Nutrastar Up in 2Q10

HARBIN, ChinaNutrastar International Inc. (OTCBB: NUIN) released record results for its second quarter (2Q10), ended June 30. Revenues reached US$5.46 million, an increase of 63.4 percent from the comparable 2009 period; the company attributed the rise primarily to greater sales of its core product, Chinese Golden Grass, and higher selling prices for its packaged products. Gross profit hit US$4.57 million, up 112 percent from 2Q09, while gross margin was 83.7 percent, up 19.1 percent from the comparable 2009 quarter. Again, the growth was driven by increased sales of higher margin, small package Chinese Golden Grass items. Net income for 2Q10 was US$3.42 million compared to US$1.92 million in 2Q09.

The companys six months ended June 30 were similarly positive, with revenues hitting US$10.23 millionan increase of 28.1 percent from US$7.98 million during the comparable six months in 2009. Gross profit for the six months was US$8.28 million, an increase of 64.2 percent from US$5.04 million in the 2009 period.

"Nutrastar's performance in the second quarter was exceptional," said Lianyun Han, president and CEO. 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."

The company has also made several announcements since the end of the second quarter, which should help further drive growth. Nutrastar plans to expand its manufacturing capabilities by more than 30 percent by the end of 2010, which will provide the company with annual production capacity of 72 tons. The company also recently signed a product purchase agreement with Century Brighton Holdings, which will help Nutrastar reach into the Hong Kong market.