WEIFANG, China, Sept. 29 /PRNewswire-Asia-FirstCall/ -- Shengtai
Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ("Shengtai" or "the
Company"), a manufacturer and distributor in China of glucose and starch as pharmaceutical
raw materials and other starch and glucose products, today reported
financial results for the twelve months ended June 30, 2010.
Full Year Fiscal 2010 Results
Sales revenue for the fiscal year ended June 30, 2010 was $115,953,948, an increase of $42,632,086, or 58% compared with the
corresponding period in 2009. The increase in sales revenue
resulted from the increase of the Company's sales volume and
selling prices. Net sales from exports for the year ended
June 30, 2010 increased approximately
131% compared with the same period in 2009. The increase is
attributable to the recovery of the global economy. Domestic sales
for cornstarch and other products for the year ended June 30, 2010 increased approximately 55%
compared with the same period last year. The increase in domestic
sales was attributable to the higher demand for the Company's
products and increase in unit sales prices.
Costs of goods sold for the year ended June 30, 2010 was $98,276,190, an increase of $32,476,704, or 49% compared with the
corresponding period in 2009. The increase in cost of sales was
lower than the increase in net sales. As a result, the gross profit
for the year ended June 30, 2010 was
$17,677,759, an increase of
$10,155,383, or 135%, compared with
the same period in 2009, and the gross profit margin for the year
ended June 30, 2010 was 15.2%, an
increase from 5.0% for the same period in 2009.
Net profit for fiscal 2010 was $3,198,981 or 0.17 per share as compared to a net
loss of $2,663,888 or $0.14 per share for fiscal 2009.
Net cash from operating activities for fiscal year 2010 was
$9,578,970 compared to $1,287,385 from in operating activities for
fiscal year 2009, an increase of $8,291,585.
Net cash used in investing activities for fiscal 2010 was
$16,576,493 compared to $1,432,818 used in investing activities for
fiscal year 2009. The investing activities helped the company
increase its production capacity via purchase of equipments and
optimization in production process.
Management Comments
Commenting on the operating and financial results, Qingtai Liu,
CEO of Shengtai Pharmaceuticals stated, "We are continuing our
global expansion and diversification strategies which are currently
benefiting from strong market growth. During this past year we
increased our production of pharmaceutical grade glucose products,
in particular dextrose monohydrate. Dextrose monohydrate is one of
the five most important medical prescriptions in the PRC and one of
the most widely used pharmaceutical products for restorative and
nutritional purposes. It is used as a raw material in a wide array
of pharmaceutical products such as transfusions and intravenous
drips. Our cornstarch production capacity has been enhanced to
300,000 tons a year."
Mr. Liu continued, "Our return to profitability is a combination
of our cost controls, diversified product lines and numerous sales
initiatives. Our glucose facility allows us to use self-produced
cornstarch to produce glucose and to be able to ensure the adequacy
and quality of the cornstarch we use. Since cornstarch is produced
on our premises, we are able to eliminate costs to ship the
cornstarch to our glucose production facility, thus resulting in
lower manufacturing costs.
"We are currently applying new production technology to
recycling of our waste water and byproducts. At the same time, we
are improving overall production efficiency by analyzing and
ameliorating inefficient production processes. Environment
protection and production efficiency are important in our growth,"
concluded Mr. Liu.
A conference call to further discuss earnings will be held
Thursday, September 30th at
8:00 A.M. Eastern Time.
To participate, please call the following numbers ten minutes
before the call start time:
Phone Number + 1 (877) 407-8035 (North America)
Phone Number + 1 (201) 689-8035 (International)
A replay of the call will be available through October 7, 2010, at 11:59
P.M. Eastern Standard Time. For the replay, please call:
Phone Number +1 (877) 660-6853 (North America)
Phone Number +1 (201) 612-7415 (International)
Account Number: 286
Conference ID Number: 357935
About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly owned
subsidiary, Shengtai Holding, Inc. (SHI), and the Chinese operating
company of Weifang Shengtai Pharmaceutical Co., Ltd., is a
manufacturer and distributor in China of glucose and starch products as
pharmaceutical raw materials, other starch products and other
glucose products such as corn meals, food and beverage glucose and
dextrin. For more information about Shengtai Pharmaceutical, Inc.,
please visit http://www.shengtaipharmaceutical.com .
Forward Looking Statements
Certain statements in this press release and oral statements
made by the Company constitute forward-looking statements
concerning the Company's business and products. These statements
include, without limitation, statements regarding our ability to
prepare the Company for growth, the Company's planned capacity
expansion and predictions and guidance relating to the Company's
future financial performance. We have based these forward-looking
statements largely on our current expectations and projections
about future events and financial trends that we believe may affect
our financial condition, results of operations, business strategy
and financial needs, but they involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements, which may include, but are not limited
to, such factors as unanticipated changes in product demand
especially in the pharmaceutical industry, pricing and demand
trends for the Company's products, changes to government
regulations, risk associated with operation of the Company's new
facilities, risk associated with large-scale implementation of the
Company's business plan, the ability to attract new customers,
ability to increase its product's applications, cost of raw
materials, downturns in the Chinese economy, and other information
detailed from time to time in the Company's filings and future
filings with the United States Securities and Exchange Commission.
Investors are urged to consider these factors carefully in
evaluating the forward-looking statements herein and are cautioned
not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement.
The forward-looking statements made herein speak only as of the
date of this press release and the Company undertakes no duty to
update any forward-looking statement to conform the statement to
actual results or changes in the Company's expectations.
For more information, please contact:
Shengtai Pharmaceutical, Inc.
Mr. Hu Ye
Chief Financial Officer
Tel: +86-139-1157-3505
Email: shengtaicfo@hotmail.com
Shengtai Pharmaceutical, Inc.
Ms. Cherry Shuzhen Ge
Investor Relations Manager
Tel: +86-0536-6295802
Email: shengtaigsz@hotmail.com
Investor Relations
DME Capital LLC
David Elias
Tel: +1-516-967-0205
Email: dave@dmecapital.com
SOURCE Shengtai Pharmaceutical, Inc.
Copyright . 29 PR Newswire