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

Rhea-AI Summary

China Pharma Holdings, Inc. (CPHI) reported a 17.6% revenue decline to $2.0 million for Q3 2021, down from $2.4 million in Q3 2020. This drop is attributed to national drug price reductions. The net loss decreased to $0.8 million, compared to $1.0 million a year ago, primarily due to lower selling expenses. For the nine months ended September 30, 2021, revenue was $6.8 million, also down from $7.9 million in 2020, with a net loss of $2.4 million. The company remains optimistic about growth opportunities in specialty pharma and TCM amid favorable policies.

Positive

• Reduction in net loss from $1.0 million to $0.8 million indicates improved expense management.
• Candesartan has passed key evaluation experiments, supporting future product development.
• Favorable policies in Hainan Free Trade Port are expected to enhance growth opportunities.

Negative

• 17.6% revenue decline indicates ongoing challenges with pricing pressures.
• Net loss increased from $1.7 million to $2.4 million for the nine months ended September 30, 2021.

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, hps@chinapharmaholdings.com, +86-15595806797

View original content:https://www.prnewswire.com/news-releases/china-pharma-holdings-inc-reports-third-quarter-2021-financial-results-301422840.html

SOURCE China Pharma Holdings, Inc.

FAQ

What were China Pharma's Q3 2021 revenue results?

China Pharma reported Q3 2021 revenue of $2.0 million, a decrease of 17.6% from $2.4 million in Q3 2020.

What is the net loss for China Pharma in Q3 2021?

The net loss for Q3 2021 was $0.8 million, improved from a net loss of $1.0 million in Q3 2020.

How did China Pharma's nine-month revenue compare year-over-year?

For the nine months ended September 30, 2021, revenue was $6.8 million, down from $7.9 million in the same period of 2020.

What are the future outlooks for China Pharma?

China Pharma remains optimistic about future growth opportunities in specialty pharmaceuticals and Traditional Chinese Medicine, supported by favorable government policies.