China Sun Group Reports Continued Growth in Q3 FY2009
April 14 2009 - 8:30AM
PR Newswire (US)
Revenues Up 24% to $8.8 Million; Gross Profit Increases 26% to $3.2
Million LIAONING PROVINCE, China, April 14 /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 financial results for the
third fiscal quarter ended February 28, 2009. Full details are
available on Form 10Q filed with the SEC at http://www.sec.gov/.
For the three months ended February 28, 2009, net revenue increased
24% to $8.8 million compared to $7.1 million for the three months
ended February 28, 2008. The increase in net revenue was primarily
attributable to increased customer demand for DLX products. Gross
profit was $3.2 million in the third fiscal quarter of 2009, an
increase of 26% compared to $2.6 million reported in the third
fiscal quarter of 2008. The increase in gross profit was primarily
due to revenue generated by increased production and sales. Net
income was $2.0 million, or $0.04 earnings per share, in the third
fiscal quarter of 2009 compared to $3.5 million, or $0.05 earnings
per diluted share, in the third fiscal quarter of 2008. The
decrease in net income was primarily attributable to the one-off
reversal of allowance for doubtful accounts and an increase in
general and administrative expenses during the three months ended
February 28, 2009. For the nine months ended February 28, 2009, net
revenue increased 69% to $27.4 million, compared to $16.2 million
reported in the comparable period of 2008. Gross profit for the
nine months ended February 28, 2009 was $10.2 million, an increase
of 80% from $5.7 million reported in the same period in 2008. Net
income for the nine months ended February 28, 2009 was $6.2
million, or $0.12 per diluted share, an increase of 49% compared to
$4.2 million, or $0.08 per share, for the same period in 2008.
Basic and diluted common shares outstanding used in per share
calculations totaled 53,422,971. "China Sun Group is pleased with
DLX's performance in the third fiscal quarter. Despite downward
pricing pressure in the global manufacturing industry, DLX
successfully captured new sales, expanded gross profit margins and
increased profitability during the first nine months of fiscal
2009," said Bin Wang, Chief Executive Officer of China Sun Group.
"While DLX filled new orders for its existing product lines in the
third fiscal quarter of 2009, it introduced its next generation,
'green' power source, lithium iron phosphate. Lithium iron
phosphate is ideally used in batteries that power eco-friendly
vehicles like hybrids and electric cars. We anticipate to commence
deliveries on large-scale orders for lithium iron phosphate in the
fourth quarter of fiscal 2009." 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
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 8288 9800/8289 2376 (China) Fax: 86
411 8289-2739 e-mail: DATASOURCE: China Sun Group High-Tech Co.
CONTACT: Thomas Yang, China Sun Group, Assistant to the President,
+1-917-432-9350 (U.S.), +86-411-8288-9800/8289-2376 (China), Fax
+86-411-8289-2739, Web Site: http://www.china-sun.cn/
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