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China Shenghuo Reports Full Year 2007 Financial Results
Date:4/1/2008

KUNMING, China, April 1, 2008 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. (Amex: KUN) ("China Shenghuo" or "the Company"), which is engaged in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic products in the People's Republic of China ("PRC"), announced its financial results for full year ended December 31, 2007.

Full Year 2007 Highlights

-- Net sales totaled $20.0 million, in line with guidance

-- Gross profit increased 10.1% to $14.9 million

-- Gross margin increased to 74.8% from 67.9% a year ago

-- Net income increased 33.8% to $4.0 million, or $0.21 per diluted

share, in line with guidance

-- Completed public offering and began trading on the American Stock

Exchange

-- Completed phase II clinical trial for Wei Dingkang Soft Capsules

-- Commenced full-scale launch of 12Ways(R) Chinese herbal skin care

product line

-- Opened showcase 12Ways Chinese herbal beauty salon

-- Opened 106 12Ways(R) retail counters in Beijing, Dongwan, Hangzhou,

Shanghai, Shaoguang and Shengzhen

-- Implemented internal controls to comply with U.S. Sarbanes-Oxley Act

Full Year 2007 Results

For the fiscal year ended December 31, 2007, the Company generated net sales of $20.0 million. Sales of Xuesaitong Soft Capsules, the Company's primary product, accounted for 90% of total sales, compared to 80% of total sales in 2006. The Company adopted more stringent credit policies during the second half of 2007, which caused a shift in its customer base and led to a decline in sales volume, which was offset by an increase in prices.

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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
Copyright©2008 PR Newswire.
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