China Shenghuo Reports 2.36% Increase In Gross Profits

China Shenghuo has reported an increase of 2.36% in the gross profits to $5.7m for the second quarter, as against $5.6m for the same period in 2008. For the six month ended period, the company reported a gross profit of $10.2m, as compared to $8.9m for the same period of 2008.

The company’s revenues for the second quarter of 2009 decreased 5.37% to $8.13m, as compared to $8.59m for the same period in 2008.

Net loss for the second quarter was $3.78m, or $0.19 per basic and diluted share, compared to a net loss of $1.54m, or $0.08 per basic and diluted share for the same period of 2008. For the six month period, the company posted a net loss of $6.7m or $0.34 per basic and diluted share, compared to $2.3m, or $0.12 per basic and diluted share, for the same period of 2008.

Gui Hua Lan, chief executive officer of China Shenghuo, said: Despite the revenues for the second quarter of 2009 decreasing 5.37% compared to the revenues for the same period in 2008, revenues increased 20.08% when compared to the revenues for the first quarter of 2009. Our flagship Xuesaitong Soft Capsule and the innovative 12 Ways cosmetics products continued to produce meaningful growth in a difficult market environment.

Strong product-development capabilities, existing product pipelines and those products entering into clinical-research stages are helping to generate meaningful year-over-year top-line growth as we continue our efforts on expanding market share in the vast cardio- and cerebro-vascular market. On the other hand, we believe it is in our best-long term interest to grow our operations through the over-the-counter market, which will produce higher profit margins. We will therefore begin developing the OTC market in 2009 and we can expect a further expansion of OTC market in the second half of this year since we have achieved remarkable results so far. In addition, our 12 Ways cosmetics products give us greater revenue diversification that we did not have before. We are building a solid foundation which will help us to increase profitability and increase shareholder value going forward, he added.