Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from ____________ to ____________

Commission File Number 001-34471

CHINA PHARMA HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Nevada		75-1564807
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification No.)
Second Floor, No. 17, Jinpan Road Haikou, Hainan Province, China		570216
(Address of principal executive offices)		(Zip Code)

+86-898-6681-1730 (China)

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		CPHI		NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 12, 2024, there were 17,162,771 shares of common stock, $0.001 par value per share, issued and outstanding.

CHINA PHARMA HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page

PART I FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28

Item 4.	Controls and Procedures	28

PART II OTHER INFORMATION		29

Item 6.	Exhibits	29

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CHINA PHARMA HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (Unaudited)	2

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)	3

Condensed Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2024 and 2023 (Unaudited)	4

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited)	5

Notes to Condensed Consolidated Financial Statements (Unaudited)	6

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,			December 31,
	2024			2023
ASSETS
Current Assets:
Cash and cash equivalents	$	739,337		$	1,423,838
Banker’s acceptances		15,435			65,915
Trade accounts receivable, less allowance for doubtful accounts of $13,706,077 and $13,786,074, respectively		254,850			504,448
Other receivables, less allowance for doubtful accounts of $27,929 and $27,017, respectively		28,660			157,944
Advances to suppliers		161			2,013
Inventories		2,818,925			3,732,517
Prepaid expenses		115,610			110,258
Total Current Assets		3,972,978			5,996,933

Property, plant and equipment, net		5,817,379			7,100,425
Right-of-use assets		77,259			116,610
Intangible assets, net		4,393,617			3,255,232
TOTAL ASSETS	$	14,261,233		$	16,469,200

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable	$	141,036		$	966,420
Accrued expenses		208,831			298,829
Other payables		1,606,991			2,282,692
Advances from customers		101,056			90,507
Borrowings from related parties		1,140,775			1,133,809
Lease liabilities		78,628			77,727
Current portion of lines of credit		1,024,303			1,030,680
Convertible, redeemable note payable, net of issue discount		410,415			940,000
Total Current Liabilities		4,712,035			6,820,664
Non-current Liabilities:
Lines of credit, net of current portion		1,403,154			1,411,891
Deferred tax liability		737,522			742,114
Lease liabilities		-			39,910
Total Liabilities		6,852,711			9,014,579
Commitments and Contingencies (Note 14)
Stockholders’ Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding		-			-
Common stock, $0.001 par value; 500,000,000 shares authorized; 17,162,771 shares and 10,625,788 shares issued and outstanding, respectively		17,162			10,625
Additional paid-in capital		37,690,719			35,282,256
Accumulated deficit		(41,684,336	)		(39,290,314	)
Accumulated other comprehensive income		11,384,977			11,452,054
Total Stockholders’ Equity		7,408,522			7,454,621
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	14,261,233		$	16,469,200

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Revenue	$	924,943		$	1,097,862		$	2,294,782		$	3,058,152
Cost of revenue		1,940,329			1,244,523			3,600,192			3,026,889
Gross (loss) profit		(1,015,386	)		(146,661	)		(1,305,410	)		31,263

Operating expenses:
Selling expenses		111,455			169,820			219,642			314,252
General and administrative expenses		91,870			112,033			580,326			530,032
Research and development expenses		164,334			23,747			195,785			46,755
Bad debt expense (reversal of allowance for doubtful accounts		8,476			4,047			6,410			(5,989	)
Total operating expenses		376,135			309,647			1,002,163			885,050

Loss from operations		(1,391,521	)		(456,308	)		(2,307,573	)		(853,787	)

Other income (expense):
Interest income		1,531			942			3,846			1,890
Interest expense		(48,140	)		(137,663	)		(90,295	)		(217,108	)
Net other expense		(46,609	)		(136,721	)		(86,449	)		(215,218	)

Loss before income taxes		(1,438,130	)		(593,029	)		(2,394,022	)		(1,069,005	)
Income tax expense		-			-			-			-
Net loss		(1,438,130	)		(593,029	)		(2,394,022	)		(1,069,005	)
Other comprehensive loss - foreign currency translation adjustment		(45,502	)		(523,687	)		(67,077	)		(318,365	)
Comprehensive loss	$	(1,483,632	)	$	(1,116,716	)	$	(2,461,099	)	$	(1,387,370	)
Loss per share:
Basic and diluted	$	(0.09	)	$	(0.35	)	$	(0.16	)	$	(0.65	)
Weighted average shares outstanding		16,124,241			1,689,985			14,727,410			1,653,076

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

										Accumulated
					Additional					Other			Total
	Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders’
	Shares		Amount		Capital		Deficit			Income			Equity
Balance, January 1, 2023		1,498,179	$	1,498	$	28,926,931	$	(36,211,496	)	$	11,573,065		$	4,289,998
Conversions of Note Payable to common stock		191,806		595		799,405		-			-			650,000
Net loss for the period		-		-		-		(475,976	)		-			(475,976	)
Foreign currency translation adjustment		-		-		-		-			205,322			205,322
Balance, March 31, 2023		1,689,985		1,690		29,576,739		(36,687,472	)		11,778,387			4,669,344
Conversions of Note Payable to common stock		594,941		595		799,405		-			-			800,000
Net loss for the period		-		-		-		(593,029	)		-			(593,029	)
Foreign currency translation adjustment		-		-		-		-			(45,502	)		(45,502	)
Balance, June 30, 2023	$	2,284,927	$	2,285	$	30,376,144	$	(36,280,501	)	$	11,254,700		$	4,352,628

										Accumulated
					Additional					Other			Total
	Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders’
	Shares		Amount		Capital		Deficit			Income			Equity
Balance, January 1, 2024		10,625,788	$	10,625	$	35,282,256	$	(39,290,314	)	$	11,452,054		$	7,454,621
Conversions of Note Payable to common stock		1,191,077		1,191		448,809		-			-			450,000
Issuance of common stock for intangible assets		3,000,000		3,000		1,362,000		-			-			1,365,000
Net loss for the period		-		-		-		(955,892	)		-			(955,892	)
Foreign currency translation adjustment		-		-		-		-			(21,575	)		(21,575	)
Balance, March 31, 2024		14,816,865		14,816		37,093,065		(40,246,206	)		11,430,479			8,292,154
Conversions of Note Payable to common stock		2,345,906		2,346		597,654		-			-			600,000
Net loss for the period		-		-		-		(1,438,130	)		-			(1,438,130	)
Foreign currency translation adjustment		-		-		-		-			(45,502	)		(45,502	)
Balance, June 30, 2024		17,162,771	$	17,162	$	37,690,719	$	(41,684,336	)	$	11,384,977		$	7,408,522

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended
	June 30,
	2024			2023
Cash Flows from Operating Activities:
Net loss	$	(2,394,022	)	$	(1,069,005	)
Depreciation and amortization		1,473,050			1,374,724
Bad debt expense (reversal of allowance for doubtful accounts)		6,410			(5,989	)
Inventory write off		411,431			24,259
Changes in assets and liabilities:
Trade accounts and other receivables		182,533			(344,449	)
Advances to suppliers		1,845			294,625
Inventories		719,121			(791,042	)
Trade accounts payable		(821,907	)		(238,684	)
Other payables and accrued expenses		(241,434	)		(425,153	)
Advances from customers		11,142			(458,999	)
Prepaid expenses		(6,053	)		(44,936	)
Net Cash Used in Operating Activities		(657,884	)		(1,684,649	)

Cash Flows from Investing Activity:
Purchases of property and equipment		(28,086	)		60,465
Net Cash (used in) provided by Investing Activity		(28,086	)		60,465

Cash Flows from Financing Activities:
Payments of line of credit		(492,761	)		-
Proceeds from lines of credit		492,761			505,114
Borrowings and interest from related party		13,708			14,057
Net Cash Provided By Financing Activities		13,708			519,171

Effect of Exchange Rate Changes on Cash		(12,239	)		(23,048	)
Net Decrease in Cash, Cash Equivalents and Restricted Cash		(684,501	)		(1,128,061	)
Cash and Cash Equivalents at Beginning of Period		1,423,838			2,029,971
Cash, Cash Equivalents and Restricted Cash at End of Period	$	739,337		$	901,910

Supplemental Cash Flow Information:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	43,217		$	39,681

Supplemental Noncash Investing and Financing Activities:
Accounts receivable collected with banker’s acceptances	$	187,111		$	421,458
Inventory purchased with banker’s acceptances		237,336			351,463
Conversions of Note Payable to common stock		1,050,000			800,000
Issuances of stock for intangible assets		1,365,000			-
Lease liabilities arising from obtaining right-of-use assets		-			158,926

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Operations – China Pharma Holdings, Inc., a Nevada corporation (“China Pharma”), owns 100% of Onny Investment Limited (“Onny”), a British Virgin Islands corporation, which owns 100% of Hainan Helpson Medical & Biotechnology Co., Ltd (“Helpson”), a company organized under the laws of the People’s Republic of China (the “PRC”). China Pharma Holdings, Inc. and its subsidiaries are referred to herein as the Company.

Onny acquired 100% of the ownership in Helpson on May 25, 2005, by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC on the same day. Helpson received its business license evidencing its Wholly Foreign Owned Enterprise (“WFOE”) status on June 21, 2005.

Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. All of its operations are conducted in the PRC, where its manufacturing facilities are located. Helpson manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy.

Liquidity and Going Concern

As of June 30, 2024, the Company had cash and cash equivalents of $0.7 million, an accumulated deficit of $41.7 million and the Company’s current liabilities exceeded current assets by $0.7 million. In addition, the Company had incurred net losses of $2.4 million and had negative cash flows from operating activities of $0.7 million for the six months ended June 30, 2024. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer had advanced an aggregate of $1,140,775 as of June 30, 2024 to provide working capital and enabled the Company to make the required payments related to its former construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing property, plant and equipment can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern.

Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.

Reverse Stock Split – Effective March 6, 2024, China Pharma implemented a 1-for -5 reverse stock split as more fully discussed in Note 13. All share and per share disclosures have been retroactively restated to reflect the impact of the reverse stock split.

Consolidation and Basis of Presentation – The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States dollars. The accompanying unaudited interim condensed consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation.

Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations.

In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated on consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. Such financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (“2023 Annual Report”).

Accounting Estimates – The methodology used to prepare the Company’s financial statements is in conformity with U.S. GAAP, which requires the management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Therefore, actual results could differ from those estimates.

The Company uses the same accounting policies in preparing its quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.

Loss Per Share – Basic loss per share is calculated by dividing loss available to common stockholders by the weighted-average number of shares of common stock outstanding, excluding unvested stock. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common shares, including unvested stock, had been issued and if the additional common shares were dilutive.

The potentially dilutive common shares related to the convertible, redeemable note payable of 2,003,001 and 2,155,964 at June 30, 2024 and December 31, 2023 as discussed in Note 9, respectively, and the option to purchase 13,300 shares of common stock at June 30, 2024 and December 31, 2023 are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company.

Recent Accounting Pronouncements

In December 2023, the FASB issued guidance to enhance transparency of income tax disclosures. On an annual basis, the new guidance requires a public entity to disclose: (1) specific categories in the rate reconciliation, (2) additional information for reconciling items that are equal to or greater than 5% of the amount computed by multiplying income (or loss) from continuing operations before income tax expense (or benefit) by the applicable statutory income tax rate, (3) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, with foreign taxes disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid, (4) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (5) income tax expense (or benefit) from continuing operations disaggregated between federal (national), state and foreign. The guidance is effective for fiscal year 2025 annual reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We do not expect the adoption of this accounting standard to have an impact on our Consolidated Financial Statements but will require certain additional disclosures.

From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

NOTE 2 – ACCOUNTS RECEIVABLE, NET

Accounts receivable, net, consist of the following:

	June 30,			December 31,
	2024			2023
Trade accounts receivable		13,960,927			14,290,522
Less: allowance for doubtful accounts		(13,706,077	)		(13,786,074	)
Trade accounts receivable, net	$	254,850		$	504,448

We recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts. To the extent that our current allowance for doubtful accounts is higher than that of the previous period, we recognize a bad debt expense for the difference during the current period, and when the current allowance is lower than that of the previous period, we recognize a bad debt credit for the difference. The allowance for doubtful account balances were $13.71 million and $13.79 million as of June 30, 2024 and December 31, 2023, respectively. The changes in the allowances for doubtful accounts during the three and six months ended June 30, 2024 and 2023 were as follows:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Balance, Beginning of Period		13,759,993			16,955,959			13,786,074			16,739,527
Bad debt expense (reversal of allowance for doubtful accounts)		8,476			4,047			6,410			(5,989	)
Foreign currency translation adjustment		(62,392	)		(834,751	)		(86,407	)		(608,283	)
Balance, End of Period		13,706,077			16,125,255			13,706,077			16,125,255

NOTE 3 – INVENTORIES

Inventories consisted of the following:

	June 30,		December 31,
	2024		2023
Raw materials		1,194,063		1,849,213
Work in process		87,308		413,597
Finished goods		1,537,554		1,469,707
Total Inventories	$	2,818,925	$	3,732,517

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	June 30,			December 31,
	2024			2023
Permit of land use	$	395,223		$	397,684
Building		9,177,692			9,234,836
Plant, machinery and equipment		27,029,997			27,170,123
Motor vehicle		301,818			303,697
Office equipment		386,334			388,740
Total		37,291,064			37,495,080
Less: accumulated depreciation		(31,473,685	)		(30,394,655	)
Property, plant and equipment, net	$	5,817,379		$	7,100,425

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Asset		Life – years
Permit of land use		40 – 70
Building		20 – 49
Plant, machinery and equipment		5 – 10
Motor vehicle		5 – 10
Office equipment		3-5

Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. Depreciation expense was $636,721 and $640,979 for the three months ended June 30, 2024 and 2023, respectively and $1,270,981 and $1,265,700 for the six months ended June 30, 2024, respectively.

NOTE 5 – INTANGIBLE ASSETS

Intangible assets represent the cost of medical formulas approved for production by the NMPA, the intellectual property acquired (“Bonier Agreement”) from Chengdu Bonier Medical Technology Development Co., Ltd. (“Bonier”), the Technology Transfer Agreement with Tao Liu, and the Technology Transfer Agreement with Lihua Li, both are discussed below. No costs were reclassified from advances to intangible assets during the six months ended June 30, 2024 and 2023, respectively.

Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. Amortization expense relating to intangible assets was $104,922 and $55,161 for the three months ended June 30, 2024 and $202,069 and $109,024 for the six months ended June 30, 2024 and 2023, respectively, which was included in the general and administrative expenses. Medical formulas typically do not have a residual value at the end of their amortization period.

On February 2, 2024, Helpson entered into a Technology Transfer Agreement (the “Lihua Li Agreement”) with Lihua Li (“Transferor Li”). Transferor Li owns an invention patent of a pharmaceutical composition for treatment of psoriasis (the “Li Invention Patent”). Pursuant to the Lihua Li Agreement, Transferor Li will transfer the ownership of the Li Invention Patent to Helpson. Transferor Li or his designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application.

The aggregate transfer price as contemplated by the Agreement is $1.365 million which was paid to the Transferor and his two designees upon the issuance of 3,000,000 shares of common stock of the Company at $0.455 per share based on the closing market price of the Company’s common stock as of the closing date. The Company recorded the amount as intangible assets on the accompanying balance sheet as of the closing date. The value of the intangible asset will be amortized over its remaining useful life of approximately 20 years. During the ten years after the product launches to the market, if and only if the product generates profit, Helpson shall pay 10% of the net profit of the sales in cash on an annual basis to Transferor Li.

On December 15, 2023, the Company entered into a Technology Transfer Agreement (the “Tao Liu Agreement”) with Tao Liu (“Transferor Liu”). Transferor Liu owns an invention patent of a drug combination for the treatment of chronic obstructive pulmonary disease (the “Liu Invention Patent”). Pursuant to the Tao Liu Agreement, Transferor Liu will transfer the ownership of the Liu Invention Patent to Helpson. Transferor Liu or his designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application and other technical services.

During the ten years after the product launches to the market, if and only if the product generates profit, Helpson shall pay 15% of the net profit of the sales in cash on an annual basis to Transferor Liu.

On November 28, 2022, the Company entered into a Technology Transfer Contract with Bonier. Bonier owns the know-how of a technical invention and creation of an ophthalmic oxygen enriched atomization therapeutic instrument, which has obtained a utility model patent (the “Utility Model Patent”) and applied for an invention patent (the “Bonier Invention Patent”) at the same time. Pursuant to the Bonier Agreement, Bonier will transfer the ownership of the Utility Model Patent of the technical invention and the Bonier Invention Patent application right of the invention to Helpson. Bonier or its designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application and other technical services, with a term of ten years.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

The Company will pay a service fee of 15% of the net profit of the corresponding product sales revenue, which will be paid in cash annually after it launches to the market, contingent on the successful authorization of the above mentioned Bonier Invention Patent.

There were no service fees or profit payments paid related to the above three agreements for the three and six months ended June 30, 2024 and 2023, respectively.

The Company evaluates each approved medical formula for impairment at the date of NMPA approval, when indications of impairment are present and also at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, which considers currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the fair value of the medical formula, which is determined by the estimated discounted future net cash flows. No impairment loss was recognized during the three and six months ended June 30, 2024 and 2023.

Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and two Invention Patents as follows:

	June 30,			December 31,
	2024			2023
NMPA approved medical formulas	$	4,736,859		$	4,766,353
Technology from Bonier		1,715,813			1,726,497
Invention Patents		3,002,782			1,653,028
		9,455,454			8,145,878
Accumulated amortization		(5,061,837	)		(4,890,646	)
Net carrying amount	$	4,393,617		$	3,255,232

NOTE 6 – OTHER PAYABLES

Other Payables consisted of the following:

	June 30,		December 31,
	2024		2023
Compensation payable to officer	$	1,251,506	$	1,243,506
Compensation and interest to related parties		20,000		12,000
Business taxes and other		335,485		1,027,186
Total Other Payables	$	1,606,991	$	2,282,692

NOTE 7 – RELATED PARTY TRANSACTIONS

The Company had previously received advances from its Chairperson Li. Total amounts owed were $1,140,775 and $1,133,809 and are recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively. On July 8, 2019 the Company entered into a loan agreement in exchange for cash of RMB 4,770,000 ($738,379) with its Chairperson Li. The loan bears interest at a rate of 4.35% and was payable within one year of the loan agreement. The due date of the loan agreement has been extended annually on identical terms, and is due July 9, 2024. Total interest expense related to the loan for the three months ended June 30, 2024 and 2023 was $6,852 and $6,945, respectively and $13,708 and $14,057 for the six months ended June 30, 2024 and 2023, respectively. Compensation payable to the Chairperson Li is included in “Other payables” in the accompanying condensed consolidated balance sheet totaling $1,251,506 and $1,243,506 as of June 30, 2024 and December 31, 2023, respectively.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

NOTE 8 – LINES OF CREDIT

On December 21, 2022 the Company entered into a new line of credit for an aggregate amount of RMB 7,300,000 (approximately $1.0 million) with interest payable monthly at a rate of 3.9% with Bank of Communications. The Company received an advance on the line of credit in the amount of RMB 3,800,000 (approximately $0.56 million) on December 30, 2022. On February 24, 2023 the Company received an advance on the line in the amount of RMB 3,500,000 (approximately $0.51 million). The Company has no further availability on this line of credit. The line of credit was paid in full on December 15, 2023, five days before the due date of December 20, 2023. On December 20, 2023, the Company received a new line of credit in the amount of RMB 3,800,000 and an interest rate of 3.9% and is due December 15, 2024. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit and pledged personal assets as collateral for the loan. Total interest expense under this facility for the three months ended June 30, 2024 and 2023 was $10,237 and $5,465, respectively and $19,302 and $10,568. On February 2, 2024 the Company repaid RMB 3,500,000 under this line of credit. On February 22, 2024 the Company entered into a new agreement on identical terms and received an advance on the line in the amount of RMB 3,500,000 which is due of February 20, 2025

On September 30, 2022 the Company received a line of credit for RMB 10,000,000 (approximately $1.54 million) with Bank of China. The loan bears interest at the rate of 3.45% and was due September 28, 2023. On September 22, 2023 the Company repaid this note in full. On September 25, 2023 the Company entered into a three-year revolving loan and received proceeds of RMB 10,000,000 (approximately $1.4 million). The interest rate for the loan is 3.35% for the first twelve months of the loan and adjusts based on the latest one-year loan market quotation rate less 10 basis points as published by the China National Interbank Funding Center on the working day prior to each twelve month anniversary of the loan. The loan is due on September 24, 2026. The loan is collateralized by the Company’s new production facility and the included production line equipment and machinery. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit. Total interest paid on this loan was $11,993 and $12,724 for the three months ended June 30, 2024 and 2023, respectively and $23,915 and $25,320 for the six months ended June 30, 2024 and 2023, respectively.

Principal payments required for the remaining terms of the loan facility and lines of credit as of June 30, 2024 are as follows:

Year	Lines of Credit
2025		1,024,303
2026		1,403,154
	$	2,427,457

Fair Value of Lines of Credit – Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of the lines of credit outstanding as of June 30, 2024 and December 31, 2023 approximated their fair values because the underlying instruments bear an interest rate that approximates current market rates.

NOTE 9 – CONVERTIBLE NOTE PAYABLE

On November 17, 2021, China Pharma entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note (the “Note”) to an institutional accredited investor Streeterville Capital, LLC (the “Investor”). The transaction contemplated under the Agreement was closed on November 19, 2021. The Note matured on February 17, 2023. On April 13, 2023 China Pharma entered into an Amendment (the “Amendment”) with the Investor which extended the maturity date of the Convertible Note Payable to May 19, 2024. As consideration for the extension, China Pharma agreed to an extension fee of $65,639, representing 2.0% of the balance of the Note and accrued interest on the date of the Amendment. The amount was satisfied by increasing the Note balance by the amount of the extension fee. The Company recorded this as additional interest expense during the second quarter of 2023. In addition, China Pharma decreased the price at which the Investor can convert the balance from 85% to 82% of the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, and assumed an additional obligation to redeem a portion of the outstanding balance of the Note monthly or be subject to additional penalty fees.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

On May 23, 2024, the Company entered into an Amendment No. 2 (the “Second Amendment”), to the Note by which the parties have agreed to extend the maturity date of the Note to August 19, 2025. In consideration of the extension, the Company has agreed to pay to the Investor an extension fee equal to two percent (2%) of the outstanding balance of the Note (“Extension Fee”) totaling $10,934, and lower the minimum monthly redemption amount from the outstanding balance of the Note that the Company is obligated to redeem from $150,000 to $37,182.33. The Second Amendment also includes customary representations and warranties by the Company. The Company recognized the Extension Fee as interest expense for the year ending December 31, 2024.

The Note was originally convertible into 70,000 shares of China Pharma’s common stock at a price of $75.00 per share through April 19, 2022. Thereafter, the Note was convertible into 35,000 shares at a price of $150.00 per share. As of June 30, 2024 the Note is convertible into 2,736 shares of common stock.

Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default.

Pursuant to the terms of the Agreement and the Note, the Company must obtain Investor’s consent for certain fundamental transactions such as consolidation, merger with or into another entity (excerpt for a reincorporation merger), disposition of substantial assets, change of control, reorganization or recapitalization. Any occurrence of a fundamental transaction without Investor’s prior written consent will be deemed an Event of Default.

Investor may redeem all or any part the outstanding balance of the Note, subject to $500,000 per calendar month, at any time after one hundred twenty-one (121) days from the Purchase Price Date, as defined in the Note, upon three trading days’ notice, in cash or converting into shares of China Pharma’s common stock, at a price equal to 82% multiplied by the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the Note. The Note provides for liquidated damages upon failure to comply with any of the terms or provisions of the Note. The Company may prepay the outstanding balance of the Note with the Investor’s consent. At inception, the Note was redeemable into 176,229 shares based on the lowest volume weighted average price of $29.79085 on the inception date of November 19, 2021. As of June 30, 2024, the Note was redeemable into 2,003,001 shares of common stock based on 82% of the lowest volume weighted average price of $0.2049 on that date.

Total interest expense for the three months ended June 30, 2024 and 2023 was $19,058 and $105,545, respectively, and $33,370 and $151,563 for the six months ended June 30, 2024 and 2023, respectively.

On January 11, 2024 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.3945, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 380,228 shares of common stock to the Investor on January 16, 2024.

On February 1, 2024 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.3725, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 402,685 shares of common stock to the Investor on February 5, 2024.

On February 16, 2024 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.3675, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 408,164 shares of common stock to the Investor on February 21, 2024.

On April 2, 2024 the Investor discussed in Note 9 delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2927, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 512,470 shares of common stock to the Investor on April 3, 2024.

On April 17, 2024 the Investor discussed in Note 9 delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2774, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 540,735 shares of common stock to the Investor on April 19, 2024.

On May 20, 2024 the Investor discussed in Note 9 delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2539, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 590,783 shares of common stock to the Investor on May 21, 2024.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

On June 17, 2024 the Investor discussed in Note 9 delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2137, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 701,918 shares of common stock to the Investor on June 17, 2024.

NOTE 10 – LEASES

The Company has leases for certain office and production facilities in the PRC which are classified as operating leases. The leases contain payment terms for fixed amounts. Options to extend are recognized as part of the lease liabilities and recognized as right of use assets when management estimates to renew the lease. There are no residual value guarantees, no variable lease payments, and no restrictions or covenants imposed by leases. The discount rate used in measuring the lease liabilities and right of use assets was determined by reviewing the Company’s incremental borrowing rate at the initial measurement date. For the three months ended June 30, 2024 and 2023, operating lease cost was $19,228 and $17,848, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $19,947 and $18,744, respectively. For the six months ended June 30, 2024 and 2023, operating lease cost was $38,629 and $37,635, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $40,074 and $39,525, respectively. As of June 30, 2024 and December 31, 2023, the Company reported right of use assets of $77,259 and $116,610, respectively and lease liabilities of $78,628 and $117,637, respectively. As of June 30, 2024, its operating leases had a weighted average remaining lease term of 1.0 years and a weighted average discount rate of 3.55%.

Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month period ended June 30:

2025	$	80,148
Total undiscounted cash flows		80,148
Less: Imputed interest		(1,520	)
		78,628
Less: Lease liabilities, current portion		(78,628	)
Lease liabilities, net of current portion	$	-

The Company has leases with terms less than one year for certain provincial sales offices that are not material.

NOTE 11 – INCOME TAXES

Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are included as a component of other expenses. Through December 31, 2023, the Company has not identified any uncertain tax positions that it has taken. U.S. income tax returns for the years ended December 31, 2019 through December 31, 2023 and the Chinese income tax return for the year ended December 31, 2023 are open for possible examination.

Under the current tax law in the PRC, the Company is and will be subject to the enterprise income tax rate of 25%.

There was no provision for income taxes for the three and six months ended June 30, 2024 and 2023, respectively due to continued net losses of the Company.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

As of June 30, 2024, Helpson had net operating loss carryforwards for PRC tax purposes of approximately $22.6 million which are available to offset any future taxable income through 2029. Approximately $2.7 million of these carryforwards will expire in December 2024. The Company also has net operating losses for United States federal income tax purposes of approximately $10.3 million of which $5.1 million is available to offset future taxable income, if any, through 2040, and $5.2 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year.

U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, management believes it is not likely for the Company to realize all benefits of the deferred tax assets as of June 30, 2024 and December 31, 2023. Therefore, the Company provided for a valuation allowance against its deferred tax assets of $21,992,061 and $21,531,017 as of June 30, 2024 and December 31, 2023, respectively.

The Company also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable.

NOTE 12 – FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; and Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The Company uses fair value to measure the value of the banker’s acceptance notes it holds at June 30, 2024 and December 31, 2023. The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets and liabilities recorded at fair value:

			Fair Value Measurements at
			Reporting Date Using
Description	June 30, 2024		Level 1		Level 2		Level 3
Banker’s acceptance notes	$	15,435	$	-	$	15,435	$	-
Total	$	15,435	$	-	$	15,435	$	-

			Fair Value Measurements at
			Reporting Date Using
Description	December 31, 2023		Level 1		Level 2		Level 3
Banker’s acceptance notes	$	65,915	$	-	$	65,915	$	-
Total	$	65,915	$	-	$	65,915	$	-

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

NOTE 13 – STOCKHOLDERS’ EQUITY

China Pharma is authorized to issue 500,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Board of China Pharma.

According to relevant PRC laws, companies registered in the PRC, including China Pharma’s PRC subsidiary, Helpson, are required to allocate at least 10% of their after tax income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach 50% of the company’s registered capital prior to their remittance of funds out of the PRC. Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends. The amount designated for general and statutory capital reserves is $8,145,000 at June 30, 2024 and December 31, 2023.

Effective March 6, 2024, the Company implemented a 1-for-5 reverse split of its common stock. The reverse stock split was approved by the Company’s Board of Directors through unanimous written consent and the Company’s stockholders at its Annual Meeting for the fiscal year ended on December 31, 2022, which was held on December 17, 2023. Upon the effectiveness of the reverse stock split, every 5 shares of the Company’s issued and outstanding common stock were automatically converted into one share of issued and outstanding common stock. No fractional shares were issued as a result of the reverse stock split. Instead, any fractional shares that resulted from the split were rounded up to the next whole number. The reverse stock split affects all stockholders uniformly and does not alter any stockholder’s percentage interest in the Company’s outstanding common stock, except for adjustments that may result from the treatment of fractional shares. All share and per share amounts have been retroactively restated for all periods presented in the accompanying unaudited condensed consolidated financial statements.

Effective March 6, 2023 China Pharma implemented a 1-for-10 reverse split of its common stock. The reverse stock split was approved by the Company’s Board of Directors through unanimous written consent and China Pharma’s stockholders at its Annual Meeting for the fiscal year ended on December 31, 2021, which was held on December 27, 2022. Upon the effectiveness of the reverse stock split, every 10 shares of China Pharma’s issued and outstanding common stock were automatically converted into one share of issued and outstanding common stock. No fractional shares were issued as a result of the reverse stock split. Instead, any fractional shares that resulted from the split were rounded up to the next whole number. The reverse stock split affects all stockholders uniformly and does not alter any stockholder’s percentage interest in China Pharma’s outstanding common stock, except for adjustments that may result from the treatment of fractional shares. All share and per share amounts have been retroactively restated for all periods presented in the accompanying unaudited condensed consolidated financial statements.

2024 Share Issuances

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

2010 Incentive Plan

On November 12, 2010, the Company’s Board adopted the Company’s 2010 Incentive Plan (the “Plan”), which was then approved by stockholders on December 22, 2010. On October 17, 2019, the Board of Directors approved the First Amendment to the 2010 Incentive Plan (the “Amendment”), pursuant to which the term of the 2010 Incentive Plan was extended to December 31, 2029. The Amendment was adopted by the stockholders on December 19, 2019. On October 25, 2021, the Board of Directors approved, and on December 27, 2021 our stockholders adopted the Amendment No.2 to the Plan to increase the number of shares of the Common Stock, that are reserved thereunder by 100,000 shares from 80,000 shares to 180,000 shares. On October 27, 2022 the Board of Directors approved and on December 27, 2022, the stockholders adopted the Amended and Restated Long Term 2010 Incentive Plan to increase the number of shares of common stock that are reserved thereunder by an additional 100,000 shares from 180,000 to 280,000. On December 17, 2023 the stockholders approved Amendment No. 1 to the Amended and Restated Long Term 2010 Incentive Plan to increase the number of shares from 280,000 to 580,000. The Plan gives the Company the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of the Company and/or its subsidiaries. The Plan currently allows for equity awards of up to 580,000 shares of common stock. Through June 30, 2024, there were 84,700 shares of stock and stock options granted and outstanding under the Plan. A total of 13,300 options were outstanding as of June 30, 2024 under the Plan. As such, there are 482,000 additional units available for issuance under the Plan.

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)

There were no issuances of securities from the Plan for the six months ended June 30, 2024 and as such, no compensation expense was recognized for the period.

As of June 30, 2024, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants.

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Current vulnerability due to certain concentrations

For the six months ended June 30, 2024, no customer accounted for greater than 10.0% of sales and two customers accounted for 63.6% and 13.7% of accounts receivable. Three suppliers accounted for 23.5%, 23.4% and 17.6% of raw material purchases, and three different products accounted for 35.2%, 22.7% and 10.2% of revenue.

For the six months ended June 30, 2023, no customer accounted for greater than 10.0% of sales and three customers accounted for 53.4%, 11.5% and 10.5% of accounts receivable. Two suppliers accounted for 19.5% and 18.0% of raw material purchases, and five different products accounted for 22.4%, 19.8%, 11.8%, 10.9% and 10.0% of revenue.

Nature of Operations

Economic environment - Substantially all of the Company’s operations are conducted in the PRC, and therefore the Company is subject to special considerations and significant risks not typically associated with companies operating in the United States of America. These risks include, among others, the political, economic and legal environments and fluctuations in the foreign currency exchange rate. The Company’s results from operations may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The unfavorable changes in global macroeconomic factors may also adversely affect the Company’s operations.

In addition, all of the Company’s revenue is denominated in the PRC’s currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government.

NOTE 15 – SUBSEQUENT EVENTS

The Company evaluated all events and transactions that occurred after June 30, 2024 up through the date the Company filed these unaudited condensed consolidated financial statements. No events require adjustment to or disclosure in the unaudited condensed consolidated financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The statements contained in this report with respect to our financial condition, results of operations and business that are not historical facts are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology, such as “anticipate,” “believe,” “expect,” “plan,” “intend,” “seek,” “estimate,” “project,” “could,” or the negative thereof or other variations thereon, or by discussions of strategy that involve risks and uncertainties. Management wishes to caution the readers that any such forward-looking statements contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors, including, but not limited to, economic, competitive, regulatory, technological, key employees, and general business factors affecting our operations, markets, growth, services, products, licenses and other factors, some of which are described in this report and some of which are discussed in our other filings with the Securities and Exchange Commission (the “SEC”). These forward-looking statements are only estimates or predictions. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of risks facing our company, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events.

These risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. All written and oral forward-looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given these uncertainties, we caution investors not to unduly rely on our forward-looking statements. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.

Business Overview & Recent Developments

China Pharma Holding Inc. (“China Pharma”) is not a Chinese operating company but a Nevada holding company. All of our operations are conducted in the PRC through Hainan Helpson Medical & Biotechnology Co., Ltd (“Helpson”), our wholly owned subsidiary incorporated under the laws of the People’s Republic of China (the “PRC”), where the manufacturing facilities are located. Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. It manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all of them have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy.

China’s consistency evaluation of generic drugs continues to proceed in 2024. Helpson has always taken the task of promoting the consistency evaluation as a top priority, and worked on them actively. However, for each drug’s consistency evaluation, due to the continuous dynamic changes of the detailed consistency evaluation policies, market trends, expected investments, and expected returns of investment (“ROI”), the whole industry, including Helpson, has been making slow progresses in terms of the consistency evaluation. One of the flagship products, Candesartan tablets, a hypertension product, has passed generic-drug-consistency-evaluation in early August 2023.

Helpson has taken a more cautious and flexible attitude towards initiating and progressing any project for existing products’ consistency evaluation to cope with the changing macro environment of drug sales in China. In 2018, relevant Chinese authorities decided to implement trial Centralized Procurement (“CP”) activities in 11 selected pilot cities (including 4 municipalities and 7 other cities), since then, nine rounds of CP activities have been carried out as of August 6, 2024, which significantly reduced the price of the drugs that won the bids. In addition, the consistency evaluation has been adopted as one of the qualification standards for participating in the CP activities. As a result, Helpson needs to balance between the market access brought by CP, the investment of financial resources and time to obtain the qualification of CP, and the sharp decline in the price of drugs included in CP before making decisions regarding CP for any products.

In addition, Helpson continues to explore the field of comprehensive healthcare. Comprehensive healthcare is a general concept proposed by the Chinese government according to the development of the times, social needs and changes in disease spectrum. According to the Outline of “Healthy China 2030” issued by Chinese government in October 2016, the total size of China’s health service industry is expected to reach RMB 16 trillion (approximately $2.5 trillion) by 2030. This industry focuses on people’s daily life, aging and diseases, pays attention to all kinds of risk factors and misunderstandings affecting health, calls for self-health management, and advocates the comprehensive care throughout the entire process of life. It covers all kinds of health-related information, products, and services, as well as actions taken by various organizations to meet the health needs. In response to this trend, Helpson launched Noni enzyme, a natural, Xeronine-rich antioxidant food supplement at the end of 2018. It also launched wash-free sanitizers and masks, in 2020, to address the market needs caused by COVID-19 in China. As Chinese government officially terminated its zero-case policy, now the responsibility to protect people from the impact of COVID-19 falls more to the citizens themselves, and masks and sanitizers have been popular since COVID-19. Helpson has sufficient production capacity for medical masks, surgical masks, KN95 masks, and N95 masks, which also meets the personal needs for protection against other respiratory infectious disease. Helpson’s N95 medical protective mask has received registration certificate at the end of 2022 and right now has been selling in the mainland China nationwide.

Helpson will continue to optimize its product structure and actively respond to the current health needs of human beings.

Results of Operations for the three months ended June 30, 2024

Revenue

Revenue decreased by 16.4% to $0.9 million for the three months ended June 30, 2024, as compared to $1.1 million for the three months ended June 30, 2023. This decline was mainly due to an increasing number of drugs from other medicine providers being included in national CP, while Helpson’s peer products have not passed consistency evaluation. As a result, they are not qualified to participate in CP, the resulting sales has decreased.

Set forth below are our revenues by product category in millions (USD) for the three months ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Net
Product Category	2024		2023		Change		% Change
CNS Cerebral & Cardio Vascular		0.37		0.35		0.02		6	%
Anti-Viral/ Infection & Respiratory		0.48		0.47		0.01		2	%
Digestive Diseases		0.04		0.17		-0.13		-76	%
Other		0.03		0.11		-0.08		-73	%

The most significant revenue decrease in terms of dollar amount was in our “Digestive” product category, which generated $0.04 million in sales revenue in the three months ended June 30, 2024 compared to $0.17 million for the same period a year ago, a decrease of $0.13 million. This decrease was mainly due to the decrease in sales of Omeprazole because of the implementation of CP.

Our “Other” product category sales decreased by $0.08 million to $0.03 million in the three months ended June 30, 2024 from $0.11 million for the same period in 2023, which was mainly due to the decrease in sales of Vitamin B6 for Injection that was caused by the implementation of CP.

Sales under “CNS Cerebral & Cardio Vascular” product category generated $0.37 million in sales revenue in the three months ended June 30, 2024 compared to $0.35 million for the same period a year ago, which is an increase of $0.02 million. This slight change in sales was caused by market volatility.

Our “Anti-Viral/ Infection & Respiratory” product category generated $0.48 million of sales in the three months ended June 30, 2024, compared to $0.47 million in the same period in 2023. This slight change in sales was caused by market volatility.

	Three Months Ended June 30,
Product Category	2024			2023
CNS Cerebral & Cardio Vascular		41	%		32	%
Anti-Viral/ Infection & Respiratory		52	%		43	%
Digestive Diseases		4	%		15	%
Other		3	%		10	%

For the three months ended June 30, 2024, revenue breakdown by product category showed certain changes to that of the same period in 2023. Sales of the “Anti-Viral/Infection & Respiratory” products category represented 52% and 43% of total sales in the three months ended June 30, 2024 and 2023, respectively. The “CNS Cerebral & Cardio Vascular” product category represented 41% and 32% of total revenue in the three months ended June 30, 2024 and 2023, respectively. The “Other” product category represented 3% and 10% of revenues in the three months ended June 30, 2024 and 2023, respectively. The “Digestive Diseases” product category represented 4% and 15% of total revenue in the three months ended June 30, 2024 and 2023, respectively.

Cost of Revenue

For the three months ended June 30, 2024, our cost of revenue was $1.9 million, or 209.8% of total revenue, while cost of revenue was $1.2 million, or 113.4% of total revenue, for the same period in 2023. The increase in cost in this quarter was mainly because the increase in idle equipment costs due to reduced production, as well as the increased inventory impairments.

Gross Loss and Gross Margin

Gross loss for the three months ended June 30, 2024 was $1.01 million, as compared to $0.15 million during the same period in 2023. For the three months ended June 30, 2024, we had a gross loss margin of 109.8% as compared to a gross loss margin of 13.4% during the same period in 2023. The increase in gross loss is triggered by the decrease in the revenue and increase in the cost of revenue as described above.

Selling Expenses

Our selling expenses for the three months ended June 30, 2024 and 2023 were $0.11 million and $0.17 million, respectively. Selling expenses accounted for 12.0% of the total revenue for the three months ended June 30, 2024, as compared to 15.5% during the same period in 2023. As a result of the adjustment of many policies of healthcare reformation, we had reduced the number of personnel and expenses to efficiently support our sales and the collection of accounts receivable.

General and Administrative Expenses

Our general and administrative expenses were $0.09 million and $0.11 million for the three months ended June 30, 2024 and 2023, respectively. It accounted for 9.9% and 10.2% of our total revenues in the three months ended June 30, 2024 and 2023, respectively.

Research and Development Expenses

Our research and development expenses for the three months ended June 30, 2024 and 2023 were $0.16 and $0.02 million, respectively. Research and development expenses accounted for 17.8% and 2.2% of our total revenues for the three months ended June 30, 2024 and 2023, respectively. The increase in research and development expenses were mainly due to our increased efforts in drug consistency evaluation.

Bad Debt Expenses

Our bad debt expense for the three months ended June 30, 2024 were $8,476, as compared to $4,047 for the same period in 2023.

In general, our normal customer credit or payment terms are 180 days. This has not changed in recent years. Such relatively long credit term is due to the peculiar environment affecting the Chinese pharmaceutical market, as deferred payments by state-owned hospitals to local drug distributors are common, and their deferred payments will indirectly delay the payments from our customers to us. Due to the timeliness requirements of the NMPA for logistics of drug sales, Helpson, like most other pharmaceutical companies in China, sells substantially all the drugs to local drug distributors, certified by GSP (Good Supply Practice), the standard of products supply, which is a standard protocol to control the quality of the products during circulation. These GSP certified distributors then sell the drugs to state-owned hospitals. The GSP certified distributors’ payments to us are usually delayed as they will pay us after they receive payment from the state-owned hospitals. Therefore, as most of our customers are GSP certified distributors, we adopt a unified policy for bad debt allowance reserves for GMP’s customers who are typically GSP certified distributors. As is typical in the Chinese pharmaceutical market, there are no written contracts between the Company and any of its GSP certified distributors requesting the distributors to pay the Company’s account receivable upon their receipt of funds from the distributors’ customers, or state-owned hospitals. Nevertheless, the Company’s customers typically process the payment of the account receivable to the Company upon their receipt of payment from their customers, i.e., the state-owned hospitals, as a matter of implied consensus or industry standard. In the event the length of collection term is deviated from any of the past pattern of any particular customer, the Company will adjust its credit term.

The amount of accounts receivable that was past due (or the amount of accounts receivable that was more than 180 days old) was $0.06 million and $0.02 million as of June 30, 2024 and December 31, 2023, respectively.

The following table illustrates our accounts receivable aging distribution in terms of percentage of total accounts receivable, respective gross accounts receivables as well as the allocated allowance for doubtful accounts as of June 30, 2024 and December 31, 2023:

	June 30,			December 31,
	2024			2023
1 - 180 Days		1.36	%		3.45	%
180 - 365 Days		0.50	%		0.06	%
365 - 720 Days		0.05	%		0.09	%
> 720 Days		98.09	%		96.40	%
Total		100.00	%		100.00	%

	Gross Accounts Receivable Amount				Allocated Allowance for Doubtful Accounts
	30-Jun-24		31-Dec-23		30-Jun-24		31-Dec-23
1-180 Days		189,315		495,366		-		-
180-365 Days		70,668		8,342		7,067		834
365-720 Days		6,443		13,826		4,510		9,678
Over 720 Days		13,694,500		13,845,897		13,694,500		13,845,897
Total		13,960,926		14,363,431		13,706,077		13,856,410

Our allowance for doubtful accounts as a percentage of accounts receivable was 98.2% and 96.5% as of June 30, 2024 and December 31, 2023, respectively.

We conduct analysis and review on accounts receivables for customers on a specific, per-customer basis in the fourth fiscal quarter of each fiscal year. For customers (i) whose business license has been cancelled or expired; (ii) whose key business certificates such as GSP (Good Supply Practice) license have been invalid or revoked; (iii) who have no ability to continue operations, or (iv) who are encountering other issues that lead to accounts receivable unrecoverable, the receivable will be written-off as per the resolution of our Board of Directors.

Our bad debt allowance estimate practice is that we consider accounts receivable balances aged within 180 days current, except for any individual uncollectible account assessed by management. We account for the following respective percentage as bad debt allowance based on age of the accounts receivables: 10% of accounts receivable that is between 180 days and 365 days old, 70% of accounts receivable that is between 365 days and 720 days old, and 100% of accounts receivable that is greater than 720 days old.

We recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts. To the extent that our current allowance for doubtful accounts is higher than that of the previous period, we recognize a bad debt expense for the difference during the current period, and when the current allowance is lower than that of the previous period, we recognize a bad debt credit for the difference. The allowance for doubtful account balances were $13.7 million and $13.8 million as of June 30, 2024 and December 31, 2023, respectively. The changes in the allowances for doubtful accounts during the three months ended June 30, 2024 and 2023 were as follows:

	For the Three Months Ended
	June 30,
	2024			2023
Balance, Beginning of Period	$	13,759,993		$	16,955,959
Bad debt expense		8,476			4,047
Foreign currency translation adjustment		(62,392	)		(834,751	)
Balance, End of Period	$	13,706,077		$	16,125,255

Loss from Operations

Our operating loss for the three months ended June 30, 2024 was $1.4 million, compared to an operating loss of $0.5 million during the same period in 2023. The increase in loss from operation is triggered by the decrease in the revenue and increase in the cost of revenue as described above.

Net Interest Expense

Net interest expense for the three months ended June 30, 2024 was $0.05 million, as compared to $0.14 million for the same period in 2023.

Net Loss

Net Loss for the three months ended June 30, 2024 was $1.4 million, as compared to a net loss of $0.6 million for the same period a year ago. The increase in net loss was mainly the result of increased cost in this period.

Loss per basic and diluted common share were $0.09 for the three months ended June 30, 2024 and $0.35 for the same period in 2023.

The number of basic and diluted weighted-average outstanding shares used to calculate loss per share were 16,124,241 and 1,689,985 for the three months ended June 30, 2024 and 2023.

Results of operations for the six months ended June 30, 2024

Revenue

Revenue decreased by 25.0% to $2.3 million for the six months ended June 30, 2024, as compared to $3.1 million for the six months ended June 30, 2023. This decline was mainly due to an increasing number of drugs from other medicine providers being included in national CP, while Helpson’s peer products have not passed consistency evaluation. As a result, they are not qualified to participate in CP, the resulting sales has decreased.

Set forth below are our revenues by product category in millions (USD) for the six months ended June 30, 2024 and 2023, respectively:

	Six Months Ended June 30,				Net
Product Category	2024		2023		Change		% Change
CNS Cerebral & Cardio Vascular		0.70		0.75		-0.05		-7	%
Anti-Viral/ Infection & Respiratory		1.40		1.47		-0.07		-5	%
Digestive Diseases		0.08		0.37		-0.29		-78	%
Other		0.11		0.47		-0.36		-77	%

The most significant revenue decrease in terms of dollar amount was our “Other” product category, which generated $0.11 million in sales revenue in the six months ended June 30, 2024 compared to $0.47 million in the same period a year ago, represented a decrease of $0.36 million that was mainly caused by the decrease in sales of Vitamin B6 for Injection as our such product is not yet eligible to participate in CP.

Sales of our “Digestive Diseases” was $0.08 million in sales revenue in the six months ended June 30, 2024, compared to $0.37 million in the same period a year ago, which represented a decrease of $0.29 million. This decrease was mainly due to sales decrease of Helpson’s Omeprazole products due to ineligibility to participate in CP.

Sales of “CNS Cerebral & Cardio Vascular” product category generated $0.70 million in sales revenue in the six months ended June 30, 2024, compared to $0.75 million in the same period a year ago, which represented a decrease of $0.05 million. This change was mainly due to market volatility.

Sales of our “Anti-Viral/ Infection & Respiratory” product category generated $1.40 million in the six months ended June 30, 2024, and $1.47 million in the six months ended June 30, 2023. This change was mainly due to market volatility.

	Six Months Ended June 30,
Product Category	2024			2023
CNS Cerebral & Cardio Vascular		30	%		25	%
Anti-Viral/ Infection & Respiratory		61	%		48	%
Digestive Diseases		4	%		12	%
Other		5	%		15	%

For the six months ended June 30, 2024, revenue breakdown by product category remained similar to that of the same period in 2023. The “Anti-Viral/Infection & Respiratory” products category represented 61% and 48% of total revenues in the six months ended June 30, 2024 and 2023. The “CNS Cerebral & Cardio Vascular” category represented 30% and 25% of total revenue in the six months ended June 30, 2024 and 2023, respectively. The “Others” category represented 5% and 15% of revenues in the six months ended June 30, 2024 and 2023, respectively. And the “Digestive Diseases” category represented 4% and 12% of total revenue in the six months ended June 30, 2024 and 2023, respectively.

Cost of Revenue

For the six months ended June 30, 2024, our cost of revenue was $3.6 million, or 156.9% of total revenue, comparing to $3.0 million, or 99.0% of total revenue, in the same period in 2023. The increase in the proportion of cost to revenue in this quarter was mainly due to the increase in idle equipment costs due to reduced production, as well as the increased inventory impairments.

Gross Profit (Loss) and Gross Margin

Gross loss for the six months ended June 30, 2024 was $1.31 million, compared to gross profit of $0.03 million in the same period in 2023. Our gross loss margin in the six months ended June 30, 2024 was 56.9% compared to a gross profit margin of 1.0% in the same period in 2023. The deterioration of gross margin in this period was mainly due to the increased cost.

Selling Expenses

Our selling expenses for the six months ended June 30, 2024 and 2023 were $0.22 million and $0.31 million, respectively. Selling expenses accounted for 9.6% of the total revenue in the six months ended June 30, 2024 compared to 10.3% in the same period in 2023.

General and Administrative Expenses

Our general and administrative expenses for the six months ended June 30, 2024 were $0.58 million, as compared to $0.53 million in the same period in 2023. Our general and administrative expenses accounted for 25.3% and 17.3% of our total revenues in the six months ended June 30, 2024 and 2023, respectively.

Research and Development Expenses

Our research and development expenses for the six months ended June 30, 2024 and 2023 were $0.20 million and $0.05 million, respectively. The increase in research and development costs is mainly due to drug consistency evaluation.

Bad Debt Expense (Reversal of Allowance for Doubtful Accounts)

Our bad debt expense was $6,410 for the six months ended June 30, 2024, as compared to reversal of allowance for doubtful accounts $5,989 for the six months ended June 30, 2023.

The changes in the allowances for doubtful accounts during the six months ended June 30, 2024 and 2023 were as follows:

	For the Six Months Ended
	June 30,
	2024			2023
Balance, Beginning of Period	$	13,786,074		$	16,739,527
Bad debt expense		6,410			(5,989	)
Foreign currency translation adjustment		(86,407	)		(608,283	)
Balance, End of Period	$	13,706,077		$	16,125,255

Loss from Operations

Our operating loss for the six months ended June 30, 2024 was $2.31 million, compared to $0.85 million in the same period in 2023. The increase in loss from operation is triggered by the decrease in the revenue and increase in the cost of revenue as described above.

Net Interest Expense

Net interest expense for the six months ended June 30, 2024 was $0.09 million, compared to $0.22 million for the same period in 2023.

Net Loss

Net loss for the six months ended June 30, 2024 was $2.40 million, as compared to net loss of $1.07 million for the six months ended June 30, 2023. The increase of net loss was mainly a result of increased cost and expenses in this period.

For the six months ended June 30, 2024, loss per basic and diluted common share was $0.16, compared to loss per basic and diluted common share of $0.65 for the six months ended June 30, 2023.

The number of basic and diluted weighted-average outstanding shares used to calculate loss per share was 14,727,410 for the six months ended June 30, 2024, and 1,653,076 for the six months ended June 30, 2023.

Liquidity and Capital Resources

Our principal source of liquidity is cash generated from operations and bank lines of credit. Currently the Company has not witnessed or expected to encounter any difficulties to refinance those lines of credit this year. As of June 30, 2024, the aggregated advance from our CEO was $1,140,775 for use in operations. Our cash and cash equivalents were $0.74 million, representing 5.2% of our total assets, as of June 30, 2024, as compared to $1.42 million, representing 8.6% of our total assets as of December 31, 2023. All of the $0.74 million of cash and cash equivalents as of June 30, 2024 are considered to be reinvested indefinitely in the Company’s Chinese subsidiary, Helpson and are not expected to be available for payment of dividends or for other payments to its parent company or to its shareholders.

The Company obtained various lines of credit in details described under Note 8 to its unaudited condensed consolidated financial statements contained in this report which is incorporated by reference herein.

China Pharma issued a convertible note to an institutional accredited investor as disclosed in Note 9 to the unaudited condensed consolidated financial statements contained in this report which is incorporated by reference herein.

Although the Company obtained additional lines of credit in three and six months ended June 30, 2023, there can be no assurance that the Company will be able to achieve its future strategic goals, including the launch of new products. This raises substantial doubt about the Company’s ability to continue as a going concern. Although our Chairperson and Chief Executive Officer had advanced funds for working capital in 2023, there can be no assurances that this will continue in the future. We may seek additional debt or equity financing as necessary when we believe the market conditions are the most advantageous to us and/or require us to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives. There can be no assurance that any additional financing will be available on acceptable terms, if at all.

Operating Activities

Net cash used by operating activities was $0.66 million for the six months ended June 30, 2024, compared to $1.68 million in the same period in 2023.

As of June 30, 2024, our net accounts receivable was $0.25 million, compared to $0.50 million as of December 31, 2023.

Total inventory was $2.82 million and $3.73 million as of June 30, 2024 and December 31, 2023, respectively.

Investing Activities

There was $28,086 used in investing activities during the six months ended June 30, 2024, compared to $60,465 provided by investing activities for the same period in 2023.

Financing Activities

Net cash provided by financing activities was $0.01 million in the six months ended June 30, 2024; compared to net cash used in financing activities of $0.52 million for the same period in 2023.

According to relevant PRC laws, companies registered in the PRC, including our PRC subsidiary, Helpson, are required to allocate at least ten percent (10%) of their after-tax net income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach fifty percent (50%) of the companies’ registered capital prior to their remittance of funds out of the PRC. Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends. As of June 30, 2024 and December 31, 2023, Helpson’s net assets totaled $(4,375,345) and $(2,289,000), respectively. Due to the restriction on dividend distribution to overseas shareholders, the amount of Helpson’s net assets that was designated for general and statutory capital reserves, and thus could not be transferred to our parent company as cash dividends, was 50% of Helpson’s registered capital, which was both $8,145,000 as of June 30, 2024 and December 31, 2023, respectively. The amount that Helpson must set aside for the statutory surplus fund accounts exceeds its total net assets at June 30, 2024 and December 31, 2023. There were no allocations to the statutory surplus reserve accounts during the six months ended June 30, 2024.

The Chinese government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of China. Our businesses and assets are primarily denominated in RMB. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires the submission of a payment application form together with certain invoices and executed contracts. The currency exchange control procedures imposed by Chinese government authorities may restrict Helpson, our Chinese subsidiary, from transferring its net assets to our parent company through loans, advances or cash dividends.

Off-Balance Sheet Arrangements

As of June 30, 2024, we did not have any off-balance sheet arrangements.

Critical Accounting Policies

Management’s discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. Please refer to Note 1 to our unaudited condensed consolidated financial statements, “Organization and Significant Accounting Policies” for the discussion of our critical accounting policies.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and interim Chief Financial Officer, evaluated the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 (the “Exchange Act”) Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered by this quarterly report. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act (a) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (b) is accumulated and communicated to management, including our Chief Executive Officer and interim Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as described above. Based on this evaluation, our Chief Executive Officer and interim Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2024 to satisfy the objectives for which they are intended. This was due to the material weakness in our internal control over financial reporting, with respect to our lack of accounting financial reporting personnel who were knowledgeable in U.S. GAAP, as disclosed in our annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on April 1, 2024. Notwithstanding the aforementioned material weakness, management has concluded that our condensed consolidated financial statements included in this report are fairly stated in all material respects in accordance with U.S. GAAP for each period presented herein.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

Item 6. Exhibits

The exhibits required by this item are set forth in the Exhibit Index attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHINA PHARMA HOLDINGS, INC.

Date: August 14, 2024	By:	/s/ Zhilin Li
		Name: Zhilin Li
		Title: President and Chief Executive Officer
		(principal executive officer)

Date: August 14 2024	By:	/s/ Zhilin Li
		Name: Zhilin Li
		Title: Interim Chief Financial Officer
		(principal financial officer and principal accounting officer)

EXHIBIT INDEX

No.		Description
10.1	-	Amendment #2 to Convertible Promissory Note dated May 23, 2024 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 30, 2024).

31.1	-	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	-	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	-	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	-	Inline XBRL Instance Document

101.SCH	-	Inline XBRL Taxonomy Extension Schema Document

101.CAL	-	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	-	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	-	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	-	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	-	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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Exhibit 31.1

CERTIFICATION OF

PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Zhilin Li, certify that:

1.	I have reviewed this report on Form 10-Q of China Pharma Holdings, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2024

/s/ Zhilin Li
Name:	Zhilin Li
Title:	Chief Executive Officer
	(principal executive officer)

Exhibit 31.2

CERTIFICATION OF

PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Zhilin Li, certify that:

1.	I have reviewed this report on Form 10-Q of China Pharma Holdings, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2024

/s/ Zhilin Li
Name:	Zhilin Li
Title:	Interim Chief Financial Officer
(principal financial officer and principal accounting officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in her capacity as Chief Executive Officer and interim Chief Financial Officer of China Pharma Holdings, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of her knowledge:

(1)	The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 14, 2024

/s/ Zhilin Li
Name:	Zhilin Li
President and Chief Executive Officer
(principal executive officer)

/s/ Zhilin Li
Name:	Zhilin Li
Title:	Interim Chief Financial Officer
(principal financial officer and
principal accounting officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2024	Aug. 12, 2024
Document Information Line Items
Entity Registrant Name	CHINA PHARMA HOLDINGS, INC.
Trading Symbol	CPHI
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,162,771
Amendment Flag	false
Entity Central Index Key	0001106644
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-34471
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	75-1564807
Entity Address, Address Line One	Second Floor, No. 17, Jinpan Road
Entity Address, Address Line Two	Haikou
Entity Address, City or Town	Hainan Province
Entity Address, Country	CN
Entity Address, Postal Zip Code	570216
City Area Code	+86
Local Phone Number	898-6681-1730
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 739,337	$ 1,423,838
Banker’s acceptances	15,435	65,915
Trade accounts receivable, less allowance for doubtful accounts of $13,706,077 and $13,786,074, respectively	254,850	504,448
Other receivables, less allowance for doubtful accounts of $27,929 and $27,017, respectively	28,660	157,944
Advances to suppliers	161	2,013
Inventories	2,818,925	3,732,517
Prepaid expenses	115,610	110,258
Total Current Assets	3,972,978	5,996,933
Property, plant and equipment, net	5,817,379	7,100,425
Right-of-use assets	77,259	116,610
Intangible assets, net	4,393,617	3,255,232
TOTAL ASSETS	14,261,233	16,469,200
Current Liabilities:
Trade accounts payable	141,036	966,420
Accrued expenses	208,831	298,829
Other payables	1,606,991	2,282,692
Advances from customers	101,056	90,507
Lease liabilities	78,628	77,727
Current portion of lines of credit	1,024,303	1,030,680
Convertible, redeemable note payable, net of issue discount	410,415	940,000
Total Current Liabilities	4,712,035	6,820,664
Non-current Liabilities:
Lines of credit, net of current portion	1,403,154	1,411,891
Deferred tax liability	737,522	742,114
Lease liabilities		39,910
Total Liabilities	6,852,711	9,014,579
Commitments and Contingencies (Note 14)
Stockholders’ Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value; 500,000,000 shares authorized; 17,162,771 shares and 10,625,788 shares issued and outstanding, respectively	17,162	10,625
Additional paid-in capital	37,690,719	35,282,256
Accumulated deficit	(41,684,336)	(39,290,314)
Accumulated other comprehensive income	11,384,977	11,452,054
Total Stockholders’ Equity	7,408,522	7,454,621
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	14,261,233	16,469,200
Related Party
Current Liabilities:
Borrowings from related parties	$ 1,140,775	$ 1,133,809

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Trade accounts receivable, less allowance for doubtful accounts (in Dollars)	$ 13,706,077	$ 13,786,074
Other receivables, allowance for doubtful accounts (in Dollars)	$ 27,929	$ 27,017
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	17,162,771	10,625,788
Common stock, shares outstanding	17,162,771	10,625,788

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 924,943	$ 1,097,862	$ 2,294,782	$ 3,058,152
Cost of revenue	1,940,329	1,244,523	3,600,192	3,026,889
Gross (loss) profit	(1,015,386)	(146,661)	(1,305,410)	31,263
Operating expenses:
Selling expenses	111,455	169,820	219,642	314,252
General and administrative expenses	91,870	112,033	580,326	530,032
Research and development expenses	164,334	23,747	195,785	46,755
Bad debt expense (reversal of allowance for doubtful accounts	8,476	4,047	6,410	(5,989)
Total operating expenses	376,135	309,647	1,002,163	885,050
Loss from operations	(1,391,521)	(456,308)	(2,307,573)	(853,787)
Other income (expense):
Interest income	1,531	942	3,846	1,890
Interest expense	(48,140)	(137,663)	(90,295)	(217,108)
Net other expense	(46,609)	(136,721)	(86,449)	(215,218)
Loss before income taxes	(1,438,130)	(593,029)	(2,394,022)	(1,069,005)
Income tax expense
Net loss	(1,438,130)	(593,029)	(2,394,022)	(1,069,005)
Other comprehensive loss - foreign currency translation adjustment	(45,502)	(523,687)	(67,077)	(318,365)
Comprehensive loss	$ (1,483,632)	$ (1,116,716)	$ (2,461,099)	$ (1,387,370)
Loss per share:
Basic (in Dollars per share)	$ (0.09)	$ (0.35)	$ (0.16)	$ (0.65)
Weighted average shares outstanding (in Shares)	16,124,241	1,689,985	14,727,410	1,653,076

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Diluted	$ (0.09)	$ (0.35)	$ (0.16)	$ (0.65)

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Balance at Dec. 31, 2022	$ 1,498	$ 28,926,931	$ (36,211,496)	$ 11,573,065	$ 4,289,998
Balance (in Shares) at Dec. 31, 2022	1,498,179
Conversions of Note Payable to common stock	$ 595	799,405			650,000
Conversions of Note Payable to common stock (in Shares)	191,806
Net loss for the period			(475,976)		(475,976)
Foreign currency translation adjustment				205,322	205,322
Balance at Mar. 31, 2023	$ 1,690	29,576,739	(36,687,472)	11,778,387	4,669,344
Balance (in Shares) at Mar. 31, 2023	1,689,985
Balance at Dec. 31, 2022	$ 1,498	28,926,931	(36,211,496)	11,573,065	4,289,998
Balance (in Shares) at Dec. 31, 2022	1,498,179
Net loss for the period					(1,069,005)
Balance at Jun. 30, 2023	$ 2,285	30,376,144	(36,280,501)	11,254,700	4,352,628
Balance (in Shares) at Jun. 30, 2023	2,284,927
Balance at Mar. 31, 2023	$ 1,690	29,576,739	(36,687,472)	11,778,387	4,669,344
Balance (in Shares) at Mar. 31, 2023	1,689,985
Conversions of Note Payable to common stock	$ 595	799,405			800,000
Conversions of Note Payable to common stock (in Shares)	594,941
Net loss for the period			(593,029)		(593,029)
Foreign currency translation adjustment				(45,502)	(45,502)
Balance at Jun. 30, 2023	$ 2,285	30,376,144	(36,280,501)	11,254,700	4,352,628
Balance (in Shares) at Jun. 30, 2023	2,284,927
Balance at Dec. 31, 2023	$ 10,625	35,282,256	(39,290,314)	11,452,054	7,454,621
Balance (in Shares) at Dec. 31, 2023	10,625,788
Conversions of Note Payable to common stock	$ 1,191	448,809			450,000
Conversions of Note Payable to common stock (in Shares)	1,191,077
Issuance of common stock for intangible assets	$ 3,000	1,362,000			1,365,000
Issuance of common stock for intangible assets (in Shares)	3,000,000
Net loss for the period			(955,892)		(955,892)
Foreign currency translation adjustment				(21,575)	(21,575)
Balance at Mar. 31, 2024	$ 14,816	37,093,065	(40,246,206)	11,430,479	8,292,154
Balance (in Shares) at Mar. 31, 2024	14,816,865
Balance at Dec. 31, 2023	$ 10,625	35,282,256	(39,290,314)	11,452,054	7,454,621
Balance (in Shares) at Dec. 31, 2023	10,625,788
Net loss for the period					(2,394,022)
Balance at Jun. 30, 2024	$ 17,162	37,690,719	(41,684,336)	11,384,977	7,408,522
Balance (in Shares) at Jun. 30, 2024	17,162,771
Balance at Mar. 31, 2024	$ 14,816	37,093,065	(40,246,206)	11,430,479	8,292,154
Balance (in Shares) at Mar. 31, 2024	14,816,865
Conversions of Note Payable to common stock	$ 2,346	597,654			600,000
Conversions of Note Payable to common stock (in Shares)	2,345,906
Net loss for the period			(1,438,130)		(1,438,130)
Foreign currency translation adjustment				(45,502)	(45,502)
Balance at Jun. 30, 2024	$ 17,162	$ 37,690,719	$ (41,684,336)	$ 11,384,977	$ 7,408,522
Balance (in Shares) at Jun. 30, 2024	17,162,771

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities:
Net loss	$ (2,394,022)	$ (1,069,005)
Depreciation and amortization	1,473,050	1,374,724
Bad debt expense (reversal of allowance for doubtful accounts)	6,410	(5,989)
Inventory write off	411,431	24,259
Changes in assets and liabilities:
Trade accounts and other receivables	182,533	(344,449)
Advances to suppliers	1,845	294,625
Inventories	719,121	(791,042)
Trade accounts payable	(821,907)	(238,684)
Other payables and accrued expenses	(241,434)	(425,153)
Advances from customers	11,142	(458,999)
Prepaid expenses	(6,053)	(44,936)
Net Cash Used in Operating Activities	(657,884)	(1,684,649)
Cash Flows from Investing Activity:
Purchases of property and equipment	(28,086)	60,465
Net Cash (used in) provided by Investing Activity	(28,086)	60,465
Cash Flows from Financing Activities:
Payments of line of credit	(492,761)
Proceeds from lines of credit	492,761	505,114
Borrowings and interest from related party	13,708	14,057
Net Cash Provided By Financing Activities	13,708	519,171
Effect of Exchange Rate Changes on Cash	(12,239)	(23,048)
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(684,501)	(1,128,061)
Cash and Cash Equivalents at Beginning of Period	1,423,838	2,029,971
Cash, Cash Equivalents and Restricted Cash at End of Period	739,337	901,910
Supplemental Cash Flow Information:
Cash paid for income taxes
Cash paid for interest	43,217	39,681
Supplemental Noncash Investing and Financing Activities:
Accounts receivable collected with banker’s acceptances	187,111	421,458
Inventory purchased with banker’s acceptances	237,336	351,463
Conversions of Note Payable to common stock	1,050,000	800,000
Issuances of stock for intangible assets	1,365,000
Lease liabilities arising from obtaining right-of-use assets		$ 158,926

Organization and Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Organization and Significant Accounting Policies [Abstract]

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Liquidity and Going Concern

Recent Accounting Pronouncements

Accounts Receivable, Net

6 Months Ended

Jun. 30, 2024

Accounts Receivable, Net [Abstract]

ACCOUNTS RECEIVABLE, NET

NOTE 2 – ACCOUNTS RECEIVABLE, NET

Accounts receivable, net, consist of the following:

	June 30,			December 31,
	2024			2023
Trade accounts receivable		13,960,927			14,290,522
Less: allowance for doubtful accounts		(13,706,077	)		(13,786,074	)
Trade accounts receivable, net	$	254,850		$	504,448

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Balance, Beginning of Period		13,759,993			16,955,959			13,786,074			16,739,527
Bad debt expense (reversal of allowance for doubtful accounts)		8,476			4,047			6,410			(5,989	)
Foreign currency translation adjustment		(62,392	)		(834,751	)		(86,407	)		(608,283	)
Balance, End of Period		13,706,077			16,125,255			13,706,077			16,125,255

Inventories

6 Months Ended

Jun. 30, 2024

Inventories [Abstract]

INVENTORIES

NOTE 3 – INVENTORIES

Inventories consisted of the following:

	June 30,		December 31,
	2024		2023
Raw materials		1,194,063		1,849,213
Work in process		87,308		413,597
Finished goods		1,537,554		1,469,707
Total Inventories	$	2,818,925	$	3,732,517

Property, Plant and Equipment

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	June 30,			December 31,
	2024			2023
Permit of land use	$	395,223		$	397,684
Building		9,177,692			9,234,836
Plant, machinery and equipment		27,029,997			27,170,123
Motor vehicle		301,818			303,697
Office equipment		386,334			388,740
Total		37,291,064			37,495,080
Less: accumulated depreciation		(31,473,685	)		(30,394,655	)
Property, plant and equipment, net	$	5,817,379		$	7,100,425

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Asset		Life – years
Permit of land use		40 – 70
Building		20 – 49
Plant, machinery and equipment		5 – 10
Motor vehicle		5 – 10
Office equipment		3-5

Intangible Assets

6 Months Ended

Jun. 30, 2024

Intangible Assets [Abstract]

INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

There were no service fees or profit payments paid related to the above three agreements for the three and six months ended June 30, 2024 and 2023, respectively.

Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and two Invention Patents as follows:

	June 30,			December 31,
	2024			2023
NMPA approved medical formulas	$	4,736,859		$	4,766,353
Technology from Bonier		1,715,813			1,726,497
Invention Patents		3,002,782			1,653,028
		9,455,454			8,145,878
Accumulated amortization		(5,061,837	)		(4,890,646	)
Net carrying amount	$	4,393,617		$	3,255,232

Other Payables

6 Months Ended

Jun. 30, 2024

Other Payables [Abstract]

OTHER PAYABLES

NOTE 6 – OTHER PAYABLES

Other Payables consisted of the following:

	June 30,		December 31,
	2024		2023
Compensation payable to officer	$	1,251,506	$	1,243,506
Compensation and interest to related parties		20,000		12,000
Business taxes and other		335,485		1,027,186
Total Other Payables	$	1,606,991	$	2,282,692

Related Party Transactions

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

NOTE 7 – RELATED PARTY TRANSACTIONS

Lines of Credit

6 Months Ended

Jun. 30, 2024

Lines of Credit [Abstract]

LINES OF CREDIT

NOTE 8 – LINES OF CREDIT

Principal payments required for the remaining terms of the loan facility and lines of credit as of June 30, 2024 are as follows:

Year	Lines of Credit
2025		1,024,303
2026		1,403,154
	$	2,427,457

Convertible Note Payable

6 Months Ended

Jun. 30, 2024

Convertible Note Payable [Abstract]

CONVERTIBLE NOTE PAYABLE

NOTE 9 – CONVERTIBLE NOTE PAYABLE

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

LEASES

NOTE 10 – LEASES

Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month period ended June 30:

2025	$	80,148
Total undiscounted cash flows		80,148
Less: Imputed interest		(1,520	)
		78,628
Less: Lease liabilities, current portion		(78,628	)
Lease liabilities, net of current portion	$	-

The Company has leases with terms less than one year for certain provincial sales offices that are not material.

Income Taxes

6 Months Ended

Jun. 30, 2024

Income Taxes [Abstract]

INCOME TAXES

NOTE 11 – INCOME TAXES

Under the current tax law in the PRC, the Company is and will be subject to the enterprise income tax rate of 25%.

There was no provision for income taxes for the three and six months ended June 30, 2024 and 2023, respectively due to continued net losses of the Company.

Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 12 – FAIR VALUE MEASUREMENTS

			Fair Value Measurements at
			Reporting Date Using
Description	June 30, 2024		Level 1		Level 2		Level 3
Banker’s acceptance notes	$	15,435	$	-	$	15,435	$	-
Total	$	15,435	$	-	$	15,435	$	-

			Fair Value Measurements at
			Reporting Date Using
Description	December 31, 2023		Level 1		Level 2		Level 3
Banker’s acceptance notes	$	65,915	$	-	$	65,915	$	-
Total	$	65,915	$	-	$	65,915	$	-

Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Stockholders Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 13 – STOCKHOLDERS’ EQUITY

2024 Share Issuances

2010 Incentive Plan

There were no issuances of securities from the Plan for the six months ended June 30, 2024 and as such, no compensation expense was recognized for the period.

As of June 30, 2024, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments And Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Current vulnerability due to certain concentrations

Nature of Operations

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 15 – SUBSEQUENT EVENTS

Accounting Policies, by Policy (Policies)	6 Months Ended
Accounting Policies, by Policy (Policies)	Jun. 30, 2024
Organization and Significant Accounting Policies [Abstract]
Organization and Nature of Operations	*Organization and Nature of Operations –* China Pharma Holdings, Inc., a Nevada corporation (“China Pharma”), owns 100% of Onny Investment Limited (“Onny”), a British Virgin Islands corporation, which owns 100% of Hainan Helpson Medical & Biotechnology Co., Ltd (“Helpson”), a company organized under the laws of the People’s Republic of China (the “PRC”). China Pharma Holdings, Inc. and its subsidiaries are referred to herein as the Company. Onny acquired 100% of the ownership in Helpson on May 25, 2005, by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC on the same day. Helpson received its business license evidencing its Wholly Foreign Owned Enterprise (“WFOE”) status on June 21, 2005. Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. All of its operations are conducted in the PRC, where its manufacturing facilities are located. Helpson manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy.
Liquidity and Going Concern	*Liquidity and Going Concern* As of June 30, 2024, the Company had cash and cash equivalents of $0.7 million, an accumulated deficit of $41.7 million and the Company’s current liabilities exceeded current assets by $0.7 million. In addition, the Company had incurred net losses of $2.4 million and had negative cash flows from operating activities of $0.7 million for the six months ended June 30, 2024. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer had advanced an aggregate of $1,140,775 as of June 30, 2024 to provide working capital and enabled the Company to make the required payments related to its former construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing property, plant and equipment can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern. Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.
Reverse Stock Split	*Reverse Stock Split* – Effective March 6, 2024, China Pharma implemented a 1-for -5 reverse stock split as more fully discussed in Note 13. All share and per share disclosures have been retroactively restated to reflect the impact of the reverse stock split.
Consolidation and Basis of Presentation	*Consolidation and Basis of Presentation* – The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States dollars. The accompanying unaudited interim condensed consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated on consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. Such financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024 (“2023 Annual Report”).
Accounting Estimates	Accounting Estimates – The methodology used to prepare the Company’s financial statements is in conformity with U.S. GAAP, which requires the management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Therefore, actual results could differ from those estimates. The Company uses the same accounting policies in preparing its quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.
Loss Per Share	Loss Per Share – Basic loss per share is calculated by dividing loss available to common stockholders by the weighted-average number of shares of common stock outstanding, excluding unvested stock. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common shares, including unvested stock, had been issued and if the additional common shares were dilutive. The potentially dilutive common shares related to the convertible, redeemable note payable of 2,003,001 and 2,155,964 at June 30, 2024 and December 31, 2023 as discussed in Note 9, respectively, and the option to purchase 13,300 shares of common stock at June 30, 2024 and December 31, 2023 are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company.
Recent Accounting Pronouncements	*Recent Accounting Pronouncements* In December 2023, the FASB issued guidance to enhance transparency of income tax disclosures. On an annual basis, the new guidance requires a public entity to disclose: (1) specific categories in the rate reconciliation, (2) additional information for reconciling items that are equal to or greater than 5% of the amount computed by multiplying income (or loss) from continuing operations before income tax expense (or benefit) by the applicable statutory income tax rate, (3) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, with foreign taxes disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid, (4) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (5) income tax expense (or benefit) from continuing operations disaggregated between federal (national), state and foreign. The guidance is effective for fiscal year 2025 annual reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We do not expect the adoption of this accounting standard to have an impact on our Consolidated Financial Statements but will require certain additional disclosures. From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption.

Accounts Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2024

Accounts Receivable, Net [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable, net, consist of the following:

	June 30,			December 31,
	2024			2023
Trade accounts receivable		13,960,927			14,290,522
Less: allowance for doubtful accounts		(13,706,077	)		(13,786,074	)
Trade accounts receivable, net	$	254,850		$	504,448

Schedule of Changes in the Allowances for Doubtful Accounts

The changes in the allowances for doubtful accounts during the three and six months ended June 30, 2024 and 2023 were as follows:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Balance, Beginning of Period		13,759,993			16,955,959			13,786,074			16,739,527
Bad debt expense (reversal of allowance for doubtful accounts)		8,476			4,047			6,410			(5,989	)
Foreign currency translation adjustment		(62,392	)		(834,751	)		(86,407	)		(608,283	)
Balance, End of Period		13,706,077			16,125,255			13,706,077			16,125,255

Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventories [Abstract]

Schedule of Inventories

Inventories consisted of the following:

	June 30,		December 31,
	2024		2023
Raw materials		1,194,063		1,849,213
Work in process		87,308		413,597
Finished goods		1,537,554		1,469,707
Total Inventories	$	2,818,925	$	3,732,517

Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consisted of the following:

	June 30,			December 31,
	2024			2023
Permit of land use	$	395,223		$	397,684
Building		9,177,692			9,234,836
Plant, machinery and equipment		27,029,997			27,170,123
Motor vehicle		301,818			303,697
Office equipment		386,334			388,740
Total		37,291,064			37,495,080
Less: accumulated depreciation		(31,473,685	)		(30,394,655	)
Property, plant and equipment, net	$	5,817,379		$	7,100,425

Schedule of Estimated Useful Lives of the Assets

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Asset		Life – years
Permit of land use		40 – 70
Building		20 – 49
Plant, machinery and equipment		5 – 10
Motor vehicle		5 – 10
Office equipment		3-5

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Intangible Assets [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and two Invention Patents as follows:

	June 30,			December 31,
	2024			2023
NMPA approved medical formulas	$	4,736,859		$	4,766,353
Technology from Bonier		1,715,813			1,726,497
Invention Patents		3,002,782			1,653,028
		9,455,454			8,145,878
Accumulated amortization		(5,061,837	)		(4,890,646	)
Net carrying amount	$	4,393,617		$	3,255,232

Other Payables (Tables)

6 Months Ended

Jun. 30, 2024

Other Payables [Abstract]

Schedule of Other Payables

Other Payables consisted of the following:

	June 30,		December 31,
	2024		2023
Compensation payable to officer	$	1,251,506	$	1,243,506
Compensation and interest to related parties		20,000		12,000
Business taxes and other		335,485		1,027,186
Total Other Payables	$	1,606,991	$	2,282,692

Lines of Credit (Tables)

6 Months Ended

Jun. 30, 2024

Lines of Credit [Abstract]

Schedule of Principal Payments

Principal payments required for the remaining terms of the loan facility and lines of credit as of June 30, 2024 are as follows:

Year	Lines of Credit
2025		1,024,303
2026		1,403,154
	$	2,427,457

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Operating Lease Liabilities

Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month period ended June 30:

2025	$	80,148
Total undiscounted cash flows		80,148
Less: Imputed interest		(1,520	)
		78,628
Less: Lease liabilities, current portion		(78,628	)
Lease liabilities, net of current portion	$	-

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Measurements [Abstract]

Schedule of Assets and Liabilities Recorded at Fair Value

			Fair Value Measurements at
			Reporting Date Using
Description	June 30, 2024		Level 1		Level 2		Level 3
Banker’s acceptance notes	$	15,435	$	-	$	15,435	$	-
Total	$	15,435	$	-	$	15,435	$	-

			Fair Value Measurements at
			Reporting Date Using
Description	December 31, 2023		Level 1		Level 2		Level 3
Banker’s acceptance notes	$	65,915	$	-	$	65,915	$	-
Total	$	65,915	$	-	$	65,915	$	-

Organization and Significant Accounting Policies (Details) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	May 25, 2005
Organization and Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 700,000				$ 700,000
Accumulated deficit	(41,700,000)				(41,700,000)
Working capital deficit	700,000				700,000
Net losses	(1,438,130)	$ (955,892)	$ (593,029)	$ (475,976)	(2,394,022)	$ (1,069,005)
Cash flows from operating activities					$ (657,884)	$ (1,684,649)
Reverse stock split					1-for -5 reverse stock
Chief Executive Officer and Interim Chief Financial Officer [Member]
Organization and Significant Accounting Policies [Line Items]
Borrowing from related party	$ 1,140,775				$ 1,140,775		$ 1,133,809
Onny Investment Limited [Member]
Organization and Significant Accounting Policies [Line Items]
Ownership percentage	100.00%				100.00%
Hainan Helpson Medical & Biotechnology Co., Ltd [Member]
Organization and Significant Accounting Policies [Line Items]
Ownership percentage	100.00%				100.00%			100.00%
Convertible, Redeemable Note Payable [Member]
Organization and Significant Accounting Policies [Line Items]
Potentially dilutive common shares (in Shares)					2,003,001		2,155,964
Options [Member]
Organization and Significant Accounting Policies [Line Items]
Potentially dilutive common shares (in Shares)					13,300		13,300

Accounts Receivable, Net (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Accounts Receivable, Net [Abstract]
Allowance for doubtful account	$ 13,706,077	$ 13,786,074

Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Accounts Receivable, Net [Abstract]
Trade accounts receivable	$ 13,960,927	$ 14,290,522
Less: allowance for doubtful accounts	(13,706,077)	(13,786,074)
Trade accounts receivable, net	$ 254,850	$ 504,448

Accounts Receivable, Net (Details) - Schedule of Changes in the Allowances for Doubtful Accounts - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule of Changes in the Allowances for Doubtful Accounts [Abstract]
Balance, Beginning of Period	$ 13,759,993	$ 16,955,959	$ 13,786,074	$ 16,739,527
Bad debt expense (reversal of allowance for doubtful accounts)	8,476	4,047	6,410	(5,989)
Foreign currency translation adjustment	(62,392)	(834,751)	(86,407)	(608,283)
Balance, End of Period	$ 13,706,077	$ 16,125,255	$ 13,706,077	$ 16,125,255

Inventories (Details) - Schedule of Inventories - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Inventories [Abstract]
Raw materials	$ 1,194,063	$ 1,849,213
Work in process	87,308	413,597
Finished goods	1,537,554	1,469,707
Total Inventories	$ 2,818,925	$ 3,732,517

Property, Plant and Equipment (Details) - USD ($)	3 Months Ended		6 Months Ended
Property, Plant and Equipment (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 636,721	$ 640,979	$ 1,270,981	$ 1,265,700

Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Property, Plant and Equipment [Line Items]
Total	$ 37,291,064	$ 37,495,080
Less: accumulated depreciation	(31,473,685)	(30,394,655)
Property, plant and equipment, net	5,817,379	7,100,425
Permit of land use [Member]
Schedule of Property, Plant and Equipment [Line Items]
Total	395,223	397,684
Building [Member]
Schedule of Property, Plant and Equipment [Line Items]
Total	9,177,692	9,234,836
Plant, machinery and equipment [Member]
Schedule of Property, Plant and Equipment [Line Items]
Total	27,029,997	27,170,123
Motor vehicles [Member]
Schedule of Property, Plant and Equipment [Line Items]
Total	301,818	303,697
Office equipment [Member]
Schedule of Property, Plant and Equipment [Line Items]
Total	$ 386,334	$ 388,740

Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of the Assets	Jun. 30, 2024
Minimum [Member] \| Permit of land use [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	40 years
Minimum [Member] \| Building [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	20 years
Minimum [Member] \| Plant, machinery and equipment [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	5 years
Minimum [Member] \| Motor vehicle [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	5 years
Minimum [Member] \| Office equipment [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	3 years
Maximum [Member] \| Permit of land use [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	70 years
Maximum [Member] \| Building [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	49 years
Maximum [Member] \| Plant, machinery and equipment [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	10 years
Maximum [Member] \| Motor vehicle [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	10 years
Maximum [Member] \| Office equipment [Member]
Schedule of Estimated Useful Lives of the Assets [Line Items]
Estimated useful lives	5 years

Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
Intangible Assets (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Intangible Assets [Line Items]
Amortization intangible by useful life, descriptions			Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years.
Amortization expense relating to intangible assets	$ 104,922	$ 55,161	$ 202,069	$ 109,024
Transfer price			$ 1,365,000
Issuance of common stock (in Shares)			3,000,000
Price per share (in Dollars per share)	$ 0.455		$ 0.455
Intangible asset useful life term	20 years		20 years
Net profit sales rate	10.00%		10.00%
Percentage of net profit			15.00%
Helpson [Member]
Intangible Assets [Line Items]
Percentage of net profit			15.00%

Intangible Assets (Details) - Schedule of Intangible Assets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Intangible Assets [Line Items]
Gross carrying amount	$ 9,455,454	$ 8,145,878
Accumulated amortization	(5,061,837)	(4,890,646)
Net carrying amount	4,393,617	3,255,232
NMPA approved medical formulas [Member]
Schedule of Intangible Assets [Line Items]
Gross carrying amount	4,736,859	4,766,353
Technology from Bonier [Member]
Schedule of Intangible Assets [Line Items]
Gross carrying amount	1,715,813	1,726,497
Invention Patents [Member]
Schedule of Intangible Assets [Line Items]
Gross carrying amount	$ 3,002,782	$ 1,653,028

Other Payables (Details) - Schedule of Other Payables - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Other Payables [Abstract]
Compensation payable to officer	$ 1,251,506	$ 1,243,506
Compensation and interest to related parties	20,000	12,000
Business taxes and other	335,485	1,027,186
Total Other Payables	$ 1,606,991	$ 2,282,692

Related Party Transactions (Details)			3 Months Ended		6 Months Ended
Related Party Transactions (Details)	Jul. 08, 2019 USD ($)	Jul. 08, 2019 CNY (¥)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Related Party Transactions [Line Items]
Loan payment	$ 738,379	¥ 4,770,000
Term of loan agreement			1 year		1 year
Interest expense			$ 6,852	$ 6,945	$ 13,708	$ 14,057
Chairperson [Member]
Related Party Transactions [Line Items]
Borrowings from related parties			1,140,775		1,140,775		$ 1,133,809
Other payables			$ 1,251,506		$ 1,251,506		$ 1,243,506
Loan Payable [Member]
Related Party Transactions [Line Items]
Interest rate	4.35%	4.35%

Lines of Credit (Details)												3 Months Ended		6 Months Ended
Lines of Credit (Details)	Feb. 22, 2024 USD ($)	Feb. 02, 2024 CNY (¥)	Dec. 20, 2023 CNY (¥)	Feb. 24, 2023 USD ($)	Feb. 24, 2023 CNY (¥)	Dec. 30, 2022 USD ($)	Dec. 30, 2022 CNY (¥)	Dec. 21, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 25, 2022 USD ($)	Sep. 25, 2022 CNY (¥)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 21, 2022 CNY (¥)	Sep. 30, 2022 CNY (¥)
Bank of Communications [Member]
Line of Credit [Line Items]
Line of credit facility amount								$ 1,000,000								¥ 7,300,000
Interest rate of line of credit			3.90%					3.90%
Line of credit received in advance	$ 3,500,000		¥ 3,800,000	$ 510,000	¥ 3,500,000	$ 560,000	¥ 3,800,000
Due date of line of credit	Feb. 20, 2025		Dec. 15, 2024
Interest expenses												$ 10,237	$ 5,465	$ 19,302	$ 10,568
Repayments of line of credit (in Yuan Renminbi) \| ¥		¥ 3,500,000
Bank of China [Member]
Line of Credit [Line Items]
Line of credit facility amount \| ¥																	¥ 10,000,000
Interest rate of line of credit									3.45%	3.35%	3.35%
Due date of line of credit									Sep. 28, 2023	Sep. 24, 2026	Sep. 24, 2026
Line of credit facility borrowing amount									$ 1,540,000
Interest paid												$ 11,993	$ 12,724	$ 23,915	$ 25,320
Bank of China [Member] \| Revolving Credit Facility [Member]
Line of Credit [Line Items]
Received proceeds from loan										$ 1,400,000	¥ 10,000,000

Lines of Credit (Details) - Schedule of Principal Payments - Lines of Credit [Member]	Jun. 30, 2024 USD ($)
Line of Credit Facility [Line Items]
2025	$ 1,024,303
2026	1,403,154
Total	$ 2,427,457

Convertible Note Payable (Details)																		3 Months Ended		6 Months Ended
Convertible Note Payable (Details)	Jun. 17, 2024 USD ($) $ / shares shares	May 23, 2024 USD ($)	May 21, 2024 shares	May 20, 2024 USD ($) $ / shares	Apr. 19, 2024 shares	Apr. 17, 2024 USD ($) $ / shares	Apr. 03, 2024 shares	Apr. 02, 2024 USD ($) $ / shares	Feb. 21, 2024 shares	Feb. 16, 2024 USD ($) $ / shares	Feb. 05, 2024 shares	Feb. 01, 2024 USD ($) $ / shares	Jan. 16, 2024 shares	Jan. 11, 2024 USD ($) $ / shares	Apr. 13, 2023 USD ($)	Apr. 19, 2022 $ / shares	Nov. 19, 2021 $ / shares	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($)
Convertible Note Payable [line Items]
Debt extension fee (in Dollars)															$ 65,639
Note and accrued interest															2.00%
Debt redemptions weighted average price																				82.00%
Number of trading days	10 days			10 days		10 days		10 days		10 days		10 days		10 days	10 days			10 days		10 days
Extension fee		2.00%
Outstanding balance of extension fee (in Dollars)		$ 10,934
Description of interest accrued																				Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default.
Redeem of outstanding note (in Dollars)																				$ 500,000
Debt instrument redemption price percentage	82.00%			82.00%		82.00%		82.00%		82.00%		82.00%		82.00%
Note redeemable into shares (in Shares) \| shares																				2,003,001
Weighted average price (in Dollars per share) \| $ / shares																				$ 0.2049
Debt redemption amount (in Dollars)	$ 150,000			$ 150,000		$ 150,000		$ 150,000		$ 150,000		$ 150,000		$ 150,000
Stock issued during period shares (in Shares) \| shares	701,918		590,783		540,735		512,470		408,164		402,685		380,228
Convertible Notes [Member]
Convertible Note Payable [line Items]
Note converted into common stock																70,000	176,229			2,736
Conversion price (in Dollars per share) \| $ / shares	$ 0.2137			$ 0.2539		$ 0.2774		$ 0.2927		$ 0.3675		$ 0.3725		$ 0.3945			$ 29.79085	$ 150		$ 150
Debt instrument redemption price percentage																				82.00%
Interest expense (in Dollars)																		$ 19,058	$ 105,545	$ 33,370	$ 151,563
Debt redemption amount (in Dollars)														$ 150,000
Convertible Notes [Member] \| China Pharma’s [Member]
Convertible Note Payable [line Items]
Note converted into common stock																				35,000
Minimum [Member]
Convertible Note Payable [line Items]
Debt redemptions weighted average price															85.00%
Redemption amount (in Dollars)		150,000
Maximum [Member]
Convertible Note Payable [line Items]
Debt redemptions weighted average price															82.00%
Redemption amount (in Dollars)		$ 37,182.33
Common Stock [Member] \| Convertible Notes [Member] \| China Pharma’s [Member]
Convertible Note Payable [line Items]
Conversion price (in Dollars per share) \| $ / shares																$ 75

Leases (Details) - USD ($)	3 Months Ended		6 Months Ended
Leases (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Leases [Abstract]
Operating lease cost	$ 19,228	$ 17,848	$ 38,629	$ 37,635
Operating lease payments	19,947	$ 18,744	40,074	$ 39,525
Operating lease right of use assets	77,259		77,259		$ 116,610
Operating liability	$ 78,628		$ 78,628		$ 117,637
Operating lease weighted average lease term	1 year		1 year
Operating lease weighted average discount rate	3.55%		3.55%

Leases (Details) - Schedule of Operating Lease Liabilities - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Operating Lease Liabilities [Abstract]
2025	$ 80,148
Total undiscounted cash flows	80,148
Less: Imputed interest	(1,520)
Total	78,628	$ 117,637
Less: Lease liabilities, current portion	(78,628)	(77,727)
Lease liabilities, net of current portion		$ 39,910

Income Taxes (Details) - USD ($)		6 Months Ended
Income Taxes (Details) - USD ($)	Dec. 31, 2017	Jun. 30, 2024	Dec. 31, 2023
Income Taxes [Line Items]
Enterprise income tax rate		25.00%
Operating loss carryforwards		$ 22,600,000
Operating loss carryforwards limitations, descriptions		through 2040, and $5.2 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year
Valuation allowance on deferred tax assets		$ 21,992,061	$ 21,531,017
Maximum [Member]
Income Taxes [Line Items]
U.S. federal corporate income tax rate	35.00%
Minimum [Member]
Income Taxes [Line Items]
U.S. federal corporate income tax rate	21.00%
Domestic Tax Jurisdiction [Member]
Income Taxes [Line Items]
Operating loss carryforwards		10,300,000
Operating loss carryforwards available for future taxable income		5,100,000
Tax Year 2023 [Member]
Income Taxes [Line Items]
Operating loss carryforwards		$ 2,700,000

Fair Value Measurements (Details) - Schedule of Assets and Liabilities Recorded at Fair Value - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total	$ 15,435	$ 65,915
Level 1 [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total
Level 2 [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total	15,435	65,915
Level 3 [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total
Banker's Acceptance Notes [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total	15,435	65,915
Banker's Acceptance Notes [Member] \| Level 1 [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total
Banker's Acceptance Notes [Member] \| Level 2 [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total	15,435	65,915
Banker's Acceptance Notes [Member] \| Level 3 [Member]
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items]
Total

Stockholders' Equity (Details) - USD ($)														6 Months Ended
Stockholders' Equity (Details) - USD ($)	Jun. 17, 2024	May 21, 2024	May 20, 2024	Apr. 19, 2024	Apr. 17, 2024	Apr. 03, 2024	Apr. 02, 2024	Feb. 21, 2024	Feb. 16, 2024	Feb. 05, 2024	Feb. 01, 2024	Jan. 16, 2024	Jan. 11, 2024	Jun. 30, 2024	Dec. 31, 2023	Dec. 17, 2023	Apr. 13, 2023	Dec. 27, 2022	Dec. 27, 2021	Nov. 19, 2021
Stockholders Equity [Line Items]
Common stock, shares authorized														500,000,000	500,000,000
Common stock, par value (in Dollars per share)														$ 0.001	$ 0.001
Preferred stock, shares authorized														5,000,000	5,000,000
Preferred stock, par value (in Dollars per share)														$ 0.001	$ 0.001
After tax income, percentage														10.00%
Reserve account balances, percentage														50.00%
General and statutory capital reserves amount (in Dollars)														$ 8,145,000	$ 8,145,000
Common stock shares issued														17,162,771	10,625,788
Common stock shares outstanding														17,162,771	10,625,788
Reverse stock split, description														1-for -5 reverse stock
Redemption amount (in Dollars)	$ 150,000		$ 150,000		$ 150,000		$ 150,000		$ 150,000		$ 150,000		$ 150,000
Lowest volume weighted average price	82.00%		82.00%		82.00%		82.00%		82.00%		82.00%		82.00%
Number of trading days	10 days		10 days		10 days		10 days		10 days		10 days		10 days	10 days			10 days
Issued shares	701,918	590,783		540,735		512,470		408,164		402,685		380,228
Common stock reserved shares																		100,000	100,000
Total option outstanding														13,300
Additional shares available for issuance														482,000
Issuance of securities (in Dollars)
Compensation expense (in Dollars)														0
Unrecognized compensation expense (in Dollars)														$ 0
Convertible Notes [Member]
Stockholders Equity [Line Items]
Redemption amount (in Dollars)													$ 150,000
Conversion price (in Dollars per share)	$ 0.2137		$ 0.2539		$ 0.2774		$ 0.2927		$ 0.3675		$ 0.3725		$ 0.3945	$ 150						$ 29.79085
Lowest volume weighted average price														82.00%
Minimum [Member]
Stockholders Equity [Line Items]
Common stock reserved shares																280,000		180,000	80,000
Maximum [Member]
Stockholders Equity [Line Items]
Common stock reserved shares																580,000		280,000	180,000
China Pharma’s Common Stock [Member]
Stockholders Equity [Line Items]
Common stock shares issued														10
Common stock shares outstanding														10
China Pharma’s Common Stock [Member] \| Convertible Notes [Member]
Stockholders Equity [Line Items]
Common stock shares issued														1
Common stock shares outstanding														1
Two Thousand Ten Incentive Plan [Member]
Stockholders Equity [Line Items]
Common stock shares issued														84,700
Common stock shares outstanding														84,700
Common stock issued														580,000
Common Stock [Member]
Stockholders Equity [Line Items]
Common stock shares issued														5
Common stock shares outstanding														5
Converted share issued and outstanding														1
Reverse stock split, description														1-for-10

Commitments and Contingencies (Details)	6 Months Ended
Commitments and Contingencies (Details)	Jun. 30, 2024	Jun. 30, 2023
Customer Concentration Risk [Member] \| Customer One [Member] \| Accounts Receivable [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	63.60%	53.40%
Customer Concentration Risk [Member] \| Customer Two [Member] \| Accounts Receivable [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	13.70%	11.50%
Customer Concentration Risk [Member] \| Customer Three [Member] \| Accounts Receivable [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage		10.50%
Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| Suppliers One [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	23.50%
Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| Suppliers Two [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	23.40%
Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| Suppliers Three [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	17.60%
Supplier Concentration Risk [Member] \| Raw Material Purchases [Member] \| Suppliers One [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage		19.50%
Supplier Concentration Risk [Member] \| Raw Material Purchases [Member] \| Suppliers Two [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage		18.00%
Product Concentration Risk [Member] \| Revenue Benchmark [Member] \| Product One [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	35.20%
Product Concentration Risk [Member] \| Revenue Benchmark [Member] \| Product Two [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	22.70%	19.80%
Product Concentration Risk [Member] \| Revenue Benchmark [Member] \| Product Three [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage	10.20%	11.80%
Product Concentration Risk [Member] \| Revenue, Product and Service Benchmark [Member] \| Product One [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage		22.40%
Product Concentration Risk [Member] \| Revenue, Product and Service Benchmark [Member] \| Product Four [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage		10.90%
Product Concentration Risk [Member] \| Revenue, Product and Service Benchmark [Member] \| Product Five [Member]
Commitments And Contingencies [Line Items]
Concentration risk percentage		10.00%