China Sun Group Hi-Tech Co. (CSGH)

[Ecomike]

But if you already had controlling interest, you already control the company, your salary, and there is no need to take it private to take control. Most would want a public market to be able to raise cash, and have a way to liquidate holdings someday. Yes, there are Pros and Cons to being public, but short of reducing operating costs if you were struggling (which CSGH is not), I don't see why they would want to steal the remaining part of their own company and reduce their liquidity in the process, except if driven to so do by market forces.

From that 10-K I see this, which explains a lot!!!!!

Cash and Cash Equivalents

Our cash and cash equivalents were $18,017,266 at the beginning of the year ended May 31, 2011, and increased to $21,810,394 at May 31, 2011, an increase of $3,793,128 or 21%. This net change in cash and cash equivalents represents the combined effects of cash generated in the total amount of $10,190,968 from operating activities, offset by cash used in the total amount of $7,442,431 from investing activities and effects of exchange rate changes of $1,044,591 for the year ended May 31, 2011.

On May 31, 2011, the majority of our cash was held in RMB denominated bank deposits with the PRC financial institution.

Our decision to maintain high cash reserves is mainly based upon (1) the projected need for new manufacturing equipment for lithium iron phosphate production in fiscal 2012 estimated to be approximately $7.44 million , (2) the projected conversion of two additional lithium iron phosphate production lines during Q2 of fiscal year 2012 and the relevant capital expenditure forecasted to be approximately $8 million, and (3) the projected purchase of new R&D equipment in the amount of approximately $3 million in fiscal year 2012.

Capital expenditures have historically been necessary to expand the production capacity of our manufacturing operations. Our prospective increase in both production lines and R&D are primarily due to the projected increased demand of our principal product lithium iron phosphate. On the basis of our current cash balances and outlook for the upcoming fiscal year, we believe we have sufficient cash resources to fund the expansion of our lithium iron phosphate production lines from 700 tons to 1,000 tons per annum.