NEW PR FIRM
DALIAN, China, April 8, 2010 /PRNewswire via COMTEX/ -- China Sun Group High-Tech Co., Ltd. (CSGH) ("China Sun Group" or the "Company"), a vertically integrated supplier of cobalt-based raw materials for rechargeable Lithium-ion (Li) batteries in China announced today that it has retained CCG Investor Relations to design and execute its investor relations campaign.
"We look forward to working closely with CCG to establish and enhance our profile in the US investment community and improve our communication with investors, media outlets and our shareholders," said Bin Wang, Chairman and CEO of China Sun Group. "Given CCG's track record of professional experience representing a wide spectrum of high growth, US-listed Chinese companies, we are confident that our new partnership will help us build long term shareholder value."
China Sun Group, through its 100% owned operating subsidiary, Dalian Xinyang High-Tech Development Co., Ltd. ("DXL"), is engaged in the production and sales of raw materials (cobalt carbonate and cobaltosic oxide), and anode materials (lithium cobalt oxide), for Li batteries. The Company is the second largest non-government manufacturer of hi-tech cobalt products in Asia based on tons produced. DXL is also conducting trials for new ternary anode materials (lithium iron phosphate) to develop alternatives to the sole use of cobalt in Li batteries. In addition, the Company has recently initiated construction of an R&D facility, equipped with cutting-edge inspection and testing instruments for the purpose of quality control maintenance and quality assurance.
China Sun Group has a vertically integrated production platform, from mining and procurement to the assembly and distribution of anode materials for Li batteries. The Company expects to benefit from a stable supply of low cost raw materials from domestic sources.
China Sun Group is well positioned for continued growth since according to the Battery Industry Association of China, the Li battery industry in China is expected to grow at a 40% CAGR (based in units) driven by growing demand for portable products like mobile phones, laptops, and most importantly the new and fast growing energy automation industry.
For the year ended May 31, 2009 sales increased 46% year-over-year to $37 million, and net income rose 25% year-over-year to $8.6 million or $0.16 per diluted share, driven by new sources of sales channels and increased sales to customers due to strong demand for materials used in Li batteries. China Sun Group's balance sheet is strong with $11.7 million in cash and equivalents and no debt as of November 30, 2009. The Company generated $4.8 million of operating cash flow in the first half of fiscal 2010.
"With a solid management team focused on execution of its business plan, we look forward in supporting China Sun Group as it embarks on the next stage of growth, including capacity expansion, key acquisitions, penetration in international markets and technological improvements," commented Crocker Coulson, president of CCG Investor Relations. "The Company is well positioned within the fast growing Li battery market."
