Exhibit 10.27

                                                                     Translation
                                                                     -----------


                                Guaranty Contract

                                 No. (Shenzhen Longgang) Nongyin (2005) 02379998

Creditor:  Shenzhen Longgang Branch, Agricultural Bank of China
Guarantor: Li Xiangqian

Whereas:  Shenzhen BAK Battery Co., Ltd.  (hereinafter referred to as "Obligor")
and the Creditor have entered into the Loan Agreement  (reference no.: (Shenzhen
Longgang)  Nongyin  Jiezi  81101200500000995,  hereinafter  referred to as "Loan
Agreement").  The Guarantor  undertakes to provide guaranty for the indebtedness
of the Obligor under the Loan  Agreement.  In accordance  with relevant PRC laws
and regulations  and through  friendly  negotiation,  the Parties agree to enter
into this Contract:

I. Indebtedness to be secured and maximum amount
The Guarantor  undertakes to provide guaranty for the short-term working capital
loan owed by the Obligor to the Creditor under the Loan Agreement, the principal
of which is RMB 50 Million yuan.

II. Scope of Guaranty
The  guaranty  under  this  Contract  shall  cover  all of the  loan  principal,
interest,  penalty interest,  compound interest, breach of contract compensation
and all the expenses  such as litigation  cost and lawyer's  fee, etc.  which is
incurred to the Creditor in realizing its creditor's right.


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III. Method of Guaranty

The guaranty  under this Contract is guaranty with joint and several  liability.
And in case that there are more than one guarantors  under this  Contract,  each
guarantor shall all bear joint and several liability for the indebtedness of the
Obligor.

IV.  Guaranty Period
1.   The guaranty  period under this Contract shall be two years from the expiry
     date for the indebtedness of the Obligor under the Loan Agreements.

6.   For  acceptance  of bank draft,  issuance  of L/C  without or with  reduced
     deposit and bank guarantee, the guaranty period shall be two years from the
     date that the Creditor bears the obligations of the Obligor.

7.   For discount of commercial  draft,  the guaranty  period shall be two years
     from the expiry date of the commercial draft.

8.   In case that the Obligor and Creditor reach agreement to extend the term of
     the  indebtedness of the Obligor,  the Guarantor shall continue to bear the
     obligation  of guaranty  and the  guaranty  period shall two years from the
     expiry of the extended term of the indebtedness.

9.   Upon  occurrence  of  certain  event  as  stipulated  by law  or  the  Loan
     Agreement,  the Creditor may demand the  indebtedness of the Obligor become
     mature before the expiry of the original term. And under such  circumstance
     the guaranty period shall 2 years from the mature date of the  indebtedness
     as demanded by the Creditor in accordance with law or the Loan Agreement.

V.   The Guarantor undertakes that:
1.   he/she  shall  provide  truthful,  comprehensive  and  effective  financial
     reports and other relevant materials and information to the Creditor;


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8.   he/she shall  perform the  obligation  of guaranty  voluntarily  in case of
     default by the Obligor;

9.   in case that the Guarantor fails to perform his/her  obligation of guaranty
     in  accordance  with this  Contract,  the  Creditor is entitled to transfer
     directly the relevant  amount of deposit from any account of the  Guarantor
     to the Creditor's account.

10.  he/she  shall  notify  the  Creditor  in  writing  within  5 days  upon the
     occurrence of the following events:
     (1)  The  shareholder,   senior  management,  articles  of  association  or
          corporate governance structure of the Guarantor has been altered;
     (2)  The Guarantor  ceases its business  operation or its business  license
          has been withdrawn or cancelled;
     (3)  The  Guarantor's   financial  status   deteriorates  or  its  business
          operation  encounters  serious  difficulty  or it is involved in major
          litigation or arbitration;
     (4)  The Guarantor changes its name, address, legal representative, contact
          information etc.
     (5)  Any other events of the Guarantor that may make the Creditor unable to
          execute its creditor's right.

11.  The Guarantor shall give 15-day prior written  notification to the Creditor
     and  obtain the  Creditor's  consent  before it takes any of the  following
     actions:
     (1)  The  Guarantor  changes its capital  structure or  management  system,
          which includes (without  limitation)  contractual  management,  lease,
          share structure  transformation,  joint venture, merger,  acquisition,
          division, application for cease of business operation, application for
          dissolution, application for bankruptcy etc.


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     (2)  The Guarantor  provide guaranty for any other third party or establish
          mortgage  or pledge on its major  assets for the  benefit of any other
          third party which may affect its performance of obligation of guaranty
          under this Contract.

12.  In case that the Obligor  provides  collateral to secure its  indebtedness,
     the  Guarantor  undertakes  that he/she  shall  perform the  obligation  of
     guaranty prior to the execution of the collateral.

VI.  Breach of Contract
The Obligor and Guarantor  shall perform their  obligations  in accordance  with
this Contract after it becomes  effective.  In case of breach of contract by any
party,  the breaching  party shall bear the relevant  liabilities and compensate
the loss incurred to the other party by its breach of contract.

VII. Dispute Settlement
In case of any dispute  deriving from the  performance  of this  Contract,  such
dispute shall be settled by consultation  between the parties or be submitted to
the People's Court located in the address of the Creditor.  During the course of
litigation,  the parties shall continue to perform this Contract  except for the
provisions at issue.

VIII. Miscellaneous
The Guarantor confirms that it has received and read the Loan Agreement.

IX. Effectiveness
This  Contract  shall  become  effective  once it is signed or  stamped  by both
parties.

X. This Contract has four  originals.  The Guarantor  shall retain one original,
the  Obligor  shall  retain  one  original  and the  Creditor  shall  retain one
original. Each original shall have the same legal effect.


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XI. Attention
The Creditor has drawn the attention of the Guarantor to understand  each clause
of this  Contract  clearly and  comprehensively  and has  explained the relevant
clauses upon the request of the Guarantor.  Both parties'  construction  of this
Contract is the same.

Creditor (company chop): _____________________________
Authorized Representative(signature): ________________

Guarantor (signature): _______________________________

Date of Execution: 29 July 2005
Venue of Execution: Longgang, Shenzhen