China Pharma (US:CPHI)2023-05-11 16:00Revenue and Sales Performance - Revenue increased by 22.2% to $2.0 million for the three months ended March 31, 2023, compared to $1.6 million for the same period in 2022[91]. - The "Other" product category generated $0.36 million in sales revenue, an increase of 71% from $0.21 million in the same period last year, primarily due to increased mask sales[94]. - The "CNS Cerebral & Cardio Vascular" product category represented 21% of total revenue for the three months ended March 31, 2023, up from 18% in the same period in 2022[96]. Profitability and Expenses - Gross profit for the three months ended March 31, 2023 was $0.2 million, compared to a gross loss of $0.2 million during the same period in 2022, resulting in a gross profit margin of 9.1%[98]. - Selling expenses decreased to $0.14 million for the three months ended March 31, 2023, accounting for 7.4% of total revenue, down from 11.2% in the same period in 2022[99]. - General and administrative expenses were $0.42 million, representing 21.3% of total revenues for the three months ended March 31, 2023, compared to 32.1% in the same period in 2022[101]. - Research and development expenses were $0.02 million, accounting for 1.2% of total revenues for the three months ended March 31, 2023, down from 3.4% in the same period in 2022[102]. - Operating loss for the three months ended March 31, 2023 was $0.4 million, an improvement from an operating loss of $0.9 million during the same period in 2022[108]. - Net interest expense decreased to $0.08 million for the three months ended March 31, 2023, compared to $0.12 million for the same period in 2022[109]. - Net Loss for Q1 2023 was $0.5 million, a decrease from a net loss of $1.0 million in Q1 2022, resulting in a loss per share of $0.06 compared to $0.22 in the prior year[110]. Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2023, were $1.2 million, representing 6.7% of total assets, down from $2.0 million or 11.4% of total assets as of December 31, 2022[111]. - Net cash used by operating activities was $1.5 million in Q1 2023, compared to $0.9 million in Q1 2022[115]. - Total inventory increased to $3.8 million as of March 31, 2023, from $2.9 million as of December 31, 2022[115]. - Cash flow provided by financing activities was $0.52 million in Q1 2023, compared to cash flow used of $0.28 million in Q1 2022[116]. - Helpson's net assets were $(199,000) as of March 31, 2023, with no allocations to statutory surplus reserve accounts during Q1 2023[117]. - The company has not encountered difficulties refinancing lines of credit and has an aggregated advance from the CEO of $1,142,870 for operations[111]. - The company may seek additional debt or equity financing as necessary, raising concerns about its ability to continue as a going concern[114]. - As of March 31, 2023, net accounts receivable was $0.5 million, up from $0.4 million as of December 31, 2022[115]. - The company did not have any off-balance sheet arrangements as of March 31, 2023[119]. Market Outlook - The total size of China's health service industry is projected to reach RMB 16 trillion (approximately $2.5 trillion) by 2030, indicating significant market expansion opportunities[89].