China Pharma (US:CPHI)2024-11-13 21:05Revenue Performance - Revenue for the three months ended September 30, 2024, was $1.1 million, a decline of 39% from $1.8 million in the same period of 2023[114] - For the nine months ended September 30, 2024, total revenue was $3.4 million, down from $4.9 million in the same period of 2023, representing a decrease of approximately 30.6%[137] Product Category Performance - The "Anti-Viral/Infection & Respiratory" product category generated $0.67 million in revenue, an increase of 6% from $0.63 million in the same period last year[115] - The "Digestive Diseases" product category saw a significant decline of 91%, with revenue dropping from $0.65 million to $0.06 million[118] - The company experienced a significant revenue decrease in the "Digestive Diseases" product category, with sales dropping from $1.02 million in 2023 to $0.14 million in 2024, a decline of 86%[140] Cost and Expenses - Cost of revenue for the three months ended September 30, 2024, was $1.6 million, representing 147.2% of total revenue, compared to 112.9% in the same period of 2023[121] - Gross loss for the three months ended September 30, 2024, was $0.52 million, with a gross loss margin of 47.2%, up from 12.9% in the same period last year[123] - Selling expenses accounted for 12.2% of total revenue in the three months ended September 30, 2024, compared to 11.5% in the same period of 2023[124] - General and administrative expenses increased to $0.34 million, accounting for 31.4% of total revenues, up from 13.7% in the same period last year[125] - Research and development expenses rose to $0.09 million, representing 8.0% of total revenues, compared to 2.5% in the same period of 2023[126] - The cost of revenue for the nine months ended September 30, 2024, was $5.2 million, or 153.8% of total revenue, compared to $5.1 million, or 104.2% of total revenue in 2023[146] - Gross loss for the nine months ended September 30, 2024, was $1.8 million, with a gross loss margin of 53.8%, compared to a gross loss of $0.2 million and a margin of 4.2% in the same period of 2023[147] - Selling expenses for the nine months ended September 30, 2024, were $0.35 million, accounting for 10.4% of total revenue, compared to $0.52 million and 10.7% in 2023[148] - General and administrative expenses increased to $0.93 million for the nine months ended September 30, 2024, representing 27.3% of total revenue, up from $0.78 million and 16.0% in 2023[149] - Research and development expenses rose to $0.28 million for the nine months ended September 30, 2024, compared to $0.09 million in the same period of 2023, marking an increase of 211.1%[150] Net Loss and Financial Position - Net loss for the nine months ended September 30, 2024, was $3.5 million, compared to $1.8 million in the same period of 2023, indicating a 94.4% increase in net loss[152] - As of September 30, 2024, cash and cash equivalents were $0.72 million, representing 5.3% of total assets, down from $1.42 million and 8.6% as of December 31, 2023[154] - As of September 30, 2024, Helpson's net assets totaled $5.273 million, up from $2.289 million as of December 31, 2023[160] Capital and Reserves - Helpson's registered capital was $8.145 million as of both September 30, 2024, and December 31, 2023, with 50% allocated to statutory surplus reserves, restricting dividend distribution[160] - No allocations were made to statutory surplus reserve accounts during the nine months ended September 30, 2024[160] Regulatory and Compliance - The Chinese government imposes controls on the conversion of RMB into foreign currencies, affecting Helpson's ability to transfer net assets to the parent company[161] - Financial statements are prepared in accordance with United States generally accepted accounting principles, requiring significant estimates and judgments[163] - The company is classified as a "smaller reporting company" and is not required to provide detailed market risk disclosures[164] Product Development and Certification - The company’s flagship product, Candesartan tablets, passed the generic-drug-consistency-evaluation in early August 2023[109] - Helpson's N95 medical protective mask received registration certification at the end of 2022 and is now available nationwide in mainland China[111] Accounts Receivable - As of September 30, 2024, the allowance for doubtful accounts as a percentage of accounts receivable was 97.7%, a slight decrease from 97.8% in 2023, attributed to a lower percentage of accounts receivable over 720 days old[131] Cash Flow and Investment - Investing activity amounted to $18.866 million for the nine months ended September 30, 2024, compared to $6.990 million for the same period in 2023, reflecting a significant increase[159] - Cash flow from financing activities was $0.02 million for the nine months ended September 30, 2024, down from $0.04 million in the same period of 2023[160] - As of September 30, 2024, there were no off-balance sheet arrangements reported[162]