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China Pharma Holdings, Inc. Reports Second Quarter 2009 Financial Results and Corporate Updates
Date:8/11/2009

HAIKOU CITY, China, Aug. 11 /PRNewswire-Asia-FirstCall/ -- China Pharma Holdings, Inc. ("China Pharma") (OTC Bulletin Board: CPHI), which develops, manufactures, and markets specialty pharmaceutical products in China, today announced financial results for the second quarter ended June 30, 2009.

    Second Quarter 2009 Financial Highlights
    -- Revenue increased 20.6% to $13.6 million from $11.3 million in the
       second quarter of 2008;
    -- Gross profit was $5.92 million, compared to $5.95 million in the second
       quarter of 2008;
    -- Gross margin was 43.5% compared to 52.8% in the second quarter of
       2008; and
    -- EPS was $0.10, compared to $0.10 in the second quarter of 2008.

Revenue for the second quarter of 2009 increased approximately 20.6% to $13.6 million, from $11.3 million in the second quarter of 2008. The increase in revenue was driven by the Anti-Viral/Infection product category, which increased 19% to $5.2 million over the prior year period. Sales from CNS and Cerebral & Cardio Vascular drugs increased 4% to $5.1 million. Digestive product sales increased 101% to $0.94 million, mainly due to the sales contribution from the new product Tiopronin. In the Other Products category (including tumor drug Granisetron, and various other products), sales increased 36% to $2.3 million.

Gross profit for the second quarter of 2009 was $5.92 million, compared to $5.95 million in the second quarter of 2008. Gross margin was 43.5%, compared to 52.8% during the second quarter of 2008. Gross margin performance reflects increased sales of lower margin products during this quarter.

Operating expenses for the second quarter of 2009 decreased 31.7% to $1.1 million, from $1.6 million in the same period of 2008. Selling expenses increased 32.3% to $603,924 from $456,630 in the second quarter of 2008, due to the Company's substantial expanding investment in
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SOURCE China Pharma Holdings, Inc.
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