Entry into a Material Definitive Agreement.
On July 10, 2019, Sunwin Stevia International, Inc .'s (the "Company" "we", "us" or "our") wholly owned subsidiary Qufu Shengren Pharmaceutical Co., Ltd. ("Qufu Shengren") entered into a management agreement with Ru Yuan, unaffiliated individual(the "Contractor") to contract out the operation of the metformin production line for the term of 30 years.
The metformin production line is a recently established production line which we have only been operating at a trial capacity, in the past few quarters we have determined that the sales of this product is not profitable for the Company. In accordance with the agreement, the Contractor will be responsible for all expenses and overhead related to the operation of this production line and pay to an annual contract fee of RMB 3,000,000 (approximately $436,047) to Qufu Shengren.