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China Shenghuo Reports Unaudited Financial Results for the First Quarter of 2009
Date:5/15/2009

KUNMING, China, May 15 /PRNewswire-Asia-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. (NYSE Amex Equities: 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"), today reported unaudited financial results for the first quarter ended March 31, 2009.

    First Quarter 2009 Financial Highlights
    -- Total revenues increased 23.4% year-over-year to $6.8 million
    -- Gross margin rose to 66% from 61.7% in the same period of 2008
    -- Net cash provided by operations was $890,299 compared with negative
       cash flow of 391,880 in the same period of 2008

Mr. Gui Hua Lan, Chief Executive Officer of China Shenghuo, commented, "Despite a seasonally slow first quarter, which included the Chinese New Year holiday in early February, we are pleased with our double-digit top-line growth and our gross margin expansion, as they reflected our customer growth, expanding distribution network, and diversified product portfolio. Our flagship Xuesaitong Soft Capsule and the innovative 12 Ways cosmetics products continued to produce meaningful growth in a difficult market environment."

First Quarter 2009 Financial Results

Revenues for the first quarter of 2009 increased 23.4% to $6.8 million compared to $5.5 million for the same period in 2008. The improvement was primarily due to increased sales of the Company's main product, Xuesaitong Soft Capsules, as well as the 12 Ways cosmetics products.

Gross profit for the first quarter of 2009 increased 32% to $4.5 million over $3.4 million for the same period in 2008. Gross margin for the first three months of 2009 was 66%, compared with 61.7% for the same period in 2008. The increase in gross margin was primarily due to the improved sales of both Xuesa
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
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