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China Kanghui Holdings Renews High and New Technology Enterprises Status of Its PRC Operating Subsidiaries
Date:1/11/2012

CHANGZHOU, China, Jan. 11, 2012 /PRNewswire-Asia/ -- China Kanghui Holdings (NYSE: KH) ("Kanghui" or the "Company"), a leading domestic developer, manufacturer and marketer of orthopedic implants in China, today announced that the Company's operating subsidiaries, Beijing Libeier Biology Engineering Research Institute Co., Ltd and Changzhou Kanghui Medical Innovation Co., Ltd, have received approvals from relevant PRC authorities for the renewal of their respective "High and New Technology Enterprises" ("HNTE") status.

Ms. Sarah Wang, Chief Financial Officer of the Company, stated, "We are pleased that both of our operating subsidiaries have successfully renewed their HNTE status, pursuant to which the applicable income tax rate of the two operating subsidiaries for years 2011, 2012 and 2013 will be 15%, as compared to the statutory 25% income tax rate that the Company used to accrue its income tax expenses for the first nine months of 2011. We anticipate that the extra income tax expenses accrued in the first nine months of 2011 will be reversed as tax benefit in the fourth quarter of 2011."  

About China Kanghui Holdings

Founded in 1997, Kanghui is a leading domestic developer, manufacturer and marketer of orthopedic implants in China. The Company offers a wide array of proprietary orthopedic implant products in trauma and spine. It has an extensive network of distributors for its products in China. In addition, Kanghui's products are distributed in 28 countries. Kanghui has strong research and development capabilities, focused on developing new proprietary products, including new product lines, extensions of existing product lines and enhancements of existing products. For more information, please visit www.kanghui.com.

Contact:
China Kanghui Holdings Investor Relations Department 
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