China Pharma (US:CPHI)2025-11-12 21:10Revenue Performance - Revenue for the three months ended September 30, 2025, was $0.8 million, a decline of 27.3% from $1.1 million in the same period of 2024[102] - For the nine months ended September 30, 2025, total revenue was $2.9 million, a decrease from $3.4 million in the same period in 2024[125] - The "Anti-Viral/ Infection & Respiratory" product category saw a revenue decline of $0.40 million, generating $1.67 million in sales for the nine months ended September 30, 2025, a 19% decrease compared to the previous year[127] Product Category Performance - The "Anti-Viral/Infection & Respiratory" product category generated $0.42 million in revenue, down 37% from $0.67 million in the same period last year[103] - The "CNS Cerebral & Cardio Vascular" product category saw a revenue decrease of 24%, from $0.33 million to $0.25 million[104] Gross Loss and Margin - Gross loss for the three months ended September 30, 2025, was $0.06 million, improving from a gross loss of $0.52 million in the same period of 2024, resulting in a gross loss margin of 7.9%[109] - Gross loss for the nine months ended September 30, 2025 was $0.3 million, improving from a gross loss of $1.8 million in the same period in 2024, resulting in a gross loss margin of 9.7% compared to 53.8%[134] Expenses - General and administrative expenses increased to $0.42 million, accounting for 56.2% of total revenues, compared to 31.4% in the same period of 2024[111] - General and administrative expenses increased to $1.37 million for the nine months ended September 30, 2025, accounting for 47.0% of total revenues, up from 27.3% in 2024[136] - Research and development expenses decreased to $0.04 million, representing 5.3% of total revenues, down from 8.0% in the same period last year[112] - Research and development expenses decreased to $0.09 million for the nine months ended September 30, 2025, down from $0.28 million in the same period in 2024[138] Net Loss - Net loss for the nine months ended September 30, 2025 was $2.0 million, an improvement from a net loss of $3.5 million in the same period in 2024[140] Cash and Assets - Cash and cash equivalents were $0.27 million as of September 30, 2025, down from $0.63 million as of December 31, 2024, representing 1.7% of total assets[142] - Total inventory decreased to $1.65 million as of September 30, 2025, compared to $2.27 million as of December 31, 2024[147] Credit Losses - Credit losses for the three months ended September 30, 2025, were $25,302, compared to a reversal of credit losses of $1,656 in the same period of 2024[113] - As of September 30, 2025, the allowance for credit losses as a percentage of trade accounts receivable was 23.7%, down from 97.7% in 2024, a decrease of 74.0% due to write-offs of accounts receivable over 8 years old[117] Strategic Initiatives - Helpson continues to explore comprehensive healthcare opportunities, with the Chinese health service industry expected to reach RMB 16 trillion (approximately $2.5 trillion) by 2030[99] - Helpson's flagship product, Candesartan tablets, passed the generic-drug consistency evaluation in August 2023, but no other new products have achieved this status[97] Regulatory and Reporting - The Chinese government imposes controls on the conversion of RMB into foreign currencies, affecting the ability of Helpson, the Chinese subsidiary, to transfer net assets to the parent company[151] - As of September 30, 2025, the company did not have any off-balance sheet arrangements[152] - Financial statements are prepared in accordance with United States generally accepted accounting principles, requiring significant estimates and judgments by management[153] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[154]