China Pharma Holdings, Inc.

CPHI

$0.84

-0.08%

N/A-$0.00

Healthcare

Drug Manufacturers - Specialty & Generic

AMEX

Active Trading

China Pharma Holdings, Inc. (CPHI) specializes in the development, manufacturing, and marketing of both generic and branded pharmaceutical as well as biochemical ...

Fundamental Analysis of CPHI

Key Strengths

Broad specialty/generic product portfolio serving hospital and retail channels across mainland China

Vertical integration across R&D, manufacturing, and marketing supports product and distribution execution

Risk Factors

Severely negative profitability: TTM net margin (~-114%), operating margin (~-112%), and EBITDA margin (~-36.8%)

Weak liquidity and likely funding sensitivity: current ratio (~0.261) and quick ratio (~0.084), negative working capital

Profitability

Net Margin-114.33%

Operating Margin-111.84%

Valuation

P/E Ratio-0.83x

Current Ratio0.26

Efficiency

ROE-17.14%

ROA-10.01%

Fundamental Analysis of CPHI

China Pharma Holdings, Inc. (CPHI) is a specialty/generic pharmaceutical manufacturer and marketer focused on products for hospitals and independent retailers across mainland China. The business is vertically integrated across R&D, production, and distribution (including multiple sales offices and a sales team of ~1,000 employees), which can support execution and market access for a broad portfolio of injectables, tablets/capsules, and certain biochemical and supportive health products. From a fundamentals standpoint, however, the latest TTM snapshot points to severe profitability and cash-flow stress. Margins are deeply negative: gross margin is about -9.3%, operating margin about -111.8%, EBITDA margin about -36.8%, and net profit margin about -114.3%. Returns are also negative across the board (ROA ~ -10.0%, ROE ~ -17.1%, ROIC ~ -10.8%), indicating the company is currently destroying shareholder value rather than compounding it. Liquidity is weak with a current ratio of ~0.261 and quick ratio of ~0.084, and working capital is negative (approximately -$5.7M). Cash conversion is prolonged (inventory days ~116; receivables days ~23; cash conversion cycle ~77), which can amplify strain when demand or pricing pressures worsen. Valuation ratios are difficult to interpret because profitability appears negative (P/E TTM ~ -0.97). Enterprise-value multiples also appear distorted (e.g., EV/EBITDA TTM negative), consistent with a loss-making operating profile and negative/near-zero free cash flow metrics (free cash flow yield extremely negative and FCF-related yields shown as highly adverse). Leverage is modest by debt-to-equity (~0.104) and debt-to-assets (~0.084), but the company’s ability to service obligations is still concerning given negative operating cash flow coverage ratios and very poor interest coverage figures in the snapshot. Overall, CPHI’s fundamental profile looks like a turnaround with elevated financial and execution risk rather than a stable compounder. For long-term investors, the key question is whether management can restore sustainable profitability and cash generation (improved margins, better working capital efficiency, and positive operating cash flow) while navigating regulatory and competitive pressures in China’s healthcare market.

Key Strengths of CPHI

Broad specialty/generic product portfolio serving hospital and retail channels across mainland China
Vertical integration across R&D, manufacturing, and marketing supports product and distribution execution
Multiple scalable GMP-certified product lines (qualitative disclosures cited externally) that can enable manufacturing continuity
Distribution footprint including own sales offices and sizable sales force, supporting commercial reach
Some diversification across therapeutic areas (cardiovascular/cerebrovascular, CNS/memory support, anti-infectives, GI, analgesic/cold relief)

Risk Factors of CPHI

Severely negative profitability: TTM net margin (~-114%), operating margin (~-112%), and EBITDA margin (~-36.8%)
Weak liquidity and likely funding sensitivity: current ratio (~0.261) and quick ratio (~0.084), negative working capital
Negative/unstable cash generation: deeply negative operating cash flow and free cash flow measures in the snapshot
Asset/returns pressure: negative ROA/ROE/ROIC indicates value destruction and limited capital efficiency
Working-capital strain signals: prolonged inventory holding (inventory days ~116) and reliance on working capital dynamics
Valuation metrics are unreliable due to losses (P/E and EV multiples distorted), increasing uncertainty for investors
Industry/regulatory risk: China pharmaceutical pricing, procurement reforms, and compliance requirements can compress margins
Financing and going-concern risk dynamics (external notes of going-concern flags have been cited), heightening downgrade/ dilution risk

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$34.01M

-0.8x

P/E Ratio

8.7x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin-9.33%

Net Profit Margin-114.33%

Debt/Equity Ratio0.10

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of CPHI

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of CPHI

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	-153.76%	—	—	Flat
Operating Margin	—	-150.98%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of CPHI

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	0.261	—	—	Flat
Quick Ratio	—	0.084	—	—	Flat
Debt / Equity	—	0.104	—	—	Flat

Valuation of CPHI

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	-0.49x	—	—	Flat
P/B	—	0.08x	—	—	Flat

Supply Chain of CPHI

RELATIONS

Upstream

Zhejiang Hisun Pharmaceutical Co., Ltd.SHA:600216NCPC (North China Pharmaceutical Company Ltd.)SHA:600812Shandong Lukang Pharmaceutical Co., Ltd.SHA:600789Zhejiang Huahai Pharmaceutical Co., Ltd.SHA:600521Harbin Pharmaceutical Group Co., Ltd.SHA:600664Unlisted specialty API/chemical suppliers (Hainan/Guangdong-based)Zhejiang Jiuzhou Pharmaceutical Co., Ltd.SHA:603456Shandong Jincheng Pharmaceutical Group Co., Ltd.Unconfirmed

Downstream

Sinopharm Group Co., Ltd.HKEx:1099Jointown Pharmaceutical Group Co., Ltd.SHA:600998Shanghai Pharmaceuticals Holding Co., Ltd.HKEx:2607 China Resources Pharmaceutical Group LimitedHKEx:3320Provincial & municipal hospitals (30+ provincial-level hospital networks)OTC retail pharmacies (nationwide network of chain and independent pharmacies)

Proxies

Shandong Lukang Pharmaceutical Co., Ltd.SHA:600789NCPC (North China Pharmaceutical Company Ltd.)SHA:600812Harbin Pharmaceutical Group Co., Ltd.SHA:600664

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