WEIFANG, China, Aug. 22 /Xinhua-PRNewswire/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ("Shengtai Pharmaceutical" or "the Company"), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China and glucose and starch products that serve as raw materials for food, beverage and industrial production, announced today that it has retained CCG Elite to design and execute its investor relations campaign.
Shengtai Pharmaceutical is a profitable, rapidly growing medical raw materials supplier, which is positioning itself to become a leading manufacturer in Asia. To enhance its leadership position, the Company is implementing a vertical integration strategy to improve the quality and ensure the supply of its raw materials (corn starch). The Company’s new cornstarch plant with annual capacity of 240,000 tons began production at the beginning of 2007. Approximately 50% of the new plant’s output will be used as raw materials for glucose, and the other 50% will be sold to customers in the food and beverage, pharmaceutical and industrial industries. The Company believes the new facility will improve profit margins due to higher-quality and lower raw materials costs. In addition, the Company believes the plant will help maintain sustainable growth in its core business, pharmaceutical glucose, while allowing the Company to diversify its revenue base into new high-growth market sectors with value-added cornstarch products. For the fiscal year ended June 30, 2006, net sales totalled $36.0 million, up approximately 44.9% from $24.9 million in fiscal year ended June 30, 2005.
"Now that our cornstarch facility is up and running we can increase the capacity of our glucose facility. Up until now Shengtai Pharmaceutical has been capacity constrained, only able to produce enough product for our domestic market. As our next step, we will build a new pharmaceutical glucose production plant to serve our customers in a fast-expanding domestic, as well as overseas market," said Mr. Qingtai Liu, President of Shengtai Pharmaceutical Inc. "We look forward to collaborating with CCG Elite to increase our visibility in both the investment community and with the financial media as we launch this next phase of our growth plans."
According to IMS, a leading forecast provider of market intelligence to the pharmaceutical and healthcare industries, the world’s pharmaceutical market was valued at $643 billion in 2006. Projections show the market will expand to $750 billion by 2010, and grow at a compound annual rate of 5%-8% over the next five years. China’s share as a percentage of total global demand is expected to grow from 5% in 2004 to 10% in 2010 ($75 billion). By then, China will become the fifth largest market for pharmaceuticals in the world.
"Shengtai Pharmaceutical is positioned to benefit from the rapidly growing market for pharmaceutical glucose (dextrose) in China and in other countries," said Crocker Coulson, President of CCG Elite. "The Company believes its new capacity expansion can enable the Company to maintain its annual growth rate of 30% or more for the next three to five years."
About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly-owned subsidiary Shengtai Holding, Inc. (SHI), a New Jersey corporation, and the holding company for Weifang Shengtai Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of glucose products, which include pharmaceutical grade glucose used for medical purposes, and glucose and cornstarch products for the food and beverage industry and for industrial production in China. For more information about Shengtai Pharmaceutical, Inc. please visit http://www.chinaglucose.com .
About CCG Elite
CCG Elite is uniquely positioned to provide an outsourced, high-level investor relations solution that combines in-depth understanding of Asia’s corporate culture and economic scene and a direct pipeline into the leading funds and broker-dealers in the U.S. CCG Elite is a global, full-service investor relations agency with corporate headquarters in Los Angeles and offices in New York City, Newport Beach, Calif., Dallas, Texas, Hong Kong and Beijing. For further information, contact CCG Elite directly, or visit the Company’s Web site at http://www.ccgelite.com .
For more information, please contact:
Company Contact:
Mr. Philips Zhang
CFO
Shengtai Pharmaceutical, Inc.
Tel: +86-536-629-5728
Mobile: +86-158-536-89189
Email: shengtaicfo@hotmail.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Elite Investor Relations
Tel: +1-646-213-1915 (NY Office)
Email: crocker.coulson@ccgir.com