Signs New 170 Tons Agreement for Lithium Ion Phosphate Supply
To Complete Three New LIP Production Lines by the end of June 2011
Provides Estimates for Full Year Deliveries
DALIAN, CHINA – June 13, 2011 – (Motor Sports Newswire) – China Sun Group High-Tech Co. (OTC Bulletin Board: CSGH) (“China Sun” or the “Company”), a vertically integrated supplier of raw materials for rechargeable Lithium–ion (Li-ion) batteries in China, today provided an update for investors regarding its production operations and the status of a new supply agreement.
The Company has signed a new agreement with Advanced Battery Technologies, Inc. (NASDAQ: ABAT) for the supply of Lithium Ion Phosphate (LIP). Pursuant to the agreement, China Sun will deliver a total of 170 tons of LIP to ABAT between April 2011 and December 2011. China Sun has delivered 8.5 tons to ABAT and will ship a further 23 ton average per month between June and December 2011.
Delivery Volumes – LIP
The Company has delivered to customers the following volumes of LIP:
|Quarter Ending (Tons)||Fiscal 2011||Fiscal 2010|
|May 31, 2011/2010||212||104|
|February 28, 2011/2010||205||74|
|November 30, 2010/2009||180||37|
|August 31, 2010/2009||133||N/A|
Currently, the top three customers for LIP are Sai Er New Energy, Beijing Shuangsheng Sci-Tech Co., Ltd and Shangdong Shengong Battery New Technology Co., Ltd.
Delivery Volumes – Cobaltosic Oxide
The Company has delivered to customers the following volumes of Cobaltosic Oxide:
|Quarter Ending (Tons)||Fiscal 2011||Fiscal 2010|
|May 31, 2011/2010||211||285|
|February 28, 2011/2010||304||267|
|November 30, 2010/2009||297||273|
|August 31, 2010/2009||288||230|
Currently, the top three customers for Cobaltosic Oxide are Dahua International Trade Co., Ltd., Tianjin B&M Science and Technology Joint-Stock, Ltd. and Beijing Easpring Material Technology Co., Ltd.
China Sun is to complete three new LIP production lines at the end of June 2011. The Company will then have six LIP production lines in total with an annual production capacity of 700 tons. The design phase for the three additional lines began in November 2010, the necessary equipments were completely manufactured in April 2011, and assembly and testing began in May with completion to production standard in June.
“We are very glad to be able to make this progress report to our shareholders. These are tangible signs of growing cooperation with China’s Lithium-Ion battery manufacturers and our increasing ability to supply them with the volumes that they need,” said Mr. Guosheng Fu, CEO of China Sun. “While we are pleased with our increased output we will now move forward to improve still further. We are currently doing the research and working on new solutions, to improve the chemical manufacturing process with the goals of increasing its efficiency, reducing production time and saving cost.”
“We are confident that the LIP market is continuing to grow and in order to ensure our place in that market, we want to build on the reputation we have for high quality product. In order to continue to receive excellent feedback from our clients, China Sun will keep on working hard to build strategic partnerships with them. Through those efforts we also expect to build value for China Sun’s shareholders,” continued Mr. Fu.
About Advanced Battery Technologies, Inc.
Advanced Battery Technologies, Inc. (NASDAQ: ABAT), founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company’s products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT’s batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries.
About China Sun Group High-Tech Co.
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 ion phosphate. 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 diversified into the manufacture of LIP and plans to forward integrate to manufacture power Li-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 Company’s expected growth in sales of LIP due to China’s expanding new energy automobile industry 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.
Mr. Guosheng Fu, Chief Executive Officer
China Sun Group High-Tech Co.
Tel: 86 411 8288 9800/8289 2736 (China)
|Investor Relations Contact:
Mr. Mark Collinson, Partner
CCG Investor Relations
SOURCE: China Sun Group High-Tech Co., Ltd.