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China Shenghuo Reports Unaudited Financial Results for the Third Quarter of 2009
Date:11/16/2009

KUNMING, China, Nov. 16 /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 third quarter ended September 30, 2009.

    Third Quarter 2009 Financial Highlights
    -- Total revenues increased by 45% year-over-year to $10.56 million;
    -- Gross margin decreased to 72.08% from 72.89% in the same period of 2008;
    -- Net cash provided by operations was $0.88 million compared with
       negative cash flow of $ 0.23 million for the nine months ended
       September 30, 2009 and 2008, respectively.

Mr. Gui Hua Lan, Chief Executive Officer of China Shenghuo, commented, "Sales for the three months ended September 30, 2009 was approximately $10.56 million, an increase by 45.00 % from $7.28 million for the three months ended September 30, 2008. The increase in sales was primarily due to the Company's implementation of a new sales policy that has stimulated the enthusiasm of sales representatives, resulted in the increased sales of products. Our primary products, Xuesaitong Soft Capsules and the innovative 12 Ways cosmetic products continued to produce meaningful growth in a difficult market environment."

Third Quarter 2009 Financial Results

Revenues for the third quarter of 2009 increased by 45% to $10.56 million compared to $7.28 million for the same period in 2008. The increase in revenues was primarily due to the Company's implementation of a new sales policy that has stimulated the enthusiasm of sales representatives and resulted in increased sales of products.

Gross margin for the third quarter of 2009 increased by 43.41% to $7.61 million from $5.30 milli
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
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