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

CPHI

HAIKOU, China, Aug. 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 June 30, 2021.

Revenue decreased by 35.9% to $2.4 million for the three months ended June 30, 2021, as compared to $3.8 million for the three months ended June 30, 2020. Net loss for the three months ended June 30, 2021 was $0.8 million, or $0.02 per basic and diluted per share, as compared to net income of $0.01 million for the same period a year ago, or $0.00 per basic and diluted per share in the same period in 2020. This decrease for revenue and net income was mainly due to a one-time foreign trade of COVID-19 testers that contributed approximately $1.7 million to our revenue in the second quarter of 2020, while we did not have similar kind of income in the quarter ended June 30, 2021. Excluding the impact of the one-time deal, our sales increased by 15% over the same period last year.

As of July 10, 2021, we have fully repaid the RMB 80 million (approximately $12.4 million) of the eight-year construction loan facility, which had been fully utilized through May 7, 2014, per the payback schedule. We believe that this will reduce the pressure on the Company's future cash flow and interest expenses.

Revenue was $4.8 million and $5.5 million for the six months ended June 30, 2021 and 2020, respectively. Net loss for the six months ended June 30, 2021 was $1.6 million, as compared to net loss of $0.6 million for the six months ended June 30, 2020. The deterioration of the financial performance in the first half of 2021 was also mainly due to the one-time trade of COVID-19 testers in the same period last year; however, it was partially off-traded by the increase in sales of our products portfolio.

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 bioequivalence experiment, which is 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. 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.

CONDENSED CONSOLIDATED BALANCE SHEETS









June 30,


December 31,



2021


2020

ASSETS





Current Assets:





Cash and cash equivalents


$ 1,754,868


$ 957,653

Banker's acceptances


-


53,736

Trade accounts receivable, less allowance for doubtful





accounts of $18,316,990 and $18,150,493, respectively


409,675


501,892

Other receivables, less allowance for doubtful





accounts of $30,142 and $22,320, respectively


63,770


27,652

Advances to suppliers


2,963


2,238

Inventory


2,978,060


3,705,119

Prepaid expenses


54,034


73,668

Total Current Assets


5,263,370


5,321,958






Property, plant and equipment, net


14,346,122


15,564,200

Operating lease right of use asset


169,807


49,687

Intangible assets, net


164,942


182,146

TOTAL ASSETS


$ 19,944,241


$ 21,117,991






LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities:





Trade accounts payable


$ 687,052


$ 1,234,594

Accrued expenses


332,393


177,359

Other payables


3,051,694


2,748,208

Advances from customers


525,579


719,786

Borrowings from related parties


2,824,019


2,134,428

Operating lease liability


83,707


52,070

Construction loan facility


2,167,149


2,298,886

Current portion of lines of credit


2,523,181


2,038,345

Total Current Liabilities


12,194,774


11,403,676

Non-current Liabilities:





Lines of credit, net of current portion


325,072


904,228

Operating lease liability, net of current portion


86,186



Deferred tax liability


813,636


805,556

Total Liabilities


13,419,668


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;





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

45,580


45,580

Additional paid-in capital


24,452,684


24,452,684

Retained deficit


(30,431,267)


(28,839,179)

Accumulated other comprehensive income


12,457,576


12,345,446

Total Stockholders' Equity


6,524,573


8,004,531

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$ 19,944,241


$ 21,117,991

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)












For the Three Months


For the Six Months



Ended June 30,


Ended June 30,



2021


2020


2021


2020

Revenue


$ 2,415,559


$ 3,770,723


$ 4,773,930


$ 5,534,678

Cost of revenue


2,344,559


2,620,925


4,430,200


4,190,441










Gross profit


71,000


1,149,798


343,730


1,344,237










Operating expenses:









Selling expenses


445,478


727,642


823,813


1,053,737

General and administrative expenses


329,758


322,445


738,756


711,004

Research and development expenses


53,456


30,044


243,542


78,863

Bad debt (benefit) expense


(4,744)


(5,318)


(12,965)


24,928

Total operating expenses


823,948


1,074,813


1,793,146


1,868,532










(Loss) income from operations


(752,948)


74,985


(1,449,416)


(524,295)










Other income (expense):









Interest income


579


1,212


985


1,598

Interest expense


(72,392)


(63,144)


(143,657)


(125,147)

Net other expense


(71,813)


(61,932)


(142,672)


(123,549)










(Loss) income before income taxes


(824,761)


13,053


(1,592,088)


(647,844)

Income tax expense


-


-


-


-

Net (loss) income


(824,761)


13,053


(1,592,088)


(647,844)

Other comprehensive income (loss) - foreign currency









translation adjustment


183,455


5,796


112,130


(191,236)

Comprehensive (loss) income


$ (641,306)


$ 18,849


$ (1,479,958)


$ (839,080)

(Loss) Earnings per share:









Basic and diluted


$ (0.02)


$ 0.00


$ (0.03)


$ (0.01)

Weighted average shares outstanding


45,579,557


43,579,557


45,579,557


43,579,557

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




For the Six Months



Ended June 30,



2021


2020

Cash Flows from Operating Activities:





Net loss


$ (1,592,088)


$ (647,844)

Depreciation and amortization


1,400,647


1,305,070

Bad debt (benefit) expense


(12,965)


24,928

Inventory write off


121,604



Changes in assets and liabilities:





Trade accounts and other receivables


(120,757)


(305,183)

Advances to suppliers


(702)


(279,380)

Inventory


890,435


(14,136)

Trade accounts payable


(558,912)


(323,470)

Other payables and accrued expenses


447,500


199,781

Change in bankers' acceptance notes payable


-


115,468

Advances from customers


(201,063)


95,579

Prepaid expenses


25,421


(323,553)

Net Cash Provided by (Used in) Operating Activities


399,120


(152,740)






Cash Flows from Investing Activities:





Purchases of property and equipment


(15,022)


(840,449)

Net Cash Used in Investing Activities


(15,022)


(840,449)






Cash Flows from Financing Activities:





Payments of construction term loan


(154,516)


(142,209)

Payments of line of credit


(896,194)


-

Borrowings and interest from related party


932,876


90,551

Repayments to related party


(251,861)


-

Proceeds from lines of credit


772,581


1,919,818

Net Cash provided by Financing Activities


402,886


1,868,160






Effect of Exchange Rate Changes on Cash


10,231


(23,318)

Net Increase in Cash, Cash Equivalents and Restricted Cash


797,215


851,653

Cash and Cash Equivalents at Beginning of Period


957,653


1,184,887

Cash, Cash Equivalents and Restricted Cash at End of Period


$ 1,754,868


$ 2,036,540






Cash and Cash Equivalents


1,754,868


1,813,544

Restricted cash


-


222,996

Cash, Cash Equivalents and Restricted Cash at End of Period


1,754,868


2,036,540






Supplemental Cash Flow Information:





Cash paid for income taxes


$ -


$ -

Cash paid for interest


$ 121,090


$ 118,374






Supplemental Noncash Investing and Financing Activities:





Accounts receivable collected with banker's acceptances


$ 195,021


$ 270,453

Inventory purchased with banker's acceptances


249,198


304,520

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


168,077



Cision View original content:https://www.prnewswire.com/news-releases/china-pharma-holdings-inc-reports-second-quarter-2021-financial-results-301354913.html

SOURCE China Pharma Holdings, Inc.