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

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May 14, 2021, 16:30 ET

HAIKOU, China, May 14, 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