chinese news outlets and a photo of the front page of the Hong Kong newspaper the week of the event.  These are being documented to show that the damage inflicted by a combination of the false accusations and the (possibly paid for) negative publicity campaign on the Yahoo message boards against ABAT had done so much to hurt their reputation and scare investors  that innocent individuals did not even know if the facility in Dongguan was for real or not.  I hope I have made the case as to how much damage false accusations, a biblical prohibition can harm.
http://abat.sys145.pkulab.com/a/English/ABOUT_US/News/Press_Releases/2012/0822/213.html
http://dgqq.zqpt.com/a/guanyuwomen/gongsixinwen/2012/0804/153.html
http://dgqq.zqpt.com/a/guanyuwomen/gongsixinwen/2012/0804/154.html
http://www.zqpt.com/en/News/ShowInfo.aspx?ID=54 

To repeat, some of us, invested in the company had been concerned whether the new complex was indeed built or merely edited and photo-shopped because the short sellers accusations, paid bashers and negative opinion had cast the company in a dismal light, sadly, creating the space for rumours to spread.  Fortunately for long investors, the honesty and integrity of the company's statements, at least in regard to this new facility was entirely supported by the facts on the ground.   Everyone has their own mind to make up about the details of this ongoing story. and who to trust and believe and whose reports are more credible.   We wish everyone the best with your investment decisions.

On November 23, 2011 Chairman Fu issued a letter to the shareholders concerning the events of 2011 with a closing statement in a sense to do what is right despite his view that his company was unfairly attacked and reward the loyal shareholders.  The letter can be viewed here.
http://abat.sys145.pkulab.com/a/English/INVESTORS_/Chairman_s_Letter/2012/1201/364.html  (English)
and here
http://abat.sys145.pkulab.com/a/guanyuwomen/jituanxinwen/20120731/167.html?1354625340  (Chinese)
On February 3, 2013, the Chairman released this letter 
http://abat.sys145.pkulab.com/a/guanyuwomen/jituanxinwen/20130122/418.html?1358988339  (chinese)

http://abat.sys145.pkulab.com/a/English/ABOUT_US/News/Press_Releases/2013/0124/420.html  (English)


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                          1500 Watt  Scooter by ABAT (ZQTD-690) right out of production
This video was made during visit to ABAT factory in Wuxi on 12/12/2011 and offers clear, contrary evidence that Wuxi's electric scooters are of poor quality as described by anonymous customer in another video.   That customer couldn't remember if he visited the factory in 2008 or 2009 which is highly relevant because ABAT purchased Wuxi in May of 2009.  ABAT's company website shows more recent visits in 2010, 2011 and 2012 from other very satisfied customers from numerous countries. ABAT's scooters have EEC certification and numerous reputable distributors have chosen ABAT over their competitors.

                                Video of 500 Watt Electric Scooter (ZQTD-388) Serengetti Panther
This is basically a section on the beginning of the story and how I got tipped off that something was amiss. . .  

As an investor with a small position in ABAT, I investigated the (untrue) accusation that a distributor in California was invented by ABAT and did not sell ABAT's product.   In fact, in July of 2011, about 4 months after the VVR report was released, I successfully purchased a 500 watt ABAT scooter marketed as the Serengetti Panther which was factory model ZQTD-388 (video below) from UPC which was a subsidiary of All-Power at that time.  These two companies All-Power and UPC were based in Chino, California and shared a common address.  Ironically, Variant View Research report said that distributorship was entirely fictitious.  This claim by VVR was a lie and it caused me to doubt the entire report.   All-Power/UPC most certainly did exist and had indeed purchased several thousand scooters from ABAT according to the rep I spoke to.  Here is the press release regarding that sale.  
http://www.globenewswire.com/newsroom/news.html?d=193789 
(Curiously, a new start up in California called "Yukon Trails" took over some of UPC's products and now sells several electric bikes that are identical to the one's ABAT sells. I leave it you, the reader to draw your own conclusions. )

Eiad Asbahai of Prescience in his follow up report, altered VVR's story which had claimed that All-Power/UPC was not at all doing business with ABAT and he, in fact, actually interviewed a rep at All Power/UPC about the sale of the scooters, the very company that VVR said did not sell ABAT's products.  In that conversation, Prescience accuses ABAT of selling electric scooters of low quality although it isn't clear to me if the rep was actually agreeing with Eiad or if he was just being led to agree to a series of questions to which he merely responded "yeah".  It seems to me the rep was speaking solely about an order delay and licensing issue.  In any case, as a customer of UPC,  I didn't find either claim against ABAT to be the true. Specifically, the scooter and the distributor clearly existed and the quality was fine for the type of product that it was.  Furthermore, in my  home state, this type of electric scooter was completely street legal as it goes under 30 mph and meets all FMVSS criteria and is therefore categorized as  a "motorized bicycle."  

I believe that VVR and Prescience were disingenuous in their accusations regarding this issue and should apologize to ABAT and its investors.  The simple press release from ABAT concerning this sale was verifiable, true and correct and not an exaggeration or a falsification.   While I don't know the details of this particular sale, it seems that VVR and Prescience capitalized on an unresolved customer service issue and some ambiguity about scooter laws in the United States and an earlier sale that took place some time in early 2009 when ABAT was assuming ownership of Wuxi.  By this low blow, they portrayed ABAT as a fraud  in order to short the stock and capitalize on market fear.  In my opinion, this was wrong and hurt many investors including myself. 


Here is the video of the Serengeti Panther which is model ZQTD-388 that I purchased from UPC about 4 months after the Variant View Research report came out.

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