HAIKOU, Hainan, China, Nov. 15 /Xinhua-PRNewswire-FirstCall/ -- China Pharma Holdings, Inc. (“China Pharma”) , a specialty bio-pharmaceutical company that develops, manufactures and markets Western and Chinese medicines, today announced its financial results for the third quarter 2007 ended September 30, 2007.
China Pharma’s revenue in the third quarter of 2007 was $8.3 million, up 65.36% compared to $5.01 million in the third quarter of 2006. Andrographolide has increased by 135.07% yoy, Cefaclor has increased by 99.63% yoy, Neurotrophicpetide increased by 72.58% yoy, Buflomedil has increased by 64.12% yoy. Newly launched Granisetron hydrochloride has increased by $0.779 million, and Alginic Sodium Diester has increased by $0.58 million. Gross profit increased 55.59% to $3.88 million from $2.49 million in the third quarter of 2006. The growth of gross profit benefits from the high growth of revenue. Net income was $3.08 million, up 80.73% as compared to the same period a year ago. Fully diluted earnings per share were $0.08, a 68.57% increase from the third quarter of 2006.
“We are pleased to deliver outstanding revenue and net income for the third quarter 2007. Our input to the marketing got good rewards. The company performed well both in terms of financial performance and execution of our key business strategies. Our increased market penetration for our existing portfolio and the wide acceptance of our newly launched products Granisetron hydrochloride and Alginic Sodium Diester have contributed to the strong growth of our revenue,” commented Ms. Zhilin Li, President and CEO of China Pharma, “Our strong performance is the result of building an extensive and diversified portfolio of therapeutics which allows us not to depend on any one product for revenue growth.
Selling expenses were 422,098 US dollars for the quarter; it represents 55.78% of the total operating expenses. During this year, to broaden our market share further, a lot of money has been spent on the marketing of our products, 70 new salespersons have been recruited, in line with this, traveling expenses, office expenses and salaries have been increased.
General and administrative expenses incurred this quarter are $329 thousands; it stands for around 43% of the total operating expenses, while the corresponding G&A last year was $100 thousand, which stands for around 23.7% of the total operating expenses. This was mainly caused by a large sum of expenses spent in the design of new packaging style (amounting to $94 thousand), and because the carrying amount of the intangible assets has increased, the amortization expenses of intangible asset have also increased (by around $34 thousand), and as a result of the increased sales volume, traveling fees and office expenses have increased significantly as well.
Income from operations has increased to $3.12 million, up 50.69% yoy. This is a combined result of the 55.59% increase in gross profit.
As of September 30, 2007, China Pharma had $1.71 million in cash and cash equivalents, which was approximately eight folds on September 30, 2006. Total liabilities were $8.23 million and working capital was $29.98 million. Days Sales Outstanding was 166. And shareholders’ equity stood at $34.65 million.
Business Outlook
China Pharma has solid research and development cooperation with leading institutions in China, and has developed a diversified portfolio of therapeutics with strong potential. Its marketing channels are under continuous expansion and the size of its sales force is ever growing. Therefore, the Company’s revenue can be expected to grow continuously. And the China State Food and Drug Administration (SFDA) implemented a new regulation for registering new drugs on October 1st, 2007, which is expected to quickly resume normal procedures at SFDA for approving new drugs.
The rectification indeed brought transitory negative impact to the Chinese pharmaceutical industry, but we strongly believe that our R&D, manufacture, and marketing are full of opportunities.
The Seventeenth National Congress of the Communist Party of China has confirmed the basic policies of the health care reform. The government has committed to expand its rural cooperative medical system (CMS) to cover more rural areas in the country, and will spend $1.3 billion in this program on an annual basis. CMS is currently covering about 51% rural areas, and by 2010, the whole country will be covered by this program. China Pharma expects to greatly benefit from the CMS program.
Conference Call
China Pharma will host a conference call on Thursday November 15 at 11:00 am EST to discuss third quarter 2007 results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (800) 706-7749 International callers should dial (617) 614-3474. The conference pass code is 82975823.
If you are unable to participate in the call at this time, a replay will be available on Thursday, November 15, at 1:00 pm EST, through Thursday, November 22, at 1:00 pm EST. To access the replay, dial (888) 286-8010. International callers should dial (617) 801-6888. The conference pass code is 41438898.
The conference will be broadcast live over the Internet and can be accessed by all interested parties at China Pharma’s website at http://www.chinapharmaholdings.com . To listen to the call please go to the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
About China Pharma Holdings, Inc.
China Pharma Holdings, Inc. develops, manufactures, and markets generic and brand bio-pharmaceutical products in China that treat a wide range of conditions, including infections, hepatitis, vascular, CNS and other prevailing diseases. Helpson Bio-pharmaceutical Co., Ltd (Helpson), a specialty pharmaceutical company headquartered in Haikou City, Hainan province in China, is a wholly owned subsidiary of China Pharma Holdings. For more information on the Company please go to http://www.chinapharmaholdings.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Pharma on its conference call in relation to this 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, which may include, but are not limited to, such factors as unanticipated changes in product demand, increased competition, failure to obtain or maintain intellectual property protection, downturns in the Chinese economy, uncompetitive levels of research and development, failure to obtain regulatory approvals, 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.
hps@chinapharmaholdings.com
CONTACT: Sophia Yu of China Pharma Holdings, Inc, +86-898-6681-1730, or
hps@chinapharmaholdings.com
Web site: http://www.helpson.com/
http://www.chinapharmaholdings.com/
