Replies to post #506 on China Sun Group Hi-Tech Co. (CSGH)

[2morrowsGains]

CSGH...Here's what is VERY impressive...

A company that just rolled off FY2009 $0.16 EPS, has no LT debt, nice cash position, and has absolutely huge growth potential in one of the hottest sectors there is...

From the 10k filing...

- Three battery manufacturers used our lithium iron phosphate (LiFePO4) to make their trial production of automotive power battery. They are Beijing Shuangsheng Sci-Tech Co., Ltd., Shangdong Shengong Battery New Technology Co., Ltd. and Hi-Power New Energy Group. From June of 2009, they have been testing the performance of the power batteries made of our lithium iron phosphate (LiFePO4). At the same time, these manufacturers also invited Dalian JiaoTong University and Dalian University of Technology to test these batteries. The testing is anticipated to be finished in late September 2009. The three manufacturers have sought, on a preliminary basis, to establish long-term procurement relationships with DLXY if the testing is successful.

- "In May 2009, we announced that a next generation “green” power source, lithium iron phosphate, had been developed by DLXY for use in batteries that power eco-friendly vehicles, like electric cars, hybrids and scooters. The first batch of lithium iron phosphate energy products came out of DLXY's production line in April 2009. The product successfully completed testing by two leading enterprises in the domestic power battery production industry, Shenzhen Shanshu Power Battery Technology Co., Ltd. and Zhangzhou Youke Energy Co., Ltd. These companies are now performing natural decay testing to determine the charge quality of batteries made with DLXY's lithium iron phosphate product."

- "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."

"DLXY (CSGH) is a large producer of cobaltosic oxide and lithium cobalt oxide, both anode materials for lithium ion batteries. According to the China Battery Industry Association, which conducts research of and puts forth reports on the battery industry, we have the second largest cobalt series production capacity in the People’s Republic of China."

- "Cobalt ore is for anode materials of lithium ion batteries is currently in short supply in the People’s Republic of China (Source:http://www.xiangmu.com/project/109/1943.html). In addition, cobaltosic oxide and lithium cobalt oxide continue to develop their presence, thus, presenting DLXY with noteworthy growth potential."
http://sec.gov/Archives/edgar/data/1298195/000101376209001595/form10k2.htm

Cobalt prices are up approx 40% over the last 3 months and going up more...http://www.metalbulletin.com/Article/2282244/NonFerrous/Cobalt-poised-for-gains-as-six-week-rally-in-FeMo-moly-oxide-ends.html

HERE'S THE REAL CLINCHER FROM THE 10k...

"During the fiscal year ended May 31, 2009, DLXY purchased interests in a cobalt ore mine in the Congo, with the anticipation that such interests would provide us with an additional supply of raw material and would also enable us to sell these materials to other enterprises in this industry.

Currently, the export of crude ore is prohibited in Africa. Therefore, building the primary processing plant of cobalt ore in Africa can avoid the export limitation, save freight and ensure a stable supply of raw material. We plan to start the construction of such a processing plant in Congo in the second quarter of the 2010 fiscal year. We anticipate that the construction of the plant will cost approximately $2,000,000 to $3,000,000. Once the processing plant is complete, we will benefit from reduced costs of raw materials and expect to be able to ensure a stable supply of raw material, which will provide us with a competitive advantage."

CSGH's second quarter of the 2010 fiscal year STARTS TUESDAY!!!!