Sunwin International Reports Financial Results for the Fiscal Year of 2009

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Thu Jul 30, 2009 9:21am EDT

QUFU, CHINA, July 30 /PRNewswire-FirstCall/ - Sunwin International
Neutraceuticals, Inc. (OTC BB:SUWN.OB) one of the world's leading producers of
all natural, zero calorie stevia, today announced the Company's financial
results for the fiscal year ended April 30, 2009.

    - Record Sales of Stevioside reaching $14.5 Million, up from $12.9
      Million in Fiscal 2008
    - Revenue of $22 Million with Net Income of $500,000;
    - Total Cash of $10.49 Million, up 54% From Fiscal 2008;
    - Total Assets of $43.62 Million, up 45% from Fiscal 2008;
    - Shareholder Equity of $38.51 Million, up 45% from Fiscal 2008;


Full Year Financial Results

Sales of stevioside reached a record $14.5 million for the full fiscal year of
2009, an increase of 12.4% over the $12.9 million recorded in fiscal 2008. The
global demand for stevioside continues to increase as regulatory authorities
in the United States have approved the use of highly purified grades in the
food and beverage industry. The strong performance in Sunwin's Stevioside
Segment was more than offset by weakness in its Chinese and Veterinary
Medicines Segment which was negatively impacted due to the global economic
downturn, decreased breeding and farming production due to the swine flu
pandemic and currency exchange rate fluctuations. As a result, for the full
year of 2009 Sunwin International generated revenue of $22.21 million as
compared to revenue of $22.93 million for the same period of 2008.
Cost of goods sold for the full fiscal year of 2009 increased slightly to
$17.13, up approximately $280,000 as compared to fiscal 2008 resulting in
gross margins decreasing to 23% as compared to 27% in fiscal 2008. The
decrease in margins was largely attributable to lower production efficiency in
its Chinese and Veterinary Medicine Segment due to soft demand.
For the fiscal year end April 30, 2009 net income was approximately $500,000
as compared to approximately $2,500 in fiscal 2008. This increase is
attributable to a 25% reduction of selling, general and administrative
expenses. This decrease in expenses was largely the result of a $788,277
decline in consulting expenses.

Balance Sheet Highlights

At April 30, 2009, total cash was $10.5 million, a 54% increase over total
cash of $6.8 at April 30, 2008. Total assets were $ 43.62 million, an increase
of over 45% from the $30.10 million at April 30, 2008. This substantial
increase in assets was attributable to several factors including the
acquisition of Qufu Shengwang, the acquisition of Qufu Shengren, and a $3
million strategic investment from WILD Flavors. Substantially of the net
proceeds from the WILD Flavors' investment will be used to renovate existing
Qufu Shengren's facilities from pharmaceutical production to a high grade
stevia extracts production line. This will support its stevia product
development partnership with WILD Flavors. At April 30, 2009, shareholder
equity was $38.5 million, a 45% increase over shareholder equity of $26.5 at
April 30, 2008.
Commenting on the performance for 2009, Sunwin's Chairman Laiwang Zhang
stated, "Fiscal 2009 was both a challenging and exciting year as we
experienced growth in our Stevioside Segment and severe challenges in our
Chinese Veterinary Medicines Segment. During 2009 we embarked on a plan to
focus our efforts on building our Stevioside Segment. Toward that end we made
two acquisitions and entered into a partnership with WILD Flavors to position
our company to capitalize on the growing worldwide demand for stevia and the
vast opportunities in the United States food and beverage industry now that
the use of stevioside has been approved by the FDA. We enter fiscal 2010 with
a strong balance sheet and a ramping capacity to produce the highest grades of
stevioside. We intend to aggressively pursue the opportunities in front of us
both in the U.S. and throughout the world and continue to build on the
momentum in our Stevioside Segment."

Company Background:

Sunwin International Neutraceuticals, Inc. engages in the areas of essential
traditional Chinese medicine, zero calorie natural sweeteners (stevia), and
veterinary medicines and feeds prepared from 100 percent organic herbal
ingredients. As an industry leader in agricultural processing, Sunwin has
built an integrated global firm with the sourcing and production capabilities
to meet the needs of consumers throughout the world. Sunwin also makes such
value-added products as specialty veterinary food ingredients and specialty
feed ingredients. For more info about Sunwin, please visit
http://www.sunwininternational.com

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Sunwin International Neutraceuticals, Inc., is
hereby providing cautionary statements identifying important factors that
could cause our actual results to differ materially from those projected in
forward-looking statements (as defined in such act). Any statements that are
not historical facts and that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, indicated through the use of words or
phrases such as "will likely result," "are expected to," "will continue," "is
anticipated," "estimated," "intends," "plans," "believes" and "projects") may
be forward-looking and may involve estimates and uncertainties which could
cause actual results to differ materially from those expressed in the
forward-looking statements.
We caution that the factors described herein could cause actual results to
differ materially from those expressed in any forward-looking statements we
make and that investors should not place undue reliance on any such
forward-looking statements. Further, any forward-looking statement speaks only
as of the date on which such statement is made, and we undertake no obligation
to update any forward-looking statement to reflect events or circumstances
after the date on which such statement is made or to reflect the occurrence of
anticipated or unanticipated events or circumstances. New factors emerge from
time to time, and it is not possible for us to predict all of such factors.
Further, we cannot assess the impact of each such factor on our results of
operations or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in any
forward-looking statements. This press release is qualified in its entirety by
the cautionary statements and risk factor disclosure contained in our
Securities and Exchange Commission filings, including our Annual Report on
Form 10-K for the fiscal year ended April 30, 2009.

SOURCE  Sunwin International Neutraceuticals, Inc.

Company: Jeff Reynolds, (972) 377-2339, jreynolds@sunwinusa.com; Investors:
Gary Liu, (954) 363-7333 ext. 318, ir@sunwininternational.com
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