China Pharma Holdings, Inc. Reports Second Quarter 2021 Financial Results

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    <br /> China Pharma Holdings, Inc. Reports Second Quarter 2021 Financial Results<br />

    PR Newswire


    HAIKOU, China

    ,

    Aug. 13, 2021

    /PRNewswire/ — China Pharma Holdings, Inc. (NYSE American: CPHI)  (“China Pharma,” the “Company” or “We”), an NYSE American-listed corporation with a fully-integrated specialty pharmaceuticals subsidiary based in

    China

    , today announced the financial results for the quarter ended

    June 30, 2021

    .

    Revenue decreased by 35.9% to

    $2.4 million

    for the three months ended

    June 30, 2021

    , as compared to

    $3.8 million

    for the three months ended

    June 30, 2020

    . Net loss for the three months ended

    June 30, 2021

    was

    $0.8 million

    , or $0.02 per basic and diluted per share, as compared to net income of

    $0.01 million

    for the same period a year ago, or

    $0.00

    per basic and diluted per share in the same period in 2020. This decrease for revenue and net income was mainly due to a one-time foreign trade of COVID-19 testers that contributed approximately

    $1.7 million

    to our revenue in the second quarter of 2020, while we did not have similar kind of income in the quarter ended

    June 30, 2021

    . Excluding the impact of the one-time deal, our sales increased by 15% over the same period last year.

    As of July 10, 2021, we have fully repaid the RMB 80 million (approximately

    $12.4 million

    ) of the eight-year construction loan facility, which had been fully utilized through

    May 7, 2014

    , per the payback schedule. We believe that this will reduce the pressure on the Company’s future cash flow and interest expenses.

    Revenue was

    $4.8 million

    and

    $5.5 million

    for the six months ended

    June 30, 2021

    and 2020, respectively.  Net loss for the six months ended

    June 30, 2021

    was

    $1.6 million

    , as compared to net loss of

    $0.6 million

    for the six months ended

    June 30, 2020

    .  The deterioration of the financial performance in the first half of 2021 was also mainly due to the one-time trade of COVID-19 testers in the same period last year; however, it was partially off-traded by the increase in sales of our products portfolio.

    Ms.

    Zhilin Li

    , China Pharma’s Chairman and CEO, commented, “In this quarter, the company continued to focus on the consistency evaluation of existing listed products. Our hypertensive drug Candesartan has passed the bioequivalence experiment, which is the key experiment of the consistency evaluation. At present, we have submitted the application materials to the National Medical Products Administration. In addition, we observed an increasing amount of COVID-19 confirmed cases in several cities in

    China

    recently. Therefore, we have correspondingly strengthened the production and sales of our epidemic prevention materials, such as medical surgical masks.”

    Ms. Li continued, “Overall, we are very optimistic about the company’s future given the strong foundation of our business and market, including the favorable policies in Hainan Free Trade Port that encourage 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.



    CONDENSED CONSOLIDATED BALANCE SHEETS



    June 30,



    December 31,



    2021



    2020



    ASSETS



    Current Assets:


    Cash and cash equivalents


    $      1,754,868


    $         957,653


    Banker’s acceptances


    –


    53,736


    Trade accounts receivable, less allowance for doubtful


    accounts of $18,316,990 and $18,150,493, respectively


    409,675


    501,892


    Other receivables, less allowance for doubtful


    accounts of $30,142 and $22,320, respectively


    63,770


    27,652


    Advances to suppliers


    2,963


    2,238


    Inventory


    2,978,060


    3,705,119


    Prepaid expenses


    54,034


    73,668



    Total Current Assets


    5,263,370


    5,321,958


    Property, plant and equipment, net


    14,346,122


    15,564,200


    Operating lease right of use asset


    169,807


    49,687


    Intangible assets, net


    164,942


    182,146



    TOTAL ASSETS


    $    19,944,241


    $    21,117,991



    LIABILITIES AND STOCKHOLDERS’ EQUITY



    Current Liabilities:


    Trade accounts payable


    $         687,052


    $      1,234,594


    Accrued expenses


    332,393


    177,359


    Other payables


    3,051,694


    2,748,208


    Advances from customers


    525,579


    719,786


    Borrowings from related parties


    2,824,019


    2,134,428


    Operating lease liability


    83,707


    52,070


    Construction loan facility


    2,167,149


    2,298,886


    Current portion of lines of credit


    2,523,181


    2,038,345



    Total Current Liabilities


    12,194,774


    11,403,676



    Non-current Liabilities:


    Lines of credit, net of current portion


    325,072


    904,228


    Operating lease liability, net of current portion


    86,186


    Deferred tax liability


    813,636


    805,556



    Total Liabilities


    13,419,668


    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 45,579,557 shares issued and outstanding, respectively


    45,580


    45,580


    Additional paid-in capital


    24,452,684


    24,452,684


    Retained deficit


    (30,431,267)


    (28,839,179)


    Accumulated other comprehensive income


    12,457,576


    12,345,446



    Total Stockholders’ Equity


    6,524,573


    8,004,531



    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY


    $    19,944,241


    $    21,117,991



    CHINA PHARMA HOLDINGS, INC.



    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



    AND COMPREHENSIVE INCOME (LOSS)



    (Unaudited)



    For the Three Months



    For the Six Months



    Ended June 30,



    Ended June 30,



    2021



    2020



    2021



    2020


    Revenue


    $         2,415,559


    $         3,770,723


    $         4,773,930


    $         5,534,678


    Cost of revenue


    2,344,559


    2,620,925


    4,430,200


    4,190,441


    Gross profit


    71,000


    1,149,798


    343,730


    1,344,237


    Operating expenses:


    Selling expenses


    445,478


    727,642


    823,813


    1,053,737


    General and administrative expenses


    329,758


    322,445


    738,756


    711,004


    Research and development expenses


    53,456


    30,044


    243,542


    78,863


    Bad debt (benefit) expense


    (4,744)


    (5,318)


    (12,965)


    24,928


    Total operating expenses


    823,948


    1,074,813


    1,793,146


    1,868,532


    (Loss) income from operations


    (752,948)


    74,985


    (1,449,416)


    (524,295)


    Other income (expense):


    Interest income


    579


    1,212


    985


    1,598


    Interest expense


    (72,392)


    (63,144)


    (143,657)


    (125,147)


    Net other expense


    (71,813)


    (61,932)


    (142,672)


    (123,549)


    (Loss) income before income taxes


    (824,761)


    13,053


    (1,592,088)


    (647,844)


    Income tax  expense


    –


    –


    –


    –



    Net (loss) income


    (824,761)


    13,053


    (1,592,088)


    (647,844)


    Other comprehensive income (loss) – foreign currency


    translation adjustment


    183,455


    5,796


    112,130


    (191,236)



    Comprehensive (loss) income


    $           (641,306)


    $              18,849


    $        (1,479,958)


    $           (839,080)



    (Loss) Earnings per share:


    Basic and diluted


    $                 (0.02)


    $                  0.00


    $                 (0.03)


    $                 (0.01)


    Weighted average shares outstanding


    45,579,557


    43,579,557


    45,579,557


    43,579,557



    CHINA PHARMA HOLDINGS, INC.



    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



    For the Six Months



    Ended June 30,



    2021



    2020



    Cash Flows from Operating Activities:


    Net loss


    $     (1,592,088)


    $        (647,844)


    Depreciation and amortization


    1,400,647


    1,305,070


    Bad debt (benefit) expense


    (12,965)


    24,928


    Inventory write off


    121,604


    Changes in assets and liabilities:


    Trade accounts and other receivables


    (120,757)


    (305,183)


    Advances to suppliers


    (702)


    (279,380)


    Inventory


    890,435


    (14,136)


    Trade accounts payable


    (558,912)


    (323,470)


    Other payables and accrued expenses


    447,500


    199,781


    Change in bankers’ acceptance notes payable


    –


    115,468


    Advances from customers


    (201,063)


    95,579


    Prepaid expenses


    25,421


    (323,553)



    Net Cash Provided by (Used in) Operating Activities


    399,120


    (152,740)



    Cash Flows from Investing Activities:


    Purchases of property and equipment


    (15,022)


    (840,449)



    Net Cash Used in Investing Activities


    (15,022)


    (840,449)



    Cash Flows from Financing Activities:


    Payments of construction term loan


    (154,516)


    (142,209)


    Payments of line of credit


    (896,194)


    –


    Borrowings and interest from related party


    932,876


    90,551


    Repayments to related party


    (251,861)


    –


    Proceeds from lines of credit


    772,581


    1,919,818



    Net Cash provided by Financing Activities


    402,886


    1,868,160



    Effect of Exchange Rate Changes on Cash


    10,231


    (23,318)



    Net Increase in Cash, Cash Equivalents and Restricted Cash


    797,215


    851,653


    Cash and Cash Equivalents at Beginning of Period


    957,653


    1,184,887



    Cash, Cash Equivalents and Restricted Cash at End of Period


    $       1,754,868


    $       2,036,540


    Cash and Cash Equivalents


    1,754,868


    1,813,544


    Restricted cash


    –


    222,996



    Cash, Cash Equivalents and Restricted Cash at End of Period


    1,754,868


    2,036,540



    Supplemental Cash Flow Information:


    Cash paid for income taxes


    $                      –


    $                      –


    Cash paid for interest


    $          121,090


    $          118,374



    Supplemental Noncash Investing and Financing Activities:


    Accounts receivable collected with banker’s acceptances


    $          195,021


    $          270,453


    Inventory purchased with banker’s acceptances


    249,198


    304,520


    Right-of-use assets obtained in exchange for operating lease obligations


    168,077

    Cision
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    SOURCE China Pharma Holdings, Inc.

    PR Newswire
    August 13, 2021 – 1:30 PM PDT