China Pharma Holdings, Inc. Reports 33% YoY Increase in First Quarter 2021 Revenue
China Pharma Holdings, Inc. (NYSE American: CPHI) reported a 33.7% increase in revenue to $2.4 million for Q1 2021, up from $1.8 million a year earlier, primarily due to recovery from COVID-19 and favorable exchange rates. The company achieved a gross margin of 11.6%, slightly up from 11.0% in Q1 2020. However, the net loss widened to $0.8 million due to increased R&D investments. The company's CEO highlighted optimism for growth driven by a diversified product portfolio and upcoming product launches in compliance with Hainan Free Trade Port policies.
- Revenue increased by 33.7% to $2.4 million in Q1 2021.
- Gross margin improved to 11.6% from 11.0% year-over-year.
- The company has 20 existing products, providing revenue stability.
- Optimistic outlook for new products and growth opportunities in specialty pharma.
- Net loss increased to $0.8 million in Q1 2021, up from $0.7 million year-over-year due to higher R&D costs.
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
Net Loss for the three months ended March 31, 2021 was
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 | 545,094 | 501,892 | ||
Other receivables, less allowance for doubtful | ||||
accounts of | 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, | ||||
no shares issued or outstanding | - | - | ||
Common stock, | ||||
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 |
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SOURCE China Pharma Holdings, Inc.
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