China Sun Group Subsidiary Wins Two Contracts Valued at $16.2 Million in Annual Revenue
September 24 2008 - 8:30AM
PR Newswire (US)
LIAONING PROVINCE, China, Sept. 24 /PRNewswire-FirstCall/ -- China
Sun Group High-Tech Co. ("China Sun Group") (OTC:CSGH) (BULLETIN
BOARD: CSGH) announced today that its wholly-owned subsidiary,
Dalian Xinyang High-Tech Development Co. Ltd ("DLX"), which has the
second largest cobalt series production capacity in the People's
Republic of China ("PRC"), has entered into two separate one-year
purchase and sales agreements with Shenzhen Haoran Battery Co.,
Ltd. ("Haoran Battery"). Under the terms of the first contact, DLX
will supply Haoran Battery with 20 tons of lithium cobalt oxide per
month beginning in November 2008. Based on the current market price
of lithium cobalt oxide at USD $58,823.50 per ton (400,000
Yuan/ton), which may be adjusted subject to market conditions, DLX
expects to generate sales of approximately $1,176,470 per month
(8,000,000 Yuan/month) or approximately $14.1 Million per year
(96,000,000 Yuan/year). Under the second contract, DLX has agreed
to supply Haoran Battery with 20 tons of lithium manganese oxide.
At a current price of $8,823.50/ton (60,000 Yuan/Ton), which may be
adjusted based on market conditions, DLX expects to generate sales
of USD$176,470/month (1,200,000 Yuan/month) or approximately
USD$2.1 Million per year (14,400,000 Yuan/year). "Haoran Battery is
one of the world's leading suppliers of power components used in
mobile phones and we are excited to add them to our roster of
customers. We are on schedule to begin fulfilling their orders for
lithium cobalt oxide and lithium manganese oxide in November 2008.
Combined, the contracts with Haoran Battery are expected to add an
annual revenue of $16.2 million," said Bin Wang, Chief Executive
Officer of the China Sun Group. About China Sun Group China Sun
Group High-Tech Co. produces anode materials used in lithium ion
batteries. Through its wholly-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 cobalt series production capacity in the People's
Republic of China. Through its research and development division,
DLX owns a proprietary series of nanometer technologies that supply
state-of-the-art components for advanced lithium ion batteries.
Leveraging its state-of-the-art technology, high-quality product
line and scalable production capacity, the Company 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/Demo_en.asp.
Safe Harbor Statement The statements contained herein that are not
historical facts are considered "forward-looking statements." Such
forward-looking statements may be identified by, among other
things, the use of forward-looking terminology such as "believes,"
"expects," "may," "will," "should," or "anticipates" or the
negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy that involve risks and
uncertainties. In particular, statements regarding the potential
growth of the markets are examples of such forward-looking
statements. The forward-looking statements include risks and
uncertainties, including, but not limited to, the effect of
political, economic, and market conditions and geopolitical events;
legislative and regulatory changes that affect our business; the
availability of funds and working capital; the actions and
initiatives of current and potential competitors; investor
sentiment; and our reputation. We do not undertake any
responsibility to publicly release any revisions to these
forward-looking statements to take into account events or
circumstances that occur after the date of this report.
Additionally, we do not undertake any responsibility to update you
on the occurrence of any unanticipated events, which may cause
actual results to differ from those expressed or implied by any
forward-looking statements. The factors discussed herein are
expressed from time to time in our filings with the Securities and
Exchange Commission available at http://www.sec.gov/. Contact:
China Sun Group Thomas Yang Assistant to the President Tel:
917-432-9350 (U.S.) or 86 411 8289-7752 (China) Fax: 86 411
8289-2739 e-mail: DATASOURCE: China Sun Group High-Tech Co.
CONTACT: Thomas Yang of the China Sun Group, Assistant to the
President, +1-917-432-9350, +86-411-8289-7752, Web Site:
http://http//www.china-sun.cn/Demo_en.asp http://www.china-sun.cn/
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