China Sun Group High-tech Co · OTC:CSGH
China Sun Group High-tech — Investor Presentation (March 2011)
23 slides from China Sun Group High-tech's investor presentation, Mar 8, 2011
Slide 1: One of the largest non-government manufacturers of hi-tech cobalt products in Asia
One of the largest non-government manufacturers of hi-tech cobalt products in Asia
Slide 2: Safe Harbor Statements
Safe Harbor Statements This presentation contains forward-looking statements within the scope of the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results o
Slide 3: What we do
What we do Develop, manufacture, and distribute Lithium Iron Phosphate primarily for use in the Power Li-Battery Raw a Materials ate a s o of Lithium Iron Phosphate Lithium Iron Phosphate Power Battery Pack Auto Makers Cobalt Ore Cobaltosic Oxide Lithium Cobalt Develop, D l manufacture, f t and d Ox
Slide 4: Company Overview
Company Overview 60.0 56.0‐58.0 Key Facts Revenue 50.0 ($ millions) Founded in August 2000 41.2 Headquarters and operations in Dalian Dalian, PRC 40 0 40.0 37.0 Total usable area of 24,000 m2 property 30.0 25.3 Annual production capacity of 2,500 tons with 12 20.0 production lines 8.3 10.0
Slide 5: Stock Summary
Stock Summary OTC BB CSGH Share Price (as of 2/25/2011) $ 0.90 Market Capitalization $48.4M Shares Outstanding (fully diluted) 55.0M Net Revenues (TTM*) $46.2M Gross Profit (TTM*) $14.7M Net Income (TTM*) $7.9M Earnings per Common Share (TTM (TTM*)) $0 15 $0.15 P/E (TTM*) 5.9x Fiscal Year End May 31
Slide 6: Investment Highlights
Investment Highlights Leading Market Position • One of the largest non-government manufacturers of Cobalt based anode materials in Asia • High barriers to entry due to heavy capital investment and • strict certifications Industry Leading R&D Force • Patented technology • Proprietary manufacturing pr
Slide 7: Lithium-ion (Li) Battery Market
Lithium-ion (Li) Battery Market Lithium-ion (Li) batteries are currently the prevailing battery type for portable electronics. Li has been gaining significant market share in the past ten years, steadily replacing rechargeable nickel metal hydride (NiMH) batteries China is the largest Li battery
Slide 8: Products & Expanding into High-Growth Lithium Iron Phosphate Segment
Products & Expanding into High-Growth Lithium Iron Phosphate Segment Nanometer • Nanometer Co3O4 producer in China • Nanometer technology leads to higher stability stability, purer purer, and longer life cobalt powder Cobaltosic Oxide(Co3O4) • Proprietary production procedure results in competitive
Slide 9: Production Process
Production Process Lithium Cobalt Oxide Process Cobalt Carbonate Cobaltosic Oxide Lithium Cobalt Oxide Portable Batteries & Cobalt Oxalate & Lithium Compound Lithium Iron Phosphate Process Raw material of Lithium Lithium Iron Lithium Iron C Chemical Process Power Li Batteries Iron and Phosphate Phos
Slide 10: Competitive Advantages
Competitive Advantages Leading technology and production procedure Patented technology for Lithium Cobalt Oxide and state-of-the-art LIP manufacturing f t i process Proprietary production process enhances internal efficiency, ensures higher quality and realizes better cost control Performance ad
Slide 11: Strong R&D Force
Strong R&D Force IInstitutional tit ti l level l l R&D llab b with ith cutting-edge tti d test t t and d detection apparatus and instruments 18 R&D staff lead by Mr. Yijing Cheng, Chief Engineer of th Company. the C Mr. M Cheng Ch enjoys j S Special i l All Allowance bby State Council for his ou
Slide 12: Lithium Iron Phosphate (LIP)
Lithium Iron Phosphate (LIP) LIP, or nano-lithium (LiFePO4), was discovered in 1996 as an anode material for rechargeable lithium batteries. Its features include low cost, non-toxicity, high abundance of iron, excellent thermal stability, safer, good electrochemical performance, and high p g speci
Slide 13: China Sun LIP – Today and Tomorrow
China Sun LIP – Today and Tomorrow LIP Production capacity and Completed the LIP research, trial production, testing, and output (Tons) authority certification in 2008 and 2009. Output 700 Officially launched three LIP production lines in March 2010, Capacity 600 500 with current annual producti
Slide 14: Growth Strategies
Growth Strategies China Sun Group High-Tech Future China Sun p plans to strategically expand its sales to cover three provinces in Beijing the North East of China, Zhejiang Province, Guangdong and Guangxi Province as highlighted in yellow. These are regions where the battery market is Shanghai growi
Slide 15: Seasoned Management Team
Seasoned Management Team Mr. Wang Bin – Chairman of China Sun Mr. Wang is a senior-level economist with experience in business management . He is the founder of DaLian Xinyang High- Tech Development Co., Ltd. In March 2008, he was elected Vice Chairman of Dalian Heilongjiang Trade Union. He received
Slide 16: Financial Performance
Financial Performance Revenue ($ millions) Net Income ($ millions) 60.0 56.0 – 58.0 12.0 50.0 10.0 – 11.0 41.2 10.0 40.0 37.0 8.6 8.6 8.0 30.0 6.7 25.3 24.4 6.0 5.2* 19.4 20.0 4.1 1.8 4.0 10.0 8.3 2.0 3.4 0.6 0.0 0.0 FY2007 FY2008 FY2009 FY2010 FY2011E 6m 2009 6m 2010 FY2007 FY2008 FY2009 FY2010 FY2
Slide 17: Balance Sheet
Balance Sheet (In Millions of $U.S. Dollars) As of Nov 30, 2010 As of May 31, 2010 Current Assets: Cash and cash equivalents $19.8 $18.0 Accounts Receivable 5.4 2.8 Inventories 0.4 1.2 Other 0.3 0.0 Total Current Assets 26.0 22.0 Total Assets 48.7 45.1 Total Liabilities 2.0 4.6 Total Liabilities and
Slide 18: Income Statement
Income Statement (In Millions of $U.S. $U S Dollars) Three months Year Ended May 31 FQE 11/30/2011 FQE 11/30/2010 2010 2009 Revenues: $12.6 $ $10.1 $ $41.2 $ $37.0 $ Gross Profit 4.1 3.0 13.1 13.6 Income from Operations 1.8 2.7 11.5 11.5 Net Income 0.9 2.0 8.6 8.6 Adjusted Net Income – Non-GAAP* 2.7
Slide 19: CSGH Undervalued Relative to Peers
CSGH Undervalued Relative to Peers Price as of Feb 25, 2011 Source: Yahoo Finance Price Revs(M) EPS P/E Ratio Company Name Ticker (Prev. Close) (TTM) (TTM) (TTM) CHINA BAK BATTERY INC CBAK $1.81 $ 228.11 NA NA ENERGIZER HOLDINGS INC ENR $66.50 4250.0 5.49 12.1x HONGKONG HIGHPOWER HPJ $3.28 99.5 0.39
Slide 20: Investment Highlights
Investment Highlights Leading Market Position • One of the largest non-government manufacturers of Cobalt based anode materials in Asia • High barriers to entry due to heavy capital investment and • strict certifications Industry Leading R&D Force • Patented technology • Proprietary manufacturing pr
Slide 21: Contact Information
Contact Information Company Contact Investor Relations Firm: China Sun Group High-Tech Co., Ltd. CCG Investor Relations Inc Inc. Mr. Mark Collinson, Partner Mr. Guosheng Fu, CEO Phone: +1 310-954-1343 (Los Angeles) Tel: +86 411 8288 9800/8289 2736 (China) Email: mark.collinson@ccgir.com @ Email: IR@
Slide 22: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS AND SIX MONTHS ENDED NOVEMBER 30, 2010 AND 2009 Three Months Ended November No ember 30, 30 2010 Three Months Ended November No ember 30, 30 2009 Net Income (Loss) Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Ad
Slide 23: Thanks
CSGH N China su jun Group High-Tech Co. (OTC BB: sch)
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