China Sun Group High-Tech Co. (CSGH), through its operating subsidiaries in the People’s Republic of China, is engaged in the production and sales of cobaltosic oxide and lithium cobalt oxide, both anode materials used in lithium ion rechargeable batteries in the People’s Republic of China. As of May 31, 2009, the Company’s only operations were conducted through Dalian Xinyang High-Tech Development Co. Ltd (DLXY), which is engaged in the business of manufacturing and selling cobaltosic oxide products. These products are primarily manufactured, marketed and sold in the People’s Republic of China. DLXY provides a selection of cobalt products, such as battery cobalt carbonate, nano-level cobaltosic oxide and high-crystallinity ball lithium cobalt oxide. DLXY also provides substitute products, including lithium iron phosphate (LiFePO4).