China Shenghuo Announces Management Expansion and Enhanced Internal Controls
04 Marzo 2009 - 1:30PM
PR Newswire (US)
KUNMING, China, March 4 /PRNewswire-Asia-FirstCall/ -- China
Shenghuo 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 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 countries such as
Indonesia, Russia and Kyrgyzstan. For more information, please
visit http://www.shenghuo.com.cn/ . Safe Harbor Statement This
press release may contain 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, 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 China; protection of the 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; 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: Grayling Eddie Cheung Investor
Relations Tel: +1-646-284-9414 Email: DATASOURCE: China Shenghuo
Pharmaceutical Holdings, Inc. CONTACT: China Shenghuo
Pharmaceutical Holdings, Inc., Mr. Changhua Mu, Securities Affairs
Representative, +86-871-728-2698, or Grayling, Eddie Cheung,
Investor Relations, +1-646-284-9414, for China Shenghuo
Pharmaceutical Holdings, Inc. Web site: http://www.shenghuo.com.cn/
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