Dec 30 2011 --- Sunwin International Neutraceuticals, Inc., one of the top global providers of high quality stevia extracts including Rebaudioside A 98, announced its financial results for the second quarter and first six months of fiscal 2012.

Total revenues reached $3.6 million in the second quarter of fiscal 2012, an increase of 55% compared to the same period in fiscal 2011 and an increase of 25% sequentially from the first quarter of fiscal 2012. Total revenues for the first six months of fiscal 2012 reached $6.4 million, an increase of 39% compared to the same period in fiscal 2011. The increase in revenues was evident in both of our business segments: Stevioside and Chinese Medicine. Stevioside revenues increased due to higher sales volume of lower grades stevia products in the domestic market to Chinese manufacturers who use our products as raw materials coupled with a moderate increase in sales volume in the international market. The increase in Chinese Medicine revenues was driven by seasonally higher demand for livestock breeding in preparation for the Chinese holiday season thereby driving up demand for our products. Gross profit in the second quarter was $0.7 million, up by 63% from the second quarter of fiscal 2011. For the first six months of fiscal 2012, gross profit was $1.1 million, up by 9% from the same period in fiscal 2011. The consolidated gross profit margin for the second quarter improved to 19.4% compared to 18.5% for the same period in fiscal 2011 and 12.8% for the first quarter of fiscal 2012. The improvement in gross margin was primarily due to higher margins experienced in the Stevioside segment offset by a decline in margins in the Chinese Medicine segment, due to significantly higher raw material and energy costs for this segment.

Total operating expenses for the second quarter of fiscal 2012 were $1.4 million compared to $0.9 million in fiscal 2011. For the first six months of fiscal 2012, operating expenses were $2.8 million compared to $1.8 million for the same period in fiscal 2011. The increase in operating expenses for the second quarter and the first six months of fiscal 2012 was largely attributable to a $0.7 million loss on disposition of obsolete property and equipment. We reported a net loss attributable to Sunwin International of $741,000 or ($0.00) per share for the second quarter, compared to a net loss of $443,000 or ($0.00) per share in the second quarter of fiscal 2011. For the first six months of fiscal 2012, we reported a net loss attributable to Sunwin International of $1.7 million or ($0.01) per share, compared to a net loss of $876,000 or ($0.00) per share for the same period in fiscal 2011.

At October 31, 2011, cash was $8.0 million with working capital of $13.6 million compared to April 30, 2010 where cash was $10.6 million with working capital of $14.2 million. Shareholder's Equity attributable to Sunwin International increased to $29.3 million, up from $28.3 million at April 30, 2010.

Commenting on the results for the second quarter and first six months of fiscal 2012, Dongdong Lin, CEO of Sunwin International, stated, "We are pleased with the sales growth we have achieved in our Stevioside segment in the second quarter of fiscal 2012. We anticipate that the foundation we have built in our partnerships including our recently announced distribution agreement with Domino Foods, Inc. will begin to finally accelerate future sales in the North American marketplace. Additionally, the approval of stevia in November, for use in the food and beverage industry in the EU has opened one of the largest worldwide marketplaces for our higher grade stevia products. We believe that Sunwin has positioned itself to be in the forefront of these markets with our distribution partners and anticipate potential sales growth for our stevia extracts as food and beverage companies around the world begin to adopt all natural stevia as the best alternative for their products in the no calorie and low calorie segments."