The following discussion and analysis of our consolidated financial condition
and results of operations for the fiscal years ended April 30, 2020 and 2019
should be read in conjunction with the consolidated financial statements and
footnotes, and other information presented elsewhere in this Form 10-K.

                                    OVERVIEW

We sell stevioside and other stevia derived products. Stevioside is a natural
zero calorie sweetener extracted from the leaf of the stevia plants.
Substantially all of our operations are located in the PRC. We have built an
integrated company with the sourcing and production capabilities designed to
meet the needs of our customers.

During the fiscal years ended April 30, 2020 and 2019, our continuing operations were organized in two operating segments related to our product lines:



  -   Stevioside; and
  -   Corporate and other.



Recent Developments

In fiscal 2019 and fiscal 2020 we invested in a new production line for
Metformin as one of the new product markets we intend to branch into. The new
manufacturing facility is fully equipped with stainless steel equipment without
any plastic while it has a fully automated system in order to prevent any
potential contamination from operators and plastic. In addition, the new
manufacturing facility uses the most advanced production equipment that is the
first being used for our production in the industry, such as the scraper with
centrifuge and fluidized drying system. In fiscal 2020, we have been producing
Metformin at a trial capacity to test the market and determine if this is a
suitable product to be added to our operation.
                                     - 14 -
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While we were able to market and sale our Metformin products, with our current
overhead and associated expenses, its profit margin has not been as lucrative as
we had projected, our Metformin production line has been operating at a net loss
in fiscal 2020. On July 10, 2019, we entered into a management agreement with Ru
Yuan, an unaffiliated individual, to contract out the Metformin production line
for 30 years, the parties agree to review and reconfirm the terms every 5 years.
Under the terms of this agreement, Ms. Yuan will operate the Metformin
production line independently from Sunwin assuming all of its profits and
liabilities, including employee payroll, benefits, utilities and etc., and will
pay to Qufu Shengren an annual contract fee of RMB3,000,000 (approximately
$436,000).

On July 30, 2019, Qufu Natural Green entered into an Asset Transfer Agreement
with Na Li, an unaffiliated individual (the "Buyer") for the sale of 100% equity
ownership of Qufu Shengwang. Pursuant to the Asset Transfer Agreement, the Buyer
shall pay to Qufu Natural Green a total cash consideration of RMB8,000,000
(approximately $1,163,000) based on the estimated net book value as of July 30,
2019, payable in two installments of RMB5,000,000 (approximately $727,000) on
July 30, 2019 and RMB3,000,000 (approximately $436,000) on September 30, 2019.
The Buyer assumed all assets and liabilities of Qufu Shengwang including the
amount of Qufu Shengwang's due to Qufu Natural Green of approximately
RMB26,000,000 (approximately $3,779,000), and Qufu Natural Green shall assist in
completing all documents required for the equity transfer after confirming
receipt of the first payment. The Company received the first installment of
RMB5,000,000 on July 30, 2019, and received the second installment of
RMB3,000,000 on August 20, 2019. The Buyer settled all liabilities of Qufu
Shengwang due to Natural Green by assuming the liabilities on behalf of Qufu
Shengren in the amount of approximately RMB 26,000,000 (approximately
$3,779,070) due to another third party.

In April 2020, management made the decision to increase the operating capital of
Qufu Shengren from the original RMB 19,680,000 (approximately $2,800,000) to RMB
183,000,000 (approximately $26,000,000), this will allow for the Company to
better focus on our Stevia operation and increase investment to our research and
production. The increase of capital will come from additional funding of RMB
92,470,000 (approximately $13,100,000) from Qufu Natural Green, and RMB
70,850,000 (approximately $10,000,000) debt to equity conversion of multiple
creditors. On April 30, 2020, seven individual creditors and three suppliers, an
individual investor and Qufu Shengren entered into a series of debt transfer and
conversion agreements, the individual creditors and suppliers agreed to transfer
the full amount of their receivable, including principal and interest due from
Qufu Shengren, at full value, to the individual investor. The individual
investor then converted the full amount of the debts into equity and transfered
a part of that equity to Shangdong Yulong Mining Group Co., Ltd. ("Yulong"). The
individual investor and Yulong became minority shareholder of Qufu Shengren as
of April 30, 2020 accounting for 38.4% and 0.3%, respectively.

We believe this addition in capital will greatly benefit our stevia product development, manufacturing, and marketing effort. With the increased capital, we will be able to focus more on our technology advancements, improvement in manufacturing process and increase our production capacity.

The COVID-19 Pandemic



Since early 2020, the epidemic of the novel strain of coronavirus (COVID-19)
(the "COVID-19 pandemic") has spread across China and other countries, and has
adversely affected businesses and economic activities in the first quarter of
2020 and beyond. The Company followed the restrictive measures implemented in
China, by suspending onsite operation in January, 2020 and having employees work
remotely until late March 2020, when the Company assessed the situation and
started to gradually resume normal operation at areas deemed safe while
implementing effective health measures. Consequently, the COVID-19 pandemic may
adversely affect the Company's business operations, financial condition and
operating results for 2020, including but not limited to material negative
impact to the Company's total revenues, production capability, ability to
conduct marketing and sales, and slower collection of accounts receivables. We
are able to maintain certain income from previous existing orders and finished
products, however, we anticipates significant economic impact related to
COVID-19. Due to the high uncertainty of the evolving situation, the Company has
limited visibility on the full impact brought upon by the COVID-19 pandemic and
the related financial impact cannot be estimated at this time.

We believe the effect of the COVID-19 pandemic will be most significant in our
raw material purchasing and our sales. Due to the effect of the global COVID-19
pandemic, we expect the sourcing and availability of stevia raw material will
have increased difficulties and costs for fiscal 2021 and 2022. February to
March is normally the nursing period for stevia plants, as a result of COVID-19
related gathering laws, farmers are not able to have the same amount of nursery
workers as previous years, resulting in a decrease of stevia plants and;
relevant safety measures also resulted in an increase of general planting costs.
We expect this to cause a shortage of stevia leaves harvest this year and along
with the effect of the rain seasons, we expect to see an increase in our cost of
raw material. After we resumed production, the effect of the COVID -19 pandemic
on transportations has also made it difficult for us to efficiently procure our
raw materials.
                                     - 15 -
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We also expect our sales to be significantly impacted by the COVID-19 pandemic.
Due to the Chinese New Year holiday followed by the COVID-19 pandemic, our sales
were paused for the months between January to March 2020. At the resumption of
production in March 2020, we experienced difficulty in the delivery of our
products. The ability to ship through ground transportation was very limited, if
any, across provinces in China, and air shipments internationally was also very
limited, if any; this caused us to be unable to timely deliver our products even
if sales were made. In May 2020, China slowly resumed to normal; however, as the
global situation worsened, many of our international clients were pausing their
operations and no longer making new orders. We expect this low demand and
difficulty in transportation situation to remain in fiscal 2021.

We are monitoring the global outbreak and spread of COVID-19 and taking steps in
an effort to identify and mitigate the adverse impacts on, and risks to, our
business (including but not limited to our employees, customers, and other
business partners) posed by its spread and the governmental and community
reactions thereto. We continue to assess and update our business continuity
plans in the context of this pandemic, including taking steps in an effort to
help keep our workforces healthy and safe. The spread of COVID-19 has caused us
to modify our business practices (including warehouse and production procedures,
employee travel, employee work locations in certain cases, and cancellation of
physical participation in certain meetings, events and conferences), and we
expect to take further actions as may be required or recommended by government
authorities or as we determine are in the best interests of our employees,
customers and other business partners. We are also working with our suppliers to
understand the existing and future negative impacts, and to take actions in an
effort to mitigate such impacts. Due to the speed with which
the COVID-19 pandemic is developing, the global breadth of its spread and the
range of governmental and community reactions thereto, there is uncertainty
around its duration and ultimate impact; therefore, any negative impact on our
overall financial and operating results (including without limitation our
liquidity) cannot be reasonably estimated at this time, but the pandemic could
lead to extended disruption of economic activity and the impact on our financial
and operating results.

                                Our Performance

Our revenues totaled $26.1 million in the fiscal year ended April 30, 2020, an
increase of 25.1% as compared to the fiscal year ended April 30, 2019, but our
gross margin increased to 16.9% from 7.6% primarily due to our effort to expand
our shares in both domestic and international markets. Our total operating
expenses in the fiscal year ended April 30, 2020 decreased by approximately
$712,000 or 12.8% compared to the fiscal year ended April 30, 2019 primarily due
to a decrease of approximately $423,000 or 21.9% in selling expenses, a decrease
of approximately $1,192,000 or 45.2% in general and administrative expenses, and
offset by an increase of approximately $903,000 or 91.9% in research and
development expenses. Our net loss from continuing operations for the fiscal
year ended April 30, 2020 was approximately $1,129,000, compared to $4,664,000
in the fiscal year ended April 30, 2019.

While we have broadened our stevia product offerings to include a number of
higher quality stevia grades needed in new product formulations we are
developing to introduce to the U.S. and European food and beverage industry, the
demand for higher grade stevia products has yet to materialize to the degree we
had anticipated, and thus our sales volume in higher grade stevia products was
lower than expected for the fiscal year ended April 30, 2020. The increase of
revenue in Stevioside segment is primarily due to an increasing demand from the
developing domestic and international market. Stevia has been widely accepted by
the food industry and many new stevia manufacturers have entered this industry
in the past few years, and recently we introduced a new product line. We are now
focusing on new types of stevia products, including tablets, liquid, High A
products, enzyme treated products and others. We expect to consistently increase
our sales of our new products; however we cannot quantify this increase and its
effects on future periods.

Our Outlook

We believe that there are significant opportunities for worldwide growth in our
Stevioside segment, not only in the U.S. and EU markets but also in our domestic
market. For the fiscal year ended April 30, 2020 and beyond, we will continue to
focus on our core business of producing and selling stevioside series products.

Currently there is a world-wide movement of lowering sugar intake, and more and
more consumers are becoming aware of the health benefits associated with
reduction of sugar intake. According to research data, 40% of Chinese consumers
stated that they "will not mind paying more for food and beverages with more
natural ingredients" and 80% of the interview consumers express a goal of
"having a healthier diet". We believe in this search of a more natural and
healthy diet and lifestyle, natural sweeteners such as stevia will become the
mainstream sweetener in the food and beverage markets.
                                     - 16 -
--------------------------------------------------------------------------------

Some of the recent favorable observations related to the stevia markets
includes:

       -   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;
       -   New global product launches mentioning stevia have increased 13% per
           year on average from 2014 to 2018; and

- Stevia has been growing in popularity in the last 10 years throughout


           all the global markets.



Meanwhile, we are also facing challenges in competitive pricing and raw
materials for the fiscal years ended April 30, 2020 and 2019, as well as
negative impact from the global COVID-19 pandemic. During the fiscal years ended
April 30, 2020, the market prices of stevioside products continue to be impacted
by strong price competition among Chinese manufacturers. With this being a
product gaining large market shares in China, in the recent years we have seen
many competitors entering the market. These new competitors use lower pricing as
their effort to gain market share as they initially entering the market, thus
driving down the average prices for stevia products. We expect the pressure from
pricing competition to continue in fiscal 2021. We anticipate the price of
stevia leaves, the raw material used to produce our stevioside series products,
will also continue to increase in fiscal 2021 since the demand for raw material
may increase as the market grows, while the production of the raw material
experiences negative impact due to the global pandemic.

We intend to make adjustments internally in order to better operate in this
market; our goal is to increase sales and develop new client bases through our
marketing effort, decrease our production expenses while maintaining the
stability and quality of our products, and decrease our overall expenditures. We
believe while there are challenges and risks in this market, our high quality
high grade product and the formulations developed by our internal research and
development team differentiates us from other competitors and our efforts will
lead to sustainable growth in the future.

                             RESULTS OF OPERATIONS

The following table summarizes our results of operations for the fiscal year
ended April 30, 2020 and 2019. The percentages represent each line item as a
percent of revenues:

                                      For the Fiscal Year Ended April 30, 2020
                                Stevioside                 Corporate and Other                Consolidated
Revenues                $ 25,238,941         100.0 %    $    852,543         100.0 %   $ 26,091,484         100.0 %
Cost of goods sold        21,275,494          84.3 %         416,933          48.9 %     21,692,427          83.1 %
Gross profit               3,963,447          15.7 %         435,610          51.1 %      4,399,057          16.9 %
Selling expenses           1,489,928           5.9 %          21,863           2.6 %      1,511,791           5.8 %
General and
administrative
expenses                   1,301,402           5.2 %         144,250          16.9 %      1,445,652           5.5 %
Research and
development expenses       1,884,718           7.5 %               -             -        1,884,718           7.2 %
(Loss) gain from
operations                  (712,601 )        (2.8 )%        269,497          31.6 %       (443,104 )        (1.7 )%
Other income
(expenses)                  (686,148 )        (2.7 )%              -             -         (686,148 )        (2.6 )%
(Loss) gain from
continuing operation
before income taxes     $ (1,398,749 )        (5.5 )%   $    269,497

31.6 % $ (1,129,252 ) (4.3 )%


                                     - 17 -
--------------------------------------------------------------------------------


                                      For the Fiscal Year Ended April 30, 2019
                                Stevioside                 Corporate and Other                 Consolidated
Revenues                $ 18,162,702         100.0 %    $  2,687,743         100.0 %    $ 20,850,445         100.0 %
Cost of goods sold        17,094,522          94.1 %       2,173,367          80.9 %      19,267,889          92.4 %
Gross profit               1,068,180           5.9 %         514,376          19.1 %       1,582,556           7.6 %
Selling expenses           1,674,345           9.2 %         260,820           9.7 %       1,935,165           9.3 %
General and
administrative
expenses                   1,675,535           9.2 %         961,650          35.8 %       2,637,185          12.6 %
Research and
development expenses         891,974           4.9 %          89,988           3.3 %         981,962           4.7 %

Loss from operations (3,173,674 ) (17.5 )% (798,082 ) 


 (29.7 )%     (3,971,756 )       (19.0 )%
Other income
(expenses)                  (692,202 )        (3.8 )%              -             -          (692,202 )        (3.3 )%
(Loss) from
continuing operation
before income taxes     $ (3,865,876 )       (21.3 )%   $   (798,082 )       (29.7 )%   $ (4,663,958 )       (22.4 )%



Revenues

Total revenues in the fiscal year ended April 30, 2020 increased by
approximately $5,241,000, or 25.1%, as compared to the fiscal year ended April
30, 2019. Within our Stevioside segment, revenues from sales to third parties
increased by 23.9% and the sales to the related party increased by 85.9% in the
fiscal year ended April 30, 2020, as compared to the fiscal year ended April 30,
2019, primarily due to an increasing demand from both domestic and overseas
markets and the results of our effort to do research and develop sales in
diversity products. Since we do not have the authorization to export products
from China, we outsourced our exporting business to a related party, Qufu
Shengwang Import and Export Corporation, which has authorizations to export. In
addition, our products including A3-99 and enzyme treated stevia have been well
accepted by the market, especially in the U.S.. We sold 761 metric tons and 525
metric tons of stevioside for the fiscal year ended April 30, 2020 and 2019,
respectively. We generated approximately $5,765,000 and $2,249,000 in revenue
from producing over 104 metric tons and 62.3 metric tons of the customized
orders for restructuring by enzyme based on our Stevioside products which
accounted for approximately 23% and 12% of our total revenues of Sativoside
segment in the fiscal years ended April 30, 2020 and 2019, respectively.

Our unit sale price fluctuated from month to month in the fiscal year ended
April 30, 2020, which was mainly affected by the market environment; the average
unit sales price of our stevia products has slightly decreased because of our
effort to stay ahead of competition and to gain market share for the fiscal year
ended April 30, 2020, as compared to the fiscal year ended April 30, 2019. We
are facing challenges in competitive pricing and sourcing of raw materials, and
the market prices of stevioside products were impacted by strong price
competition among Chinese manufacturers. With the restructuring of our product
line, we also continue to increase the sales of our low grade stevia products.
Our low grade stevia and A3-97 products generated more than 32% and 26% of total
revenue of our Stevioside segment, respectively, while our enzyme treated
products generated over $5.8 million in revenues with the gross profit rate of
31.6% and average unit price of $32.4 in the fiscal year ended April 30, 2020.
Our low grade stevia and A3-97 products generated more than 22% and 27% of total
revenue of our Stevioside segment, respectively, while we generated over $2.2
million from enzyme treated products in revenues with the gross profit rate of
21% and the average unit price of $36 in the fiscal year ended April 30, 2019.
In the fiscal year ended April 30, 2020, some of our stevia products, such as
A3-80, A3-60 and A3-50, were sold for a loss in order to avoid further losses
resulting from spoilage of overstocked inventory.

Cost of Revenues and Gross Margin



 Cost of revenues of Stevioside segment in the fiscal year ended April 30, 2020
increased by approximately $4,181,000, or 24.5%, while revenues from Stevioside
segment increased by approximately $7,076,000, compared to the fiscal year ended
April 30, 2019. Gross margin on Stevioside segment for the fiscal year ended
April 30, 2020 was 15.7%, as compared to 5.9% for the fiscal year ended April
30, 2019. The increase in gross margins for Stevioside was primarily due to the
improvements in efficiency of our production line to offset the higher raw
material costs. Since we purchase our raw materials on the spot market, we are
unable to predict, with any degree of certainty, our raw material costs and
their impact on our gross margin in future periods.

                                     - 18 -
--------------------------------------------------------------------------------

Total Selling Expenses



Our selling expenses for the fiscal year ended April 30, 2020 decreased by
approximately $423,000, or 21.9% compared to the fiscal year ended April 30,
2019. The decrease was primarily due to an approximately $194,000 decrease in
advertising expense, a decrease of approximately $109,000 in office expense, a
decrease of approximately $19,000 in travel expense, a decrease of approximately
$14,000 in meal and entertainment expenses, a decrease of approximately $62,000
in warehousing expenses, a decrease of approximately $24,000 in commission
expense, a decrease of approximately $84,000 in shipping and freight, a decrease
of approximately $14,000 in salary and wage expenses, and offset by an increase
of approximately $18,000 in local sales taxes, an increase of approximately
$55,000 in promotion and marketing fees, an increase of approximately $22,000 in
selling expense on Metformin products, and an increase of approximately $2,000
in miscellaneous expenses in the fiscal year ended April 30, 2020.

Total General and Administrative Expenses



Our general and administrative expenses for the fiscal year ended April 30, 2020
decreased by $1,192,000, or 45.2% compared to the fiscal year ended April 30,
2019. The decrease was primarily due to a decrease of approximately $716,000 in
stock based compensation to consultants, a decrease of approximately $61,000 in
depreciation and amortization expenses, a decrease of approximately $159,000 in
marketing fees, a decrease of approximately $23,000 in travel expense, a
decrease of approximately $65,000 in meals and entertainment, a decrease of
approximately $47,000 in office expense, a decrease of approximately $151,000 in
bad debt expense, a decrease of approximately $38,000 in salaries and wages,  a
decrease of approximately $39,000 in auto expense, a decrease of approximately
$34,000 in other taxes, and a decrease of approximately $53,000 in miscellaneous
expenses, offset by an increase of approximately $66,000 in repair and
maintenance fees and an increase of approximately $128,000 in safety production
fund expense and  fees.

Research and Development Expenses



For the fiscal year ended April 30, 2020, our research and development expenses
amounted to approximately $1,885,000 as compared to $982,000 for the fiscal year
ended April 30, 2019. The increase of approximately $903,000 was primarily
attributable to the increase in research and development activities related to
the development of new product lines of Stevioside products.

Other Expense



For the fiscal year ended April 30, 2020, other expense, net of other income,
amounted to approximately $686,000, a decrease of $6,000 as compared to other
expense, net of other income, amounted to approximately $692,000 for the fiscal
year ended April 30, 2019. The decrease of other expense was primarily
attributable to a decrease in interest expense - related party in the amount of
approximately $28,000, a decrease in interest expense - third party in the
amount of approximately $28,000 due to the less amount of renewal loan
principal, and an increase in grant income of approximately $36,000, offset by a
decrease in other income of approximately $87,000 primarily due to an export tax
rebate.

Loss from Continuing Operations



As a result of the foregoing, our loss from continuing operations was
$1,129,000, or $(0.01) per share (basic and diluted), for the fiscal year ended
April 30, 2020, as compared with loss from continuing operations of $4,664,000,
or $(0.02) per share (basic and diluted), for the fiscal year ended April 30,
2019, a change of $3,535,000, or 75.8%.

Loss from Discontinued Operation



Our loss from discontinued operations was $253,000, or $0.00 per share (basic
and diluted), for the fiscal year ended April 30, 2020, as compared with loss
from discontinued operations of $244,000, or $(0.00) per share (basic and
diluted), for the fiscal year ended April 30, 2019, a change of $9,000 or 3.7%.
                                     - 19 -
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The summarized operating result of discontinued operations included in our consolidated statements of operations is as follows:



                                            Fiscal Years Ended April 30,
                                               2020                2019

Revenues                                  $      733,441       $  2,730,140
Cost of revenues                                 572,357          2,269,216
Loss before income taxes                         (20,016 )         (244,402 )
Income tax expense                                     -                  -

Loss from discontinued operations                (20,016 )         (244,402 )
Gain from disposal, net of taxes                  61,050                  -
Loss from sales of subsidiary                   (294,465 )                -

Total loss from discontinued operations $ (253,431 ) $ (244,402 )





Net Loss

Net loss attributable to Sunwin Stevia International, Inc. in the fiscal year
ended April 30, 2020 was approximately $1,383,000, compared to $4,908,000 in the
fiscal year ended April 30, 2019. The decrease was primarily due to an increase
in higher profit margin and lower operating expenses.

Foreign Currency Translation (Loss) or Gain



The functional currency of our subsidiaries and variable interest entities
operating in the PRC is the Chinese Yuan or Renminbi ("RMB"). The financial
statements of our subsidiaries are translated to U.S. dollars using period 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 translations are included in the Comprehensive income on
the consolidated statements of operations. As a result of foreign currency
translations, which are a non-cash adjustment, we reported a foreign currency
translation gain of $166,000 for the fiscal year ended April 30, 2020, as
compared to a foreign currency translation loss of $556,000 for the fiscal year
ended April 30, 2019. This non-cash loss had the effect of increasing our
reported comprehensive loss.

                        LIQUIDITY AND CAPITAL RESOURCES

Liquidity is the ability of a company to generate sufficient cash to meet its operational cash requirements.



At April 30, 2020, we had working capital of $3,470,000, including cash of
approximately $1,138,000, as compared to working capital of approximately
$2,411,000 and cash of $294,000 at April 30, 2019. The approximate $844,000
increase in our cash at April 30, 2020 from April 30, 2019 is primarily
attributable to net cash provided by operating activities of approximately
$2,159,000, net cash used in investing activities of approximately $627,000, and
cash used in financing activities of approximately $638,000 during the fiscal
year ended April 30, 2020. We may seek to raise capital through additional debt
and/or equity financings to fund our operations in the future. Although we have
historically raised capital from sales of equity and from bank or individual
loans, there is no assurance that we will be able to continue to do so. If we
are unable to raise additional capital or secure additional lending in the next
12 months, management expects that we will need to curtail or cease operations.
The accompanying consolidated financial statements do not include any
adjustments related to the recoverability and or classification of recorded
asset amounts and or classification of liabilities that might be necessary
should we be unable to continue as a going concern.

Accounts receivable, net of allowance for doubtful accounts, including accounts
receivable from related parties, increased by approximately $285,000 during the
fiscal year ended April 30, 2020 as a result of the increase in accounts
receivable from the related party in amount of approximately $557,000 as of
April 30, 2020. The days for sales outstanding in accounts receivable decreased
to 20 days as of April 30, 2020, as compared to 24 days on April 30, 2019.
Accounts receivable, net of allowance for doubtful accounts, excluding accounts
receivable from the related parties, decreased by approximately $272,000 during
the fiscal year ended April 30, 2020. The days for sales outstanding in accounts
receivable for third party sales accounted to 15 days as of April 30, 2020,
keeping the same as it on April 30, 2019. We will reevaluate and categorize
accounts receivable for sales and will target to improve our collection effort
in accounts receivable for related party sales and accounts receivable for third
party sales in the fiscal 2020.
                                     - 20 -
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At April 30, 2020 our inventories, net of reserve for obsolescence, totaled
approximately $12,874,000, as compared to $11,992,000 on April 30, 2019. The
increase is primarily due to our increase in procurements of raw materials in
order to meet our anticipated higher sales volume during the fiscal year ended
April 30, 2020. These inventories have not yet been sold due to the market
demands not raising as much as we predicted; however, the current inventory
level will prepare us for our anticipated upcoming increase in demands.

Our accounts payable and accrued expenses were approximately $8,533,000 at April
30, 2020, an increase of approximately $853,000 from April 30, 2019 balance of
$7,680,000. The increase was primarily due to the timing of payments for
balances related to raw material purchases made in the ordinary course of
business.

In April 2020, management made the decision to increase the operating capital of
Qufu Shengren from the original RMB 19,680,000 (approximately $2,800,000) to RMB
183,000,000 (approximately $26,000,000), this will allow for the Company to
better focus on our Stevia operation and increase investment to our research and
production. The increase of capital will come from additional funding of RMB
92,470,000 (approximately $13,100,000) from Qufu Natural Green, and RMB
70,850,000 (approximately $10,000,000) debt to equity conversion of multiple
creditors. On April 30, 2020, seven individual creditors and three suppliers, an
individual investor and Qufu Shengren entered into a series of debt transfer and
conversion agreements, the individual creditors and suppliers agreed to transfer
the full amount of their receivable, including principal and interest due from
Qufu Shengren, at full value, to the individual investor. The individual
investor then converted the full amount of the debts into equity and transfered
a part of that equity to Shangdong Yulong Mining Group Co., Ltd. ("Yulong"). The
individual investor and Yulong became minority shareholder of Qufu Shengren as
of April 30, 2020 accounting for 38.4% and 0.3%, respectively.

Due to related parties at April 30, 2020 and 2019 totaled approximately
$5,073,000 and $6,409,000, respectively. The decrease was primarily due to our
decrease in the balance of $1,688,000 advance from Pharmaceutical Corporation
during the fiscal year ended April 30, 2020. On April 30, 2020, the balance we
owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr.
Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd.,
approximately amounted to $3,982,000, $907,000 and $184,000, respectively. On
April 30, 2019, the balance we owed to Pharmaceutical Corporation, Qufu
Shengwang Import and Export, Mr. Weidong Chai approximately amounted
to $5,670,000, $558,000 and $181,000, respectively.


                              Cash Flows Analysis

NET CASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES:



Net cash provided by operating activities from continuing operations was
approximately $1,944,000 (total of $2,158,000 including provided by discontinued
operations of $214,000) for the fiscal year ended April 30, 2020, primarily due
to a decrease of approximately $246,000 in accounts receivable and note
receivable from a third party, a decrease of approximately $808,000 in prepaid
expenses and other current assets, an  increase in accounts payable and accrued
expenses of approximately $2,735,000 and an increase of approximately $147,000
in taxes payable, and non-cash working capital primarily included non-cash
depreciation expense of $1,219,000, provision for obsolete inventories of
$113,000 and a loss on disposition of property and equipment of $20,000, offset
by an increase of approximately $672,000 in accounts receivable - related party,
an increase of approximately $1,542,000 in inventories, and a net loss of
approximately $1,383,000 adjusted by loss from discontinued operations of
$253,000.

Net cash used in operating activities from continuing operations was
approximately $5,889,000 (total of $5,445,000 including provided by discontinued
operations of $445,000) for the fiscal year ended April 30, 2019, primarily due
to a net loss of approximately $4,908,000 adjusted by loss from discontinued
operations of $244,000 and non-cash working capital primarily included non-cash
employees' compensation of $716,000, depreciation expense and amortization of
intangible assets of $1,094,000, provision for obsolete inventories of
$1,000,000, and offset by a gain on disposition of property and equipment of
$23,000. The decrease in net cash from operating activities was also primarily
due to an increase of approximately $148,000 in accounts receivable and note
receivable from a third party, an increase of approximately $52,000 in accounts
receivable - related party, an increase of approximately $2,164,000 in
inventories, an increase of approximately $319,000 in prepaid expenses and other
current assets, a  decrease in accounts payable and accrued expenses of
approximately $1,275,000 and a decrease of approximately $53,000 in taxes
payable.

NET CASH FLOW USED IN INVESTING ACTIVITIES:



Net cash used in investing activities from continuing operations amounted to
$627,000 in the fiscal year ended April 30, 2020. We spent $1,775,000 in
purchases of property and equipment, offset by the proceeds received
from disposal of discontinued operations of approximately $1,143,000 and
proceeds received from disposal of equipment of approximately $5,000 in the
fiscal year ended April 30, 2020, as compared to $2,360,000 in the fiscal year
ended April 30, 2019.
                                     - 21 -
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Net cash used in investing activities from continuing operations amounted to
$2,360,000 in purchases of property and equipment, offset by the proceeds
received from disposal of equipment of approximately $3,000 in the fiscal year
ended April 30, 2019, as compared to $783,000 in the fiscal year ended April 30,
2018. Net cash used in investing activities from discontinued operations
amounted to $0 and $73,000 in fiscal year ended April 30, 2020 and 2019,
respectively.

NET CASH FLOW (USED IN) PROVIDED BY FINANCING ACTIVITIES:



Net cash used in financing activities from continuing operations amounted to
approximately $638,000 in the fiscal year ended April 30, 2020, primarily due to
repayment of short-term loans of $515,000 and repayment of related party
advances of approximately $9,044,000, offset by the proceeds from a non-related
individual short-term loan of $944,000 and advances received from related
parties of approximately $7,977,000. Net cash used in financing activities from
discontinued operations amounted to $0 in fiscal year ended April 30, 2020.

Net cash provided by financing activities from continuing operations amounted to
approximately $9,019,000 in the fiscal year ended April 30, 2019, primarily due
to proceeds from multiple non-related individual short-term and long-term loans
of $5,869,000 and advances received from related parties of approximately
$4,564,000, offset by repayment of short-term loans of $430,000 and repayment of
related party advances of approximately $984,000. Net cash used in financing
activities from discontinued operations amounted to $1,003,000 in fiscal year
ended April 30, 2019.

CASH ALLOCATION BY COUNTRIES



The functional currency of our Chinese subsidiaries is the Chinese RMB.
Substantially all of our cash is held in the form of RMB at financial
institutions located in the PRC, where there is no equivalent of federal deposit
insurance as in the United States. As a result, cash accounts at financial
institutions in the PRC are not insured. We have not experienced any losses in
such accounts as of April 30, 2020.

In 1996, the Chinese government introduced regulations which relaxed
restrictions on the conversion of the RMB; however, restrictions still remain,
including but not limited to restrictions on foreign invested entities. Foreign
invested entities may only buy, sell or remit foreign currencies after providing
valid commercial documents at only those banks authorized to conduct foreign
exchanges. Furthermore, the conversion of RMB for capital account items,
including direct investments and loans, is subject to PRC government approval.
Chinese entities are required to establish and maintain separate foreign
exchange accounts for capital account items. We cannot be certain Chinese
regulatory authorities will not impose more stringent restrictions on the
convertibility of the RMB, especially with respect to foreign exchange
transactions. Accordingly, cash on deposit in banks in the PRC is not readily
deployable by us for purposes outside of the PRC. Our cash position by
geographic area was as follows:

Country:                               April 30, 2020              April 30, 2019
United States                     $    83,830          7.4 %   $  88,506         30.1 %
China                               1,054,090         92.6 %     205,693         69.9 %
Total cash and cash equivalents   $ 1,137,920       100.00 %   $ 294,199

100.00 %

Contractual Obligations and Off-Balance-Sheet Arrangements

Contractual Obligations



 We have certain fixed contractual obligations and commitments that include
future estimated payments. Changes in our business needs, cancellation
provisions, changing interest rates, and other factors may result in actual
payments differing from the estimates. We cannot provide certainty regarding the
timing and amounts of payments. We have presented below a summary of the most
significant assumptions used in our determination of amounts presented in the
tables, in order to assist in the review of this information within the context
of our consolidated financial position, results of operations, and cash flows.
The following tables summarize our contractual obligations as of April 30, 2020
(dollars in thousands), and the effect these obligations are expected to have on
our liquidity and cash flows in future periods.
                                     - 22 -
--------------------------------------------------------------------------------



                                                 Payments Due by Period
                                           Less than
Contractual obligations:     Total          1 year        1-3 years     3-5 years     5 + years
Individual loans             3,378,380       3,378,380             -             -             -
Total                      $ 3,378,380       3,378,380             -       $     -       $     -

Off-Balance-Sheet Arrangements



Under SEC regulations, we are required to disclose our off-balance-sheet
arrangements that have or are reasonably likely to have a current or future
effect on our financial condition, such as changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or
capital resources that are material to investors. An off-balance sheet
arrangement means a transaction, agreement or contractual arrangement to which
any entity that is not consolidated with us is a party, under which we have:

  -   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.



We do not have any off-balance-sheet arrangements that we are required to
disclose pursuant to these regulations. In the ordinary course of business, we
enter into operating lease commitments, purchase commitments and other
contractual obligations. These transactions are recognized in our financial
statements in accordance with accepted accounting principles generally accepted
in the U.S. ("U.S. GAAP").

CRITICAL ACCOUNTING POLICIES AND ESTIMATES



The preparation of financial statements in conformity with U.S. GAAP requires
estimates and assumptions that affect the reported amounts of assets and
liabilities, revenues and expenses, and related disclosures of contingent assets
and liabilities in the consolidated financial statements and accompanying notes.
The SEC has defined a company's critical accounting policies as the ones that
are most important to the portrayal of the company's financial condition and
results of operations, and which require the company to make its most difficult
and subjective judgments, often as a result of the need to make estimates of
matters that are inherently uncertain. Based on this definition, we have
identified the critical accounting policies and judgments addressed below. We
also have other key accounting policies, which involve the use of estimates,
judgments and assumptions that are significant to understanding our results,
which are described in Note 1 to our consolidated financial statements. Although
we believe that our estimates, assumptions and judgments are reasonable, they
are based upon information presently available. Actual results may differ
significantly from these estimates under different assumptions, judgments or
conditions.

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