UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                               FORM 10-QSB

[X]   Quarterly Report pursuant to Section 13 or 15(d) of the
      Securities Exchange Act of 1934

      For the quarterly period ended September 30, 2005

[ ]   Transition Report pursuant to 13 or 15(d) of the Securities
      Exchange Act of 1934

      For the transition period        to

                       Commission File No. 0-13337


                     ADVANCED BATTERY TECHNOLOGIES, INC.
             --------------------------------------------------
               (Name of Small Business Issuer in Its Charter)

          DELAWARE                                     22-2497491
     ------------------------------------------------------------------
     (State or other jurisdiction of                (I.R.S. Employer
      incorporation or organization)                Identification No.)

             136-14 Northern Blvd., Suite 8E, Flushing, NY 11354
             ---------------------------------------------------
                  (Address of principal executive offices)

                                718-359-6866
             ---------------------------------------------------
               (Issuer's telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such
reports); and (2) has been subject to such filing requirements for the
past 90 days.  Yes [X]   No [ ]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act)   Yes [ ]   No [X]

The number of shares outstanding of each of the issuer's class of
equity as of the latest practicable date is stated below:

Title of each class of Common Stock    Outstanding as of November 14 , 2005
----------------------------------------------------------------------------
  Common Stock, $0.001 par value                25,337,116

Transitional Small Business Disclosure Format(check one): Yes [ ]  No [X]

<PAGE>

                             TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION

     Item 1. Consolidated Financial Statements..................     3

     Item 2. Management's Discussion and Analysis or Plan of
             Operation..........................................    10

     Item 3. Controls and Procedures............................    11

PART II - OTHER INFORMATION.....................................    12

     Item 1. Legal Proceedings..................................    13

     Item 2. Changes in Securities and Use of Proceeds..........    13

     Item 3. Defaults Upon Senior Securities....................    13

     Item 4. Submission of Matters To a Vote of Security
              Holders...........................................    13

     Item 5. Other Information..................................    13

     Item 6. Exhibits...........................................    13

<PAGE>

PART I - FINANCIAL INFORMATION

                      ADVANCED BATTERY TECHNOLOGIES, INC.
                          CONSOLIDATED BALANCE SHEET


                                                   September 30, 2005
                                                           (Unaudited)
                                                                  USD
                                                   ------------------
ASSETS
 Current assets
  Cash and cash equivalents                               259,767
  Accounts receivable                                     128,889
  Inventories                                             282,227
  Prepayments, deposits and other receivable              843,485
                                                       ----------
 Total current assets                                   1,514,368

Property, plant and equipment, net                     11,230,342
Construction in process                                   795,143
Deposits for acquisition of property, plant and
 equipment                                                 20,001
Rights to use land and power, net                         426,704
Patents, net                                              104,293
Prepaid expenses                                        2,756,528
                                                       ----------
Total assets                                           16,847,379
                                                       ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
  Accounts payable                                        384,620
  Accrued expenses and other payables                     527,004
  Notes payable                                           370,737
  Other loans payable                                     294,231
  Current maturities of long-term debts                 1,882,791
  Customer deposits                                       328,505
  Welfare payable                                         100,939
                                                       ----------
 Total current liabilities                              3,888,827

 Long-term debts, less current maturities               1,235,788
                                                       ----------
 Total liabilities                                      5,124,615
                                                       ----------

Minority interests                                      1,691,779
                                                       ----------
Stockholders' equity
 Common stock (Note 3)                                     25,337
 Additional paid-in capital                            13,786,123
 Accumulated deficit                                   (3,892,085)
 Accumulated other comprehensive income (Note 4)          111,610
                                                       ----------
 Total stockholders' equity                            10,030,985
                                                       ----------
Total liabilities and stockholders' equity             16,847,379
                                                       ==========


See the accompanying notes to the unaudited consolidated financial
statements
                                    -3-
<PAGE>

                    ADVANCED BATTERY TECHNOLOGIES, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS

                                 Three months ended       Nine months ended
                                    September 30,           September 30,
                                2005            2004      2005         2004
                               ----------------------   ---------------------
                              (Unaudited)  (Unaudited) (Unaudited)  (Unaudited)
                                     USD          USD         USD          USD

Revenue                        1,337,027      116,383   1,604,795    1,085,058

Cost of sales                   (852,448)     (87,815) (1,050,576)    (697,933)
                              ----------   ----------  ----------   ----------
Gross profit                     484,579       28,568     554,219      387,125

Other income                          29          428       1,408          533

Selling expenses                  (4,878)     (11,453)    (13,129)     (25,195)

General and administrative
 expenses                       (519,172)    (273,023) (1,496,811)    (621,142)

Research and development costs   (19,108)     (19,441)    (44,622)     (56,458)

Interest expense                  (4,196)      (2,497)   (114,411)     (10,369)
                              ----------   ----------  ----------   ----------
Loss before minority interests   (62,746)    (277,418) (1,113,346)    (325,506)

Minority interests               (95,251)      31,246      12,852       45,672
                              ----------   ----------  ----------   ----------
Net loss                        (157,997)    (246,172) (1,100,494)    (279,834)
                              ==========   ==========  ==========   ==========

Net loss per share (Note 6)        (0.01)       (0.02)      (0.05)       (0.03)
                              ==========   ==========  ==========   ==========

See the accompanying notes to the unaudited consolidated financial
statements
                                    -4-
<PAGE>

                     ADVANCED BATTERY TECHNOLOGIES, INC.

                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  Nine months ended
                                                    September 30,
                                                  2005          2004
                                               -----------   -----------
                                               (Unaudited)   (Unaudited)
                                                      USD           USD
Cash flows from operating activities:
 Net loss                                      (1,100,494)     (279,834)

 Adjustments to reconcile net loss to net
  cash (used in)/provided by operating
  activities:
  Depreciation and amortization                   285,252       110,135
  Amortization of prepaid expenses              1,070,506       173,265
  Minority interests                              (12,852)      (45,672)

 Changes in operating assets and liabilities:
  Increase in accounts receivable                (128,564)      (30,478)
  (Increase)/decrease in prepayments,
   deposits and other receivable                 (531,665)       37,499
  Increase in inventories                         (42,744)     (144,553)
  Increase in accounts payable and
   accrued expenses                               657,173       376,675
  (Decrease)/increase in customer deposits       (506,772)      672,920
  Increase in welfare payable                      41,585        27,498
                                                ---------     ---------
  Net cash (used in)/provided by operating
   activities                                    (268,575)      897,455
                                                ---------     ---------
Cash flows from investing activities:
 Purchase of property and equipment            (3,556,117)     (162,862)
 Purchase of construction in process             (636,949)   (1,140,438)
 Purchase of patents                                    -       (10,585)
                                                ---------     ---------
  Net cash used in investing activities        (4,193,066)   (1,313,885)
                                                ---------     ---------
Cash flows from financing activities:
 Net proceeds from long-term debt                 602,492        26,646
 (Decrease)/increase in other loans payable       (42,871)      302,315
 Repayment from officers                                -       141,343
 Loans from three individuals                   3,383,084             -
                                                ---------     ---------
  Net cash provided by financing activities     3,942,705       470,304
                                                ---------     ---------
Net (decrease)/increase in cash and cash
 equivalents                                     (518,936)       53,874

Effect of foreign exchange rate changes            20,688             -

Cash and cash equivalents, beginning of period    758,015         8,063
                                                ---------     ---------
Cash and cash equivalents, end of period          259,767        61,937
                                                =========     =========

See the accompanying notes to the unaudited consolidated financial
statements
                                    -5-
<PAGE>

                    ADVANCED BATTERY TECHNOLOGIES, INC.

           NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.   BASIS OF PRESENTATION

     (i)   The accompanying consolidated financial statements of
           Advanced Battery Technologies, Inc. ("ABAT") and its
           subsidiaries (the "Group") have been prepared in accordance
           with generally accepted accounting principles in the United
           States of America for interim consolidated financial
           information.  Accordingly, they do not include all the
           information and notes necessary for comprehensive consolidated
           financial statements.

           In the opinion of the management of ABAT, all adjustments
           necessary for a fair presentation of the financial position
           and the results of operations and cash flows for the interim
           periods have been included.  Interim results are not necessarily
           indicative of results for a full year.

      (ii) The Company has two subsidiaries, Cashtech Investment
           Limited ("Cashtech"), a British Virgin Island corporation,
           and Heilongjiang ZhongQiang Power-Tech Co., Ltd. ("ZQ
           Power-Tech").  ZQ Power-Tech is a limited liability company
           established in the People's Republic of China (the "PRC")
           in which Cashtech owns 70% interest as of September 30, 2005.

     (iii) On March 1, 2004, the previous stockholders holding 70%
           ownership of ZQ Power-Tech agreed to the transfer of their
           shares to obtain 100% ownership in Cashtech.  Cashtech is
           the legal parent of ZQ Power-Tech since inception, with the
           transaction being treated as a reverse merger and
           recapitalization of ZQ Power-Tech, which is treated as the
           accounting acquirer.

           On May 6, 2004, ABAT completed a share exchange with the
           stakeholders of Cashtech.  This share exchange has been
           treated as a reverse takeover with Cashtech taken as the
           accounting acquirer and ABAT as the accounting acquiree.

           The purchase method under reverse takeover accounting has
           been applied for the above two share exchanges.  These
           consolidated financial statements issued under the name of
           the legal parent, ABAT, are a continuation of the financial
           statements of ZQ Power-Tech.

      (iv) The Group has accumulated deficit as at September 30, 2005.
           However, based on the substantial backlog of orders of
           approximately $27 million that the Group has accumulated,
           the management of the Group believes that these orders will
           generate sufficient revenue and cash flows to enable the
           Group to continue as a going concern.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The accounting policies followed by the Company are set forth in
     the section "Summary of significant accounting policies" of the
     consolidated financial statements of the Company included in the
     Company's Form 10-KSB submitted to the United States Securities
     and Exchange Commission on March 31, 2005.

                                    -6-
New accounting pronouncement

     In May 2005, the Financial Accounting Standards Board ("FASB")
     issued FASB Statement No. 154 "Accounting Changes and Error
     Corrections - a replacement of APB Opinion No. 20 and FASB
     Statement No. 3".  This statement replaces APB Opinion No. 20
     "Accounting Changes" and FASB Statement No. 3 "Reporting
     Accounting Changes in Interim Financial Statements", and changes
     the requirements for the accounting for and reporting of a change
     in accounting principle.  It applies to all voluntary changes in
     accounting principle and to changes required by an accounting
     pronouncement which does not include specific transition
     provisions.  FASB No. 154 requires retrospective application to
     prior periods' financial statements of changes in accounting
     principle, unless it is impracticable to determine either the
     period-specific effects or the cumulative effect of the change.
     When it is impracticable to determine the period-specific effects
     of an accounting change on one or more individual prior periods
     presented, this statement requires that the new accounting
     principle be applied to the balances of assets and liabilities as
     of the beginning of the earliest period for which retrospective
     application is practicable and that a corresponding adjustment be
     made to the opening balance of retained earnings for that period
     rather than being reported in an income statement.  When it is
     impracticable to determine the cumulative effect of applying a
     change in accounting principle to all prior periods, this
     statement requires that the new accounting principle be applied
     as if it were adopted prospectively from the earliest date
     applicable.

     The adoption of the statement had no impact on the Company's
     results of operation or financial position.

3.   COMMON STOCK                            No. of shares      Amount
                                                                   USD

     Authorized: -
      Common stock at US$0.001 par value       60,000,000       60,000
                                               ==========      =======
      Issued and outstanding:
       At January 1, 2005                      12,940,169       12,940
       Shares issued for settlement of loan
        (Note 3(i))                            11,276,947       11,277
       Shares issued to a consultant
        (Note 3(ii))                               20,000           20
       Shares issued to employees
        (Note 3(iii))                           1,100,000        1,100
                                               ----------      -------
       At September 30, 2005                   25,337,116       25,337
                                               ==========      =======

     Notes:

     (i)     On January 20, 2005, the Company entered into a contract
             with its chairman, Zhiguo Fu, as well as Zhijie Fu and
             Wenhua Yang.  The contract acknowledged that these three
             individuals had provided $4,832,976 to fund the
             construction of plant facilities owned by ZQ Power-Tech.
             Since the Company has a 70% interest in ZQ Power-Tech, the
             contract provided that the Company would issue a total of
             11,276,947 shares of common stock to satisfy $3,383,084
             (i.e. 70%) of the loan from the three individuals to ZQ
             Power-Tech.  The number of shares to be issued was based
             upon US$0.30 per share, which represented the closing price
             of the Company's common stock on the OTC Bulletin Board on
             January 19, 2005.
                                    -7-
<PAGE>

             Accordingly, the Company issued 11,276,947 shares of common
             stock to the three individuals on January 20, 2005.  The
             excess of the loan amount over the par value of the stock
             issued was included in additional paid-in capital.

     (ii)    The Company entered into an agreement with a consultant for
             the provision of consultancy services in connection with
             the operation of the businesses of the Company for a period
             from January 24, 2005 to June 30, 2005.  As full
             compensation for the services to be rendered, the Company
             issued to the consultant 20,000 shares of its common stock
             on January 24, 2005.  An amount of $10,380, which
             represents the aggregate fair value of the shares in excess
             of par value, was included in additional paid-in capital.

     (iii)   On June 1, 2005, 1,100,000 shares of common stock were
             issued to 4 employees of the Company for the provision of
             services for a term of five years commencing on the same
             date.  An amount of $2,022,900, which represents the
             aggregate fair value of the shares in excess of par value,
             was included in additional paid-in capital.

4.   ACCUMULATED OTHER COMPREHENSIVE INCOME

     The comprehensive income for the nine months ended September 30,
     2005 of US$99,207 represents gain on foreign currency translation.

5.   PATENTS

     On May 31, 2005, ZQ Power-Tech issued 18,350,000 shares of stock
     with par value of RMB1 each to Mr. Fu Zhiguo in return for a
     patent transferred by Mr. Fu.  The patent was appraised by a PRC
     appraiser to have a value of $2,216,987 (equivalent to
     RMB18,350,000) on May 25, 2005.  As a result, the Company's
     interest in ZQ Power-Tech was diluted from 70% to 51.2% at the
     same date.

     On September 11, 2005, ZQ Power-Tech agreed with Mr. Fu to
     rescind the aforementioned transaction.  Mr. Fu is returning the
     shares to ZQ Power-Tech.  As a result, the Company now owns 70%
     of the capital stock of ZQ Power-Tech, as it did before the May
     31 transaction.

     Mr. Fu has also agreed to contribute the patent to the capital of
     ZQ Power-Tech without compensation.

6.   NET LOSS PER SHARE

     (i)     The basic net loss per share is calculated using the net
             loss and the weighted average number of common shares
             outstanding during the interim periods.


                            Three months ended          Nine months ended
                               September 30,              September 30,
                              2005      2004             2005       2004
                         -------------------------  --------------------------
     Net loss            USD(157,997) USD(246,172)  USD(1,100,494) USD(279,834)
                         ===========  ===========   =============  ===========
     Weighted average
      number of shares
      outstanding         25,337,116   10,328,321      23,450,589    9,707,902
                         ===========  ===========   =============  ===========
     Basic net loss per
      share                 USD(0.01)    USD(0.02)       USD(0.05)    USD(0.03)
                         ===========  ===========   =============  ===========

      (ii)    The diluted net loss per share is not presented as there
              was no dilutive effect for either interim period.

                                    -8-
<PAGE>

7.   SUPPLEMENTAL CASH FLOW INFORMATION

                                                   Nine months ended
                                                      September 30,
                                                  2005           2004
                                                   USD            USD
                                                ---------      ---------
     Interest paid                               114,411         10,369
     Income taxes                                      -              -

     Other than the above-mentioned information, during the nine
     months ended September 30, 2005, the Group had the following non-
     cash transactions:

     (i)     The Company issued 20,000 of its common stock to a
             consultant for the provision of consultancy work, the
             details of which are set out in note 3(ii).

     (ii)    The Company issued a total of 1,100,000 of its common stock
             to 4 employees for the provision of services, the details
             of which are set out in note 3(iii).

     (iii)   The Company's chairman Mr. Zhiguo Fu contributed a patent
             to the capital of ZQ Power-Tech without compensation, the
             details of which are set out in note 5.

8.   COMMITMENTS

     (i)     At September 30, 2005, the Group had capital commitments
             amounting to $6,537 in respect of acquisition of property,
             plant and equipment which are contracted for but not
             provided in the financial statements.

     (ii)    At September 30, 2005, the Group had agreed to pay $135,937
             to Harbin Institute of Technology for the research and
             development of polymer lithium-ion batteries for motor
             vehicles.

9.   WARRANTIES

     The Group warrants that all batteries manufactured by it will be
     free from defects in material and workmanship under normal use
     for a period of one year from the date of shipment.  The Group's
     experience for costs and expenses in connection with such
     warranties has been minimal and during the nine months ended
     September 30, 2005, no amounts have been considered necessary to
     reserve for warranty costs.

10.  RELATED PARTY TRANSACTIONS

     During the period ended September 30, 2005, the Group sold goods
     amounting to $618,744 to a related company in which a director of
     the Company has a controlling interest. The transaction was
     entered into in the normal course of business and on normal
     commercial terms.

                                    -9-
<PAGE>

Item 1.	Management's Discussion and Analysis or Plan of Operation
        Forward Looking Statements

     The information in this discussion contains forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended.  These forward-looking statements include statements
regarding our capital needs, business strategy and expectations.  Any
statements contained herein that are not statements of historical facts
may be deemed to be forward-looking statements.  Readers are cautioned
that there are risks and uncertainties which may cause actual future
results to differ from the results anticipated in these forward-looking
statements. A detailed discussion of some of the risks that may cause
such a difference has been set forth in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 2004 in the section
numbered "Item 6" under the heading "Risk Factors That May Affect
Future Results." Readers are cautioned not to place undue reliance on
these forward-looking statements, which reflect management's opinions
only as of the date hereof. We disclaim any obligation to publicly
update these statements, or disclose any difference between its actual
results and those reflected in these statements.

     RECENT BUSINESS EVENTS

     Business Overview

     Advanced Battery Technologies, Inc. is a holding company with one
subsidiary:   Cashtech Investment Limited, a British Virgin Islands
corporation.  Cashtech Investment Limited has only one asset, which is
70% of the capital stock of Heilongjiang ZhongQiang Power-Tech Co.,
Ltd., a China limited liability company ("ZQ Power-Tech").

     ZQ Power-Tech designs, manufactures and markets rechargeable
polymer lithium-ion ("PLI") batteries.  PLI batteries produce a
relatively high average of 3.8 volts per cell, which makes them
attractive in terms of both weight and volume.  Additionally, they can
be manufactured in very thin configurations and with large footprints.
PLI cells can be configured in almost any prismatic shape, and can be
made thinner than 0.0195 inches (0.5 mm) to fill virtually any shape
efficiently.  The Company's products include rechargeable PLI batteries
for electric automobiles, motorcycles, mine-use lamps, notebook
computers, walkie- talkies and other personal electronic devices.

     ZQ Power-Tech focused its initial marketing activities in
Southeast Asia, primarily China, Taiwan and Japan in 2004. After we
expanded our manufacturing capacity in April 2005, ZQ Power-Tech
started to expand its marketing efforts in North America and worldwide.
In June 2005, ZQ Power Tech. started to establish a network of sales
offices in the Middle East and Africa by an agreement with IGT, Inc. of
Dubai, U.A.E.

     Polymer Lithium Ion Battery Development Program

     On November 10, 2005, the Company announced that the
manufacturing and product tests using Altair Nanotechnologies Inc.'s
nano-structured lithium titanate spinel electrode materials have been
successful. The company announced further progress in its Polymer
Lithium Ion Battery Development Program:

     1. Advanced Battery Technologies has contracted with Harbin
     University of Science and Technology to design the electrical
     controls and management system for a sedan conversion using Altair's
     advanced nanotechnology electrode materials in its lithium polymer
     batteries.

     2. Advanced Battery Technologies also has entered into a cooperative
     agreement with the Beijing Institute of Technology for the
     development and testing of four electric buses to be built by
     Advanced Battery as prototypes for the 2008 Olympic Electric Bus
     Program.
                                   -10-
<PAGE>

     Cooperation with BIT to Develop All-electric Buses

     On September 7, 2005, ZQ Power-Tech signed a cooperation contract
with the Beijing Institute of Technology ("BIT") to develop all-
electric buses with enhanced power systems and design, including the
building of low and super-low floors to facilitate and expedite
customer use.  The buses are being designed to operate in large and
mid-sized cities, both in China and abroad.

     The cooperation agreement provides that BIT will provide the
technology and ABAT will build the prototypes. The buses will use
ABAT's advanced rechargeable PLI batteries.  BIT will design the
materials and develop the manufacturing procedures. The agreement also
envisions the development of buses for long distance travel, with
enhanced design and comfort.

     The timelines require the completion of the low floor and super-
low floor prototypes in the first half of 2006, with testing to be
completed in August 2006.  Once testing is complete, ABAT will both
supply the batteries and manufacture the buses. The parties expect to
showcase their all-electric bus at the 2008 Olympics.

     ABAT's Holding Percentage Changed

     On May 31, 2005, ZQ Power-Tech issued 18,350,000 shares of stock
with par value of RMB1 each to Mr. Fu Zhiguo in return for a patent
transferred by Mr. Fu.  The patent was appraised by a PRC appraiser to
have a value of $2,216,987 (equivalent to RMB18,350,000) on May 25,
2005.   The patent provides ZQ Power-Tech with the core technology that
distinguishes its batteries from those of competitors.  As a result of
the transaction, the Company's interest in ZQ Power-Tech was diluted
from 70% to 51.2% at the same date, which constituted a deemed disposal
by the Company of its partial interest in ZQ Power-Tech.

     On September 11, 2005, ZQ Power-Tech agreed with Mr. Fu to rescind
the aforementioned transaction.  Mr. Fu is returning the shares to ZQ
Power-Tech.  As a result, the Company now owns 70% of the capital stock
of ZQ Power-Tech, as it did before the May 31 transaction.

     Mr. Fu has also agreed to contribute the patent to the capital
of ZQ Power-Tech without compensation.

     New Employees Training

     The Company finished the training of the newly hired 900 employees,
which started in the second quarter. As a result, the new production
lines can now reach their anticipated manufacturing capacity, and the
Company can now manufacture enough products to begin to satisfy its
backlog of orders.

     RESULTS OF OPERATIONS

     Revenues

     During the first quarter of this year, the Company closed its old
production lines to focus on completion of a new production facility.
The Company completed its new production facility in the second quarter,
then focused on the fine tuning of the new production lines and the
training of newly hired employees.  As a result, revenues during the
first and second quarters of 2005 were minimal.  Most revenues for the
nine months ended September 30, 2005 were generated in the third
quarter, especially in September 2005.

     Revenues for the three months ended September 30, 2005 were
$1,337,027, as contrasted with revenue of $116,383 for the three months
ended September 30, 2004.  Revenues for the nine months ended September
30, 2005 were $1,604,795, compared to revenues of $1,085,058 during the
first nine months of 2004. The increases were due to the completion in
August 2005 of the process of training new employees to man the
production lines installed in the Spring of 2005.  With the new staff
of trained employees, our production lines are now reaching their
anticipated manufacturing capacity.  In September 2005, therefore, the
Company made bulk shipments of products that represented 75% of the
Company's revenue for the first nine months of 2005.  We expect revenue
to continue to grow, as we begin to satisfy our backlog of orders.

     Selling, general and administrative expenses

     Selling, general and administrative expenses for the three months
ended September 30, 2005 were $524,050 and for the three months ended
September 30, 2004 were $284,476. Likewise, the Company incurred
selling, general and administrative expenses of $1,509,940 in the nine
months ended September 30, 2005, compared to selling, general and
administrative expenses of $646,337 in the first nine months of 2004.
The increase during 2005 was due to the expansion of facilities and the
increase in the number of employees.  In addition, during 2005 we
amortized $1,070,506 of prepaid expenses attributable to stock that we
issued in 2004 and 2005 to certain consultants and employees.

     Net Loss

     Net loss for the three months ended September 30, 2005 was
$157,997, compared to net loss of $246,172 realized in the three months
ended September 30, 2004. Net loss for the nine months ended September
30, 2005 was $1,100,494, compared to a net loss of $279,834 in the nine
months ended September 30, 2004.The increase of net loss was due to the
increase in expenses related to capacity expansion and the amortization
of prepaid expenses.
                                   -11-
<PAGE>

     LIQUIDITY AND CAPITAL RESOURCES

     Until December 2004, the development and initial operations of ZQ
Power-Tech were financed primarily by contributions to capital made by
Zhiguo Fu, the Company's Chairman. On December 1, 2004, ZQ Power-Tech
entered into a Loan Agreement with Harbin Commercial Bank, and received
a loan of RMB20 million (approximately $2.4 million).  The Loan
Agreement requires that half of the principal be paid in a balloon in
November 2005 and half in November 2006.  Interest at 8.064% per annum
is payable monthly.  $1.9 million of the obligation is secured by a
pledge of ZQ Power-Tech's manufacturing facilities; the remainder of
the debt is secured by a pledge of our realty assets.

     The arrangement with Harbin Commercial Bank provided ZQ Power-Tech
with working capital.  Nevertheless, the expansion of its manufacturing
facilities that has been ongoing since early 2004 required that Mr. Fu
and two business associates contribute $4,832,976 to fund construction.
In January 2005 Advanced Battery compensated Mr. Fu and his associates for
70% of that contribution by issuing them a total of 11,276,947 common
shares.

     Despite its negative working capital, the Company believes that it
has sufficient liquidity to fund its near-term operations.  The
principal capital resource available is $12,472,190 in property, plant
and equipment, construction in process, related deposits and real
property rights, which ZQ Power-Tech owns subject only to the Harbin
Commercial Bank lien for $2.4 million.  Based on the substantial
backlog of orders that ZQ Power-Tech has accumulated, it believes that
additional secured financing will be available to it on favorable terms
when needed. Until then, if short-term cash shortages occur, Mr. Fu has
committed to provide financing as needed.

     Based upon the financial resources available to ZQ Power-Tech,
management believes that it has sufficient capital and liquidity to
sustain operations for the foreseeable future.

Item 3.	Controls and Procedures

     We carried out an evaluation, under the supervision and with the
participation of our management, including our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and
operation of our disclosure controls and procedures as of the end of
the period covered by this report.  The evaluation was undertaken in
consultation with our accounting personnel.  Based on that evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that
our disclosure controls and procedures are currently effective to
ensure that information required to be disclosed by us in the reports
that we file or submit under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms.
As we develop new business or if we engage in an extraordinary
transaction, we will review our disclosure controls and procedures and
make sure that they remain adequate.

     There were no changes in the internal controls over our financial
reporting that occurred during the period covered by this report that
have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.

                                   -12-
<PAGE>

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings


Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds


Item 3.	Defaults Upon Senior Securities


Item 4.	Submission of Matters To a Vote of Security Holders


Item 5.	Other Information


Item 6.	Exhibits

     Exhibits

     31.1  Certification of the Chief Executive Officer pursuant to
           Section 302 of the Sarbanes-Oxley Act of 2002

     31.2  Certification of the Chief Financial Officer pursuant to
           Section 302 of the Sarbanes-Oxley Act of 2002.

     32.1  Certification of the Chief Executive Officer pursuant to
           Section 906 of the Sarbanes-Oxley Act of 2002.

     32.2  Certification of the Chief Financial Officer pursuant to
           Section 906 of the Sarbanes-Oxley Act of 2002.

                                  -13-
<PAGE>

                               SIGNATURES

     In accordance with Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                              ADVANCED BATTERY TECHNOLOGIES, INC.
                              (Registrant)

Date:  November 14, 2005      By: /s/ Zhiguo Fu
                              ------------------------------------
                              Name:  Zhiguo Fu
                              Title: Chief Executive Officer and
                                     Chairman of the Board


Date:  November 14, 2005      By: /s/ Guohua Wan
                              -------------------------------------
                              Name:  Guohua Wan
                              Title: Chief Financial Officer