China Sun Group High-Tech Co. Announces Operational Strategy to Address Global Economic Challenges
December 05 2008 - 2:15PM
PR Newswire (US)
LIAONING PROVINCE, China, Dec. 5 /PRNewswire-FirstCall/ -- China
Sun Group High-Tech Co. (OTC:CSGH) (BULLETIN BOARD: CSGH) ("China
Sun Group") which, through its wholly-owned subsidiary, Dalian
Xinyang High-Tech Development Co. Ltd ("DLX") has the second
largest cobalt series production capacity in the People's Republic
of China ("PRC"), today announced its operational plan to address
the challenges of a world economic crisis. Bin Wang, CEO of China
Sun Group, said, "We believe we have taken the necessary steps to
maintain a steady growth despite a prevailing economic downturn.
The progress DLX has made to-date, include cost reductions from new
production lines, and new commercial product development. These
factors have created a strong foundation for DLX to sustain
operations despite an inevitable downturn in the demand for lithium
ion batteries worldwide." Mr. Wang highlighted the major points of
DLX's operational plan as follows: 1. Leverage Brand Equity. DLX
plans to leverage off the strengths of its strong brand
recognition. In November 2008, the China Brand Management Promoting
Committee awarded DLX's "Tong Tong" brand of cobaltosic oxide and
lithium cobalt oxide series of products the titles of "Priority
Choice of Government Procurement" and "Chinese Famous Brand of
Qualified Battery Materials." This distinction is an endorsement of
DLX's leadership role in technology innovation and production of
its brand of cobaltosic oxide and lithium cobalt oxide products and
firmly establishes it ahead of its competitors. 2. Reduced Cost of
Production. Processing time has been shortened and costs reduced as
a result of innovation by DLX's internal research & development
team. 3. Capitalize on Emerging Markets. DLX is plans to partake in
projects like "Household Electric Appliances to Rural Areas," a
government initiative that seeks to cooperate with cell phone
battery manufacturers worldwide to supply it with the raw materials
to bring new communication technology to underserved and rural
areas in China. This initiative is anticipated to drive up
production levels for DLX's battery components. 4. Commercial
Product Launch. DLX's "Tong Tong" brand of lithium iron phosphate,
which was awarded the title of "Priority Choice of Government
Procurement" and "Key Promoting Product of High-Tech Industry" by
China Brand Management Promoting Committee in November 2008, is
scheduled for commercial release at the end of March of 2009. With
this new product line, DLX takes in early position in bringing
advanced battery component technology to market. Lithium iron
phosphate batteries are safer, have a lower cost of materials, are
eco-friendly, and have greater power efficiencies compared to
lithium cobalt oxide batteries. 5. Finished Goods Production. The
commercialization of the new Tong Tong product, lithium iron
phosphate, will set up a solid basis for DLX to create a vertically
integrated company for the production of batteries, as well as
their components. 6. Adjustments in Sources of Raw Materials.
Refined cobalt ore is the main raw material of DLX's products, and
it is procured directly from the Congo by the DLX branch office in
South Africa. The political climate in the Congo has been getting
worse since May 2008. For safety reasons, most of staff of the
Congo's foreign enterprises, including DLX employees, have had to
temporarily leave the country. Based on the emergent situation in
the Congo and China's cost of materials in the second half of 2008,
DLX made a strategic adjustment to move from directly importing
materials from the Congo to domestic procurement in China. World
economic crisis causes the export in Japan and South Korea to
decrease dramatically, which creates volatile pricing for Chinese
cobalt ore. DLX's adjustment addresses the current macroeconomic
situation, and greatly offsets any adverse impact by the global
economy. About China Sun Group China Sun Group High-Tech Co.,
("China Sun Group") produces anode materials used in lithium ion
batteries. Through its wholly-owned operating subsidiary, Dalian
Xinyang 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/. 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
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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/. DATASOURCE:
China Sun Group High-Tech Co. CONTACT: Thomas Yang, China Sun
Group, Assistant to the President, +1-917-432-9350 (U.S.) or 86 411
8288 9800(China), Fax: 86 411 8289-2739, or Web Site:
http://www.china-sun.cn/
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