LIAONING PROVINCE, China, Sept. 6 /PRNewswire-FirstCall/ -- China
Sun Group High-Tech Co., (OTC:CSGH.OB) (BULLETIN BOARD: CSGH.OB)
("China Sun"), formerly known as Capital Resource Funding Corp.,
announced today its audited financial results for the fiscal year
ended May 31, 2007. All results presented herein are represented in
U.S. Dollars. Full details are available on Form 10-KSB filed at
http://www.sec.gov/. Highlights -- Revenue increased eight-fold to
$8,275,066 compared to $277,715 for the year ended May 31, 2006 --
Income from operations grew to $1,400,18 compared to loss from
operations of $343,950 for the year ended May 31, 2006 -- Net
Income increased to $529,086 or $0.01 per share compared to a net
loss of $127,601 or $(0.01) per share reported in fiscal 2006 "I
enthusiastically report that in our first year of operations we
achieved impressive revenue growth and profitability," said Bin
Wang, CEO of China Sun Group. "In April 2006, our subsidiary DLX
commenced production and quickly amassed sales of over $1.5
million. Our strong performance in fiscal 2007 indicates we can
continue to drive sales momentum by servicing manufacturers with
the highest quality components for lithium ion battery circuitry."
Accomplishments in Fiscal 2007 -- Successfully acquired, integrated
and commenced operations of majority- owned subsidiary Da Lian Xin
Yang High-Tech Development Co. Ltd ("DLX") based in China. DLX is
the second largest non-governmental manufacturer of high-tech
cobalt series products in Asia, according to the Chinese Battery
Industry Association. -- DLX served six leading battery producers
in China since production began in April 2006. These customers are:
Hunan Shanshan Advanced Material; CITIC Guoan Mengguli Corporation;
Hunan Reshine New Material Co., Ltd.; Changzhou PowerGenie
Materials Co., Ltd.; Xiamen Tungsten Co., Ltd.; and Beijing
Easpring Material Technology Co., Ltd., one of which accounted for
76% of total revenues. -- During 2007, China Sun launched various
marketing campaigns resulting in adding several new customers
including: Zhejiang Tianhong Energy Technology Co., Ltd.; Zhejiang
Wanma Battery Co., Ltd.; Guangzhou Huaneng Battery Co., Ltd.; and
Shenzhen Sunristar Electronics Co., Ltd. In the international
market, China Sun approached potential customers such as Panasonic,
Sanyo, Maxell and Samsung. -- Began construction on a
state-of-the-art R&D test and detection center, equipped with
detection and test apparatus and instruments. The center will be
used to conduct internal product quality controls reviews and keep
abreast of the latest technological developments. Financial Results
Revenues for the year ended May 31, 2007 totaled $8,275,066
compared to $277,715 for the year ended May 31, 2006, an increase
of $7,997,351. The increase resulted from new sources of sales
channels and market demand from business development of new
customer. Cost of revenues for the year ended May 31, 2007 totaled
$4,758,023 compared to $Nil for the year ended May 31, 2006.
General and administrative expense for the year ended May 31, 2007
totaled $1,247,533 compared to $163,341 for the year ended May 31,
2006, an increase of $1,084,192. The increase resulted from the
allowance of a doubtful account of $777,831 and the overhead for a
new office setup in the United States. Research and development
expense for the year ended May 31, 2007 totaled $89,166 compared to
$83,000 for the year ended May 31, 2006, an increase of $6,166. The
increase resulted from the continuous development of new products
and advancement of manufacturing methods. Income from operations
for the year ended May 31, 2007 totaled $1,400,185 compared to a
loss from operations of $343,950 for the year ended May 31, 2006,
an increase of $1,744,135. The increase resulted from growth in
sales. During the years ended May 31, 2007 and 2006, net cash used
for operating activities was $730,162 and $651,081, respectively.
During fiscal 2007, operating funds were primarily used for working
capital and increase the balance of trade accounts receivable. Net
cash used for investing activities was $72,764 and $5,836, for the
years ended May 31, 2007 and 2006, respectively. During fiscal
2007, investing funds were primarily used for the purchase of plant
and equipment. Net cash received from financing activities was
$1,297,272 and $542,623, for the years ended May 31, 2007 and 2006,
respectively. During fiscal 2007, financing funds were primarily
received from the settlement of the amount due from a related
party. Recent Developments -- Entered into a contract with the
Japanese company Honjo Chemical Co. to supply them with a fixed
amount of 20 tons of cobaltosic oxide every month, for 12-months,
beginning in July 2007. The price of the cobaltosic oxide to be
purchased will be based on the London Metal Bulletin (MB)
(http://www.lme.co.uk/). China Sun projects the order will deliver
monthly sales of approximately $1,050,000 per month, resulting in
total revenues of approximately $12.6 million over a one-year
period. -- In the international market, DLX approached several
potential customers who have shown strong interest in its product
line including: Tanaka, Honjo, HLST, Sanyo, Sony, Panasonic,
Nihonkagakusangyo, Maxell, LG, Samsung, SK, Hanhua and Light &
Future. -- Through its R&D group, China Sun has successfully
acquired nanometer technologies to create the following three
series of nanometer metal products: Nanometer Simple Metal
Substance; Nanometer Compound Metal Substance; and Nanometer Metal
Alloy. These innovative technologies will help meet new demand for
state-of-art applications in anode materials. -- In June 2007, DLX
entered into a Contract of Cooperation to purchase 80% of the
mining and prospecting rights to cobalt mine owned by Shengbao
Group and South African Shengbao Mining Enterprises (collectively
"Shengbao") in Lubumbashi, Katanga, Democratic Republic of Congo.
Shengbao will own the remaining 20% and will be given the right to
purchase any surplus cobalt mined, once DLX has filled its backlog
of orders. DLX plans to set-up its own facility near the mine to
produce finished cobalt products from raw cobalt ore in Africa. The
processing facility is designed increase the extraction rate of the
cobalt, and decrease production costs by creating a direct channel
from the mine to the processing plant. -- The Embassy of the Congo
Government visited Capital Resource in August 2007 to discuss
government investment strategy in DLX's mining and production
facility in Africa. The Embassy indicated their strong support and
future collaboration in helping DLX achieve its goals. -- Executive
management team of China Sun completes the world-leading training
and consultation program Six Sigma Management -- Receives
Preliminary Accreditation from the State Intellectual Property
Office of the People's Republic of China -- Effected a corporate
name change from Capital Resource Funding Corp. to China Sun Group
High-Tech Co. to better reflect its corporate identity in the
high-tech global lithium battery manufacturing industry and was
assigned a new trading symbol of CSGH. Mr. Wang commented on the
Company's business outlook, "DLX has the expertise and sizable
production capacity to support our existing and new customers. The
acquisition of the Congo mine, establishment of a comprehensive
supply chain for lithium ion batteries and components, and new
capabilities incorporating nano-technologies, should increase our
market share among lithium ion manufacturers and end users of
finished products worldwide. We are on track to substantially grow
our revenues and earnings in fiscal 2008 and beyond." About China
Sun Group High-Tech Co. China Sun Group High-Tech Co., formerly
known as Capital Resource Funding, produces anode materials used in
lithium ion batteries. Through its majority- owned operating
subsidiary, Da Lian Xin Yang High-Tech Development Co. Ltd ("DLX"),
the Company primarily produces cobaltosic oxide and lithium cobalt
oxide. According to the China Battery Industry Association, DLX has
the second largest non-governmental manufacturer of high-tech
cobalt series products in Asia. Through its R&D group, DLX owns
a proprietary series of nanometer technologies that supply
state-of-the-art components for advanced lithium ion batteries.
Leveraging its technological leadership in China, high-quality
product line and scalable production capacity, DLX plans to create
a fully integrated supply chain from the primary manufacturing of
cobalt ore to finished products, including lithium ion batteries.
For more information, visit
http://www.china-sun.cn/English/Aboutus.asp. Safe Harbor Statement
Statements in this press release which are not historical data are
forward-looking statements which involve known and unknown risks,
uncertainties or other factors not under the company's control,
which may cause actual results, performance or achievements of the
company to be materially different from the results, performance or
other expectations implied by these forward-looking statements.
These factors include, but are not limited to, those detailed in
the company's periodic filings with the Securities and Exchange
Commission. DATASOURCE: China Sun Group High-Tech Co. CONTACT:
Thomas Yang, Assistant to the President, China Sun Group High- Tech
Co., Tel: +1-917-432-9350, U.S. or +86-411-8289-7752, China, Fax:
+86-411-8289-2739, ; or Investor Relations: Peter Clark, OTC
Financial Network, Tel: +1-781-444-6100 ext. 629, , for China Sun
Group High-Tech Co. Web site: http://www.china-sun.cn/
http://www.otcfn.com/csgh
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