HARBIN, China, Aug. 13, 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"), functional health beverages and organic and specialty foods, today announced its results for the three months and six months ended June 30, 2014.
Financial Highlights for the Three Months Ended June 30, 2014
Financial Highlights for the Six Months Ended June 30, 2014
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.
Request for Call with Management
Investors are invited to request a call with Nutrastar's management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule.
For more information regarding Nutrastar's financial performance during the three and six months ended June 30, 2014, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about August 13, 2014.
About Nutrastar International Inc.Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: email@example.com
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Safe Harbor StatementThis news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information, please contact:
American Capital Ventures
Email: firstname.lastname@example.orgNUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (AMOUNTS EXPRESSED IN US DOLLARS) For the Three Months For the Six Months Ended June 30, Ended June 30, 2014201320142013NET REVENUE
19,285,470Cost of goods sold (2,953,060)(2,731,416)(4,581,314)(4,503,704)GROSS PROFIT 10,051,5029,142,91815,289,92914,781,766Selling expenses (478,832)(473,793)(725,895)(904,256)General and administrative expenses (533,618)(696,752)(1,206,633)(1,289,267)Income from operations 9,039,0527,972,37313,357,40112,588,243Other income (expenses): Interest income 97,22678,748189,084162,489Foreign exchange differences (1,639)31,644(19,728)26,457Change in fair value of warrants -173-173Total other income 95,587110,565169,356189,119Income before income taxes 9,134,6398,082,93813,526,75712,777,362Provision for income taxes (2,338,917)(2,120,129)(3,497,461)(3,399,869)NET INCOME 6,795,7225,962,80910,029,2969,377,493OTHER COMPREHENSIVE INCOME: Foreign currency translation adjustments (17,913)1,389,545(1,070,742)1,629,292COMPREHENSIVE INCOME
11,006,785Earnings per share: Basic
0.55Weighted average number of shares outstanding:Basic 16,858,66715,863,82616,758,59915,863,826Diluted 17,694,27016,993,92617,657,47116,993,926NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(AMOUNTS EXPRESSED IN US DOLLARS) June 30, 2014December 31, 2013(Unaudited)ASSETSCURRENT ASSETS Cash and cash equivalents
102,599,186 Accounts receivable 93,68856,922 Inventories 821,897691,847 Prepayments and other receivables 1,356,4241,300,012Total current assets 114,595,283104,647,967OTHER ASSETS Intangible assets, net 853,8091,107,737 Property, plant and equipment, net 14,843,12315,481,249Total assets$
121,236,953LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Other payables and accruals
1,167,957 Taxes payable 2,806,2142,879,172 Due to a related party 452,668265,223 Preferred stock dividend payable 604,666738,903Total current liabilities 4,893,8925,051,255Total liabilities 4,893,8925,051,255COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred Stock, $0.001 par value,1,000,000 shares authorized, 77,776
shares and 110,066 shares issued and outstanding at June 30, 2014 and
December 31, 2013, respectively; aggregate liquidation preference
amount:$2,177,728 and $3,081,848, plus accrued but unpaid dividend of
$604,666and $738,903, at June 30, 2014 and December 31, 2013,
respectively 1,773,7722,510,183 Common stock, $0.001 par value, 190,000,000 shares authorized, 16,908,54
shares issued and 16,864,986 shares outstanding at
June 30, 2014; 16,421,161 shares issued and 16,377,606 shares
outstanding at December 31, 2013 16,90916,422 Additional paid-in capital 21,012,79519,934,551 Statutory reserves 4,989,0364,983,935 Treasury stock, at cost, 43,555 shares
as of June 30, 2014 and December 31,2013 (78,767)(78,767) Retained earnings 90,178,82380,242,877 Accumulated other comprehensive income 7,505,7558,576,497Total stockholders' equity 125,398,323116,185,698Total liabilities and stockholders' equity$
121,236,953NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(AMOUNTS EXPRESSED IN US DOLLARS) For the Six Months Ended
June 30,20142013CASH FLOWS FROM OPERATING ACTIVITIES: Net income
9,377,493Adjustments to reconcile net income to cash provided by operating activities: Change in fair value of warrants -(173)Consultant restricted stock expense 53,371-Depreciation and amortization 743,052731,128Share-based compensation expense 66,463108,613(Increase) decrease in assets: Accounts receivable (37,370)(8,537)Inventories (136,651)(265,896)Prepayments and other receivables (68,381)885,634Increase (decrease) in liabilities: Other payables and accruals (127,833)305,355Advance from related party 179,980-Taxes payable (46,908)(197,651)Net cash provided by operating activities 10,655,01910,935,966CASH FLOWS FROM FINANCING ACTIVITIES: Advance from/(Repayment to) related party 29,704(27,009)Net cash provided by/(used in) financing activities 29,704(27,009)Foreign currency translation adjustment (960,635)1,412,437INCREASE IN CASH AND CASH EQUIVALENTS9,724,08812,321,394CASH AND CASH EQUIVALENTS, at the beginning of the period 102,599,18675,526,533CASH AND CASH EQUIVALENTS, at the end of the period$
87,847,927NON-CASH TRANSACTIONS Preferred stock and dividend converted into common stock
-Preferred stock dividend payable 88,249112,246Share-based payment to officers and directors under equity incentive plan66,463108,613Share-based payment – IR warrants 53,371-SUPPLEMENTAL DISCLOSURE INFORMATION Income taxes paid
|SOURCE Nutrastar International Inc.|
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