China Pharma (US:CPHI)2025-08-14 20:06Revenue Performance - Revenue for the three months ended June 30, 2025, was $1.03 million, an increase of $0.10 million (approximately 10.9%) compared to $0.92 million for the same period in 2024[95]. - For the six months ended June 30, 2025, revenue decreased by 5.8% to $2.16 million, compared to $2.29 million for the same period in 2024[118]. Product Category Performance - The "Anti-Viral/ Infection & Respiratory" product category generated $0.53 million, representing 52% of total sales, with a 10% increase from $0.48 million in the same period last year[96][100]. - The "CNS Cerebral & Cardio Vascular" category generated $0.42 million, a 14% increase from $0.37 million in the same period last year, accounting for 40% of total revenue[97][100]. Cost and Expenses - Cost of revenue decreased to $1.11 million (108.5% of total revenue) from $1.94 million (209.8% of total revenue) in the same period last year[101]. - Gross loss improved to $0.09 million with a gross loss margin of 8.5%, compared to a gross loss of $1.02 million and a margin of 109.8% in the same period last year[102]. - Selling expenses decreased to $0.10 million (9.9% of total revenue) from $0.11 million (12.0% of total revenue) in the same period last year[103]. - General and administrative expenses increased to $0.44 million (43.0% of total revenue) from $0.09 million (9.9% of total revenue) in the same period last year, primarily due to increased amortization of intangible assets[104]. - Research and development expenses were $0.02 million (2.0% of total revenue) for the three months ended June 30, 2025, down from $0.16 million (17.8% of total revenue) in the same period last year[105]. - Selling expenses for the six months ended June 30, 2025, were $0.19 million, accounting for 8.7% of total revenue, down from 9.6% in the same period in 2024[127]. - Research and development expenses for the six months ended June 30, 2025, were $0.05 million, a decrease from $0.20 million in the same period in 2024[130]. Net Loss and Financial Position - Net loss for the three months ended June 30, 2025, was $0.53 million, an improvement from a net loss of $1.44 million for the same period in 2024[115]. - The gross loss for the six months ended June 30, 2025, was $0.22 million, significantly improved from a gross loss of $1.31 million in the same period in 2024, resulting in a gross loss margin of 10.3% compared to 56.9%[126]. - As of June 30, 2025, Helpson's net assets totaled ($7,187,000), with no allocations to statutory surplus reserve accounts during the six months ended June 30, 2025[142]. - Helpson's registered capital was $8,145,000 as of June 30, 2025, which is the amount that cannot be transferred to the parent company as cash dividends[142]. Cash Flow and Receivables - Net cash used in operating activities was $0.23 million for the six months ended June 30, 2025, compared to $0.66 million of net cash generated in the same period in 2024[138]. - As of June 30, 2025, net trade accounts receivable was $0.27 million, an increase of $0.04 million from $0.23 million as of December 31, 2024[138]. - Net cash used in investing activities for the six months ended June 30, 2025, was $0.09 million, an increase from $0.03 million in the same period in 2024[140]. - Cash flow used by financing activities was $0.09 million in the six months ended June 30, 2025, compared to $0.01 million provided in the same period in 2024[141]. Regulatory and Market Context - The company continues to explore comprehensive healthcare opportunities, with the Chinese health service industry expected to reach RMB 16 trillion (approximately $2.5 trillion) by 2030[93]. - Helpson's N95 medical protective mask received registration certification at the end of 2022 and is now available nationwide in mainland China[93]. - The currency exchange control procedures imposed by Chinese government authorities may restrict Helpson from transferring its net assets to the parent company[143]. - As of June 30, 2025, there were no off-balance sheet arrangements[144]. - The financial statements are prepared in accordance with United States generally accepted accounting principles, requiring significant estimates and judgments[145]. - As a "smaller reporting company," the company is not required to provide additional market risk disclosures[146].