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

cal years 2007 and 2006, respectively, with the slight reduction being primarily due to an increase of sales and marketing expenses. Diluted EPS for the fiscal year ended December 31, 2007 were $0.34 compared to $0.25 for 2006. The weighted average numbers of shares outstanding to calculate the diluted earnings per share were 37.3 million and 34.7 million, respectively.

Balance Sheet and Cash Flow Discussion

On December 31, 2007, the Company had $1.8 million in cash and equivalents and stockholders' equity of $39.8 million as compared with stockholders' equity of$20.9 million on December 31, 2006. Net cash from operations was $2.8 million for the twelve months ended December 31, 2007, as compared with net cash from operations of negative $1.7 million during 2006.

Total accounts receivable, less an allowance for doubtful accounts, was $18.6 million on December 31, 2007 as compared to $12.1 million on December 31, 2006. The increase in accounts receivable was due primarily to substantially higher revenues. The Company has had a good track record of customer collections since inception.

"We are very pleased to report another year of record revenue and net income. The Company performed well both in terms of financial performance and execution of our key business strategies. Our diversified portfolio and development strategy focused on therapeutics targeting high mortality and high population diseases enabled us to deliver a strong financial performance in 2007. Additionally, our investment in marketing has proven to be successful and we anticipate further benefits in 2008. The organic growth of our existing portfolio was due primarily to the expansion of our distribution network and increased market penetration. We believe that we have put in place the operating foundation and growth strategies which will enable us to sustain our growth and maintain our position as a leading generic drug company in China," Ms. Li concluded.

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SOURCE China Pharma Holdings, Inc.
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