QINGDAO, China and Rockville, Md. June 19 /PRNewswire-Asia/ -- Synutra International, Inc. (Nasdaq: SYUT, "Synutra"), a leading infant formula company in China, and a producer, marketer and seller of nutritional products for infants, children and adults, stated today that its Form 10-K, filed on June 15, 2009, included an unqualified audit opinion in which Synutra's independent auditor, Deloitte Touche Tohmatsu CPA Ltd. ("DTTC"), included an explanatory paragraph expressing substantial doubt regarding Synutra's ability to continue as a "going concern" in its report on Synutra's financial statements for the fiscal year ended March 31, 2009.
Liang Zhang, Chairman and CEO of Synutra, commented, "We are making efforts to overcome any doubt about our ability to continue as a going concern. We continue to pursue our market recovery strategies and to address our short-term working capital deficit head on. We are making good progress in our negotiations with ABN Amro regarding the refinancing of the original $35 million loan, and expect to commence our repayment schedule later this year. We are also currently in the process of evaluating funding alternatives, including seeking refinancing of certain of our short-term loans from PRC banks. I want to reiterate that we are increasingly confident that we can return to profitability and financial stability by the end of the current fiscal year, which ends on March 31, 2010. The rising sales and narrowing losses demonstrated in our third to fourth quarter sequential results demonstrate our progress thus far."
As a result of the melamine incident and the related product recall, Synutra experienced significant operating losses and negative cash flows from operations for the fiscal year ended March 31, 2009. In addition, the operating losses have resulted non-compliance with certain covenants under its ABN Amro loan agreement.
This announcement is being made in compliance with Nasdaq Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of receipt of an audit opinion that contains a going concern qualification.
Synutra's Forms 10-K are available online: http://www.synutra.com .
About Synutra International, Inc.
Synutra International, Inc. is a leading infant formula company in China. It principally produces, markets and sells its products under the "Shengyuan," or "Synutra," name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through an extensive nationwide sales and distribution network covering 29 provinces and provincial-level municipalities in China. As of March 31, 2009, this network comprised over 480 distributors and over 800 sub-distributors who sell Synutra products in over 65,000 retail outlets.
For more information, please contact: Weiguo Zhang of Synutra International, Inc. Tel: +1-301-840-3888 Email: email@example.com Web: http://www.synutra.com Delia Cannan of Taylor Rafferty Tel: +1-212-889-4350 Email: firstname.lastname@example.org
|SOURCE Synutra International, Inc.|
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