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China Sun Group High-Tech Co. (CSGH) through its operating subsidiaries, is engaged in the production of cobaltosic oxide and lithium cobalt oxide, both anode materials for lithium ion batteries. The Company provides a range of cobalt products, such as battery cobalt carbonate, nano-level cobaltosic oxide and high-crystallinity ball lithium cobalt oxide. Its products are cobaltosic oxide (Co3O4) and lithium iron phosphate (LiFePo4). During the fiscal year ended May 31, 2010 (fiscal 2010), it began producing lithium iron phosphate and planned to convert five of its twelve production lines to the production of lithium iron phosphate. As of May 31, 2010, the Company had seven production lines for the production of cobaltosic oxide and lithium cobalt oxide and five production lines for the production of lithium iron phosphate. As of May 31, 2010, the Company’s subsidiaries included Dalian Xin Yang Hi-Tech Development Co. and Dalian Xinyang High-Tech Development Co. Ltd (DLXY).

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