----

----

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

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

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

| Large accelerated filer                                               | o | Accelerated filer       | o |
|---------------------------------------------------------------------------------|---|-------------------------------------------------------|---|
| Non-accelerated filer   (Do not check if a smaller reporting company) | o | Smaller reporting company                   | x |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------|--------|
| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     FINANCIAL INFORMATION                                                    |     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Financial Statements.                                                                       | 1        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Balance Sheets                                                       |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | As of June 30, 2010 (Unaudited) and December 31, 2009                                       | 2        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Statements of Operations and Comprehensive Income                    |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | For the Three Months and Six Months Ended June 30, 2010 and 2009 (Unaudited)                | 3   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Statements of Cash Flows                                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | For the Six Months Ended June 30, 2010 and 2009 (Unaudited)                                 | 4        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Notes to Consolidated Financial Statements                                                  |  5  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |     Quantitative and Qualitative Disclosures about Market Risk               |  20 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Controls and Procedures.                                                                    | 20       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | OTHER INFORMATION                                                                           |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Exhibits                                                                                    | 21       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Signatures                                                                                                                                           | 22                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |
| Exhibits/Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                        |

----

----

| CHINA PHARMA HOLDINGS, INC.                                     |
|-----------------------------------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                           |
|                                                            |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |
|                                                            |   | June 30, |   |   | December 31, |   |
|                                                            |   | 2010 |   |   | 2009 |   |
| ASSETS                                                          |   | (Unaudited) |   |   |   |   |
| Current Assets:                                                 |   |   |   |   |   |   |
| Cash and cash equivalents                                       |   | $ | 4,528,115 |   |   | $ | 3,634,753 |   |
| Trade accounts receivable, less allowance for doubtful          |   |   |   |   |   |   |   |   |
| accounts of $2,833,981 and $2,718,358, respectively             |   |   | 54,868,863 |   |   |   | 51,238,339 |   |
| Other receivables, less allowance for doubtful                  |   |   |   |   |   |   |   |   |
| accounts of $8,304 and $3,556, respectively                     |   |   | 104,763 |   |   |   | 78,525 |   |
| Advances to suppliers                                           |   |   | 2,717,044 |   |   |   | 1,798,446 |   |
| Inventory                                                       |   |   | 19,306,706 |   |   |   | 14,233,073 |   |
| Deferred tax assets                                             |   |   | 467,274 |   |   |   | 319,820 |   |
| Total Current Assets                                            |   |   | 81,992,765 |   |   |   | 71,302,956 |   |
| Advances for purchases of property and equipment and            |   |   |   |   |   |   |   |   |
| intangible assets                                               |   |   | 4,072,982 |   |   |   | 3,599,949 |   |
| Property and equipment, net of accumulated depreciation of      |   |   |   |   |   |   |   |   |
| $2,418,184 and $2,020,462, respectively                         |   |   | 6,409,424 |   |   |   | 6,705,873 |   |
| Intangible assets, net of accumulated amortization of           |   |   |   |   |   |   |   |   |
| $1,820,516 and $1,359,048, respectively                         |   |   | 23,389,595 |   |   |   | 19,332,284 |   |
| TOTAL ASSETS                                                    |   | $ | 115,864,766 |   |   | $ | 100,941,062 |   |
|                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                            |   |   |   |   |   |   |   |   |
| Current Liabilities:                                            |   |   |   |   |   |   |   |   |
| Trade accounts payable                                          |   | $ | 6,343,401 |   |   | $ | 3,957,923 |   |
| Accrued expenses                                                |   |   | 52,783 |   |   |   | 47,435 |   |
| Accrued taxes payable                                           |   |   | 1,301,152 |   |   |   | 1,528,691 |   |
| Other payables                                                  |   |   | 59,434 |   |   |   | 58,191 |   |
| Advances from customers                                         |   |   | 1,024,755 |   |   |   | 1,037,693 |   |
| Other payables - related parties                                |   |   | 75,741 |   |   |   | 75,741 |   |
| Short-term notes payable                                        |   |   | 3,818,700 |   |   |   | 3,802,726 |   |
| Total Current Liabilities                                       |   |   | 12,675,966 |   |   |   | 10,508,400 |   |
| Long-term research and development commitments                  |   |   | - |   |   |   | 36,565 |   |
| Total Liabilities                                               |   |   | 12,675,966 |   |   |   | 10,544,965 |   |
| Stockholders' Equity:                                           |   |   |   |   |   |   |   |   |
| Preferred stock, $0.001 par value; 5,000,000 shares authorized; |   |   |   |   |   |   |   |   |
| no shares issued or outstanding                                 |   |   | - |   |   |   | - |   |
| Common stock, $0.001 par value; 95,000,000 shares of            |   |   |   |   |   |   |   |   |
| authorized; 43,393,644 shares and 42,308,350 shares of          |   |   |   |   |   |   |   |   |
| common stock outstanding, respectively                          |   |   | 43,393 |   |   |   | 42,308 |   |
| Additional paid-in capital                                      |   |   | 23,981,130 |   |   |   | 21,178,114 |   |
| Retained earnings                                               |   |   | 72,843,772 |   |   |   | 63,272,868 |   |
| Accumulated foreign currency translation adjustment             |   |   | 6,320,505 |   |   |   | 5,902,807 |   |
| Total Stockholders' Equity                                      |   |   | 103,188,800 |   |   |   | 90,396,097 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      |   | $ | 115,864,766 |   |   | $ | 100,941,062 |   |

----

| CHINA PHARMA HOLDINGS, INC.                     |   |
|-------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |   |
| AND COMPREHENSIVE INCOME                        |   |
| (Unaudited)                                     |   |
|                                            |   |   |   |   |   |   |
|                                            |   | For the Three Months Ended |   |   | For the Six Months Ended |   |
|                                            |   | June 30, |   |   | June 30, |   |
|                                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                         |   | $ | 16,631,354 |   |   | $ | 13,601,355 |   |   | $ | 31,733,864 |   |   | $ | 26,593,337 |   |
| Cost of revenue                                 |   |   | 9,587,417 |   |   |   | 7,681,845 |   |   |   | 18,555,719 |   |   |   | 14,745,072 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                    |   |   | 7,043,937 |   |   |   | 5,919,510 |   |   |   | 13,178,145 |   |   |   | 11,848,265 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                |   |   | 621,580 |   |   |   | 603,924 |   |   |   | 1,204,468 |   |   |   | 1,206,684 |   |
| General and administrative expenses             |   |   | 894,507 |   |   |   | 553,607 |   |   |   | 1,547,255 |   |   |   | 1,041,654 |   |
| Bad debt expense, net of recoveries             |   |   | 37,615 |   |   |   | (40,147 | ) |   |   | 108,521 |   |   |   | 734,785 |   |
| Total operating expenses                        |   |   | 1,553,702 |   |   |   | 1,117,384 |   |   |   | 2,860,244 |   |   |   | 2,983,123 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                          |   |   | 5,490,235 |   |   |   | 4,802,126 |   |   |   | 10,317,901 |   |   |   | 8,865,142 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                 |   |   | 5,401 |   |   |   | 10,720 |   |   |   | 12,158 |   |   |   | 21,309 |   |
| Interest expense                                |   |   | (51,631 | ) |   |   | (40,471 | ) |   |   | (102,121 | ) |   |   | (78,707 | ) |
| Other income                                    |   |   | 465,663 |   |   |   | - |   |   |   | 465,663 |   |   |   | - |   |
| Net other income (expense)                      |   |   | 419,433 |   |   |   | (29,751 | ) |   |   | 375,700 |   |   |   | (57,398 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                      |   |   | 5,909,668 |   |   |   | 4,772,375 |   |   |   | 10,693,601 |   |   |   | 8,807,744 |   |
| Income tax expense                              |   |   | (633,419 | ) |   |   | (486,231 | ) |   |   | (1,122,698 | ) |   |   | (843,953 | ) |
| Net income                                      |   |   | 5,276,249 |   |   |   | 4,286,144 |   |   |   | 9,570,903 |   |   |   | 7,963,791 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income - foreign currency   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| translation adjustment                          |   |   | 403,253 |   |   |   | 5,698 |   |   |   | 417,698 |   |   |   | 93,189 |   |
| Comprehensive income                            |   | $ | 5,679,502 |   |   | $ | 4,291,842 |   |   | $ | 9,988,601 |   |   | $ | 8,056,980 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per Share:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   | $ | 0.12 |   |   | $ | 0.10 |   |   | $ | 0.22 |   |   | $ | 0.19 |   |
| Diluted                                         |   | $ | 0.12 |   |   | $ | 0.10 |   |   | $ | 0.22 |   |   | $ | 0.19 |   |

----

| CHINA PHARMA HOLDINGS, INC.                      |   |
|--------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  |   |
| (Unaudited)                                      |   |
|                                             |   |   |   |   |   |   |
|                                             |   | For the Six Months Ended |   |
|                                             |   | June 30, |   |
|                                             |   | 2010 |   |   | 2009 |   |
|                                             |   |   |   |   |   |   |
| Cash Flows from Operating Activities:            |   |   |   |   |   |   |
| Net income                                       |   | $ | 9,570,903 |   |   | $ | 7,963,791 |   |
| Depreciation and amortization                    |   |   | 841,762 |   |   |   | 558,866 |   |
| Stock based compensation                         |   |   | 221,101 |   |   |   | - |   |
| Deferred income taxes                            |   |   | (145,552 | ) |   |   | (115,762 | ) |
| Changes in assets and liabilities:               |   |   |   |   |   |   |   |   |
| Trade accounts receivable                        |   |   | (3,402,232 | ) |   |   | (6,798,955 | ) |
| Other receivables                                |   |   | (25,809 | ) |   |   | 74,139 |   |
| Advances to suppliers                            |   |   | (907,559 | ) |   |   | 703,994 |   |
| Inventory                                        |   |   | (4,994,669 | ) |   |   | (1,716,958 | ) |
| Trade accounts payable                           |   |   | 2,404,264 |   |   |   | 2,426,525 |   |
| Accrued expenses                                 |   |   | (31,448 | ) |   |   | 3,133 |   |
| Accrued taxes payable                            |   |   | (233,065 | ) |   |   | (81,466 | ) |
| Other payables                                   |   |   | 1,014 |   |   |   | 7,819 |   |
| Advances from customers                          |   |   | (17,231 | ) |   |   | 36,727 |   |
| Net Cash Provided by Operating Activities        |   |   | 3,281,479 |   |   |   | 3,061,853 |   |
|                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:            |   |   |   |   |   |   |   |   |
| Advances for purchases of property and equipment |   |   |   |   |   |   |   |   |
| and intangible assets                            |   |   | (2,018,906 | ) |   |   | (3,813,857 | ) |
| Purchase of property and equipment               |   |   | (108,842 | ) |   |   | (232,624 | ) |
| Purchase of intangible assets                    |   |   | (2,852,168 | ) |   |   | (2,308,941 | ) |
| Net Cash Used in Investing Activities            |   |   | (4,979,916 | ) |   |   | (6,355,422 | ) |
|                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activity:              |   |   |   |   |   |   |   |   |
| Proceeds from exercise of warrants               |   |   | 2,583,000 |   |   |   | - |   |
| Net Cash Provided by Financing Activity          |   |   | 2,583,000 |   |   |   | - |   |
|                                             |   |   |   |   |   |   |   |   |
| Effect of Exchange Rate Changes on Cash          |   |   | 8,799 |   |   |   | 9,221 |   |
| Net Increase (Decrease) in Cash                  |   |   | 893,362 |   |   |   | (3,284,348 | ) |
| Cash and Cash Equivalents at Beginning of Period |   |   | 3,634,753 |   |   |   | 6,927,149 |   |
| Cash and Cash Equivalents at End of Period       |   | $ | 4,528,115 |   |   | $ | 3,642,801 |   |
|                                             |   |   |   |   |   |   |   |   |
| Supplemental Cash Flow Information:              |   |   |   |   |   |   |   |   |
| Cash paid for interest                           |   | $ | 102,121 |   |   | $ | 85,429 |   |
| Cash paid for income taxes                       |   |   | 2,906,168 |   |   |   | 1,115,831 |   |

----

----

|                                               |   | For the Three Months |       |   | For the Six Months |   |
|----------------------------------------------------|--------|----------------------|------------|--------|--------------------|--------|
|                                               |   | Ended June 30,       |       |   | Ended June 30,     |   |
|                                               |   | 2010                 |       |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                               |   |                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   | $                    | 5,276,249  |   |               | $      | 4,286,144 |   |   | $ | 9,570,903 |   |   | $ | 7,963,791 |   |
| Basic weighted-average common shares outstanding   |   |                 | 43,393,644 |   |               |   | 42,278,938 |   |   |   | 43,261,567 |   |   |   | 42,278,938 |   |
| Effect of dilutive securities:                     |   |                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                                           |   |                 | 93,793     |   |               |   | - |   |   |   | 280,592 |   |   |   | - |   |
| Options                                            |   |                 | 10,202     |   |               |   | - |   |   |   | 8,141 |   |   |   | - |   |
| Diluted weighted-average common shares outstanding |   |                 | 43,497,639 |   |               |   | 42,278,938 |   |   |   | 43,550,300 |   |   |   | 42,278,938 |   |
| Basic earnings per share                           |   | $                    | 0.12       |   |               | $      | 0.10 |   |   | $ | 0.22 |   |   | $ | 0.19 |   |
| Diluted earnings per share                         |   | $                    | 0.12       |   |               | $      | 0.10 |   |   | $ | 0.22 |   |   | $ | 0.19 |   |

|                                                      |   | For the Three Months |      |   | For the Six Months |   |
|-----------------------------------------------------------|--------|----------------------|-----------|--------|--------------------|--------|
|                                                      |   | Ended June 30,       |      |   | Ended June 30,     |   |
|                                                      |   | 2010                 |      |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                                      |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Warrants with exercise prices of $3.00 to $3.80 per share |   |                 | 1,822,873 |   |               |   | 2,969,607 |   |   |   | 1,668,719 |   |   |   | 2,969,607 |   |
| Options with an exercise price of $3.47 per share         |   |                 | 200,000   |   |               |   | - |   |   |   | 200,000 |   |   |   | - |   |
| Total                                                     |   |                 | 2,022,873 |   |               |   | 2,969,607 |   |   |   | 1,868,719 |   |   |   | 2,969,607 |   |

----

|            |   | June 30, |       |   | December 31, |   |
|-----------------|--------|----------|------------|--------|--------------|--------|
|            |   | 2010     |       |   | 2009         |   |
| Raw materials   |   | $        | 10,135,138 |   |         | $      | 9,353,076 |   |
| Finished goods  |   |     | 9,171,568  |   |         |   | 4,879,997 |   |
| Total Inventory |   | $        | 19,306,706 |   |         | $      | 14,233,073 |   |

|                           |   | June 30, |       |   | December 31, |   |
|--------------------------------|--------|----------|------------|--------|--------------|--------|
|                           |   | 2010     |       |   | 2009         |   |
| Permit of land use             |   | $        | 413,694    |   |         | $      | 411,963 |   |
| Building                       |   |     | 2,238,807  |   |         |   | 2,229,442 |   |
| Plant, machinery and equipment |   |     | 5,477,397  |   |         |   | 5,223,872 |   |
| Motor vehicle                  |   |     | 135,695    |   |         |   | 135,127 |   |
| Office equipment               |   |     | 122,061    |   |         |   | 109,440 |   |
| Construction in progress       |   |     | 439,954    |   |         |   | 616,491 |   |
| Total                          |   |     | 8,827,608  |   |         |   | 8,726,335 |   |
| Less: accumulated depreciation |   |     | (2,418,184 | )      |         |   | (2,020,462 | ) |
| Property and Equipment, net    |   | $        | 6,409,424  |   |         | $      | 6,705,873 |   |

| Asset                          |   |  Life - years |
|--------------------------------|--------|--------------------|
| Permit of land use             |   | 40 - 70            |
| Building                       |   | 20 - 35            |
| Plant, machinery and equipment |   | 10                 |
| Motor vehicle                  |   | 5 - 10             |
| Office equipment               |   | 5                  |

----

----

|           |   | Enterprise Income |
|----------------|--------|-------------------|
| Year           |   | Tax Rate          |
| 2010           |   | 11%               |
| 2011           |   | 24%               |
| 2012 and after |   | 25%               |

|                   |   | For the Three Months |    |   | For the Six Months |   |
|------------------------|--------|----------------------|---------|--------|--------------------|--------|
|                   |   | Ended June 30,       |    |   | Ended June 30,     |   |
|                   |   | 2010                 |    |   | 2009               |   |   | 2010 |   |   | 2009 |   |
| Current                |   | $                    | 706,632 |   |               | $      | 479,027 |   |   | $ | 1,268,250 |   |   | $ | 959,715 |   |
| Deferred               |   |                 | (73,213 | )      |               |   | 7,204 |   |   |   | (145,552 | ) |   |   | (115,762 | ) |
| Net Income Tax Expense |   | $                    | 633,419 |   |               | $      | 486,231 |   |   | $ | 1,122,698 |   |   | $ | 843,953 |   |

----

----

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

----

| ·   | We completed the clinical trials earlier this year for Candesartan, a front-line drug therapy for the treatment of hypertension. Since then, we have completed all testing procedures for this new product, and we are currently waiting for the final production approval from SFDA. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We continue to receive positive feedback from patients during our clinical trial of Rosuvastatin, a generic form of Crestor. The majority of the patients in the clinical trial have completed the treatment cycle. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The clinical trial for our anti-drug-resistant antibiotic combination drug is also progressing on schedule, and the Phase I part of the trial is nearly completed. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                        |   | Three Months Ended June 30th |       |   |   |   |       | Six Months Ended June 30th |   |   |   |   |
|---------------------------------------------|--------|------------------------------|------------|--------|--------|--------|------------|----------------------------|--------|--------|--------|--------|
|                                        |   | 2010                         |       |   | 2009   |   |       | % Chg                      |   |   | 2010   |   |   | 2009 |   |   | % Chg |   |
| Revenue                                     |   | $                            | 16,631,354 |   |   | $      | 13,601,355 |                       |   |   | 22     | %      |   | $ | 31,733,864 |   |   | $ | 26,593,337 |   |   |   | 19 | % |
| Cost of Revenue                             |   |                         | 9,587,417  |   |   |   | 7,681,845  |                       |   |   | 25     | %      |   |   | 18,555,719 |   |   |   | 14,745,072 |   |   |   | 26 | % |
| Gross Profit                                |   |                         | 7,043,937  |   |   |   | 5,919,510  |                       |   |   | 19     | %      |   |   | 13,178,145 |   |   |   | 11,848,265 |   |   |   | 11 | % |
| Selling Expenses                            |   |                         | 621,580    |   |   |   | 603,924    |                       |   |   | 3      | %      |   |   | 1,204,468 |   |   |   | 1,206,684 |   |   |   | 0 | % |
| General and Admin Expenses                  |   |                         | 894,507    |   |   |   | 553,607    |                       |   |   | 62     | %      |   |   | 1,547,255 |   |   |   | 1,041,654 |   |   |   | 49 | % |
| Bad Debt Expense                            |   |                         | 37,615     |   |   |   | (40,147    | )                          |   |   |   |   |   |   | 108,521 |   |   |   | 734,785 |   |   |   | -85 | % |
| Income from Operations                      |   |                         | 5,490,235  |   |   |   | 4,802,126  |                       |   |   | 14     | %      |   |   | 10,317,901 |   |   |   | 8,865,142 |   |   |   | 16 | % |
| Other Income                                |   |                         | 465,663    |   |   |   | -          |                       |   |   |   |   |   |   | 465,663 |   |   |   | - |   |   |   |   |   |
| Income Tax Expense                          |   |                         | 633,419    |   |   |   | 486,231    |                       |   |   | 30     | %      |   |   | 1,122,698 |   |   |   | 843,953 |   |   |   | 33 | % |
| Net Income                                  |   | $                            | 5,276,249  |   |   | $      | 4,286,144  |                       |   |   | 23     | %      |   | $ | 9,570,903 |   |   | $ | 7,963,791 |   |   |   | 20 | % |
| Basic Net Income per Share                  |   | $                            | 0.12       |   |   | $      | 0.10       |                       |   |   | 20     | %      |   | $ | 0.22 |   |   | $ | 0.19 |   |   |   | 17 | % |
| Basic Weighted Average Shares Outstanding   |   |                         | 43,393,644 |   |   |   | 42,278,938 |                       |   |   |   |   |   |   | 43,261,567 |   |   |   | 42,278,938 |   |   |   |   |   |
| Diluted Net Income per Share                |   | $                            | 0.12       |   |   | $      | 0.10       |                       |   |   | 20     | %      |   | $ | 0.22 |   |   | $ | 0.19 |   |   |   | 17 | % |
| Diluted Weighted Average Shares Outstanding |   |                         | 43,497,639 |   |   |   | 42,278,938 |                       |   |   |   |   |   |   | 43,550,300 |   |   |   | 42,278,938 |   |   |   |   |   |

| Product Category                       | Three Months Ended June 30 | Net Change | % Change |
|----------------------------------------|----------------------------|------------|----------|
|                                   | 2010                       | 2009       |     |   |
| CNS Cerebral & Cardio Vascular     | $ 4.9                      | $ 5.1      | -$ 0.2   | -5% |
| Anti-Viro/ Infection & Respiratory | $ 6.3                      | $ 5.2      | $ 1.1    | 21% |
| Digestive Diseases                     | $ 2.3                      | $ 1.0      | $ 1.3    | 129% |
| Other                                  | $ 3.2                      | $ 2.3      | $ 0.9    | 40% |

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| Product Category                       | Six  Months Ended June 30 | Net Change | % Change |
|----------------------------------------|-------------------------------------|------------|----------|
|                                   | 2010                                | 2009       |     |   |
| CNS Cerebral & Cardio Vascular     | $ 10.2                              | $ 10.4     | -$ 0.2   | -2% |
| Anti-Viro/ Infection & Respiratory | $ 11.6                              | $ 9.3      | $ 2.4    | 26% |
| Digestive Diseases                     | $ 4.0                               | $ 1.4      | $ 2.6    | 179% |
| Other                                  | $ 5.9                               | $ 5.5      | $ 0.4    | 8% |

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|                                      |   | Six Months Ended June 30 |       |
|-------------------------------------------|--------|--------------------------|------------|
|                                      |   | 2010                     |       |   | 2009 |   |
| Net Cash Provided by Operating Activities |   | $                        | 3,281,479  |   |   | $ | 3,157,100 |   |
| Net Cash Used in Investing Activities     |   |                     | (4,979,916 | ) |   |   | (6,355,422 | ) |
| Net Cash Provided by Financing Activities |   |                     | 2,583,000  |   |   |   | - |   |
| Effect of Exchange Rate change on Cash    |   |                     | 8,799      |   |   |   | 9,221 |   |
| Cash & Equivalent Beginning Balance   |   |                     | 3,634,753  |   |   |   | 6,927,149 |   |
| Cash & Equivalent Ending Balance      |   | $                        | 4,528,115  |   |   | $ | 3,738,048 |   |

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|                       | CHINA PHARMA HOLDINGS, INC. |                                                                                                                                                                                                                                                                            |
|----------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                        |                                                                                                                                                                                                                                                                            |   |
| Date: August 9, 2010  | By:                         |  /s/ Zhilin Li                                           |   |
|                       |                        | Name: Zhilin Li                                                                                                                                                                                                                                                                 |   |
|                       |                        | Title: President and Chief Executive Officer                                                                                                                                                                                                                               |   |
|                       |                        | (principal executive officer)                                                                                                                                                                                                                                              |   |

| Date: August 9, 2010 | By:    |  /s/ Frank Waung                                    |   |
|----------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                 |   | Name: Frank Waung                                                                                                                                                                                                                       |   |
|                 |   | Title: Chief Financial Officer                                                                                                                                                                                                     |   |
|                 |   | (principal financial officer and principal                                                                                                                                                                                         |   |
|                 |   | accounting officer)                                                                                                                                                                                                                |   |

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