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

HAIKOU,China,Nov. 13,2021 --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,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,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 continuedto focus on the consistency evaluation of existing listed products. Ourhypertensive drug Candesartan has passed thekey 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 severalcities 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,wealsosee considerable opportunities ahead of usthanks 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 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

$ 18,991

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

6,223

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

(826,740)

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

46,427

43,557

45,721,389

43,557

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

$ (2,757)

$ (1,740)

Depreciation and amortization

2,377,104

1,363

Bad debt (benefit) expense

(4,314

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

(430,878)

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:Diana Huang,hps@chinapharmaholdings.com,+86-15595806797

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