UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT Of
1934

                  For the Quarterly Period Ended March 31, 2006

[_] TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
Of 1934

              For the Transition Period from _________ to _________

                        Commission file number: 000-29523

                           China Pharma Holdings, Inc.
             (Exact name of registrant as specified on its charter)

                  Delaware                                         73-1564807
(State or other jurisdiction of incorporation or organization) (IRS Employer
Identification No.)


         2nd Floor, No. 17, Jinpan Road, Haikou, Hainan Province, China
                    (Address of principle executive offices)

                  0086-898-66811730 (China) 858-776-8880 (USA)
              (Registrant's telephone number, including area code)
                                   Copies to:

                                   Charles Law
                                King and Wood LLP
                               650 Page Mill Road,
                               Palo Alto, CA 94304




<PAGE>

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 past 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 [X] No [ ]

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares  outstanding of each of the  registrant's  classes of
common equity, as of the latest  practicable  date:  34,723,056 shares of common
stock issued and outstanding as of March 31, 2006.


Transitional Small Business disclosure format: Yes [ ] No [ X ]



















<PAGE>

                           China Pharma Holdings, Inc.

                                TABLE OF CONTENTS


PART I  FINANCIAL INFORMATION

ITEM 1  Financial Statements                                          F-1thruF-8
ITEM 2  Management's Discussion and Analysis of Financial Condition
        and Results of Operations                                            1-6

ITEM 3  Controls and Procedures                                                6

PART II OTHER INFORMATION

ITEM 1  Legal proceedings                                                      7
ITEM 2  Unregistered Sales of Equity Securities and use of proceeds            7
ITEM 3  Defaults upon senior securities                                        7
ITEM 4  Submission of matters to a vote of security holders                    7
ITEM 5  Other information                                                      8
ITEM 6  Exhibits and Reports on 8-K                                            8

SIGNATURES                                                                     9

EXHIBITS

================================================================================









<PAGE>

Part I - FINANCIAL INFORMATION

Item 1. Financial Statements
                                                                       Page
                                                                       ----

                                TABLE OF CONTENTS

Condensed Consolidated Balance Sheets (unaudited), March 31, 2006
and December 31, 2005                                                   F-1

Condensed Consolidated Statements of Operations (unaudited),
for the three months ended March 31, 2006 and from January 12, 2005
(Date of Inception) through March 31, 2005                              F-2

Condensed Consolidated Statements of Cash Flows (unaudited), for
the three months ended March 31, 2006 and from January 12, 2005
(Date of Inception) through March 31, 2005                              F-3

Notes to Condensed Consolidated Financial Statements (unaudited)    F-4 thru F-8













<PAGE>
<TABLE>
<CAPTION>

Item 1. Financial Statements

                           CHINA PHARMA HOLDINGS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (unaudited)


                                                             March 31, 2006    December 31, 2005
<S>                                                        <C>                 <C>
ASSETS
Current assets
Cash and cash equivalents                                  $          74,924   $         461,220
Trade accounts receivables, less allowance for doubtful
  accounts of  $1,168,385 and $1,412,353, respectively             8,251,166           5,709,762
Other non-trade receivables, less allowance for doubtful
  accounts of $64,439 and $111,029, respectively                     682,821             385,957
Advances to suppliers                                              1,722,661           2,123,729
Inventory                                                          6,550,268           5,785,196
                                                           -----------------   -----------------
  Total current assets                                            17,281,840          14,465,864
                                                           -----------------   -----------------

Non-current assets
Property and equipment, net                                        2,757,705           2,808,342
Intangible assets, net                                                86,597              96,406
Deferred tax assets                                                  156,350             130,458
                                                           -----------------   -----------------
Total non-current assets                                           3,000,652           3,035,206
                                                           -----------------   -----------------
Total assets                                               $      20,282,492   $      17,501,070
                                                           =================   =================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable                                     $       1,407,145   $         679,104
Accrued expenses                                                      32,090              15,625
Taxes payable                                                        937,492             565,236
Other accounts payable                                               206,048             250,317
Advances from customers                                               50,491              50,755
Short-term notes payable                                           4,240,914                --
Dividends payable                                                       --             4,209,889
                                                           -----------------   -----------------
Total current liabilities                                          6,874,180           5,770,926
                                                           -----------------   -----------------

Long-term liabilities
Research and development commitment                                   31,113              30,966
                                                           -----------------   -----------------
Total long-term liabilities                                           31,113              30,966
                                                           -----------------   -----------------

Shareholders' equity
Common shares - $0.001 par value; 60,000,000 shares
  authorized; 34,723,056 shares issued and outstanding                34,723              34,723
Additional paid-in capital                                         7,764,979           7,764,979
Accumulated other comprehensive income                               159,011              99,926
Retained earnings                                                  5,418,486           3,799,550
                                                           -----------------   -----------------
Total shareholders' equity                                        13,377,199          11,699,178
                                                           -----------------   -----------------
Total liabilities and shareholders' equity                 $      20,282,492   $      17,501,070
                                                           =================   =================
</TABLE>



     The accompanying notes are an integral part of the financial statements
                                       F-1


<PAGE>
<TABLE>
<CAPTION>

                     CHINA PHARMA HOLDINGS, INC.
                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                             (unaudited)

                                                                                For the period from
                                                                                 January 12, 2005
                                                            For the three       (Date of Inception)
                                                             months ended            through
                                                            March 31, 2006        March 31, 2005
                                                         -------------------    -------------------
<S>                                                      <C>                    <C>

Revenues                                                 $         4,732,991    $              --
Cost of revenues                                                   2,526,020                   --
                                                         -------------------    -------------------
Gross profit                                                       2,206,971                   --
                                                         -------------------    -------------------
Operating expenses
Selling expenses                                                      88,030                   --
General and administrative                                           264,200                   --
                                                         -------------------    -------------------
Total operating expenses                                             352,230                   --
                                                         -------------------    -------------------
Income from operations                                             1,854,741                   --
                                                         -------------------    -------------------

Non-operating income (expenses)
Interest income                                                          147                   --
Interest expense                                                     (23,799)                  --
Other income(expenses)                                                22,636                   --
                                                         -------------------    -------------------
Non-operating income (expenses)                                       (1,016)                  --
                                                         -------------------    -------------------
Income before taxes                                                1,853,725                   --
Income tax expense                                                   234,789                   --
                                                         -------------------    -------------------
Net income                                                         1,618,936                   --
                                                         -------------------    -------------------
Comprehensive Income - currency translation adjustment                59,085                   --
                                                         -------------------    -------------------
Comprhensive Income                                      $         1,678,021                   --
                                                         ===================    ===================
Basic and diluted earnings per common share              $              0.05    $              --
                                                         ===================    ===================

Weighted-average common shares outstanding                        34,723,056                   --
                                                         ===================    ===================
</TABLE>







     The accompanying notes are an integral part of the financial statements
                                       F-2


<PAGE>
<TABLE>
<CAPTION>

                           CHINA PHARMA HOLDINGS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

                                                                          For the period from
                                                                           January 12, 2005
                                                      For the three       (Date of Inception)
                                                       months ended             through
                                                      March 31, 2006         March 31, 2005
                                                   -------------------    -------------------
<S>                                                <C>                    <C>
Cash flows from operating activities
Net income                                         $         1,618,936    $              --
Depreciation and amortization                                   85,140                   --
Changes in assets and liabilities:                                --
Accounts receivable                                         (2,541,404)                  --
Other receivable                                              (296,864)                  --
Advances to suppliers                                          401,068                   --
Inventory                                                     (765,072)                  --
Deferred tax asset                                             (25,892)                  --
Trade accounts payable                                         728,040                   --
Other accounts payable                                         (44,269)                  --
Accrued expenses                                                16,465                   --
Advances from customers                                           (264)                  --
Accrued taxes payable                                          372,256                   --
                                                   -------------------    -------------------
Net cash used in operating activities                         (451,860)                  --
                                                   -------------------    -------------------

Cash Flows from Investing Activities
Purchase of property and equipment                             (22,074)                  --
Purchase of intangible assets                                   (2,472)                  --
                                                   -------------------    -------------------
Net cash used by investing activities                          (24,546)                  --
Effect of exchange rate changes in cash                         90,110                   --
                                                   -------------------    -------------------

Net decrease in cash                                          (386,296)                  --
Cash and cash equivalents at beginning of period               461,220                   --
                                                   -------------------    -------------------

Cash and cash equivalents at end of period         $            74,924    $              --
                                                   ===================    ===================
</TABLE>








     The accompanying notes are an integral part of the financial statements
                                       F-3



<PAGE>


                           CHINA PHARMA HOLDINGS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006
                                   (unaudited)

NOTE 1 - Basis of Presentation

The accompanying  unaudited condensed consolidated financial statements of China
Pharma Holding,  Inc. (the "Company");  formerly known as TS Electronics,  Inc.,
and its subsidiaries  were prepared pursuant to the rules and regulations of the
United  States  Securities  and Exchange  Commission.  Certain  information  and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted  pursuant to such rules and  regulations.
Management of the Company ("Management") believes that the following disclosures
are adequate to make the information  presented not misleading.  These condensed
consolidated financial statements should be read in conjunction with the audited
consolidated  financial  statements  and  the  notes  thereto  included  in  the
Company's Form 10-K report for the year ended December 31, 2005.

These  unaudited  condensed   consolidated   financial  statements  reflect  all
adjustments  (consisting  only of normal  recurring  adjustments)  that,  in the
opinion  of  Management,  are  necessary  to  present  fairly  the  consolidated
financial  position  and  results of  operations  of the Company for the periods
presented.  Operating results for the three months ended March 31, 2006, are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2006.

Organization - Onny Investment  Limited ("Onny") was incorporated in the British
Virgin  Islands  on  January  12,  2005.  Through  June  15,  2005,  Onny  was a
development  stage  enterprise with no activities  except for the acquisition of
Hainan Helpson Medical & Biotechnology Co., Ltd ("Helpson"), as discussed below.
Upon the  acquisition  of Helpson  and its  operations,  Onny  emerged  from the
development stage. On June 16, 2005, Onny acquired all of the outstanding shares
of Helpson and emerged from the development stage.

On October 19, 2005,  Onny was  reorganized as a wholly-owned  subsidiary of the
Company.  The  reorganization  was  accomplished  through the exchange of 29,700
shares of Onny common stock for 20,555,329  shares of the Company's common stock
and for the  commitment of the Company to issue an additional  4,723,056  shares
upon  amending  its  articles  of  incorporation.  The  exchange of shares was a
851-for-1  exchange  ratio. In addition,  the prior Onny preferred  shareholders
exchanged  their 10,000 shares of Onny common stock for 6,944,611  shares of the
Company's common stock for a 694-for-1 exchange ratio.  Additionally,  the prior
Onny preferred  shareholders  converted  their  preferred stock into Onny common



                                      F-4
<PAGE>

shares.  The  reorganization  of Onny into the Company was recognized as a stock
split  of the  common  stock  of Onny  and  the  effective  issuance  by Onny of
2,500,060   shares  of  common   stock  to  the   Company's   pre-reorganization
shareholders   and  the  assumption  of  $4,473  of  liabilities.   The  reverse
acquisition of the Company was recognized as a non-monetary exchange.

During the period  ended March 31,  2006,  the Company  amended its  articles of
incorporation  to  increase  its  authorized  shares from  30,000,000  shares to
60,000,000 shares.

Nature of  Operations - Helpson  manufactures  and markets  several  Western and
Chinese medicines sold mainly to hospitals and private retailers in The People's
Republic of China (PRC).  The  marketing  department  is in Hainan  Province and
there are also nine offices with sales  representative  in other  provinces  and
cities  throughout  the  PRC.  Helpson's  other  operating   activities  include
biochemical products, health products, and cosmetics.

Accounting  Estimates - The  preparation  of financial  statements in conformity
with accounting  principles  generally  accepted in the United States of America
requires  management 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.  Actual results could differ
from those estimates.

Basic and Diluted  Earnings  per Common  Share - Basic and diluted  earnings per
common share are computed by dividing net income by the weighted-average  number
of common shares  outstanding.  There were no dilutive common shares outstanding
on March 31, 2006.

NOTE 2 - Acquisition

On May 25,  2005,  Onny  entered  into an  agreement  with the  shareholders  of
Helpson, a privately held PRC joint venture, in which Onny agreed to acquire and
the shareholders of Helpson agreed to sell, all of the outstanding common shares
of Helpson in exchange for the  assumption of  obligations to make cash payments
to the Helpson  shareholders  in the form of common stock dividends from Helpson
of $4,154,041 the assumption of $4,646,409 of other liabilities and the issuance
of  non-interest  bearing  promissory  notes totaling  $3,413,265  payable three
months after Helpson  obtains a business  license in the PRC as a wholly foreign
owned entity.  Helpson  obtained such license on June 16, 2005 and the shares of
Helpson  were  transferred  to  Onny on that  date.  Since  June  16,  2005  was
recognized  as the date of the  acquisition,  the  promissory  notes  became due
September 16, 2005.

Since  Helpson is an operating  company and control of Helpson  changed upon the
closing of the acquisition  agreement,  Onny is the accounting  acquirer and has
recognized the  acquisition  of Helpson as a business  combination in accordance



                                      F-5
<PAGE>

with   Statements  of  Financial   Accounting   Standards   No.  141,   Business
Combinations.  On April 25,  2005,  Helpson  declared a dividend  to the selling
shareholders of $4,154,041 which equaled  Helpson's  retained  earnings at March
31, 2005 less deferred income tax assets of $86,985 that are not considered part
of  distributable  profits  under PRC law.  The fair  value of the net assets of
Helpson was  determined  by appraisal.  The cost of the net assets  exceeded the
fair value.  That excess was  allocated  as a pro-rate  reduction of the amounts
that otherwise would have been assigned to the non-current assets acquired.

NOTE 3 - Inventory

Inventory consisted of the following as of March 31, 2006:


Raw Materials                                                      $   4,605,479
Work In Process                                                          457,826
Finished Goods                                                         1,486,963
                                                                   -------------
                                                                   $   6,550,268
                                                                   =============

NOTE 4 - Income Taxes

The Company  accounts  for its income  taxes in  accordance  with  Statement  of
Financial  Accounting  Standards No. 109, which requires recognition of deferred
tax  assets  and  liabilities  for  future  tax  consequences   attributable  to
differences  between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases and any tax credit carry forwards
available.  Deferred tax assets and  liabilities  are measured using enacted tax
rates expected to apply to taxable income in the years in which those  temporary
differences are expected to be recovered or settled.  The effect on deferred tax
assets and  liabilities  of a change in tax rates is recognized in income in the
period that  includes the  enactment  date.  Helpson  received tax benefits as a
result of a reduced  tax rate from 30% to 15%, as a result of being in the first
five years of operations and a reduced tax of 7.5% as a result of operating in a
developing  economic  area in the PRC. The 7.5%  enterprise  income tax rate was
applied to the pre-tax income with the following result:





                                      F-6
<PAGE>

                                                             For the period from
                                                               January 12, 2005
                                           For the three     (Date of Inception)
                                            months ended            through
                                           March 31, 2006      March 31, 2005
--------------------------------------  -------------------  -------------------
Tax at US Federal statutory rate (34%)  $           630,267  $              --
Non-deductible expenses                              (1,648)                --
Change in temporary differences                      79,826                 --
Effect of lower foreign tax rates                  (473,656)                --
--------------------------------------  -------------------  -------------------
Income tax provision                    $           234,789  $              --
--------------------------------------  -------------------  -------------------


The Company has a deferred tax asset based upon the temporary  differences  from
the allowance for bad debt that equals  $156,350.  The Company has also incurred
various other taxes, primarily comprised of business tax, value-added tax, urban
construction tax, education surcharges and etc. Any unpaid amounts are reflected
on the balance sheets as other taxes payable.

NOTE 5 - Short Term Notes Payable

In January 2006, the Company  reclassified  its dividends  payable as short term
notes and commenced  accruing  interest on the amount due at a rate of 2.25% per
annum, resulting in interest expense of $23,799 at March 31, 2006.

NOTE 6 - Stockholders' Equity

On October 19,  2005,  the Company  acquired  all of the issued and  outstanding
common  stock of Onny;  thus,  Onny  became a  wholly  owned  subsidiary  of the
Company.  The  reorganization of Onny into the Company was recognized as a stock
split  of the  common  stock  of Onny  and  the  effective  issuance  by Onny of
2,500,060   shares  of  common   stock  to  the   Company's   pre-reorganization
shareholders.  The  number of common  shares  issued  and  outstanding  has been
restated in the accompanying  condensed  consolidated  financial statements on a
retroactive basis for the effects of the stock split.

NOTE 7 - Contingencies

Economic  environment  -  Significantly  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 foreign currency  exchange.
The Company's results 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.




                                      F-7
<PAGE>

In addition,  all of the Company's  revenue is denominated in the PRC's currency
of Renminbi  ("RMB" or "(Y)"),  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.
























                                      F-8
<PAGE>

Item 2.Management's Discussion and Analysis or Plan of Operation

The following  discussion  should be read in conjunction  with our  consolidated
financial  statements and the notes thereto and the other financial  information
appearing elsewhere in this document. In addition to historical information, the
following   discussion  and  other  parts  of  this  document   contain  certain
forward-looking information. Our financial statements are prepared in accordance
with accounting principles generally accepted in the United States. When used in
this discussion,  the words  "believes,"  "anticipates,"  "expects," and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties, which could cause actual results
to differ  materially from those projected due to a number of factors beyond our
control.

We do not  undertake  to  publicly  update or revise any of the  forward-looking
statements even if experience or future changes show that the indicated  results
or events will not be realized. You are cautioned not to place undue reliance on
these  forward-looking  statements,  which speak only as of the date hereof. You
are also urged to carefully  review and consider our  discussions  regarding the
various  factors,  which  affect our  business,  included  in this  section  and
elsewhere in this report.

Factors that might cause actual  results,  performance or achievements to differ
material,  among  other  things:  lay from  those  projected  or implied in such
forward-looking statements include: (i) the impact of competitive products; (ii)
changes in law and  regulations;  (iii) adequacy and  availability  of insurance
coverage;  (iv)  limitations on future  financing;  (v) increases in the cost of
borrowings  and  unavailability  of debt or equity  capital;  (vi) the effect of
adverse  publicity  regarding our  products;  (vii) our inability to gain and/or
hold market  share;  (viii)  exposure to and expense of resolving  and defending
product liability claims and other litigation;  (ix) consumer  acceptance of our
products;  (x) managing and maintaining  growth;  (xi) customer  demands;  (xii)
market and industry conditions including pricing and demand for products, (xiii)
the  success of  product  development  and new  product  introductions  into the
marketplace;  (xiv) the departure of key members of management; (xv) our ability
to  efficiently  market our products;  as well as other risks and  uncertainties
that are  described  from time to time in our filings  with the  Securities  and
Exchange Commission.

Notwithstanding the above,  Section 27A of the Securities Act and Section 21E of
the  Securities  Exchange Act  expressly  state that the safe harbor for forward
looking  statements does not apply to companies that issue  securities that meet
the definition of a penny stock,  as such,  the safe harbor for forward  looking
statements does not apply to us.



                                       1
<PAGE>

Overview

On  June  16,  2005,  Onny  Investment  Limited  ("Onny")  acquired  all  of the
outstanding  common  shares of Hainan  Helpson  Medical  Biotechnology  Co., Ltd
("Helpson"),  a privately  held Chinese  joint  venture,  in exchange for common
stock  dividends  payable to the  Helpson  shareholders  of  $4,154,041  and for
non-interest  bearing promissory notes totaling  $3,413,265 payable on September
16, 2005. The acquisition of Helpson was recognized as a business combination.

On October  19,  2005,  Onny issued  10,000  preferred  shares in  exchange  for
$4,313,000 in cash, net of offering costs and estimated  registration costs, and
on that same date, those preferred shares were converted into 10,000 Onny common
shares.  Also on  October  19,  2005,  Onny was  reorganized  as a  wholly-owned
subsidiary of China Pharma Holdings, Inc. The reorganization was accomplished by
the original Onny common  shareholder  exchanging  her 29,700 Onny common shares
for  20,555,329  common  shares  of  China  Pharma  Holdings,  Inc.  and for the
commitment  by China Pharma  Holdings,  Inc. to issue the  original  Onny common
shareholder  4,723,056  common shares following an amendment of the China Pharma
Holdings, Inc.. articles of incorporation increasing the number of common shares
authorized  to  60,000,000  shares.  In  addition,   the  prior  Onny  preferred
shareholders  exchanged  their 10,000 Onny common  shares for  6,944,611  common
shares of China Pharma Holdings, Inc.

We  launched  an  anti-flu  product  named  PuSenOK,  which is the only anti flu
medicine in the market  mixed with pseudo  ephedrine  hydrochloride,  that has a
non-drowsy  formula  and a  runny  nose  suppressant.  We  plan  to  expand  our
biotechnology  product  series.  Based on the foundation  established by some of
Helpson's widely recognized medicine labels such as Neurotrophicpeptide, we will
launch  several  additional  biological  medicines,  including the brain peptide
injection,  injected hepatocyte growth-promoting factors, as well as new genetic
medicines,  rh-CNTF and rha-FGF,  which will give us a new growth following that
of Neurotrophicpeptide.

Our  products  have  been  sold in more than 20  provinces,  sovereignties,  and
autonomous  regions. We have 16 sales offices and approximately 250 proxy agents
in the whole  country.  The main channels we use to deliver our products were as
follows:  (1)  Distribution  system  (Proxy  Agency);  (2) Direct sale system to
hospitals;  (3)  Direct  representation  in  clinic  hospitals  through  medical
representatives;  and (4)  Distribution  of products to local medical  companies
through logistics companies.

Our recent business activities include the following:

2005: Helpson launched a new anti-flu medicine: PusenOK.
2003: Helpson gained GMP authentication.
2003:  Helpson named "the best  enterprise  for storing SARS medicine" by Hainan
Food and Drug Administration.
2000: Helpson awarded as one of 50 best enterprises in Hainan by Hainan Economic
and Trade Bureau and Hainan Statistical Bureau.




                                       2
<PAGE>

Buflomedil Hydrochloride (Raw material; injection; & troche)
o    Received the best technology  commercialization  award in Hainan in 2004 by
     Hainan Scientific and Technological Result Examination Committee.
o    Received the national  key new  products  certificate  in 2003 by the State
     Science and  Technology  Department,  State  Taxation  Bureau,  Ministry of
     Commerce,  State Bureau of Quality Supervision,  Inspection and Quarantine,
     and State Environmental Protection Bureau.
o    Designated  as the key  technology  project  in  Hainan  in 2003 by  Haikou
     Municipality.

Operations Analysis For the three months ended
March 31, 2006

The following table presents the operation of the Company for the three months
ended March 31, 2006:

                                                For the three months ended March
                                                              31,2006
Revenues                                        $  4,732,991
                                                --------------------------------
Cost of revenues                                $  2,526,020
Operating expenses                              $    352,230
Income from operations                          $  1,854,741
Interest expense                                $     23,799
Net income                                      $  1,618,936
Basic and diluted earnings                      $       0.05
per common share

Revenues
--------
Revenues were $4,732,991 for the three months ended March 31, 2006.  During this
period,  the  revenues  increased  rapidly,  the reasons of which  mainly are as
follows:

Firstly,  the  promotion  of products  has  obtained an apparent  effect,  which
resulted in that the new products have quickly entered the market. The above new
products   primarily  include  Gastrodin   injection  and  Naproxen  Sodium  and
Pesudophedrine  Hydrochloride  (or Pusen OK).  Secondly,  the sales  network has
spread over the  majority of provinces in China.  Lastly,  increased  outputs of
products  ensured a  significant  improvement  in sales since the  manufacturing
capacity of Helpson has been expanded.

Cost of Revenues
----------------
The cost of revenues was $2,526,020, which is 53% of the revenues.




                                       3
<PAGE>

The two new products,  which have higher gross profit  margins,  were introduced
into the market. Thus, the cost of revenues was reduced during the period due to
an increased  sale. The cost is expected to be further  reduced due to economies
of scale caused by the expected rapid growth of the company,  the effective cost
control and the improvement of the manufacturing process in the year 2006.

Operating expenses
------------------
The operating  expenses for the three months ended March 31, 2006 were $352,230,
which is 18.99% of income from operations.

The selling  expenses  include the welfare and  salaries of the sales person and
related transportation  expenses. The selling expenses compared with revenue are
lower than the industry  average level,  the main reasons for that are its major
customers  are  hospitals  and the  selling  network  of the  company is through
agents.  However,  the company incurred some advertising expenses to promote its
new  product  PuSen OK,  which  increased  the  percentage  of selling  expenses
compared to the revenues in 2006.

The general and administrative expenses include R&D, the welfare and salaries of
the administrative  staff. Compared with the R&D expenditure in 2005, the amount
of the R&D  expenditure  for new products was decreased  because the researchers
come from company personnel.  Meanwhile,  the reduced amortization of intangible
assets was another reason causes a decreased operating expense.

Income from operations was $1,854,741, which is 39% of the total revenues.

Interest expenses
-----------------
Interest expense for three months ended March 31, 2006 is $23,799 and net income
is  $1,618,936.  The Company just paid off two long-term  loans in 2005, but the
Company  had not  applied  for new  loans up to March  31,  2006,  which  made a
significant  decrease of  interest  expenses  during the first  quarter of 2006.
However,  the Company plans to apply for a new loan of approximately  $3,130,000
in May of 2006. The expected  annual  interest rate is 6% will cause an increase
in interest expenses later.

Helpson is now  applying  for a special  tax  policy,  which is for the  foreign
companies in China.  The policy is that the qualified  foreign  companies do not
have to pay income  taxes in the first two years of their  operations  in China.
From the third to the fifth  year,  the  companies  only need to pay half of the
income tax rate 15%, which is 7.5%. As a new foreign company,  it is supposed to
be approved as tax  exemption  in the year 2006.  Since the  application  was in
process,  the Company still needed to pay income tax during the first quarter of
2006.  However,  the above income tax is  anticipated to be paid back by Chinese
government as soon as the favorable tax policy is authorized in the late of year
2006.



                                       4
<PAGE>

Liquidity and capital resource for the three months ended March 31, 2006

The following table presents  selected items from the balance sheets as of March
31, 2006, and December 31, 2005

                              As of March 31, 2006       As of December 31, 2005

                                       2005                        2006

cash and cash equivalents         $      74,924               $     461,220
trade accounts receivable         $   8,251,166               $   5,709,762
inventory                         $   6,550,268               $   5,785,196
Total current assets              $  17,281,840               $  14,465,864
property and equipment, net       $   2,757,705               $   2,808,342
total assets                      $  20,282,492               $  17,501,070
 Total current liabilities        $   6,874,180               $   5,770,926
long-term liabilities             $      31,113               $      30,966
Total shareholder's equity        $  13,377,199               $  11,699,178


Analysis of financial position
------------------------------
At March 31, 2006, cash and cash equivalents of $74,924, which were 4.34% of the
total  current  assets,  were  decreased by 83.76%  compared to the same item at
December 31,  2005.  The net value of property  and  equipment  was $ 2,757,705,
13.6% of the total assets.

The trade accounts  receivables  were  $8,251,166 and the valuation of inventory
was  $6,550,268  at March 31, 2006.  Trade  accounts  receivable  and  inventory
amounted  to 40.7% and 32.3%  respectively  of the total  assets.  The  dramatic
increase of sales revenues from the subsidiary of TS in China,  Helpson,  caused
the increase of the value of trade  receivables.  The long collection  period of
accounts  receivable  also caused that the accounts  receivable was increased by
44.51% compared with at December 31, 2005.  Considering the slow collectibility,
the Company plans to pay more attention to collecting trade accounts receivable,
try to use  cash-sales  when selling  products to new  customers or  small-sized
customers.


                                       5
<PAGE>

An increase of 13.22% in inventory was primarily due to the special geographical
location of Hainan Island, there is a long distance from other provinces causing
some difficulties of transportation of inventory, and the Company has to prepare
more materials in order to satisfy the production demands. Secondly, some of the
materials need to be produced by specific manufacturers; the company has to save
the  materials  to meet the  demands of  production.  Moreover,  a  dramatically
increased sale resulted in a rise of inventory.

The total  liabilities of $6,905,293  compared with total assets of $20,282,492,
results in a  liability  ratio of 34.05%.  If the  inventory  of  $6,550,268  is
excluded from total  current  assets of  $17,281,840,  compared with the current
liabilities of $6,874,180,  result in a quick ratio of 1.56. This shows that the
Company has ability to pay its debts.

An increase of $1,678,021,  14.34% in the  shareholder's  equity  compared to at
December  31,  2005  is  primarily  due to the  increase  of  accumulated  other
comprehensive income, and the increase of the retained earnings which was caused
by the increased sales revenue.

Operating activities
--------------------

As of March 31, 2006 we had cash and cash  equivalents in the amount of $74,924,
which was  decreased  by  83.76%,  in the  amount of  $386,296,  compared  to at
December 31, 2005. Net cash flow used in operating  activities  during the first
quarter of 2006 was $451,860. The main reason for the amount in cash utilized in
operating  activities was an increase of trade accounts receivable in the amount
of $2,541,404, and an increase of inventory in the amount of $765,072 during the
period.

Investing activities
--------------------

Net cash utilized in investing  activities  was $24,546 during the first quarter
of 2006.  The use of net cash was due to the  purchase of PPE  (Construction  in
progress)  and   intangible   assets  which  amounted  to  $22,074  and  $2,472,
respectively.

In  conclusion,  cash  utilized  for the first  quarter  amounted  to  $386,296,
primarily  due to the net cash  used in  operating  activity  in the  amount  of
$451,860,  and the decrease of net cash flow in the purchase of long-term assets
in the amount of $24,546.

Item 3 - Control and Procedures

As required by Rule 13a-15 under the Exchange  Act,  within the 90 days prior to
the filing date of this report,  the Company  carried out an  evaluation  of the
effectiveness of the design and operation of the Company's  disclosure  controls



                                       6
<PAGE>

and  procedures.  This evaluation was carried out under the supervision and with
the participation of the Company's management, including the Company's President
and  Chief  Executive  Officer  and Chief  Financial  Officer.  Based  upon that
evaluation,  the  Company's  President  and Chief  Executive  Officer  and Chief
Financial  Officer  concluded  that  the  Company's   disclosure   controls  and
procedures  are  effective.  There  have  been  no  significant  changes  in the
Company's  internal  controls or in other  factors,  which  could  significantly
affect  internal  controls  subsequent  to the date the Company  carried out its
evaluation.

Disclosure  controls and procedures are controls and other  procedures  that are
designed to ensure that information  required to be disclosed in Company reports
filed or submitted under the Exchange Act is recorded, processed, summarized and
reported,  within the time  periods  specified  in the  Securities  and Exchange
Commission's  rules and  forms.  Disclosure  controls  and  procedures  include,
without limitation,  controls and procedures designed to ensure that information
required to be  disclosed  in Company  reports  filed under the  Exchange Act is
accumulated  and  communicated  to  management,  including the  Company's  Chief
Executive and Chief Financial Officer as appropriate,  to allow timely decisions
regarding required disclosure.

                           PART II. OTHER INFORMATION

Item 1   Legal Proceedings

From  time to time,  we may  become  involved  in  various  lawsuits  and  legal
proceedings which arise in the ordinary course of business.  However, litigation
is subject to inherent  uncertainties,  and an adverse  result in these or other
matters may arise from time to time that may harm our business. We are currently
not aware of any such legal  proceeding  or claims  that we  believe  will have,
individually  or in the  aggregate,  a material  adverse effect on our business,
financial condition or operating results.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3 - Defaults upon Senior Securities

Not Applicable.

Item 4 - Submission of Matters to a Vote of Security Holders

On March 28,  2006,  the  Company  filed a form  definitive  14C to  effect  the
followings:




                                       7
<PAGE>

         o        Change our corporate name from TS  Electronics,  Inc. to China
                  Pharma Holdings, Inc.;

         o        Increase the number of shares of common stock authorized to be
                  issued by the  corporation  from Thirty  Million  (30,000,000)
                  shares to Sixty Million (60,000,000) shares; and

         o        Set the number of directors  constituting  the entire Board of
                  Directors at between three and nine,  with the specific number
                  to be fixed from time to time by a vote of the majority of the
                  entire Board of Directors.

The  definitive  14C became  effective on May 1, 2005 when the Company filed its
Amended  Certificate  of  Incorporation  with  the  Secretary  of the  State  of
Delaware.

Item 5 - Other Information

None.

Item 6 - Exhibits and Reports on Form 8-K

(a)      Exhibits

         31.1 - Certification of Chief Executive Officer pursuant to Rule 13a-14
         and Rule 15d-14(a) of the Exchange Act.

         31.2 - Certification of Chief Financial Officer pursuant to Rule 13a-14
         and Rule 15d-14(a) of the Exchange Act.

         32.1 -  Certification  of the Chief  Executive  Officer  pursuant to 18
         U.S.C.  Section  1350,  as  adopted  pursuant  to  Section  906  of the
         Sarbanes-Oxley Act of 2002.

         32.2 -  Certification  of the Chief  Financial  Officer  pursuant to 18
         U.S.C.  Section  1350,  as  adopted  pursuant  to  Section  906  of the
         Sarbanes-Oxley Act of 2002.









                                       8
<PAGE>

                                   SIGNATURES


In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



China Pharma Holdings, Inc.

Dated: May 11, 2006                                     By: /s/ Zhilin Li
                                                        Chief Executive Officer,
                                                        President and Director

Dated: May 11, 2006                                     By: /s/ Xinhua Wu
                                                        Chief Financial Officer
                                                        and Director


















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