QualityStocks would like to highlight Shengtai Pharmaceutical, Inc. (OTCBB: SGTI). 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.
In the company’s news Friday,
Shengtai Pharmaceutical Inc. reported its financial results for the 12 months ended June 30, 2011.
Sales revenue for fiscal 2011 was $171.7 million, a 48 percent increase compared to full-year 2010. The company attributes the increase to ramped-up sales volume and average selling prices. Export sales increased 60 percent as a result of an uptick in the global economy combined with the company’s reorganization of its exporting department and high product demand.
Costs of sales for the year ended June 30, 2011, was $148.5 million, up 51 percent over the comparable 12 months of 2010.
Gross profit for the year ended June 30, 2011, increased 30 percent to $23.1 million compared with $17.6 million the same period in 2010. For fiscal 2011, gross profit margin was 13 percent, a decrease from 15 percent reported for the same period in 2010.
Shengtai Pharmaceutical reported net income for fiscal year 2011 at $7.6 million, or $0.80 per share, a 139 percent increase over net income of $3.1 million, or $0.33 per share, reported for the same period in 2010.
The company posted net cash provided by operating activities at $5.0 million, a 47 percent decrease compared to $9.5 million for 2010.
Qingtai Liu, CEO of Shengtai Pharmaceutical, said domestic and international sales both increased to improved figures, as did strong customer demand and increased corn storage.
“Customer deposit also increased which shows a strong customer demand for our products. We also successfully expanded our corn storage from 36,000 tons 50,000 tons and our cornstarch annual production capacity from 300,000 tons to 400,000 tons,” Liu stated in the press release. “The storage expansion allowed us to lock in raw material prices by storing more raw material while the raw material prices are increasing. The expansion of cornstarch production line allows us to produce more cornstarch and related products to meet the increased demand for our cornstarch and related products, and provide more cornstarch as raw material for our glucose production.”
Moving forward, Liu said the company will focus on continuing the improvements with competitive pricing and customer satisfaction, among other initiatives.
“Most importantly, our company will take a few steps to keep our gross profit stable. We will continue to store more raw material corn inventory when the corn prices are increasing. At the same time, we will enhance our sales policy in monitoring pricing,” Liu stated.
About QualityStocks
QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.
To sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
