Document:

Exhibit 10.3

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

                       Guaranty Contract of Maximum Amount

                         No. (Shenzhen Longgang) Nongyin Gaobaozi (200502379999)

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 a serial of Loan  Agreements  (hereinafter
referred to as "Loan Agreements") within the period and under the maximum amount
as stipulated in Clause I of this Contract.  The Guarantor undertakes to provide
guaranty  for the  indebtedness  of the Obligor  under the Loan  Agreements.  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

1.   The Guarantor  undertakes to provide guaranty for the indebtedness  owed by
     the Obligor to the Creditor derived from the agreed  operations from 20 May
     2005 to 20 May 2006.  The balance of the aforesaid  indebtedness  shall not
     exceed RMB Two Hundred Million yuan and  indebtedness  in foreign  currency
     shall  be  calculated  according  to the  selling  price on the date of the
     operation.  The mature date of the aforesaid  indebtedness shall not exceed
     20  November  2006.  The  abovementioned   operations   include:   Loan  in
     RMB/Foreign  Currency;  Issuance of L/C without or with reduced of deposit;
     exporter's  packing  loan;   discount  of  bank/commercial   draft;  inward
     documentary bill; outward  documentary bill; bank guarantee;  acceptance of
     bank draft.

<PAGE>

2.   The  Obligor  is  entitled  to  apply  for  revolving  utilization  of  the
     abovementioned  bank  credit  facilities  within  the  period and under the
     maximum amount as stipulated in this Contract.  The beginning date,  mature
     date,  interest rate and amount of each indebtedness shall be determined by
     the  loan  certificate  or  relevant  credit  certificate  under  the  Loan
     Agreements.

3.   The Parties do not need to enter into individual  guaranty  arrangement for
     each of the bank loan or bank facility  granted by the Creditor  within the
     period and under the maximum amount as stipulated in this Contract.

4.   The  operations  may be carried  out in any  currency  and the  Guarantor's
     guaranty is for the indebtedness in the original currency.

II.   Scope of Guaranty

The  guaranty  under  this  Contract  shall  cover  all of the  loan  principal,
interest, penalty 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.  The  Guarantor  shall also bear joint and
several  liability for the  indebtedness of the Obligor which exceeds the agreed
maximum amount due to fluctuation of exchange rate of foreign currency.

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  guarantor  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.

<PAGE>

2.   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.

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

4.   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.

5.   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;

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

3.   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.

<PAGE>

4.   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.

5.   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.
     (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.

6.   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.

<PAGE>

7.   In case that the Obligor and Guarantor breach their  obligations  under the
     Loan Agreement or this  Contract,  the Creditor is entitled to declare that
     the  indebtedness of the Obligor all become mature and demand the Guarantor
     to perform his/her obligation of guaranty of joint and several liability in
     accordance with this Contract.

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

1.   The Guarantor  shall find out on his/her own initiative the business status
     of the Obligor and occurrence and performance of the operations  under this
     Contract.   The  Loan  Agreement,   loan  certificate  or  relevant  credit
     certificate  for the  operations  under this  Contract will not sent to the
     Guarantor separately.

2.   This Contract is to secure the indebtedness under the Comprehensive  Credit
     Facility  Agreement of Maximum  Amount  (reference  no.  Shenzhen  Longgang
     Nongyin Shou Zi 200502370001) entered into by the Obligor and Creditor.

<PAGE>

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 and
the Creditor  shall retain three  originals.  Each original  shall have the same
legal effect.

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: 20 May 2005
Venue of Execution: Longgang, ShenzhenExhibit 10.4

                                                                         Summary
                                                                         -------

Summary of Loan  Agreement by and between  Shenzhen  BAK Battery  Co.,  Ltd. and
Longgang Branch, Agricultural Bank of China dated March 21, 2005.

Main contents:
>>   Contract No. (Shenzhen Longgang) Nong Yin Jie Zi (81101200500000299)
>>   Loan Amount (RMB) 20million yuan
>>   Contract Term: 21th March 2005 - 21th September 2005
>>   Interest rate: 5.22%
>>   Repayment:  principal  and  interest  are  payable  six months from date of
     agreement
>>   Purpose: Working capital
>>   Liabilities of Breach of Contract:  Breach of contract penalty;  withdrawal
     of loan,  prepayment of principal and interest before maturity,  attachment
     of assets; imposition of compound interest; lawyer's fee and travel cost in
     case of litigation due to the Company 's breach of contract etc.

Terms that have been omitted:  types of the loan; clearing of the loan interest;
condition  precedent to the drawing of the loan;  rights and  obligations of the
borrower;  rights  and  obligations  of the  lender;  prepayment  of  the  loan;
guarantee  of  the  loan;  dispute  settlement;  miscellaneous;   effectiveness;
validity; and attention.

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