China Sun Group Hi-Tech Co. (CSGH)

[2morrowsGains]

Connection or Coincidence...???...

From CSGH's FY2008 10k report...

- "Our target market includes lithium ion battery manufacturers, end product users, and lithium series product manufacturers throughout the world."

- "The potential customers we have approached and HAVE SHOWED STRONG INTEREST IN OUR PRODUCTS in the international market include: Tanaka, Honjo, HLST, SANYO, Sony, Panasonic, Nihonkagakusangyo, Maxell, LG, Samsung, SK, Hanhua and Light & Future."

Yesterday's News...

Toyota To Buy Lithium Ion Batteries From SANYO

- "Toyota Motor Corp will procure batteries for hybrid vehicles from Sanyo Electric Co, as its battery joint venture cannot keep up with demand, the Nikkei business daily reported."

- "Performance evaluations for the lithium ion batteries have already been conducted and the companies will now make preparations for mass production, including installation"
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBNG37419020090818

Not sure if there is a Sanyo/CSGH connection, but the highlighted paragraph above is probably worth noting
along with the fact that Toyota's battery joint venture cannot even keep up with demand! This lithium iron (ion) phosphate boom is just getting started IMO, and I'm sure many investors are not even aware of CSGH...........yet.

BTW, this is also from the FY2008 10k...

"The major consuming countries in the global market are Japan and Korea. However, with the improvement of the People’s Republic of China’s production and technology and the market advantage, Japan’s Diacelltec, Sanyo, Sony and Panasonic have successively relocated their production bases to the People’s Republic of China, Korea’s LG, Samsung and SK have also established major procurement centers in the People’s Republic of China."

And since Sanyo relocated their production base to the People’s Republic of China, are they now considered a "domestic" company?...

"In little over a month, DLX has signed sample testing agreements with eight enterprises in Shandong Zaozhuang, Hai Ba, Beijing Zhongke, Sha'anxi and in other major Chinese provinces. These enterprises represent our core market for using our new eco-friendly lithium iron phosphate material. Following testing, we plan to begin mass marketing our product domestically."
http://www.reuters.com/article/pressRelease/idUS174285+18-May-2009+PRN20090518

I'm not an expert here but I'm even starting to wonder if the new Sony battery is somehow connected to CSGH...

New Sony Breakthrough Boosts Batteries by 4x

- "The Olivine-type lithium iron phosphate is in a more robust crystal format which remains stable even at high temperatures."
http://www.rethink-wireless.com/?article_id=1807

From CSGH's web site...

Products Name: High-crystallinity spheric lithium cobalt oxide
Category: Anode material

High-crystallinity spheric lithium cobalt oxide is mainly used as anode material of lithium ion battery. The cobaltic material for processing high-crystallinity spheric lithium cobalt oxide is from our self-produced battery level cobaltosic oxide whose superior chemical and physical performances are quite suitable to produce lithium cobalt oxide.

The production technology of high-crystallinity spheric lithium cobalt oxide has been awarded proprietary intellectual property rights. Due to special designed equipment in production flow the quality of cobaltosic oxide has achieved international leading level. Its chemical performance, physical performance and electrochemical performance are excellent, and suitable to produce lithium ion battery.
http://www.china-sun.cn/eshowProDetail.asp?ProID=1473

Not sure if CSGH has anything to do with recent announcements from Sanyo and Sony, but it's seems clear from the remark in last years 10k, that CSGH is building nice relationships with some pretty big names in the business...

"The potential customers we have approached and HAVE SHOWED STRONG INTEREST IN OUR PRODUCTS in the international market include: Tanaka, Honjo, HLST, Sanyo, Sony, Panasonic, Nihonkagakusangyo, Maxell, LG, Samsung, SK, Hanhua and Light & Future.
http://sec.gov/Archives/edgar/data/1298195/000101376208001880/form10k.htm

All the above is just my opinion.
We'll see what happens.