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China Pharma Holdings, Inc. Announces Record 2007 Year End Results
Date:3/31/2008


-- Fiscal year Revenue Increased 51.9% to $33.2 Million

-- Fiscal year Net Income Increased 49.3% to $12.8 Million

-- The Company Provides Guidance of 40% Growth in Revenue for 2008

NEW YORK and HAIKOU, Hainan, China, March 31 /Xinhua-PRNewswire-FirstCall/ -- China Pharma Holdings, Inc. ("China Pharma") (OTC Bulletin Board: CPHI) which develops, manufactures, and markets generic and branded bio-pharmaceutical products in China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2007 ("FY07").

Fourth Quarter 2007 Financial Results

Revenues for the fourth quarter of 2007 increased approximately 12.3% to approximately $9.1 million, from $8.1 million in the prior year's quarter. Revenues in the quarter were driven by organic growth reflecting an increased market penetration of existing portfolio products. The slower revenue growth rate from the quarter a year ago, was primary attributed to two new drug approvals during the third quarter in 2006 which accelerated sales in the fourth quarter of 2006 due to their launch. However, the Company has positioned itself for new approvals in 2008 as the Chinese SFDA has resumed normal operations.

Gross profit in the fourth quarter of 2007 increased approximately 28.6% to $4.5 million from $3.5 million in the fourth quarter of 2006. The gross profit margin increased to 49.5% in the fourth quarter of 2007, compared to 43.2% in the prior year's quarter.

Operating income for the fourth quarter of 2007 increased 78.8% to $4.8 million from $2.7 million for the same quarter in 2006. Operating margins were 52.7% during the fourth quarter of 2007 compared to 33.3% in 2006. The increase resulted from revenue growth and the recovery of bad debt during the fourth quarter of 2007.

Earnings before taxes accelerated 40.7% in the fourth quarter of 2007 to $3.9 million or 42.5% of revenue, versus $2.75 million or 34% o
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SOURCE China Pharma Holdings, Inc.
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