Shengtai Pharmaceutical, Inc. Reports Unaudited Third Quarter Fiscal 2009 Financi...(s compared to $65 million forthe same pe...),Health

Sales of glucose products totaled $8.4 million during the third quarter, representing 52% of revenues. Cornstarch sales totaled $3.6 million, or 22% of revenues. Sales of other products totaled $4.3 million, or 26% of revenues. Sales of glucose products for the nine months ended March 31, 2009 totaled $25.9 million, representing 53% of revenues. Cornstarch sales totaled $10.8 million, or 22% of revenues. Sales of other products totaled $12.5 million, or 25% of revenues.

Gross profit for the three months ended March 31, 2009, was $1.0 million compared with $4.5 million the same period last year. Gross margin for the quarter was 6.2%, as compared with 21.6% the same period last year. The decline in gross margin was mainly due to the lower overall sales volumes, and lower average selling prices ("ASP"). Gross profits for the nine months ended March 31, 2009 totaled $6.2 million, a decrease of $8.7 million compared to the same period last year. Gross margin for the nine months ended March 31, 2009 was 12.6%, as compared with 23% the same period last year.

Selling, general and administrative (SG&A) expenses during the quarter were $1.3 million, a decline of $281,754 compared with the third quarter last year. The Company implemented a new sales policy requiring some customers to manage their own shipping and handling, this lowered the Company's overall SG&A expense. Non-cash stock option expenses for the quarter were $158,818. Total SG&A expenses for the nine months ended March 31, 2009 totaled $6.1 million, an increase of $959,990 compared to the same period last year. Total non-cash stock option expenses for the nine months ended March 31, 2009 were $476,454, as compared with $158,818 the same period last year. The Company began granting stock options on January 4, 2008.

Operating loss for the quarter was $304,585 c
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