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| 8-K - Shengtai Pharmaceutical, Inc. | v197779_8k.htm |
Shengtai
Pharmaceutical Reports Financial Results for Full Year Fiscal 2010
WEIFANG, Shandong, China, September
29, 2010 -- 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.
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“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.
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Contacts:
Shengtai
Pharmaceutical, Inc.
Mr. Hu
Ye
Chief
Financial Officer
Tel:
86-13911573505
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
516-967-0205
Email:
dave@dmecapital.com
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