China Pharma Holdings Inc.

Corporate structure and scope

• Nevada holding company. Operations are conducted through wholly owned PRC subsidiary Hainan Helpson Medical and Biotechnology Co., Ltd. ("Helpson") and Helpson’s PRC subsidiaries.
• Through Helpson, the Company develops, manufactures and markets pharmaceutical products for human use in the PRC, focused on high-incidence and high-mortality diseases and conditions.
• As of December 31, 2025, the Company, through Helpson, holds manufacturing rights for 19 pharmaceutical products in three categories:
  • Basic generic drugs
  • First-to-market generic drugs
  • Modern Traditional Chinese Medicines (TCMs)

Products and forms

• Portfolio: 19 prescription pharmaceutical products approved by the NMPA for at least one indication.
• Product forms: dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. Some products are marketed as branded generics.
• Therapeutic areas include CNS, cardiovascular, infectious/respiratory, and digestive diseases (examples: candesartan for hypertension; antibiotics such as roxithromycin, cefaclor, cephalexin, clarithromycin).
• The Company maintains a broader pipeline and is conducting consistency evaluations for several major products.

Manufacturing and facilities

• Two production facilities in Haikou, Hainan Province:
  • Old facility: ~8,000 m²
  • New facility: two buildings with production areas of ~20,282.42 m² and ~6,593.20 m²
• Land use rights: ~22,936 m² in Haikou Bonded Zone, expiring September 10, 2063.
• Production lines cover tablets, capsules, dry powder injectables, liquid injectables, cephalosporins, and related formats; additional lines for health care products and masks.
• Regulatory compliance: production lines were compliant with the PRC 2011 GMP Standards. Under the 2019 Drug Administration Law, GMP certificates have been replaced by a pilot inspection regime; Helpson’s lines are subject to pilot inspections under the New Law.

Market and customers

• Distribution model: direct sales to hospitals and OTC pharmacies through provincial/municipal licensed distributors holding Drug Supply Licenses and GSP certifications.
• All customers are located in the PRC.
• Sales and promotion model: national sales network and physician-driven promotion with education and evidence-based medical support to healthcare institutions.
• Customer concentration (2025): top five distributors accounted for 23% of net revenues; no single customer accounted for more than 10% of sales in 2025.
• Accounts receivable concentration (2025): three customers represented 39.2%, 14.4%, and 9.2% of accounts receivable.

Financials (as of year ended 12/31/2025)

• Revenue by product category (USD, millions):
  • 2025:
    • CNS Cerebral & Cardiovascular: 1.32
    • Anti-Viral / Infection & Respiratory: 2.48
    • Digestive Diseases: 0.23
    • Other: 0.07
    • Total: 4.10
  • 2024:
    • CNS Cerebral & Cardiovascular: 1.35
    • Anti-Viral / Infection & Respiratory: 2.75
    • Digestive Diseases: 0.20
    • Other: 0.18
    • Total: 4.48
• Gross margin:
  • 2025: -3.2%
  • 2024: -43.8%
• Profitability and liquidity: the Company has incurred recurring operating losses and an accumulated deficit, which raise substantial doubt about its ability to continue as a going concern. Management is pursuing credit management and strategic alternatives to improve liquidity.
• Dividend policy: no cash dividends are planned; earnings will be retained for reinvestment.

Employees

• As of December 31, 2025: 221 employees (215 full-time, 6 temporary).

Intellectual property and brands

• Trademarks: Helpson owns 15 registered trademarks as of December 31, 2025, covering eight of the 19 pharmaceutical products plus company logos (HPS, HELPSON variants).
• Patents and technology: Helpson has acquired patents and patent applications related to cerebral/CV indications, COPD treatment, psoriasis, ocular therapies, and other pharmaceutical technologies via technology transfers and internal development. Patent activity includes inventions and utility models granted or filed between 2008 and 2026.

Regulatory and legal environment

• Operations are governed by NMPA and PRC regulatory frameworks covering registration, approvals, consistency evaluations, manufacturing permits, and post-approval oversight. Reforms include the New Law’s pilot inspections, ongoing consistency evaluations, and centralized procurement policies.
• Cross-border considerations: CSRC filing requirements for overseas offerings, HFCAA-related considerations, and PCAOB inspection status are addressed in risk disclosures.
• Currency and tax: revenue is primarily in Renminbi. PRC withholding and enterprise income tax rules apply to PRC-resident and non-resident entities; cross-border and tax rules affect offshore structures and indirect transfers.
• Product liability and environmental compliance obligations apply to manufacturing operations.

Strategy and opportunities

• Focus areas: promoting existing brands, completing consistency evaluations for major products, exploring the consumer health market, expanding distribution and regional penetration, and pursuing CDMO opportunities under the drug marketing license holder system and potential acquisitions.
• Continued compliance with evolving PRC regulatory frameworks (consistency evaluation, GPO dynamics, centralized procurement, and digital/e-prescription channels) is a strategic priority.

Real estate and collateral

• Helpson’s Haikou facilities include factory area and land use rights.
• The Company has a revolving loan (RMB 10 million) secured by the Helpson facility and equipment, with a personal guarantee from the CEO. Interest rates vary by year and are described through 2025–2026.

Other operational details

• Cash management: resources are allocated by subsidiary needs, with transfers among entities based on operational requirements. Historical transfers include movements between Helpson and China Pharma for agent services.