China Pharma Holdings, Inc. Reports 33% YoY Increase in First Quarter 2021 Revenue


    HAIKOU, China, May 15, 2021 /PRNewswire/ -- China Pharma Holdings, Inc. (NYSE American: CPHI) ("China Pharma," the "Company" or "We"), a specialty pharmaceutical company, today announced financial results for the quarter ended March 31, 2021.

    Revenue increased by 33.7% to $2.4 million for the three months ended March 31, 2021, as compared to $1.8 million for the three months ended March 31, 2020.  This increase was mainly due to our gradual recovery from the negative impact of the COVID-19 pandemic compared to the condition in the first quarter 2020, as well as the impact of the exchange rate.Gross margin for the three months ended March 31, 2021 was 11.6% as compared to 11.0% during the same period in 2020, as the Company benefited from higher sales, a favorable mix and ongoing efforts to increase operating efficiency.

    Net Loss for the three months ended March 31, 2021 was $0.8 million or $0.02 per basic and diluted share, as compared to a net loss of $0.7 million or $0.02 per basic and diluted share for the same period a year ago. The increase in net loss was mainly the result of increased R&D investments in support of the Company's near and long-term growth strategy.

    Ms. Zhilin Li, China Pharma's Chairman and CEO, commented, "Our team remained focused during the COVID-19 pandemic and drove sales of our diversified product portfolio. With 20 existing products, we have added revenue stability, visibility and growth opportunities. We are even more excited about our pipeline and the multi-year positive catalysts we expect our new products to create.  In line with our long-term growth strategy, our latest product passed biological equivalents experiments of consistency evaluation in March 2021. We plan to submit relevant documentation and data to NMPA in the near future, as we advance towards commercialization."

    Ms. Li continued, "Overall, we are very positive in our outlook given the strong fundamentals of our business and market, including the favorable policies in Hainan Free Trade Port for the development, manufacture and commercialization of pharmaceutical and comprehensive healthcare products for the benefit of human health. We see considerable opportunities ahead of us and are working to accelerate our growth in specialty pharma and Traditional Chinese Medicine (TCM)."

    About China Pharma Holdings, Inc.

    China Pharma Holdings, Inc. (NYSE American: CPHI) is a specialty pharmaceutical company that develops, manufactures and markets a diversified portfolio of products, focusing on conditions with high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company's cost-effective business model is driven by market demand and supported by new GMP-certified product lines covering the major dosage forms. In addition, the Company has a broad and expanding nationwide distribution network across all major cities and provinces in China. The Company's wholly-owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., is located in Haikou City, Hainan Province. For more information about China Pharma Holdings, Inc., please visit www.chinapharmaholdings.com. The Company routinely posts important information on its website.

    Safe Harbor Statement 

    Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties may include, but are not limited to: the achievability of financial guidance; success of new product development; unanticipated changes in product demand; increased competition; downturns in the Chinese economy; uncompetitive levels of research and development; and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations, except as required by applicable law or regulation.

    - FINANCIAL TABLES FOLLOW -

    CHINA PHARMA HOLDINGS, INC.

    CONSOLIDATED BALANCE SHEETS









    March 31,


    December 31,



    2021


    2020

    ASSETS





    Current Assets:





    Cash and cash equivalents


    $         534,530


    $         957,653

    Banker's acceptances


    -


    53,736

    Trade accounts receivable, less allowance for doubtful





    accounts of $18,013,339 and $18,150,493, respectively


    545,094


    501,892

    Other receivables, less allowance for doubtful





    accounts of $27,289 and $27,289, respectively


    68,929


    27,652

    Advances to suppliers


    3,676


    2,238

    Inventory


    3,662,354


    3,705,119

    Prepaid expenses


    68,418


    73,668

    Total Current Assets


    4,883,001


    5,321,958






    Property, plant and equipment, net


    14,767,717


    15,564,200

    Operating lease right of use asset


    25,369


    49,687

    Intangible assets, net


    171,506


    182,146

    TOTAL ASSETS


    $    19,847,593


    $    21,117,991






    LIABILITIES AND STOCKHOLDERS' EQUITY





    Current Liabilities:





    Trade accounts payable


    $      1,111,639


    $      1,234,594

    Accrued expenses


    201,836


    177,359

    Other payables


    2,779,149


    2,748,208

    Advances from customers


    572,013


    719,786

    Borrowings from related parties


    2,183,846


    2,134,428

    Operating lease liability


    26,743


    52,070

    Construction loan facility


    2,130,476


    2,298,886

    Current portion of lines of credit


    2,023,953


    2,038,345

    Total Current Liabilities


    11,029,655


    11,403,676

    Non-current Liabilities:





    Lines of credit, net of current portion


    852,191


    904,228

    Deferred tax liability


    799,868


    805,556

    Total Liabilities


    12,681,714


    13,113,460

    Commitments and Contingencies (Note 9)





    Stockholders' Equity:





    Preferred stock, $0.001 par value; 5,000,000 shares authorized;





    no shares issued or outstanding


    -


    -

    Common stock, $0.001 par value; 95,000,000 shares authorized;





    45,579,557 shares and 43,579,557 shares issued and outstanding, respectively

    45,580


    45,580

    Additional paid-in capital


    24,452,684


    24,452,684

    Retained deficit


    (29,606,506)


    (28,839,179)

    Accumulated other comprehensive income


    12,274,121


    12,345,446

    Total Stockholders' Equity


    7,165,879


    8,004,531

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


    $    19,847,593


    $    21,117,991

     

     

    CHINA PHARMA HOLDINGS, INC.

    CONSOLIDATED STATEMENTS OF OPERATIONS

    AND COMPREHENSIVE INCOME (LOSS)











    For the Three Months




    Ended March 31,




    2021


    2020

    Revenue



    $         2,358,371


    $         1,763,955

    Cost of revenue



    2,085,641


    1,569,516







    Gross profit



    272,730


    194,439







    Operating expenses:






    Selling



    378,335


    326,095

    General and administrative



    408,998


    388,559

    Research and development



    190,086


    48,819

    Bad debt (benefit) expense



    (8,221)


    30,246

    Total operating expenses



    969,198


    793,719







    Loss from operations



    (696,468)


    (599,280)







    Other income (expense):






    Interest income



    406


    386

    Interest expense



    (71,265)


    (62,003)

    Net other expense



    (70,859)


    (61,617)







    Loss before income taxes



    (767,327)


    (660,897)

    Income tax benefit



    -


    -

    Net loss



    (767,327)


    (660,897)

    Other comprehensive loss - foreign currency






    translation adjustment



    (71,325)


    (197,032)

    Comprehensive income (loss)



    $           (838,652)


    $           (857,929)

     Loss per share: 






     Basic and diluted 



    $                 (0.02)


    $                 (0.02)

     Weighted average shares outstanding 



    45,579,557


    43,579,557

     

    Related Links :

    http://www.chinapharmaholdings.com

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