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

    By
    admin_tony
    -
    0
    307

    HAIKOU, China, Nov. 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 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: DianaHuang, hps@chinapharmaholdings.com, +86-15595806797

    Cision 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.

    RELATED ARTICLESMORE FROM AUTHOR