China Pharma Holdings, Inc. Reports First Quarter 2009 Financial Results and Corpora...(gefforts and distribution capabilities w...),Health

Balance Sheet

As of March 31, 2009, the Company had cash and cash equivalents of $5.2 million, which represented 6.4% of total assets; compared to $0.7 million in the same period for 2008, which represented 1.4% of the total assets. Compared to the position of December 31, 2008, this was a decrease of $1.8 million. This was primarily due to the investing activities in new drug development in the first quarter of 2009.

    Business Update

    -- On April 30, 2009, the Board of Directors appointed Mr. Frank Waung to
       Chief Financial Officer, and nominated Ms. Heung Mei Tsui to join the
       Board.

    -- On February 11, 2009, the Company announced the initiation of clinical
       trials for the generic version of the leading hypertension drug
       Candesartan.

    -- On January 12, 2009, the Company announced that China's State Food and
       Drug Administration ("SFDA") approved the production of Tiopronin
       Enteric-Coated Capsules. Tiopronin is listed in the National Medical
       Insurance Program, thus allowing patients to obtain reimbursement.

    -- The expansion of our dried powder production line is complete and
       production has commenced. The new capacity will allow us to meet growth
       in demand for dried powder formulation products over the next few
       years.

Financial Guidance

While healthcare reform will likely cause changes to the competitive landscape of pharmaceutical market in China, we expect 20% top line growth in 2009 based on our existing product portfolio and new products, as well as our efforts to drive market share and expand our distribution network.

Ms. Li concluded, "In the first quarter of 2009, we saw great potential from our newly-launched products and strong demand for our existing produc
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