China Sun Group High-tech Co · OTC:CSGH
China Sun Group High-tech — Investor Presentation (September 2010)
22 slides from China Sun Group High-tech's investor presentation, Sep 28, 2010
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 of
Slide 3: What we do
What we do Develop, manufacture, and distribute Lithium Iron Phosphate primarily for use in the Power Li-Battery. Raw Materials of Lithium Iron Phosphate Lithium Iron Phosphate Power Battery Pack Auto Makers Cobalt Ore Lithium Cobalt Oxide Develop, manufacture, and Portable Battery distribute Lithiu
Slide 4: Company Overview
Company Overview Key Facts Revenue ($ millions) Founded in August 2000 Headquarters and operations in Dalian, PRC Total usable area of 24,000 m2 property Annual production capacity of 2,500 tons with 12 production lines 258 employees as of May 31, 2010 Listed on OTC BB in April 2007 Prod
Slide 5: Stock Summary
Stock Summary OTC BB CSGH Share Price (as of 9/17/2010) $ 0.88 Market Capitalization $47.0M Shares Outstanding (fully diluted) 53.42M Net Revenues (FY 2010) $41.2M Gross Profit (FY 2010) $13.1M Net Income (FY 2010) $8.6M Earnings per Common Share (FY 2010) $0.16 P/E (FY 2010) 5.5x Fiscal Year End Ma
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 Strong Market Demand Patented technology Demand in China g
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: Product – Anode Materials for Li Battery
Product – Anode Materials for Li Battery • Nanometer Co3O4 producer in China Nanometer • Nanometer technology leads to higher stability, purer, and longer life cobalt powder Cobaltosic Oxide(Co3O4) • Proprietary production procedure results in competitive product price Lithium Cobalt Oxide • Patente
Slide 9: Production Process
Production Process Lithium Cobalt Oxide Process Cobalt Carbonate Cobaltosic Oxide Lithium Cobalt Oxide Portable Batteries Lithium Iron Phosphate Process Raw material of Lithium Lithium Iron Lithium Iron Chemical Process Power Li Batteries Iron and Phosphate Phosphate Powder Phosphate 8
Slide 10: Competitive Advantages
Competitive Advantages Leading technology and production procedure Patented technology for Lithium Cobalt Oxide and state-of-the-art LIP manufacturing process Proprietary production process enhances internal efficiency, ensures higher quality and realizes better cost control Performance advantag
Slide 11: Strong R&D Force
Strong R&D Force Institutional level R&D lab with cutting-edge test and detection apparatus and instruments 18 R&D staff lead by Mr. Yijing Cheng, Chief Engineer of the Company. Mr. Cheng enjoys Special Allowance by State Council for his outstanding contributions in several national level projec
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 specific
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 Futures China Sun plans to strategically expand its sales to cover three provinces in Beijing the North East of China as highlighted in yellow. These are regions where the battery market is growing faster compared to the other locations. Shanghai Current s
Slide 15: Seasoned Management Team
Seasoned Management Team Mr. Wang Bin – Chairman, President of China Sun Mr. Wang is a senior-level economist with experience in business management and 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.
Slide 16: Rapid Financial Growth
Rapid Financial Growth Revenue ($ millions) Net Income ($ millions) 60.0 56.0 – 58.0 12.0 10.0 – 11.0 50.0 10.0 8.6 8.6 41.2 8.0 40.0 37.0 6.7 6.0 30.0 25.3 4.0 20.0 2.0 8.3 10.0 0.6 0.0 0.0 FY2007 FY2008 FY2009 FY2010 FY2011E FY2007 FY2008 FY2009 FY2010 FY2011E Fiscal year end May 31, FY 2011 Guida
Slide 17: Balance Sheet
Balance Sheet (In Millions of $U.S. Dollars) As of May 31, 2010 As of May 31, 2009 Current Assets: Cash and cash equivalents $18.0 $9.2 Accounts Receivable 2.8 1.6 Inventories 1.2 1.7 Other 0.0 0.4 Total Current Assets 22.0 13.0 Total Assets 45.1 35.3 Total Liabilities 4.6 3.3 Total Liabilities and
Slide 18: Income Statement
Income Statement (In Millions of $U.S. Dollars) Three months Year Ended May 31 FQE 5/31/10 FQE 5/31/09 2010 2009 Revenues: $11.0 $9.6 $41.2 $37.0 Gross Profit 3.6 3.4 13.1 13.6 Income from Operations 3.1 3.1 11.5 11.5 Net Income 2.3 2.4 8.6 8.6 Diluted Earning per Share 0.04 0.04 0.16 0.16 Weighted
Slide 19: CSGH Undervalued Relative to Peers
CSGH Undervalued Relative to Peers Price as of 17th Sep 2010 Price Revs(M) EPS P/E Ratio Company Name Ticker (Prev. Close) (TTM) (TTM) (TTM) CHINA BAK BATTERY INC CBAK $1.77 216.8 -0.42 - ENERGIZER HOLDINGS INC ENR $69.02 4,268.0 5.05 13.7x HONGKONG HIGHPOWER HPJ $3.33 92.8 0.46 7.2x TECHNOLOGY ULTR
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 Strong Market Demand Patented technology Demand in China g
Slide 21: Contact Information
Contact Information Investor Relations Firm: CCG Investor Relations Inc. China Sun Group High-Tech Co., Ltd. Mr. Mark Collinson, Partner Mr. Guosheng Fu, Vice President Phone: +1 310-954-1343 (Los Angeles) Email: mark.collinson@ccgir.com Tel: +86 411 8288 9800/8289 2736 (China) Email: IR@china-sun.c
Slide 22: Thanks
CSGH 4 N Sun Group High-Tech Co. (OTC BB: CSGH)
China Sun Group High-Tech — Investor Presentation (September 2010) on 6ix