November 2007 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any...

November 2007

www.shengtaipharmaceutical.com


Safe Harbor Statement Under the Private Securities Litigation Reform Act of

1995: Any statements set forth in this presentation that are not historical facts

are forward-looking statements that involve risks and uncertainties that could

cause actual results to differ materially from those in the forward-looking

statements, which may include, but are not limited to, such factors as

unanticipated changes in product demand, increased competition, changes in

the scope or timing of the Company’s projects, slowdown in the demand for

glucose series products and starch products, uncompetitive levels of research

and development, failure to obtain regulatory approvals, and other information

detailed from time to time in the Company’s filings and future filings with the

United States Securities and Exchange Commission. The forward-looking

statements contained in this presentation are made only as of this date, and the

Company is under no obligation to revise or update these forward-looking

statements.

2


Equity Snap Shot

Ticker: SGTI

Price (11/19/2007): $3.50

Market Cap: $69.0mil

Revenues (ttm): $58.8 mil

Net Income (ttm): $7.8 mil

Diluted shares outstanding as of 09/30/2007: 19.7 mil

Earnings Per Share (ttm): $0.64

P/E (ttm): 5.5x

3


Company Overview

4

Market leader of pharmaceutical grade glucose in China

The most important manufacturer and supplier of Dextrose Monohydrate transfusion solutions in China

Background Established and acquired state-owned

enterprise in 1999 Became an indirect wholly-owned subsidiary of

West Coast Car Co. in 2007 Current name since June 2007

Headquartered in East Windsor, NJ, with major operating subsidiary in Weifang, Shandong Province, China

Total of 766 employees


Investment Highlights

Rapid revenue growth and strong profitability

Positioning itself to be the leading pharmaceutical grade glucose supplier

Located near raw material supplies in Shandong, largest corn producing province in China; Convenient to ship products to Beijing, Shanghai, Seoul and Tokyo

Vertical integration of raw materials manufacturing facility enhances production capacity and product quality

Development of high value-added industrial-use products

Growth opportunities from domestic and overseas markets

$20.0

$24.9

$36.0

$51.7

$10.6

$19.4

2004 2005 2006 2007 1Q07 1Q08

Revenue ($ Million)

5

Net Income ($ Million)

$0.5

$1.6

$4.2

$7.1

$1.5$2.3

2004 2005 2006 2007 1Q07 1Q08


Principal Products

Pharmaceutical and medicinal materials Dextrose Monohydrate

Series Starch, Dextrin, Multivitamin glucose Glucose base solution Pharmaceutical grade

starch Avermectins (Ointment,

refinement)

Food, Beverage and Processing Industries Products Syrup Industrial glucose Starch Dextrin Sodium Gluconate Maltose Maltitol

6


Revenue Mix

7

Average Gross Profit Margin,7/01/2006-6/30/2007

27%

15%

25% 27%

15%22%

0%

10%

20%

30%

40%

50%

Monohydrate

Series

Dextrin Multivitamin

glucose

Glucose base

solution

Pharmaceutical

grade starch

Food, Beverage

and Processing

Industries

Products

Revenue By Products,7/01/2006-6/30/2007

61.0%

3.7%2.1%32.7%

0.5% 0.1%

Monohydrate Series

Dextrin

Multivitamin glucose

Glucose base solution

Pharmaceutical gradestarch

Food, Beverage andProcessing IndustriesProductsTotal Revenue (7/01/2006-6/30/2007) = $ 51.7 Million


Growth Strategy

8

Higher living standards make glucose affordable in China, thus stimulate glucose consumption

Vertically integrate the new cornstarch plant to assure adequate supply

of quality raw materials

Upgrade existing glucose manufacturing plant capacity and construct a

new domestic high-quality glucose production complex to satisfy fast

growing domestic and overseas markets

Consolidate domestic market before ambitiously targeting overseas

customers

Develop new higher-margin, industrial grade products and downstream

products

Build brand loyalty by leveraging sales and marketing


Benefits of New Factory

Benefits Low-cost, stable supply of

high-quality raw materials for glucose production

Stable raw material supply enables existing glucose production plant to operate at 100% capacity

Reduced transportation costs of raw materials

Quality assurance of raw materials

Improved revenues by selling excess cornstarch produced

9

About New Cornstarch Plant New, modern equipment with improved

technology

Maximum annual production capacity of 240,000 tons

Capacity can be easily expanded to 300,000 tons when necessary

Located near corn production areas

Next to Shengtai’s existing glucose production plant and the new complex


Existing Glucose Production Facilities

10

Existing Glucose Production Facilities Before October 2006, the annual production capacity was 60,000

tons

Whatever we produced was insufficient to meet the strong market demand

From October 2006 to May 2008, we have been upgrading their capacities to more than 90,000 tons


New Glucose Production Complex

11

New Glucose Production Complex Expected annual capacity of 150,000 tons of pharmaceutical glucose and

value-added glucose products

Commenced construction in early July 2007 and anticipate that construction will be completed in the first half of 2008

State-of-the-art machinery and technology

Strictest quality control standards

Most competent employees


Production Process

EmulsionCornstarchConvert

GlucoamylaseAdd in

Clean and Dry

Filter

Discolor

Ion exchange

Inspissation

Crystallization and separation

Glucose

12


Quality Control

Production facilities fully certified for GMP, ISO9002 and HACCP international quality standards

Three-Tier quality control system Workshop team Production team Management accountability

Pollution- and contamination-free production environment

Stringent hygiene controlled warehouse

Output conforming to pharmaceutical glucose product specifications is maintained at 100%

13


Distribution Channel and Target Market

GuangzhouGuangzhou

ChengduChengdu

ShantouShantou

WuhanWuhan

NanningNanning

GuilinGuilinNanchangNanchang

HangZhouHangZhou

SuzhouSuzhou

ShandongShandong

Representative offices in 7

provinces, with business

in 27 provinces

Export to over 60 countries

Target Customers

Pharmaceutical companies

Medical supply companies

Medical supply exporters

Food and beverage

companies

Domestic Market

14

Representative OfficeChinese Operation Headquarters


Customer Base

Key Factors to reinforce customer loyalty:

High quality, pharmaceutical grade products

Certified product reliability

On-time deliveries

New and improved medicinal products and packaging

Excellent service and support

Strong referrals

15


Growth Opportunity in China

Population in China

1276

1285

1292

1300

1308

1270

1280

1290

1300

1310

2001 2002 2003 2004 2005

Million

About 300,000 medical service providers

Increasing population drives over 15% annual growth on Chinese pharmaceutical market

Strong demand for higher quality drugs and medical equipment

China will become world’s 5th largest pharmaceutical market, valued at $75 billion by 2010

16

Number of Health Institutions

291

298299

284

288

292

296

300

2003 2004 2005

Thousand

Source: National Bureau of Statistics of China


Experienced Management Team

Qingtai Liu – President, CEO Formerly head of Science and Technology of Changle Power Factory, Bachelor

of Electrical Engineering Degree from Shandong Technical University

Yizhao Zhang – CFO Held senior positions in Chinawe Asset Management Corporation (CHWE) and

China Natural Resources Incorporation (CHNR), received Bachelors degree in Economics from Fudan University, Shanghai and MBA from State University of New York at Buffalo. CPA of Delaware and member of AICPA

Chris W. Wang – Independent Director, Chairman of Audit Committee

Served as Chief Financial Officer of Fushi International, Inc., Executive VP of Redwood Capital, Inc., obtained MBA in Finance and Corporate Accounting from Simon Business School of University of Rochester

17


Financial Highlights

18

Shengtai Pharmaceutical, Inc.


$20.0$24.9

$36.0

$51.7

$10.6

$19.4

2004 2005 2006 2007 1Q07 1Q08

Million $

Strong Revenue Growth

Note: 1Q 2007, 1Q 2008 unaudited financial statements

4 year CAGR 26.8%

4 year CAGR 26.8%

19


$3.5

$5.3

$8.5

$2.4

$4.6

$12.2

23.7%23.0%23.6%23.5%

21.3%

17.6%

0

2

4

6

8

10

12

14

2004 2005 2006 2007 1Q07 1Q08

Million $

0%

5%

10%

15%

20%

25%

Gross profit Gross margin

Increasing Gross Margin


4 year CAGR 36.5%

4 year CAGR 36.5%

20


$0.5

$1.6

$4.2

$7.1

$1.5

$2.3

14.0%

11.6%

2.4%

6.5%

11.7% 13.8%

0

1

2

3

4

5

6

7

8

2004 2005 2006 2007 1Q07 1Q08

Million $

0%

2%

4%

6%

8%

10%

12%

14%

16%

Net Income Net Profit Margin

Strong Net Income Growth


4 year CAGR 95.7%

4 year CAGR 95.7%

21


$0.05

$0.16

$0.42

$0.64

$0.15$0.12

2004 2005 2006 2007 1Q07 1Q08

Earnings Per Share (Diluted)

Note: 1Q 2007, 1Q 2008 unaudited financial statements.

22


Balance Sheet Highlights

September 30 For year ended June 30

2007 2007 2006

($ in Thousand)

Cash $1,383 $6,420 $502

Current Assets 21,870 31,266 12,150

Total Assets 70,605 73,760 31,271

Current Liabilities 32,865 38,468 23,612

Total Liabilities 36,276 42,130 24,614

Total Stockholder's

Equity34,328 31,631 6,657

September 30, 2007 unaudited financial statement

23


Attractive Valuation

CompanyTicker

Symbol

Stock

Price ($)

Market Cap

($M)EPS $

(ttm)P/E

(ttm)P/S (ttm)

P/B (mrq)


SGTI

3.50 69 0.64 5.5 1.2 2.0

Xiwang Sugar Holdings 2088.HK 0.34 280 0.04 7.7 1.4 1.8

Global Bio-Chem 0809.HK 0.32 731 0.03 10.7 1.1 1.0

Corn Products International Inc.

CPO

37.97 2,924 2.41 15.8 0.9 1.9

Archer-Daniels-Midland Co.

ADM

36.27 23,467 3.38 10.7 0.5 2.0

Average 5,502 1.30 10.1 1.0 1.7

All data are extracted from Reuters.com

24

HKD 7.8/USD is foreign exchange applied for price adjustment on 2008.HK and 0809.HK


Investment Summary

Market leader and preferred supplier of pharmaceutical grade glucose in China

Vertically integrated cornstarch plant enables stable, high-quality and low cost material supply.

Glucose capacity expansion by upgrading and building production facilities to meet strong demand

Target domestic and overseas opportunities

Develop new, higher-margin, industrial-use products

Solid financial performance

Experienced management team with track record of success

25


Outlook

Optimistic about our outlook Confident in achieving “make-good” numbers

Existing Risks: Inability to complete the new glucose complex as previously

scheduled

Increasing interest rates in China

Uncontrollable commodities prices

Sudden appreciation of Chinese currency versus foreign currencies

26


Contact


Philips Zhang, CFO

Changda Road East, Development

District, Changle County, Shandong

Province

Tel: +86-536-629-5728

[email protected]

CCG Elite Investor Relations Inc.

Crocker Coulson, President

1325 Avenue of the Americas,

Suite 2800

New York, NY 10019

Tel: 1 (646) 213-1915

[email protected]

27

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