SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of ~~May~~August 2012

Commission File Number 001-33535

China Kanghui Holdings

(Translation of Registrant’s Name Into English)

No.1-8 Tianshan Road, Xinbei District

Changzhou, Jiangsu Province 213022, People’s Republic of China

(86-519) 8519-5556

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


China Kanghui Holdings

By:		/S/ JUNWEN WANG
Name:		Junwen Wang
Title:		Chief Financial Officer

Date: ~~May~~August 2421, 2012

China Kanghui Holdings Reports ~~First~~Second Quarter 2012 Financial Results

~~1Q12~~2Q12 Net Revenue Increased 2123.6% Year-Over-Year

~~1Q12~~2Q12 Net Income Increased 3524.07% Year-Over-Year

CHANGZHOU, ~~May~~August 2421, 2012 – ~~China~~ China Kanghui Holdings (NYSE: KH) (“Kanghui” or the “Company”), a leading domestic developer, manufacturer and marketer of orthopedic implants in China, today announced its unaudited financial results for the ~~first~~second quarter of 2012.

~~First~~Second Quarter 2012 Highlights

• Total net revenue for the ~~first~~second quarter of 2012 increased by 2123.6% year-over-year to ~~RMB82~~RMB101.71 million from ~~RMB68~~RMB81.08 million in the corresponding period of the prior year.

• Gross profit for the ~~first~~second quarter of 2012 increased by 2024.30% year-over-year to ~~RMB58~~RMB71.69 million from ~~RMB48~~RMB58.70 million in the corresponding period of the prior year.

• Operating income for the ~~first~~second quarter of 2012 increased by 527.73% year-over-year to ~~RMB31~~RMB38.57 million from ~~RMB29~~RMB30.84 million in the corresponding period of the prior year.

• Net income attributable to Kanghui for the ~~first~~second quarter of 2012 increased by 3524.07% year-over-year to ~~RMB29~~RMB34.78 million from ~~RMB22~~RMB27.09 million in the corresponding period of the prior year.

• Non-GAAP1 net income for the ~~first~~second quarter of 2012 increased by 3933.70% year-over-year to ~~RMB32~~RMB39.71 million from ~~RMB23~~RMB29.4 million in the corresponding period of the prior year.

¹	All non-GAAP measures exclude share-based compensation expenses. For further details on non-GAAP measures, please refer to the reconciliation tables and a detailed discussion of the Company’s use of non-GAAP information set forth elsewhere in this press release.

2 This announcement contains translations of certain Renminbi (“RMB”) amounts into US dollars (“$”) at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars as of and for the quarter ended ~~March~~June 3130, 2012 were made at the noon buying rate of RMB6.~~2975~~3530 to $1.00 on ~~March~~June 3029, 2012 in the City of New York for cable transfers in Renminbi per US dollar as certified for customs purposes by the Federal Reserve Bank of New York. The Company makes no representation that the Renminbi or US dollar amounts referred to in this press release could have been or could be converted into US dollars or Renminbi, at any particular rate or at all.

³	Each of the Company’s American Depositary Shares (“ADS”), which are traded on New York Stock Exchange, represents six of the Company’s ordinary shares.

4Mr. Libo ~~Beginning~~Yang, inChief ~~the~~Executive ~~first~~Officer ~~quarter~~of ~~2012~~the Company, instated, ~~accordance~~“We ~~with~~are ~~Accounting~~delighted ~~Standards~~that Kanghui’s ~~Update~~second ~~2011-05,~~quarter ~~the~~marked ~~Company~~another isstrong ~~presenting~~performance. ~~other~~Growth ~~comprehensive~~from ~~income~~trauma and ~~its~~spine ~~components~~sales inremained ~~the~~robust, ~~unaudited~~and ~~condensed~~we ~~consolidated~~further ~~Statement~~expanded ofour ~~Comprehensive~~product ~~Income.~~offerings ~~Other~~by ~~comprehensive~~launching ~~income~~our ~~mainly~~joint ~~consists~~reconstruction ofproduct ~~currency~~into ~~translation~~the ~~adjustments~~international ~~relating~~markets, towhile adding ~~translating~~another ~~some~~new ofspine ~~our~~product ~~subsidiaries’~~exclusively ~~financial~~marketed ~~statements~~in ~~from~~China. ~~their~~Domestic ~~functional~~sales ~~currency~~were strong, as we continued to ~~our~~gain ~~reporting~~momentum ~~currency,~~throughout ~~which~~China. isWith inunabated ~~the~~strong ~~United~~demand ~~States~~and ~~dollar.~~promising ~~The~~new ~~functional~~product ~~currency~~launches, ofwe ~~our~~believe ~~main~~we ~~subsidiaries~~are inwell ~~China~~positioned isfor sustained ~~the~~success ~~RMB~~going forward.”

MrMs. ~~Libo~~Sarah ~~Yang~~Wang, Chief ~~Executive~~Financial Officer of ~~the Company~~Kanghui, ~~stated~~commented, “WeI ~~are~~am ~~very~~proud ~~pleased~~ that Kanghui ~~once~~delivered ~~again~~our ~~delivered~~eighth ~~another~~consecutive strong ~~quarterly~~quarter ~~financial~~since ~~performance~~its ininitial ~~the~~public offering, with our first-ever quarter of ~~2012,~~recording ~~marking~~over ~~the~~RMB ~~seven~~100 million ~~consecutive~~in ~~strong~~net ~~quarter~~revenue. ~~since~~Our ~~our~~outstanding ~~IPO.~~growth Wein ~~focused~~net ~~strategically~~revenue, onalong ~~growing~~with ~~our~~double-digit ~~brand~~growth in ~~the~~key operating ~~important China market~~metrics, ~~and~~exemplify ~~thereby continued~~the tostrength ~~expand~~of our ~~market~~business ~~share~~model. ~~along~~Benefiting ~~with~~from ~~our~~the ~~robust~~strong domestic ~~revenue~~sales ~~growth in the first quarter~~ of ~~2012.~~our ~~During~~proprietary ~~the quarter~~products, weour ~~successfully~~gross ~~launched~~profit amargins ~~new~~continued ~~spine~~to ~~product~~exceed ~~that~~expectations, isand ~~seeing~~as ~~very~~we ~~good~~build ~~market~~on ~~uptake,~~this ~~and~~positive momentum, we ~~experienced significant~~are ~~growth~~incrementally more confident in ~~both~~outlook ~~our~~for ~~trauma~~the ~~and~~remainder ~~spine~~of ~~segments~~2012.”

~~Ms. Sarah~~Second ~~Wang,~~Quarter ~~Chief~~2012 Financial ~~Officer of Kanghui, commented, “Our strong first quarter financial results reflect our ability to consistently execute on our growth strategy. Leveraging our strong cash position~~ and ~~consistently~~Operating ~~positive cash flows, we further enhanced our competitive advantages by expanding our~~Results professional management team, domestic distribution network, and development of a broader product line. We are excited with having a very promising new product pipeline that we intend to launch during the remainder of 2012 and beyond.”

~~First~~Net ~~Quarter~~revenue increased by 23.6% year-over-year to RMB101.1 million ($15.9 million)2 in the second quarter of 2012 ~~Financial~~from ~~and~~RMB81.8 ~~Operating~~million ~~Results~~in the corresponding period of the prior year.

Net revenue ~~increased~~ by ~~21.6%~~product ~~year-over-year~~category: to RMB82.7 million ($13.1 million)2 in the first quarter of 2012 from RMB68.0 million in the corresponding period of the prior year. Net revenue from trauma products increased by 22.9% year-over-year to RMB51.6 million ($8.2 million) in the first quarter of 2012 from RMB42.0 million in the corresponding period of the prior year. Net revenue from spine products increased by 34.9% year-over-year to RMB25.9 million ($4.1 million) in the first quarter of 2012 from RMB19.2 million in the corresponding period of the prior year. Net revenue from OEM products decreased by 23.5% year-over-year to RMB5.2 million ($0.8 million) in the first quarter of 2012 from RMB6.8 million in the corresponding period of the prior year. Domestic sales of proprietary products increased by 28.5% year-over-year to RMB64.4 million ($10.2 million) in the first quarter of 2012 from RMB50.1 million in the corresponding period of the prior year, while international sales of proprietary products increased by 18.0% year-over-year to RMB13.1 million ($2.1 million) in the first quarter of 2012 from RMB11.1 million in the corresponding period of the prior year.

InNet revenue from trauma products increased by 25.3% year-over-year to RMB59.5 million ($9.4 million) in the ~~first~~second quarter of 2012, ~~cost~~from RMB47.5 million in the corresponding period of the prior year. Net revenue from spine products increased by 24.93% year-over-year to ~~RMB24~~RMB32.17 million ($35.81 million) in the second quarter of 2012 from ~~RMB19~~RMB26.3 million in the corresponding period of the prior year. ~~Gross~~Net ~~profit~~revenue from OEM products increased by 2011.3% year-over-year to ~~RMB58~~RMB8.69 million ($91.34 million) in the ~~first~~second quarter of 2012 from ~~RMB48~~RMB8.70 million in the corresponding period of the prior year. ~~Gross~~Joint ~~margin~~Reconstruction ~~for~~products ~~the~~initialed ~~first~~sales ~~quarter~~in ofJune, ~~2012~~and ~~was~~generated ~~70.9%,~~net ~~compared~~revenue toof ~~71.6%~~RMB102,000 ($16,000) in the ~~corresponding~~second ~~period~~quarter of ~~the prior year~~2012.

~~Selling~~Net ~~expenses~~revenue ~~increased~~ by ~~40.0%~~geographic ~~year-over-year~~markets: to RMB9.8 million ($1.6 million) in the first quarter of 2012 from RMB7.0 million in the corresponding period of the prior year. General and administrative expenses increased by 36.5% year-over-year to RMB14.2 million ($2.3 million) in the first quarter of 2012 from RMB10.4 million in the corresponding period of the prior year. Research and development expenses increased by 106.7% year-over-year to RMB3.1 million ($0.5 million) in the first quarter of 2012 from RMB1.5 million in the corresponding period of the prior year.

~~Operating~~Domestic ~~income~~sales of proprietary products increased by 534.7% year-over-year to ~~RMB31~~RMB77.56 million ($512.02 million) in the ~~first~~second quarter of 2012 from ~~RMB29~~RMB57.86 million in the corresponding period of the prior year., ~~Operating~~while ~~margin~~international sales of proprietary products decreased toby 388.17% year-over-year to RMB14.7 million ($2.3 million) in the ~~first~~second quarter of 2012 from 43RMB16.8%1 million in the corresponding period of the prior year. The decrease in international sales was primarily attributable to the Company’s strategic shift in production to fulfill the strong domestic orders, as well as lower sales in the Middle East due to the region’s political instability.

~~Income~~4 ~~tax~~Beginning ~~expense~~ in the first quarter of 2012, ~~was~~in ~~RMB6.3~~accordance ~~million~~with ~~($1.0~~Accounting ~~million)~~Standards Update 2011-05, ~~representing~~the anCompany ~~effective~~is ~~tax~~presenting ~~rate~~other comprehensive income and its components in the unaudited condensed consolidated Statement of 17Comprehensive Income.~~7%,~~ ~~compared~~Other tocomprehensive an income ~~tax~~mainly ~~expense~~consists of ~~RMB9.0~~currency ~~million~~translation inadjustments relating to the ~~corresponding period~~translation of our subsidiaries’ financial statements from their functional currency to our reporting currency, which is in the ~~prior~~United ~~year~~States dollar. The functional currency of our main subsidiaries in China is the RMB.

~~Net~~In ~~income was RMB29.7 million ($4.7 million) in~~ the ~~first~~second quarter of 2012, ~~representing~~cost a of revenue increased by 23.2% year-over-year ~~increase~~to ofRMB29.2 35million ($4.0%6 million) from ~~RMB22~~RMB23.07 million in the corresponding period of the prior year. OnGross aprofit ~~diluted~~increased ~~per ADS3~~by ~~basis,~~24.0% ~~the~~year-over-year ~~Company~~to ~~reported net income per diluted ADS of RMB1~~RMB71.159 million ($011.183 million) in the ~~first~~second quarter of 2012, ~~compared~~from toRMB58.0 amillion ~~net~~in ~~income~~the ~~per~~corresponding period ~~diluted~~of ~~ADS~~the prior year. Gross margin for the second quarter of ~~RMB0~~2012 was 71.871%, compared to 71.0% in the corresponding period of the prior year.

~~Non-GAAP~~Selling ~~net income, which excludes share based compensation~~ expenses, ~~increased~~decreased by 391.7% year-over-year to ~~RMB32~~RMB11.76 million ($51.28 million) in the second quarter of 2012 from ~~RMB23~~RMB11.48 million in the corresponding period of the prior year. ~~The~~General ~~Company~~and ~~reported~~administrative ~~non-GAAP~~expenses ~~net~~increased ~~income~~by ~~per~~28.4% ~~diluted~~year-over-year ~~ADS~~to ~~of RMB1~~RMB18.261 million ($02.208 million) in the ~~first~~second quarter of 2012, ~~compared~~from toRMB14.1 amillion ~~non~~in the corresponding period of the prior year. Research and development expenses increased by 88.9% year-~~GAAP~~over-year ~~net~~to ~~income~~RMB3.4 ~~per~~million ~~diluted~~($0.5 ~~ADS~~million) in the second quarter of ~~RMB0~~2012 from RMB1.938 million in the corresponding period of the prior year.

~~During~~Operating ~~the~~income ~~first~~increased ~~quarter~~by of27.3% ~~2012,~~year-over-year ~~the~~to ~~Company~~RMB38.7 ~~had~~million a($6.1 ~~weighted~~million) ~~average~~in ~~diluted~~the ~~share~~second ~~count~~quarter of ~~155~~2012 from RMB30.0 4 million ~~shares~~in ~~(equivalent~~the tocorresponding 25period of the prior year.~~8 million~~ Operating ~~ADSs),~~margin ~~compared~~increased to ~~150~~38.~~9 million~~3% ~~shares~~in ~~(equivalent~~the tosecond 25quarter of 2012 from 37.2 ~~million~~% ~~ADSs)~~ in the corresponding period of the prior year.

Income tax expense in the second quarter of 2012 was RMB6.5 million ($1.0 million), representing an effective tax rate of 15.8%, compared to an income tax expense of RMB3.8 million, and an effective tax rate of 12.0% in the corresponding period of the prior year.

Net income attributable to China Kanghui Holdings was RMB34.8 million ($5.5 million) in the second quarter of 2012, representing a year-over-year increase of 24.7% from RMB27.9 million in the corresponding period of the prior year. On a diluted per ADS3 basis, the Company reported net income per diluted ADS of RMB1.33 ($0.21) in the second quarter of 2012, compared to a net income per diluted ADS of RMB1.09 in the corresponding period of the prior year.

Non-GAAP net income, which excludes share-based compensation expenses, increased by 33.0% to RMB39.1 million ($6.2 million) from RMB29.4 million in the corresponding period of the prior year. The Company reported non-GAAP net income per diluted ADS of RMB1.50 ($0.24) in the second quarter of 2012, compared to a non-GAAP net income per diluted ADS of RMB1.11 in the corresponding period of the prior year.

During the second quarter of 2012, the Company had a weighted average diluted share count of 156.3 million shares (equivalent to 26.1 million ADSs), compared to 153.7 million shares (equivalent to 25.6 million ADSs) in the corresponding period of the prior year.

Balance Sheet

As of ~~March~~ June 3130, 2012, the Company had cash and cash equivalents of ~~RMB324~~RMB432.21 million ($5168.50 million), compared to RMB380.1 million as of December 31, 2011. As of ~~March~~June ~~31,~~30 2012, the Company held short-term investments of ~~RMB111~~RMB10.93 million ($171.86 million), compared to RMB77.0 million as of December 31, 2011.

Business Outlook

Mr. Yang added, “~~The~~Our ~~strong~~solid ~~first~~performance ~~quarter~~in ~~provides~~the usfirst ~~with~~half ~~good~~of ~~momentum~~2012 ~~for~~and the ~~remainder~~recent ofsuccessful ~~2012.~~new ~~Following~~product ~~our~~launches ~~successful~~have ~~launch~~set ofthe astage ~~new~~for continued ~~spine~~success ~~product~~ in the ~~first~~remainder ~~quarter~~of 2012, weproviding ~~are~~us ~~launching~~with ~~one~~greater ~~additional~~comfort ~~spine~~in ~~product~~our intop ~~the~~line ~~second~~forecast. ~~quarter~~Moreover, ~~and~~reflecting ~~two~~on ~~new~~our ~~trauma~~strong ~~products~~gross margins and ~~three~~continuing ~~new~~discipline ~~joint products~~ in ~~the~~optimizing ~~second~~operations ~~half~~and ofcontrolling ~~2012.~~overhead ~~With our new joint products in place~~costs, we ~~expect~~are toslightly ~~kick~~raising ~~start~~ our ~~reconstructive~~full ~~joint~~year ~~segment in the second half of~~ 2012, ~~which~~guidance wefor ~~believe~~Non-GAAP ~~can~~net ~~become a major revenue driver of the Company going forward~~income.”

The Company ~~reiterates~~narrows ~~that~~its ittotal ~~anticipates~~net revenue outlook for full year 2012 ~~will~~to be in the range of ~~RMB392~~RMB395 million to RMB403 million, which represents year-over-year growth of 20.8% to 23.3%. The Company ~~also~~raises ~~estimates~~ its full year 2012 non-GAAP net income to bea inrange ~~the~~of ~~range~~RMB149 million to RMB154 million, from its prior expectation of RMB146 million to RMB153 million.

~~Non-Cash~~This ~~Share-Based~~guidance ~~Compensation~~is ~~Expenses~~based ~~Discussion~~on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

~~The Company recognized non~~Non-~~cash~~Cash ~~share~~Share-~~based~~Based ~~compensation~~Compensation Expenses ~~expenses of RMB3.0 million ($0.5 million) in the first quarter of 2012.~~

The Company recognized non-cash share-based compensation expenses of RMB4.4 million ($0.7 million) in the second quarter of 2012.

The Company classified these non-cash share-based compensation expenses in its costs of revenue, selling expenses, general and administrative expenses as well as in research and development expenses. The break out of these expenses per line item is provided in the financial tables attached to this press release.

The Company has provided a non-GAAP presentation of results, which excludes the non-cash share-based compensation expenses. Please refer to the non-GAAP presentation provided in the appendix for a year-over-year comparison of non-cash share-based compensation expenses. The Company believes that this non-GAAP presentation is a helpful tool for the Company to plan and forecast future periods and both management and investors benefit from referring to such non-GAAP presentation in assessing the performance of the Company.

Conference Call

Kanghui will hold a corresponding conference call and live webcast at 8:00 a.m. ET (8:00 p.m. Beijing Time) on ~~Friday~~Wednesday, ~~May~~August 2522, 2012 to discuss ~~first~~second quarter 2012 results and answer questions ~~from~~ from investors. Listeners may access the call by dialing:

US Toll Free:		1-866-519-4004
US Toll/International:		1-718-354-1231
Hong Kong Toll Free:		800-930-346
Hong Kong Toll:		852-2475-0994
China Toll Free:		800-819-0121
China Toll Free (Mobile):		400-620-8038
Conference ID:		~~76263126~~12464049

A replay of the webcast will be accessible through ~~June~~August 129, 2012 on http://ir.kanghui.com or by dialing:

United States toll free:		+1-866-214-5335
US Toll/International:		+1-718-354-1232
Passcode:		~~76263126~~12464049

About China Kanghui Holdings

Founded in 1997, Kanghui is a leading domestic developer, manufacturer and marketer of orthopedic implants in China. The Company offers a wide array of proprietary orthopedic implant products in trauma, spine and ~~spine~~joint reconstruction, and has an extensive nationwide network of distributors for its products in China, as well as in 29 other countries, as of June, 30, 2012. Kanghui has strong research and development capabilities, focused on developing new proprietary products and product lines, and enhancing existing products and product lines. For more information, please visit www.kanghui.com.

Use of Non-GAAP Financial Measures

The Company has included non-GAAP financial measures in this press release. Non-GAAP financial measures are defined as GAAP gross profit excluding non-cash share-based compensation expenses, operating income excluding non-cash share-based compensation expenses, net income excluding non-cash share-based compensation expenses, net margin excluding non-cash share-based compensation expenses, basic earnings per share and per ADS excluding non-cash share-based compensation expenses, and diluted earnings per share and per ADS excluding non-cash share-based compensation expenses. The Company believes that management and investors benefit from referring to the non-GAAP financial measures in assessing the performance of the Company and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing underlying business performance and operating trends. The use of non-GAAP financial measures has limitations and readers should not consider non-GAAP financial measures in isolation from or as alternatives to consolidated financial metrics prepared in accordance with U.S. GAAP. Readers are encouraged to refer to the reconciliation of non-GAAP measures to GAAP measures included herein.

Safe-Harbor Statement

This press release contains statements of a forward-looking nature, including, among other things, the Company’s unaudited operating results for 2012, expected new product introductions ~~and the respective timetable~~, the demand for ~~joint~~orthopedic ~~reconstruction~~ products in China, future prospects of the Company and the ability for the Company to realize its business plans for 2012. These forward-looking statements are not historical facts but instead represent only the Company’s belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. The actual results and other circumstances of the Company may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the ~~first~~second quarter of 2012 are preliminary, unaudited and subject to audit adjustment. Adjustments to the financial statements may be identified when audit work is performed for the year-end audit, which could result in significant differences from this preliminary unaudited financial information. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may include, but are not limited to, statements containing words such as “may,” “could,” “would,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “expects,” “intends” and “future” or similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to change at any time. These forward-looking statements are based upon management’s current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the Company’s control that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company’s actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including the Company’s beliefs regarding its strengths and strategies; the Company’s ability to expand its international business; the Company’s ability to develop and successfully market new products in China and internationally; the Company’s current expansion strategy, including its ability to expand its manufacturing and research and development facilities and capabilities and the Company’s future prospects, business development, results of operations and financial condition. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 20-F for the fiscal year 2011, as filed with the Securities and Exchange Commission on April 30, 2012, and are available on the Securities and Exchange Commission’s website at www.sec.gov. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see “Risk Factors” that begins on page 6 of the Company’s annual report for fiscal year 2011 and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission, which can be found on the Company’s website at www.kanghui.com or at www.sec.gov.

Investor Relations Contact Information

China Kanghui Holdings Investor Relations Department

+1-888-321-2558

Asia Bridge Capital Limited

~~Carene~~Wendy ~~Toh~~ Sun

+Tel: 86-~~186~~10-8556-9033 ~~1835~~(China) ~~6339~~1-888-321-2558 (U.S.)

~~carene~~Email: wendy.~~toh~~sun@asiabridgegroup.com

China Kanghui Holdings

Summary -– ~~First~~Second Quarter of 2012

(RMB in thousands, except for per share data and per ADS data)

	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
	2011		2012		2011		2012
	Unaudited		Unaudited		Unaudited		Unaudited
Net revenue		6781,~~975~~758		82101,~~713~~101		149,733		183,814
Gross profit		4858,~~716~~049		5871,~~572~~882		106,765		130,454
Non-GAAP gross profit		4858,~~766~~098		5872,~~605~~034		106,864		130,639
Operating income		2930,~~804~~374		3138,~~486~~721		60,178		70,207
Non-GAAP operating income		31,~~221~~912		3443,~~447~~087		63,133		77,534
Net income attributable to China Kanghui Holdings		2127,~~969~~879		2934,~~709~~766		49,848		64,475
Non-GAAP net income		2329,~~386~~417		3239,~~670~~132		52,803		71,802
Earnings per share -basic		0.16		0.21
Earnings per share – basic		0.20		0.25		0.36		0.46
Earnings per share -diluted		0.15		0.19
Earnings per share – diluted		0.18		0.22		0.33		0.41
Earnings per ADS -basic		0.96		1.27
Earnings per ADS – basic		1.21		1.48		2.17		2.75
Earnings per ADS -diluted		0.87		1.15
Earnings per ADS – diluted		1.09		1.33		1.96		2.49
Non-GAAP earnings per share -basic		0.17		0.23
Non-GAAP earnings per share – basic		0.20		0.28		0.38		0.51
Non-GAAP earnings per share -diluted		0.16		0.21
Non-GAAP earnings per share – diluted		0.18		0.25		0.35		0.46
Non-GAAP earnings per ADS -basic		1.03		1.40
Non-GAAP earnings per ADS – basic		1.23		1.67		2.30		3.06
Non-GAAP earnings per ADS -diluted		0.93		1.26
Non-GAAP earnings per ADS – diluted		1.11		1.50		2.08		2.77
- Revenue By Product Category
– Revenue By Product Category
Trauma		4247,~~030~~452		5159,~~572~~450		89,482		111,022
Spine		1926,~~194~~260		2532,~~893~~686		45,454		58,579
OEM		68,~~751~~046		58,~~248~~863		14,797		14,111
- Revenue by Business Sector
Joint Reconstruction		—		102		—		102
Domestic		50,109		64,316
– Revenue by Business Sector
International		11,115		13,149
Domestic		57,633		77,561		107,742		141,877
OEM		6,751		5,248
International		16,079		14,678		27,194		27,827
OEM		8,046		8,862		14,797		14,110

China Kanghui Holdings

Consolidated Balance Sheets

(Expressed in thousands)

Unaudited

As ofDecember 31,2011

As ofJune 30,2012

As ofDecember 31,2011

As ofMarch 31,2012

RMB Audited

RMB Unaudited

US$ Unaudited

RMB Audited

RMBUnaudited

US$Unaudited

Assets

Current assets:

Cash and cash equivalents

380,092

~~324~~432,~~202~~055

5168,~~481~~008

Bills receivable

5,873

34,~~052~~130

~~485~~650

Short-term investments

76,998

~~111~~10,~~862~~300

171,~~763~~621

Accounts receivable, net

87,578

~~110~~136,~~445~~619

1721,~~538~~505

Inventories, net

110,907

~~126~~134,~~007~~280

2021,~~009~~136

Prepayments and other current assets

13,428

13,~~763~~521

2,~~185~~131

Deferred tax assets

9,090

1012,~~583~~124

1,~~681~~908

Amount due from related parties

5,672

64,~~803~~189

~~1,080~~659

Total current assets

689,638

~~706~~747,~~717~~218

~~112~~117,~~222~~618

Non-current assets:

Property, plant and equipment, net

259,825

~~319~~316,~~232~~325

5049,~~692~~791

Intangible assets, net

62,026

6059,~~889~~857

9,~~669~~422

Prepaid land lease payments

22,812

22,~~690~~569

3,~~603~~552

Goodwill

155,341

24,~~667~~452

Long-term investment

25,204

25,190

4,000

Long-term investments

25,204

25,412

4,000

Deposits for non-current assets

4,731

65,~~331~~598

~~1,005~~881

Deferred tax assets

2,444

2,~~465~~335

~~391~~368

Other assets, non-current

257

~~135~~34

215

Total non-current assets

532,640

~~592~~587,~~273~~471

9492,~~048~~471

Total assets

1,222,278

1,~~298~~334,~~990~~689

~~206~~210,~~270~~089

Liabilities and equity

Current liabilities:

Accounts payable

19,278

2123,~~220~~812

3,~~370~~748

Accrued expenses and other liabilities

65,388

~~105~~98,~~321~~626

1615,~~724~~524

Income tax payable

5,800

8,~~378~~594

1,~~330~~353

Uncertain tax positions

4,197

4,~~152~~727

~~659~~744

Amount due to related parties

1,137

1,312

~~208~~207

Total current liabilities

95,800

~~140~~137,~~383~~071

2221,~~291~~576

Non-current liabilities:

Deferred government grants

6,409

63,~~290~~827

~~999~~602

Deferred tax liabilities

14,857

14,~~666~~474

2,~~329~~278

Total non-current liabilities

21,266

2018,~~956~~301

32,~~328~~880

Total liabilities

117,066

~~161~~155,~~339~~372

2524,~~619~~456

Commitments and contingencies

Equity:

Ordinary shares (par value of US$0.001 per share; 1,000,000,000 shares authorized as of December 31, 2011 and March 31, 2012 (unaudited); 140,401,842 shares issued and outstanding as of December 31, 2011 and 140,569,926 shares issued and outstanding as of March 31, 2012 (unaudited))

1,022

1,023

162

Ordinary shares (par value of US$0.001 per share; 1,000,000,000 shares authorized as of December 31, 2011 and June 30, 2012 (unaudited); 140,401,842 shares issued and outstanding as of December 31, 2011 and 141,204,612 shares issued and outstanding as of June 30, 2012 (unaudited))

1,022

1,027

162

Additional paid-in capital

912,972

~~916~~922,~~316~~625

145,~~505~~227

Accumulated other comprehensive loss

(19,604

)

(1918,~~646~~954

)

(32,~~120~~983

)

Statutory reserves

45,417

7,~~212~~149

Retained earnings

156,387

~~186~~220,~~096~~862

2934,~~551~~765

Total China Kanghui Holdings shareholders’ equity

1,096,194

1,~~129~~170,~~206~~977

~~179~~184,~~310~~320

Non-controlling interests

9,018

8,~~445~~340

1,~~341~~313

Total equity

1,105,212

1,~~137~~179,~~651~~317

~~180~~185,~~651~~633

Total liabilities and equity

1,222,278

1,~~298~~334,~~990~~689

~~206~~210,~~270~~089

China Kanghui Holdings

Consolidated Statements of Comprehensive Income

Expressed in thousands, except for number of shares and per share data

	Three Months Ended March 31,
	Three Months Ended June 30,									Six Months Ended June 30,
	2011			2012						2011			2012
	RMBUnaudited			RMBUnaudited			US$ Unaudited
	RMB			RMB			US$			RMB			RMB			US$
Net revenue		67,975			82,713			13,134
	Unaudited			Unaudited			Unaudited			Unaudited			Unaudited			Unaudited
Cost of revenue		(19,259	)		(24,141	)		(3,833	)
Net revenue		81,758			101,101			15,914			149,733			183,814			28,933
Gross profit		48,716			58,572			9,301
Cost of revenue		(23,709	)		(29,219	)		(4,599	)		(42,968	)		(53,360	)		(8,399	)
Operating expenses
Gross profit		58,049			71,882			11,315			106,765			130,454			20,534
Selling expenses		(6,988	)		(9,760	)		(1,550	)
Operating expenses
General and administrative expenses		(10,422	)		(14,207	)		(2,256	)
Selling expenses		(11,750	)		(11,648	)		(1,833	)		(18,738	)		(21,408	)		(3,370	)
Research and development expenses		(1,502	)		(3,119	)		(495	)
General and administrative expenses		(14,126	)		(18,131	)		(2,854	)		(24,548	)		(32,338	)		(5,090	)
Operating income		29,804			31,486			5,000
Research and development expenses		(1,799	)		(3,382	)		(532	)		(3,301	)		(6,501	)		(1,023	)
Interest income		1,719			3,867			614
Operating income		30,374			38,721			6,096			60,178			70,207			11,051
Government grants		2,706			151			24
Interest income		2,529			3,274			515			4,248			7,141			1,124
Other income		145			485			77
Government grants		484			132			21			3,190			283			45
Other expenses		(397	)		(357	)		(57	)
Other income		848			477			75			993			962			151
Foreign exchange loss		(3,008	)		(171	)		(27	)
Other expenses		(511	)		(1,471	)		(232	)		(908	)		(1,828	)		(288	)
Income before income taxes		30,969			35,461			5,631
Foreign exchange (loss) gain		(2,333	)		25			4			(5,341	)		(146	)		(23	)
Income taxes		(8,982	)		(6,324	)		(1,004	)
Income before income taxes		31,391			41,158			6,479			62,360			76,619			12,060
Net income		21,987			29,137			4,627
Income taxes		(3,779	)		(6,498	)		(1,023	)		(12,761	)		(12,822	)		(2,018	)
Net (income) loss attributable to non-controlling interests		(18	)		572			91
Net income		27,612			34,660			5,456			49,599			63,797			10,042
Net income attributable to China Kanghui Holdings		21,969			29,709			4,718
Net loss attributable to non-controlling interests		267			106			17			249			678			107
Earnings per share
Net income attributable to China Kanghui Holdings		27,879			34,766			5,473			49,848			64,475			10,149
Basic		0.16			0.21			0.03
Earnings per share
Diluted		0.15			0.19			0.03
Basic		0.20			0.25			0.04			0.36			0.46			0.07
Shares used in earnings per share computation
Diluted		0.18			0.22			0.04			0.33			0.41			0.07
Basic		136,828,869			140,440,413			140,440,413
Shares used in earnings per share computation
Diluted		150,864,399			155,007,387			155,007,387
Basic		138,702,487			140,757,363			140,757,363			137,770,862			140,598,892			140,598,892
Other comprehensive loss, net of tax4
Diluted		153,748,894			156,262,908			156,262,908			152,290,642			155,615,320			155,615,320
Foreign currency translation adjustment		(203	)		(42	)		(7	)
Other comprehensive (loss) income, net of tax4
Total other comprehensive loss, net of tax		(203	)		(42	)		(7	)
Foreign currency translation adjustments		(271	)		692			109			(474	)		650			102
Comprehensive income attributable to China Kanghui Holdings		21,766			29,667			4,711
Total other comprehensive (loss) income, net of tax		(271	)		692			109			(474	)		650			102
Share-based compensation charges incurred during the period related to:
Comprehensive income attributable to China Kanghui Holdings		27,608			35,458			5,582			49,374			65,125			10,251
Cost of revenue		50			33			5
Share-based compensation charges incurred during the period related to:
Selling expenses		112			136			22
Cost of revenue		49			152			24			99			185			29
General and administrative expenses		1,207			2,762			439
Selling expenses		109			468			74			221			604			95
Research and development expenses		48			30			5
General and administrative expenses		1,330			3,604			567			2,537			6,366			1,002
Total		1,417			2,961			471
Research and development expenses		50			142			22			98			172			27
Total		1,538			4,366			687			2,955			7,327			1,153

China Kanghui Holdings

Reconciliations of Non-GAAP Results to GAAP Results of Operations

(RMB in thousands, except for share, ADS, per share data and per ADS data)

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
	2011			2012			2011			2012
	Unaudited			Unaudited			Unaudited			Unaudited
Net revenue		6781,~~975~~758			82101,~~713~~101			149,733			183,814
Non-GAAP net income		2329,~~386~~417			3239,~~670~~132			52,803			71,802
Non-GAAP net margin		3436.40	%		3938.57	%		35.3	%		39.1	%
Share-based compensation		(1,~~417~~538	)		(24,~~961~~366	)		(2,955	)		(7,327	)
GAAP net income		2127,~~969~~879			2934,~~709~~766			49,848			64,475
GAAP net margin		3234.31	%		3534.94	%		33.3	%		35.1	%
Non GAAP earnings per share -basic		0.17			0.23
Non GAAP earnings per share – basic		0.20			0.28			0.38			0.51
Non GAAP earnings per share -diluted		0.16			0.21
Non GAAP earnings per share – diluted		0.18			0.25			0.35			0.46
Non GAAP earnings per ADS -basic		1.03			1.40
Non GAAP earnings per ADS – basic		1.23			1.67			2.30			3.06
Non GAAP earnings per ADS -diluted		0.93			1.26
Non GAAP earnings per ADS – diluted		1.11			1.50			2.08			2.77
GAAP earnings per share -basic		0.16			0.21
GAAP earnings per share – basic		0.20			0.25			0.36			0.46
GAAP earnings per share -diluted		0.15			0.19
GAAP earnings per share – diluted		0.18			0.22			0.33			0.41
GAAP earnings per ADS -basic		0.96			1.27
GAAP earnings per ADS – basic		1.21			1.48			2.17			2.75
GAAP earnings per ADS -diluted		0.87			1.15
GAAP earnings per ADS – diluted		1.09			1.33			1.96			2.49
Shares used in computation of:
Basic earnings per share		~~136~~138,~~828~~702,~~869~~487			140,~~440~~757,~~413~~363			137,770,862			140,598,892
Diluted earnings per share		~~150~~153,~~864~~748,~~399~~894			~~155~~156,~~007~~262,~~387~~908			152,290,642			155,615,320
Basic earnings per ADS		2223,~~804~~117,~~812~~081			23,~~406~~459,~~736~~561			22,961,810			23,433,149
Diluted earnings per ADS		25,~~144~~624,~~067~~816			2526,~~834~~043,~~565~~818			25,381,774			25,935,887
Non-GAAP operating income		31,~~221~~912			3443,~~447~~087			63,133			77,534
Non-GAAP operating margin		4539.90	%		4142.6	%		42.2	%		42.2	%
Share-based compensation		(1,~~417~~538	)		(24,~~961~~366	)		(2,955	)		(7,327	)
GAAP operating income		2930,~~804~~374			3138,~~486~~721			60,178			70,207
GAAP operating margin		4337.82	%		38.13	%		40.2	%		38.2	%
Non-GAAP gross profit		4858,~~766~~098			5872,~~605~~034			106,864			130,639
Non-GAAP gross margin		71.71	%		7071.92	%		71.4	%		71.1	%
Share-based compensation		(5049	)		(33152	)		(99	)		(185	)
GAAP gross profit		4858,~~716~~049			5871,~~572~~882			106,765			130,454
GAAP gross margin		71.70	%		7071.81	%		71.3	%		71.0	%

Filing Compare · China Kanghui Holdings