China Pharma (US:CPHI)2025-03-31 20:20Revenue Performance - Revenue for the fiscal year ended December 31, 2024, was $4.5 million, a decrease of $2.5 million from $7.0 million in 2023, primarily due to increased competition in the national centralized procurement (CP) program [276]. - The "Digestive Diseases" product category saw the most significant revenue decline, generating $0.20 million in 2024 compared to $1.09 million in 2023, a decrease of 82% [277]. - The "Anti-Viral/ Infection & Respiratory" category generated $2.75 million in 2024, down 23% from $3.57 million in 2023, due to not passing the consistency evaluation for Roxithromycin [278]. - The "CNS Cerebral & Cardio Vascular" product category represented 30% of total revenue in 2024, up from 23% in 2023 [281]. - Helpson began serving as a Contract Manufacturing Organization (CMO) in April 2024, generating approximately $50,000 in revenue within the year, with further revenue expected post-product launch [275]. Financial Losses - Gross loss for 2024 was $2.0 million, with a gross loss margin of 43.8%, compared to a gross loss of $0.3 million and a margin of 4.0% in 2023 [284]. - The operating loss for the year ended December 31, 2024, was $4.59 million, compared to $2.75 million in 2023 [295]. - The net loss for the year ended December 31, 2024, was $4.74 million, an increase from a net loss of $3.08 million in 2023 [297]. Expenses - General and administrative expenses increased to $1.78 million in 2024, accounting for 39.4% of total revenues, up from 20.9% in 2023, primarily due to amortization expenses related to purchased patent technology [286]. - Research and development expenses rose to $0.28 million in 2024, representing 6.3% of total revenues, compared to 3.4% in 2023, mainly focused on consistency evaluation of existing products [287]. - Cost of revenue for 2024 was $6.5 million, or 143.8% of total revenue, an increase from 104.0% in 2023, driven by idle equipment costs and increased inventory impairments [283]. Cash and Assets - Cash and cash equivalents as of December 31, 2024, were $0.63 million, representing 4.2% of total assets, down from $1.42 million or 8.6% of total assets in 2023 [300]. - Total inventory as of December 31, 2024, was $2.27 million, a decrease from $3.73 million as of December 31, 2023 [304]. - Net trade accounts receivable as of December 31, 2024, was $0.23 million, a decrease of $0.27 million from $0.50 million in 2023 [303]. - The total balance of allowance for credit losses was $13.6 million as of December 31, 2024, down from $13.8 million in 2023 [294]. - As of December 31, 2024, total assets included cash and cash equivalents that are reinvested indefinitely in the Company's Chinese subsidiary, Helpson [300]. Credit Losses - As of December 31, 2024, the allowance for credit losses as a percentage of trade accounts receivable was 98.3%, up from 96.5% in 2023 [292]. - The bad debt expense for the year ended December 31, 2024, was $5,702, compared to a reversal of allowance for credit losses of $15,757 in 2023 [294].