China Pharma Holdings, Inc., an NYSE American-listed corporation with a fully-integrated specialty pharmaceuticals subsidiary based in China, announced the financial results for the quarter ended June 30, 2021.
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 -
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CHINA PHARMA HOLDINGS, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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June 30, |
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 |
$ 1,754,868 |
$ 957,653 |
||
|
Banker's acceptances |
- |
53,736 |
||
|
Trade accounts receivable, less allowance for doubtful |
||||
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accounts of $18,316,990 and $18,150,493, respectively |
409,675 |
501,892 |
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|
Other receivables, less allowance for doubtful |
||||
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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 |
||
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Total Current Assets |
5,263,370 |
5,321,958 |
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Property, plant and equipment, net |
14,346,122 |
15,564,200 |
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Operating lease right of use asset |
169,807 |
49,687 |
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Intangible assets, net |
164,942 |
182,146 |
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TOTAL ASSETS |
$ 19,944,241 |
$ 21,117,991 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities: |
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Trade accounts payable |
$ 687,052 |
$ 1,234,594 |
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|
Accrued expenses |
332,393 |
177,359 |
||
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Other payables |
3,051,694 |
2,748,208 |
||
|
Advances from customers |
525,579 |
719,786 |
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Borrowings from related parties |
2,824,019 |
2,134,428 |
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Operating lease liability |
83,707 |
52,070 |
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Construction loan facility |
2,167,149 |
2,298,886 |
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Current portion of lines of credit |
2,523,181 |
2,038,345 |
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Total Current Liabilities |
12,194,774 |
11,403,676 |
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Non-current Liabilities: |
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Lines of credit, net of current portion |
325,072 |
904,228 |
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Operating lease liability, net of current portion |
86,186 |
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Deferred tax liability |
813,636 |
805,556 |
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Total Liabilities |
13,419,668 |
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 |
- |
- |
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Common stock, $0.001 par value; 95,000,000 shares authorized; |
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45,579,557 shares and 45,579,557 shares issued and outstanding, respectively |
45,580 |
45,580 |
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Additional paid-in capital |
24,452,684 |
24,452,684 |
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Retained deficit |
(30,431,267) |
(28,839,179) |
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|
Accumulated other comprehensive income |
12,457,576 |
12,345,446 |
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Total Stockholders' Equity |
6,524,573 |
8,004,531 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 19,944,241 |
$ 21,117,991 |
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CHINA PHARMA HOLDINGS, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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AND COMPREHENSIVE INCOME (LOSS) |
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(Unaudited) |
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For the Three Months |
For the Six Months |
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Ended June 30, |
Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Revenue |
$ 2,415,559 |
$ 3,770,723 |
$ 4,773,930 |
$ 5,534,678 |
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Cost of revenue |
2,344,559 |
2,620,925 |
4,430,200 |
4,190,441 |
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Gross profit |
71,000 |
1,149,798 |
343,730 |
1,344,237 |
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Operating expenses: |
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Selling expenses |
445,478 |
727,642 |
823,813 |
1,053,737 |
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General and administrative expenses |
329,758 |
322,445 |
738,756 |
711,004 |
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Research and development expenses |
53,456 |
30,044 |
243,542 |
78,863 |
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Bad debt (benefit) expense |
(4,744) |
(5,318) |
(12,965) |
24,928 |
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Total operating expenses |
823,948 |
1,074,813 |
1,793,146 |
1,868,532 |
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(Loss) income from operations |
(752,948) |
74,985 |
(1,449,416) |
(524,295) |
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Other income (expense): |
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Interest income |
579 |
1,212 |
985 |
1,598 |
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Interest expense |
(72,392) |
(63,144) |
(143,657) |
(125,147) |
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Net other expense |
(71,813) |
(61,932) |
(142,672) |
(123,549) |
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(Loss) income before income taxes |
(824,761) |
13,053 |
(1,592,088) |
(647,844) |
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Income tax expense |
- |
- |
- |
- |
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Net (loss) income |
(824,761) |
13,053 |
(1,592,088) |
(647,844) |
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Other comprehensive income (loss) - foreign currency |
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translation adjustment |
183,455 |
5,796 |
112,130 |
(191,236) |
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Comprehensive (loss) income |
$ (641,306) |
$ 18,849 |
$ (1,479,958) |
$ (839,080) |
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(Loss) Earnings per share: |
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Basic and diluted |
$ (0.02) |
$ 0.00 |
$ (0.03) |
$ (0.01) |
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Weighted average shares outstanding |
45,579,557 |
43,579,557 |
45,579,557 |
43,579,557 |
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CHINA PHARMA HOLDINGS, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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For the Six Months |
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Ended June 30, |
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2021 |
2020 |
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Cash Flows from Operating Activities: |
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Net loss |
$ (1,592,088) |
$ (647,844) |
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Depreciation and amortization |
1,400,647 |
1,305,070 |
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Bad debt (benefit) expense |
(12,965) |
24,928 |
||
|
Inventory write off |
121,604 |
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Changes in assets and liabilities: |
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Trade accounts and other receivables |
(120,757) |
(305,183) |
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Advances to suppliers |
(702) |
(279,380) |
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Inventory |
890,435 |
(14,136) |
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|
Trade accounts payable |
(558,912) |
(323,470) |
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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) |
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Net Cash Provided by (Used in) Operating Activities |
399,120 |
(152,740) |
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Cash Flows from Investing Activities: |
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Purchases of property and equipment |
(15,022) |
(840,449) |
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Net Cash Used in Investing Activities |
(15,022) |
(840,449) |
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Cash Flows from Financing Activities: |
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Payments of construction term loan |
(154,516) |
(142,209) |
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Payments of line of credit |
(896,194) |
- |
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Borrowings and interest from related party |
932,876 |
90,551 |
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Repayments to related party |
(251,861) |
- |
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Proceeds from lines of credit |
772,581 |
1,919,818 |
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Net Cash provided by Financing Activities |
402,886 |
1,868,160 |
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Effect of Exchange Rate Changes on Cash |
10,231 |
(23,318) |
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Net Increase in Cash, Cash Equivalents and Restricted Cash |
797,215 |
851,653 |
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Cash and Cash Equivalents at Beginning of Period |
957,653 |
1,184,887 |
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Cash, Cash Equivalents and Restricted Cash at End of Period |
$ 1,754,868 |
$ 2,036,540 |
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|
Cash and Cash Equivalents |
1,754,868 |
1,813,544 |
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|
Restricted cash |
- |
222,996 |
||
|
Cash, Cash Equivalents and Restricted Cash at End of Period |
1,754,868 |
2,036,540 |
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Supplemental Cash Flow Information: |
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Cash paid for income taxes |
$ - |
$ - |
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|
Cash paid for interest |
$ 121,090 |
$ 118,374 |
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Supplemental Noncash Investing and Financing Activities: |
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Accounts receivable collected with banker's acceptances |
$ 195,021 |
$ 270,453 |
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|
Inventory purchased with banker's acceptances |
249,198 |
304,520 |
||
|
Right-of-use assets obtained in exchange for operating lease obligations |
168,077 |
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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.
Company Codes: AMEX:CPHI
