# EDGAR Filing Document

**Accession Number:** 0000806592
**File Stem:** 0000806592-23-000008
**Filing Date:** 2023-1
**Character Count:** 127248
**Document Hash:** 51f7a8ae27e857038a0f3009715f0b84
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000806592-23-000008.hdr.sgml**: 20230111

**ACCESSION NUMBER**: 0000806592-23-000008

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 94

**CONFORMED PERIOD OF REPORT**: 20221031

**FILED AS OF DATE**: 20230111

**DATE AS OF CHANGE**: 20230111

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SUNWIN STEVIA INTERNATIONAL, INC.
- **CENTRAL INDEX KEY:** 0000806592
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 562416925
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-53595
- **FILM NUMBER:** 23523621

**BUSINESS ADDRESS:**
- **STREET 1:** 6 SHENGWANG AVENUE,
- **CITY:** QUFU, SHANDONG
- **STATE:** F4
- **ZIP:** 273100
- **BUSINESS PHONE:** (86) 537-4424999

**MAIL ADDRESS:**
- **STREET 1:** 6 SHENGWANG AVENUE,
- **CITY:** QUFU, SHANDONG
- **STATE:** F4
- **ZIP:** 273100

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC.
- **DATE OF NAME CHANGE:** 20041007

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETWORK USA INC
- **DATE OF NAME CHANGE:** 20000731

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PACIFIC RESOURCES INC
- **DATE OF NAME CHANGE:** 19870605

?xml version='1.0' encoding='us-ascii' standalone='no'? SUNWIN STEVIA INTERNATIONAL, INC. - Form 10-Q SEC filing

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

(Mark One)

☒**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended October 31, 2022

or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from __________ to ___________

Commission file number: 000-53595

**SUNWIN STEVIA INTERNATIONAL, INC.**

(Exact name of registrant as specified in charter)

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| | |
|:---|:---|
| Nevada | **56-2416925** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

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| | |
|:---|:---|
| 6 Shengwang Ave., Qufu, Shandong, China | **273100** |
| (Address of principal executive offices) | (Zip Code) |

---

**(86) 537-4424999**

(Registrant's telephone number, including area code)

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol (s) | Name of each exchange on which registered |
| **None** | SUWN | **Not applicable** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes[X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes[X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ ] <br> Non-accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;[ ] Smaller reporting company ☒ <br> Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No[X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: As of January 11, 2023, there were 199,632,803 shares of the registrant's common stock issued and outstanding.

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**SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES**

**FORM 10-Q**

 **QUARTERLY PERIOD ENDED OCTOBER 31, 2022**

**INDEX**

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| | |
|:---|:---|
|  | Page |
| **PART I-FINANCIAL INFORMATION**<br>|  |
| Item 1. Financial Statements | 1 |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 17 |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk | 24 |
| Item 4. Controls and Procedures | 24 |
| **PART II-OTHER INFORMATION**<br>|  |
| Item 1. Legal Proceedings | 25 |
| Item 1A. Risk Factors | 25 |
| Item 2.&nbsp;&nbsp;&nbsp;&nbsp; Unregistered Sales of Equity Securities and Use of Proceeds | 25 |
| Item 3.&nbsp;&nbsp;&nbsp;&nbsp; Defaults Upon Senior Securities | 25 |
| Item 4.&nbsp;&nbsp;&nbsp;&nbsp; Mine Safety Disclosures | 25 |
| Item 5.&nbsp;&nbsp;&nbsp;&nbsp; Other Information | 26 |
| Item 6.&nbsp;&nbsp;&nbsp;&nbsp; Exhibits | 26 |

---

i

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**FORWARD LOOKING STATEMENTS**

This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.

Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings "Risks Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K, in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q and information contained in other reports that we file with the SEC. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

ii

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**INDEX OF CERTAIN DEFINED TERMS USED IN THIS REPORT**

We are on a fiscal year ending April 30, as such the year ending April 30, 2023 is referred to as "fiscal 2023" and the year ended April 30, 2022 is referred to as "fiscal 2022". Also, the three month period ended October 31, 2022 is our second quarter and is referred to as the "second quarter of fiscal 2023". Likewise, the three month period ended October 31, 2021 is referred to as the "second quarter of fiscal 2022".

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When used in this report, the terms: |
| "Sunwin", "we", "us" and the "Company" refers to Sunwin Stevia International, Inc., a Nevada corporation formerly known as Sunwin Neutraceuticals International, Inc., and our subsidiaries; |
| "Qufu Natural Green" refers to our wholly owned subsidiary Qufu Natural Green Engineering Co., Ltd., a Chinese limited liability company; |
| "Sunwin USA" refers to Sunwin USA, LLC, a Delaware limited liability company, a 100% owned subsidiary of Sunwin; |
| "Qufu Shengwang" refers to Qufu Shengwang Stevia Biology and Science Co., Ltd., a Chinese limited liability company. Qufu Natural Green owns a 100% interest in Qufu Shengwang. On July 30, 2019, Qufu Natural Green sold its 100% interest of Qufu Shengwang to a third party;  |
| "Qufu Shengren" refers to Qufu Shengren Pharmaceutical Co., Ltd., a Chinese limited liability company, and a 61% owned subsidiary of Qufu Natural Green; and |
| "Qufu Shengren Import and Export" refers to Qufu Shengren Import and Export Co., Ltd., a Chinese limited liability company, a 100% owned subsidiary of Qufu Shengren. |

---

The information which appears on our website at www.sunwininternational.com is not part of this report.

iii

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**ITEM I - FINANCIAL STATEMENTS**

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| | | |
|:---|:---|:---|
| **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** |
|  | **October 31,**<br> **2022**<br> (Unaudited) | **April 30,**<br> **2022** |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| Cash and cash equivalents | $2774026  | $321193  |
| Accounts receivable, net | 7935814  | 7404669  |
| Inventories, net | 2194443  | 5564044  |
| Prepaid expenses and other current assets | 3711037  | 2765819  |
| Total Current Assets | 16615320  | 16055725  |
| Property and equipment, net | 6272114  | 7485733  |
| Land use rights, net | 1731945  | 1950204  |
| **Total Assets** | **$** **24619379**  | **$** **25491662**  |
| **LIABILITIES AND EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| Accounts payable and accrued expenses | $13282031  | $12215238  |
| Short-term loans | 4320781  | 4907506  |
| Due to related parties | 4416504  | 4882162  |
| Total Current Liabilities | 22019316  | 22004906  |
| **Total Liabilities**  | **22019316**  | **22004906**  |
| Commitments and Contingencies | -  | -  |
| EQUITY: |  |  |
| Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding | -  | -  |
| Common stock, $0.001 par value, 200,000,000 shares authorized; 199,632,803 and 199,632,803 shares issued and outstanding as of October 31, 2022 and April 30, 2022, respectively | 199633  | 199633  |
| Additional paid-in capital | 47732350  | 47732350  |
| Accumulated deficit | (46606700)  | (46267397)  |
| Accumulated other comprehensive income | 4888385  | 5162418  |
| Total Sunwin Stevia International, Inc. Stockholders' Equity | 6213668  | 6827004  |
| Noncontrolling interest | (3613605)  | (3340248)  |
| **Total Equity** | **2600063**  | **3486756**  |
| **Total Liabilities and Equity** | **$** **24619379**  | **$** **25491662**  |
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements |

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| | | | | |
|:---|:---|:---|:---|:---|
| **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** |
| **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **For the Three Months Ended**<br> **October 31,**  | **For the Three Months Ended**<br> **October 31,**  | **For the Six Months Ended** <br> **October 31,**  | **For the Six Months Ended** <br> **October 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenues | $7403262  | $10108124  | $15113165  | $16376584  |
| Cost of revenues | 6127059  | 10178745  | 12680924  | 15564376  |
| Gross profit (loss) | 1276203  | (70621)  | 2432241  | 812208  |
| Operating expenses: |  |  |  |  |
| Selling expenses | 258753  | 379977  | 658220  | 748789  |
| General and administrative expenses | 385344  | 527010  | 782258  | 941653  |
| Research and development expenses | 769184  | 792367  | 1204752  | 1148080  |
| Total operating expenses, net | 1413281  | 1699354  | 2645230  | 2838522  |
| Loss from operations | (137078)  | (1769975)  | (212989)  | (2026314)  |
| Other income (expenses): |  |  |  |  |
| Other income (expenses)  | 2049  | (2864)  | 16830  | (425971)  |
| Interest income | 791  | 490  | 1179  | 2142  |
| Interest expense - related party | (5544)  | (95842)  | (11096)  | (154591)  |
| Interest expense | (119869)  | (24582)  | (247726)  | (38156)  |
| Total other expenses | (122573)  | (122798)  | (240813)  | (616576)  |
| Loss from operations before income taxes | (259651)  | (1892773)  | (453802)  | (2642890)  |
| Provision for income taxes | -  | -  | -  | -  |
| Net loss  | $(259651)  | $(1892773)  | $(453802)  | $(2642890)  |
| Less: net loss attributable to noncontrolling interest | (41745)  | (723911)  | (114499)  | (1013835)  |
| Net loss attributable to Sunwin Stevia International, Inc. | $(217906)  | $(1168862)  | $(339303)  | $(1629055)  |
| Comprehensive income (loss): |  |  |  |  |
| Net loss | $(259651)  | $(1892773)  | $(453802)  | $(2642890)  |
| Foreign currency translation adjustment | (384704)  | 62183  | (432891)  | 72216  |
| Total comprehensive loss | $(644355)  | $(1830590)  | $(886693)  | $(2570674)  |
| Less: comprehensive loss attributable to noncontrolling interest | (163384)  | (701730)  | (273357)  | (987962)  |
| Comprehensive loss attributable to Sunwin Stevia International, Inc. | $(480971)  | $(1128860)  | $(613336)  | $(1582712)  |
| Earnings per common share attributable to Sunwin Stevia International, Inc.: |  |  |  |  |
| Net loss per common share attributable to Sunwin Stevia International, Inc. - basic and diluted | $(0.00)  | $(0.01)  | $(0.00)  | $(0.01)  |
| Weighted average common shares outstanding - basic and diluted | 199632803  | 199632803  | 199632803  | 199632803  |
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements |

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| | | |
|:---|:---|:---|
| **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** |
| **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **For the Six Months Ended October 31,** | **For the Six Months Ended October 31,** |
|  | **2022** | **2021** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net loss | $(453802)  | $(2642890)  |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| Depreciation and amortization expenses | 651636  | 736823  |
| (Gain) loss on disposition of equipment | (423)  | 386687  |
| Impairment on obsolete inventories | 56435  | 653505  |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable | (1335416)  | 317355  |
| Inventories | 2954200  | 3141942  |
| Prepaid expenses and other current assets | (1294258)  | (3560027)  |
| Accounts payable and accrued expenses | 2835852  | (1488413)  |
| Taxes payable | (51645)  | 9263  |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 3362579  | (2445755)  |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Proceed from disposal of equipment | 4960  | 8028  |
| Purchases of property and equipment | (166497)  | (150258)  |
| Purchases of land use rights | -  | (2055960)  |
| NET CASH USED IN INVESTING ACTIVITIES | (161537)  | (2198190)  |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Proceeds from short term loans | -  | 1008096  |
| Repayment of short term loans | (560128)  | -  |
| Advance from related parties | 2188  | 6302619  |
| Repayment of related party advances | (1779)  | (3541521)  |
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (559719)  | 3769194  |
| EFFECT OF EXCHANGE RATE ON CASH | (188490)  | 7557  |
| NET INCREASE (DECREASE) IN CASH | 2452833  | (867194)  |
| Cash at the beginning of period | 321193  | 1565829  |
| Cash at the end of period | 2774026  | 698635  |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: |  |  |
| Cash paid for income taxes | $-  | $-  |
| Cash paid for interest | $4165  | $4885  |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: |  |  |
| Property and equipment acquired on credit as payable | $1459  | $30773  |
| Accrued interests enrolled into debts | $445319  | $-  |
| Accrued interest payable to related party | $11096  | $171944  |
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements |

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| | | | | |
|:---|:---|:---|:---|:---|
| **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** | **SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** | **CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** | **CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** | **CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** | **CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** |
| **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **For the Three Months Ended** <br> **October 31,** | **For the Three Months Ended** <br> **October 31,** | **For the Six Months Ended** <br> **October 31,** | **For the Six Months Ended** <br> **October 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Total equity, beginning balances | $3189204  | $7388447  | $3486756  | $8128531  |
| Common stock and additional paid-in capital: |  |  |  |  |
| Beginning balances | 47931983  | 47931983  | 47931983  | 47931983  |
| Common stock issued | -  | -  | -  | -  |
| Ending balances | 47931983  | 47931983  | 47931983  | 47931983  |
| Retained Earnings |  |  |  |  |
| Beginning balances | (46388794)  | (43817401)  | (46267397)  | (43357208)  |
| Net loss | (217906)  | (1168862)  | (339303)  | (1629055)  |
| Ending balances | (46606700)  | (44986263)  | (46606700)  | (44986263)  |
| Accumulated other comprehensive income (loss): |  |  |  |  |
| Beginning balances | 5096235  | 5199853  | 5162418  | 5193512  |
| Foreign currency translation adjustment | (207850)  | 40002  | (274033)  | 46343  |
| Ending balances | 4888385  | 5239855  | 4888385  | 5239855  |
| Noncontrolling Interest: |  |  |  |  |
| Beginning balances | (3450220)  | (1925988)  | (3340248)  | (1639756)  |
| Net loss | (41745)  | (723911)  | (114499)  | (1013835)  |
| Accumulated other comprehensive income (loss) | (121640)  | 22181  | (158858)  | 25873  |
| Ending balances | (3613605)  | (2627718)  | (3613605)  | (2627718)  |
| Total equity, ending balances | $2600063  | $5557857  | $2600063  | $5557857  |
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements |

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**SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES**

 **NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**OCTOBER 31, 2022**

**NOTE 1 - ORGANIZATION AND OPERATIONS**

**DESCRIPTION OF BUSINESS**

Sunwin Stevia International, Inc. ("Sunwin Stevia International"), a Nevada corporation, and its subsidiaries are referred to in this report as "we", "us", "our", "Sunwin" or the "Company".

We sell stevioside, a natural sweetener, and other pharmaceutical productions, such as Metformin. Substantially all of our operations are located in the People's Republic of China (the "PRC"). We have built an integrated company with the sourcing and production capabilities designed to meet the needs of our customers. Our operations are organized into two operating segments related to our product lines:

- Stevioside; and <br> - Corporate and other.

For the six months ended October 31, 2022 and fiscal year 2023, our subsidiaries included in operations and discontinued operations consisted of the following:

- Sunwin Stevia International;

- Qufu Natural Green Engineering Co., Ltd. ("Qufu Natural Green"), wholly owned by Sunwin Stevia International;

- Qufu Shengren Pharmaceutical Co., Ltd. ("Qufu Shengren"), 61% owned by Qufu Natural;

- Qufu Shengwang Stevia Biology and Science Co., Ltd. ("Qufu Shengwang"), wholly owned by Qufu Natural Green;

- Sunwin USA, LLC ("Sunwin USA"), wholly owned by Sunwin Stevia International; and

- Qufu Shengren Import and Export Co., Ltd. ("Qufu Shengren Import and Export"), wholly owned subsidiary of Qufu Shengren.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***BASIS OF PRESENTATION***

The accompanying unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. The accompanying unaudited condensed consolidated financial statements for the interim periods presented are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the periods presented. Certain financial statement amounts relating to prior periods have been reclassified to conform to the current period presentation. All intercompany accounts and transactions have been eliminated in consolidation.

These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2022 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the six months ended October 31, 2022 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year.

The condensed consolidated balance sheet as of April 30, 2022 contained herein has been derived from the audited consolidated financial statements as of April 30, 2022, but do not include all disclosures required by the U.S. GAAP.

Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries included in operations and discontinued operations. All intercompany accounts and transactions have been eliminated in consolidation. Qufu Shengwang is the subsidiary with discontinued operations and our subsidiaries for operations include the following:

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-&nbsp;&nbsp;&nbsp;&nbsp; Qufu Natural Green;

-&nbsp;&nbsp;&nbsp;&nbsp; Qufu Shengren;

-&nbsp;&nbsp;&nbsp;&nbsp; Sunwin USA; and

- Qufu Shengren Import and Export

***USE OF ESTIMATES***

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates.

***CASH AND CASH EQUIVALENTS***

Cash includes cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less.

 

***ACCOUNTS RECEIVABLE***

Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. We had no bad debt expense for allowance of doubtful accounts during the six months ended October 31, 2022 and 2021. The balances for allowance of doubtful accounts were $72,090 and $79,886 on October 31, 2022 and April 30, 2022, respectively.

***INVENTORIES***

Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving average method. Adjustments are recorded to write down the carrying amount of any obsolete and excess inventory to its estimated net realizable value. We continually evaluate the recoverability based on assumptions about future customer demand and market conditions. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. In the six months ended October 31, 2022 and 2021, the Company wrote down inventories of $56,435 and $653,505, respectively.

***PROPERTY AND EQUIPMENT***

Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated economic lives of the assets, which range from two to thirty 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. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

The residual value rate and useful life of property and equipment are summarized as follows:

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| | | |
|:---|:---|:---|
| **Property and Equipment** | **Residual value rate** | **Useful life** |
| Office equipment  | 10% or 5% or 0% | 3-15 years |
| Auto and trucks | 10% or 5% or 0% | 2-10 Years |
| Manufacturing equipment  | 10% or 5% or 0% | 2-15 Years |
| Buildings  | 10% or 5% or 0% | 5-30 Years |

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Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use.

***LONG-LIVED ASSETS***

In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment, intangible assets, and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a gain from disposition of property and equipment of $423 in the six months ended October 31, 2022 but we recorded a loss on disposition of property and equipment of $386,687 in the six months ended October 31, 2021.

***LAND USE RIGHTS***

 ****

According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted.

***FAIR VALUE OF FINANCIAL INSTRUMENTS***

We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures.

ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

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| | |
|:---|:---|
| Level 1: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Observable inputs such as quoted market prices in active markets for identical assets or liabilities |
| Level 2: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Observable market-based inputs or unobservable inputs that are corroborated by market data |
| Level 3: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. |

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The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments.

***TAXES PAYABLE***

We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we are charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of October 31, 2022 and April 30, 2022 amounted to $684,759 and $812,545, respectively, consisted primarily of VAT taxes.

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***REVENUE RECOGNITION***

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Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our unaudited condensed consolidated financial statements.

In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. ****The Company determines revenue recognition through the following steps:

• Identify the contract with a customer;

• Identify the performance obligations in the contract;

• Determine the transaction price;

• Allocate the transaction price to the performance obligations in the contract; and

• Recognize revenue when (or as) the entity satisfies a performance obligation.

The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Company's lease revenue is recognized under ASC Topic 842, Leases, ("ASC 842"), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Company's lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as "accounts receivable". The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as "advances from customer". The Company does not offset lease income and lease expense.

***GRANT INCOME***

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Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for.

***INCOME TAXES***

The Company has adopted Accounting Standards Codification subtopic 740-10, *Income Taxes* ("ASC 740-10") which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are recorded to reduce the deferred tax assets to an amount that it is more likely than not be realized.

We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law.

We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of October 31, 2022, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.

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***BASIC AND DILUTED EARNINGS PER SHARE***

Pursuant to ASC Section 260-10-45, basic loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per common share:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **October 31,** | **Three Months Ended**<br> **October 31,** | **Six Months Ended**<br> **October 31,** | **Six Months Ended**<br> **October 31,** |
| **Numerator:**  | **2022** | **2021** | **2022** | **2021** |
| Net Loss attributable to Sunwin Stevia International, Inc. | $(217906)  | $(1168862)  | $(339303)  | $(1629055)  |
| **Denominator:** |  |  |  |  |
| Denominator for basic earnings per share - weighted average number of common shares outstanding | 199632803  | 199632803  | 199632803  | 199632803  |
| Stock awards, options, and warrants | -  | -  | -  | -  |
| Denominator for diluted earnings per share - weighted average number of common shares outstanding | 199632803  | 199632803  | 199632803  | 199632803  |
| **Basic and diluted loss per common share** attributable to Sunwin Stevia International, Inc.**:** |  |  |  |  |
| Net loss per common share - basic and diluted | $(0.00)  | $(0.01)  | $(0.00)  | $(0.01)  |

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***FOREIGN CURRENCY TRANSLATION***

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 ASC Section 830-20-35 and are included in determining net income or loss.

The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss.

RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods:

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| | |
|:---|:---|
| As of October 31, 2022 | RMB 7.30 to $1.00 |
| As of April 30, 2022 | RMB 6.59 to $1.00 |
| Six months ended October 31, 2022 | RMB 6.85 to $1.00 |
| Six months ended October 31, 2021 | RMB 6.45 to $1.00 |

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***COMPREHENSIVE LOSS***

&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three and six months ended October 31, 2022 and 2021 included net loss and unrealized gains (loss) from foreign currency translation adjustments.

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***RESEARCH AND DEVELOPMENT***

Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $769,184 and $792,367 for the three months ended October 31, 2022 and 2021, and $1,204,752 and $1,148,080 for the six months ended October 31, 2022 and 2021, respectively.

***SHIPPING COSTS***

Shipping costs are included in selling expenses and totaled $18,259 and $29,927 for the three months ended October 31, 2022 and 2021, and $42,511 and $50,088 for the six months ended October 31, 2022 and 2021, respectively.

***SEGMENT REPORTING***

The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment.

***RECENT ACCOUNTING PRONOUNCEMENTS***

In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting company. For all other entities, the requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 has been amended by ASU 2019-04, ASU 2019-05, and ASU 2019-11. For entities that have not yet adopted ASU No. 2016-13, the effective dates and transition methodology for ASU 2019-04, ASU 2019-05, and ASU 2019-11 are the same as the effective dates and transition methodology in ASU 2016-13. The Company did not adopt this standard yet due to the status of smaller reporting company. We plan to adopt this standard for the year beginning May 1, 2023. We do not expect the adoption of this standard will have material impact on our consolidated financial statements.

A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements.

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***GOING CONCERN***

Our unaudited condensed consolidated financial statements have been prepared assuming we will continue as a going concern. The Company has incurred recurring losses with a net loss of approximately $260,000 and $454,000 for the three and six months ended October 31, 2022 and has a significant accumulated deficit of $46.6 million as of October 31, 2022. The Company's cash balance and revenues generated are not currently sufficient and cannot be projected to cover operating expenses for the next twelve months from the date of this report. These factors raise doubt as to the ability of the Company to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. Management intends to make every effort to identify and develop sources of funds. The outcome of these matters cannot be predicted at this time. There can be no assurance that any additional financings will be available to the Company on satisfactory terms and conditions, if at all.

The ability of the Company to continue as a going concern is dependent upon its ability to achieve profitable operations and raise additional capital. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amount or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

**NOTE 3 - NONCONTROLLING INTEREST**

Noncontrolling interest on the consolidated balance sheets resulted from the consolidation of Shengren, a 61.3% owned subsidiary starting from April 30, 2020. An individual investor and Shandong Yulong Mining Group Co., Ltd. ("Yulong") hold 38.4% and 0.3% of the equity interest in Shengren effective at the end of date, April 30, 2020, respectively, pursuant to a series of debt transfer and conversion agreements entered into on April 30, 2020 between seven individual creditors and three suppliers, an individual investor with Yulong and Qufu Shengren. Noncontrolling interest amounted to a deficit of $3,613,605 and $3,340,248 as of October 31, 2022 and April 30, 2022.

**NOTE 4 - INVENTORIES**

As of October 31, 2022 and April 30, 2022, inventories consisted of the following:

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| | | |
|:---|:---|:---|
|  | **October 31,** <br> **2022** | **April 30,** <br> **2022** |
| Raw materials | $1074444  | $2417724  |
| Work in process | 217459  | 1029797  |
| Finished goods | 902540  | 2116523  |
| Inventories, gross | 2194443  | 5564044  |
| Less: reserve for obsolete inventory | -  | -  |
| **Inventories, net**  | **$** **2194443**  | **$** **5564044**  |

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In the three months ended October 31, 2022 and 2021, the Company wrote down inventories of $nil and $465,801, respectively. In the six months ended October 31, 2022 and 2021, the Company wrote down the obsolete inventories of $56,435 and $653,505, respectively. As a result, the Company had no reserve of obsolete inventories as of October 31, 2022 and April 30, 2022, respectively.

**NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS**

Prepaid expenses and other current assets as of October 31, 2022 and April 30, 2022 totaled $3,711,037 and $2,765,819, respectively. As of October 31, 2022, prepaid expenses and other current assets includes $2,456,119 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, and $1,254,918 for business related employees' advances and advances to the third party. As of April 30, 2022, prepaid expenses and other current assets includes $1,510,032 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $1,255,787 for business related employees' advances and advances to the third party.

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**NOTE 6 - PROPERTY AND EQUIPMENT**

As of October 31, 2022 and April 30, 2022, property and equipment consisted of the following:

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| | | |
|:---|:---|:---|
|  | **October 31,** <br> **2022** | **April 30,** <br> **2022** |
| Office equipment  | $420808 | $434867  |
| Auto and trucks  | &nbsp;&nbsp;&nbsp;&nbsp;517964  | 581314  |
| Manufacturing equipment  | &nbsp;&nbsp;&nbsp;&nbsp;5925285  | 6481114  |
| Buildings  | &nbsp;&nbsp;&nbsp;&nbsp;8529981 | 9452467  |
| Construction in process  | &nbsp;&nbsp;&nbsp;&nbsp;15521  | 17200  |
| Property and equipment, gross | &nbsp;&nbsp;&nbsp;&nbsp;15409559  | 16966962  |
| Less: accumulated depreciation  | &nbsp;&nbsp;&nbsp;&nbsp;(9137445) | (9481229)  |
| **Property and equipment, net**  | **$6272114**  | **$** **7485733**  |

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For the three months ended October 31, 2022 and 2021, depreciation expense totaled $311,353 and $336,757, of which $268,037 and $285,439 were included in cost of revenues, respectively, and remainder was included in operating expenses. For the six months ended October 31, 2022 and 2021, depreciation expense totaled $621,883 and $705,193, of which $532,156 and $599,172 were included in cost of revenues, respectively, and remainder was included in operating expenses. Depreciation is not taken during the period of construction or equipment installation. Upon completion of the installation of manufacturing equipment or any construction in progress, construction in progress balances will be classified to their respective property and equipment category.

**NOTE 7 – LAND USE RIGHTS**

As of October 31, 2022 and April 30, 2022, land use rights consisted of the following:

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| | | |
|:---|:---|:---|
| **(Estimated Life)** | **October 31,** <br> **2022** | **April 30,** <br> **2022** |
| Land use rights (33 Years) | 1815749  | 2012115  |
| Less: accumulated amortization | (83804) | (61911)  |
| **Land use rights, net**  | **1731945**  | **1950204**  |

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For the three months ended October 31, 2022 and 2021, amortization expense amounted to $14,551 and $15,805, and for the six months ended October 31, 2022 and 2021, amortization expense amounted to $29,753 and $31,630, respectively.

**NOTE 8 - RELATED PARTY TRANSACTIONS**

Related parties of the Company consist of the following:

-Mr. Weidong Chai, a legal representative of Qufu Natural Green;

-Shandong Shengwang Pharmaceutical Co., Ltd. ("Pharmaceutical Corporation"), a Chinese limited liability company of which Mr. Chai is the Chairman;

-Mr. Laiwang Zhang, former Chairman of the Board of the Company, who resigned on September 7, 2021; and

-Qufu Shengwang Import and Export Co., Ltd. ("Qufu Shengwang Import and Export"), a Chinese limited liability company, controlled by Mr. Laiwang Zhang. Due to recent changes in management personnel, Qufu Shengwang Import and Export is no longer considered a related party, and transactions with Qufu Shengwang Import and Export have been reclassified to third party transactions in fiscal 2022.

***Due to related parties***

The Company mainly finances its operations through proceeds borrowed from related parties. As of October 31, 2022 and April 30, 2022, due to related parties consisted the following:

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| | | |
|:---|:---|:---|
|  | **October 31,**<br>**2022** | **April 30,**<br>**2022** |
| Pharmaceutical Corporation | $4191000  | $4646092  |
| Weidong Chai | 225504  | 236070  |
| **Total** | **$** **4416504**  | **$** **4882162**  |

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On September 23, 2019, the Company borrowed a one-year loan of RMB1,221,000 (approximately $167,000) from Weidong Chai, bearing an annual interest rate of 10%. On September 23, 2022, 2021 and 2020, the parties extended the loan for another year, under the same terms and conditions, reclassified unpaid interest payable to the principal of this loan, resulting in an increase of principal from RMB1,221,000 (approximately $167,000) to RMB1,625,150 (approximately $223,000).

**NOTE 9 - OPERATING LEASE**

The Company leased Metformin production line including buildings, manufacturing equipment and construction in process to the third party lessee for five years, effective July 10, 2019. The lessee paid a lease deposit of RMB1,000,000 (approximately $137,000) as guarantee and annual lease fee of RMB3,000,000 (approximately $411,000). The Company recorded revenues of $98,185 and $106,647 from this operating lease in the three months ended October 31, 2022 and 2021, and the Company recorded revenues of $200,765 and $213,429 from this operating lease in the six months ended October 31, 2022 and 2021.

**NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

Accounts payable and accrued expenses included the following as of October 31, 2022 and April 30, 2022:

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| | | |
|:---|:---|:---|
| **Account** | **October 31,**<br> **2022** | **April 30,**<br> **2022** |
| Accounts payable | $9523873  | $7945913  |
| Advanced from customers | 291513  | 121183  |
| Advanced from third parties\* | 753811  | 1208900  |
| Accrued salary payable | 153679  | 101829  |
| Tax payable | 684759  | 812545  |
| Other payable\*\* | 1874396  | 2024868  |
| **Total accounts payable and accrued expenses** | **$** **13282031**  | **$** **12215238**  |

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\* Advanced from third parties for working capital, bearing interest free and due on demands.

\*\* As of October 31, 2022, other payables consists of general liability, worker's compensation, and medical insurance payable of $358,648, consulting fee payable of $185,902, union and education fees payable of $121,325, interest payables for short-term loans of $297,456, safety production fund payable of $627,919, advances from the employees of $126,815, security deposit for sub-contractor of $136,971 and other miscellaneous payables of $19,360. As of April 30, 2022, other payables consists of general liability, worker's compensation, and medical insurance payable of $428,773, consulting and service fee payable of $206,007, union and education fees payable of $134,598, interest payables for short-term loans of $366,249, safety production fund payable of $627,138, advances from the employees of $106,253, deposit for operating lease of $151,784 and other miscellaneous payables of $4,066.

**NOTE 11 -LOAN PAYABLE**

***Short-term loan payable***

Short-term loans are obtained from various individual lenders that are due within one year for working capital purpose. These loans are unsecured and can be renewed with 10 days advance notice prior to maturity date and accrued interest converted into debt principal. As of October 31, 2022 and April 30, 2022, short-term loans consisted of the following:

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| | | |
|:---|:---|:---|
|  | **October 31,**<br> **2022** | **April 30,**<br> **2022** |
| Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2023, with an annual interest rate of 10%, renewed on October 6, 2022. | $30134  | $33393  |
| Loan from Jianjun Yan, due on October 6, 2023, with an annual interest rate of 10%, renewed on October 7, 2022.  | 1614802  | 1626763  |
| Loan from Jianjun Yan, due on April 18, 2023, with annual interest rate of 4%, renewed on April 19, 2022 for the term of one year.  | 121494  | 134633  |
| Multiple loans from Jianjun Yan, due from May 13, 2023 to August 22, 2023, with annual interest rate of 12%, sign on period from May 14, 2022 to August 23, 2022. Partially repaid RMB2,165,000 ($315851) in the six months ended October 31, 2022. | 1206676  | 1490521  |
| Loan from Junzhen Zhang, non-related individual, due on October 5, 2023, with an annual interest rate of 10%, renewed on October 6, 2022. | 29169  | 29385  |
| Loan from Junzhen Zhang, non-related individual, due on November 30, 2023, with an annual interest rate of 10%, signed on December 1, 2022. | 21094  | 23375  |
| Multiple loans from Jian Chen, non-related individual, due from May 20, 2023 to November 14, 2023, with an annual interest rate of 12%, signed from May 21, 2022 to November 15, 2022. | 1069644  | 1066928  |
| Loan from Qing Kong, non-related individual, due on March 6, 2023, with an annual interest rate of 10%, renewed on March 7, 2022. | 96126  | 106522  |
| Loan from Qing Kong, non-related individual, due on January 8, 2023, with an annual interest rate of 10%, renewed on January 9, 2022. | 40108  | 44445  |
| Loan from Guihai Chen, non-related individual, due on March 9, 2023, with an annual interest rate of 10%, renewed on March 10, 2022. | 24032  | 26631  |
| Loan from Guihai Chen, non-related individual, due on September 20, 2023, with an annual interest rate of 10%, renewed on September 21, 2022. | 40108  | 40405  |
| Loan from Weifeng Kong, non-related individual, due on November 28, 2023, with an annual interest rate of 10%, renewed on November 29, 2022. | 27394  | 30357  |
| Loan from Guohui Zhang, non-related individual, due on January 16, 2022, with an annual interest rate of 4% signed on January 17, 2021. | -  | 254148  |
| **Total short-term loan payable** | **$** **4320781**  | **$** **4907506**  |

---

For the three and six months ended October 31, 2022 and 2021, interest expense related to short-term loans amounted to $119,869 and $24,582, and $247,726 and $38,156, respectively, which were included in interest expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss.

**NOTE 12 - SEGMENT INFORMATION**

The following information is presented in accordance with ASC Topic 280, "Segment Reporting", for the three and six months ended October 31, 2022 and 2021; we accounted for two reportable business segments - (1) natural sweetener (stevioside), and (2) corporate and other pharmaceutical. Our reportable segments are strategic business units that offer different products and are managed separately based on the fundamental differences in their operations. Condensed financial information with respect to these reportable business segments for the three and six months ended October 31, 2022 and 2021 is as follows:

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended October 31,** | **Three Months Ended October 31,** | **Six Months Ended October 31,** | **Six Months Ended October 31,** |
|  | **2022** | &nbsp;&nbsp;&nbsp;&nbsp;**2021** | **2022** | **2021** |
| Revenues: |  |  |  |  |
| Stevioside  | $7305077  | $10001477  | $14912400 | $16163155  |
| Corporate and other  | &nbsp;&nbsp;&nbsp;&nbsp;98185 | 106647  | 200765  | 213429  |
| Total segment and consolidated revenues | **$** **7403262**  | **$** **10108124**  | **$** **15113165**  | **$** **16376584**  |
| Interest expense: |  |  |  |  |
| Stevioside | $(124622)  | $(119934)  | $(257643)  | $(190605)  |
| Corporate and other | -  | -  | -  | -  |
| Total segment and consolidated interest expense | **$** **(124622)**  | **$** **(119934)**  | **$** **(257643)**  | **$** **(190605)**  |
| Depreciation and amortization: |  |  |  |  |
| Stevioside | $281571  | $312038  | $573745  | $623881  |
| Corporate and other | &nbsp;&nbsp;&nbsp;&nbsp;37537 | 56349  | 77891  | 112942  |
| Total segment and consolidated depreciation and amortization | **$319108** | **$** **368387**  | **$651636** | **$** **736823**  |
| Income (loss) from operations before income taxes: |  |  |  |  |
| Stevioside | $(318921)  | $(1941725)  | $(573852)  | $(2753962)  |
| Corporate and other | 59270  | 48952  | 120050  | 111072  |
| Total loss from operations before income taxes | **$** **(259651)**  | **$** **(1892773)**  | **$** **(453802)**  | **$** **(2642890)**  |

---

---

| | | |
|:---|:---|:---|
|  | **October 31,**<br>**2022** | **April 30,**<br>**2022** |
| Segment property and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stevioside | $4873051  | $5854328  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other | 1399063  | 1631405  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment | **$** **6272114**  | **$** **7485733**  |

---

**NOTE 13 - CONCENTRATIONS AND CREDIT RISK**

***(i) Customer Concentrations***

For the three and six months ended October 31, 2022 and 2021, customers accounting for 10% or more of the Company's revenue were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended October 31,  | For the three months ended October 31,  | For the six months ended October 31, | For the six months ended October 31, |
| Customer | **2022** | **2021** | **2022** | **2021** |
| A  | 44.4%  | 39.7%  | 47.7%  | 39.0%  |
| B | -  | 18.5%  | -  | 11.5%  |

---

***(ii) Vendor Concentrations***

For the three and six months ended October 31, 2022 and 2021, suppliers accounting for 10% or more of the Company's purchase were as follows:

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended October 31, | For the three months ended October 31, | For the six months ended October 31, | For the six months ended October 31, |
| Supplier | **2022** | **2021** | **2022** | **2021** |
| A | -  | 40.5%  | 29.3%  | 53.6%  |
| B | -  | -  | -  | 13.6%  |
| C | 25.0%  | -  | -  | -  |
| D | 20.6%  | -  | -  | -  |
| E | 18.9%  | -  | -  | -  |
| F | 14.6%  | -  | -  | -  |

---

***-***Less than 10%.

 ****

***(iii) Credit Risk***

Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. As of October 31, 2022 and April 30, 2022, we had $2,707,425 and $293,408 of cash balance held in PRC banks, respectively. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $68,000). As a result, cash held in PRC financial institutions of $2,548,462 and $119,250 are not insured as of October 31, 2022 and April 30, 2022. We have not experienced any losses in such accounts through October 31, 2022. Our cash position by geographic area was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Country: | **October 31, 2022** | **October 31, 2022** | **April 30, 2022** | **April 30, 2022** |
| United States | $59918 | 2.2%  | $18033  | 5.6%  |
| China | &nbsp;&nbsp;&nbsp;&nbsp;2714108 | 97.8%  | 303160  | 94.4%  |
| Total cash and cash equivalents | $2774026 | 100.00%  | $321193  | 100.00%  |

---

Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk.

**NOTE 14 - SUBSEQUENT EVENTS**

The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Based on our evaluation, no other event has occurred requiring adjustment or disclosure in the notes to the consolidated financial statements.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion should be read in conjunction with the information contained in the preceding unaudited condensed consolidated financial statements and footnotes and our 2022 Annual Report on Form 10-K for fiscal year ended April 30, 2022.

**OVERVIEW**

We sell stevioside, a natural sweetener. 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 production and distribution capabilities designed to meet the needs of our customers.

Our operations were organized in two operating segments related to our product lines:

- Stevioside, and <br> - Corporate and other.

**Going Concern**

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has a significant accumulated deficit and incurred recurring losses. The Company's cash balance and revenues generated are not currently sufficient and cannot be projected to cover operating expenses for the next twelve months from the date of this report. These factors raise doubt as to the ability of the Company to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. Management intends to make every effort to improve its current sales forecast to further develop and expand the international markets for its new products as well as continuing with the current sources of funds to meet working capitals needs on as needed basis. There can be no assurance that these plans and arrangements will be successful.

The ability of the Company to continue as a going concern is dependent upon its ability to achieve profitable operations and raise additional capital. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amount or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

**Recent Developments**

Consequently, the COVID-19 pandemic may adversely affect the Company's business operations, financial condition and operating results for 2023, 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 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 2023.

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 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. 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.

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**OUR PERFORMANCE**

Our revenues totaled approximately $7,403,000 during the three months ended October 31, 2022, a decrease of 26.8%, as compared with the same period in 2021, and our gross margin increased to 17.2% from (0.7)%. Our total operating expenses in the three months ended October 31, 2022 decreased by approximately $286,000, or 16.8% compared to the same period in 2021 primarily due to a decrease of approximately $121,000, or 31.9% in selling expense, a decrease of approximately $142,000, or 26.9% in general and administrative expense and a decrease of approximately $23,000, or 2.9% in research and development expenses. Our net loss for the three months ended October 31, 2022 was approximately $260,000, compared to a net loss $1,893,000 in the same period in 2021.

Our revenues totaled approximately $15,113,000 during the six months ended October 31, 20221, a decrease of 7.7%, as compared with the same period in 2021, and our gross margin increased to 16.1% from 5.0%. Our total operating expenses in the six months ended October 31, 2022 decreased by approximately $193,000, or 6.8% compared to the same period in 2021 primarily due to a decrease of approximately $91,000, or 12.1% in selling expense, a decrease of approximately $159,000, or 16.9% in general and administrative expense, and offset by an increase of approximately $57,000, or 4.9% in research and development expenses. Our net loss for the six months ended October 31, 2022 was approximately $454,000, compared to a net loss of $2,643,000 in six months ended October 31, 2021.

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 we hope that our sales volume in higher grade stevia products will increase in fiscal 2023 as demand resumes and increases after the effects of the global pandemic. Stevia has become more widely accepted by the food industry and many new stevia manufacturers have entered this industry in the past few years; recently we have introduced a new product line. We are now focusing on new types of stevia products, including tablets, liquid, High A 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, 2023 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 that, 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.

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

---

| |
|:---|
| 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, 2023 and 2022, as well as negative impact from the global COVID-19 pandemic. During the fiscal years ended April 30, 2022, 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 2023. We anticipate the price of stevia leaves, the raw material used to produce our stevioside series products, will also continue to increase in fiscal 2023 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 from operations for the three month periods ended October 31, 2022 and 2021. The percentages represent each line item as a percent of revenues:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Three Months ended October 31, 2022** | **For the Three Months ended October 31, 2022** | **For the Three Months ended October 31, 2022** | **For the Three Months ended October 31, 2022** | **For the Three Months ended October 31, 2022** | **For the Three Months ended October 31, 2022** | **For the Three Months ended October 31, 2022** |
|  | **Stevioside** | **Stevioside** | **Corporate and Other** | **Corporate and Other** | **Consolidated** | **Consolidated** |
| Revenues | $7305077  | 100.0%  | $98185 | 100.0%  | $7403262  | 100.0%  |
| Cost of goods sold | &nbsp;&nbsp;&nbsp;&nbsp;6088144  | 83.3%  | &nbsp;&nbsp;&nbsp;&nbsp;38915 | 39.6%  | &nbsp;&nbsp;&nbsp;&nbsp;6127059  | 82.8%  |
| Gross profit | &nbsp;&nbsp;&nbsp;&nbsp;1216933  | 16.7%  | &nbsp;&nbsp;&nbsp;&nbsp;59270 | 60.4%  | &nbsp;&nbsp;&nbsp;&nbsp;1276203  | 17.2%  |
| Selling expenses | &nbsp;&nbsp;&nbsp;&nbsp;258753  | 3.5%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;258753  | 3.5%  |
| General and administrative expenses | &nbsp;&nbsp;&nbsp;&nbsp;385344  | 5.3%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;385344  | 5.2%  |
| Research and development expenses | &nbsp;&nbsp;&nbsp;&nbsp;769184  | 10.5%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;769184  | 10.4%  |
| (Loss) income from operations | &nbsp;&nbsp;&nbsp;&nbsp;(196348) | (2.6)%  | &nbsp;&nbsp;&nbsp;&nbsp;59270 | 60.4%  | &nbsp;&nbsp;&nbsp;&nbsp;(137078) | (1.9)%  |
| Other expenses | &nbsp;&nbsp;&nbsp;&nbsp;(122573) | (1.7)%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;(122573) | (1.7)%  |
| (Loss) income from operations before income taxes | $(318921) | (4.3)%  | $59270 | 60.4%  | $(259651) | (3.6)%  |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Three Months ended October 31, 2021** | **For the Three Months ended October 31, 2021** | **For the Three Months ended October 31, 2021** | **For the Three Months ended October 31, 2021** | **For the Three Months ended October 31, 2021** | **For the Three Months ended October 31, 2021** | **For the Three Months ended October 31, 2021** |
|  | **Stevioside** | **Stevioside** | **Corporate and Other** | **Corporate and Other** | **Consolidated** | **Consolidated** |
| Revenues | $10001477  | 100.0%  | $106647 | 100.0%  | $10108124  | 100.0%  |
| Cost of goods sold | &nbsp;&nbsp;&nbsp;&nbsp;10121030  | 101.2%  | &nbsp;&nbsp;&nbsp;&nbsp;57715 | 54.1%  | &nbsp;&nbsp;&nbsp;&nbsp;10178745  | 100.7%  |
| Gross (loss) profit | &nbsp;&nbsp;&nbsp;&nbsp;(119553  |)(1.2)%  | &nbsp;&nbsp;&nbsp;&nbsp;48932 | 45.9%  | &nbsp;&nbsp;&nbsp;&nbsp;(70621)  | (0.7)%  |
| Selling expenses | &nbsp;&nbsp;&nbsp;&nbsp;379977  | 3.8%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;379977  | 3.8%  |
| General and administrative expenses | &nbsp;&nbsp;&nbsp;&nbsp;527010  | 5.3%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;527010  | 5.2%  |
| Research and development expenses | &nbsp;&nbsp;&nbsp;&nbsp;792367  | 7.9%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;792367  | 7.8%  |
| (Loss) income from operations | &nbsp;&nbsp;&nbsp;&nbsp;(1818907) | (18.2)%  | &nbsp;&nbsp;&nbsp;&nbsp;48932 | 45.9%  | &nbsp;&nbsp;&nbsp;&nbsp;(1769975) | (17.5)%  |
| Other (expenses) income | &nbsp;&nbsp;&nbsp;&nbsp;(122818) | (1.2)%  | &nbsp;&nbsp;&nbsp;&nbsp;20 | 0.0%  | &nbsp;&nbsp;&nbsp;&nbsp;(122798) | (1.2)%  |
| (Loss) income from operations before income taxes | $(1941725) | (19.4)%  | $48952 | 45.9%  | $(1892773) | (18.7)%  |

---

The following table summarizes our results from operations for the six month periods ended October 31, 2022 and 2021.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Six Months ended October 31, 2022** | **For the Six Months ended October 31, 2022** | **For the Six Months ended October 31, 2022** | **For the Six Months ended October 31, 2022** | **For the Six Months ended October 31, 2022** | **For the Six Months ended October 31, 2022** | **For the Six Months ended October 31, 2022** |
|  | **Stevioside** | **Stevioside** | **Corporate and Other** | **Corporate and Other** | **Consolidated** | **Consolidated** |
| Revenues | $14912400  | 100.0%  | $200765 | 100.0%  | $15113165  | 100.0%  |
| Cost of goods sold | &nbsp;&nbsp;&nbsp;&nbsp;12600239 | 84.5%  | &nbsp;&nbsp;&nbsp;&nbsp;80685 | 40.2%  | &nbsp;&nbsp;&nbsp;&nbsp;12680924  | 83.9%  |
| Gross profit | &nbsp;&nbsp;&nbsp;&nbsp;2312161  | 15.5%  | &nbsp;&nbsp;&nbsp;&nbsp;120080 | 59.8%  | &nbsp;&nbsp;&nbsp;&nbsp;2432241  | 16.1%  |
| Selling expenses | &nbsp;&nbsp;&nbsp;&nbsp;658220  | 4.4%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;658220  | 4.4%  |
| General and administrative expenses | &nbsp;&nbsp;&nbsp;&nbsp;782228  | 5.2%  | &nbsp;&nbsp;&nbsp;&nbsp;30 | 0.0%  | &nbsp;&nbsp;&nbsp;&nbsp;782258  | 5.2%  |
| Research and development expenses | &nbsp;&nbsp;&nbsp;&nbsp;1204752  | 8.1%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;1204752  | 8.0%  |
| (Loss) income from operations | &nbsp;&nbsp;&nbsp;&nbsp;(333039) | (2.2)%  | &nbsp;&nbsp;&nbsp;&nbsp;120050 | 59.8%  | &nbsp;&nbsp;&nbsp;&nbsp;(212989) | (1.5)%  |
| Other expenses | &nbsp;&nbsp;&nbsp;&nbsp;(240813) | (1.6)%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;(240813) | (1.6)%  |
| (Loss) income from operations before income taxes | $(573852) | (3.8)%  | $120050 | 59.8%  | $(453802) | (3.1)%  |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Six Months ended October 31, 2021** | **For the Six Months ended October 31, 2021** | **For the Six Months ended October 31, 2021** | **For the Six Months ended October 31, 2021** | **For the Six Months ended October 31, 2021** | **For the Six Months ended October 31, 2021** | **For the Six Months ended October 31, 2021** |
|  | **Stevioside**  | **Stevioside**  | **Corporate and Other** | **Corporate and Other** | **Consolidated**  | **Consolidated**  |
| Revenues | $16163155  | 100.0%  | $213429 | 100.0%  | $16376584  | 100.0%  |
| Cost of goods sold | &nbsp;&nbsp;&nbsp;&nbsp;15461999  | 95.7%  | &nbsp;&nbsp;&nbsp;&nbsp;102377 | 48.0%  | &nbsp;&nbsp;&nbsp;&nbsp;15564376  | 95.0%  |
| Gross profit | &nbsp;&nbsp;&nbsp;&nbsp;701156  | 4.3%  | &nbsp;&nbsp;&nbsp;&nbsp;111052 | 52.0%  | &nbsp;&nbsp;&nbsp;&nbsp;812208  | 5.0%  |
| Selling expenses | &nbsp;&nbsp;&nbsp;&nbsp;748789  | 4.6%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;748789  | 4.6%  |
| General and administrative expenses | &nbsp;&nbsp;&nbsp;&nbsp;941653  | 5.8%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;941653  | 5.7%  |
| Research and development expenses | &nbsp;&nbsp;&nbsp;&nbsp;1148080  | 7.1%  | &nbsp;&nbsp;&nbsp;&nbsp;- | -  | &nbsp;&nbsp;&nbsp;&nbsp;1148080  | 7.0%  |
| (Loss) income from operations | &nbsp;&nbsp;&nbsp;&nbsp;(2137366) | (13.2)%  | &nbsp;&nbsp;&nbsp;&nbsp;111052 | 52.0%  | &nbsp;&nbsp;&nbsp;&nbsp;(2026314) | (12.3)%  |
| Other (expenses) income | &nbsp;&nbsp;&nbsp;&nbsp;(616596) | (3.8)%  | &nbsp;&nbsp;&nbsp;&nbsp;20 | 0.0%  | &nbsp;&nbsp;&nbsp;&nbsp;(616576) | (3.8)%  |
| (Loss) income from operations before income taxes | $(2753962) | (17.0)%  | $111072 | 52.0%  | $(2642890) | (16.1)%  |

---

**Revenues**

Total revenues in the three months ended October 31, 2022 decreased by approximately 26.8%, as compared to the same period in 2021, primarily due to a decreasing demand from domestic and international markets during COVID-19 pandemic. Our Stevioside segment, revenues from sales decreased by 27.0%, from 98.9% to 98.7% of our total revenues in the three months ended October 31, 2022. We sold 204 metric tons and 359 metric tons of stevioside for the three months ended October 31, 2022 and 2021, respectively.

Total revenues in the six months ended October 31, 2022 decreased by 7.7% as compared to the same period in 2021. Stevioside revenues, accounts for 98.7% of our total revenues both in the six months ended October 31, 2022 and 2021, respectively. During the six months ended October 31, 2022, within our Stevioside segment, our sales volume decreased by approximately 105 metric tons, from 573 metric tons to 468 metric tons, a 18.2% decrease.

Our products including enzyme treated stevia have been well accepted by the market, especially in the U.S. We generated approximately $2,237,000 and $5,186,000 in revenue from producing over 69 metric tons and 162 metric tons of the customized orders for restructuring by enzyme based on our Stevioside products which accounted for approximately 32.3% and 34.8% of our total revenues of Stevioside segment in the three and six months ended October 31, 2022, respectively. With the restructuring of our product line, we also continue to increase the sales of our low grade stevia products. Our A3-98 product amounted 22.2% and 13.3% of total revenue of our Stevioside segment for three and six months ended October 31, 2022, respectively.

**Cost of Revenues and Gross Margin**

Cost of revenues in the three and six months ended October 31, 2022 decreased by 39.8% and 18.5%, compared to the same period in 2021, respectively. Cost of revenues as a percentage of revenues decreased from 100.7% and 95.0% to 82.8% and 83.9% during the three and six months ended October 31, 2022 compared to the same period in 2021, respectively. Gross margin in Stevioside segment increased from (1.2)% to 16.7% for the three months ended by October 31, 2022, compared the same period in 2021. Gross margin in Stevioside segment increased from 4.3% to 15.5% for the six months ended by October 31, 2022, compared the same period in 2021, which was primarily due improvements in the management of our production process, we were able to operate with better efficiency and reduce the cost of production, as well as an increase in our sales prices.

Our unit sale price fluctuated from month to month in the three and six months ended October 31, 2022, which was mainly affected by the market environment; the average unit sales price of our stevia products has increased for the three and six months ended October 31, 2022, as compared to the same period in 2021. 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. We also anticipate the price of stevia leaves, the raw material used to produce our stevioside series products, to continue to increase in the near future. In the six months ended October 31, 2022, some of our stevia products, such as A3-95 and A3-80, were sold for a loss in order to avoid further losses resulting from spoilage of overstocked inventory.

------

We believe the effect of the COVID-19 pandemic is the 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 2023. 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 transportation has also made it difficult for us to efficiently procure our raw materials.

**Selling Expenses**

For the three months ended October 31, 2022, we had a decrease of approximately $121,000, or 31.9% in selling expenses, as compared to the same period in 2021. The decrease was primarily due to the approximately $107,000 decrease in promotion and marketing expenses, $31,000 decrease in commission expenses, $12,000 decrease in shipping and freight and $2,000 decrease in hospitality expenses, offset by $23,000 increase in office expenses and $8,000 increase in local sales taxes in the three months ended October 31, 2022.

For the six months ended October 31, 2022, we had a decrease of approximately $91,000, or 12.1% in selling expenses, as compared to the same period in 2021. The decrease was primarily due to the approximately $121,000 decrease in promotion and marketing expenses, $24,000 decrease in commission expenses, $20,000 decrease in travel expenses, $8,000 decrease in shipping and freight and $2,000 decrease in hospitality expenses, offset by $63,000 increase in local sales taxes and $21,000 increase in salary expenses in the six months ended October 31, 2022.

**General and Administrative Expenses**

Our general and administrative expenses for the three months ended October 31, 2022 decreased by approximately $142,000, or 26.9% from the same period in 2021. The decrease was primarily due to a decrease of approximately $78,000 in repairs and maintenance fees, $3,000 decrease in consulting service and auditing fees, $26,000 decrease in hospitality expenses, $11,000 decrease in travel expenses, $34,000 decrease in salary expenses and $23,000 decrease in safety production fund, offset by an increase of approximately $7,000 increase in office expenses and $26,000 increase in miscellaneous expense in the three months ended October 31, 2022.

Our general and administrative expenses for the six months ended October 31, 2022 decreased by approximately $159,000, or 16.9% from the same period in 2021. The decrease was primarily due to a decrease of approximately $76,000 in repairs and maintenance fees, $11,000 decrease in consulting service and auditing fees, $31,000 decrease in hospitality expenses, $13,000 decrease in travel expenses, $38,000 decrease in salary expenses and $15,000 decrease in safety production fund, offset by an increase of approximately $19,000 increase in office expenses and $6,000 increase in miscellaneous expense in the six months ended October 31, 2022.

**Research and Development Expenses**

For the three and six months ended October 31, 2022, our research and development expenses amounted to approximately $769,000 and $1,205,000, respectively, as compared to $792,000 and $1,148,000 for the same period in 2021. The changes were primarily due to the changes in materials used for R&D purpose in the three and six months ended October 31, 2022.

 **Other Income (Expenses)**

For the three months ended October 31, 2022 and 2021, other expense, net of other income, amounted to approximately $123,000, respectively. For the six months ended October 31, 2022, other expense, net of other income, amounted to approximately $241,000, a decrease of $376,000 as compared to the other expense, net of other income, amounted to approximately $617,000 for the six months ended October 31, 2021. The decrease of other expenses was primarily attributable to a decrease in other expenses of $443,000 attributable to a loss on disposition of property and equipment in the six months ended October 31, 2021, and a decrease of approximately $143,000 in interest expense to related parties, offset by a decrease of $1,000 in interest income and an increase of $210,000 in interest expense to third parties.

------

**Net Loss** 

As a result of the foregoing, our loss amounted $260,000 and $454,000 for the three and six months ended October 31, 2022, as compared with net loss of $1,893,000 and $2,643,000 for the three and six months ended October 31, 2021, respectively, a decrease of $1,633,000, or 86.3% and a decrease of $2,189,000, or 82.8%. The decrease in net loss was primarily due to decreased operating expenses and decreased other expenses, as well as increased gross profit in the three and six months ended October 31, 2022, compared to the three and six months ended October 31, 2021.

**Net Loss Attributable to Sunwin Stevia International, Inc.**

Our net loss attributable to Sunwin Stevia International, Inc. in the three and six months ended October 31, 2022 was approximately $218,000 and $339,000, or $(0.00) and (0.00) per share (basic and diluted), compared to $1,169,000 and $1,629,000, or $(0.01) and (0.01) per share (basic and diluted), in the three and six months ended October 31, 2021.

**Net Loss Attributable to Noncontrolling Interest**

Noncontrolling interest represents the ownership interests an individual investor and Shangdong Yulong Mining Group Co., Ltd. ("Yulong") hold in Qufu Shengren. The amount recorded as noncontrolling interest in our unaudited condensed consolidated statements of loss and comprehensive loss is computed by multiplying the after-tax loss by 38.7%, the percentage ownership in Qufu Shengren not directly attributable to us. Net loss attributable to noncontrolling interest amounted to $42,000 and $114,000 for the three and six months ended October 31, 2022, compared to net loss attributable to noncontrolling interest of $724,000 and $1,014,000 for the three and six months ended October 31, 2021.

**Foreign Currency Translation 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 loss on the unaudited condensed consolidated statements of operations and comprehensive loss. As a result of foreign currency translations attributable to Sunwin Stevia International, Inc., which are a non-cash adjustment, we reported a foreign currency translation loss of $208,000 and $274,000 for the three and six months ended October 31, 2022. We reported a foreign currency translation gain of $40,000 and $46,000 for the three and six months ended October 31, 2021, respectively. These non-cash loss and gain had the effect of 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.

On October 31, 2022, we had working capital deficit of approximately $5,404,000, including cash of approximately $2,774,000, as compared to working deficit of $5,949,000, including cash of approximately $321,000 at April 30, 2022. The approximate $2,453,000 increase in our cash at October 31, 2022 from April 30, 2022 is primarily attributable to net cash provided by operating activities of approximately $3,363,000, offset by net cash used in investing activities of approximately $162,000, net cash used in financing activities of approximately $560,000 and effect of exchange rate on cash of $188,000 during the six months ended October 31, 2022. The Company's cash balance and revenues generated are not currently sufficient and cannot be projected to cover operating expenses for the next twelve months from the date of this report. These factors raise doubt as to the ability of the Company to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. Management intends to make every effort to improve its current sales force as to further develop and expand the international markets for its new products as well as continuing with the current sources of funds to meet working capital needs on as needed basis. There can be no assurance that these plans and arrangements will be successful.

------

*The COVID-19 Pandemic.* On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical areas in China in which the Company operates. Consequently, the COVID-19 pandemic may adversely affect the Company's business operations, financial condition and operating results for 2022 and 2023, including but not limited to material negative impact to the Company's total revenues, slower collection of accounts receivables and significant impairment to the Company's equity investments. 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.

***Capital Resources***

 ****

The following table provides certain selected balance sheets comparisons as of October 31, 2022 and April 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **October 31, 2022** | **April 30, 2022** | **Increase (Decrease)** | **%** |
| Cash and cash equivalents | $2774026  | $321193  | $2452833  | 763.7%  |
| Accounts receivable, net | &nbsp;&nbsp;&nbsp;&nbsp;7935814  | 7404669  | 531145  | 7.2%  |
| Inventories, net | &nbsp;&nbsp;&nbsp;&nbsp;2194443  | 5564044  | (3369601)  | (60.6)%  |
| Prepaid expenses and other current assets | &nbsp;&nbsp;&nbsp;&nbsp;3711037 | 2765819  | 945218  | 34.2%  |
| **Total current assets** | &nbsp;&nbsp;&nbsp;&nbsp;16615320 | 16055725  | 559595  | 3.5%  |
| Property and equipment, net | &nbsp;&nbsp;&nbsp;&nbsp;6272114  | 7485733  | (1213619)  | (16.2)%  |
| Land use rights | &nbsp;&nbsp;&nbsp;&nbsp;1731945  | 1950204  | (218259)  | (11.2)%  |
| **Total assets** | **$24619379**  | **$** **25491662**  | **$** **(872283)**  | **(3.4)%**  |
| Accounts payable and accrued expenses | $13282031  | $12215238  | $1066793  | 8.7%  |
| Short-term loans | &nbsp;&nbsp;&nbsp;&nbsp;4320781  | 4907506  | (586725)  | (12.0)%  |
| Due to related parties | &nbsp;&nbsp;&nbsp;&nbsp;4416504  | 4882162  | (465658)  | (9.5)%  |
| Total current liabilities | &nbsp;&nbsp;&nbsp;&nbsp;22019316  | 22004906  | 14410  | 0.1%  |
| **Total liabilities** | **$22019316**  | **$** **22004906**  | **$** **14410**  | **0.1%**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;

We maintain cash and cash equivalents in China and United States. On October 31, 2022 and April 30, 2022, total cash were as follows:

---

| | | |
|:---|:---|:---|
| **Country** | **October 31, 2022** | **April 30, 2022** |
| United States | $59918 | $18033  |
| China | &nbsp;&nbsp;&nbsp;&nbsp;2714108 | 303160  |
| Total | $2774026 | $321193  |

---

The majority of our cash balances on October 31, 2022 are in the form of RMB stored in a bank account in China. Cash held in banks in the PRC is not insured. The value of cash on deposit in mainland China of approximately $2,707,000 as of October 31, 2022 has been converted based on the exchange rate as of October 31, 2022. 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 use outside of China.

Accounts receivable, net of allowance for doubtful accounts increased by approximately $531,000 during the six months ended October 31, 2022, as a result of the increase in sales of product sold as of October 31, 2022. The days for sales outstanding in accounts receivable increased to 93 days as of October 31, 2022, as compared to 80 days as of April 30, 2022. We will reevaluate and categorize accounts receivable for sales and will target to improve our collection effort in fiscal 2023.

------

Inventories on October 31, 2022, net of reserve for obsolescence, totaled approximately $2,194,000, as compared to $5,564,000 as of April 30, 2022. The decrease is primarily due to our increase in higher sales volume during the six months ended October 31, 2022. However, due to the COVID-19 pandemic, there has been minimal disruption in our supply chain network of certain raw materials. We are not able to purchase enough leaves of the stevia to meet our anticipated upcoming increase in demands

Our accounts payable and accrued expenses were approximately $13,282,000 on October 31, 2022, an increase of approximately $1,067,000 from April 30, 2022. The increase is primarily due to our increase in procurements of raw material as a result of the rising sales of such materials during the six months ended October 31, 2022.

Loans payable on October 31, 2022 and April 30, 2022 totaled approximately $4,321,000 and $4,908,000, respectively. These loans payable consisted of short-term loans from multiple non-related individuals, which bear annual interest rates of 4% - 12%. Range of maturity dates of the loans payable was from January 8, 2023 to November 30, 2023. During the six months ended October 31, 2022, the Company repaid loans in amount of approximately $560,000 in cash.

Due to related parties on October 31, 2022 and April 30, 2022 totaled approximately $4,417,000 and $4,882,000, respectively. As of October 31, 2022, the balance we owed Pharmaceutical Corporation and Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd., amounted to approximately $4,191,000 and $226,000, respectively. On April 30, 2022, the balance we owed to Pharmaceutical Corporation and Export and Mr. Weidong Chai amounted to approximately $4,646,000 and $236,000, respectively.

**Cash Flows Analysis**

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

Net cash provided by operating activities was approximately $3,363,000 for the six months ended October 31, 2022, primarily due to adjusted by non-cash working capital, depreciation and amortization expenses of $652,000, impairment on obsolete inventories of $56,000. Changes in operating assets and liabilities include a decrease of approximately $2,954,000 in inventories and an increase in accounts payable and accrued expenses of approximately $2,836,000, offset by an increase of approximately $1,335,000 in accounts receivable, an increase of approximately $1,294,000 in prepaid expenses and other current assets, a decreased of approximately $52,000 in taxes payable and a net loss of approximately $454,000.

Net cash used in operating activities was approximately $2,446,000 for the six months ended October 31, 2021, primarily due to a net loss of approximately $2,643,000 adjusted by non-cash working capital, depreciation and amortization expenses of $737,000, provision for obsolete inventories of $654,000 and loss on disposition of property and equipment of $387,000. Changes in operating assets and liabilities include an increase of approximately $3,560,000 in prepaid expenses and other current assets and a decrease in accounts payable and accrued expenses of approximately $1,488,000, offset by a decrease of approximately $317,000 in accounts receivable and note receivable from third party, a decrease of approximately $3,142,000 in inventories and an increase of approximately $9,000 in taxes payable.

***NET CASH FLOW USED IN INVESTING ACTIVITIES:***

Net cash used in investing activities from operations amounted to approximately $162,000 during the six months ended October 31, 2022 due to capital expenditures for property and equipment in amount of approximately $166,000 and offset by proceed from disposal of equipment of $5,000.

Net cash used in investing activities from operations amounted to approximately $2,198,000 during the six months ended October 31, 2021 due to capital expenditures for property and equipment of approximately $150,000 and land use rights of approximately $2,056,000, offset by proceed from disposal of equipment of $8,000.

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

Net cash used in financing activities from operations amounted to approximately $560,000 in the six months ended October 31, 2022, primarily due to repayments for short term loans in a total amount of $560,000 and repayment of related party advances of approximately $2,000, offset by advances received from related parties of approximately $2,000.

Net cash provided by financing activities from operations amounted to approximately $3,769,000 in the six months ended October 31, 2021, primarily due to proceeds from short term loans in a total amount of $1,008,000 and advances received from related parties of approximately $6,303,000, offset by repayment of related party advances of approximately $3,542,000.

------

**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 as 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**

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 2 to our unaudited condensed 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.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Not applicable to smaller reporting company.

**ITEM 4. CONTROLS AND PROCEDURES.**

**Evaluation of Disclosure Controls and Procedures**

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act") that are designed to ensure that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized and reported as specified in the SEC's rules and forms and that such information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer ("CEO"), and our Chief Financial Officer ("CFO"), to allow timely decisions regarding required disclosure.

Our management, with the participation of our CEO and CFO, performed an evaluation of the effectiveness of our disclosure controls and procedures as of October 31, 2022.

Based on this evaluation our management concluded that our disclosure controls and procedures were not effective as of October 31, 2022 such that the information relating to our company, required to be disclosed in our Securities and Exchange Commission reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to our management, including our CEO, to allow timely decisions regarding required disclosure.

------

***Management's Report on Internal Control over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act. Our management is also required to assess and report on the effectiveness of our internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 ("Section 404"). As reported in our Form 10-K for the year ended April 30, 2022, management assessed the effectiveness of our internal control over financial reporting as of April 30, 2022 and, during our assessment, management identified significant deficiencies related to (i) the U.S. GAAP expertise of our internal accounting staff, (ii) our internal audit functions and (iii) a lack of segregation of duties within accounting functions. Although management believes that these deficiencies do not amount to a material weakness, our internal controls over financial reporting were not effective at April 30, 2022.

Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. As a result, we have not been able to take steps to improve our internal controls over financial reporting during the six months ended October 31, 2022. However, to the extent possible, we will implement procedures to assure that the initiation of transactions, the custody of assets and the recording of transactions will be performed by separate individuals.

A material weakness (within the meaning of PCAOB Auditing Standard No. 5) is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the company's financial reporting.

In light of this significant deficiency, we performed additional analyses and procedures in order to conclude that our consolidated financial statements for the six months ended October 31, 2022 included in this quarterly report on Form 10-Q were fairly stated in accordance with the U.S. GAAP. Accordingly, management believes that despite our significant deficiency, our consolidated financial statements for the six months ended October 31, 2022 are fairly stated, in all material respects, in accordance with the U.S. GAAP.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting identified in connection with the evaluation of our controls performed during the six months ended October 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS.**

None.

**ITEM 1 A. RISK FACTORS.**

Risk factors describing the major risks to our business can be found under Item 1A, "Risk Factors", in our fiscal 2022 Annual Report on Form 10-K. There has been no material change in our risk factors from those previously discussed in the fiscal 2022 Annual Report on Form 10-K.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES.**

None.

**ITEM 4. MINE SAFETY DISCLOSURE.**

None.

------

**ITEM 5. OTHER INFORMATION.**

None.

**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| [31.1](exh_31z1.htm) | Section 302 Certificate of Chief Executive Officer.\* |
| [31.2](exh_31z2.htm) | Section 302 Certificate of Chief Financial Officer.\* |
| [32.1](exh_32z1.htm) | Section 906 Certificate of Chief Executive Officer and Chief Financial Officer.\* |
| 101.INS | XBRL INSTANCE DOCUMENT\*\* |
| 101.SCH | XBRL TAXONOMY EXTENSION SCHEMA\*\* |
| 101.CAL | XBRL TAXONOMY EXTENSION CALCULATION LINKBASE\*\* |
| 101.DEF | XBRL TAXONOMY EXTENSION DEFINITION LINKBASE\*\* |
| 101.LAB | XBRL TAXONOMY EXTENSION LABEL LINKBASE\*\* |
| 101.PRE | XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE\*\* |

---

\* - Filed herewith.

\*\* - In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed "furnished" and not "filed".

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
|  | SUNWIN STEVIA INTERNATIONAL, INC. |
| Dated: January 11, 2023 | By: /s/ Chunchun Wang |
|  | Chunchun Wang |
|  | Chief Executive Officer |
| Dated: January 11, 2023 | By: /s/ Fanjun Wu  |
|  | Fanjun Wu,  |
|  | Chief Financial Officer  |

---

## Exhibit 31.1

Exhibit 31.1

**Rule 13a-14(a)/15d-14(a) Certification**

I, Chunchun Wang, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q for the period ended October 31, 2022 of Sunwin Stevia International, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| January 11, 2023 | /s/ Chunchun Wang |
|  | Chunchun Wang, |
|  | Chief Executive Officer<br> (Principal Executive Officer) |

---

## Exhibit 31.2

Exhibit 31.2<br>

**Rule 13a-14(a)/15d-14(a) Certification**

I, Fanjun Wu, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q for the period ended October 31, 2022 of Sunwin Stevia International, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| January 11, 2023 | /s/ Fanjun Wu |
|  | Fanjun Wu, |
|  | Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

Exhibit 32.1

**Section 1350 Certification**

In connection with the quarterly report of Sunwin Stevia International, Inc. (the "Company") on Form 10-Q for the period ended October 31, 2022 as filed with the Securities and Exchange Commission (the "Report"), I, Chunchun Wang, Chief Executive Officer of the Company, and I, Fanjun Wu, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | |
|:---|:---|
| January 11, 2023 | /s/ Chunchun Wang |
|  | Chunchun Wang, |
|  | Chief Executive Officer |
| January 11, 2023 | /s/ Fanjun Wu |
|  | Fanjun Wu, |
|  | Chief Financial Officer |

---

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.