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

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

    PR Newswire


    HAIKOU, China

    ,

    Nov. 12, 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

    September 30, 2021

    .

    Revenue decreased by 17.6% to

    $2.0 million

    for the three months ended

    September 30, 2021

    , as compared to

    $2.4 million

    for the three months ended

    September 30, 2020

    . This decrease was mainly due to the expansion of the scope of national centralized drug purchases and the related price reduction. Net loss for the three months ended

    September 30, 2021

    was

    $0.8 million

    , as compared to net loss of

    $1.0 million

    for the same period a year ago. The reduction in net loss was mainly the result of the decrease in selling expenses in the three months ended

    September 30, 2021

    . Loss per basic and diluted common share was both

    $0.02

    for the three months ended

    September 30, 2021

    and 2020, respectively.

    Revenue was

    $6.8 million

    and

    $7.9 million

    for the nine months ended

    September 30, 2021

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

    September 30, 2021

    was

    $2.4 million

    , as compared to net loss of

    $1.7 million

    for the nine months ended

    September 30, 2020

    . The increase in net loss is mainly due to the continuous decline in the sales price of our certain main products for the nine months ended

    September 30, 2021

    , and the continuous rise in the price of some main raw materials in our portfolio; on the other hand, there was a one-time foreign trade of COVID-19 testers with higher gross margin we completed in the corresponding period in 2020.

    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 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, as well as spcial policies for Boao Lecheng pilot zone of international medical tourism.  In the context of the epidemic, we have experienced great challenges. However, we also see considerable opportunities ahead of us thanks to those favorable policies, 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



    September 30,



    December 31,



    2021



    2020



    ASSETS



    Current Assets:


    Cash and cash equivalents


    $         458,831


    $         957,653


    Banker’s acceptances


    –


    53,736


    Trade accounts receivable, less allowance for doubtful


    accounts of $18,253,945 and $18,150,493, respectively


    444,271


    501,892


    Other receivables, less allowance for doubtful


    accounts of $29,968 and $22,320, respectively


    50,013


    27,652


    Advances to suppliers


    41,518


    2,238


    Inventory


    3,073,834


    3,705,119


    Prepaid expenses


    72,805


    73,668



    Total Current Assets


    4,141,272


    5,321,958


    Property, plant and equipment, net


    13,740,444


    15,564,200


    Operating lease right of use asset


    146,759


    49,687


    Intangible assets, net


    154,820


    182,146



    TOTAL ASSETS


    $    18,183,295


    $    21,117,991



    LIABILITIES AND STOCKHOLDERS’ EQUITY



    Current Liabilities:


    Trade accounts payable


    $         599,703


    $      1,234,594


    Accrued expenses


    227,416


    177,359


    Other payables


    1,733,128


    2,748,208


    Advances from customers


    420,039


    719,786


    Borrowings from related parties


    3,057,272


    2,134,428


    Operating lease liability


    82,851


    52,070


    Construction loan facility


    –


    2,298,886


    Current portion of lines of credit


    4,332,809


    2,038,345



    Total Current Liabilities


    10,453,218


    11,403,676



    Non-current Liabilities:


    Lines of credit, net of current portion


    –


    904,228


    Operating lease liability, net of current portion


    64,767


    Deferred tax liability


    810,462


    805,556



    Total Liabilities


    11,328,447


    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;


    47,339,557 shares and 45,579,557 shares issued and outstanding, respectively


    47,340


    45,580


    Additional paid-in capital


    25,645,367


    24,452,684


    Retained deficit


    (31,257,936)


    (28,839,179)


    Accumulated other comprehensive income


    12,420,077


    12,345,446



    Total Stockholders’ Equity


    6,854,848


    8,004,531



    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY


    $    18,183,295


    $    21,117,991



    CHINA PHARMA HOLDINGS, INC.



    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



    AND COMPREHENSIVE LOSS



    (Unaudited)



    For the Three Months



    For the Nine Months



    Ended September 30,



    Ended September 30,



    2021



    2020



    2021



    2020


    Revenue


    $         1,978,627


    $         2,400,667


    $         6,752,557


    $         7,935,345


    Cost of revenue


    2,275,023


    2,353,471


    6,705,223


    6,543,912


    Gross profit


    (296,396)


    47,196


    47,334


    1,391,433


    Operating expenses:


    Selling expenses


    134,292


    654,090


    958,105


    1,707,827


    General and administrative expenses


    301,970


    290,586


    1,040,726


    1,001,590


    Research and development expenses


    21,374


    37,628


    264,916


    116,491


    Bad debt (benefit) expense


    8,372


    17,386


    (4,593)


    42,314


    Total operating expenses


    466,008


    999,690


    2,259,154


    2,868,222


    Loss from operations


    (762,404)


    (952,494)


    (2,211,820)


    (1,476,789)


    Other income (expense):


    Interest income


    638


    3,665


    1,623


    5,263


    Interest expense


    (64,903)


    (61,067)


    (208,560)


    (186,214)


    Net other expense


    (64,265)


    (57,402)


    (206,937)


    (180,951)


    Loss before income taxes


    (826,669)


    (1,009,896)


    (2,418,757)


    (1,657,740)


    Income tax  expense


    –


    –


    –


    –



    Net loss


    (826,669)


    (1,009,896)


    (2,418,757)


    (1,657,740)


    Other comprehensive income (loss) – foreign currency


    translation adjustment


    (37,499)


    470,445


    74,631


    279,209



    Comprehensive loss


    $           (864,168)


    $           (539,451)


    $        (2,344,126)


    $        (1,378,531)



    Loss per share:


    Basic and diluted


    $                 (0.02)


    $                 (0.02)


    $                 (0.05)


    $                 (0.04)


    Weighted average shares outstanding


    46,000,427


    43,579,557


    45,721,389


    43,579,557



    CHINA PHARMA HOLDINGS, INC.



    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



    For the Nine Months



    Ended September 30,



    2021



    2020



    Cash Flows from Operating Activities:


    Net loss


    $     (2,418,757)


    $     (1,657,740)


    Depreciation and amortization


    2,377,104


    1,978,363


    Bad debt (benefit) expense


    (4,593)


    42,314


    Stock option compensation


    15,243


    –


    Inventory write off


    148,386


    –


    Changes in assets and liabilities:


    Trade accounts and other receivables


    (151,872)


    (366,385)


    Advances to suppliers


    (39,352)


    (103,701)


    Inventory


    756,090


    561,139


    Trade accounts payable


    (643,797)


    (399,363)


    Other payables and accrued expenses


    208,210


    (126,930)


    Change in bankers’ acceptance notes payable


    –


    (109,663)


    Advances from customers


    (304,787)


    119,199


    Prepaid expenses


    6,399


    (314,361)



    Net Cash Used in Operating Activities


    (51,726)


    (377,128)



    Cash Flows from Investing Activities:


    Purchases of property and equipment


    (430,999)


    (1,099,878)



    Net Cash Used in Investing Activities


    (430,999)


    (1,099,878)



    Cash Flows from Financing Activities:


    Payments of construction term loan


    (2,317,879)


    (2,145,389)


    Payments of line of credit


    (2,441,499)


    –


    Borrowings and interest from related party


    1,172,244


    162,090


    Repayments to related party


    (251,876)


    (77,530)


    Proceeds from lines of credit


    3,816,774


    2,695,087



    Net Cash (Used In) Provided By Financing Activities


    (22,236)


    634,258



    Effect of Exchange Rate Changes on Cash


    6,139


    4,472



    Net Increase in Cash, Cash Equivalents and Restricted Cash


    (498,822)


    (838,276)


    Cash and Cash Equivalents at Beginning of Period


    957,653


    1,184,887



    Cash, Cash Equivalents and Restricted Cash at End of Period


    $          458,831


    $          346,611



    Supplemental Cash Flow Information:


    Cash paid for income taxes


    $                    –


    $                    –


    Cash paid for interest


    $          173,157


    $          176,055



    Supplemental Noncash Investing and Financing Activities:


    Accounts receivable collected with banker’s acceptances


    $          195,032


    $          394,393


    Inventory purchased with banker’s acceptances


    249,212


    402,582


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


    168,087


    –


    Contact: Diana

    Huang,

    [email protected]

    , +86-15595806797

    Cision
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    SOURCE China Pharma Holdings, Inc.

    PR Newswire
    November 12, 2021 – 1:30 PM PST