Shengtai Pharmaceutical, Inc. Reports First Quarter Fiscal Year 2010 Financial Results
WEIFANG,
Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) (“Shengtai” or “the Company”),
a leading manufacturer and distributor of high-quality, pharmaceutical grade
glucose products in
quarter of fiscal 2010 ended
First Quarter 2010 Financial Summary
-- First quarter 2010 revenues totaled $23.13 million
-- First quarter had positive operating cash flow of $0.83 million
-- Cash and restricted cash of $12.78 million
“The first quarter fiscal year 2010 brings our company back to profitable
and creates a very good opening for fiscal year 2010. Our glucose revenue
increased approximately 65% compared to the same period last year. The total
glucose revenue accounted for 58.41% of total revenue for the three months
ended
Selling, general and administrative (SG&A) expenses for the three months ended
the same period last year. Our financial results demonstrate that our strategy
of controlling cost, improving product structure to create a higher gross
profit products mix, and expanding market share in pharmaceutical glucose
markets has been successful,” said Mr. Qingtai Liu, Shengtai Pharmaceutical’s
CEO. “The competition in the last year was tough but we are proud that we
survived the economic crisis and are on the right track to our goal of
becoming the largest pharmaceutical glucose provider.”
First Quarter Fiscal 2010 Financial Results
First quarter 2010 revenues were
year-over-year compared to the
fiscal 2009. Sales of glucose products totaled
quarter as it accounted for 58.4% of sales. Cornstarch sales for the quarter
totaled
effect, and the recovery of the economy, and our increased competitive
strength, the demand of our glucose products was increased compared to the
same period last year.
Gross profit for the three months ended
million
was 14.36%, a decline from 17.62% in the first quarter of fiscal 2009. The
decline in gross margin in the first quarter was primarily driven by increased
raw material cost and higher production cost per unit due to the idle capacity
from expanded new facilities.
Selling, general and administrative (SG&A) expenses for the three months
ended
with the same period last year. The decrease in selling, general and
administrative expenses was mainly the result of our efforts in controlling
our costs. We incurred
three months ended
income of
Financial Condition
As of
cash totaling
cash flow from operations during the first quarter. The Company’s short-term
loan totaled
Company’s total shareholders’ equity increased to
Business Outlook
Based on its current outlook, and existing and anticipated business
conditions, Shengtai expects net income for fiscal year ending
to be between
“Looking forward we see several factors that will create a continuous
demand for the Company’s pharmaceutical graded glucose products. First of all,
this winter is abnormally cold in northern
threat to health. More people will get flu shots and other IV treatments. In
the symptoms of cold and flu,” said Mr. Qingtai Liu, Shengtai Pharmaceutical’s
CEO. “Second, we would also see the health care stimulus package starting to
show its effects in the next twelve months and we expect increased demand for
basic pharmaceutical products from newly built clinics. Third, we believe we
are in a much better position than some of our key competitors in the
pharmaceutical glucose field. We have expanded production capacity and have
enough operating cash flow. Some of our key competitors went bankrupt, have
temporarily stopped production, or are on the verge of going out of business.
This is a good opportunity for us to obtain an even higher market share in the
pharmaceutical glucose market. With these good external opportunities, we plan
to stick to our strategy of controlling costs, improving product structure to
create a higher gross profit products mix, and expanding market share in the
pharmaceutical glucose market. We are very confident that our key competitive
strength remains and will welcome a profitable year in fiscal year 2010.”
Conference Call
The Company will host a conference call on
answer session will follow management’s presentation. Ms.
Assistant Manager) will be the primary speakers on the call.
To participate, please call the following numbers ten minutes before the
call start time:
Phone Number: +1 (877) 407-8035 (
Phone Number: +1 (201) 689-8035 (International)
A replay of the call will be available through
at
Phone Number +1 (877) 660-6853 (North America)
Phone Number +1 (201) 612-7415 (International)
Account Number: 286
Conference ID Number: 337862
About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly owned subsidiary,
Shengtai Holding, Inc. (SHI), a
operating company of Weifang Shengtai Pharmaceutical Co., Ltd., is a leading
manufacturer and supplier of pharmaceutical grade glucose used for medical
purposes. It also manufactures and supplies glucose and cornstarch products to
the food, beverage and industrial production industries in
information about Shengtai Pharmaceutical, Inc., please visit
http://www.shengtaipharmaceutical.com .
Forward-looking Statements
Certain statements made in this news release, may contain 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, 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 further information, please contact:
Shengtai Pharmaceutical, Inc.
Ms. Yiru Melody Shi
Chief Financial Officer
Tel: +1-949-468-7078
Email: shengtaicfo@hotmail.com
Shenglian Iris Wang
Investor Relations Manger
Tel: +86-0536-6295802
Email: shengtaiadm@hotmail.com
SOURCE Shengtai Pharmaceutical, Inc.