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CPHI Stock Announces Incredible Fiscal Year For 2020

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China Pharma Holdings, Inc. (CPHI) a New York stock exchange-listed pharmaceutical company that produces and advertises a diverse portfolio of products, focuses on diseases with high transmission rates and high mortality rates in China. The company’s efficient business model driven by market demand combined with a very large distribution network across all major cities in China is anticipated to generate massive revenue as the new GMP-certified products release. CPHI stock has also made a subsidiary company known as, Hainan Helpson Medical & Biotechnology Co., located in Haikou city, which specializes in medicine production.

The company collected net revenue of $10.9M due to foreign trading of COVID-19 testers as market demand for covid related products increased and popped their gross margin from 13.6% in the fiscal year 2019 to 18% in the fiscal year 2020. A Net loss of $2.9 million took place in 2020 against a staggering $20.7 million loss in the fiscal year 2019.

CPHI Business model variation 

Ms. Zhilin Li, China Pharma’s Chairman, and CEO stated, “The outbreak of COVID-19 early in this year has created a substantial, negative impact on sales of pharmaceutical companies, including ours. Many people try to avoid going to hospitals for fear of cross-contamination or potential infection” However the company amended its business model to a more consumer-centric approach and started producing products related to Coronavirus which had huge market demand and surged their revenue substantially.

However, due to unpredicted variation in product demand, market competitiveness; slow-progressing economy, and low levels of RnD, CPHI stock has accumulated a loss of a collective $23M in the past two years and has the company striving for better financial results.

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