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. |
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CONSOLIDATED BALANCE SHEETS |
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March 31, |
December 31, |
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2021 |
2020 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ 534,530 |
$ 957,653 |
||
Banker's acceptances |
- |
53,736 |
||
Trade accounts receivable, less allowance for doubtful |
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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 |
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TOTAL ASSETS |
$ 19,847,593 |
$ 21,117,991 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities: |
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Trade accounts payable |
$ 1,111,639 |
$ 1,234,594 |
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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 |
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Non-current Liabilities: |
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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 |
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Commitments and Contingencies (Note 9) |
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Stockholders' Equity: |
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Preferred stock, $0.001 par value; 5,000,000 shares authorized; |
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no shares issued or outstanding |
- |
- |
||
Common stock, $0.001 par value; 95,000,000 shares authorized; |
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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 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 19,847,593 |
$ 21,117,991 |
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CHINA PHARMA HOLDINGS, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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AND COMPREHENSIVE INCOME (LOSS) |
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For the Three Months |
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Ended March 31, |
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2021 |
2020 |
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Revenue |
$ 2,358,371 |
$ 1,763,955 |
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Cost of revenue |
2,085,641 |
1,569,516 |
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Gross profit |
272,730 |
194,439 |
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Operating expenses: |
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Selling |
378,335 |
326,095 |
|||
General and administrative |
408,998 |
388,559 |
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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) |
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Other income (expense): |
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Interest income |
406 |
386 |
|||
Interest expense |
(71,265) |
(62,003) |
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Net other expense |
(70,859) |
(61,617) |
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Loss before income taxes |
(767,327) |
(660,897) |
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Income tax benefit |
- |
- |
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Net loss |
(767,327) |
(660,897) |
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Other comprehensive loss - foreign currency |
|||||
translation adjustment |
(71,325) |
(197,032) |
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Comprehensive income (loss) |
$ (838,652) |
$ (857,929) |
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Loss per share: |
|||||
Basic and diluted |
$ (0.02) |
$ (0.02) |
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Weighted average shares outstanding |
45,579,557 |
43,579,557 |
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