China Pharma Holdings, Inc. Reports First Quarter 2019 Financial Results

HAIKOU, China, May 15, 2019 /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 financial results for the quarter ended March 31, 2019.

First Quarter Highlights

  • Revenue decreased 19.0% to $2.9 million in the first quarter 2019 from $3.6 million in the same period of 2018;
  • Gross margin was 22.4% in the first quarter 2019, compared to 29.1% in the same period of 2018;
  • Loss from operations was $0.3 million in the first quarter 2019 compared to $0.1 million in the same period of 2018, a deterioration of $0.2 million;
  • Net loss was $0.4 million in the first quarter 2019 compared to $0.3 million in the same period of 2018. Loss per common share was both $0.01 per basic and diluted share in the first quarter 2019 and 2018, respectively.

In a statement from Ms. Zhilin Li, China Pharma's Chairman and CEO, "We experienced certain market fluctuations in the first quarter of 2019, which has negatively impacted our revenue in this period. Management will continue to vigorously promote sales through active participation in recent provincial market openings to solicit new drug tender offers and allow China Pharma to expand its presence in these markets." Ms. Li continued, "In addition, we continued experiencing sustained pressure from the more stringent requirements of drug registration standards, consistency evaluations, and the challenging environment in our industry in this period. We will continue to actively adapt to state policy guidance and further evaluate market conditions for our current existing products, pipeline products, and competition in the market, in order to optimize our development strategy."

First Quarter Results

Revenue decreased by 19.0% to $2.9 million for the three months ended March 31, 2019, as compared to $3.6 million for the three months ended March 31, 2018. This decrease was mainly due to market fluctuations.

Gross profit for the three months ended March 31, 2019 was $0.7 million, as compared to $1.1 million during the same period in 2018. Our gross profit margin in the three months ended March 31, 2019 was 22.4% as compared to 29.1% during the same period in 2018. The decrease in our gross profit margin was mainly due to the decrease in revenue and the increased ratio of fixed cost to revenue.

Our selling expenses for the three months ended March 31, 2019 and 2018 were $0.5 million and $0.7 million, respectively. Selling expenses accounted for 16.3% of the total revenue in the three months ended March 31, 2019, as compared to 18.8% during the same period in 2018. Because of adjustments in our sales practices, due to healthcare reform policies, we had reduced number of personnel and expenses to efficiently support our sales and the collection of accounts receivable.

Our general and administrative expenses for the three months ended March 31, 2019 were $0.4 million, which represented a decrease of $0.1 million, as compared to $0.5 million for the same period in 2018. General and administrative expenses accounted for 14.6% and 13.6% of our total revenues in the three months ended March 31, 2019 and 2018, respectively.

Net loss for the three months ended March 31, 2019 was $0.4 million, as compared to $0.3 million for the same period a year ago. The increase in net loss was mainly the result of decreased revenue, whereas the expenditures did not decrease in proportion to revenue, which was due to fixed costs. For the three months ended March 31, 2019 and 2018, loss per basic and diluted common share was both $0.01.

Financial Condition

As of March 31, 2019, the Company had cash and cash equivalents of $1.0 million compared to $1.2 million as of December 31, 2018.

As of March 31, 2019, our net accounts receivable was $0.8 million, compared to $0.9 million as of December 31, 2018.

For the three months ended March 31, 2019, cash flow from operating activities was $0.1 million, as compared to $0.5 million for the same period in 2018.

Conference Call

The Company will hold a conference call at 8:30 am E.T. on May 15, 2019 to discuss the results of the first quarter 2019. Listeners may access the call by dialing 1-866-519-4004 or 65-671-350-90 for international callers, Conference ID # 2397008. A replay of the call will be accessible through May 23, 2019 by dialing 1-855-452-5696 or 61-281-990-299 for international callers, Conference ID # 2397008.

About China Pharma Holdings, Inc.

China Pharma Holdings, Inc. is a specialty pharmaceutical company that develops, manufactures and markets a diversified portfolio of products, focused on conditions with high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company's cost-effective, high-margin 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

(Unaudited)








March 31,


December 31,



2019


2018

ASSETS





Current Assets:





Cash and cash equivalents


$         961,277


$      1,186,587

Restricted cash


976,622


1,273,940

Banker's acceptances


51,424


20,579

Trade accounts receivable, less allowance for doubtful





accounts of $18,295,892 and $17,815,075, respectively


845,401


916,931

Other receivables, less allowance for doubtful





accounts of $7,187 and $34,884, respectively


225,010


170,098

Advances to suppliers


108,454


47

Inventory


4,934,248


5,054,975

Prepaid expenses


118,701


123,759

Total Current Assets


8,221,137


8,746,916






Advances for purchases of intangible assets


17,490,101


17,069,587

Property and equipment, net


19,067,032


19,294,379

Operating lease right of use asset


212,587


-

Intangible assets, net


250,266


266,443

TOTAL ASSETS


$    45,241,123


$    45,377,325






LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities:





Trade accounts payable


$      1,093,182


$      1,060,934

Accrued expenses


117,241


310,804

Other payables


2,838,847


3,065,508

Advances from customers


526,247


525,647

Other payables - related parties


1,518,756


1,633,263

Operating lease liability, current portion


91,597


-

Current portion of construction loan facility


2,086,092


2,181,360

Bankers' acceptance notes payable


976,622


1,273,940

Total Current Liabilities


9,248,584


10,051,456

Non-current Liabilities:





Construction loan facility


4,470,197


4,362,720

Operating lease liability, net of current portion


122,229


-

Deferred tax liability


783,204


764,374

Total Liabilities


14,624,214


15,178,550

Commitments and Contingencies (Note 13)





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;





43,579,557 shares and 43,579,557 shares outstanding, respectively


43,580


43,580

Additional paid-in capital


23,590,204


23,590,204

Accumulated deficit


(5,688,089)


(5,270,358)

Accumulated other comprehensive income


12,671,214


11,835,349

Total Stockholders' Equity


30,616,909


30,198,775

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$    45,241,123


$    45,377,325

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)








For the Three Months



Ended March 31,



2019


2018

Revenue


$         2,929,273


$         3,615,684

Cost of revenue


2,272,743


2,561,984






Gross profit


656,530


1,053,700






Operating expenses:





Selling expenses


478,691


678,330

General and administrative expenses


428,817


492,010

Research and development expenses


69,918


22,213

Bad debt expense


13,312


1,834

Total operating expenses


990,738


1,194,387






Loss from operations


(334,208)


(140,687)






Other income (expense):





Interest income


3,257


2,294

Interest expense


(86,780)


(129,102)

Net other expense


(83,523)


(126,808)






Loss before income taxes


(417,731)


(267,495)

Income tax  expense


-


(25,985)

Net loss


(417,731)


(293,480)

Other comprehensive income - foreign currency





translation adjustment


835,865


1,674,076

Comprehensive income (loss)


$            418,134


$         1,380,596

Loss per share:





Basic and diluted


$                 (0.01)


$                 (0.01)

Weighted average shares outstanding


43,579,557


43,579,557

CHINA PHARMA HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




For the Three Months



Ended March 31,



2019


2018

Cash Flows from Operating Activities:





Net loss


$        (417,731)


$        (293,480)

Depreciation and amortization


795,483


861,430

Bad debt expense


13,312


1,834

Deferred income taxes


-


25,985

Non cash lease expense


1,233


-

Changes in assets and liabilities:





Trade accounts and other receivables


(145,935)


(266,479)

Advances to suppliers


(107,839)


(237,165)

Inventory


389,589


427,741

Trade accounts payable


6,079


196,434

Accrued taxes payable


(51,879)


(163,335)

Other payables and accrued expenses


(387,569)


(52,823)

Advances from customers


(12,285)


20,709

Prepaid expenses


8,065


2,888

Net Cash Provided by Operating Activities


90,523


523,739






Cash Flows from Investing Activities:





Purchases of property and equipment


(73,866)


(3,627)

Net Cash Used in Investing Activities


(73,866)


(3,627)






Cash Flows from Financing Activities:





Payments of construction term loan


(148,227)


(157,316)

Payments of related party payables


(119,561)


-

Net Cash Used in Financing Activities


(267,788)


(157,316)






Effect of Exchange Rate Changes on Cash


25,821


75,025

Net (Decrease) Increase in Cash and Cash Equivalents


(225,310)


437,821

Cash and Cash Equivalents at Beginning of Period


1,186,587


2,030,214

Cash and Cash Equivalents at End of Period


$          961,277


$       2,468,035






Supplemental Cash Flow Information:





Cash paid for income taxes


$                    -


$                    -

Cash paid for interest


$            80,693


$          125,716






Supplemental Noncash Investing and Financing Activities:





Issuance of banker's acceptances


$            55,603


$          443,748

Accounts receivable collected with banker's acceptances


175,793


133,053

Inventory purchased with banker's acceptances


145,614


148,924

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


236,055


-

View original content:http://www.prnewswire.com/news-releases/china-pharma-holdings-inc-reports-first-quarter-2019-financial-results-300850584.html

免责声明:本文观点仅代表作者个人观点,不构成本平台的投资建议,本平台不对文章信息准确性、完整性和及时性做出任何保证,亦不对因使用或信赖文章信息引发的任何损失承担责任。
登录后可参与评论
小虎正在努力加载中~

推荐内容

小虎正在努力加载中~