Nutrastar International (NUIN) 8-K Nutrastar International Inc. Announces Second Quarter 2015 Results

Nutrastar International Inc. Announces Second Quarter 2015 Results

Harbin, China, August 13, 2015-- Nutrastar International Inc. (OTC: 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, 2015.

Financial Highlights for the Three Months Ended June 30, 2015

• Net revenue was $13.24 million, representing an increase of $0.24 million or 1.8%from $13.00 million in the comparable 2014 three month period.

• Gross profit was $10.32 million, representing a gross margin of 77.9%.

• Net income was $7.08 million, representing a net margin of 53.4%.

• Basic and diluted EPS were $0.41 and $0.40, respectively, with 16.99 million basicshares and 17.74 million diluted shares outstanding.

Financial Highlights for the Six Months Ended June 30, 2015

• Net revenue was $20.29 million, representing an increase of $0.41 million or 2.0%from $19.87 million in the comparable 2014 six month period.

• Gross profit was $15.78 million, representing a gross margin of 77.8%.

• Net income was $10.61 million, representing a net margin of 52.3%.

• Basic and diluted EPS were $0.62 and $0.60, respectively, with 16.98 million basicshares and 17.74 million diluted shares outstanding.

Management Commentary

Ms. Lianyun Han, CEO of Nutrastar, commented, “For the first half of 2015, we performed in line with our expectations. Sales of our core premium consumer product Cordyceps came in at $17.29 million, up 3.1% year-over-year, functional health beverages contributed $1.83 million and organic and specialty foods segment, our third consumer product category, contributing $1.17 million to revenues. Gross margin expanded in the first half of the year by 0.9% to 77.8% as a result of economics of scale and an attractive product mix. 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.”

Ms. Han continued, “As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2015 revenue guidance. Demand for our premium consumer products remains steadfast and robust. We remain committed to growing our brand awareness, bringing more products into the hands of health-conscious consumers and expanding our market internationally.”

“As far as composition of our Board of Directors, after the resignation of Mr. Zhang Chunming due to personal health reasons, the Board currently comprised of six members, four of whom are independent directors. I would like to thank Mr. Zhang for his service over the past few years and wish him well in his future endeavors. The Company has started the recruitment process of a new director to fulfill the vacancy. We expect bringing on someone who can assist the Company in areas of product development and market expansion,” added Ms. Han.

Outlook for the Year Ending December 31, 2015

Based on management’s current expectations, full year 2015 revenue remains in the range of $43 million to $45 million.

For more information regarding Nutrastar’s financial performance during the three and six months ended June 30, 2015, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about August 13, 2015.

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 336 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 athttp://www.nutrastarintl.com/ or e-mail:ir@nutrastarintl.com

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Safe Harbor Statement

This 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:

Investor Relations
Tel:408-368-0254
Email:ir@nutrastarintl.com

NUTRASTAR 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,
		2015			2014			2015			2014
NET REVENUE	$	13,243,223		$	13,004,562		$	20,285,550		$	19,871,243
Cost of goods sold		(2,921,381	)		(2,953,060	)		(4,505,641	)		(4,581,314	)
GROSS PROFIT		10,321,842			10,051,502			15,779,909			15,289,929
Selling expenses		(427,661	)		(478,832	)		(725,286	)		(725,895	)
General and administrative expenses		(594,449	)		(533,618	)		(1,085,732	)		(1,206,633	)
Income from operations		9,299,732			9,039,052			13,968,891			13,357,401
Other income (expenses):
Interest income		114,822			97,226			226,229			189,084
Foreign exchange differences		6,240			(1,639	)		(1,831	)		(19,728	)
Total other income		121,062			95,587			224,398			169,356
Income before income taxes		9,420,794			9,134,639			14,193,289			13,526,757
Provision for income taxes		(2,342,967	)		(2,338,917	)		(3,584,285	)		(3,497,461	)
NET INCOME		7,077,827			6,795,722			10,609,004			10,029,296
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments		674,919			(17,913	)		149,745			(1,070,742	)
COMPREHENSIVE INCOME	$	7,752,746		$	6,777,809		$	10,758,749		$	8,958,554
Earnings per share:
Basic	$	0.41		$	0.40		$	0.62		$	0.59
Diluted	$	0.40		$	0.38		$	0.60		$	0.57
Weighted average number of shares outstanding:
Basic		16,996,396			16,858,667			16,977,221			16,758,599
Diluted		17,739,156			17,694,270			17,738,285			17,657,471

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS)

		June 30, 2015			December 31, 2014
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	137,730,508		$	126,542,564
Accounts receivable		95,620			93,066
Inventories		922,555			635,409
Prepayments and other receivables		1,706,928			1,489,800
Total current assets		140,455,611			128,760,839
OTHER ASSETS
Intangible assets, net		368,430			613,315
Property, plant and equipment, net		13,944,027			14,424,942
Total assets	$	154,768,068		$	143,799,096
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Other payables and accruals	$	954,724		$	990,290
Taxes payable		2,899,998			2,748,583
Due to a related party		524,212			511,054
Preferred stock dividend payable		742,778			690,662
Total current liabilities		5,121,712			4,940,589
Total liabilities		5,121,712			4,940,589
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, $0.001 par value, 1,000,000 shares authorized, 74,276 shares and 77,776 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively; aggregate liquidation preference amount: $2,079,728 and $ 2,177,728, plus accrued but unpaid dividend of $742,778 and $690,662, at June 30, 2015 and December 31, 2014, respectively		1,693,950			1,773,772
Common stock, $0.001 par value, 190,000,000 shares authorized, 17,039,951 shares issued and 16,996,396 shares outstanding at June 30, 2015; 16,953,541 shares issued and 16,909,986 shares outstanding at December 31, 2014		17,040			16,954
	��
Additional paid-in capital		21,315,259			21,122,372
Statutory reserves		4,989,033			4,989,033
Treasury stock, at cost, 43,555 shares as of June 30, 2015 and December 31,2014		(78,767	)		(78,767	)
Retained earnings		113,308,261			102,783,308
Accumulated other comprehensive income		8,401,580			8,251,835
Total stockholders' equity		149,646,356			138,858,507
Total liabilities and stockholders' equity	$	154,768,068		$	143,799,096

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(AMOUNTS EXPRESSED IN US DOLLARS)

		For the Six Months Ended June 30,
		2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	10,609,004		$	10,029,296
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		737,238			743,052
Share-based compensation expense		81,216			66,463
IR unregistered stock compensation expense		-			53,371
(Increase) decrease in assets:
Accounts receivable		(2,466	)		(37,370	)
Inventories		(285,869	)		(136,651	)
Prepayments and other receivables		(215,274	)		(68,381	)
Increase (decrease) in liabilities:
Other payables and accruals		(36,264	)		(127,833	)
Advance from related party		-			179,980
Taxes payable		148,615			(46,908	)
Net cash provided by operating activities		11,036,200			10,655,019
CASH FLOWS FROM FINANCING ACTIVITIES:
Advance from related party		10,951			29,704
Net cash provided by financing activities		10,951			29,704
Foreign currency translation adjustment		140,793			(960,635	)
INCREASE IN CASH AND CASH EQUIVALENTS		11,187,944			9,724,088
CASH AND CASH EQUIVALENTS, at the beginning of the period		126,542,564			102,599,186
CASH AND CASH EQUIVALENTS, at the end of the period	$	137,730,508		$	112,323,274
NON-CASH TRANSACTIONS
Preferred stock and dividend converted into common stock	$	111,757		$	958,897
Preferred stock dividend payable		84,051			88,249
Share-based payment to officers and directors under equity incentive plan		81,216			66,463
Share-based payment – IR unregistered stock compensation expense		-			53,371
SUPPLEMENTAL DISCLOSURE INFORMATION
Income taxes paid	$	3,494,213		$	3,502,450