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 June 30, 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                                 (IRS Employer
  incorporation or organization)                             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


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 [ ]

<PAGE>

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 June 30, 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-7
ITEM 2   Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                           1-6

ITEM 3   Controls and Procedures                                               7

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                   8
ITEM 5   Other information                                                     8
ITEM 6   Exhibits and Reports on 8-K                                           8

SIGNATURES                                                                     9

EXHIBITS

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














<PAGE>

TABLE OF CONTENTS

Part I -  FINANCIAL INFORMATION

Item 1.   Financial Statements                                              Page
                                                                            ----

Condensed Consolidated Balance Sheets (unaudited), June 30, 2006 and
December 31, 2005                                                            F-2

Condensed Consolidated Statements of Operations (unaudited), for the
three months ended June 30, 2006 and 2005, and for six months ended
June 30, 2006 and from January 12, 2005 (Date of Inception) through
June 30, 2005                                                                F-3

Condensed Consolidated Statements of Cash Flows (unaudited), for the
six months ended June 30, 2006 and from January 12, 2005 (Date of
Inception) through June 30, 2005                                             F-4

Notes to the Condensed Consolidated Financial Statements (unaudited)  F-5thruF-7















                                      F-1
<PAGE>
<TABLE>
<CAPTION>

Item 1.   Financial Statements

                           CHINA PHARMA HOLDINGS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                             June 30,     December 31,
                                                               2006           2005
                                                           ------------   ------------
<S>                                                        <C>            <C>
                                                           (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents                                  $    195,224   $    461,220
Trade accounts receivable, less allowance for doubtful
accounts of $826,146 and $1,412,353, respectively             9,119,327      5,709,762
Other non-trade receivables, less allowance for doubtful
accounts of $79,341 and $111,029, respectively                  486,691        385,957
Advances to suppliers                                         1,978,947      2,123,729
Inventory                                                     6,782,480      5,785,196
                                                           ------------   ------------
Total Current Assets                                         18,562,669     14,465,864
                                                           ------------   ------------
Non-current Assets:
Property and equipment, net                                   2,806,435      2,808,342
Intangible assets, net                                           76,604         96,406
Deferred tax assets                                             107,063        130,458
                                                           ------------   ------------
Total Non-current Assets                                      2,990,102      3,035,206
                                                           ------------   ------------
TOTAL ASSETS                                               $ 21,552,771   $ 17,501,070
                                                           ------------   ------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable                                     $  1,213,611   $    679,104
Accrued expenses                                                105,386         15,625
Taxes payable                                                   447,173        565,236
Other accounts payable                                          217,880        250,317
Advances from customers                                          68,921         50,755
Short-term notes payable                                      4,256,158           --
Dividends payable                                                  --        4,209,889
                                                           ------------   ------------
Total Current Liabilities                                     6,309,129      5,770,926
                                                           ------------   ------------
Research and development commitments                             31,225         30,966
                                                           ------------   ------------
Total Liabilities                                             6,340,354      5,801,892
                                                           ------------   ------------
Shareholders' Equity:
Common stock, $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                          211,558         99,926
Retained earnings                                             7,201,157      3,799,550
                                                           ------------   ------------
Total Shareholders' Equity                                   15,212,417     11,699,178
                                                           ------------   ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                 $ 21,552,771   $ 17,501,070
                                                           ------------   ------------
</TABLE>

       See the accompanying notes to the unaudited condensed consolidated
                             financial statements.


                                      F-2
<PAGE>
<TABLE>
<CAPTION>

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

                                                                                                    For the period
                                                                                                   from January 12,
                                               For the three months              For the six        2005 (Date of
                                                  ended June 30,                 months ended         Inception)
                                       ------------------------------------        June 30,        through June 30,
                                             2006                2005                2006                2005
                                       ----------------    ----------------    ----------------    ----------------
<S>                                    <C>                 <C>                 <C>                 <C>
Revenue                                $      3,975,569    $        492,530    $      8,709,334    $        492,530
Cost of revenue                               2,105,082             324,994           4,631,549             324,994
                                       ----------------    ----------------    ----------------    ----------------

Gross profit                                  1,870,487             167,536           4,077,785             167,536
                                       ----------------    ----------------    ----------------    ----------------

Operating expenses:
Selling expenses                                 82,133               4,490             170,161               4,490
General and administrative                      436,340              20,078             680,321              20,078
                                       ----------------    ----------------    ----------------    ----------------
Total operating expenses                        518,473              24,568             850,482              24,568
                                       ----------------    ----------------    ----------------    ----------------

Income from operations                        1,352,014             142,968           3,227,303             142,968
                                       ----------------    ----------------    ----------------    ----------------

Non-operating income (expenses):
Interest income                                      87                --                   182                --
Bad debt recovery                               627,861                --               626,580                --
Interest expense                                (24,103)            (28,895)            (47,898)            (28,895)
Other income (expense)                          120,803                --               120,461                --
                                       ----------------    ----------------    ----------------    ----------------
Total non-operating income (expense)            724,648             (28,895)            699,325             (28,895)
                                       ----------------    ----------------    ----------------    ----------------

Income before taxes                           2,076,662             114,073           3,926,628             114,073
Income tax expense                             (246,200)             (9,521)           (525,022)             (9,521)
                                       ----------------    ----------------    ----------------    ----------------
Net income                             $      1,830,462    $        104,552    $      3,401,606    $        104,552
                                       ----------------    ----------------    ----------------    ----------------
Comprehensive income -
foreign currency translation
adjustments                                      62,557                --               221,558                --
                                       ----------------    ----------------    ----------------    ----------------
Comprehensive income                   $      1,893,019    $        104,552    $      3,623,164    $        104,552
                                       ----------------    ----------------    ----------------    ----------------

Basic and diluted earnings per
common share                           $           0.05    $           1.23    $           0.10    $           1.23
                                       ----------------    ----------------    ----------------    ----------------

Weighted-average common
shares outstanding                           34,723,056              85,112          34,723,056              85,112
                                       ----------------    ----------------    ----------------    ----------------
</TABLE>

       See the accompanying notes to the unaudited condensed consolidated
                              financial statements.


                                      F-3
<PAGE>
<TABLE>
<CAPTION>

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

                                                                        For the period
                                                                       from January 12,
                                                     For the six        2005 (Date of
                                                     months ended         Inception)
                                                       June 30,        through June 30,
                                                         2006                2005
                                                   ----------------    ----------------
<S>                                                <C>                 <C>
Cash Flows from Operating Activities:
Net income                                         $      3,401,606    $        104,552
Depreciation and amortization                               193,065               7,289
Loss on disposal of property and equipment                     --                19,934
Accretion of discount on notes payable                         --                12,870
Deferred tax assets                                          24,387                --
Changes in assets and liabilities:
Accounts receivable                                      (3,348,145)           (472,696)
Other receivables                                           (97,112)           (453,974)
Advances to suppliers                                       161,868             807,785
Inventory                                                  (945,068)           (529,801)
Trade accounts payable                                      526,675             536,973
Accrued expenses                                             84,810               9,389
Taxes payable                                              (122,285)            (21,547)
Other accounts payable                                         --              (213,403)
Advances from customers                                      17,670              95,902
Short-term notes payable                                     31,653                --
                                                   ----------------    ----------------
Net Cash Used in Operating Activities                       (70,876)            (96,727)
                                                   ----------------    ----------------

Cash Flows from Investing Activities:
Capital expenditures, net of dispositions                  (144,790)             (3,565)
Net cash received in purchase of Subsidiary                    --               129,073
Proceeds from note receivable                                  --                11,083
Purchase of intangible assets                                (2,477)               --
                                                   ----------------    ----------------
Net Cash (Used) Provided by Investing Activities           (147,267)            136,591
                                                   ----------------    ----------------

Cash Flows from Financing Activities:
Proceeds from issuance of common stock                         --                     1
                                                   ----------------    ----------------
Net Cash Proceeds from Financing Activities                    --                     1
                                                   ----------------    ----------------

Effect of Exchange Rate Changes in Cash                     (47,853)               --
                                                   ----------------    ----------------
Net Change in Cash                                         (265,996)             39,865
                                                   ----------------    ----------------

Cash and Cash Equivalents at Beginning of Period            461,220                --
                                                   ----------------    ----------------
Cash and Cash Equivalents at End of Period         $        195,224    $         39,865
                                                   ----------------    ----------------
</TABLE>

       See the accompanying notes to the unaudited condensed consolidated
                              financial statements.


                                      F-4
<PAGE>

                           CHINA PHARMA HOLDINGS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (unaudited)

NOTE 1 - Basis of Presentation

The accompanying  unaudited condensed consolidated financial statements of China
Pharma  Holdings,  Inc.  (the  "Company")  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 six months ended June 30,  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.

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
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  16  sales  offices  in  China.   Helpson's  other  products  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


                                      F-5
<PAGE>

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
at June 30, 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
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-rata  reduction of the amounts
that otherwise would have been assigned to the non-current assets acquired.

The  following  unaudited  pro forma  information  is  presented  to reflect the
operations of the Company and Helpson on a combined basis as if the  acquisition
of Helpson had been  completed as of January 1, 2005.  The  unaudited  pro forma
information is only  illustrative of the effects of the acquisition and does not
necessarily  reflect the results of operations  that would have resulted had the
acquisition actually occurred on that date.


ACQUISITION
TS ELECTRONICS, INC.

                                                             For the Period from
                                                             January 12, through
                                                                  June 30,
                                                                    2005
--------------------------------------------------------------------------------
                                                                 (unaudited)

Revenue                                                          $     5,816,888
Gross Profit                                                           2,236,358
Net income                                                             1,750,591
Basic earnings per common share                                  $          0.05
--------------------------------------------------------------------------------


Pro forma net  income for the for the six months  ended  June 30,  2005  include
nonrecurring  interest expense of $84,577 resulting from the amortization of the
discount  on the  $3,383,073  promissory  notes  payable to the  former  Helpson
shareholders, which discount was computed based upon an imputed interest rate of
10% per annum.


                                      F-6
<PAGE>

NOTE 3 - Inventory

Inventory consisted of the following:

                                       June 30, 2006         December 31, 2005
                                       -----------------     -----------------
Raw materials                          $       4,670,136     $       4,673,352
Work in process                                  256,458               819,146
Finished goods                                 1,855,886               292,698
                                       -----------------     -----------------
Total Inventory                        $       6,782,480     $       5,785,196
                                       -----------------     -----------------


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
special economic area in the PRC.

NOTE 5 - Short Term Notes Payable

In January  2006,  the Company  converted its dividend  payable into  short-term
notes bearing  interest at a rate of 2.25% per annum.  As of June 30, 2006 these
notes and accrued interest remain outstanding.

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 fluctuations in the foreign
currency  exchange  rate.  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.

In addition,  all of the Company's  revenue is denominated in the PRC's currency
of Renminbi  ("CNY" or "(Y)"),  which must be  converted  into other  currencies
before  remittance  out of the PRC.  Both  the  conversion  of CNY into  foreign
currencies and the remittance of foreign  currencies  abroad require approval of
the PRC government.








                                      F-7
<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,
from those  projected  or implied in such  forward-looking  statements  include,
among other things, (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  maintain  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.


Overview
--------

On June 16, 2005, Onny acquired all of the outstanding common shares of Helpson,
a privately  held  Chinese  joint  venture,  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


                                       1
<PAGE>

license in the PRC as a wholly foreign owned entity.  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 the Company.  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 rh-aFGF,  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:
Year 2005: Helpson launched a new anti-flu medicine: PusenOK.
Year 2003: Helpson gained GMP authentication.
Year 2003: Helpson  named  "the best  enterprise  for storing SARS  medicine" by
Hainan Food and Drug Administration.
Year 2000: Helpson  awarded as  one of 50 best  enterprises  in Hainan by Hainan
Economic and Trade Bureau and Hainan Statistical Bureau.


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.


                                       2
<PAGE>

o    Designated  as the key  technology  project  in  Hainan  in 2003 by  Haikou
     Municipality.


Operations  Analysis For the six months ended June 30, 2006

The  following  table  presents the  operation of the Company for the six months
ended June 30, 2006:

============================== ==============================================
              -                       For the six months ended June 30,2006
------------------------------ ----------------------------------------------
           Revenues             $                     8,709,334
------------------------------ ---- -----------------------------------------
       Cost of revenue                                4,631,549
------------------------------ ---- -----------------------------------------
   Total Operating expenses                            850,482
------------------------------ ---- -----------------------------------------
    Income from operations                            3,227,303
------------------------------ ---- -----------------------------------------
       Interest expense                                (47,898)
------------------------------ ---- -----------------------------------------
          Net income                                  3,401,606
------------------------------ ---- -----------------------------------------
  Basic and diluted earnings                             0.10
       per common share
============================== ==== =========================================


Revenues
--------

Revenues  were  $8,709,334  for the six months ended June 30, 2006.  During this
period,  the  revenues  have been  growing,  the reasons of which  mainly are as
follows:

Firstly,  the new products have quickly  entered the market this year. The above
new products  primarily  include  Gastrodin  injection  and Naproxen  Sodium and
Pesudophedrine  Hydrochloride (or Pusen OK). Secondly,  the distribution network
has spread over the majority of provinces in China. Finally, increased output of
products  ensured a  significant  improvement  in sales since the  manufacturing
capacity in Company has expanded.


Cost of Revenue
---------------

The cost of revenue was $4,631,549, which was 53.2% of the revenue.

Two new  products  we are  introducing  into the market are  expected  to have a
higher profit margin. Accordingly, the cost of revenue to total revenue ratio is
expected to decrease upon an increase in the sales  volume.  Also, in 2006 there
is an  expectation  that costs will be reduced  due to  increased  economies  of


                                       3
<PAGE>

scale,  implementation  of improved  cost  controls and  improved  manufacturing
processes.


Operating expenses
------------------

The  total  operating  expenses  for the six  months  ended  June 30,  2006 were
$850,482, which is 26.35% of income from operations.

The selling  expenses  include the  salaries and benefits of the sales staff and
related transportation  expenses.  Considering the revenue realized, the selling
expenses  were lower than the industry  average  level.  The main reason is that
four major  customers of the Company are  hospitals  and most of products of the
Company are distributed to hospitals through agents.

The general and  administrative  expenses include R&D,  salaries and benefits of
the administrative  staff. Compared with the R&D expenditure in 2005, the amount
of R&D  expenditure for new products  decreased  because most of the researchers
were  employed  from  existing  personnel.  Another  reason for the  decrease in
operating  expenses  was  the  reduction  in the  allowance  of bad  debt as the
collection of old trade receivables, and the amortization expenses of intangible
assets.  Income from  operations was  $3,227,303,  which was 37.06% of the total
revenues.


Interest Expenses
-----------------

Interest expense for six months ended June 30, 2006 was $47,898. Pursuant to the
shareholders' agreement, the dividend payable to shareholders would be converted
into loans if the  dividends  were not paid off by  31/12/2005.  The interest on
such loans  should be recorded as interest  expense at the agreed upon  interest
rate.

The  company  plans to apply for new bank  loans in August of this  year,  which
would result in increased interest expenses in future periods.


Taxation
--------

As a foreign  invested  enterprise as defined  under  Chinese  laws,  Helpson is
entitled to preferential tax treatment,  i.e.,  starting from the year of making
profits,  Helpson  shall be exempt from income tax in the first and second years
and allowed a fifty percent reduction in the third to fifth years.  Since Hainan
Province  is a  special  economic  area,  its  enterprise  income  tax  is  15%.
Therefore, from the third to the fifth year after Helpson begins to make profit,
it shall pay income tax at the rate of half of 15%,  or 7.5%.  As a new  foreign
invested enterprise, the application for the above preferential tax treatment is
expected to be approved  later this year.  Since the  application is still being
processed,  the Company will pay the income taxes with the expectation that they
will be refunded by the Chinese government upon the approval of the application.


                                       4
<PAGE>
<TABLE>
<CAPTION>

Liquidity and capital resource for the six months ended June 30, 2006.

The following  table presents  selected items from the balance sheets as of June
30, 2006, and December 31, 2005

============================= ========================= =============================
            Items                  As of June 30, 2006       As of December 31, 2005
----------------------------- ------------------------- -----------------------------
<S>                           <C>                       <C>
                                        Year 2006                  Year 2005
----------------------------- ------------------------- -----------------------------
  cash and cash equivalents    $          195,224        $           461,220
----------------------------- --- --------------------- --- -------------------------
  trade accounts receivable              9,119,327                  5,709,762
----------------------------- --- --------------------- --- -------------------------
           inventory                     6,782,480                  5,785,196
----------------------------- --- --------------------- --- -------------------------
     Total current assets               18,562,669                 14,465,864
----------------------------- --- --------------------- --- -------------------------
 property and equipment, net             2,806,435                  2,808,342
----------------------------- --- --------------------- --- -------------------------
         TOTAL ASSETS                   21,552,771                 17,501,070
----------------------------- --- --------------------- --- -------------------------
  Total current liabilities              6,309,129                  5,770,926
----------------------------- --- --------------------- --- -------------------------
      TOTAL LIABILITIES                  6,340,354                  5,801,892
----------------------------- --- --------------------- --- -------------------------
  TOTAL SHAREHOLDER'S EQUITY            15,212,417                 11,699,178
============================= === ===================== === =========================
</TABLE>





                                       5
<PAGE>

Analysis of Financial Position
------------------------------

At June 30, 2006,  cash and cash  equivalents of $195,  224, were about 1.05% of
the total current assets.  It decreased by 57.67% compared with cash at December
31, 2005. The net value of property and equipment was $2,806,435,  13.03% of the
total assets.

The trade account receivables were $9,119,327 and the valuation of inventory was
$6,782,480 at June 30, 2006. Trade account receivables and inventory amounted to
42.32% and 31.47% of the total assets  respectively.  The  dramatic  increase of
sales revenues of Helpson resulted in the increase of trade receivables.  A long
collection period of account  receivables also caused the balance to increase by
59.72% compared to December 31, 2005.  Considering the slow collectibility,  the
Company plans to pay more attention to collecting trade account receivables,  to
adopt  cash-sales   orientation  when  selling  products  to  new  customers  or
small-sized customers.

An increase of 17.24% in inventory was primarily due to the special geographical
location of Hainan province, where there is a long distance from other provinces
and would lead to difficulty in transportation of inventory.  Hence, the Company
needs to prepare more  materials in order to satisfy the production  demand.  In
addition, some materials need to be produced by specific  manufacturers,  so the
company has to retain parts of materials for meeting the demands of  production.
Moreover,  a  dramatically  increasing  sale would  result in a rising  trend of
inventory stored.

The total liabilities of $6,340,354  against total assets of $21,552,771  arrive
at a liability ratio of 29.42%.  Likewise, a quick ratio could be obtained that,
if the  inventory  of  $6,782,480  is  excluded  from  total  current  assets of
$18,562,669,  against  current  liabilities of $6,309,129,  then the quick ratio
would be 1.87.  This  indicates  that the Company has capability to be liquid as
necessary.

An increase to $15,212,417 ended up to June 30, 2006 in the shareholder's equity
compared to $11,699,178 at December 31, 2005 is primarily due to the increase of
accumulated  other  comprehensive  income,  and  the  increase  of the  retained
earnings resulting from the growth of sales revenue.


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

As of June 30, 2006, cash and cash equivalents  were up to $195,224,  which were
decreased by 57.67% compared with the beginning  balance of $461,220.  Cash flow
used in operating activities during the first half of 2006 was $70,876. The main
reason for the amount in cash utilized in operating  activities  was an increase
of trade account  receivables with the amount of $3,348,145,  and an increase of
inventory in the amount of $945,068 during the period.


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

Net cash utilized in investing  activities was $147,267 during the first half of
2006.  The  employment  of  net  cash  was  fundamentally  due  to  the  capital
expenditure  amounting  to 144,790 for fixed  assets as net of  disposition.


                                       6
<PAGE>

In  conclusion,  net cash  utilized  for the  first  six  month of year 2006 was
entirely  $265,996.  It was primarily on investing activity with the amount of $
147,267, and on operating activity with the net cash flow of $70,876.


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
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.


                                       7
<PAGE>

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

None.

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.

(b)  Reports on Form 8-K

     On May 4,  2006,  we  filed a report  on form  8-K,  disclosing  that 1) we
     increased the size of the Board of Directors  from one to three and elected
     Zhilin Li and Xinhua Wu as directors to serve until the next annual meeting
     of shareholders and until their successors are elected and qualified; 2) we
     filed a Certificate of Amendment to our Articles of Incorporation  with the
     State of Delaware.  The  amendments  included:  increasing  the  authorized
     common stock from 30,000,000 shares to 60,000,000 shares; changing the name
     to China Pharma Holdings, Inc.; and increasing the number of directors from
     one to not less than three nor more than nine,  with the exact number to be
     fixed  from time to time by vote of the  majority  of the  entire  Board of
     Directors.









                                       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: August 14, 2006                               By: /s/ Zhilin Li
                                                        ------------------------
                                                        Zhilin Li
                                                        Chief Executive Officer,
                                                        President and Director

Dated: August 14, 2006                               By: /s/ Xinhua Wu
                                                        ------------------------
                                                        Xinhua Wu
                                                        Chief Financial Officer,
                                                        and Director















                                       9