China Shenghuo Pharmaceutical Holdings (NYSE Alternext US: KUN) (??????(??)????) has resumed trading on the NYSE Alternext US exchange. In early action, the price of its shares was cut in half, dropping 98 cents (52%) to $.91.

The company’s stock was suspended from trading in late August because China Shenghuo was late in filing its financial statements. The company said two of its accounting personnel falsified records, issuing bogus employee advances and inflating the collection of trade receivables. In late November, China Shenghuo released restated financial reports for 2007 and the first three quarters of 2008.

Thus far in 2008, China Shenghuo is reporting that revenues are higher by 43% at $21.4 million. Unfortunately, expenses are rising faster than revenues, leaving the company with a net loss of $2.2 million. At the same point in 2007, the company reported positive earnings of $3.7 million or 19 cents per share.

China Shenghuo derives 90% of its revenues from Xuesaitong Soft Capsules, a TCM used to increase blood circulation. In January, the SFDA approved Tian Xin Soft Capsules, an OTC nutritional supplement. Like Xuesaitong Soft Capsules, the new product is based on the Sanchi root. The company has also begun a Phase III clinical trial for Wei Dingkang Soft Capsules, a TCM that treats peptic ulcer disease by inhibiting the growth of helicobacter pylori.

At the present price, China Shenghuo’s market capitalization has shrunk to $18 million, a little more than half of its expected 2008 revenues.