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China Pharma Holdings, Inc. Reports Third Quarter 2008 Financial Results and Corporate Updates
Date:11/7/2008

y the SFDA in January 2008 for the treatment of edema caused by heart disease and hypertension. The Company continues to focus on expanding its capacity and distribution networks to support the development, manufacturing and sales of additional products.

Operating expenses in the third quarter of 2008 totaled $1.42 million, up 87.89% from approximately $0.76 million in the comparable period of 2007. The main reason was $0.46 million in Allowance for Bad Debt for this period, because in the same period last year, a substantial amount of aged receivables was collected, making that period's Allowance for Bad Debt, negative $0.17 million. Operating income in the third quarter of 2008 was approximately $4.7 million, an increase of 50.29% from approximately $3.1 million in the same period of 2007, while operating margin was approximately 37.23%, compared to 37.66% in the third quarter of 2007.

Gross profit in the third quarter of 2008 was approximately $6.12 million, up 57.62% compared to approximately $3.88 million in the third quarter of 2007. Gross margin was approximately 48.5%, higher than 46.79% in the prior year's period, and above the pharmaceutical industry's average of 34.2%.

Net income for the third quarter of 2008 rose 37.82% to approximately $4.25 million, or $0.10 per basic and diluted share, compared to $3.08 million, or $0.08 per basic and diluted share, in the same period a year ago. Diluted share count in the third quarter of 2008 was approximately 42.3 million, compared to approximately 37.2 million in the third quarter of 2007.

President and CEO, Ms. Zhilin Li, commented, "We are confident that our continued strong revenue growth for the third quarter of 2008 is a reflection of our focus on the largest segments of China's pharmaceutical market, in disease areas of high incidence and high mortality. Our rapid growth is supported by the ongoing delivery of new products, product technology, and branding. We are competitive with
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SOURCE China Pharma Holdings, Inc.
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