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 Nutrastar Intl In (OTC BB:NUIN)

Thursday, November 13, 2014
Comments & Business Outlook

Third Quarter 2014 Financial Results:

  • Net revenue was $11.16 million, representing an increase of $0.22 million or 2.1% from $10.94 million in the comparable 2013 three month period.
  • Non-GAAP diluted EPS was $0.34, compared to $0.34 in prior year.


Ms. Lianyun Han, CEO of Nutrastar, commented, "Nutrastar's results for the third quarter and nine months ended September 30, 2014 came in solid and in line with our expectations: an increase in top line revenue coupled with continued strong margins. Third quarter revenue benefited from an increase of 8.1% or $0.73 million in sales of our core premium consumer product Cordyceps, which includes sales of our new soluble, on-the-go Cordyceps powder solution, and an increase of 3.1% or $0.17 million in sales of our Organic and Specialty Foods product line. As expected, sales growth seen in our first two product lines was partially offset by $0.52 million decrease in sales of our third product line, Functional Health Beverages, resulting from the strategic product realignment conducted earlier in the year. Gross margins increased 0.2% to 80.5% from 80.3% in the comparable 2013 quarter."

Ms. Han continued, "We remained conservative in terms of expansion, and laser-focused on entering the international arena. In September, we announced the receipt of initial approval from China's Ministry of Commerce and achievement of Foreign Trade Operator status, which will allow for the export of our unique products to selected international markets. We are now in the midst of the second and final step in the approval process. Once received, we anticipate our new on-the-go soluble Cordyceps powder solution will be the first product to launch, followed by our other premium consumer products once demand in selected markets has been validated.

As for the remainder of 2014, we expect majority of revenue to continue to come from our core consumer product, Cordyceps, and gross margins to remain robust. Due to the introduction of our soluble Cordyceps powder product and the realignment of our beverage product line earlier in the year, however, we are adjusting our full year 2014 revenue guidance to a more conservative estimate – coming in between $45 million and $47 million. Gross margins are expected to stay at current levels. We will update our shareholders and the investment community on our development progress as it relates to our international expansion and in all other areas of our business as we are able to."

Ms. Han concluded, "Nutrastar's future looks very bright given our consistent product demand and revenue growth, strong and steady margins, robust and growing balance sheet, expanding consumer product portfolio, and defined strategy for international expansion. We're very excited about what 2015 and beyond holds for us in all of our initiatives and we look forward to the time when our goals are brought to fruition."


Business Outlook

Based on management's current expectations, full year 2014 revenue should be in the range of $45 million to $47 million.


Wednesday, September 10, 2014
Comments & Business Outlook

HARBIN, China, Sept. 10, 2014 /PRNewswire/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), health beverages and organic and specialty foods, today is pleased to announced that the Company has received the initial approval from China's Ministry of Commerce and is now registered as a Foreign Trade Operator.

The Company is currently in the process of completing the second step of the registration process, which is the next step in the Company's initiative to qualify for and eligible to exporting its premium consumer products internationally. In accordance with China's Foreign Trade Operator Regulations, the Company must now complete the required procedures and obtain the necessary approval from the local customs, tax offices, foreign exchange and other authorities in order to conduct foreign trade business. Once all the necessary steps are completed and approved, the Company will then be able to export its premium Cordyceps consumer product portfolio abroad.

Ms. Lianyun Han, Nutrastar's Chief Executive Officer, commented, "The entire Nutrastar team and I are thrilled to have completed the first step in the Foreign Trade Operator status process and are aggressively pursuing the completion of the second step. Once the necessary steps are completed, most of our Cordyceps related premium consumer products will then be eligible for export. Taking our premium consumer products to new markets abroad has been part of our long-term strategic growth plan, so this is an exciting time for us to be this close to achieving our goal."

Ms. Han added, "While confident in the demand for our products, we will take a conservative approach to international expansion once this status is approved for export. We will keep investors and the investment community updated as these initiatives and milestones come to fruition in the future."


Wednesday, August 13, 2014
Comments & Business Outlook
Second Quarter 2014 Financial Results
  • Net revenue was $19.87 million, representing an increase of $0.59 million or 3% from $19.29 million in the comparable 2013 six month period.
  • Basic and diluted EPS were $0.40 and $0.38, respectively, vs last years same quarter of $0.37 and $0.35.

Ms. Lianyun Han, CEO of Nutrastar, commented, "Our entire consumer product portfolio performed in line with expectations in the three month period ended June 30, 2014. Sales of our core premium consumer product Cordyceps came in at an impressive $10.69 million, up 21.5% year-over-year. This included approximately $1.0 million in sales of our new Cordyceps powder solution product, which was initially distributed within our current specialty nutraceuticals stores channels located in Harbin as a part of its testing phase. Sales of our 210ml and 310ml beverage offerings closed at $1.75 million, down 31.0% year-over-year due to the product line realignment to meet the market demand. Organic and specialty foods segment, our third consumer product category, experienced sales growth of 4.1%, contributing $0.56 million to revenues."

Ms. Han continued, "Overall, we're delighted with the outcome of the second quarter and first six months of the year � both periods marked by continued strong margins and an overall increase in revenue thanks to continued Cordyceps demand and the introduction of our new soluble, powder solution product. This synergistic soluble on-the-go Cordyceps product we believe has the potential to take Nutrastar to the next level - the international market � which we are extremely excited about. In terms of strategy, we were fortunate to bring on Beijing Meilitianhe Fortune Investment Management Co., Ltd. ("MLTH") as a strategic investor through a private share transaction in late June. This development not only further diversified management's holdings, but also aided us in expanding our reach and opportunity in China. MLTH has been instrumental in introducing and helping us secure our first distributor in Hubei for the new Cordyceps powder solution product, and are confident there will be more opportunities like this coming our way."

"As it stands now, we remain the single largest producer of commercially cultivated Cordyceps Militaris. Continued Cordyceps demand coupled with the introduction of exciting products and a broadening in our geographical reach will facilitate future expansion and allow us to achieve key milestones set forth in our long-term growth plan including extending our market presence well-beyond China. We will keep the public and shareholders apprised of our development progress with these initiatives and in all other areas of our business as we are able to, and encourage any interested party to reach out directly for more information on the Company and our innovative, premium consumer product portfolio," added Ms. Han.

Outlook for the Year Ending December 31, 2014

Based on management's current expectations, full year 2014 revenue should fall in the range of $47 million to $50 million, representing an approximate 8% to 15% year-over-year top line growth.


Thursday, July 31, 2014
Contract Awards

HARBIN, China, July 31, 2014 /PRNewswire/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), health beverages and organic and specialty foods, today announced the signing of its first distributor for its new Cordyceps powder solution product and its expansion to Hubei Province located in the eastern part of Central China.

The contract with the new distributor, Hubei Quandu Aiwan Health Industry Co., Ltd. ("Aiwan") was signed on July 16, 2014 and is for an initial period of one year (subject to additional extension or renewal thereafter) with a commitment of up to RMB 20 million per year (US $3.2 million) for the Cordyceps' powder solution product only. Introduced by Beijing MLTH Fortune Investment Management Co., Ltd. (MLTH), the strategic investor that participated in the Company's June 2014 private transaction, Aiwan distributes healthcare related products throughout the region.

Through the new distributor, Nutrastar's premium Cordyceps powder solution product will be distributed to targeted specialty nutraceuticals stores and supermarkets. The soluble Cordyceps product will come in a 140g per box size and will be used as a nutritional supplement for health-conscious consumers "on-the-go".

Hubei, a province with a 2010 population of approximately 57 million, is known to support industries that include automobiles, machinery, power generation, and high-tech commodities. Wuhan, the provincial capital and largest city with a 2010 population of approximately 9.8 million, is a major transportation thoroughfare and the political, cultural, and economic hub of Central China.

Ms. Lianyun Han, Nutrastar's Chief Executive Officer, commented, "The signing of this distributor is encouraging and exciting for the Company and for our shareholders for many reasons. First, it marks the completion and launch of our new exciting consumer product � our Cordyceps powder solution � which we hope will be the initial product to open Nutrastar up to consumers internationally including those located in the U.S. Second, it marks the Company's first entry into Central China, a regional market we feel has great growth potential for our entire product portfolio. And third, it solidifies the reasons why we brought on MLTH as a strategic investor. MLTH's introduction to Aiwan was pivotal in securing the initial distribution contract for our new soluble Cordyceps product, and for facilitating our entry into this large growing market."

Mr. Baiqing Su, General Partner of MLTH, stated, "As stated in the press release last month, Nutrastar's leading market position in the production and sale of commercial Cordyceps throughout China and continued ability to grow market share, while introducing new and exciting complementary products, is impressive. We were pleased to make the introduction to Aiwan, and are committed to doing all that we can to help Nutrastar continue to grow its market share moving forward."


Thursday, June 26, 2014
Notable Share Transactions

HARBIN, China, June 26, 2014 /PRNewswire/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), health beverages, and organic and specialty foods, today announced that its CEO, Ms. Lianyun Han, has completed two strategic private share purchasetransactions for a total of 1.9 million shares, reducing her ownership and voting power in the Company from approximately 46.9% to approximately 36.0% on a fully diluted basis.

The first transaction of 300,000 restricted shares at a previously negotiated purchase price of $1.40 per share was completed with its long-term and value-added shareholder, Accretive Capital Partners ("Accretive Capital"), a private investment fund founded and managed by Richard Fearon, an active member of Nutrastar's Board of Directors. Founded in 2000, Accretive Capital targets undervalued small and micro-cap public companies that represent attractive take-private candidates. The fund has been nationally ranked by Morningstar, Barron's Magazine, Bloomberg, Lipper, and Barclay Managed Funds, was recipient of HFM Week Magazine's 2011 Best Single Manager Long-Term Performance award among all U.S. hedge funds under $250 million, and was named finalist for PAM Magazine's 2014 Best Wealth Manager Long-Term Performance award.

Post transaction, Accretive Capital's ownership increased from 10.4% to approximately 12.0% on a fully-diluted basis. The fund has grown its position in Nutrastar since first investing in January 2011 and has been a value-added partner for over three years. Richard Fearon, Founder and Managing Partner of Accretive Capital and member of Nutrastar's Board of Directors, commented, "We are pleased to increase our investment at this pivotal point in Nutrastar's evolution into a global nutraceutical supplier. Our team is focused on helping Nutrastar penetrate new markets internationally while sustaining its impressive expansion domestically, and we are committed to offering continued strategic and financial guidance."

The second transaction of 1.6 million restricted shares at a negotiated purchase price of $2.00 per share was completed with Beijing MLTH Fortune Investment Management Co., Ltd. (MLTH) for 1 million shares and with two affiliated investors for 600,000 shares. MLTH is a specialized fund management company with approximately RMB1.1 billion under management. The fund and its managing partner have developed key strategic relationships and partnerships with many pharmaceutical and nutraceutical companies in China, including Harbin Pharmaceutical Group, Dalian Hui-Li Biological Health Products Co., Ltd., and Heilongjiang Beiqishen High-tech Health Products Co., Ltd. MLTH offers professionally managed investment portfolios for investors throughout China, designed to meet the varying needs, risk profiles and time frames of each investor.

Post transaction, the combined ownership of MLTH and the affiliated investors equates to approximately 9.1% on a fully-diluted basis. Mr. Baiqing Su, General Partner of MLTH, stated, "After careful consideration and extensive due diligence, we approached the company to gauge their interest in accommodating a strategic investment from our fund. From the very beginning, and after meeting with management, we have been keenly interested in Nutrastar's growth opportunities. We are particularly impressed by the company's leading market position in the production and sale of commercial Cordyceps throughout China and its continued ability to grow market share while introducing new and exciting complementary products. We look forward to working with Nutrastar as they expand domestically and to supporting them as they enter western markets and begin competing internationally. We are thankful that Ms. Han shares our vision and has the confidence in us as a strategic partner to allow us to purchase a portion of her shares."

Ms. Lianyun Han, Nutrastar's Chief Executive Officer, commented, "In response to continued investor concerns over my voting power and the request for shares to purchase, we decided to further reduce my holdings in the Company. I am pleased to hand-over these shares to our long-time shareholder and partner, Accretive Capital, and to our new strategic shareholders, MLTH and their affiliated parties, both of which are highly devoted to seeing Nutrastar succeed domestically and internationally."

Ms. Han continued, "We would like to thank Accretive for its continued guidance, support, and belief in our Company and the enormous potential of our products as demonstrated, yet again, by their increased ownership in Nutrastar. Moreover, we would like to welcome MLTH to the group. Having several large players in the consumer, health, nutraceutical, and pharmaceutical space in China as clients and an active presence in those markets, MLTH will not only be a long-term investor key to our growth, but also a strategic partner to the Company, which will be instrumental in helping us to meet and expand upon our defined growth initiatives."


Wednesday, March 26, 2014
Comments & Business Outlook

Fourth Quarter 2013 Results

  • Net revenue was $43.35 million, an increase of 17.9% from $36.7 million in 2012.
  • EPS was $0.41 compared to $0.34 for the same quarter 2012.

"We are pleased to report augmented sales in each of our consumer product categories for the full year 2013. Cordyceps product sales were up $5.94 million or 21.4% year-over-year. Functional health beverages containing Cordyceps and organic specialty foods, our ancillary consumer product categories, saw an 8.2% and 3.6% sales increase, respectively. As a whole, revenue was $43.35 million, up 17.9%, just short of our forecasted revenue of between $44 and $46 million due to a push out of the anticipated ramp up of our organic and specialty food business. As seen in past years, growing demand within China for our core consumer product Cordyceps was the primary driver of our overall increase in revenue.

As for our bottom line, we continue to operate at highly efficient and profitable levels, and see improvements in cost and operations. For the year ended December 31, 2013, gross profit and net income, as a percentage of revenue, increased to 77.8% and 51.1%, from 76.2% and 46.9%, respectively. Aiding in this improvement was the Q1 2013 completion of our multi-phase, multi-year production capacity expansion project. For the year 2013, we were at approximately 91 tons capacity and expect to hit the upper 90's by the end of 2014," Ms. Lianyun Han, CEO of Nutrastar, commented.

Ms. Han continued, "Right now, while we are in an excellent position to capitalize on numerous opportunities with the Chinese consumer product market, our focus remains steadfast on growing our core consumer product offerings. As the largest producer of commercially cultivated Cordyceps Militaris, we are keenly aware of market demand and are confident in our ability to stay on top of the competition particularly within China. As mentioned in our third quarter 2013 results, we are actively working towards expanding into the international market with our in-development Cordyceps capsules and tablets, designed to complement our current premium consumer product offering and cater to our everyday customer looking for an on-the-go health supplement similar to other vitamin-type supplements. This is a huge milestone we expect to achieve in 2015."

On the subject of the Company's financial position and growth ahead, Ms. Han added, "We closed the year with a cash balance of approximately $102.6 million. This cash balance was vouched and verified by our independent auditor, and is earmarked the Company's future organic and inorganic growth initiatives such as continued capacity expansion, brand and product development, marketing & advertising, any potential strategic and synergistic acquisitions. With the proper, intelligent allocation of funds, we will continue building greater market awareness for our premium Cordyceps consumer products in China and ease our way into the international market with Cordyceps in tablet and capsule form."

Business Outlook

Based on management's current expectations, full year 2014 revenue should fall in the range of $47 million to $50 million, representing an approximate 8% to 15% top line increase year-over-year.


Wednesday, November 13, 2013
Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Net revenue increased 44.4% to $10.94 million, up from $7.57 million in the three months ended September 30, 2012. 
  • Basic and diluted EPS were $0.36 and $0.34, respectively vs. last years $0.24 and $0.23 with 15.92 million basic and 17.06 million diluted shares outstanding. 

"In the three and nine months ended September 20, 2013, our numbers reflected continued and significant growth in sales, gross profit, and income. Gross margin further improved to 80.3% in the third quarter thanks to our increased capacity as well as an attractive product mix comprised mainly of our high margin commercially cultivated Cordyceps. Cordyceps, functional health beverage and organic specialty food sales specifically were up 48.5%, 39.7% and 5.9%, respectively, in the third quarter of 2013 versus the comparable 2012 quarter. Increases in sales this quarter came from increased capacity as well as company-led marketing initiatives," stated, Ms. Lianyun Han, CEO of Nutrastar.

Ms. Han continued, "With the production means necessary to expand our market, we are focused on further extending our brand awareness and product offering to better and more comprehensively serve our customers. Prior launched marketing campaigns are working to promote the health benefits of our premium consumer products, especially our on-the-go functional health beverage and instant soluble drink. We also began testing sales of our instant soluble drink at the Bao Feng specialty drug store in Harbin for an initial trial period of up to six months that began this month. Bao Feng is a direct consumer specialty drug store that has approximately 1,000 stores nationwide. Depending on how sales do in the trial store, this may or may not be a channel for us moving forward. On the new product front, we have started developing Cordyceps capsules and tablets, designed to complement our current premium consumer product offering and cater to our everyday customer looking for an on-the-go health supplement similar to other vitamin-type supplements. It's estimated that the product development process for both capsules and tablets will take approximately 12 - 18 months to complete."

In closing, Ms. Han stated, "With consumer demand for our premium products remaining strong and persistent, particularly among the wealthier and aging population, we are quite confident in our ability to meet our full year revenue guidance and continue to grow thereafter. We look forward to updating our shareholders and the investment community on our progress in these areas and more in the time ahead."


Monday, August 12, 2013
Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Net revenue increased 18.3% to $11.87 million, compared to $10.04 million in the three months ended June 30, 2012.
  • Gross profit increased 20.9% to $9.14 million, up from $7.56 million in the comparable 2012 quarter.
  • Gross margin was 77% compared with 75.4% in the second quarter 2012.
  • Net income was $5.96 million, up 21.7% from $4.90 million recorded in Q2 2012.
  • Basic and diluted EPS were $0.37 and $0.35, respectively, with 15.86 million basic and 16.99 million diluted shares outstanding.

Management Commentary

"In line with expectations, our financial results showed continued top-line growth, coupled with the robust progression of our bottom line. Gross margin expanded in the second quarter by 1.6% as a result of economics of scale due to increased capacity as well as an attractive product mix. The majority of revenues, roughly 74% in Q2, stemmed from our higher margin commercially cultivated Cordyceps, which saw sales hit $8.8 million, up 17.1% year-over-year. Premium functional health beverages contributed $2.5 million in the quarter, up 26.7% as a result of prior company-led marketing initiatives specifically designed to grow this market," stated, Ms. Lianyun Han, CEO of Nutrastar.

Ms. Han continued, "As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2013 revenue guidance. Demand for our premium consumer products remains steadfast and robust, especially among the affluent and elderly population. We remain committed to expanding our market, growing our brand awareness and bringing more products into the hands of health-conscious consumers. To this end, we plan to embark on new, fresh campaigns geared towards better informing and promoting the health benefits of our premium consumer products, especially our on-the-go functional health beverages and instant soluble drinks, which we believe will be key market drivers in the future. We look forward to updating our shareholders and the investment community on our progress on these initiatives in the coming months. Nutrastar is committed to full disclosure, we encourage any interested investor to visit our Cordyceps production facilities and experience the company's products firsthand."

Financial Guidance

Based on management's current expectations, the Company maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase over last year.


Tuesday, May 14, 2013
Comments & Business Outlook

First Quarter 2013 Financial Results

  • Net revenue increased 8.0% to $7.41 million, as compared to $6.86 million in the quarter ended March 31, 2012.
  • Gross profit increased 11.0% to $5.64 million, up from $5.08 million in the comparable 2012 quarter, representing a gross margin of 76.1%.
  • Net income was $3.41 million, as compared to $2.95 million in Q1 2012.
  • Basic and diluted EPS were $0.21 and $0.20, respectively, with 15.86 million basic shares and 16.99 million diluted shares outstanding

Management Commentary

"Nutrastar's first quarter 2013 was marked by continued sales growth, increased profitability and a growing balance sheet. Commercially cultivated Cordyceps, our core consumer product business, saw a year-over-year sales increase of 11.4%. Our functional health beverages and organic specialty products businesses experienced a sales decrease of 7.9% and 1.1% in the quarter, respectively, due to the timing of the reorder cycle from the beverage distributors. As a percentage of revenue, gross profit increased by 2% year-over-year, reaching 76.1%. As expected, we saw a slight improvement in our cost of goods sold on a percentage basis resulting from our increased production capacity and utilization. Our cash balance at the end of the quarter remained at a strong $77.9 million or approximately $4.59 per diluted share, as seen and verified at the bank by our independent auditor," stated, Ms. Lianyun Han, CEO of Nutrastar.

Ms. Han continued, "Looking into Q2 and the remainder of 2013, we are confident in our ability to maintain our upward momentum and capitalize on rising demand stemming from China's young, increasing affluent and aging populations. Strategic advertising and marketing initiatives will remain steadfast and continue to be aimed at these consumer populations and others. We will continue to seek out and identify new and attractive markets within China for our premium consumer products as well as consider complementary acquisitions that are accretive to the company and our shareholders."

Outlook for the Year Ending December 31, 2013

Based on management's current expectations, the Company maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase year-over-year.


Wednesday, August 15, 2012
Comments & Business Outlook

Second Quarter 2012 Results

  • Net revenue was $10.04 million, an increase of 30.6% from $7.68 million in the quarter ended June 30, 2011. 
  • Gross profit increased 27.2% to $7.56 million, up from $5.95 million in the comparable 2011 quarter, representing a gross margin of 75.4%. 
  • Net income was $4.90 million, up 25.6% from $3.90 million in Q2 2011.
  • Basic and diluted EPS were $0.31 and $0.30, respectively compared to $.0.26 and $0.24 in prior year period.

"We are quite pleased with our progress in the second quarter and first six months of 2012. While tough macroeconomic conditions remained steadfast, we continued to execute on our growth strategy and yield lucrative results," Ms. Lianyun Han, CEO of Nutrastar, commented. "By focusing on growing our sales volume through existing distribution channels, we saw revenue from product sales reach $10.04 million in second quarter, up 30.6% year-over-year and $16.9 million in the first six months, up 25.3% year over year. Demand for both our core consumer product Cordyceps and functional health drinks stayed strong with second quarter sales up 23.8% and 76.8% from the comparable 2011 period, respectively. Moreover, net income rose 25.6% in the second quarter and 13.6% in the first six months, while gross margin came in at a robust 75.4%, good indications of a strong and growing business."

Commenting on the company's cash position, Ms. Han stated, "As noted in our filings with the Securities & Exchange Commission and verified by our independent auditor, we've had and continue to have an extremely solid balance sheet, comprised of very little debt and a substantial cash position. Amidst volatile financial markets and an uncertain future, our strong balance sheet and large cash position, roughly $3.90 per diluted share, puts us in a powerful position as a company and opens the doors of opportunity that might not otherwise be present. It's important that we continue to manage this cash wisely and conservatively and use it towards growing the business organically and through acquisition if the right opportunities present themselves."

Ms. Han added, "Looking ahead, in terms of production capacity, our Cordyceps expansion project is expected to stay on track throughout the rest of 2012 to meet our goal of 100 tons production capacity by end of year 2013, an increase of 14.9% from current levels. We are eagerly awaiting and excited for the completion of this final stage which will allow us to better meet growing demand of our Cordyceps-related consumer products and further strengthen our top and bottom line."

Outlook for the Year Ending December 31, 2012

Based on management's current expectations, it is still believed that revenue will be in the range of $40 million to $44 million, representing an approximate top line increase of 17% to 29% year over year.


Sunday, May 20, 2012
Comments & Business Outlook

Financial Highlights for the Quarter Ended March 31, 2012

  • Net revenue increased 18.4% to $6.86 million, as compared to $5.80 million in the quarter ended March 31, 2011.
  • Gross profit increased 14.8% to $5.08 million, up from $4.43 million in the comparable 2011 quarter, representing a gross margin of 74.1%.
  • Net income was $2.95 million, as compared to $3.01 million in Q1 2011.
  • Basic and diluted EPS were $0.19 and $0.18, respectively, with 15.36 million basic shares and 16.51 million diluted shares outstanding.

Ms. Lianyun Han, CEO of Nutrastar, commented, "We are pleased with our performance in the first quarter, ending it with improved sales across all of our product lines, a strong bottom line and a very robust balance sheet. Demand grew across all of our premium consumer product lines. Sales of Cordyceps increased 7.4%, beverages grew 271.5% and organic and specialty foods rose 13.4%, as over the comparable 2011 period. As expected, we saw a slight decline in the gross margin to 74.1% from 76.4% in the first quarter of 2011 due to an increase in sales from our beverage products which have a higher cost of production than our other consumer products."

Ms. Han continued, "Throughout Q1, we made progress further broadening our market presence via marketing initiatives, and expanding our production capacity. We also made headway growing our premium consumer product portfolio with the upcoming addition of a new Cordyceps instant soluble drink powder and an infused alcohol product. We expect to see revenue from these products upon their introduction to the market and are very excited about the potential opportunities these products will afford us and our shareholders down the road."

As for Q2 and remainder of 2012, Ms. Han stated, "Expansion in both capacity and product offering is expected to stay on track and at the forefront of our operational and business development initiatives." Ms. Han added, "We look forward to launching new premium products to the market which we expect, like our entire existing product lines, will be well received within China's growing mass consumer market."

Outlook for the Year Ending December 31, 2012

Based on management's current expectations, it is believed that revenue will be in the range of $40 million to $44 million, representing an approximate top line increase of 17% to 29% year over year.

For more information regarding Nutrastar's financial performance during the quarter ended March 31, 2012, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about May 15, 2012. Management is available to discuss the financial results with investors should they have any questions. To arrange a call with the management team, please contact Investor Relations at 305-918-7000.


Wednesday, March 28, 2012
Comments & Business Outlook

Full Year 2011 Results

  • Revenues increased 41.1% to $34.21 million compared to $24.24 million in the year ended December 31, 2010. 
  • Gross profit increased 32.4% to $25.96 million, up from $19.6 million in the comparable 2010 year, representing a gross margin of 75.9%. 
  • Net income rose 26.3% to $17.00 million, up from $13.44 million in 2010, representing a net margin of 49.7%. 
  • Basic and diluted EPS were $1.12 and $1.04, respectively with 14.78 million basic shares and 16.34 million diluted shares outstanding. 

Ms. Lianyun Han, CEO of Nutrastar, commented, "2011 marked another year of record sales for Nutrastar. With Chinese consumer demand for our premium products remaining strong, we met our revenue guidance for the year with total revenues reaching $34.21 million, up 41% year-over-year. Orders for our core consumer product, Cordyceps remained robust, contributing $25.34 million to our top line, while our organic and specialty food business contributed roughly $2.02 million. As a result of our marketing and branding efforts, our functional health beverages saw sales grow to $6.85 million for 2011 with $3.38 million in sales recorded in the fourth quarter alone, up 60% from third quarter sales of $2.11 million. While still high, gross margins declined to 75.9% from 80.9% in 2010 due to the increased contribution of our beverage products which incur a higher cost of production than our core consumer product, Cordyceps."

"In addition to sales growth, Nutrastar was active in corporate and product development initiatives. In 2011, we adopted a share repurchase program in August and grew our internal Cordyceps production capacity to 72 tons representing an increase of 30%," stated Ms. Han. "We are also in the process of strategically diversifying our product offerings with the addition of an instant soluble drink powder as well as a forthcoming variety of organic products stemming from the sizeable expansion of our organic & specialty foods business that is currently underway. We expect to see a revenue stream from these products in the near future."

Commenting on 2012, Ms. Han stated, "We foresee a continuation of our production capacity expansion, solid sales of our core consumer product, Cordyceps, growing sales of both our functional health beverages and organic & specialty foods, and the introduction of new premium consumer products to the market such as our Cordyceps-infused alcohol product. We also expect, with market and regulatory conditions permitting, to continue to purchase additional shares under our share repurchase program. Armed with augmented capacity, in-demand consumer products and the expectation of new premium consumer products being introduced to the market, we are confident that 2012 will be an even better year for Nutrastar than the previous."

Outlook for the Year Ending December 31, 2012

Based on management's current expectations, the Company maintains its belief that revenue will be in the range of $40 million to $44 million, representing an approximate 17% to 29% top line increase year over year.


Monday, February 13, 2012
Comments & Business Outlook

HARBIN, China, February 13, 2012 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: NUIN; "Nutrastar" or the "Company"), a leading China based producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris and functional health beverages, today announced that the Company has recently expanded its consumer product portfolio with the addition of an instant soluble powder version of their premium beverage.

Ms. Lianyun Han, Founder and Chief Executive Officer of Nutrastar commented, "We are excited to bring this instant soluble powder Cordyceps drink to market. Being a leading provider of premium Cordyceps consumer products, we must continue to innovate and find new ways to attract and meet the demands of Chinese consumers while growing both our top and bottom line. We believe this instant soluble powder version falls in line with our goals and will complement our existing high-margin, premium consumer product portfolio."

The new instant soluble powder Cordyceps drink dissolves quickly in either hot, tepid or cold water. The initial distribution plan for the new instant soluble powder drink product will be to the Company's existing high-end channels with new channels currently being developed.

The product has undergone multiple consumer trial tests in a variety of markets and has seen encouraging receptivity in the those markets. Moreover, the product received testing report certification for agro-product safety and environment quality in September 2011. The Company expects to officially launch the product in select Chinese cities by the second quarter of 2012.


Thursday, January 5, 2012
Comments & Business Outlook

HARBIN, China, January 5, 2012 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: NUIN; "Nutrastar" or the "Company"), a leading China based producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris and functional health beverages, today provided an update on the Company's Cordyceps production capacity expansion project.

As disclosed in August of 2010, in order to meet growing demand, the Company embarked on an expansion plan designed to boost production capacity for its core Cordyceps product from 55 tons to over 100 tons by year-end 2012. The Company completed the first phase of its expansion through the renovation of three buildings in 2010, increasing production capacity to 72 tons by year-end. As of year-end 2011, the Company neared completion of an additional three buildings, which will bring total production capacity to 87 tons, an overall production capacity increase of 58% from the onset of the expansion project. These additional facilities are expected to be online and operational in 2012. The Company expects to renovate additional four buildings over the course of the current year and meet its goal of over 100 tons of Cordyceps production capacity by 2013.

Ms. Lianyun Han, Founder and Chief Executive Officer of Nutrastar commented, "Our multi-phase, multi-year project has been a concerted team effort. We are thrilled to be close to finishing the second phase of our expansion. We look forward to sustaining our position as the leading provider of premium commercially cultivated Cordyceps consumer products in China now and for years to come."


Sunday, November 13, 2011
Liquidity Requirements
We believe that our cash on hand and cash flow from operations will meet our expected capital expenditure and working capital requirements for the next 12 months. We are in the process of significantly expanding our organic and specialty food consumer products business. We expect that the expansion will require capital expenditures of approximately $7.9 million over the next 12 to 18 months, which will be funded from our cash on hand and cash generated from operations. However, we may in the future require additional cash resources due to changed business conditions, implementation of our strategy to expand our production capacity or other investments or acquisitions we may decide to pursue

Thursday, November 10, 2011
Comments & Business Outlook

Third Quarter 2011 Results

  • Revenues increased 47.9% to $9.56 million 
  • Gross profit increased 39.4% to $7.36 million, a gross margin of 77.0% 
  • Net income rose 22.5% to $4.98 million, representing a net margin of 52.1% 
  • Basic earnings per share ("EPS") was $0.33; Diluted EPS was $0.30

Ms. Lianyun Han, CEO of Nutrastar, commented, "In spite of difficulties in the global market, third quarter 2011 closed as a significant quarter in Nutrastar's history. Not only did we experience a notable uptick in sales volume for both our core Cordyceps and new functional health beverage products, but also made momentous advances in our corporate development. In the past quarter, we successfully furthered our internal Cordyceps production capacity expansion project, embarked on the considerable extension of our organic & specialty foods business and implemented a share repurchase program, just to name a few. As compared to the same periods of 2010, revenue recorded in the third quarter increased by approximately 48% and revenue for the first nine months grew by approximately 38%. Net income rose 22.5% in the third quarter and increased 16.5% for the first nine months of 2011 as compared to the same 2010 timeframes. Overall gross margin for the first nine months of 2011 remained at a healthy 77%."

Outlook for the Year Ending December 31, 2011

Based on management's current expectations, the Company maintains its belief that revenue will be in the range of $32.0 million to $36.0 million. This represents the Company's current view, which is subject to change.


Monday, September 19, 2011
Comments & Business Outlook
HARBIN, China, September 19, 2011 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: NUIN; "Nutrastar" or the "Company"), a leading China based producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages and organic and specialty food products, today announced that the Company plans to significantly expand its organic and specialty food consumer products business over the next 12 - 18 months. See more.

Tuesday, August 30, 2011
Comments & Business Outlook

HARBIN, China, August 30, 2011 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded Traditional Chinese Medicine ("TCM") consumer products, today announced that it has added a new retail distributor in Suqian City and a wholesale distributor in Changzhou City for its "Yang Yang Ba" functional health drink, further expanding the entry level drink's distribution channels in Jiangsu Province.

Located in northern Jiangsu Province, Suqian is a natural extension of the company's beverage rollout plans given its close proximity to the Company's existing distribution networks. Suqian has a population of approximately 5.2 million. Through the distributor, Nutrastar's entry level affordable "Yang Yang Ba" drink will be available at approximately 100 points-of-sale ("POS"), including small supermarkets and convenience stores.

Nutrastar has also brought on a new wholesale distributor in neighboring Changzhou City. Changzhou is situated in China's affluent Yangtze Delta region about 160 kilometers west of Shanghai and has a population of roughly 4.5 million people. With this wholesale distributor, the company's "Yang Yang Ba" drink will be available for sale in an additional 200 POS, consisting of mostly small supermarkets and convenience stores.

Ms. Lianyun Han, CEO and founder of Nutrastar, commented, "The entry into Suqian and the addition of Changzhou wholesale distributor for our entry level 'Yang Yang Ba' functional health drink is a continuation of our rollout initiatives, which began in the fourth quarter of 2010. Already, Yang Yang Ba has seen good, healthy reception in its current cities and we are eager to continue building its presence in Jiangsu and other areas in China."


Thursday, August 25, 2011
Notable Share Transactions

HARBIN, China, August 25, 2011 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded Traditional Chinese Medicine ("TCM") consumer products, today announced that its Board of Directors has authorized a share repurchase program under which Nutrastar may repurchase up to US$5 million of the Company's common stock over a period of 12 months.

Under the program, the Company may, from time to time make one or more purchases, through open market, block trades or in privately negotiated transactions in accordance with the applicable federal securities laws and regulations, including Rule 10b-18. The timing and extent of the repurchases will be determined by the Company's management, in its discretion, and will depend upon market conditions, the trading prices and volume of the stock, alternative uses for capital, the Company's financial performance, and other factors. The repurchase program does not obligate Nutrastar to make any repurchases at any specific time.

Ms. Lianyun Han, CEO and founder of Nutrastar, commented, "Despite difficult macroeconomic conditions and volatility in the capital markets, we are confident in our business, our growth strategies and in the opportunities that lie ahead for our company. We stand by the legitimacy and validity of our cash position, financial results and internal controls that are reviewed and audited by our top-10 accounting firm. Our shareholders are vitally important to us and the adoption of this share repurchase program reflects our strong commitment to enhancing shareholder value as well as the confidence our Board of Directors and management team have in our ability to continue carrying out our growth strategy of expanding our product lines and distribution networks while also adding value to our shareholders in the long-term."

The program will be funded utilizing the Company's cash on hand and cash generated from operations. The Company is currently working with financial institutions to secure efficient and adequate conversion of Chinese Renminbi to U.S. Dollars to fund the execution of the repurchase program. The Board of Directors of the Company will periodically review the share repurchase program and may authorize adjustments to the program's terms and size. The Board of Directors may also suspend or discontinue the repurchase program at any time.


Friday, August 12, 2011
Comments & Business Outlook

Financial Highlights for the Three Months Ended June 30, 2011:

  • Revenues increased 40.8% to $7.68 million 
  • Gross profit increased 30.1% to $5.95 million, a gross margin of 77.4%
  • Net income rose 14.2% to $3.90 million, representing a net margin of 50.8%
  • Basic earnings per share ("EPS") was $0.26; Diluted EPS was $0.24 vs $0.12 in 2010

"Looking ahead into the remainder of 2011, we expect to continue to steadily execute on our focused strategies of growing organically and diversifying our consumer product offerings. Within these initiatives, we'll remain active in further broadening our sales and distribution network and increasing our production capacity in order to better meet the demand of the current consumer market. Currently, we are on track to bring online 3 additional buildings located on our production facility grounds by the end of the year, resulting in a 20% increase in annual capacity for our core product, reaching approximately 87 tons going into 2012. Lastly, based on the current forecast we are comfortable with the revenue guidance given at the beginning of the year," concluded Ms. Han.


Monday, May 16, 2011
Comments & Business Outlook

Financial Highlights for the Quarter Ended March 31, 2011:

-- Revenues increased 21.6% to $5.8 million

-- Gross profit increased 19.3% to $4.4 million, a gross margin of 76.4%

-- Net income rose 10.5% to $3.0 million, representing a net margin of 51.9%

-- Basic and diluted EPS for the three months ended March 31, 2011 was $0.20 and $0.18, based on 14.51 million and 16.27 million shares outstanding, respectively, an increase of $0.01 in basic EPS and a decrease of $0.01 in diluted EPS from the same period in 2010 when there were approximately 14.31 million basic and 14.40 million diluted shares outstanding.

Ms. Lianyun Han, CEO of Nutrastar, commented, "Nutrastar's first quarter 2011 was marked by continued sales growth, further expansion of our functional health drink distribution network and production capacity, as well as the introduction of a new entry level variation of our beverage product. Revenue growth continued at a strong and steady pace, as seen in our recorded quarterly sales growth of 21.6%. For the first quarter 2011, gross profit percentage was 76.4%, a slight decrease from 77.8% year-over-year as a result of a change in our product mix and the introduction of our beverage line, which has lower gross margins than our core commercially cultivated Cordyceps product.

"On the distribution side, we've brought our Cordyceps beverage product line into select restaurants and hotels in Changzhou City, Jiangsu Province, which has already seen good reception. More recently, we've branched into Anqing City, Anhui Province, an opportunistic marketplace for our consumer beverage product line and the next step of our commercialized rollout. In an effort to increase our footprint in these cities, we've taken initiatives to expand the reach and attractiveness of our Cordyceps drink through media advertisements, including television commercials, newspaper advertising and promotional events. In March, we announced the debut of our entry level drink "Yang Yang Ba," which is now available in Yancheng and Anqing. Looking forward, we anticipate Yang Yang Ba, an entry level priced version of our premium Cordyceps drink, will help to further grow our consumer base and drink sales within the Chinese market. We are excited for the remainder of 2011, and expect to attain our revenue guidance as stated for the year, further the growth of our product portfolio, continue our Cordyceps production capacity expansion and broaden our geographical reach in China," concluded Ms. Han.

Outlook

For the year ending December 31, 2011, based on management's current expectations, they maintain their belief that revenue will be in the range of $32.0 million to $36.0 million.


Wednesday, May 4, 2011
Comments & Business Outlook

HARBIN, China, May 4, 2011 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded Traditional Chinese Medicine ("TCM") consumer products, today announced that it has expanded its distribution, signing new distribution contract for its value-oriented "Ban Ke Chong Cao" health drink and new entry-level "Yang Yang Ba" health drink. Beginning in May 2011, the drinks will be available in twenty-seven convenience stores located in Yancheng City.

Yancheng is located in northern Jiangsu with a population of approximately 8 million. With the distributor in place, Nutrastar beverage products are now available in 4 cities in Jiangsu.

The Yancheng contract is a milestone for the company in that it represents the first step in the national rollout of the Company's value and entry-level beverage products. These products add to the Company's existing portfolio of mid-range and high-end products available through Nutrastar's distribution network. All drink variations are also available in the company's specialty store located in Daqing City, Heilongjiang Province.

Ms. Lianyun Han, CEO and Founder of Nutrastar, commented, "The addition of Yancheng to our distribution network is an important step in our expansion into China's consumer functional drink market. The new channel will further increase our company's brand visibility and we are excited to use it to debut our entry-level and mid-range drink at an affordable price point. We will continue to build our distribution networks within Jiangsu and in other regions of China, and keep the investment community updated when such arrangements are finalized."


Monday, March 28, 2011
Comments & Business Outlook

Year End Results and Guidance:

  • Total revenue generated from sales of Nutrastar's consumer products was $24.24 million, an increase of $8.91 million or 58.1% from approximately $15.33 million for the same period in 2009
  • Overall gross profit was $19.6 million, an increase of $8.84 million or 82% from approximately $10.77 million during the same period in 2009
  • Net income was $13.44 million, an increase of $5.7 million or 73.7% from $7.74 million in the full year 2009.
  • Basic and diluted EPS for the year ended December 31, 2010 was $0.80 and $0.79, based on 14.33 million and 14.48 million shares outstanding, respectively, an increase of $0.21 per basic and diluted share from the same period in 2009 when there were approximately 13.13 million basic and 13.34 million diluted shares outstanding.

Commenting on the annual results, Ms. Han stated, "2010 was a year of great strides and accomplishments for our Company. Having successfully completed a significant portion of our capacity expansion plan, we've now brought our annual capacity to 72 tons going into 2011. Capacity expansion will continue through 2011 and 2012 and upon completion of the current plan, we expect capacity to reach over 100 tons going into year 2013. Nutrastar saw the highest recorded sales of our core Cordyceps products, hitting $22.04 million for the year. Cordyceps products, especially our high-margin, small packaged products, have continued to see strong sales growth and steady order flow. Earnings per share have continued to rise significantly, resulting in increased value to our shareholders."

For the year ending December 31, 2011, based on management's current expectations, revenue will be in the range of $32.0 million to $36.0 million.  The company intends to utilize its existing cash position for capacity expansion, marketing and distribution of its new beverage products and general corporate purposes.


Tuesday, February 8, 2011
Comments & Business Outlook

HARBIN, China, Feb. 8, 2011 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. announced today that it has expanded distribution for its functional health drink to include numerous hotels and restaurants in Changzhou, Jiangsu Province.

"The hospitality and restaurant industry has the potential to be a very lucrative market for our premium beverage product. The addition of these new distribution channels to include select hotels and restaurants not only gives our Ban Ke Chong Cao product access to more consumers on a daily basis, but also lays the groundwork for building the Ban Ke Chong Cao brand among one of our key target customer segments. We look forward to continuing to explore the hospitality and restaurant market as we expand our distribution channels in Jiangsu and across China," commented Ms. Lianyun Han, Founder and Chief Executive Officer of Nutrastar.

The new channels expand Nutrastar's "Ban Ke Chong Cao" drink presence to now over 90 Points of Sale ("POS") withinChangzhou, including more than 50 supermarkets and convenience stores, 29 hotels and 10 restaurants. Changzhou, the site of the drink's initial rollout in Q4 2010, is situated in China's affluent Yangtze Delta region about 160 kilometers west ofShanghai and has a population of roughly 4.5 million people.


Monday, December 20, 2010
Comments & Business Outlook
ARBIN, China, Dec. 20, 2010 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc.  today announced that the Company has signed two new distribution agreements, which will bring Nutrastar's functional health drink product containing Chinese Golden Grass to the cities of Wuxi and Nantong in Jiangsu Province.

In December 2010, Nutrastar signed agreements with key distributors in Wuxi and Nantong, major cities in China's affluent Jiangsu province, with populations of 4.6 million and 7.7 million, respectively. Through the agreements, Nutrastar's new 210ml functional Golden Grass health drink products under its Chinese brand name "Ban Ke Chong Cao" will be available in Parkson and other retail locations in Wuxi and in wholesale markets in Nantong.

"Wuxi and Nantong are fast growing metropolitan areas with robust economies and brand-conscious consumers," commented Ms. Lianyun Han, Founder and Chief Executive Officer of Nutrastar. "With approximately 12 million people between the two cities, this is a natural extension of our initial rollout of Ban Ke Chong Cao in Jiangsu Province. We are excited to be entering these burgeoning new markets and look forward to expanding our distribution to additional key regions and cities in 2011."


Wednesday, December 15, 2010
Comments & Business Outlook

/PRNewswire-Asia/ -- Nutrastar International Inc. today announced that it has completed its 2010 expansion plans, increasing annual production capacity from 55 tons to 72 tons.

As disclosed in August 2010, in order to expand the Company's branded Chinese Golden Grass product offerings and to meet the raw material demand needed to effectively launch new functional health drink products, the Company planned to increase production capacity to 72 tons by the end of 2010 and to over 100 tons by the end of 2012. The 2010 expansion plans were successfully completed by bringing online three additional production facilities at the Company's production base in Heilongjiang, China.

Ms. Lianyun Han, Founder and Chief Executive Officer of Nutrastar commented, "We are thrilled to have completed this significant expansion project, which increases our annual production capacity by over 30%. This will allow us to continue to expand our product pipeline and market share in the TCM consumer products market."  She added, "Our new functional health drinks containing Chinese Golden Grass are now in more than 50 supermarkets and convenience stores in the city of Changzhou, Jiangsu Province. We are looking forward to further expanding distribution of our beverage and other consumer products in 2011."


Monday, November 15, 2010
Comments & Business Outlook

Financial Highlights for the Three Months Ended September 30, 2010:

  • Recorded revenues of $6.46 million, an 81.2% increase Year-Over-Year
  • Gross profit of $5.28 million, an increase of $2.51 million or 90.6% Year-Over-Year
  • Net income rises 100.4% Year-Over-Year to $4.07 million, representing a net margin of 62.9%
  • Basic earnings per share ("EPS") increases to $0.28; Diluted EPS increases to $0.25 vs. $0.15.

Ms. Lianyun Han, President and Chief Executive Officer of Nutrastar commented, "We are very pleased by Nutrastar's most recent three month and nine month financial performance, posting record sales of our golden grass products and earnings for our shareholders. Chinese Golden Grass products, especially our high margin, small packaged products, have seen steady, healthy sales volume and order flow."

Ms. Han continued, "In the third quarter not only did the Company outperform financially, but we have continued to make strides growing our manufacturing capabilities, expanding our TCM consumer product line and geographical reach, and improving our investor relations and corporate governance efforts. As announced early in the quarter, we are in the midst of expanding our production capacity to 72 tons by the end of 2010. We believe we are well on the way to meeting this goal. We announced in July 2010 the signing of a product purchase agreement with Century Brighton Holdings, which will further expand our TCM customer base and penetration into the wealthy Hong Kong market. We have been well received in this market and look forward to continued growth on both the product side and customer side. The development of our Golden Grass wine and oral liquids are on track and is expected to commence trial production in Q1 2011."

Ms. Han further commented, "So far in the fourth quarter, we began the initial rollout of our functional health drink with the signing of a key distributor in Changzhou city. We are very excited to be bringing this TCM based health beverage to the public market and look forward to further expanding its presence in other key areas and cities in China. With our new TCM functional health drink product line and the continued growth of our commercially cultivated Golden Grass product line, we expect to further expand our market position as a leading producer and supplier of premium TCM consumer products."

Recent Events

On October 5, 2010, the Company elected Mr. Henry Ngan, Ms. Virginia P'an and Mr. Jianbing Zhong as independent directors.  As a result, the majority of the Company's board members are now independent.  Each newly elected independent director was also appointed to the newly established Audit Committee, Compensation Committee and Governance and Nominating Committee of the board of directors of the Company.  Mr. Ngan was appointed as the Chair of the Audit Committee, Ms. P'an was appointed as the Chair of the Compensation Committee and Mr. Zhong was appointed as the Chair of the Governance and Nominating Committee.


Liquidity Requirements
We believe that our cash on hand, cash flow from operations as well as the proceeds we received from the recent private placement transactions will meet our expected capital expenditure and working capital for the next 12 months. However, we may in the future require additional cash resources due to changed business conditions, implementation of our strategy to expand our production capacity or other investments or acquisitions we may decide to pursue.

Thursday, October 28, 2010
Ownership Structure Info.

Nutrastar switches from a foreign invested enterprise (FIE) to a variable interest entity (V(E)

On July 28, 2008, pursuant to a restructuring plan intended to ensure compliance with Chinese regulatory requirements, the Founders entered into an equity transfer agreement with New Resources, pursuant to which the Founders transferred all of their equity interests in Heilongjiang Shuaiyi to New Resources for a purchase price of RMB 60 million (approximately $8.8 million). As a result, New Resources became the 100% owner of Heilongjiang Shuaiyi. According to relevant Chinese laws, the equity interest transfer price should be paid by New Resources to the Founders in full within a certain period of time after Heilongjiang Shuaiyi obtained the new business license. Because New Resources will not be able to pay off the equity interest transfer price within such required time period, New Resources and the Founders have decided to transfer all of the equity interests in Heilongjiang Shuaiyi owned by New Resources back to the Founders.


Tuesday, August 17, 2010
Comments & Business Outlook

Financial Highlights for the Three Months Ended June 30, 2010:

  • Revenues increase 63.4%.
  • Gross margin increases 19.1% to 83.7%.
  • Net income was $3.42 million, an increase of $1.92 million, or 127.7%.
  • Basic and diluted earnings per share for both quarters ended June 30, 2010 and 2009 was $0.12.

Ms. Lianyun Han, President and Chief Executive Officer of Nutrastar commented, "Nutrastar's performance in the second quarter was exceptional. We saw heightened consumer demand for our Golden Grass products, especially our high margin, small packaged products. This significant increase in sales suggests that consumer knowledge of the medicinal benefits of Chinese Golden Grass is gaining traction and the nutraceutical market in China is growing at a healthy rate. On a quarterly basis, revenues increased by roughly 63.4% and EPS reached $0.12, outstanding growth given the current volatile economic environment."

Ms. Han continued, "Since the second quarter ended, we announced a few important measures that will prepare the company for significant expansion and growth in the time ahead:

  • We plan to expand our manufacturing capabilities by over 30%, increasing our production capacity to 72 tons by the end of 2010.
  • In addition to expanding our production capacity, we are also continuously seeking to further our geographical footprint and diversify our Golden Grass product pipeline.
  • We announced in July 2010 the signing of a product purchase agreement with Century Brighton Holdings, which will further expand our customer base and penetration into the lucrative Hong Kong market.
  • We also announced the patent application of our Golden Grass wine and oral liquids which we anticipate will be in trial production in Q1 2011.

It's expected that with our increased production capabilities, continued efforts on the R&D side, as well as further expansion of distribution network, Nutrastar will show consistent growth on both the revenue side and product side going forward."

GeoTeam note:

It seems that the company may have inadvertently presented its EPS number incorrectly.  It appears that $0.12 is a GAAP number based on net income of $1,659,654, after subtracting a non-cash item (Beneficial conversion feature of convertible preferred stock 1,742,239.  $3.42 million is the cleaner number and would result in EPS of $0.24. Further, subtracting a warrant gain figure of $131 thousand equates to net income $3.3 million or EPS $0.23.

Also see message board note by Xantu.


Wednesday, June 16, 2010
Investor Presentations

Here is the latest research report offered by China Growth Partners on NUIN:


Thursday, March 25, 2010
Research

The GeoTeam will be tracking the Nutrastar Intl story. The company just reported strong 2009 fourth quarter results:

  Q4 2009 Q4 2008 CHANGE
          
Sales $3.8 M $2.8 M 34.00%
Gross Profit $3.0 M $1.8 M 64.30%
GAAP Net Income $2.0 M ($1.2M) N/A
Adjusted Net Income $2.0 M $0.9 M* 118.00%
GAAP EPS $0.14 ($0.10) N/A
Adjusted EPS $0.14 $0.08* 75.00%

* Excludes one-time non-cash merger costs of $2.1 million in Fourth Quarter 2008

For the full year NUIN reported adjusted EPS of $0.58 compared to $0.49 in 2008.

There are still a few things to iron out:

  • Make goods net income targets are not as strong as we would like
  • The company needs to raise funds from foreign investors to comply with regulatory requirements surrounding its reverse merger.

Still, with strong commentary and shares trading at a P/E of only 7, we believe the story is worth monitoring for upside surprises.


Comments & Business Outlook

During 2010, Nutrastar plans to further increase the percentage of total revenue generated through sales of Chinese Golden Grass, both through increased sales of product processed and packaged for the consumer marketplace as well as sales of raw material to the pharmaceutical industry. The Company expects that further product awareness, widespread availability and increased health awareness among Chinese consumers will drive consumer adoption and sales for the Company's Golden Grass.

A major initiative of Nutrastar's future growth strategy is the introduction of new, value-added products targeting multiple downstream markets, including mass consumer, nutraceutical and pharmaceutical markets. After successfully introducing the small package consumer cordyceps products, the Company's growth plan during 2010 will include introducing a new branded specialty beverage product known as "Golden Grass Energy Drink". Commercialization of Golden Grass Energy Drink is scheduled for the second quarter of 2010, targeting affluent, professional, athletic and elderly consumers.

In support of its growth strategies, Nutrastar plans to increase annual production capacity from its current capacity of 55 tons to 65 tons by the end of 2010. Nutrastar operates the world's largest Chinese Golden Grass planting base, and employs patented technology in the cultivation and commercialization of Chinese Golden Grass. The Company also has cutting edge research and development capabilities that drives technology innovation.

"Given our leadership position in a growing market with high barriers to entry, supported by a well known and certified product brand, we are very optimistic about our growth prospects for 2010 and beyond," added Mr. Daniel Lee, CFO. "We anticipate incremental revenue and earnings growth of our higher margin Chinese Golden Grass products. We are very pleased with our progress to grow sales through downstream market applications and look forward to the successful launch of our specialty consumer beverage. In addition, we will be expanding into new pharmaceutical, nutraceutical and mass consumer markets which will bring the Company additional distribution channels, technologies and licensing opportunities, as we aim to become a leading nutraceutical company in China."


Financial Target Agreements

The majority stockholder of the Company, New Zealand WAYNE’s Investment Holdings Co., Ltd. agreed to place a total of 1,000,000 shares of the Company’s common stock held by it into escrow to secure the make good obligations:

  •  In the event that the Company’s consolidated financial statements reflect less than $9,000,000 of after-tax income for the fiscal year ending December 31, 2010, it will transfer to the Investors, on a pro rata basis, for no additional consideration, 500,000 shares of the Company common stock owned by it
  • In the event that the Company’s consolidated financial statements reflect less than $11,000,000 of after-tax net income for the fiscal year ending December 31, 2011, it will transfer to the Investors, on a pro rata basis, for no additional consideration, 500,000 shares of the Company’s common stock owned by it.