Nutrastar International Inc.,, a nutraceutical firm that controls 19% of China’s engineered Chinese Golden Grass market and specializes in the rapidly growing organic and health food market, distributing its many goods via a distribution network spanning 10 provinces, detailed its 1Q FY10 (ending March 31) results today.

Strong demand, as the Chinese health kick continues unabated for the Company’s well known brand of products, led to growth in both revenue and net income:

• Revenue up 2.7% (compared with 1Q 09) to $4.77M
• Gross Margin up 15.7% to 77.9%
• Operating Profit up 25.9% to $3.11M
• Net Income up 25.3% to $2.72M
• Diluted EPS $0.19
• CoGS fell roughly 40% due to economy of scale and production enhancements
• CoGS as a percentage of revenue also fell 22.1% due to small package sales
• Gross Profit up 28.4% to $3.71M (as a percent of revenue also up 15.6%)
• General and Administrative Expenses increased accordingly by 42.9% to $0.43M
• Income Before Income Tax up 26.1% to $3.14M due to gross profits and increased sales

Revenue increases were due to uptake of Chinese Golden Grass and other offerings by an eager market, a per-unit hike in the sales price of packaged Chinese Golden Grass products and sustained infrastructural growth as a whole.

President and CEO of NUIN, Ms. Lianyun Han, commented on the healthy sales figures of Chinese Golden Grass products to both pharmaceutical and general consumer retail interest, noting that the Company has recently moved into a leading position among Chinese producers and beamed brightly speaking of the excellent brand identity and overall consumer consciousness regarding the product.

Going forward the Company looks to exploit its strong position and already remarkable investment potential by rolling out new products based on the maximum activity segments extant in their pipeline, planning to introduce a new specialty beverage “Golden Grass Energy Drink” in 2Q FY10.

Also on the slate is a ramp-up of production capacity and the Company looks to increase annual output from 55 to 65 tons by the close of the year, tapping into its huge agribusiness infrastructure, employee base and cutting-edge infrastructure.