Nutrastar International, Inc. Announces Full Year 2014 Results

Harbin, China, March 30, 2015 -- Nutrastar International Inc. (OTCQB: 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 full year ended December 31, 2014.

Financial Highlights for the Full Year Ended December 31, 2014

• Net revenue was $43.33 million, as compared to $43.35 million in full year 2013.
• Gross profit was $34.01 million, representing a gross margin of 78.5%.
• Net income was $22.72 million, representing a net margin of 52.4%.
• Basic and diluted EPS were $1.34 and $1.28, respectively, with 16.83 million basic shares and 17.70 million diluted shares outstanding.

Management Commentary

Ms. Lianyun Han, CEO of Nutrastar, commented, “Over the past few years, we have worked hard at expanding product offerings, increasing revenue and creating opportunities through product development and capacity expansion. Although revenue for 2014 came in slightly under our estimates, it was a successful year nonetheless marked by the expansion and realignment of our product offerings in order to better position ourselves to meet current and future market demand. For the full year 2014, we operated at full production capacity and with the benefit of these economies of scale, our gross margins improved to 78.5%, up from 77.8% in the prior year. We also experienced a sales increase of approximately 10% or $3.36 million in our core premium consumer product Cordyceps, which includes sales of our new soluble, on-the-go Cordyceps powder solution. As expected, due to the strategic product realignment implemented in early 2014, sales growth of our core Cordyceps product segment was partially offset by $3.47 million decrease in sales of our beverages product line, resulting in year-over-year flat revenue growth.”

Ms. Han continued, “Currently, we expect to continue operating at full production capacity and thus anticipate minimum year-over-year revenue growth in the current year. Since demand for our premium Cordyceps Militaris consumer products remains robust in our current markets, we will begin to evaluate avenues for future capacity expansion this year.

One of our 2015 priorities will be exploring opportunities and securing the export of our products to markets abroad. Since receiving initial export approval from China’s Ministry of Commerce as Foreign Trade Operator, we have been conducting and prototyping new product formats for select international markets such as South Korea and Hong Kong. We plan to evaluate and test our on-the-go soluble Cordyceps powder solution to determine its potential receptivity and viability in the U.S. market, and explore strategic packaging and distribution partners that will be integral to our international exportation approval and expansion efforts. It is our current intention to complete market testing, secure packaging and international distribution partners in 2015 and begin generating international sales revenue in 2016. We believe the international path is a vital part of the Company’s future growth plan and we are committed to ensuring it happens as soon as possible beginning with our powder solution. We will keep the public apprised as initiatives progress.

In closing, we believe 2015, despite our flat revenue growth expectations, will be a significant year that sets the stage for increased and sustained growth for the Company going forward. On behalf of the entire Nutrastar team, we would like to thank our shareholders and supporters for their continued patience and support for our Company and belief in our unique value proposition within the growing consumer product market. We look forward to sharing in our successes moving forward.”

Outlook for the Year Ending December 31, 2015

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

Request for Call with Management

Investors are invited to request a call with Nutrastar’s management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule.

For more information regarding Nutrastar’s financial performance during the full year ended December 31, 2014, please refer to the Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on or about March 30, 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 at http://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:

Richard Hull
American Capital Ventures
Tel: +1-305-918-7000
Email: rh@amcapventures.com

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