China Shenghuo Pharmaceutical Reports Financial Results for the First Quart... ( KUNMING China May 16 2011 Asia-FirstC...)

China Shenghuo Pharmaceutical Reports Financial Results for the First Quarter of 2011

Date:5/16/2011

KUNMING, China, May 16, 2011 /PRNewswire-Asia-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. (NYSE Alternext US: KUN) ("China Shenghuo" or the "Company"), today reported unaudited financial results for the first quarter ended March 31, 2011.

First Quarter 2011 Highlights

Total revenue increased to $9.4 million for the first quarter of 2011, representing 19% year-over-year growth.

Net cash provided by operating activities was approximately $2.6 million, an increase of approximately $0.6 million, from approximately $2.0 million for the first quarter ended March 31, 2010.

Net income attributable to stockholders increased to $99,373, as compared to $2,355 for the first quarter ended March 31, 2010.

First Quarter 2011 ResultsSales: Sales for the three months ended March 31, 2011 was approximately $9.4 million, an increase of approximately $1.5 million, or 19 %, from approximately $7.9 million for the three months ended March 31, 2010. The increase in sales was primarily due to the Company's main product Xuesaitong's sales increasing in Tianjin City and Yunnan Province as Xuesaitong was listed on the Provincial Insurance Catalog list of Tianjin City since the second quarter in 2010 and the Company strengthened sales promotion in Yunnan Province.

Cost of goods sold: Our cost of goods sold for the three months ended March 31, 2011 was approximately $3.8 million, an increase of $1.7 million, or 83%, from approximately $2.1 million for the three months ended March 31, 2010. The increase in cost of goods sold was primarily due to the increase of purchase price of Sanqi which is the main raw material of our main product Xuesaitong. In addition, the Zhonghuang Hotel began trial operation since January 2011 which has contributed $0.4 million to the increase of cost of goods sold.

Gross profit: Our gross pr
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
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