NEVADA
|
56-2416925
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
6 SHENGWANG AVE., QUFU, SHANDONG, CHINA
|
273100
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol (s)
|
Name of each exchange on which registered
|
None
|
SUWN
|
Not applicable
|
Large accelerated filer [ ]
|
Accelerated filer [ ]
|
Non-accelerated filer [ ]
|
Smaller reporting company [X]
|
Emerging growth company [ ]
|
|
|
Page
|
PART I-FINANCIAL INFORMATION
|
|
Item 1. Financial Statements
|
1
|
|
|
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
20
|
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
28
|
|
|
Item 4. Controls and Procedures
|
29
|
|
|
PART II-OTHER INFORMATION
|
|
Item 1. Legal Proceedings
|
29
|
|
|
Item 1A. Risk Factors
|
30
|
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
30
|
|
|
Item 3. Defaults Upon Senior Securities
|
30
|
|
|
Item 4. Mine Safety Disclosures
|
30
|
|
|
Item 5. Other Information
|
30
|
|
|
Item 6. Exhibits
|
30
|
When used in this report, the terms:
|
|||
|
-
|
|
"Sunwin", "we", "us" and the "Company" refers to Sunwin Stevia International, Inc., a Nevada corporation formerly known as Sunwin Neutraceuticals International, Inc., and our subsidiaries;
|
|
-
|
|
"Sunwin Tech" refers to our wholly owned subsidiary Sunwin Tech Group, Inc., a Florida corporation, which was closed on April 30, 2018 and all of its assets and liabilities were transferred to the Company;
|
|
-
|
|
"Qufu Natural Green" refers to our wholly owned subsidiary Qufu Natural Green Engineering Co., Ltd., a Chinese limited liability company;
|
|
-
|
|
"Sunwin USA" refers to Sunwin USA, LLC, a Delaware limited liability company, a 100% owned subsidiary of Sunwin. Sunwin USA was previously Sunwin Stevia International Corp., a Florida corporation, it was
converted to Sunwin USA in May 2009;
|
|
-
|
|
"Qufu Shengwang" refers to Qufu Shengwang Stevia Biology and Science Co., Ltd., a Chinese limited liability company. Qufu Natural Green owns a 100% interest in Qufu Shengwang. On July 30, 2019, Qufu Natural Green
sold its 100% interest of Qufu Shengwang to a third party; and
|
|
-
|
|
"Qufu Shengren" refers to Qufu Shengren Pharmaceutical Co., Ltd., a Chinese limited liability company, and a wholly owned subsidiary of Qufu Natural Green.
|
|
|
|
|
We also use the following terms when referring to certain related parties:
|
|||
|
-
|
|
Mr. Laiwang Zhang, Chairman and a principal shareholder of our company;
|
|
-
|
|
"Pharmaceutical Corporation" refers to Shandong Shengwang Pharmaceutical Co., Ltd., a Chinese limited liability company which is controlled by Mr. Laiwang Zhang;
|
|
-
|
|
"Qufu Shengwang Import and Export" refers to Qufu Shengwang Import and Export Co., Ltd., a Chinese limited liability company, controlled by Mr. Zhang; and
|
|
-
|
|
Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd.
|
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
|
October 31,
2019
|
April 30,
2019
|
||||||
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
310,830
|
$
|
294,199
|
||||
Accounts receivable, net of allowance for doubtful accounts of $74,746 and $78,159, respectively
|
1,931,226
|
2,985,166
|
||||||
Accounts receivable - related party
|
2,876,470
|
2,477,659
|
||||||
Inventories, net
|
13,269,792
|
11,991,956
|
||||||
Prepaid expenses and other current assets
|
3,725,001
|
1,676,347
|
||||||
Current assets held for sale
|
-
|
4,143,059
|
||||||
Total Current Assets
|
22,113,319
|
23,568,386
|
||||||
|
||||||||
Property and equipment, net
|
9,204,584
|
8,993,397
|
||||||
Non-current assets held for sale
|
-
|
2,925,706
|
||||||
Total Assets
|
$
|
31,317,903
|
$
|
35,487,489
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable and accrued expenses
|
$
|
9,395,092
|
$
|
7,680,049
|
||||
Short-term loans
|
9,516,786
|
6,079,983
|
||||||
Due to related parties
|
6,171,431
|
6,408,521
|
||||||
Current liabilities held for sale
|
-
|
988,748
|
||||||
Total Current Liabilities
|
25,083,309
|
21,157,301
|
||||||
|
||||||||
Long-term loans
|
2,726,730
|
9,845,706
|
||||||
Liabilities held for sale, non-current
|
-
|
947,445
|
||||||
Total Liabilities
|
27,810,039
|
31,950,452
|
||||||
|
||||||||
Commitments and Contingencies
|
||||||||
|
||||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 199,632,803 and 199,632,803 shares issued and outstanding as of October 31, 2019 and April 30, 2019, respectively
|
199,633
|
199,633
|
||||||
Additional paid-in capital
|
37,681,279
|
37,681,279
|
||||||
Accumulated deficit
|
(38,694,600
|
)
|
(38,503,256
|
)
|
||||
Accumulated other comprehensive income
|
4,321,552
|
4,159,381
|
||||||
Total Stockholders' Equity
|
3,507,864
|
3,537,037
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
31,317,903
|
$
|
35,487,489
|
||||
|
||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
|
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
For the Three Months Ended October 31,
|
For the Six Months Ended October 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Revenues
|
$
|
4,846,915
|
$
|
4,171,543
|
$
|
9,953,097
|
$
|
7,769,123
|
||||||||
Revenues - related parties
|
2,314,666
|
714,157
|
4,098,559
|
2,113,737
|
||||||||||||
Total revenues
|
7,161,581
|
4,885,700
|
14,051,656
|
9,882,860
|
||||||||||||
Cost of revenues
|
3,618,881
|
3,822,845
|
7,739,510
|
7,040,944
|
||||||||||||
Cost of revenues - related parties
|
2,068,261
|
683,541
|
3,716,500
|
1,898,151
|
||||||||||||
Total cost of revenues
|
5,687,142
|
4,506,386
|
11,456,010
|
8,939,095
|
||||||||||||
Gross profit
|
1,474,439
|
379,314
|
2,595,646
|
943,765
|
||||||||||||
|
|
|||||||||||||||
Operating expenses:
|
|
|
||||||||||||||
Selling expenses
|
502,773
|
447,792
|
877,205
|
935,447
|
||||||||||||
General and administrative expenses
|
281,733
|
646,574
|
684,095
|
1,408,406
|
||||||||||||
Research and development expenses
|
339,401
|
149,891
|
645,952
|
381,657
|
||||||||||||
Total operating expenses, net
|
1,123,907
|
1,244,257
|
2,207,252
|
2,725,510
|
||||||||||||
Income (loss) from operations
|
350,532
|
(864,943
|
)
|
388,394
|
(1,781,745
|
)
|
||||||||||
Other (expenses) income
|
|
|
||||||||||||||
Other expense
|
(37,907
|
)
|
(13,887
|
)
|
(39,442
|
)
|
(14,633
|
)
|
||||||||
Grant income
|
-
|
|
-
|
14,313
|
-
|
|||||||||||
Interest income
|
184
|
57
|
268
|
132
|
||||||||||||
Interest expense - related party
|
(28,359
|
)
|
(29,973
|
)
|
(64,100
|
)
|
(65,691
|
)
|
||||||||
Interest expense
|
(92,559
|
)
|
(167,585
|
)
|
(237,346
|
)
|
(316,936
|
)
|
||||||||
Total other expense
|
(158,641
|
)
|
(211,388
|
)
|
(326,307
|
)
|
(397,128
|
)
|
||||||||
Income (loss) from continuing operations before income taxes
|
191,891
|
(1,076,331
|
)
|
62,087
|
(2,178,873
|
)
|
||||||||||
Provision for income taxes
|
-
|
-
|
-
|
-
|
||||||||||||
Net income (loss) from continuing operations
|
$
|
191,891
|
$
|
(1,076,331
|
)
|
$
|
62,087
|
$
|
(2,178,873
|
)
|
||||||
Discontinued operations
|
|
|
||||||||||||||
Loss from discontinued operations, net of income tax
|
-
|
(29,012
|
)
|
(20,016
|
)
|
(116,807
|
)
|
|||||||||
Loss from disposal of discontinued operations
|
-
|
-
|
(960
|
)
|
-
|
|||||||||||
Loss from sales of subsidiary
|
- |
- |
(232,455 |
) |
- |
|||||||||||
Loss from discontinued operations, net of income tax
|
-
|
(29,012
|
)
|
(253,431
|
)
|
(116,807
|
)
|
|||||||||
Net income (loss)
|
$
|
191,891
|
$
|
(1,105,343
|
)
|
$
|
(191,344
|
)
|
$
|
(2,295,680
|
)
|
|||||
Comprehensive income (loss):
|
-
|
-
|
||||||||||||||
Net income (loss)
|
$
|
191,891
|
$
|
(1,105,343
|
)
|
$
|
(191,344
|
)
|
$
|
(2,295,680
|
)
|
|||||
Foreign currency translation adjustment
|
(106,388
|
)
|
(151,472
|
)
|
162,171
|
(788,688
|
)
|
|||||||||
Total comprehensive income (loss)
|
$
|
85,503
|
$
|
(1,256,815
|
)
|
$
|
(29,173
|
)
|
$
|
(3,084,368
|
)
|
|||||
Earnings per common share:
|
||||||||||||||||
Continuing operations - basic and diluted
|
$
|
0.00
|
$
|
(0.01
|
)
|
$
|
0.00
|
$
|
(0.01
|
)
|
||||||
Discontinued operations - basic and diluted
|
0.00
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
|||||||||
Net loss per common share - basic and diluted
|
$
|
0.00
|
$
|
(0.01
|
)
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
|||||
Weighted average common shares outstanding - basic and diluted
|
199,632,803
|
199,632,803
|
199,632,803
|
199,632,803
|
||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
|
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(UNAUDITED)
|
||||||||
|
For the Six Months Ended October 31,
|
|||||||
|
2019
|
2018
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(191,344
|
)
|
$
|
(2,295,680
|
)
|
||
Loss from discontinued operations
|
(253,431
|
)
|
(116,807
|
)
|
||||
Net income (loss) from continuing operations
|
62,087
|
(2,178,873
|
)
|
|||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
|
||||||||
Depreciation expense
|
568,345
|
533,974
|
||||||
Loss on disposition of property and equipment
|
20,426
|
-
|
||||||
Stock issued for employees' compensation
|
-
|
613,334
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable and notes receivable
|
739,720
|
(328,555
|
)
|
|||||
Accounts receivable - related party
|
(510,987
|
)
|
1,072,791
|
|||||
Inventories
|
(1,815,660
|
)
|
(454,889
|
)
|
||||
Prepaid expenses and other current assets
|
(1,947,403
|
)
|
(2,766,876
|
)
|
||||
Accounts payable and accrued expenses
|
2,564,069
|
(2,821,854
|
)
|
|||||
Taxes payable
|
106,853
|
(68,310
|
)
|
|||||
NET CASH USED IN OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
|
(212,550
|
)
|
(6,399,258
|
)
|
||||
NET CASH PROVIDED BY (USED IN) DISCONTINUED OPERATING ACTIVITIES FROM DISCONTINUED OPERATIOIN
|
(339,925
|
) |
6,750
|
|||||
NET CASH USED IN OPERATING ACTIVITIES
|
(552,475 |
) |
(6,392,508
|
)
|
||||
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceed from disposal of discontinued operations
|
1,145,049
|
-
|
||||||
Purchases of property and equipment
|
(1,027,761
|
)
|
(627,996
|
)
|
||||
Proceed from disposal of equipment
|
30,473
|
-
|
||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
|
147,761
|
|
(627,996
|
)
|
||||
NET CASH (USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIOIN
|
-
|
(46,598
|
)
|
|||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
147,761
|
|
(674,594
|
)
|
||||
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from loans
|
429,393
|
5,418,234
|
||||||
Repayment of short term loans
|
-
|
(432,862
|
)
|
|||||
Advance from related parties
|
3,813,512
|
3,232,921
|
||||||
Repayment of related party advances
|
(3,795,447
|
)
|
(671,651
|
)
|
||||
NET CASH PROVIDED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
|
447,458
|
7,546,642
|
||||||
NET CASH (USED IN) FINANCING ACTIVITIES FROM DISCONTINUED OPERATIOIN
|
-
|
|
(1,367,613
|
)
|
||||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
447,458
|
|
6,179,029
|
|||||
|
||||||||
EFFECT OF EXCHANGE RATE ON CASH
|
(26,113
|
)
|
(37,482
|
)
|
||||
NET INCREASE (DECREASE) IN CASH
|
16,631
|
(925,555
|
)
|
|||||
|
||||||||
Cash at the beginning of period
|
294,199
|
75,917
|
||||||
Cash in discontinued operations at the beginning of year
|
-
|
1,024,831
|
||||||
Cash at the end of period
|
310,830
|
175,193
|
||||||
|
||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
|
||||||||
Cash paid for income taxes
|
$
|
-
|
$
|
-
|
||||
Cash paid for interest
|
$
|
60,235
|
$
|
96,077
|
||||
|
||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Property and equipment acquired on credit as payable
|
$
|
223,885
|
$
|
1,081,490
|
||||
Accrued interest converted into debt
|
$
|
124,453
|
$
|
131,482
|
||||
Accrued interest payable to related party
|
$
|
27,978
|
$
|
21,589
|
||||
Liabilities assumed in connection with sale of discontinued operations
|
$ |
3,565,397 |
$ |
- |
|
-
|
|
Stevioside; and
|
|
-
|
|
Corporate and other.
|
Level 1:
|
Observable inputs such as quoted market prices in active markets for identical assets or liabilities
|
Level 2:
|
Observable market-based inputs or unobservable inputs that are corroborated by market data
|
Level 3:
|
Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions.
|
|
Three Months Ended
October 31,
|
Six Months Ended
October 31,
|
||||||||||||||
Numerator:
|
||||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net income (loss) attributable to Sunwin Stevia International, Inc.
|
$
|
191,891
|
$
|
(1,105,343
|
)
|
$
|
(191,344
|
)
|
$
|
(2,295,680
|
)
|
|||||
Net income (loss) from continuing operations
|
$
|
191,891
|
$
|
(1,076,331
|
)
|
$
|
62,087
|
$
|
(2,178,873
|
)
|
||||||
Net loss from discontinued operation
|
-
|
(29,012
|
)
|
(253,431
|
)
|
(116,807
|
)
|
|||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per share - weighted average number of common shares outstanding
|
199,632,803
|
199,632,803
|
199,632,803
|
199,632,803
|
||||||||||||
Stock awards, options, and warrants
|
-
|
-
|
-
|
-
|
||||||||||||
Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding
|
199,632,803
|
182,066,546
|
199,632,803
|
199,632,803
|
||||||||||||
Basic and diluted loss per common share:
|
||||||||||||||||
Net income (loss) from continuing operations - basic and diluted
|
$
|
0.00
|
$
|
(0.01
|
)
|
$
|
0.00
|
$
|
(0.01
|
)
|
||||||
Net loss from discontinued operations - basic and diluted
|
0.00
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
|||||||||
Net income (loss) per common share - basic and diluted
|
$
|
0.00
|
$
|
(0.01
|
)
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
As of October 31, 2019 | RMB 7.04 to $1.00 |
As of April 30, 2019 | RMB 6.73 to $1.00 |
Six months ended October 31, 2019 | RMB 6.99 to $1.00 |
Six months ended October 31, 2018 | RMB 6.70 to $1.00 |
|
October 31,
2019
|
April 30,
2019
|
||||||
Assets: | ||||||||
Current assets:
|
||||||||
Cash
|
$
|
-
|
$
|
426,766
|
||||
Accounts receivable, net
|
-
|
322,902
|
||||||
Inventories, net
|
-
|
949,705
|
||||||
Due from related parties
|
-
|
2,308,159
|
||||||
Prepaid expenses and other
|
-
|
135,527
|
||||||
Total current assets
|
-
|
4,143,059
|
||||||
Property and equipment, net
|
-
|
985,630
|
||||||
Land use rights, net
|
-
|
1,795,362
|
||||||
Other long-term asset
|
-
|
144,714
|
||||||
Total assets
|
$
|
-
|
$
|
7,068,765
|
||||
Liabilities:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
-
|
$
|
389,521
|
||||
Accrued expenses and other liabilities
|
-
|
599,227
|
||||||
Total current liabilities
|
-
|
988,748
|
||||||
Long-term loans
|
-
|
947,445
|
||||||
Total liabilities *
|
$
|
-
|
$
|
1,936,193
|
|
Three Months Ended October 31,
|
Six Months Ended October 31,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Revenues
|
$
|
-
|
$
|
475,908
|
$
|
733,441
|
$
|
1,312,074
|
||||||||
Cost of revenues
|
-
|
347,370
|
572,357
|
1,079,367
|
||||||||||||
Gross profit
|
-
|
128,538
|
161,084
|
232,707
|
||||||||||||
Operating expenses
|
-
|
159,227
|
172,142
|
351,711
|
||||||||||||
Other income, net
|
-
|
1,677
|
8,958
|
2,197
|
||||||||||||
Loss before income taxes
|
-
|
29,012
|
20,016
|
116,807
|
||||||||||||
Income tax expense
|
-
|
-
|
-
|
-
|
||||||||||||
Loss from discontinued operations
|
-
|
29,012
|
20,016
|
116,807
|
||||||||||||
Loss from disposal, net of taxes
|
-
|
-
|
960 |
|
-
|
|||||||||||
Loss from sales of subsidiary
|
- |
- |
232,455 |
- |
||||||||||||
Total loss from discontinued operations
|
$
|
-
|
$
|
29,012
|
$
|
253,431
|
$
|
116,807
|
|
October 31, 2019
|
April 30, 2019
|
||||||
|
(unaudited)
|
|||||||
Raw materials
|
$
|
6,604,944
|
$
|
5,639,260
|
||||
Work in process
|
3,130,113
|
3,426,545
|
||||||
Finished goods
|
3,534,735
|
2,926,151
|
||||||
|
13,269,792
|
11,991,956
|
||||||
Less: reserve for obsolete inventory
|
-
|
-
|
||||||
|
$
|
13,269,792
|
$
|
11,991,956
|
|
October 31, 2019
|
April 30, 2019
|
|||||||
Estimated Life |
(unaudited) |
||||||||
Office equipment
|
3-5 Years
|
$
|
394,444
|
$
|
77,738
|
||||
Auto and trucks
|
2-10 Years
|
584,923
|
599,154
|
||||||
Manufacturing equipment
|
2-10 Years
|
6,295,577
|
5,353,752
|
||||||
Buildings
|
5-30 Years
|
9,177,135
|
8,082,483
|
||||||
Construction in process
|
|
34,460
|
2,001,045
|
||||||
|
|
16,486,539
|
16,114,172
|
||||||
Less: accumulated depreciation
|
|
(7,281,955
|
)
|
(7,120,775
|
)
|
||||
|
|
$
|
9,204,584
|
$
|
8,993,397
|
|
Shandong Shengwang Pharmaceutical
Co., Ltd.
|
Qufu
Shengwang
Import and Export Co., Ltd.
|
Mr. Wedong Chai
|
Total
|
||||||||||||
Balance due to related parties, April 30, 2019
|
$
|
5,669,776
|
$
|
557,976
|
$
|
180,769
|
$
|
6,408,521
|
||||||||
Working capital advances from related parties
|
3,262,486
|
549,300
|
1,727
|
3,813,512
|
||||||||||||
Repayments
|
(3,232,330
|
)
|
(534,491
|
)
|
(28,626
|
)
|
(3,795,447
|
)
|
||||||||
Effect of foreign currency exchange
|
(226,530
|
)
|
(20,940
|
)
|
(7,685
|
)
|
(255,155
|
)
|
||||||||
Balance due to related parties, October 31, 2019
|
$
|
5,473,401
|
$
|
551,845
|
$
|
146,185
|
$
|
6,171,431
|
Account
|
October 31,
2019
|
April 30,
2019
|
||||||
|
(unaudited)
|
|||||||
Accounts payable
|
$
|
6,365,175
|
$
|
5,298,580
|
||||
Advanced from customers
|
480,914
|
26,921
|
||||||
Accrued salary payable
|
237,353
|
284,671
|
||||||
Tax payable
|
226,380
|
125,854
|
||||||
Deferred revenue
|
13,086
|
13,683
|
||||||
Other payable*
|
2,072,184
|
1,803,972
|
||||||
Total accounts payable and accrued expenses
|
$
|
9,395,092
|
$
|
7,680,049
|
|
October 31,
2019
|
April 30,
2019
|
||||||
|
(unaudited)
|
|||||||
Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2020, with an annual interest rate of 10%, renewed at October 6, 2019.
|
$
|
31,244
|
$
|
32,671
|
||||
Loans from Jianjun Yan, non-related individual, due on October 6, 2020, with an annual interest rate of 10%, renewed at October 7, 2019 and accrued interest converted into debt principal of RMB849,500 ($123,434).
|
1,257,917
|
1,189,207
|
||||||
Loan from Jianjun Yan, non-related individual, due on March 31, 2020, with annual interest rate of 4%, renewed at April 1, 2019.
|
1,157,952
|
1,210,829
|
||||||
Loan from Junzhen Zhang, non-related individual, due on October 5, 2020, with an annual interest rate of 10%, renewed at October 6, 2019.
|
22,723
|
23,760
|
||||||
Loan from Jian Chen, non-related individual, due on January 27, 2020 and April 11, 2020, bearing an annual interest rate of 10%, with the principal amount of RMB770,000 ($114,347) and RMB330,000 ($49,006), renewed on January 27, 2019 and
April 11, 2019, respectively.
|
156,219
|
163,353
|
||||||
Loan from Qing Kong, non-related individual, due on March 6, 2020, with an annual interest rate of 10%, renewed on March 7, 2019.
|
75,610
|
79,063
|
||||||
Loan from Qing Kong, non-related individual, due on January 8, 2020, with an annual interest rate of 10%, renewed on January 9, 2019.
|
31,244
|
32,671
|
||||||
Loan from Guihai Chen, non-related individual, due on March 9, 2020, with an annual interest rate of 10%, renewed on March 10, 2019.
|
18,746
|
19,602
|
||||||
Loan from Guihai Chen, non-related individual, due on September 20, 2020, with an annual interest rate of 10%, renewed at September 21, 2019 and accrued interest converted into debt principal of RMB20,000 ($2,906).
|
31,244
|
29,700
|
||||||
Loan Weifeng Kong, non-related individual, due on November 28, 2019, with an annual interest rate of 10%, renewed on November 29, 2018. See Note 12
|
28,403
|
29,700
|
||||||
Loan Shidong Wang, non-related individual, due on March 8, 2020, with an annual interest rate of 4%, renewed on March 9, 2019.
|
1,536,057
|
1,606,200
|
||||||
Loan from Huagui Yong, non-related individual, due on April 8, 2020, with an annual interest rate of 6.3% at April 9, 2019.
|
71,009
|
74,251
|
||||||
Loan from Xuxu Gu, non-related individual, due on September 27, 2019, with an annual interest rate of 4% at September 28, 2017.
|
-
|
1,588,976
|
||||||
Loan Xuxu Gu, non-related individual, due on July 13, 2020, with an annual interest rate of 4% at July 14, 2018. *
|
411,850
|
-
|
||||||
Loan Yuehu Zhou, non-related individual, due on June 12, 2020, with an annual interest rate of 4% at June 13, 2018. *
|
1,278,155
|
-
|
||||||
Loan Mingbang Ma, non-related individual, due on May 22, 2020, with an annual interest rate of 4% at May 23, 2018. *
|
284,034
|
-
|
||||||
Loan Weiwei Lian, non-related individual, due on May 29, 2020, with an annual interest rate of 4% at May 30, 2018. *
|
1,420,172
|
-
|
||||||
Loan Guanghua Xia, non-related individual, due on June 8, 2020, with an annual interest rate of 4% at June 9, 2018. *
|
1,278,155
|
-
|
||||||
Loan Lufeng Li, non-related individual, due on October 20, 2020, with an annual interest rate of 4% at October 21, 2019.
|
426,052
|
-
|
||||||
Total
|
$
|
9,516,786
|
$
|
6,079,983
|
|
October 31,
2019
|
April 30,
2019
|
||||||
|
(unaudited)
|
|||||||
Loan from Xuxu Gu, non-related individual, due on March 8, 2019, with an annual interest rate of 4% at March 9, 2017, extended another two years on March 9, 2019.
|
$
|
-
|
$
|
1,603,825
|
||||
Loan Xuxu Gu, non-related individual, due on July 13, 2020, with an annual interest rate of 4% at July 14, 2018. #
|
-
|
430,657
|
||||||
Loan Xuxu Gu, non-related individual, due on August 15, 2020, with an annual interest rate of 4% at August 16, 2018.
|
-
|
504,908
|
||||||
Loan from Dadong Mei, non-related individual, due on March 8, 2021, with an annual interest rate of 4%, renewed on March 9, 2019.
|
1,533,786
|
1,603,825
|
||||||
Loan Mingbang Ma, non-related individual, due on May 22, 2020, with an annual interest rate of 4% at May 23, 2018. #
|
-
|
297,005
|
||||||
Loan Weiwei Lian, non-related individual, due on May 29, 2020, with an annual interest rate of 4% at May 30, 2018. #
|
-
|
1,485,024
|
||||||
Loan Guanghua Xia, non-related individual, due on June 8, 2020, with an annual interest rate of 4% at June 9, 2018. #
|
-
|
1,336,521
|
||||||
Loan Guanghua Xia, non-related individual, due on December 31, 2020, with an annual interest rate of 4% at January 1, 2019.
|
397,648
|
415,807
|
||||||
Loan Guanghua Xia, non-related individual, due on January 10, 2021, with an annual interest rate of 4% at January 11, 2019.
|
795,296
|
831,613
|
||||||
Loan Yuehu Zhou, non-related individual, due on June 12, 2020, with an annual interest rate of 4% at June 13, 2018. #
|
-
|
1,336,521
|
||||||
Total:
|
$
|
2,726,730
|
$
|
9,845,706
|
|
Three Months Ended October 31,
|
Six Months Ended October 31,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Revenues:
|
||||||||||||||||
Stevioside - third parties
|
$
|
4,768,613
|
3,501,778
|
9,296,279
|
6,309,129
|
|||||||||||
Stevioside - related parties
|
2,314,666
|
715,157
|
4,098,559
|
2,113,737
|
||||||||||||
Total Stevioside
|
7,083,279
|
4,215,935
|
13,394,838
|
8,422,866
|
||||||||||||
|
||||||||||||||||
Corporate and other – third party
|
78,302
|
669,765
|
656,818
|
1,459,994
|
||||||||||||
Corporate and other – related party
|
-
|
-
|
-
|
-
|
||||||||||||
Total Corporate and other
|
78,302
|
669,765
|
656,818
|
1,459,994
|
||||||||||||
Total segment and consolidated revenues
|
$
|
7,161,581
|
4,885,700
|
14,051,656
|
9,882,860
|
|
Three Months Ended October 31,
|
Six Months Ended October 31,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Interest (expense) income:
|
||||||||||||||||
Stevioside
|
$
|
(120,734
|
)
|
$
|
(197,501
|
)
|
$
|
(301,178
|
)
|
$
|
(382,485
|
)
|
||||
Corporate and other
|
-
|
-
|
-
|
-
|
||||||||||||
Total segment and consolidated interest expense
|
$
|
(120,734
|
)
|
$
|
(197,501
|
)
|
$
|
(301,178
|
)
|
$
|
(382,485
|
)
|
||||
Depreciation and amortization:
|
||||||||||||||||
Stevioside
|
$
|
253,500
|
$
|
263,978
|
$
|
487,523
|
$
|
533,974
|
||||||||
Corporate and other
|
43,857
|
-
|
80,822
|
-
|
||||||||||||
Total segment and consolidated depreciation and amortization
|
$
|
297,357
|
$
|
263,978
|
$
|
568,345
|
$
|
533,974
|
||||||||
Income (loss) before income taxes:
|
||||||||||||||||
Stevioside
|
$
|
203,668
|
$
|
(809,110
|
)
|
$
|
38,596
|
$
|
(1,502,014
|
)
|
||||||
Corporate and other
|
(11,777
|
)
|
(267,221
|
)
|
23,491
|
(676,859
|
)
|
|||||||||
Total consolidated loss before income taxes
|
$
|
191,891
|
$
|
(1,076,331
|
)
|
$
|
62,087
|
$
|
(2,178,873
|
)
|
|
October 31,
2019 |
April 30,
2019 |
||||||
Segment property and equipment:
|
||||||||
Stevioside
|
$
|
7,260,465
|
$
|
7,796,314
|
||||
Corporate and other
|
1,944,119
|
1,197,083
|
||||||
Total property and equipment
|
$
|
9,204,584
|
$
|
8,993,397
|
|
For the three months ended October 31,
|
For the six months ended October 31,
|
||||||||||||||
Customer
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
A (1)
|
32.3
|
%
|
14.6
|
%
|
29.2
|
%
|
21.4
|
%
|
||||||||
B
|
*
|
*
|
10.9
|
%
|
*
|
|||||||||||
|
For the three months ended October 31,
|
For the six months ended October 31,
|
||||||||||||||
Supplier
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
A
|
29.1
|
%
|
*
|
23.9
|
%
|
17.7
|
%
|
|||||||||
B
|
16.3
|
%
|
*
|
17.4
|
%
|
*
|
||||||||||
C
|
25.9
|
%
|
*
|
13.7
|
%
|
-
|
||||||||||
D
|
11.7
|
%
|
35.7
|
%
|
11.3
|
%
|
27.7
|
%
|
Country:
|
October 31, 2019
|
April 30, 2019
|
||||||||||||||
United States
|
$
|
151,276
|
48.7
|
%
|
$
|
88,506
|
30.1
|
%
|
||||||||
China
|
159,554
|
51.3
|
%
|
205,693
|
69.9
|
%
|
||||||||||
Total cash and cash equivalents
|
$
|
310,830
|
100.00
|
%
|
$
|
294,199
|
100.00
|
%
|
|
-
|
|
Stevioside, and
|
|
-
|
|
Corporate and other.
|
|
-
|
|
Chinese domestic food and beverages, particularly herbal tea manufacturers and the pharmaceutical industry, have increased the use of steviosides, and new health awareness trends have also resulted in some new governing laws supporting the
growth of this industry;
|
|
-
|
|
Southeast and South Asia have renewed and increased their interest in stevia, particularly high grade stevia;
|
|
-
|
|
Comparing 2018 to 2011, the usages of stevia in food products shows a 25.6% growth, and in beverage products shows a 34.6% growth; and
|
|
-
|
|
Stevia has been growing in popularity in the last 10 years throughout all the global markets.
|
For the Three Months ended October 31, 2019
|
||||||||||||||||||||||||
|
Stevioside
|
Corporate and Other
|
Consolidated
|
|||||||||||||||||||||
Revenues
|
$
|
7,083,279
|
100.0
|
%
|
$
|
78,302
|
100.0
|
%
|
$
|
7,161,581
|
100.0
|
%
|
||||||||||||
Cost of goods sold
|
5,648,003
|
79.7
|
%
|
39,139
|
50.0
|
%
|
5,687,142
|
79.4
|
%
|
|||||||||||||||
Gross profit
|
1,435,276
|
20.3
|
%
|
39,163
|
50.0
|
%
|
1,474,439
|
20.6
|
%
|
|||||||||||||||
Selling expenses
|
502,773
|
7.1
|
%
|
-
|
-
|
502,773
|
7.0
|
%
|
||||||||||||||||
General and administrative expenses
|
273,733
|
3.9
|
%
|
8,000
|
10.2
|
%
|
281,733
|
3.9
|
%
|
|||||||||||||||
Research and development expenses
|
339,401
|
4.8
|
%
|
-
|
-
|
339,401
|
4.7
|
%
|
||||||||||||||||
Income from operations
|
319,369
|
5.5
|
%
|
31,163
|
39.8
|
%
|
350,532
|
4.9
|
%
|
|||||||||||||||
Other expenses
|
(115,701
|
)
|
(1.6
|
)%
|
(42,940
|
)
|
(54.8
|
)%
|
(158,641
|
)
|
(2.2
|
)%
|
||||||||||||
Income (loss) from continuing operation before income taxes
|
$
|
203,668
|
2.9
|
%
|
$
|
(11,777
|
)
|
(15.0
|
)%
|
$
|
191,891
|
2.7
|
%
|
For the Three Months ended October 31, 2018
|
||||||||||||||||||||||||
|
Stevioside
|
Corporate and Other
|
Consolidated
|
|||||||||||||||||||||
Revenues
|
$
|
4,215,935
|
100.0
|
%
|
$
|
669,765
|
100.0
|
%
|
$
|
4,885,700
|
100.0
|
%
|
||||||||||||
Cost of goods sold
|
3,985,882
|
94.5
|
%
|
520,504
|
77.7
|
%
|
4,506,386
|
92.2
|
%
|
|||||||||||||||
Gross profit
|
230,053
|
5.5
|
%
|
149,261
|
22.3
|
%
|
379,314
|
7.8
|
%
|
|||||||||||||||
Selling expenses
|
382,311
|
9.1
|
%
|
65,481
|
9.8
|
%
|
447,792
|
9.2
|
%
|
|||||||||||||||
General and administrative expenses
|
315,046
|
7.5
|
%
|
331,528
|
49.5
|
%
|
646,574
|
13.2
|
%
|
|||||||||||||||
Research and development expenses
|
130,418
|
3.1
|
%
|
19,473
|
2.9
|
%
|
149,891
|
3.1
|
%
|
|||||||||||||||
Loss from operations
|
(597,725
|
)
|
(14.2
|
)%
|
(267,221
|
)
|
(39.9
|
)%
|
(864,943
|
)
|
(17.7
|
)%
|
||||||||||||
Other expenses
|
(211,385
|
)
|
(5.0
|
)%
|
-
|
-
|
(211,388
|
)
|
(4.3
|
)%
|
||||||||||||||
Loss from continuing operation before income taxes
|
$
|
(809,110
|
)
|
(19.2
|
)%
|
$
|
(267,221
|
)
|
(39.9
|
)%
|
$
|
(1,076,331
|
)
|
(22.0
|
)%
|
For the Six Months ended October 31, 2019
|
||||||||||||||||||||||||
|
Stevioside
|
Corporate and Other
|
Consolidated
|
|||||||||||||||||||||
Revenues
|
$
|
13,394,838
|
100.0
|
%
|
$
|
656,818
|
100.0
|
%
|
$
|
14,051,656
|
100.0
|
%
|
||||||||||||
Cost of goods sold
|
11,038,469
|
82.4
|
%
|
417,541
|
63.6
|
%
|
11,456,010
|
81.5
|
%
|
|||||||||||||||
Gross profit
|
2,356,369
|
17.6
|
%
|
239,277
|
36.4
|
%
|
2,595,646
|
18.5
|
%
|
|||||||||||||||
Selling expenses
|
855,157
|
6.4
|
%
|
22,048
|
3.4
|
%
|
877,205
|
6.2
|
%
|
|||||||||||||||
General and administrative expenses
|
534,945
|
4.0
|
%
|
149,150
|
22.7
|
%
|
684,095
|
4.6
|
%
|
|||||||||||||||
Research and development expenses
|
644,304
|
4.8
|
%
|
1,648
|
0.3
|
%
|
645,952
|
4.6
|
%
|
|||||||||||||||
Income from operations
|
321,963
|
2.4
|
%
|
66,431
|
10.1
|
%
|
388,394
|
2.8
|
%
|
|||||||||||||||
Other expenses
|
(283,367
|
)
|
(2.1
|
)%
|
(42,940
|
)
|
(6.5
|
)%
|
(326,307
|
)
|
(2.3
|
)%
|
||||||||||||
Income from continuing operation before income taxes
|
$
|
38,596
|
0.3
|
%
|
$
|
23,491
|
10.1
|
%
|
$
|
62,087
|
0.4
|
%
|
For the Six Months ended October 31, 2018
|
||||||||||||||||||||||||
|
Stevioside
|
Corporate and Other
|
Consolidated
|
|||||||||||||||||||||
Revenues
|
$
|
8,422,865
|
100.0
|
%
|
$
|
1,459,995
|
100.0
|
%
|
$
|
9,882,860
|
100.0
|
%
|
||||||||||||
Cost of goods sold
|
7,684,035
|
91.2
|
%
|
1,255,060
|
86.0
|
%
|
8,939,095
|
90.5
|
%
|
|||||||||||||||
Gross profit
|
738,830
|
8.8
|
%
|
204,935
|
14.0
|
%
|
943,765
|
9.5
|
%
|
|||||||||||||||
Selling expenses
|
813,104
|
9.7
|
%
|
122,343
|
8.4
|
%
|
935,447
|
9.5
|
%
|
|||||||||||||||
General and administrative expenses
|
691,024
|
8.2
|
%
|
717,382
|
49.1
|
%
|
1,408,406
|
14.3
|
%
|
|||||||||||||||
Research and development expenses
|
339,588
|
4.0
|
%
|
42,069
|
2.9
|
%
|
381,657
|
3.9
|
%
|
|||||||||||||||
Loss from operations
|
(1,104,884
|
)
|
(13.1
|
)%
|
(676,861
|
)
|
(46.4
|
)%
|
(1,781,745
|
)
|
(18.0
|
)%
|
||||||||||||
Other expenses
|
(397,128
|
)
|
(4.7
|
)%
|
-
|
-
|
(397,128
|
)
|
(4.0
|
)%
|
||||||||||||||
Loss from continuing operation before income taxes
|
$
|
(1,502,102
|
)
|
(17.8
|
)%
|
$
|
(676,861
|
)
|
(46.4
|
)%
|
$
|
(2,178,873
|
)
|
(22.0
|
)%
|
|
Three Months Ended October 31,
|
Six Months Ended October 31,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Revenues
|
$
|
-
|
$
|
475,908
|
$
|
733,441
|
$
|
1,312,074
|
||||||||
Cost of revenues
|
-
|
347,370
|
572,357
|
1,079,367
|
||||||||||||
Gross profit
|
-
|
128,538
|
161,084
|
232,707
|
||||||||||||
Operating expenses
|
-
|
159,227
|
172,142
|
351,711
|
||||||||||||
Other income, net
|
-
|
1,677
|
8,958
|
2,197
|
||||||||||||
Loss before income taxes
|
-
|
29,012
|
20,016
|
116,807
|
||||||||||||
Income tax expense
|
-
|
-
|
-
|
-
|
||||||||||||
Loss from discontinued operations
|
-
|
29,012
|
20,016
|
116,807
|
||||||||||||
Loss from disposal, net of taxes
|
-
|
-
|
960
|
|
-
|
|||||||||||
Loss on sales of subsidiary
|
- |
- |
232,455 |
|
- |
|||||||||||
Total loss from discontinued operations
|
$
|
-
|
$
|
29,012
|
$
|
253,431
|
$
|
116,807
|
Country:
|
October 31, 2019
|
April 30, 2019
|
||||||||||||||
United States
|
$
|
151,276
|
48.7
|
%
|
$
|
88,506
|
30.1
|
%
|
||||||||
China
|
159,554
|
51.3
|
%
|
205,693
|
69.9
|
%
|
||||||||||
Total cash and cash equivalents
|
$
|
310,830
|
100.00
|
%
|
$
|
294,199
|
100.00
|
%
|
|
-
|
|
Any obligation under certain guarantee contracts,
|
|
-
|
|
Any retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets,
|
|
-
|
|
Any obligation under a contract that would be accounted for as a derivative instrument, except that it is both indexed to our stock and classified in stockholder's equity in our statement of financial position,
and
|
|
-
|
|
Any obligation arising out of a material variable interest held by us in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or engages in leasing, hedging or
research and development services with us.
|
Exhibit No.
|
|
Description of Exhibit
|
|
|
31.1
|
|
Section 302 Certificate of Chief Executive Officer.*
|
|
31.2
|
|
Section 302 Certificate of Chief Financial Officer.*
|
|
32.1
|
|
Section 906 Certificate of Chief Executive Officer and Chief Financial Officer.*
|
101.INS
|
|
XBRL INSTANCE DOCUMENT**
|
|
101.SCH
|
|
XBRL TAXONOMY EXTENSION SCHEMA**
|
|
101.CAL
|
|
XBRL TAXONOMY EXTENSION CALCULATION LINKBASE**
|
|
101.DEF
|
|
XBRL TAXONOMY EXTENSION DEFINITION LINKBASE**
|
|
101.LAB
|
|
XBRL TAXONOMY EXTENSION LABEL LINKBASE**
|
|
101.PRE
|
|
XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE**
|
|
SUNWIN STEVIA INTERNATIONAL, INC.
|
|
|
|
|
Dated: December 16, 2019
|
By: /s/ Dongdong Lin
|
|
Dongdong Lin,
|
|
Chief Executive Officer
|
|
|
|
|
Dated: December 16, 2019
|
By: /s/ Fanjun Wu
|
|
Fanjun Wu,
|
|
Chief Financial Officer
|