WEIFANG, Shandong, China, Feb. 26 /PRNewswire-Asia-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ("Shengtai" or "the Company"), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China, today updated investors regarding the current status of its sales and production.
The Company proactively lowered its cornstarch production during the fiscal year 2009 second quarter due to the worldwide economic downturn and the decrease in demand caused by it. This action allowed Shengtai to focus its resources on growing its domestic core glucose business and minimize risks. Going forward, a higher production rate combined with stable corn prices will help reduce the unit cost of our cornstarch products. Domestic PRC sales of the Company's core glucose products remain positive.
Shengtai's long-term strategy to become a fully integrated supplier of pharmaceutical grade glucose with significant market share both domestically and internationally remains intact. The more glucose sold, the more of Shengtai's cornstarch will be consumed internally, and the Company will be less exposed to market conditions. The aim of Shengtai's vertically integrated strategy is to ultimately consume most of cornstarch produced internally. With the benefit of the Chinese government's heavy investment in the health care sector, we believe that the Company's goal to become fully integrated may come sooner than expected.
"We have developed a robust platform that is both specialized and profitable. We believe that health care reform in the PRC will positively impact our business," commented Mr. Qingtai Liu, CEO of Shengtai Pharmaceutical, Inc. "With the Chinese government opening up the vast rural market which was historically underdeveloped with low medical budgets and little medical consumption, we have a new revenue stream which will add to the growth our glucose business. We believe this is an excellent opportunity for Shengtai because of our first mover advantage into these markets and our superior products."
For additional information regarding Shengtai Pharmaceutical and its related businesses, please visit http://www.shengtaipharmaceutical.com , as we recently updated our frequently asked questions (FAQ) section to include additional company- and industry-related questions.
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 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 China.
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, 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.
For more information, please contact: Shengtai Pharmaceutical, Inc. Ms. Yiru Melody Shi Chief Financial Officer Email: email@example.com Grayling Eddie Cheung Investor Relations Tel: +1-646-284-9414 Email: firstname.lastname@example.org
|SOURCE Shengtai Pharmaceutical, Inc.|
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