JIAMUSI CITY, CHINA--(Marketwire - Sep 29, 2011) - Sen Yu International Holdings, Inc. ("Sen Yu International" or the "Company") (OTCBB: CSWG), a leading commercial hog breeder and supplier in Heilongjiang Province, the People's Republic of China, today announced its financial results for its fiscal year ended June 30, 2011.

Fiscal 2011 Highlights

• Total revenue increased 41.8% to a record $99.8 million from $70.4 million
• Gross profit increased 84.6% year-over-year to $25.9 million from $14.0 million
• Gross margin increased to 26.0% from 20.0% on increased sales and strong increases in the average market price for hogs
• Operating expenses were $6.9 million, down 12.2% from $7.9 million in fiscal 2010
• Operating income rose 207.4% to $19.0 million from $6.2 million in fiscal 2010
• Adjusted net income, which excludes a gain in the fair value of warrants, increased 202.2% to $18.9 million, or $0.73 per diluted share, versus $6.3 million, or $0.41 per diluted share, for the same period last year, which excludes a non-cash expense related to the fair value of warrants for the fiscal year 2010
• Net income increased to $36.1 million, or $1.40 per diluted share, from $4.3 million, or $0.29 per diluted share, for the fiscal year ended June 30, 2010
• Working capital increased 189.6% to $59.2 million at June 30, 2011, from $20.5 million at June 30, 2010
• Shareholders' equity inclusive of noncontrolling interest increased 166.5% to $59.8 million at June 30, 2011, from $22.5 million at June 30, 2010

"We experienced record revenues and profits in fiscal 2011 based on strong demand for our high quality breeding and commercial hogs," stated Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "Increased orders from our two major customers, Beijing Dahongmen and Beijing Fifth Meat Factory, resulted in revenues increasing to $99.8 million for the year compared to $70.4 million in revenue for fiscal 2010. Overall, our hog sales increased by 106,773 head to 504,028 head in fiscal 2011, compared to 397,255 at the end of fiscal 2010. We achieved higher margins in fiscal 2011 due to strong increases in average market prices for commercial hogs that led to higher unit sales prices. We believe our efficient business model and advanced breeding techniques, coupled with the demand we see for our products, will help us to continue to capture market share and drive our future growth."

Fiscal 2011 Results

Revenue for the fiscal year ended June 30, 2011 increased 41.8% to a record $99.8 million compared to $70.4 million for the fiscal year ended June 30, 2010. The increase in revenues resulted from increased orders from the Company's major customers, Beijing Dahongmen and Beijing Fifth Meat Factory. Hog sales increased to 504,028 head for the fiscal year ended June 30, 2011 from 397,255 for the fiscal year ended June 30, 2010. The increase in average unit sales price per capita was due to the increase in the market price during the fiscal year ended June 30, 2011.

Cost of goods sold for the fiscal year ended June 30, 2011 increased by $17.5 million, or 31.1%, to $73.8 million from $56.3 million for the fiscal year ended June 30, 2010. The increase was primarily attributable to increased sales volume.

Gross profit for the fiscal year ended June 30, 2011, increased by $11.9 million, or 84.6% to $25.9 million from $14.0 million for the fiscal year ended June 30, 2010. The increase was primarily due to the increase in sales volume. Gross margin for the fiscal year ended June 30, 2011 increased to 26.0% from 20.0% for the fiscal year ended June 30, 2010. The increase in gross margin was due to more commercial hogs and breeding swine sold and the higher unit sale prices for the fiscal year ended June 30, 2011, which generated higher unit margins for the period ended June 30, 2011.

Operating expenses for the fiscal year ended June 30, 2011 decreased $959,419, or 12.2%, to $6.9 million from $7.9 million for the fiscal year ended June 30, 2010. The decrease was primarily attributable to a decrease in compensation expenses. Compensation expenses decreased by approximately $3.1 million, or 76.1%, from the fiscal year ended June 30, 2010, principally due to reduction of payment in fiscal 2011.

Operating income for the fiscal year ended June 30, 2011 increased by $12.8 million, or 207.4%, to $19.0 million from $6.2 million for the fiscal year ended June 30, 2010. The increase was primarily due to an increase in sales.

Net income for the year ended June 30, 2011 was $36.1 million, or $1.40 per diluted share, which includes a gain of $17.2 million related to the change in the fair value of warrants, compared to $4.3 million, or $0.29 per diluted share for the year ended June 30, 2011, which includes a non-cash expense of $2.0 million related to the fair value of warrants. Excluding these items, adjusted net income for the year ended June 30, 2011 was $18.9 million, or $0.73 per diluted share, which translates into a 202.2% increase in net income for the fiscal year ended June 30, 2011.

Financial Condition

As of June 30, 2011, the Company had $11.4 million in cash and cash equivalents, an increase of 96.4% from $5.8 million as of June 30, 2010, and $59.2 million in working capital, an increase of 189.6% from working capital of $20.5 million at June 30, 2010. Shareholders' equity inclusive of noncontrolling interest at June 30, 2011 was approximately $59.8 million, an increase of 166.5% from $22.5 million at June 30, 2010. The Company generated $892,435 in net cash flow from operating activities for the fiscal year ended June 30, 2011, versus $1.3 million in net cash flow for the fiscal year ended June 30, 2010.

Business Outlook

"We see significant growth for our industry going forward and believe that strong demand from Chinese consumers for high quality pork coupled with rising domestic incomes and economic expansion will stimulate even greater demand for our high quality breeding hogs," commented Mr. Shang. "The market for breeding and commercial hogs is becoming very attractive to foreign investors as China is the world's largest consumer of pork and produces some 50 million tons of pork every year to feed a population of over 1.3 billion. We continue to expand our production and refine our breeding techniques to meet the rising demand from China's middle class. Going forward, we believe pork consumption and production will continue to rise and that Sen Yu is well positioned to capture greater revenue and profit."

About Sen Yu International Holdings, Inc.

Sen Yu International Holdings, Inc. (OTCBB: CSWG), through its subsidiaries, is the largest commercial hog breeder and supplier in Heilongjiang Province, the People's Republic of China (PRC). Founded in 2004 and based in Jiamusi City, the Company owns and operates two farms in Heilongjiang Province with an aggregate annual capacity of over 11,000 breeding hogs. For the fiscal year ended June 30 2011, the Company sold approximately 500,000 commercial hogs in the Beijing market. The Company also conducts genetic and breeding research to improve pork production capabilities.

To be added to the Company's email distribution for future news releases, please send your request to robert.haag@hamptongrowth.com.

Safe Harbor Statement

Certain statements in this release concerning our future growth prospects are "forward-looking statements," which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "guidance," "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties (many of which are beyond the Company's control), including, but not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at www.sec.gov.

We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to stockholders. We do not undertake to update any forward-looking statements that may be made from time to time by us or on our behalf.

-- FINANCIAL TABLES FOLLOW --

Sen Yu International Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
			For The Fiscal Years Ended June 30,
			2011				2010
Revenues			$	99,769,757			$	70,351,959
Cost of Goods Sold				73,836,033				56,307,072
Gross Profit				25,933,724				14,044,887
Operating Expenses
	Selling expenses			3,319,367				2,264,653
	General and administrative expenses			1,455,777				934,379
	Losses on disposal of fixed assets			72,157				109,098
	Bad debt for advanced to suppliers			1,084,608				524,179
	Stock-based compensation			959,469				4,018,488
Total Operating Expenses				6,891,378				7,850,797
Income From Operations				19,042,346				6,194,090
Other Income (Expense)
	Interest expense, net			(112,376	)			(70,953	)
	Other expense, net			(2,770	)			(6,453	)
	Change in fair value of warrants			17,150,616				(1,998,740	)
Total Other Income (Expense)				17,035,470				(2,076,146	)
Income from Continuing Operations Before Income Taxes				36,077,816				4,117,944
Income Tax Provision				-				-
Net Income Before Noncontrolling Interest				36,077,816				4,117,944
	Less: Net loss attributable to the noncontrolling interest			(50	)			(145,630	)
Net Income Attributable to Sen Yu International Holdings, Inc.			$	36,077,866			$	4,263,574
Earnings Per Share:
	- Basic		$	1.64			$	0.33
	- Diluted		$	1.40			$	0.29
Weighted Common Shares Outstanding
	- Basic			22,002,885				12,976,230
	- Diluted			25,863,391				15,255,131

Sen Yu International Holdings, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
			For The Fiscal Years Ended June 30,
			2011			2010
Net Income Before Noncontrolling Interest			$	36,077,816		$	4,117,944
Other Comprehensive Income:
	Foreign Currency Translation Income			2,426,862			246,594
Comprehensive Income			$	38,504,678		$	4,364,538

Sen Yu International Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
				As of June 30,
				2011				2010
Assets
Current Assets:
	Cash and equivalents			$	11,440,584			$	5,825,842
	Accounts receivable				-				-
	Inventories, net				1,544,675				943,642
	Advance to suppliers, net				53,473,785				30,830,691
	Prepayments and other current assets				72,169				176,777
	Total Current Assets				66,531,213				37,776,952
Property, Plant, Equipment and Breeding Stock, net					1,816,987				1,983,760
Construction in Progress					213				14,801
	Total Long-Term Assets				1,817,200				1,998,561
	Total Assets				68,348,413				39,775,513
Liabilities and Shareholders' Equity
Current Liabilities:
	Accounts payable and accrued expenses				455,044				390,644
	Loans payable, net				1,128,517				1,066,924
	Convertible note, net				-				2,165,000
	Loans from shareholders/officers, net				794,354				5,460
	Deferred interest income				31,858				39,036
	Performance bond				1,083,016				-
	Other current liabilities				9,169				1,721
	Derivative liabilities-warrants				3,793,314				13,654,111
	Total Current Liabilities				7,295,272				17,322,896
Temporary equity
	Redeemable shares of common stock (804,000 and 0 shares issued and outstanding, respectively)				1,217,055				-
	Total Liabilities				8,512,327				17,322,896
Shareholders' Equity:
	Series A Convertible Preferred Stock, $0.001 par value, 4,800 shares authorized, zero and 4,646.05933 shares issued and outstanding, respectively				-				-
	Series B Convertible Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 1,988,429 and 1,152,380 shares issued and outstanding, respectively				1,988				1,152
	Common stock, $0.001 par value, 300,000,000 shares authorized, 25,263,113 and 20,892,982 issued and outstanding, respectively				25,263				20,893
		Additional paid-in capital			11,573,432				10,860,373
		Reserve funds			6,745,351				3,570,029
		Retained earnings			40,766,555				7,864,011
		Accumulated other comprehensive income			3,393,871				967,009
		Unearned compensation			(2,956,141	)			(1,116,667	)
	Total Sen Yu International Holdings, Inc. Shareholders' Equity				59,550,319				22,166,800
Noncontrolling Interest					285,767				285,817
	Total Equity				59,836,086				22,452,617
	Total Liabilities and Equity			$	68,348,413			$	39,775,513
The accompanying notes are an integral part of these consolidated financial statements.

Sen Yu International Holdings, Inc and Subsidiaries
Consolidated Statements of Cash Flows
			For The Fiscal Year Ended June 30,
			2011				2010
Cash Flows From Operating Activities:
Net Income			$	36,077,816			$	4,117,944
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
	Depreciation and amortization			476,630				501,628
	Bad debt adjustment			1,084,608				524,179
	Consulting fees adjusted from deferred			831,969				106,333
	Issue common stock to pay consulting fee			-				3,912,155
	Stock-based compensation			127,500				-
	Amortization of financing costs			-				80,500
	Loss on disposal of fixed assets			72,157				109,098
	Loss on disposal of inventories			26,345				245,514
	Provision for losses on inventories			(1,245	)			1,236
	Change in fair value of warrants			(17,150,616	)			1,998,740
	Change in fair value of redeemable stock			11,055				-
	Changes in operating assets and liabilities:
	Accounts receivable			-				634,550
	Inventories			(707,687	)			(255,393	)
	Advanced to suppliers			(21,195,303	)			(10,477,518	)
	Prepayments and other current assets			107,992				(109,214	)
	Accounts payable and accrued expenses			49,852				(59,738	)
	Customer deposit			-				4,270
	Deferred interest income			(8,672	)			48,005
	Performance bond			1,083,016				-
	Other current liabilities			7,018				(62,884	)
Net Cash Provided by Operating Activities				892,435				1,319,405
Cash Flows From Investing Activities:
	Payment for purchase of equipment			(112,098	)			(51,538	)
	Payment for construction in progress			(70,805	)			(14,801	)
	Proceeds from sale of property and equipment			45,168				27,802
Net Cash Used in Investing Activities				(137,735	)			(38,537	)
Cash Flows From Financing Activities:
	Proceeds from discount on loans payable			8,672				(48,005	)
	Proceeds from Convertible Notes			-				2,165,000
	Proceeds from issuranceof redeemable stock			1,206,000
	Proceeds from issuance of stock			3,044,140				2,190,145
	Repayments for loans from shareholders/officers			(26,034	)			(8,961	)
	Proceeds the repayment of loans by shareholders/officers			813,712				152,230
Net Cash Provided by Financing Activities				5,046,490				4,450,409
Net Increase in Cash and Equivalents				5,801,190				5,731,277
Effect of Exchange Rate Changes on Cash				(186,448	)			11,711
Cash and Equivalents at Beginning of Period				5,825,842				82,854
Cash and Equivalents at End of Period			$	11,440,584			$	5,825,842
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
	Interest paid		$	222,015			$	-
	Income taxes paid		$	-			$	-
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
	Inventory transferred out to be breeding stock in fixed assets		$	153,989			$	70,405
	Construction in progress transferred out to be fixed assets		$	85,403			$	-
	Majority shareholder waive his right to the Company's debt		$	-			$	11,169,236
	Issued shares for consulting service		$	2,671,443			$	5,135,155
	Offset debt by fixed assets		$	6,791			$	11,654,932