China Shenghuo Announces Management Expansion and Enhanced Internal Controls
Pharmaceutical Holdings, Inc. (NYSE Alternext US: KUN) (“China Shenghuo” or
the “Company”), today announced the expansion of its senior management team to
better align with the Company’s business outlook, to optimize operations, and
increase efficiencies across the organization. The Company expanded the number
of senior management personnel from 5 to 9 in preparation for the anticipated
growth in its sales and operations. Additional measures were implemented to
support, monitor and further enhance existing internal controls to strengthen
the Company’s reporting and governance.
Furthermore, the Company recently appointed two new independent directors
to the Company’s Board of Directors. Both new directors are experts in their
respective industry, namely, accounting and corporate finance, and research
and development in traditional Chinese medicine.
“An optimally structured senior management is vital as we recognize how
significant the next stage of development is for the Company. We have
installed senior level executives with specific areas of expertise to make us
a more effective company,” commented Mr. Gui Hua Lan, Chairman of China
Shenghuo. “It is also very important that we continue to strengthen our Board
with seasoned professionals experienced in drug development, the capital
markets, and corporate governance. The expanded management team will lead the
Company to become more efficient, and reinforces the Company’s commitment to
new drug development to attain the growth and performance targets we have
set.”
Senior management recently implemented a series of measures designed to
improve and strengthen its internal control framework. Of particular
importance are enhanced internal controls for financial reporting. In addition,
management made significant improvements in the transparency and efficiency
within each department. Each department is required to submit a set of
operational guidelines to senior management for approval and then strictly
adhere to these rules. Recognizing that improving the knowledge base of the
workforce strengthens the overall competitive position of the Company;
training programs have been made available to all employees. Courses in sales,
marketing and planning, research and development, production techniques, and
leadership training are offered. The educational programs are designed to
enhance employees’ performance within their department and the Company culture.
“It is imperative for the Company to improve its internal control systems
as it helps management obtain timely and accurate information to make both
tactical and strategic decisions. Effective internal controls are one of the
keys to accountability,” continued Mr. Lan. “Our improvements are focused on
making the new management structure more efficient so we achieve long-term
sustainable growth.”
“As we look ahead to the next four years, our expanded senior management
team has a mandate to foster the growth of our operations. The goal is for
management to achieve annual revenue and net income growth of 25% during this
period. The improved internal control measures will help us manage this
expected growth as well as minimizing our operating risk. We will leverage our
strength in R&D, production and sales to become an industrial leader in our
sector. We expect to finish the application for a new series of first-aid
medicines for the treatment of trauma. Our plan is designed to provide a
healthy drug pipeline to produce new drugs to the market,” concluded Mr. Lan.
About China Shenghuo
Founded in 1995, China Shenghuo is a specialty pharmaceutical company that
focuses on the research, development, manufacture and marketing of
Sanchi-based medicinal and pharmaceutical, nutritional supplement and cosmetic
products. Through its subsidiary, Kunming Shenghuo Pharmaceutical (Group) Co.,
Ltd., 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
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 countries such as
Safe Harbor Statement
This press release may contain certain “forward-looking statements,” as
defined in
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, risks of litigation and
governmental or other regulatory proceedings arising out of or related to any
of the matters described in recent press releases, including arising out of
the restatement of the Company’s financial statements; the Company’s
continuing ability to satisfy any requirements which may be prescribed by the
Exchange for continued listing on the Exchange; risks arising from potential
weaknesses or deficiencies in the Company’s internal controls over financial
reporting; the Company’s reliance on one supplier for Sanchi; the possible
effect of adverse publicity on the Company’s business, including possible
contract cancellation; the Company’s ability to develop and market new
products; the Company’s ability to establish and maintain a strong brand; the
Company’s continued ability to obtain and maintain all certificates, permits
and licenses required to open and operate retail specialty counters to offer
its cosmetic products and conduct business in
Company’s intellectual property rights; market acceptance of the Company’s
products; changes in the laws of
the Company’s operations; cost to the Company of complying with current and
future governmental regulations; the impact of any changes in governmental
regulations on the Company’s operations; general economic conditions; 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.
Mr. Changhua Mu
Securities Affairs Representative
Tel: +86-871-728-2698
Email: c.mu@chinashenghuo.net
Grayling
Eddie Cheung
Investor Relations
Tel: +1-646-284-9414
Email: echeung@hfgcg.com
SOURCE China Shenghuo Pharmaceutical Holdings, Inc.