China Pharma Holdings Reports $1.14 Million Revenue in Q1 2025, Faces Increased Competition

China Pharma Holdings, Inc. reported a revenue of $1.14 million for the first quarter of 2025, a decrease of approximately 16.8% from $1.37 million in the same period of 2024. The decline in revenue is attributed to increased competition from other pharmaceutical providers whose products have been included in China's national centralized procurement (CP) program, while China Pharma's products have not yet passed the necessary consistency evaluations. The company's cost of revenue also decreased to $1.27 million, down from $1.66 million, resulting in a gross loss of $0.14 million, an improvement from a gross loss of $0.29 million in the prior year.

Operating expenses for the quarter were $0.62 million, slightly lower than the $0.63 million reported in the previous year. Selling expenses decreased to $0.09 million from $0.11 million, while general and administrative expenses increased to $0.51 million from $0.49 million, primarily due to higher amortization costs related to intangible assets. The company reported a net loss of $0.79 million for the quarter, a reduction from a net loss of $0.96 million in the same period last year. Loss per share was $0.24, compared to $0.72 in the prior year, reflecting the impact of a 1-for-10 reverse stock split effective April 15, 2025.

In terms of operational metrics, China Pharma's total current assets decreased to $2.85 million as of March 31, 2025, from $3.27 million at the end of 2024. The company's cash and cash equivalents also fell to $0.41 million, down from $0.63 million. Trade accounts receivable increased to $0.33 million, while total inventory decreased to $1.98 million. The company continues to face challenges with its accounts receivable, with a significant portion of its trade accounts receivable being past due.

Looking ahead, China Pharma's management has indicated plans to enhance its sales model and strengthen its collection of accounts receivable. The company is also exploring strategic alternatives to accelerate the launch of new nutrition products. However, there is substantial doubt about the company's ability to continue as a going concern, given its accumulated deficit of $44.8 million and ongoing operating losses. Management is implementing measures to reduce operating costs and improve cash flow, but the success of these initiatives remains uncertain.