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China Sun Group Signs Contract for Lithium Iron Phosphate (LIP) of 470 Tons with Sai Er New Energy

2010-11-30 18:42 880

- Also Provides Update to Previously Announced Contract with Huanyu Power Source

DALIAN, China, Nov. 30, 2010 /PRNewswire-Asia/ -- China Sun Group High-Tech Co. (OTC Bulletin Board: CSGH) ("China Sun Group" or the "Company"), a vertically integrated supplier of raw materials for rechargeable Lithium–ion (Li-ion) batteries in China, today announced that it has signed a contract with Henan Huanyu Sai Er New Energy Technology Co., Ltd. ("Sai Er New Energy"), a subsidiary of Henan Huanyu Power Source Co., Ltd., for 470 tons of lithium iron phosphate (LIP).  

Pursuant to the contract, China Sun will deliver a minimum of 470 tons of LIP to Sai Er New Energy throughout calendar year 2011.  Specific delivery volumes for each month are as follows:

Jan. Feb. 2011             25 Tons / Month


Mar. Jun. 2011            30 Tons / Month


Jul. Dec. 2011             50 Tons/ Month





Throughout the duration of the contract, China Sun will send Sai Er New Energy product research materials and offer technical engineering consultancy services in order to provide the customer with a complete end-to-end solution.

Separately, China Sun announced that it has sold 40 tons of LIP to Huanyu Power Source under the agreement previously reported on September 21, 2010. China Sun's management currently believes that it will deliver 60 tons of LIP to Huanyu Power Source in total by the end of December 2010.

Huanyu Power Source Co., Ltd. began its main business of R&D, manufacture and distribution of replacement batteries in 1982. Huanyu has established a hi-tech industrial park engaged in the production of Nickel Cadmium, Nickel Hydrogen, Lithium ion and Lead Acid batteries, in more than 100 models with a daily capacity in excess of 2 million secondary batteries. Huanyu currently has more than 10,000 employees with 400 dedicated to research.

"We are very pleased to further extend our cooperation with Huanyu Power Source," commented Mr. Guosheng Fu, CEO of China Sun Group. "In our previous experience with this customer, we were able to prove our LIP production capabilities by providing a high quality product and excellent customer service, enabling us to win a second contract with one of their subsidiaries. Going forward, we are very excited about the growing market demand for LIP production, and we are ready to expand our production capacity in a very short time frame to satisfy this demand."

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 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 has recently diversified into the manufacture of LIP and plans to forward integrate to manufacture of 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 ability to become a leading anode material supplier for Li-ion batteries used in the 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.

Company Contact:


Mr. Guosheng Fu, CEO


China Sun Group High-Tech Co.


Tel: 86 411 8288 9800 (China)


Email: ir@china-sun.cn


Website: www.china-sun.cn




Investor Relations Contact:              


Mr. Mark Collinson, Partner


CCG Investor Relations


Tel: 310-954-1343


Email: mark.collinson@ccgir.com


Website: www.ccgirasia.com

Source: China Sun Group High-Tech Co.
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