China Sun Group High-Tech Co. (OTCBB: CSGH) produces anode materials for use in lithium ion batteries, operating through its wholly owned subsidiary, Dalian Xinyang High-Tech Development Co. Ltd., to produce nanometer technologies that supply components for advanced lithium ion batteries. The company today announced its record-high financial results for the fiscal year ended May 30, 2008, citing market trends and international interest in financial strength.
China Sun Group reported a 206 percent increase in fiscal year 2008 revenues, at $25.29 million, up from $8.27 million for 2007. The company attributes this significant revenue jump to new sources of sales channels and new customer sales. Net income for the fiscal year ended May 31, 2008, grew 1,031 percent to $6.74 million, up from $595,996 for fiscal 2007.
“Fiscal 2008 has been a monumental year of growth. We are pleased to report a 206 percent increase in revenue year-over-year, surpassing our initial prediction of 100 percent. In June 2008, DLX became a wholly-owned subsidiary of China Sun Group. Going forward, we shall be attributing a 100 percent of DLX’s profits and revenue to China Sun Group,” Bin Wang, CEO of China Sun Group stated in the press release.
Wang said OEM manufacturers relocating and opening new facilities in the People’s Republic of China mark a “healthy and rapidly emerging economy,” resulting in a greater demand for China Sun products.
“For example, Japan’s Diacelltec, Sanyo, Sony and Panasonic companies have relocated their production bases and Korea’s LG, Samsung and SK companies have also opened procurement centers in the PRC. We are poised to benefit from this trend and anticipate increasing our sales domestically,” Wang stated.
The company’s agreement with Korea’s Project Development & Consultation Co. Ltd. allow for China Sun to market its products to South Korean companies. Wang said the company expects its outreach to international customers, as well as South Korean injections, to boost international sales.
“We plan to align ourselves with industry experts to co-develop and launch the next generation battery components. We believe the confluence of these factors will create substantial new market opportunities to improve our sales and continue our earnings momentum through the new fiscal year,” said Wang.
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