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China Shenghuo Reports Unaudited Financial Results for the Second Quarter of 2009
Date:8/14/2009

KUNMING, China, Aug. 14 /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 second quarter ended June 30, 2009.

    Second Quarter 2009 Financial Highlights
    -- Total revenues decreased 5.37% year-over-year to $8.13 million
    -- Gross margin rose to 70.55% from 65.22% in the same period of 2008
    -- Net cash provided by operations was $981,447 compared with negative
       cash flow of $ 556,090 for the six months ended June 30, 2009 and 2008,
       respectively.

Mr. Gui Hua Lan, Chief Executive Officer of China Shenghuo, commented, "Despite the revenues for the second quarter of 2009 decreasing 5.37% compared to the revenues for the same period in 2008, revenues increased 20.08% when compared to the revenues for the first quarter of 2009. Our flagship Xuesaitong Soft Capsule and the innovative 12 Ways cosmetics products continued to produce meaningful growth in a difficult market environment."

Second Quarter 2009 Financial Results

Revenues for the second quarter of 2009 decreased 5.37% to $8.13 million compared to $8.59 million for the same period in 2008. The decrease in revenues was primarily due to the decrease of $0.4 million in the sales of other brands' non-prescription pharmaceuticals, and approximately $0.03 million decrease in the sales of cosmetic products and export of our products, respectively.

Gross profit for the second quarter of 2009 increased 2.36% to $5.74 million over $5.6 million for the same period in 2008. Gross margin for the three months ended June 30, 2009 was 70.55%, compared with 65.22% for the same period
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
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