China Pharma Holdings, Inc. Reports Fiscal Year 2018 Financial Results
China Pharma Holdings, Inc. Reports Fiscal Year 2018 Financial Results |
[29-March-2019] |
HAIKOU, China, March 29, 2019 /PRNewswire/ -- China Pharma Holdings, Inc. (NYSE American: CPHI) ("China Pharma," the "Company" or "We"), an NYSE American-listed corporation with a fully-integrated specialty pharmaceuticals subsidiary based in China, today announced financial results for the fiscal year ended December 31, 2018. Full Year Highlights
In a statement from Ms. Zhilin Li, China Pharma's Chairman and CEO, "We experienced certain market fluctuations in 2018, but through the continued implementation of sales promotions, our sales revenue of 2018 was comparable to the same period a year ago. Management will continue to vigorously promote sales through active participation in recent provincial market openings to solicit new drug tender offers and allow China Pharma to expand its presence in these markets." Ms. Li continued, "In addition, we continued experiencing sustained pressure from the more stringent requirements of drug registration standards, consistency evaluations, and the rising costs of clinical trials in 2018. In this challenging environment, the company actively evaluated the technical difficulty, investment demand, time requirements, and investment return rate of all applicable marketed and pipeline products, and actively advanced the compliance process for several key products in 2018." Full Year Results Revenue decreased by 6.7% to $12.3 million for the year ended December 31, 2018, as compared to $13.2 million for the year ended December 31, 2017. This decrease was mainly due to the negative impact associated with health insurance cost controls as well as government policies targeted at reducing drug costs as a proportion of total health-care spending, in conjunction with the Company's efforts in controlling bad debts by more rigorous screening customers and more stringent policies on payment terms. Gross profit for the year ended December 31, 2018 was $2.0 million, compared to $2.5 million in 2017. Our gross profit margin in 2018 was 16.0% compared to 18.7% in 2017. This decline in our gross profit margin was mainly due to a decrease in our sales, and our fixed manufacturing overhead. Our selling expenses for the year ended December 31, 2018 were $3.2 million, a decrease of $0.2 million compared to $3.5 million for the year ended December 31, 2017. Selling expenses accounted for 26.1% of the total revenue in 2018 compared to 26.2% in 2017. Our general and administrative expenses for the year ended December 31, 2018 were $1.9 million, which was close to $2.0 million in 2017. General and administrative expenses accounted for 15.8% and 15.3% of our total revenues in 2018 and 2017, respectively. Our bad debt expenses for the year ended December 31, 2018 was $0.6 million, which represented a decrease of $0.8 million compared to $1.4 million in 2017. The decrease in our bad debt expenses was mainly due to the change in the composition of aging of accounts receivables for the years ended December 31, 2018 compared to December 31, 2017, which came in line with the Company's more stringent scrutiny upon customers' payment history. Impairment of intangible assets for the year ended December 31, 2018 was $6.5 million, compared to $14.2 million in 2017. As a pharmaceutical company, we have been focusing on the development and maintenance of our intangible assets, mainly in the form of medical formulas. Because of recently implemented government policies such as consistency evaluations, our management made certain assessments regarding the impairment of our intangible assets as of December 31, 2018 and December 31, 2017 respectively, and identified two formulas and six formulas in 2018 and 2017, respectively, that would likely be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly. Net loss for year ended December 31, 2018 was $10.8 million, or ($0.25) each basic and diluted share, compared to net loss of $19.3 million, or ($0.44) each basic and diluted share, for the year ended December 31, 2017. The decrease in net loss was mainly a result of the decrease in impairment of long term assets. Financial Condition As of December 31, 2018, the Company had cash and cash equivalents of $1.2 million compared to $2.0 million as of December 31, 2017. Working capital decreased to ($1.3) million as of December 31, 2018 from $3.1 million as of December 31, 2017. As of December 31, 2018, our net accounts receivable was $0.9 million, compared to $2.3 million as of December 31, 2017. For the year ended December 31, 2018, cash flow from operating activities was $1.3 million, as compared to $0.8 million in 2017. Conference Call The Company will hold a conference call at 8:30 am E.T. on March 29, 2019 to discuss the results of full year 2018. Listeners may access the call by dialing 1-866-519-4004 or 65-671-350-90 for international callers, Conference ID # 3784037. A replay of the call will be accessible through April 6, 2019 by dialing 1-855-452-5696 or 61-281-990-299 for international callers, Conference ID # 3784037. About China Pharma Holdings, Inc. China Pharma Holdings, Inc. is a specialty pharmaceutical company that develops, manufactures and markets a diversified portfolio of products, focused on conditions with high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company's cost-effective, high-margin business model is driven by market demand and supported by new GMP-certified product lines covering the major dosage forms. In addition, the Company has a broad and expanding nationwide distribution network across all major cities and provinces in China. The Company's wholly-owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., is located in Haikou City, Hainan Province. For more information about China Pharma Holdings, Inc., please visit www.chinapharmaholdings.com. The Company routinely posts important information on its website. Safe Harbor Statement Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties may include, but are not limited to: the achievability of financial guidance; success of new product development; unanticipated changes in product demand; increased competition; downturns in the Chinese economy; uncompetitive levels of research and development; and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations, except as required by applicable law or regulation. - FINANCIAL TABLES FOLLOW -
View original content:http://www.prnewswire.com/news-releases/china-pharma-holdings-inc-reports-fiscal-year-2018-financial-results-300820880.html SOURCE China Pharma Holdings, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: AMEX:CPHI |
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