China Pharma (US:CPHI)2024-05-15 20:06Revenue Performance - Revenue decreased by 30.1% to $1.37 million for the three months ended March 31, 2024, compared to $1.96 million for the same period in 2023[104] - The "Other" product category saw the most significant revenue decrease, generating $0.08 million in sales for Q1 2024, down from $0.36 million in Q1 2023, a decrease of $0.28 million[105] Cost and Expenses - Cost of revenue for Q1 2024 was $1.66 million, representing 121.2% of total revenue, compared to $1.78 million or 90.9% of total revenue in Q1 2023[109] - Gross loss for Q1 2024 was $0.29 million, with a gross loss margin of 21.2%, compared to a gross profit of $0.18 million and a margin of 9.1% in Q1 2023[110] - Selling expenses for Q1 2024 were $0.11 million, accounting for 7.9% of total revenue, compared to $0.14 million or 7.4% in Q1 2023[111] - General and administrative expenses increased to $0.49 million in Q1 2024, accounting for 35.7% of total revenues, up from $0.42 million or 21.3% in Q1 2023[112] - Research and development expenses for Q1 2024 were $0.03 million, representing 2.3% of total revenues, compared to $0.02 million or 1.2% in Q1 2023[114] Operating and Net Loss - Operating loss for Q1 2024 was $0.92 million, compared to a loss of $0.40 million in Q1 2023, primarily due to decreased revenue[121] - Net loss for Q1 2024 was $0.96 million, an increase from a net loss of $0.48 million in Q1 2023, attributed to decreased revenue[123] Cash and Assets - Cash and cash equivalents as of March 31, 2024, were $0.84 million, down from $1.42 million as of December 31, 2023, representing 5.2% of total assets[124] - Net cash used in operating activities was $0.59 million for Q1 2024, compared to $1.47 million in Q1 2023[127] - Total inventories as of March 31, 2024, were $3.68 million, slightly down from $3.73 million as of December 31, 2023[127] - Cash flow from financing activities was $6,856 for Q1 2024, a significant decrease from $518,237 in Q1 2023[129] - Helpson's net assets were $(3,002,966) as of March 31, 2024, with statutory surplus reserves exceeding total net assets[130] Financing and Future Outlook - The company has not encountered difficulties refinancing lines of credit and has an aggregated advance from the CEO of $1,138,795 for operations[124] - The company may seek additional debt or equity financing as necessary, raising concerns about its ability to achieve future strategic goals[126] - There were no cash flow activities under investing activities in Q1 2024, compared to $55,964 generated in Q1 2023[128] Product Development and Market Potential - The consistency evaluation of generic drugs is a priority for Helpson, with one flagship product, Candesartan tablets, passing the evaluation in August 2023[100] - Helpson's N95 medical protective mask received registration certification by the end of 2022 and is now sold nationwide in mainland China[102] - The total size of China's health service industry is expected to reach RMB 16 trillion (approximately $2.5 trillion) by 2030, indicating significant market potential for Helpson[102]