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China Shenghuo Reports Year 2008 Financial Results
Date:4/1/2009

KUNMING, China, April 1 /PRNewswire-Asia-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. (NYSE Amex Equities: KUN) ("China Shenghuo" or the "Company"), reported financial results for the year ended December 31, 2008.

    Year 2008 Highlights
    -- Total revenue for the year 2008 increased 43.6% to a record $28.69
       million
    -- Gross margin for the year 2008 was 73.2%
    -- Cash provided by operating activities was $1.95 million

"I am pleased to report that China Shenghuo continued to deliver strong revenue growth during 2008," commented Mr. Gui Hua Lan, CEO of China Shenghuo. "Our flagship product, Xuesaitong Soft Capsule, again reported strong year-over-year growth, as its sales grew almost 35% in 2008. We continued to expand the product's geographic footprint in China, as we leveraged the strength of our growing internal sales and marketing capabilities. We are also encouraged by the strong performance from our 12Ways cosmetics products and OTC drugs. As we enter 2009, we expect our flagship Xuesaitong Soft Capsule product to continue as a major generator of our overall sales. However, we believe that our 12Ways cosmetics will be a growing contributor to revenue and a key long-term growth driver for the Company."

Total revenue for the full year 2008 was a record $28.69 million, representing a 43.6% increase from $19.97 million for the 2007 year. The sales growth was largely due to higher sales of the Company's flagship product, Xuesaitong Soft Capsule, as well as an increase in the sale of the 12Ways cosmetic products by our expanding business to more cities and provinces. Specifically, the increase is due to (i) an increase of $6.50 million in revenue from our main product, Xuesaitong Soft Capsules and two other prescription drugs; (ii) an increase of $0.68 million in revenue from other pharmaceuticals and export to other countries; (iii) an increase of $0.95 m
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
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