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China Shenghuo Pharmaceutical Retains Grayling Global As Investor Relations Counsel
Thursday July 24, 8:30 am ET
KUNMING, China, July 24 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. (Amex: KUN - News; "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 announced that it has retained Grayling Global to lead a strategic communications program (''the IR program'') to shareholders, the investment community and financial media.
"Grayling Global was selected to represent China Shenghuo after a thorough review of numerous candidates,'' said Mr. Guihua Lan, the Chairman and CEO of China Shenghuo. ''The firm's longstanding investor relations track record in the healthcare sector, its keen understanding of the Chinese marketplace and its strong ability to enhance shareholder value for clients were the key reasons we selected them to assist us in our investor relations efforts. We believe Grayling's effective communications programs and impressive reputation of developing long-term relationships with the investment community will enable China Shenghuo to generate investor awareness and visibility.''
Grayling Global, a subsidiary of Huntsworth PLC (LSE: HNT - News), is headquartered in London, with offices in New York, Brussels, Bangkok, Singapore, Madrid, Moscow, Tel Aviv, Shanghai, Istanbul, Los Angeles, Sacramento, Dublin, Edinburgh, Cardiff, Bristol, and Birmingham. The firm has over 200 consultants, focusing on first-class delivery in public affairs, public relations, investor relations and events management.
About China Shenghuo
Founded in 1995, China Shenghuo Pharmaceutical Holdings, Inc. ("China Shenghuo" or "the "Company") is a 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 SFDA (State Food and Drug Administration) approved medicines, including the flagship product Xuesaitong Soft Capsules, which has already been listed in the Insurance Catalogue. At present, China Shenghuo incorporates a sales network of agencies and representatives throughout China, which markets Sanchi-based traditional Chinese medicine to hospitals and 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, Russia and Kyrgyzstan. For more information, please visit http://www.shenghuo.com.cn .
The China market has had a huge drop in the past couple of months, owned EEV & FXP on the short side. Some of these small cap China stocks may recover soon and now buying some KUN for a rebound.
surf's up......crikey
KUN finally has an English website and here is their product listing:
http://www.shenghuo.com.cn/en/Product.aspx
May be time for another China play "run"!
China Biotech Week in Review: News on All Fronts:
http://seekingalpha.com/article/72069-china-biotech-week-in-review-news-on-all-fronts?source=yahoo
China Shenghuo Pharmaceutical Holdings, China Architectural Engineering and Asia Time lead small-cap percentage gainers
Thursday May 15, 12:36 pm ET
Will Atkinson
China Shenghuo Pharmaceutical Holdings Inc (AMEX:KUN - News), China Architectural Engineering Inc (AMEX:RCH - News) and Asia Time Corp (AMEX:TYM - News) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $750 million.
National Coal Corp (NasdaqGM:NCOC - News), Gentium SpA (NasdaqGM:GENT - News) and Stanley Inc (NYSE:SXE - News) are also among the biggest percentage gainers.
Here are the biggest percentage gainers among small caps:
Price at 12:33 ET Change % Change Volume Year High Year Low
KUN CHINA SHENGHUO PHARM HLDGS I 5.13 +1.37 +36.4% 1,087.1k 19.75 2.55
China Shenghuo Reports Flat Revenues for 2007:
China Shenghuo Pharmaceutical Holdings, Inc. (KUN) released its 2007 financial statement last week, reporting that its net earnings were $4 million on sales of $20 million. The revenue figure was virtually identical with the 2006 number, though earnings were up from $3.5 million. However, the report was lower than expected because earlier this year, as it announced its first-half results, China Shenghuo said it expected revenues to hit $25 million for full-year 2007.
The company said that it instituted stricter credit policies in the second half of 2007, and limited its sales and marketing efforts to 80 distributors with strong financial reputations, moves that kept revenues from increasing. But it also raised prices for its products and increased its production efficiency, which offset the effects of the lower volume.
The company said that 90% of its revenues came from Xuesaitong Soft Capsules, a traditional Chinese medicine that increases blood circulation.
China Shenghuo said the SFDA gave approval in January to Tian Xin Soft Capsules, an OTC nutritional supplement that, like Xuesaitong Soft Capsules, is based on the Sanchi root. The company has also begun a Phase III clinical trial for Wei Dingkang Soft Capsules, a traditional Chinese medicine that treats peptic ulcer disease by inhibiting the growth of helicobacter pylori.
The company expects its financial performance to improve in 2008. It called for revenues to fall in a range between $27.0 million and $30.0 million and net income to be between $5.0 million and $6.5 million.
China Shenghuo Reports Full Year 2007 Financial Results
Tuesday April 1, 6:00 am ET
KUNMING, China, April 1, 2008 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. (Amex: KUN - News; "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"), announced its financial results for full year ended December 31, 2007.
Full Year 2007 Highlights
-- Net sales totaled $20.0 million, in line with guidance
-- Gross profit increased 10.1% to $14.9 million
-- Gross margin increased to 74.8% from 67.9% a year ago
-- Net income increased 33.8% to $4.0 million, or $0.21 per diluted
share, in line with guidance
-- Completed public offering and began trading on the American Stock
Exchange
-- Completed phase II clinical trial for Wei Dingkang Soft Capsules
-- Commenced full-scale launch of 12Ways® Chinese herbal skin care
product line
-- Opened showcase 12Ways Chinese herbal beauty salon
-- Opened 106 12Ways® retail counters in Beijing, Dongwan, Hangzhou,
Shanghai, Shaoguang and Shengzhen
-- Implemented internal controls to comply with U.S. Sarbanes-Oxley Act
Full Year 2007 Results
http://biz.yahoo.com/prnews/080401/cntu024.html?.v=29
Form 10KSB for CHINA SHENGHUO PHARMACEUTICAL HOLDINGS INC
31-Mar-2008
Annual Report
http://biz.yahoo.com/e/080331/kun10ksb.html
China Shenghuo to Market 12Ways(R) Skin Care Products in the U.S. through Agreement with Home Shopping Group
Thursday February 7, 8:00 am ET
KUNMING, China, Feb. 7 /Xinhua-PRNewswire/ -- China Shenghuo Pharmaceutical Holdings, Inc. ("China Shenghuo," "the Company") (Amex: KUN - News), 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 announced it will begin selling its 12Ways® Skin Care products in the United States during the first quarter of 2008.
http://biz.yahoo.com/prnews/080207/lnth503.html?.v=1
Nice recovering for KUN, sold out again this morning, this is a good China play trading stock for now.
China Shenghuo Pharmaceutical Hit on Revenue Decline
posted on: November 16, 2007 | about stocks: KUN
China Shenghuo Pharmaceutical Holdings, Inc. (AMEX: KUN), a Kunming, China based company involved in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic announced its unaudited financial results for the Q3 2007. Revenues were short, and investors were not happy.For the third quarter, the company reported net sales of US$4.2 million, a decline of 17.6% from the same quarter last year. Gross profit for the second quarter was $3.2 million with gross margins of 75.3%, up from 74.4% the prior. The increased gross margin was attributed to an increase in sales prices. Net income during the quarter was $0.9 million, or $0.04 per diluted share.
The company attributed the sales decline to a tightening of credit policy, reporting that an adoption of more stringent credit policies caused a shift in its customer base and led to a shortfall in sales volume. In addition to the revenue shortfall, management also revised guidance downward. In the second quarter the company was anticipating revenues of between $24.0 million and $26.0 million and earnings of between $5.0 million and $6.0 million for the year. The company now expects full-year revenues of between $20.0 million and $22.0 million and net earnings of between $4.0 million and $5.0 million. The Company forecasts earnings per share of between $0.20 and $0.25 for the full fiscal year.
"The tighter credit policies posed a short-term challenge for China Shenghuo, but we have since replaced these customers with larger, more established buyers, which should help to bolster sales during the typically strong fourth quarter," stated Lan Guihua, Chairman and Chief Executive Officer of China Shenghuo.
Investors were clearly displeased with the results. After reaching an all-time high of US$16.35 on Oct. 4th, shares had slid over 38% to US$6.24 as of Nov. 13th. In front of the earnings report, shares rose 17.3% to close at US$7.32. The surprise revenue shortfall and negative guidance were met with brisk selling by investors today, with shares falling over 25% to close at US$5.45. With investors lacking visibility as to the revenue picture, shares of China Shenghuo will likely remain under pressure in a difficult market.
http://seekingalpha.com/article/54494-china-shenghuo-pharmaceutical-hit-on-revenue-decline?source=yahoo
OT - Good luck Surf. you check out QSC? Got a few beautiful ones in the doghouse... that AGO chart is sick and wrong.
Bought some KUN in AH's trading around $5.40, see what happens on Thursday!
China Shenghuo Reports Third Quarter 2007 Financial Results
Wednesday November 14, 4:17 pm ET
KUNMING, China, Nov. 14 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. ("China Shenghuo") (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"), announced its financial results for the third quarter ended September 30, 2007.
Third Quarter 2007 Results
In the third quarter of 2007, net sales were to $4.2 million, compared to $5.1 million in the same quarter of 2006. Sales of Xuesaitong Soft Capsules, the Company's primary product, accounted for more than 80% of total sales, unchanged from a year ago. The decline in sales resulted from the Company's adoption of more stringent credit policies, which caused a shift in its customer base and led to a decline in sales volume.
"The tighter credit policies posed a short-term challenge for China Shenghuo, but we have since replaced these customers with larger, more established buyers, which should help to bolster sales during the typically strong fourth quarter," said Mr. Lan Guihua, Chairman and Chief Executive Officer of China Shenghuo. "Despite the short-term topline decline, we continue to see new opportunities, such as the recent launch of our 12Ways® Herbal Skin Care products and continued development of our Wei Dinkang Soft Capsules and other new products."
http://biz.yahoo.com/prnews/071114/cnw059.html?.v=1
Heya Surf... liking this one... may add it to the Doghouse if you don't mind.
KUN is coming off a huge spike and your right there is little trading history for the stock. It looks like you may get a bounce off the 50 DMA trend line at around $7.16, if that fails you could drop to $6 and thats seems to be the downside risk in this move. The upside is several points from current levels and even a double if traders roll back into the small cap China stock play. I would just hold here and give it some time to decide what it is going to do.
surf
Can someone provide an updated analysis?
What do you think the direction of this stock will be in the near future. It's hard to judge as there isn't that much information out + the stock hasn't been trading long. I would really like to see an analysis by someone much more experienced then I (begginer). I've been holding since 9.50 or so, and am tempted to jump out on monday if it goes any lower. Opinions appreciated. Thanks!
China Shenghuo Pharmaceutical Holdings, Inc. Opens Showcase 12Ways(R) Chinese Herbal Beauty Salon in October
KUNMING, China, Oct. 16 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. ('China Shenghuo,' 'the Company') (Amex: KUN), 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 announced its showcase 12Ways(R) Chinese Herbal Beauty Salon ('Salon') debuted in Kunming, China, on October 10, 2007.
Accented with traditional Chinese decor, the Company's first full-service Salon is located in Xiao Xi Men, one of the major commercial districts in Kunming, which attracts more than 400,000 people each day. Unlike China Shenghuo's previous salons, this centerpiece, free-standing store is the first of its salons to offer traditional Chinese medicine services. It is expected to be used as a training center in the future.
The 12Ways Chinese Herbal Beauty Salon features more than 10 traditional Chinese medicine practitioners and beauticians skilled in a variety of services, including acupuncture, body massage, foot massage and other services. In the Salon, every customer has an advisor to track her improvement and give personal suggestions. The solutions provided by advisors include Chinese culture lectures, Chinese medicinal beauty treatment, cosmetics, dietary treatment, health food and proper physical exercises for each patron, who is looking for healthy beauty.
All products used in the salon will be supplied by Shenghuo Cosmetics Company, a subsidiary of China Shenghuo Pharmaceutical. In addition, the professionals will instruct customers in the appropriate dietary supplements to treat any symptoms discovered during a traditional Chinese medical diagnosis.
'We are very excited for the debut of the 12Ways Chinese Herbal Beauty Salon,' said Mr. Gui Hua Lan, China Shenghuo's Chairman and Chief Executive Officer. 'This new showroom furthers our strategy to fully introduce 12Ways products to our core consumers, women who are seeking healthy beauty.'
After the initial Salon opening in Kunming, the Company plans to expand the business into a larger region of China during the next three years by opening retail counters at major pharmacy chains. Management believes this retail counter strategy will allow China Shenghuo to increase its brand recognition, as well as sell and market its newest cosmetics products developed using its expertise in traditional Chinese medicine.
12Ways caters to modern women, who are typically interested in products that are both effective and safe. The name was inspired by Chinese tradition, which says the number 12 connotes harmony and good luck. China Shenghuo has set up three sales and marketing offices in Beijing, Guangzhou and Shanghai to better support sales in local regions.
About China Shenghuo Pharmaceutical Holdings, Inc.
Founded in 1995, China Shenghuo Pharmaceutical Holdings, Inc. ('China Shenghuo' or 'the 'Company') is a 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, China Shenghuo incorporates a sales network of agencies and representatives throughout China, which markets Sanchi-based traditional Chinese medicine to hospitals and 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, Russia and Kyrgyzstan.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain 'forward-looking statements,' as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. 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, market acceptance of the company's products, 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 open and operate retail specialty counters to offer its cosmetic products and conduct the company's business, cost of complying with current and future governmental regulations and the impact of any changes in the regulations on the Company's operations 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:
Ms. Gao Qionghua, CFO
China Shenghuo Pharmaceutical Holdings, Inc.
Tel: +86-87-1728-2608
Email: qionghua_kmsh@163.com
Crocker Coulson, President
CCG Elite Investor Relations
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
Source: PR Newswire (October 16, 2007 - 8:02 AM EST)
News by QuoteMedia
www.quotemedia.com
http://www.smartmoney.com/undertheradar/index.cfm?story=20071003&afl=yahoo
Traditional Chinese Remedy Maker Has Healthy Stock
By Paulette Miniter |Paulette Miniter Archive |Published: October 3, 2007
IN CHINA'S FAST modernizing economy, American Oriental Bioengineering (AOB: 11.71, +0.01, +0.08%) is one company hewing to ancient traditions — at least, when it comes to medicine.
Based in the city of Shenzhen, American Oriental makes medicine and supplements based on traditional Chinese medicine practices that use plants and minerals to alleviate ailments. While different from fare found in the average U.S. pharmacy, these products are part of a robust industry in China, where traditional medicines remain a popular choice over pricier Western drugs.
For investors looking to take advantage of China's growth, American Oriental is poised to benefit from the perfect storm of broader economic trends. The country's population is large and aging, while incomes are rising and the middle class burgeoning. What sets the company apart from its fellow U.S.-listed peers — Tongjitang Chinese Medicines (TCM: 10.80, -0.17, -1.54%) and China Shenghuo Pharmaceutical Holdings (KUN: 10.24, +3.53, +52.60%) — is that, thanks in part to an aggressive acquisition strategy, American Oriental has multiple brand-name products, national reach and a good-sized foot in both the over-the-counter and prescription markets.
While Chinese Internet stocks such as Sohu.com (SOHU: 39.15, -1.05, -2.61%) and Sina (SINA: 48.70, -0.30, -0.61%) have enjoyed more of the Wall Street limelight, China's pharmaceutical industry is starting to catch up. A recent report out of PricewaterhouseCoopers says that a solid majority of multinational and U.S. companies believe Asia is quickly becoming the center of gravity in the pharmaceutical market.
MORE ON STOCKS FROM SMARTMONEY.COM
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"The Chinese pharmaceuticals industry is modernizing," William Lyons, director of equity research at Westminster Securities, said in an Aug. 21 note.
Traditional Chinese medicine is a more than $6 billion industry in China and accounts for 21% of all pharmaceutical spending in the country, according to Piper Jaffray analyst Gur Roshwalb.
American Oriental is easily one of the stronger contenders in the sector. Since the company listed its shares in the U.S. in July 2005, its profits and revenue have nearly tripled. In the second quarter, revenue grew 49% to $33.9 million and earnings rose 66% to $9.7 million, not including foreign-currency translation. The company's products include a soft gel formulated from the shinyleaf yellowhorn plant that's designed to alleviate bed-wetting, and an antiviral powder derived from weeping forsythia and other flowering plants.
Despite convincing financial results, American Oriental shares have been under the weather of late. Year to date, the stock is down nearly 4% at $11.70 as of Tuesday's close.
Julie Chen, an analyst at Brean Murray Carret & Co., views the weakness as a buying opportunity and rates American Oriental as a top pick for this year. "It really is capitalism at its best in China," Chen says.
http://ipo.nasdaq.com/Fundamentals.asp?cikid=681721&fnid=51745&coname=CHINA+SHENGHUO+PHARMAC...
Initial Public Offerings
[Key Data] Key Data [Financials] [Filings] [Experts]
KUN
KUN
CHINA SHENGHUO PHARMACEUTICAL HOLDINGS INC American Stock Exchange
Company Name : CHINA SHENGHUO PHARMACEUTICAL HOLDINGS INC
Company Address : NO. 2, JING YOU ROAD
KUNMING NATIONAL ECONOMY &
TECHNOLOGY DEVELOPING DISTRICT 00000
Company Phone : 0086-871-7282628
Company Website : —
CEO : Gui Hua Lan
Employees (as of 3/31/2007) : 838
State of Inc. : DE
Fiscal Year End : December 31
View Company Description
View Full Business Description
View Use of Proceeds
View Competition/Competitors
Status : Priced (6/14/2007)
Proposed Symbol : KUN
Exchange : American Stock Exchange
Share Price : $3.50
Shares Offered : 400,000
Offer Amount : $1,400,000
Total Expenses : $191,800
Shares Over Alloted :
Shareholder Shares Offered :
Shares Outstanding : 19,519,400
Lockup Period (days) : 180
Lockup Expiration : 12/11/2007
Quiet Period Expiration : 7/9/2007
CIK : 0001335106
Copyright 2006, EDGAR Online, Inc. All rights reserved. Replication or redistribution of EDGAR Online, Inc. content is expressly prohibited without the prior written consent of EDGAR Online, Inc. EDGAR Online, Inc. shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
China Shenghuo Pharmaceutical Holdings, Inc. Begins Full-Scale Launch of 12Ways(R) Chinese Herbal Skin Care Product Line
KUNMING, China, Sept. 13 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. ('China Shenghuo,' 'the Company') (Amex: KUN), 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 announced it began the full-scale launch of its 12Ways(R) Chinese herbal skin care products ('12Ways') on Sunday, September 9, 2007.
'We are excited about the launch of our 12Ways product line, and we expect it to be another profit driver in addition to our flagship product, Xuesaitong Soft Capsules, during the 2008 fiscal year,' said Mr. Gui Hua Lan, China Shenghuo's Chairman and Chief Executive Officer.
The 12Ways series is based on the use of traditional Chinese herbs, such as Sanchi, Tuckahoe, and Salvia miltiorrhiza. The planned full-scale launch includes 34 products in seven categories, including: a group of Sanchi-based skin moisturizers; a Salvia-based fading cream; a skin lightener; Yunnan bamboo-based acne treatment; an anti-aging cream that utilizes eucommia ulmoide; sunscreen; and dietary supplements.
'Our 12Ways series contains natural elements and provides solutions for women who look for healthy beauty,' Mr. Lan added.
12Ways caters to 25 to 40-year-old women, who are typically interested in products that are both effective and safe. China Shenghuo has set up three sales and marketing offices in Beijing, Guangzhou and Shanghai to better support sales in local regions.
The Company, which intends to distribute its 12Ways skin care products in major pharmacy chains in China, unveiled the new products at the 'Forum of Marketing on Chinese Pharmaceutical Cosmetics' on Sunday, September 9, 2007 in Dongguan, Guangdong Province. The forum included presentations by Chinese pharmaceutical industry experts and members of China Shenghuo's management team. Major national pharmacy chains were invited to the forum, which was hosted by the South Pharmaceutical Economic Research Institute.
The Company previously marketed this new line only in its native Yunnan province. Sunday's event was 12Ways' first full-scale launch into a number of cities and provinces outside China Shenghuo's local region.
China Shenghuo hopes to open a number of retail specialty counters to offer its cosmetic products at pharmacies throughout Eastern China by the first half of 2008, eventually expanding its retail presence across China. Management believes this retail counter strategy will allow China Shenghuo to increase its brand recognition, as well as sell and market its newest cosmetics products developed using its expertise in traditional Chinese medicine.
About China Shenghuo Pharmaceutical Holdings, Inc.
Founded in 1995, China Shenghuo Pharmaceutical Holdings, Inc. ('China Shenghuo' or 'the 'Company') is a 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, China Shenghuo incorporates a sales network of agencies and representatives throughout China, which markets Sanchi-based traditional Chinese medicine to hospitals and 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, Russia and Kyrgyzstan.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain 'forward-looking statements,' as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. 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, market acceptance of the company's products, 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 open and operate retail specialty counters to offer its cosmetic products and conduct the company's business, cost of complying with current and future governmental regulations and the impact of any changes in the regulations on the company's operations 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
Email: qionghua_kmsh@163.com
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
Source: PR Newswire (September 13, 2007 - 8:00 AM EST)
News by QuoteMedia
www.quotemedia.
China Shenghuo Pharmaceutical Holdings, Inc. (AMEX:KUN)
Company Financials
Income Statement
Balance Sheet
Cash Flow Statement
Contact Information
China Shenghuo Pharmaceutical Holdings, Inc.
No. 2, Jing You Rd.
Kunming, Yunnan, China
Tel. +86-871-728-2628
Type: Public
Employees: 800
China Shenghuo Pharmaceutical Holdings blends traditional Chinese medicine with modern pharmacology to treat the ills of the East. The company makes a variety of pharmaceutical, nutritional, and cosmetic products using Panax notoginseng as its primary ingredient. Xuesaitong Soft Capsules account for 80% of company sales and are used in the treatment cardiovascular and cerebrovascular disease. Other prescription products treat headaches, cold and flu symptoms, and rheumatoid arthritis, while its over-the-counter products include supplements, vitamins, and health-promoting preparations. China Shenghuo Pharmaceutical sells substantially all of its products in China.
Key numbers for fiscal year ending December, 2006:
Sale: $20.0M
One year growth: 80.3%
Net income: $3.0M
Income growth: 77.5%
Officers:
Chairman and CEO: Gui Hua Lan
President and Director: Feng Lan
Executive Director Sales: Lei Lan
Competitors:
Beijing Tongrentang
Shineway Pharmaceutical
Sanjiu Enterprise Group
China Shenghuo Reports Record Second Quarter 2007 Financial Results
KUNMING, China, Aug. 16 /Xinhua-PRNewswire-FirstCall/ -- China Shenghuo Pharmaceutical Holdings, Inc. ('China Shenghuo'; Amex: KUN) (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'), announced its financial results for the second quarter ended June 30, 2007.
Second Quarter 2007 Highlights
-- Net revenues increased 52.0% year-over-year and 46.9% quarter-over-
quarter to $6.4 million
-- Gross profit increased 81.5% year-over-year and 49.9% quarter-over-
quarter to $4.8 million
-- Gross margin increased to 75.1% from 62.9% a year ago
-- Net income increased 29.3% year-over-year to $1.3 million
Second Quarter 2007 Results
For the second quarter of 2007, net revenues increased 52.0% to $6.4 million from $4.2 million in the same quarter of 2006. Sales of Xuesaitong Soft Capsules, the Company's primary product, accounted for 80% of total sales, unchanged from a year ago. The increase in sales was attributed to improved sales in Beijing, Jiangsu and Henan provinces, increased control over the Company's sales and distribution network, sales price increases and increased commissions designed to stimulate sales. Sequentially, revenues increased 46.9% from the first quarter of 2007.
'The second quarter demonstrated the early positive impact of our revenue growth strategy as we improved both sales and gross profit,' said Mr. Lan Guihua, Chairman and Chief Executive Officer of China Shenghuo. 'The market has been receptive to our product offerings, and the expansion of our sales network in areas such as Beijing and Shanghai has generated new sources of revenue.'
Gross profit for the second quarter increased 81.5% to $4.8 million from $2.6 million a year ago. Gross margin was 75.1%, compared to 62.9% in the second quarter of 2006. The increased gross margin was attributed to an increase in sales prices. The Company believes that gross margin for the full year should be above 70%.
Selling expenses were $2.0 million, compared with $0.8 million a year ago, primarily because of the growth of the sales distribution network, the conversion from cash to accrual accounting, increased commissions to stimulate sales and increased marketing expenses related to the launch of the Company's new cosmetics line. The Company expects selling expenses for the full year should be in the range of 30% to 35% of sales going forward.
General and administrative expenses increased to approximately $1.4 million from $0.3 million in the same period the prior year. This was primarily due to an increase in the allowance for doubtful accounts of $0.7 million and $0.1 million in consulting fees related to the Company's June public offering.
Total operating expenses in the second quarter increased to $3.4 million from $1.2 million a year ago for the reasons outlined above.
Net income during the quarter was $1.3 million, or $0.07 per diluted share, compared with net income of $1.0 million, or $0.05 per diluted share, in the same quarter of 2006.
Six Month Results
Net revenues for the first six months of 2007 were $10.7 million, compared to revenues of $8.7 million during the same period a year ago. Gross profit was $8.0 million, or 74.5% of sales, up 45.0% from $5.5 million, or 63.4% of sales in the first half of 2006. Operating income was $2.0 million, or 18.3% of sales, down 27.4% from $2.7 million, or 31.2% of sales, in the first half of 2006. Net income for the first half of 2007 was $2.8 million, or $0.15 per diluted share, compared to net income of $1.9 million, or $0.11 per diluted share, in the same period of 2006.
Financial Condition
As of June 30, 2007, the Company had cash and cash equivalents of $1.9 million and working capital of $5.9 million. At June 30, 2007, the Company had $3.9 million in long-term debt and had shareholders' equity of $11.7 million.
Business Outlook
For the 2007 fiscal year, the Company expects revenues of between $24.0 million and $26.0 million and earnings of between $5.0 million and $6.0 million. The Company forecasts earnings per share of between $0.26 and $0.31 for the full fiscal year.
'We are pleased with the strong growth we have seen in our top line so far this year,' said Mr. Lan. 'As we look forward to the remainder of 2007, we expect our top-line growth to benefit from our investment in the new cosmetics line and expansion of our sales network. We plan to continue to develop new drugs such as our Wei Dingkang Soft Capsules, broaden our offering of OTC drug products, expand our sales network into new regions, and execute the nationwide launch of the new cosmetics line -- which we hope will be a significant growth driver in 2008 and beyond.'
Recent Events
On June 14, 2007, China Shenghuo began trading on the American Stock Exchange. Concurrent with its debut, the Company issued 460,000 shares of its common stock, generating $1.6 million in gross proceeds.
In July 2007, China Shenghuo completed the testing during Phase II clinical trials for its Wei Dingkang Soft Capsules. The Company is applying to the Yunnan Provincial Development and Reform Committee and Yunnan Agriculture Bureau to begin a pilot cultivation project to produce 72 tons per year of Daemonorops margaritae palms, the key ingredient used to produce Wei Dingkang Soft capsules, on 3.35 square kilometers of land.
About China Shenghuo Pharmaceutical Holdings, Inc.
China Shenghuo is primarily engaged in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic products. Almost all of our products are derived from the medicinal herb Panax notoginseng, also known as Sanqi, Sanchi or Tienchi. Panax notoginseng is a greyish-brown or greyish-yellow plant that only grows in a few geographic locations on Earth, one of which is Yunnan Province in southwest China, where the Company is located. Panax notoginseng saponins (PNS), the active ingredients in Panax notoginseng, are extracted from the plant using high-tech equipment and in accord with Good Manufacturing Practice (GMP) standards. Our main product, Xuesaitong Soft Capsules, accounted for more than 80% and 90% of sales for the years ended December 31, 2006 and 2005, respectively. Since its establishment, the Company has focused primarily on the development of products to serve three major markets-cardiovascular and cerebrovascular disease, peptic ulcer disease and health products. China Shenghuo's goal has been to focus on the development of pharmaceutical products and over the counters products based on traditional Chinese medicines designed to address these areas.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain 'forward-looking statements,' as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. 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, market acceptance of the company's products, changes in the laws of the People's Republic of China that affect the company's operations, any recurrence of severe acute respiratory syndrome or avian flu, the company's ability to obtain all necessary government certifications and/or licenses to conduct the company's business, development of a public trading market for the company's securities, cost of complying with current and future governmental regulations and the impact of any changes in the regulations on the company's operations 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 risks included here are not exhaustive. Furthermore, our forward looking statements regarding the levels of our gross margin and selling expenses for the full year are subject to fluctuation and no assurance can be given that these levels will be met. 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. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of the Company's future performance.
- FINANCIAL TABLES FOLLOW -
CHINA SHENGHUO PHARMACEUTICAL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
For the Three Months For the Six Months
Ended June 30, Ended June 30,
(Unaudited)
2007 2006 2007 2006
Sale of Products $6,356,217 $4,181,685 $10,683,342 $8,654,206
Cost of Products Sold 1,580,478 1,550,138 2,722,176 3,163,555
Gross Profit 4,775,739 2,631,547 7,961,166 5,490,651
Operating Expenses:
Selling expense 2,031,590 763,481 3,634,414 1,715,147
General and
administrative expense 1,388,866 346,594 2,362,471 1,031,843
Research and development
expense 2,472 40,646 5,349 45,404
Total Operating Expenses 3,422,928 1,150,721 6,002,234 2,792,394
Income from Operations 1,352,811 1,480,826 1,958,932 2,698,257
Other Income (Expense):
Interest income 2,804 1,180 9,266 2,205
Non-operating income 79,786 18,692 81,004 71,148
Interest expense (209,458) (163,446) (389,641) (370,372)
Non-operating expenses -- (9) -- (4,881)
Net Other Expense (126,868) (143,583) (299,371) (301,900)
Income Before Income
Taxes 1,225,943 1,337,243 1,659,561 2,396,357
Benefit from (provision
for) income taxes 172,769 (210,121) 1,310,247 (438,123)
Minority interest in
income of subsidiaries (80,876) (107,935) (178,796) (107,935)
Net Income $1,317,836 $1,019,187 $2,791,012 $1,850,299
Foreign currency
translation adjustment 189,062 15,425 274,797 29,193
Comprehensive Income $1,506,898 $1,034,612 $3,065,809 $1,879,492
Basic and Diluted
Earnings Per Share $0.07 $0.05 $0.15 $0.11
Weighted-Average Shares
Outstanding:
Basic 19,175,004 19,119,400 19,147,356 6,256,000
Diluted 19,228,838 19,119,400 19,200,691 16,256,000
CHINA SHENGHUO PHARMACEUTICAL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
June 30, 2007 2006
ASSETS: (unaudited)
Current Assets:
Cash and cash equivalents $1,878,092 $3,691,438
Restricted cash 118,687 474,576
Accounts receivable, less allowance for
doubtful accounts of $2,256,761 at June 30,
2007 and $794,468 at December 31, 2006,
respectively 13,323,954 9,907,184
Employee advances, less allowance for
doubtful accounts of $1,438,998 and
$1,429,426 at June 30, 2007 and
December 31, 2006, respectively 4,707,362 3,130,045
Advances to suppliers 262,692 46,620
Inventory, net of reserve for obsolescence
of $117,346 and $111,128 at June 30, 2007
and December 31, 2006, respectively 3,483,491 2,581,519
Receivable from related parties 608,919 76,751
Other current assets 40,929 17,454
Total Current Assets 24,424,126 19,925,587
Property, plant and equipment, net of
accumulated depreciation of $3,745,486
and $3,333,305 at June 30, 2007 and
December 31, 2006, respectively 7,471,569 7,554,747
Intangible assets, net of accumulated
amortization of $32,173 and $22,569
at June 30, 2007 and December 31, 2006,
respectively 630,715 624,426
Deferred income taxes 878,656 655,223
TOTAL ASSETS $33,405,066 $28,759,983
Current Liabilities:
Accounts payable $1,497,344 $764,636
Accrued expenses 2,716,955 1,966,822
Deposits 2,167,766 1,573,426
Payable to related parties 79,582 393,213
Short-term notes payable 9,170,113 12,758,426
Advances from customers 204,365 342,531
Taxes and related payables 1,419,357 3,057,471
Current portion of long-term debt 1,311,510 --
Total Current Liabilities 18,566,992 20,856,525
Long-Term Debt 2,623,020 --
Total Liabilities 21,190,012 20,856,525
Minority Interest in Net Assets of
Subsidiaries 536,472 385,067
Stockholders' Equity:
Preferred stock, $0.0001 par value,
10,000,000 shares authorized, 0 shares
outstanding at June 30, 2007 and December 31,
2006, respectively -- --
Common stock, $0.0001 par value, 100,000,000
shares authorized, 19,579,400 and 19,119,400
shares issued and outstanding, respectively 1,958 1,912
Additional paid-in capital 5,923,969 4,829,633
Statutory reserves 147,023 147,023
Retained earnings 5,109,962 2,318,950
Other comprehensive income, foreign currency
translation 495,670 220,873
Total Stockholders' Equity 11,678,582 7,518,391
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $33,405,066 $28,759,983
CHINA SHENGHUO PHARMACEUTICAL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended June 30,
2007 2006
Cash Flows from Operating Activities:
Net income $2,791,012 $1,850,299
Adjustments to reconcile net income
to net cash provided
by operating activities:
Depreciation and amortization 332,839 341,936
Deferred income taxes (204,058) (98,226)
Minority interest in income of
subsidiaries 178,796 107,935
Change in current assets and
liabilities:
Accounts receivable (3,123,300) (4,800,828)
Employee advances (1,477,824) (211,224)
Advances to suppliers (211,970) (7,537)
Inventory (825,344) 1,174,740
Other current assets (23,170) 49,039
Accounts payable 703,676 115,515
Accrued expenses and deposits 1,238,609 (790,391)
Advances from customers (144,825) 39,487
Unearned revenue -- 4,452
Taxes and related payables (1,692,042) 1,369,807
Net Cash Used in Operating Activities (2,457,601) (854,996)
Cash Flows from Investing Activities:
Receivable from related parties (517,465) 104,143
Restricted cash 362,877 --
Capital expenditures (53,099) (95,450)
Net Cash (Used in) Provided by
Investing Activities (207,687) 8,693
Cash Flows from Financing Activities:
Payable to related parties (319,165) 1,249,991
Issuance of stock for cash 1,094,381 --
Proceeds from short and long-term
loans 9,145,423 6,917
Payments on short-term loans (9,121,972) (881,401)
Net Cash Provided by Financing
Activities 798,667 375,507
Effect of exchange rate changes on
cash 53,275 (12,732)
Net Decrease in Cash and Cash
Equivalents (1,813,346) (483,528)
Cash and Cash Equivalents at
Beginning of Period 3,691,438 1,488,438
Cash and Cash Equivalents at End of
Period $1,878,092 $1,004,910
Supplemental Information
Cash paid for interest $343,842 $402,021
For more information, please contact:
China Shenghuo Pharmaceutical Holdings, Inc.
Ms. Gao Qionghua, CFO
Phone: +86-871-7282608
Email: qionghua_kmsh@163.com
CCG Elite Investor Relations
Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
Source: PR Newswire (August 16, 2007 - 8:00 AM EST)
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www.quotemedia.com
China Shenghuo Pharmaceutical Doubles After Its IPO
posted on: June 18, 2007 | about stocks: KUN
China Shenghuo Pharmaceutical Holdings, Inc. (KUN) listed its shares on the American Stock Exchange on Thursday, June 14, after completing a very small, 400,000-share IPO that seems more like a private placement. The shares were priced at $3.50, led by the sole underwriter: WestPark Capital in Los Angeles.
WestPark was instrumental in forming the company in 2005.
Another 2.65 million shares were immediately listed as being for resale by selling shareholders. It was not clear from reports whether these shares had been placed. After the IPO, 19.5 million shares of Shenghuo are outstanding.
Among other activities for China Shenghuo, West Park brokered a private placement in 2005 of 2 million shares at $.90 each ($1.8 million gross proceeds), of which almost $200,000 went to West Park for its work.
Perhaps because of the small float, Shenghuo fared very well – in fact excellently – in open market trading. After opening at $4.40 on Thursday afternoon, the shares doubled over the IPO price in the next day and a half of trading. At the close on Friday, June 14, Shenghuo stood at an even $7.00, up $2.27 or 49% on the day. At 208,000 shares traded, volume was not particularly high, though that was just over 50% of the shares sold in the IPO. At $7 per share, the market is giving Shenghuo a value of $137 million.
In 2006, China Shenghuo made a profit of $3.6 million on $20 million of revenue. That works out to 17 cents per share.
In terms of business, China Shenghuo was formed in 1995. It combines traditional Chinese medicines with western pharmacology, building pharmaceutical, nutritional and cosmetic product lines around Panax notoginseng, a form of ginseng that invigorates and builds blood. A full 80% of its revenues come from Xuesaitong Soft Capsules, which are given to treat cardiovascular and cerebrovascular disease. It has a total of 31 state-approved medications. Almost all of its sales are in China, though small amounts of its drugs are exported to other countries in Asia.
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