China Pharma Holdings, Inc. Reports Third Quarter 2008 Financial Results and Corpora...(5693059 2839304 Retained ea...),Health

Retained earnings 37,685,487 25,206,169

Total Stockholders' Equity 64,483,411 39,761,358

TOTAL LIABILITIES AND STOCKHOLDERS'

EQUITY $66,824,681 $43,706,320 CHINA PHARMA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)

For the three months For the nine months

ended September 30, ended September 30,

2008 2007 2008 2007

Revenue $12,610,642 $8,293,497 $35,606,490 $24,097,521

Cost of revenue 6,494,266 4,413,052 17,730,026 13,018,566

Gross profit 6,116,376 3,880,445 17,876,464 11,078,955

Operating expenses:

Selling expenses 529,432 591,193 1,323,854 896,128

General and

administrative 427,399 328,743 1,226,888 927,162

Research and

development 5,581 5,941 42,807 5,942

Bad debt expense, net

of recoveries 459,500 (169,095) 1,539,313 910,718

Total operating

expenses 1,421,912 756,782 4,132,862 2,739,950

Income from operations 4,694,464 3,123,663 13,743,602 8,339,005

Non-operating income

(expenses):

Interest income 26,224 4,400 31,259 29,808

Interest expense (34,629) (50,857) (130,342) (166,698)

Other (expense) income (9,588) 7,549 (87,038) 582,827

Total non-operating

income (expense) (17,993) (38,908) (186,121) 445,937

Income before taxes 4,676,471 3,084,755 13,557,481 8,784,942

Income tax expense
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