China Shenghuo Pharmaceutical Holdings, Inc. Retains CCG Elite

LOS ANGELES, Calif. and KUNMING, China, June 21 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. ("China Shenghuo," "the Company") (Amex: KUN), a leading specialty pharmaceutical company engaged in researching, developing, manufacturing and marketing Sanchi-based medicinal products in the People's Republic of China ("PRC"), today announced it has retained CCG Elite to design and execute its investor relations campaign.

"China Shenghuo is one of the promising high-growth companies in China's emerging pharmaceutical market," said Crocker Coulson, President of CCG Elite. "The Company's historical revenue growth and capacity to develop and manufacture Sanchi for a variety of uses positions China Shenghuo as a very attractive investment vehicle that leverages the high growth rate of the traditional Chinese medicine industry in China."

In the first quarter of 2007, revenues were $4.3 million, while the Company's gross profit increased 11.4% year-over-year to $3.2 million. Gross margin was 73.6%, up from 63.9% in the first quarter of 2006. The Company expects gross margin to be approximately 60% for the full year 2007. Net income was $1.5 million, or $0.08 per diluted share, a 77.3% increase from $0.8 million, or $0.05 per diluted share, in the same quarter of 2006. The Company's stock began trading on the American Stock Exchange June 14, 2007, under the ticker symbol "KUN".

"China Shenghuo has strong brand recognition as we market our major Sanchi-based pharmaceutical products under the popular Lixuwang brand," said Mr. Lan Guihua, Chief Executive Officer and Chairman of China Shenghuo. "By emphasizing investment in scientific research and quality control, we have elevated the development of prescription and over-the-counter products based on traditional Chinese medicine practices."

Through its four subsidiaries, the Company has a diverse product portfolio, including pharmaceuticals, nutritional supplements and cosmetic products. The flagship product, Xuesaitong Soft Capsules, has been listed in the National Insurance Catalogue since 2005. China Shenghuo's integrated sales network spans more than 20 provinces in China.

The Company's state-of-the-art factories in the Kunming National Economy & Technology Developing District in mainland China have a combined production capacity of 1.5 billion soft capsules per year. China Shenghuo's advanced manufacturing procedures and effective quality control enable it to provide pharmaceutical products according to more stringent Western standards.

About CCG Elite

CCG Elite is uniquely positioned to provide an outsourced, high-level investor relations solution that combines in-depth understanding of Asia's corporate culture and economic scene and a direct pipeline into the leading funds and broker-dealers in the U.S. CCG Elite is a global, full-service investor relations agency with corporate headquarters in Los Angeles and offices in New York City, Newport Beach, Calif., Dallas, Texas, Hong Kong and Beijing. For further information, contact CCG Elite directly, or visit the Company's Web site at .

About China Shenghuo Pharmaceutical Holdings, Inc.

Founded in 1995, China Shenghuo Pharmaceutical Holdings, Inc. ("China Shenghuo" or "the Company") is a leading specialty pharmaceutical company that focuses on the research, development, production and marketing of Sanchi-based medicinal products. Through its subsidiary, Kunming Shenghuo Pharmaceutical (Group) Co., Ltd ("Kunming Shenghuo"), it owns thirty-one SFDA (State Food and Drug Association)-approved medicines, including the flagship product Xuesaitong Soft Capsules, which has already been listed in the Insurance Catalogue. At present, Shenghuo incorporates a sales network of agencies and representatives throughout China, which markets Sanchi-based traditional Chinese medicine into 1,650 hospitals and 1,500 drug stores as prescription and OTC drugs primarily for the treatment of cardiovascular, cerebrovascular and peptic ulcer disease. The Company also exports medicinal products to Asian countries such as Indonesia, Thailand and Kyrgyzstan.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth herein that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's reliance on one supplier for Sanchi, ability to develop and market new products, ability to establish and maintain a strong brand, continued maintenance of certificates, permits and licenses required to conduct business in China, protection of company's intellectual property rights, changes in the laws of the People's Republic of China that affect the company's operations, the company's ability to obtain all necessary government certifications and/or licenses to conduct the company's business and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:

China Shenghuo Pharmaceutical Holdings, Inc.

Ms. Gao Qionghua, CFO

Tel: +86-871-728-2608


CCG Elite Investor Relations

Crocker Coulson, President

Tel: +1-646-213-1915 (New York)


Source: China Shenghuo Pharmaceutical Holdings, Inc.
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