3SOF

Technically speaking it is a bullish engulfing.

the bounce back up on the RSI on the 2 yr. weekly chart tells me this is going to be a sustained bullish move up.

i got in at the break of $0.65 and am continuing to hold for a bigger move...kinda like XSNX...

good luck. 

strong up move today on very good volume.

testing recent highs of $0.97, break of that will take this to better levels above $1.00 - kinda like XSNX in my opinion.

MACD and RSI indicate lots of room to run still.

Quote from: setravis on December 07, 2005, 09:08:54 PM

Quote from: gmarc66 on November 30, 2005, 08:28:33 AM
This news yesterday caused a stir up just over 19% on great volume.
Also,....an Elite g pick

How much better can you get? "An EliteG Pick" 
I got me some! 
How did EliteG put it,I think it went like this...."It Has Blast Off Capability"

Words of EliteG, below......
i really like this chart.. think it does have blast off capability and then I did some research on the company and the news.. think this is one of the best pennies out there .

Go check it out on his thread here....
http://www.3stocksonfire.org/trading/index.php?topic=3837.60

He also holds this in his portfolio, check it out here......
http://www.3stocksonfire.org/trading/index.php?topic=3836.30

Let's not forget this baby!!
I'm with you here......

Volume: 2,980,584
Avg Vol (3m): 2,049,060

too late for investing in SUWN?

SUWN: New 52-Wk High @ $1.245 up 15.81%
Friday , February 24, 2006 14:55 ET

This is the 1st 52 WEEK HIGH alert for SUWN in the past 7 calendar days.

The share price for Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN) reached a new 52-week high today, trading at $1.245, up $0.170 (15.81%) from its previous close of $1.075.

The Company's previous 52-week high of $1.240 was set 2 days ago on February 22, 2006.

One year ago, the Company's shares closed at $0.150. The price has climbed more than 730 percent since then.

At the time of this alert, the stock had traded 2,124,100 shares via 233 trades, 20.24% below it's 20day average of 2,663,210 shares.

This new 52-week high currently puts the stock:

66.74% above its 20day Moving Average of $0.747
170.29% above its 50day Moving Average of $0.461
282.11% above its 100day Moving Average of $0.326

Man, every time I see a post on SUWN or see that the stock is up AGAIN, I start reaching for a phone to call a therapist.    I can't believe I sold this thing at .225 when I had already thought of Sunwin as the next AOB only better with their better diversification and the Stevia possibilities.  Have to learn a lesson from this one.   Hope you got some of this, Oliver!

Bas - I thought I was a genius for selling 60% of my shares the day it made the .97 high. I looked pretty smart for a while when it retraced to the .50's, but don't look so smart for selling the last 40% on the bounce at .64. I think it's way too extended to hold these gains though. I haven't seen many OTC stocks in my day go from .20 to over 1.30+ and hold the gain long-term. I think six months from now the SUWN chart will look a lot like BRVO's does today.

In this investment report, issued in November when the stock was at .22, the 12-month price target was .52.

http://www.sunwin.biz/temp/SUWN.OB_%20Report_NOV_121.pdf

I think SUWN's gotten a little ahead of itself. I may be eating those words in a month, we'll see.

Wow.....

There have been some awesome penny picks lately

dang...i rode this from $0.65 and sold sometime back at $1.03, never looked back though...

i got back in today at break of $1.30

forgot the chart...here it is....closed near the 9 MA and looking good to break into higher territory...of course, gotta break earlier high of $1.51 first. 

good luck to those in this one. 

to use a term i've seen around 'weeeeeeeeeeee'  sure has been a fun ride. I'm not on it right now, but we'll see.

Sunwin International Neutraceuticals, Inc. (OTCBB:SUWN) traded as much as 8.21% over open on Thursday.

Sunwin International Neutraceuticals, Inc. ("Sunwin") (OTC BB: SUWN) is engaged in the areas of essential traditional Chinese medicine, 100% organic herbal medicine, neutraceutical products, natural sweetener (Stevioside), and animal medicine prepared from 100% organic herbal ingredients. As an industry leader in agricultural processing, Sunwin has built an integrated global firm with the sourcing and production capabilities to meet the needs of consumers throughout the world. Sunwin also makes such value-added products as specialty veterinary food ingredients and specialty feed ingredients. The Sunwin family works closely with consumer to provide a quality, value, and a hybrid mix of agricultural products and services that meet growing demand. In 2002, Sunwin was recognized as one of the first 2,000 state-level companies that China authorized as the most important innovative high-tech pioneer businesses by the Chinese central government. In 2002, Sunwin was awarded as one of 2002 state-level biological product manufacturers in China. In 2003, Sunwin ranked as one of the top 50 companies of China Animal Related Health Care Product Pharmaceutical Industry. In 2003, Sunwin received award of Shandong Top-Ten Innovative, High-Tech Businesses by the Province Government of Shandong. For more info about Sunwin, please visit http://www.sunwin.biz

I have asked myself at 0.8 and 1.24 $ if I should buy SUWN 
now we are @ 1.5 $ price level 

next pullback I will start to accumulate

cheers
Oliver

Form 10-K:
Form 10QSB for SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC.

16-Mar-2006

Quarterly Report


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following analysis of our consolidated financial condition and results of operations for the nine months ended January 31, 2006 and 2005, should be read in conjunction with the consolidated financial statements, including footnotes, and other information presented in our annual report of Form 10-KSB as filed with the Securities and Exchange Commission.

Overview

Effective February 1, 2004, Sunwin Tech Group, Inc. entered into a stock purchase agreement with Shandong Shengwang Pharmaceutical Corporation, Limited, a 90% shareholder of Qufu. Under this agreement, Sunwin Tech acquired 80% of the capital stock of Qufu in exchange for 100% of its capital stock which had a fair market value of $95,000. In April 2004, we acquired 100% of Sunwin Tech in exchange for approximately 17,000,004 shares of our common stock which resulted in a change of control of our company. The transaction has been accounted for as a reverse acquisition under the purchase method for business combinations. The combination of the two companies is recorded as a recapitalization of Qufu and we are treated as the continuing entity.

Though our subsidiaries, we manufacture and sell neutraceutical products which can be classified into three main product groups; (1) stevioside
- a 100% natural sweetener, (2) veterinary medicines and animal feed additives, and (3) traditional Chinese medicine formula extracts. All of our business and operations are located in the People's Republic of China.

We manufacture and sell stevioside, a 100% natural sweetener which is extracted from the leaves of the Stevia rebaudiana plant, a green herb plant of the Aster/Chrysanthemum family. We also purchase and resell finished stevioside product from third party manufacturers. Principal customers for this product are located in China and Japan where it is approved for use both as a food additive as well as a nutritional supplement. This product group represented approximately 46% of our total revenues for fiscal 2005 and 40% for the nine months ended January 31, 2006. China has grown into the world's largest exporter of stevioside, with volume exceeding 80% of the world's supply. We believe that we are one of the top three companies in China manufacturing stevioside.

We also manufacture and sell a comprehensive group of veterinary medicines including seven series of more than 200 products. These veterinary medicines include both traditional Chinese medicine and Western medicine, feed additives, feeds and disinfectors.

We are a leading advocator of preparing animal medicine from Chinese herbs, especially antivirus and feed additives. We are concentrating our efforts in this product category on developing and producing medicines which are relevant to the needs of the animal stock industry in the PRC, and developing special veterinary medicines made from pure traditional Chinese medicines or combining traditional Chinese medicine with Western medicine. This product group represented approximately 28% of our total revenues for fiscal 2005 and 30% for the nine months ended January 31, 2006. Our last product group includes the manufacture and sale of traditional Chinese medicines formula extracts that are used in products made for use by both humans and animals. This product group represented approximately 26% of our total revenues for fiscal 2005 and 30% for the nine months ended January 31, 2006.

-17-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

Our ability to significantly increase our revenues in any of these groups faces a number of challenges. In addition to the existing laws which limit the sale of stevioside to Western countries, the other two product groups operate in highly competitive environments. We estimate that there are more than 2,700 companies in China selling animal medicines and more than 200 companies in China that produce Chinese traditional medicines and extracts and refined chemical products. Our sale of products in these two product groups are concentrated on domestic customers therefore our ability to expand our revenues in these product groups is limited to a certain extent by economic conditions in the PRC. In addition, because we are dependent upon raw materials which are farmed, our ability to produce our products and compete in our markets is also subject to risks including weather and similar events which may reduce the amount of raw materials we are able to purchase from farmers as well as increased competition or market pressure which may result in reduced prices for our products. Our ability, however, to expand our revenues from the sale of stevioside is limited as the product is not approved for use as a food additive in most Western countries, including the United States, Canada and the European Union. In an effort to increase our competitive position within our market segment, we have built an additional stevioside manufacturing line in order to expand our stevioside production, upgraded our exiting manufacturing stevioside line, and relocated to a larger facility which became fully operational in November 2005 after experiencing delays associated with retooling, the installation of additional equipment, and final inspection delays. In addition, during fiscal year 2005 and the first two quarters of fiscal year 2006 we have been involved in reconstructing an additional veterinary production line into a new building which was put into full production in December 2005.

Through January 31, 2006, we have advanced and invested an aggregate of approximately $680,000 to be used for leasehold improvements and equipment towards the additional veterinary medicine manufacturing line and $1,550,000 towards the stevioside facility.

Even though we are a U.S. company, because all of our operations are located in the PRC, we face certain risks associated with doing business in that country. These risks include risks associated with the ongoing transition from state business ownership to privatization, operating in a cash-based economy, dealing with inconsistent government policies, unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing operations in a communist country, differences in technology standards, employment laws and business practices, longer payment cycles and problems in collecting accounts receivable, changes in currency exchange rates and currency exchange controls. We are unable to control the vast majority of these risks associated both with our operations and the country in which they are located and these risks could result in significant declines in our revenues and adversely effect our ability to continue as a going concern.

-18-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

Foreign Exchange Considerations

Because revenues from our operations in the PRC accounted for 100% of our consolidated net revenues for fiscal 2005 and fiscal 2004, how we report net revenues from our PRC-based operations is of particular importance to understanding our financial statements. Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with Statement of Financial Accounting Standards (SFAS) No. 52, "Foreign Currency Translation," and are included in determining net income or loss. For foreign operations with the local currency as the functional currency, assets and liabilities are translated from the local currencies into U.S. dollars at the exchange rate prevailing at the respective balance sheet date. Revenues and expenses are translated at weighted average exchange rates for the period to approximate translation at the exchange rates prevailing at the dates those elements are recognized in the financial statements. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss.

The functional currency of our Chinese subsidiaries is the Chinese RMB, the local currency. The financial statements of the subsidiaries are translated to U.S. dollars using year-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations and were not material during the periods presented. The cumulative translation adjustment and effect of exchange rate changes on cash at January 31, 2006 was approximately $36,500. Until 1994, the RMB experienced a gradual but significant devaluation against most major currencies, including U.S. dollars, and there was a significant devaluation of the RMB on January 1, 1994 in connection with the replacement of the dual exchange rate system with a unified managed floating rate foreign exchange system. Since 1994, the value of the RMB relative to the U.S. Dollar has remained stable and has appreciated slightly against the U.S. dollar. Countries, including the United States, have argued that the RMB is artificially undervalued due to China's current monetary policies and have pressured China to allow the RMB to float freely in world markets. On July 21, 2005, the PRC reported that it would have its currency pegged to a basket of currencies rather than just tied to a fixed exchange rate to the dollar. It also increased the value of its currency 2% higher against the dollar, effective immediately.

If any devaluation of the RMB were to occur in the future, returns on our operations in China, which are expected to be in the form of RMB, will be negatively affected upon conversion to U.S. dollars. Although we attempt to have most future payments, mainly repayments of loans and capital contributions, denominated in U.S. dollars, if any increase in the value of the RMB were to occur in the future, our product sales in China and in other countries may be negatively affected.

-19-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

A summary of significant accounting policies is included in Note 1 to the audited consolidated financial statements on Form 10-KSB as filed with the Securities and Exchange Commission. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable financial information about the company's operating results and financial condition.

We record property and equipment at cost. Depreciation is provided using the straight-line method over the estimated economic lives of the assets, which are from five to twenty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. We review the carrying value of long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value.

We account for stock options issued to employees in accordance with the provisions of Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations. As such, compensation cost is measured on the date of grant as the excess of the current market price of the underlying stock over the exercise price. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. We adopted the disclosure provisions of SFAS No. 123, "Accounting for Stock-Based Compensation" and SFAS 148, "Accounting for Stock-Based Compensation -Transition and Disclosure", which permits entities to provide pro forma net income (loss) and pro forma earnings (loss) per share disclosures for employee stock option grants as if the fair-valued based method defined in SFAS No. 123 had been applied. We account for stock options and stock issued to non-employees for goods or services in accordance with the fair value method of SFAS 123.

-20-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

RESULTS OF OPERATIONS

NINE MONTHS ENDED JANUARY 31, 2006 AS COMPARED TO NINE MONTHS ENDED
JANUARY 31, 2005

Revenues

For the nine months ended January 31, 2006, our revenues were $11,065,853 as compared to $9,163,681 for the nine months ended January 31, 2005, an increase of $1,902,172 or approximately 21%. We attribute this increase in net revenues to an increase in revenues from the manufacture and sale of our traditional Chinese and animal medicine products of approximately $1,914,855 offset by a decrease in the sale of our natural sweetener, stevioside, of $12,683 as discussed below:

o The decrease in the sale of our natural sweetener, stevioside, was caused by the upgrade of our manufacturing equipment and relocation of our stevioside manufacturing facility, which has disrupted our revenue flows. We started to use this new manufacturing line in September 2005. However, due to delays associated with retooling, the installation of additional equipment and inspection delays, we became fully operational in November 2005. Our revenues decreased from $4,455,745 for the nine months ended January 31, 2005 to $4,443,062 for the nine months ended January 31, 2006, a less than 1% decrease. Until such time as the facility became fully operational, in the event we receive orders for Stevioside in excess of our manufacturing capacity, we purchased from other manufacturers and resold these goods to our customers to fill orders. We anticipate manufacturing 200 tons of stevioside and to resell 80 tons during fiscal year 2006. We believe that the market for stevioside remains strong as we see exports to Japan increasing.

o We experienced an increase in the revenues related to our traditional Chinese medicine products. Our revenues increased from $2,457,241 for the nine months ended January 31, 2005 to $3,348,114 for the nine months ended January 31, 2006, a 36.3% increase. Our gross profit rate has grown from 37.5% to 42% on this product due to the introduction of new products, and improved sales skills. Additionally, the Chinese central government issued a new rule for the Chinese Medicine industry stipulating that all manufactures should satisfy GMP standards in their production process by October 1, 2005. We believe that our facility is the first facility to complete this requirement in China which will help us maintain the reputation in this field and acquire bigger market share. Next year, we will be adding new products into the market and plan to start a new products series, natural dietary health food.

-21-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

o Revenues from our veterinary medicine grew 45% this period to $3,274,677 for the nine months ended January 31, 2006 as compared to $2,250,695 for the nine months ended January 31, 2005. However, in past nine months, our gross profit margins were at 33.2%, a decrease of 1.2% from the previous comparable period due to increased raw material costs. We believe that we will achieve major growth in veterinary medicine. The veterinary industry is regulated by the Chinese Central Government which recently issued a new regulation stipulating that all veterinary manufacturers should conform to the GMP production process standard by October 1, 2005. Among over 2,700 manufacturers in China, we estimate that only approximately 800 could accomplish this requirement on time. A significant market vacancy will be left by the companies that do not conform and pass the standard. We expect to complete construction and finish the inspection process on time. We expect to have eight production lines. We expect to obtain a greater market share in the fiscal year of 2006.

Cost of Sales and Gross Profit

For the nine months ended January 31, 2006, cost of sales amounted to $7,555,073 or 68.3% of net revenues as compared to cost of sales of $6,276,338 or 68.5% of net revenues for the nine months ended January 31, 2005, a percentage decrease of 0.2%. Gross profit for the nine months ended January 31, 2006 was $3,510,780 or 31.7% of revenues, as compared to $2,887,343, or 31.5% of revenues for the nine months ended January 31, 2005.

Operating Expenses

For the nine months ended January 31, 2006, total operating expenses were $1,542,858 as compared to $1,956,366 for the nine months ended January 31, 2005, a decrease of $413,508 or 21%.

Included in this decrease were:

* For the nine months ended January 31, 2006, we recorded income from the recovery of bad debt of $867,323 due to the collection of accounts receivable previously written off.

-22-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

* For the nine months ended January 31, 2005, we recorded consulting and stock-based consulting expense of $220,000 as compared to $278,517 for the nine months ended January 31, 2006, a decrease of $58,517 or 26%. This amount represented the value of shares of our common stock we issued or are issuable as compensation for consulting services being rendered to us. While we anticipate that we will enter into similar agreements during fiscal 2006, we cannot predict the amount of expense which will be attributable to such agreements. In July 2005, we entered into a one-year agreement with China Direct Investments, Inc. to provide business development and management services, effective May 1, 2005. In connection with this agreement, we were to issue 665,000 shares of our common stock payable on a quarterly basis on August 31, 2005, November 30, 2005, February 28, 2006 and May 1, 2006 for a total of 2,660,000. In November 2005, we issued 1,330,000 shares of common stock due under this consulting agreement. In January 2006, we issued the remaining 1,330,000 shares due under this contract and entered into a new consulting agreement with China Direct Investments, Inc. In connection with the issuance of 2,660,000 common shares under the original consulting agreement, the Company recorded stock-based consulting expense of $235,058 and deferred consulting expense of $203,933 to be amortized over the new contract term of 36-months. Effective January 1, 2006, we entered into a three-year agreement with China Direct Investments, Inc. to provide business development and management services. In connection with this new agreement, we issued 2,430,000 shares of common stock. We valued these services using the fair value of common shares on grant date at approximately $.23 per share and recorded deferred consulting expense of $558,900 to be amortized over the service period. For the nine months ended January 31, 2006, amortization of deferred consulting expense amounted to $21,190. The issuance of these shares will continue to increase stock-based consulting fees;

* For the nine months ended January 31, 2006, selling expenses amounted to $1,371,548 as compared to $987,267 for the nine months ended January 31, 2005, an increase of $384,281 or 39%. For the nine months ended January 31, 2006, we experienced an increase in commission expenses of approximately $173,600, increased travel and entertainment costs of approximately $102,700, an increase in shipping and freight of approximately $62,200, and other net increases in selling expenses of $45,800 related to increased selling activities.

* For the nine months ended January 31, 2006, general and administrative expenses were $760,116 as compared to $749,099 for the nine months ended January 31, 2005, an increase of $11,017 or 1.5%. The increase is primarily attributable to a decrease of approximately $161,000 in business development expenses incurred during the nine months ended January 31, 2005. This decrease was offset by an increase in travel and entertainment of approximately $113,300 and increases in general operating expenses such as management fees paid to a related party of $27,000 and office expenses associated with increased operations.

-23-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

For the nine months ended January 31, 2006, other income amounted to $152,771 as compared to other income of $24,881 for the nine months ended January 31, 2005. Other income for the nine months ended January 31, 2006 and 2005 was associated with income recognized from the collection of value-added taxes on certain of our products which we receive a tax credit.

For the nine months ended January 31, 2006, interest expense was $30,321 as compared to $55,608 for the nine months ended January 31, 2005, a decrease of $25,287 or 45%. Interest expense for the nine months ended January 31, 2006 and 2005 was associated with our borrowings.

For the nine months ended January 31, 2006, we recorded a benefit from income taxes of $523,906 as compared to a provision for income taxes of $(389,146) for the nine months ended January 31, 2005. In the current period, we received a waiver of income taxes from the local Chinese government, waiving income tax due through January December 2005. We do not expect to pay income taxes for fiscal 2006 and expect to receive an additional waiver for taxes through April 2006.

Our income before minority interest increased by $2,103,174 or 412% to $2,614,278 for the nine months ended January 31, 2006 as compared to $511,104 for the nine months ended January 31, 2005 primarily as a result of an increase in other income of $127,890, an increase in benefit from income axes of $913,052, and an increase in income of $867,323 from the recovery of bad debt previously written off.

For the nine months ended January 31, 2006, we reported a minority interest in income of subsidiary (Qufu) of $589,174 as compared to $158,017 for the nine months ended January 31, 2005. The minority interest in income of subsidiary is attributable to Qufu, which we allocate to the minority stockholders, had the effect of reducing our net income.

As a result of these factors, we reported net income of $2,025,104 or $.04 per share for the nine months ended January 31, 2006 as compared to net income of $353,087 or $.01 per share for the nine months ended January 31, 2005.

LIQUIDITY AND CAPITAL RESOURCES

            At January 31, 2006, we had working capital of $7,225,260 and cash
and cash equivalents of $3,632,324.    At January 31, 2006, our cash position
by geographic area is as follows:

           United States           $1,123,969
           China                    2,508,355
                                --------------
           Total                   $3,632,324
                                ==============


The Company presently has no need for other alternative sources of working capital and at this time, has no commitments, or plans to obtain additional capital. If in the future, the Company seeks to raise additional capital through the sale of equity securities, no assurances can be given that the Company will be successful in obtaining additional capital, or that such capital will be available on terms acceptable to the Company. Further, there can be no assurances that even if such additional capital is obtained, the Company will sustain profitability or positive cash flow.

-24-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

During fiscal 2005, we raised cash proceeds of $902,565 from the sale of our common stock. Additionally, during fiscal 2005, we reduced our balance that we advanced to customers by $1,018,862. During the nine months ended January 31, 2006, we received proceeds of $2,053,050 from the exercise of warrants.

At January 31, 2006, we had approximately $316,000 in short term loans payable maturing at or prior to February 2007. If we fail to obtain debt or equity financing to meet these obligations or fail to obtain extensions of the maturity dates of these debt obligations, our overall liquidity and capital resources will be adversely affected as a result of our efforts to satisfy these obligations.

Net cash provided by operating activities increased from $2,252,266 for the nine months ended January 31, 2005 to $2,314,557 for the nine months ended January 31, 2006. This increase is primarily attributable to:

* an increase of $1,672,017 in our net income,

* a decrease of $8,943 in depreciation and amortization as a result of the fact that certain property, plant and equipment was fully depreciated in the prior period.

* an increase of $66,312 in stock based compensation which reflects the increase in the payment of non-cash compensation to consultants during the 2006 period. We paid stock based compensation to consultants for business development services, management services, and investor relations services. We expect to issue additional common shares for consulting services in the future.

* an increase of $431,157 in minority interest which represents that portion of our net income which is attributable to the 20% of Qufu we do not own,

* a decrease of $796,512 in allowance for doubtful accounts which represents a decrease in our allowance for bad debt based on an analysis of our receivable balances and the collection of previously written-off accounts receivable,

* a decrease of $143,877 in accounts receivable as a result of collecting our receivables in a more timely manner and the application of advanced from customer to our accounts receivable balances,

* a decrease of $1,414,333 in inventory as a result of slow down of inventory production as we update our facilities. We expect our inventory levels to rise as we increase our stevioside production,

* a decrease of $688,779 in prepaid and other current assets, as a result of the receipt of inventory from advances previously made to suppliers of stevioside in preparation of our new stevioside production line,

* a decrease of $67,190 in due from related parties as a result of the receipt of inventory from advances previously made to related parties,

-25-

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (continued)

* a decrease of $125,918 in accounts payable and accrued expenses as a result of the repayment of balances due from our cash provided by operations,

* a decrease of $915,093 in income tax payable as a result of the receipt of a tax waiver in the current period,

* an increase of $301,753 in advances from customers which includes an increase in prepayments from our stevioside customers due to an increase in production and shipments as we added and upgraded manufacturing lines. We expect advances from customers to increase to approximately $1,000,000 as stevioside production increases.

Net cash used in investing activities increased to $2,156,597 for the nine months ended January 31, 2006 as compared to $1,484,609 for the nine months . . .

good news out:
Sunwin International Neutraceuticals Receives Purchase Orders Over 150 Tons of Stevia, a 100% Increase Compared to the Same Period of 2005
Tuesday April 25, 8:30 am ET

Company Forecasts Rapidly Increased Global Demand for Stevia

QUFU, CHINA--(MARKET WIRE)--Apr 25, 2006 -- Sunwin International Neutraceuticals, Inc. (OTC BB: SUWN), an industry leader in the production and distribution of Chinese herbs, veterinary medicines and low calorie sweetener (Stevia) in China, announced today that the company's Stevia production at their newly constructed facility has reached 22 to 25 tons per month or 260 to 300 tons per year following a major renovation effort commenced in 2005.

In the first three months of 2006, the company has received purchase orders in excess of 125 tons of Stevia, a 100% increase compared to same period in 2005, or 80% of Sunwin's Stevia production for the entire 2005 fiscal year. The company's production of Stevia during 2005 was reduced due to construction of the new Stevia production facility.

Due to increase global demand and consumption of Stevia, Sunwin plans to outsource a certain percentage of Stevia production to third parties. Management estimates to produce 260 tons to 300 tons of Stevia at our own new facility while outsourcing an additional 150 tons to 200 tons for fiscal 2007. Sunwin's Stevia division alone could achieve approximately $12 to $15 million in annual sales in the coming fiscal year, prior to any potential acquisitions, and the potential Stevia sales in North America.

Stevia, a natural sweetener extracted from the leaves of the Stevia rebaudiana plant, is used as a food additive in a wide variety of products such as beverages, pastries, dairy products, candies, confections, and medicinal products in Japan, China, Malaysia, Israel, South Korea, the Pacific Rim, Brazil , and numerous Latin American countries.

Japan, known worldwide as having healthy dietary habits with a population of over 127 million people, utilizes Stevia for 30% to 40% of their entire sweetener consumption including sugar. Stevia is used as a sweetener by some of the largest North American food and beverage manufacturers in their Japanese production facilities. The population of countries that currently use Stevia as a sweetener exceeds two billion worldwide. Currently the FDA requires Stevia to be labeled as a dietary supplement for sale in the U.S.

Mr. Laiwang Zhang, Chairman and President of Sunwin International, commented, "We believe Stevia is the sweetener of the future. The human body does not metabolize the sweet glycosides (they pass right through the normal elimination channels) from the leaf or any of its processed forms; therefore, the body retains few if any calories from Stevia. For those who have blood sugar, blood pressure, diabetic or weight problems, Stevia is an excellent supplement to their daily diet."

Mr. Zhang concluded, "Our goal is to increase Stevia production to 800 to 1,000 tons per year by the end of 2007. Furthermore, we plan to move forward with our marketing campaign to access the U.S. consumer market. Lastly we will continue our M&A strategy as we are presently reviewing several Stevia production facilities for acquisition."