----

----

| 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   o(Do not check if a smaller reporting company) | Smaller reporting company  x                 |

----

| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | FINANCIAL INFORMATION                                                                       | Page     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Financial Statements.                                                                       | 1   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Balance Sheets                                                       |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | As of September 30, 2010 and December 31, 2009 (Unaudited)                                  | 2   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Statements of Operations and Comprehensive Income                    |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | For the Three Months and Nine Months Ended September 30, 2010 and 2009 (Unaudited)          | 3   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Statements of Cash Flows                                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)                           | 4   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Notes to Condensed Consolidated Financial Statements (Unaudited)                            | 5   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 12  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Quantitative and Qualitative Disclosures about Market Risk                                  | 23  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Controls and Procedures.                                                                    | 23  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | OTHER INFORMATION                                                                           |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Other Information                                                                           | 24  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Exhibits                                                                                    | 25  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Signatures                                                                                                                                           | 26                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |
| Exhibits/Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                        |

----

----

| CHINA PHARMA HOLDINGS, INC.                                     |   |
|-----------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                           |   |
| (Unaudited)                                                     |   |
|                                                            |   |   |   |   |   |   |
|                                                            |   | September 30, |   |   | December 31, |   |
|                                                            |   | 2010 |   |   | 2009 |   |
| ASSETS                                                          |   |   |   |   |   |   |
| Current Assets:                                                 |   |   |   |   |   |   |
| Cash and cash equivalents                                       |   | $ | 4,561,432 |   |   | $ | 3,634,753 |   |
| Trade accounts receivable, less allowance for doubtful          |   |   |   |   |   |   |   |   |
| accounts of $2,976,077 and $2,718,358, respectively             |   |   | 56,792,742 |   |   |   | 51,238,339 |   |
| Other receivables, less allowance for doubtful                  |   |   |   |   |   |   |   |   |
| accounts of $21,880 and $3,556, respectively                    |   |   | 132,280 |   |   |   | 78,525 |   |
| Advances to suppliers                                           |   |   | 3,358,113 |   |   |   | 1,798,446 |   |
| Inventory                                                       |   |   | 19,861,057 |   |   |   | 14,233,073 |   |
| Deferred tax assets                                             |   |   | 523,840 |   |   |   | 319,820 |   |
| Total Current Assets                                            |   |   | 85,229,464 |   |   |   | 71,302,956 |   |
| Advances for purchases of property and equipment and            |   |   |   |   |   |   |   |   |
| intangible assets                                               |   |   | 3,574,496 |   |   |   | 3,599,949 |   |
| Property and equipment, net of accumulated depreciation of      |   |   |   |   |   |   |   |   |
| $2,661,208 and $2,020,462, respectively                         |   |   | 6,394,538 |   |   |   | 6,705,873 |   |
| Intangible assets, net of accumulated amortization of           |   |   |   |   |   |   |   |   |
| $2,082,188 and $1,359,048, respectively                         |   |   | 26,342,406 |   |   |   | 19,332,284 |   |
| TOTAL ASSETS                                                    |   | $ | 121,540,904 |   |   | $ | 100,941,062 |   |
|                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                            |   |   |   |   |   |   |   |   |
| Current Liabilities:                                            |   |   |   |   |   |   |   |   |
| Trade accounts payable                                          |   | $ | 4,400,332 |   |   | $ | 3,957,923 |   |
| Accrued expenses                                                |   |   | 55,043 |   |   |   | 47,435 |   |
| Accrued taxes payable                                           |   |   | 2,180,851 |   |   |   | 1,528,691 |   |
| Other payables                                                  |   |   | 75,560 |   |   |   | 58,191 |   |
| Advances from customers                                         |   |   | 1,030,766 |   |   |   | 1,037,693 |   |
| Other payables - related parties                                |   |   | 303,644 |   |   |   | 75,741 |   |
| Short-term notes payable                                        |   |   | 2,985,921 |   |   |   | 3,802,726 |   |
| Total Current Liabilities                                       |   |   | 11,032,117 |   |   |   | 10,508,400 |   |
| Long-term research and development commitments                  |   |   | - |   |   |   | 36,565 |   |
| Total Liabilities                                               |   |   | 11,032,117 |   |   |   | 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               |   |   |   |   |   |   |   |   |
| authorized; 43,393,642 shares and 42,308,350 shares             |   |   |   |   |   |   |   |   |
| outstanding, respectively                                       |   |   | 43,393 |   |   |   | 42,308 |   |
| Additional paid-in capital                                      |   |   | 24,041,616 |   |   |   | 21,178,114 |   |
| Retained earnings                                               |   |   | 78,328,698 |   |   |   | 63,272,868 |   |
| Accumulated foreign currency translation adjustment             |   |   | 8,095,080 |   |   |   | 5,902,807 |   |
| Total Stockholders' Equity                                      |   |   | 110,508,787 |   |   |   | 90,396,097 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      |   | $ | 121,540,904 |   |   | $ | 100,941,062 |   |

----

| CHINA PHARMA HOLDINGS, INC.                     |   |
|-------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |   |
| AND COMPREHENSIVE INCOME                        |   |
| (Unaudited)                                     |   |
|                                            |   |   |   |   |   |   |
|                                            |   | For the Three Months Ended |   |   | For the Nine Months Ended |   |
|                                            |   | September 30, |   |   | September 30, |   |
|                                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenue                                         |   | $ | 18,680,390 |   |   | $ | 15,522,953 |   |   | $ | 50,414,254 |   |   | $ | 42,116,290 |   |
| Cost of revenue                                 |   |   | 11,055,254 |   |   |   | 8,979,083 |   |   |   | 29,610,973 |   |   |   | 23,724,155 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                    |   |   | 7,625,136 |   |   |   | 6,543,870 |   |   |   | 20,803,281 |   |   |   | 18,392,135 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                |   |   | 449,295 |   |   |   | 807,231 |   |   |   | 1,653,763 |   |   |   | 2,013,915 |   |
| General and administrative expenses             |   |   | 873,157 |   |   |   | 521,676 |   |   |   | 2,420,412 |   |   |   | 1,563,330 |   |
| Bad debt expense (benefit)                      |   |   | 107,186 |   |   |   | (2,836,495 | ) |   |   | 215,707 |   |   |   | (2,101,710 | ) |
| Total operating expenses                        |   |   | 1,429,638 |   |   |   | (1,507,588 | ) |   |   | 4,289,882 |   |   |   | 1,475,535 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government subsidy income                       |   |   | - |   |   |   | - |   |   |   | 465,663 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                          |   |   | 6,195,498 |   |   |   | 8,051,458 |   |   |   | 16,979,062 |   |   |   | 16,916,600 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                 |   |   | 1,147 |   |   |   | 3,956 |   |   |   | 13,305 |   |   |   | 25,265 |   |
| Interest expense                                |   |   | (37,667 | ) |   |   | (24,436 | ) |   |   | (139,788 | ) |   |   | (103,143 | ) |
| Net other income (expense)                      |   |   | (36,520 | ) |   |   | (20,480 | ) |   |   | (126,483 | ) |   |   | (77,878 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                      |   |   | 6,158,978 |   |   |   | 8,030,978 |   |   |   | 16,852,579 |   |   |   | 16,838,722 |   |
| Income tax expense                              |   |   | (674,051 | ) |   |   | (867,750 | ) |   |   | (1,796,749 | ) |   |   | (1,711,703 | ) |
| Net income                                      |   |   | 5,484,927 |   |   |   | 7,163,228 |   |   |   | 15,055,830 |   |   |   | 15,127,019 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income - foreign currency   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| translation adjustment                          |   |   | 1,774,575 |   |   |   | 85,896 |   |   |   | 2,192,273 |   |   |   | 179,085 |   |
| Comprehensive income                            |   | $ | 7,259,502 |   |   | $ | 7,249,124 |   |   | $ | 17,248,103 |   |   | $ | 15,306,104 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per Share:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   | $ | 0.13 |   |   | $ | 0.17 |   |   | $ | 0.35 |   |   | $ | 0.36 |   |
| Diluted                                         |   | $ | 0.13 |   |   | $ | 0.17 |   |   | $ | 0.35 |   |   | $ | 0.36 |   |

----

| CHINA PHARMA HOLDINGS, INC.                      |   |
|--------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  |   |
| (Unaudited)                                      |   |
|                                             |   |   |   |   |   |   |
|                                             |   | For the Nine Months Ended |   |
|                                             |   | September 30, |   |
|                                             |   | 2010 |   |   | 2009 |   |
| Cash Flows from Operating Activities:            |   |   |   |   |   |   |
| Net income                                       |   | $ | 15,055,830 |   |   | $ | 15,127,019 |   |
| Depreciation and amortization                    |   |   | 1,271,251 |   |   |   | 986,310 |   |
| Stock based compensation                         |   |   | 281,587 |   |   |   | - |   |
| Bad debt expense (benefit)                       |   |   | 215,707 |   |   |   | (2,101,710 | ) |
| Deferred tax assets                              |   |   | (193,953 | ) |   |   | 210,171 |   |
| Changes in assets and liabilities:               |   |   |   |   |   |   |   |   |
| Trade accounts receivable                        |   |   | (4,610,175 | ) |   |   | (10,841,625 | ) |
| Other receivables                                |   |   | (69,154 | ) |   |   | 82,949 |   |
| Advances to suppliers                            |   |   | (1,495,898 | ) |   |   | 1,170,103 |   |
| Inventory                                        |   |   | (5,239,859 | ) |   |   | (1,742,681 | ) |
| Trade accounts payable                           |   |   | 277,275 |   |   |   | 2,772,775 |   |
| Accrued expenses                                 |   |   | (30,168 | ) |   |   | (11,339 | ) |
| Accrued taxes payable                            |   |   | 609,646 |   |   |   | 393,724 |   |
| Other payables                                   |   |   | 15,972 |   |   |   | 233,155 |   |
| Advances from customers                          |   |   | (27,982 | ) |   |   | 109,238 |   |
| Net Cash Provided by Operating Activities        |   |   | 6,060,079 |   |   |   | 6,388,089 |   |
|                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:            |   |   |   |   |   |   |   |   |
| Advances for purchases of property and equipment |   |   |   |   |   |   |   |   |
| and intangible assets                            |   |   | (1,615,399 | ) |   |   | (2,921,715 | ) |
| Purchase of property and equipment               |   |   | (219,904 | ) |   |   | (255,273 | ) |
| Purchase of intangible assets                    |   |   | (5,311,961 | ) |   |   | (7,621,781 | ) |
| Net Cash Used in Investing Activities            |   |   | (7,147,264 | ) |   |   | (10,798,769 | ) |
|                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activity:              |   |   |   |   |   |   |   |   |
| Proceeds from issuance of notes payable          |   |   | 2,934,100 |   |   |   | 3,799,775 |   |
| Payments of notes payable                        |   |   | (3,814,330 | ) |   |   | (2,484,468 | ) |
| Borrowing from a related party                   |   |   | 227,903 |   |   |   | - |   |
| Proceeds from exercise of warrants               |   |   | 2,583,000 |   |   |   | - |   |
| Net Cash Provided by Financing Activity          |   |   | 1,930,673 |   |   |   | 1,315,307 |   |
|                                             |   |   |   |   |   |   |   |   |
| Effect of Exchange Rate Changes on Cash          |   |   | 83,191 |   |   |   | 13,001 |   |
| Net Increase (Decrease) in Cash                  |   |   | 926,679 |   |   |   | (3,082,372 | ) |
| Cash and Cash Equivalents at Beginning of Period |   |   | 3,634,753 |   |   |   | 6,927,149 |   |
| Cash and Cash Equivalents at End of Period       |   | $ | 4,561,432 |   |   | $ | 3,844,777 |   |
|                                             |   |   |   |   |   |   |   |   |
| Supplemental Cash Flow Information:              |   |   |   |   |   |   |   |   |
| Cash paid for interest                           |   | $ | 139,494 |   |   | $ | 103,143 |   |
| Cash paid for income taxes                       |   |   | 1,889,810 |   |   |   | 1,413,306 |   |

----

----

|                                               |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|----------------------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                               |   | September 30,              |       |   | September 30,             |   |
|                                               |   | 2010                       |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                               |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   | $                          | 5,484,927  |   |                      | $      | 7,163,228 |   |   | $ | 15,055,830 |   |   | $ | 15,127,019 |   |
|                                               |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted-average common shares outstanding   |   |                       | 43,393,642 |   |                      |   | 42,278,938 |   |   |   | 43,306,075 |   |   |   | 42,278,938 |   |
| Effect of dilutive securities:                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                                           |   |                       | -          |   |                      |   | - |   |   |   | 186,203 |   |   |   | - |   |
| Options                                            |   |                       | 13,533     |   |                      |   | - |   |   |   | 11,052 |   |   |   | - |   |
|                                               |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted-average common shares outstanding |   |                       | 43,407,175 |   |                      |   | 42,278,938 |   |   |   | 43,503,330 |   |   |   | 42,278,938 |   |
|                                               |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                           |   | $                          | 0.13       |   |                      | $      | 0.17 |   |   | $ | 0.35 |   |   | $ | 0.36 |   |
|                                               |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                         |   | $                          | 0.13       |   |                      | $      | 0.17 |   |   | $ | 0.35 |   |   | $ | 0.36 |   |

|                                                      |   | For the Three Months Ended |      |   | For the Nine Months Ended |   |
|-----------------------------------------------------------|--------|----------------------------|-----------|--------|---------------------------|--------|
|                                                      |   | September 30,              |      |   | September 30,             |   |
|                                                      |   | 2010                       |      |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Warrants with exercise prices of $3.00 to $3.80 per share |   |                       | 1,916,666 |   |                      |   | 2,969,607 |   |   |   | 736,111 |   |   |   | 2,969,607 |   |
| Options with an exercise price of $3.47 per share         |   |                       | 200,000   |   |                      |   | - |   |   |   | 133,333 |   |   |   | - |   |
| Total                                                     |   |                       | 2,116,666 |   |                      |   | 2,969,607 |   |   |   | 869,444 |   |   |   | 2,969,607 |   |

----

|            |   | September 30, |       |   | December 31, |   |
|-----------------|--------|---------------|------------|--------|--------------|--------|
|            |   | 2010          |       |   | 2009         |   |
| Raw materials   |   | $             | 11,988,237 |   |         | $      | 9,353,076 |   |
| Finished goods  |   |          | 7,872,820  |   |         |   | 4,879,997 |   |
| Total Inventory |   | $             | 19,861,057 |   |         | $      | 14,233,073 |   |

|                           |   | September 30, |       |   | December 31, |   |
|--------------------------------|--------|---------------|------------|--------|--------------|--------|
|                           |   | 2010          |       |   | 2009         |   |
| Permit of land use             |   | $             | 420,519    |   |         | $      | 411,963 |   |
| Building                       |   |          | 2,275,741  |   |         |   | 2,229,442 |   |
| Plant, machinery and equipment |   |          | 5,651,132  |   |         |   | 5,223,872 |   |
| Motor vehicle                  |   |          | 137,933    |   |         |   | 135,127 |   |
| Office equipment               |   |          | 123,209    |   |         |   | 109,440 |   |
| Construction in progress       |   |          | 447,212    |   |         |   | 616,491 |   |
| Total                          |   |          | 9,055,746  |   |         |   | 8,726,335 |   |
| Less: accumulated depreciation |   |          | (2,661,208 | )      |         |   | (2,020,462 | ) |
| Property and Equipment, net    |   | $             | 6,394,538  |   |         | $      | 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               |   | 3-5                |

----

----

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

|                   |   | For the Three Months |    |   | For the Nine Months |   |
|------------------------|--------|----------------------|---------|--------|---------------------|--------|
|                   |   | Ended September 30,  |    |   | Ended September 30, |   |
|                   |   | 2010                 |    |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Current                |   | $                    | 722,452 |   |                | $      | 962,310 |   |   | $ | 1,990,702 |   |   | $ | 1,922,025 |   |
| Deferred               |   |                 | (48,401 | )      |                |   | (94,560 | ) |   |   | (193,953 | ) |   |   | (210,322 | ) |
| Net Income Tax Expense |   | $                    | 674,051 |   |                | $      | 867,750 |   |   | $ | 1,796,749 |   |   | $ | 1,711,703 |   |

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| ·   | During the third quarter of 2010, we completed the Phase I clinical trials of our novel cephalosporin-based combination antibiotic. In Phase I, the clinical trials focused on the study of clinical pharmacology as well as the evaluation of safety on the human body, through observing tolerance and pharmacokinetics to provide support for dosage and drug delivery design. Phase II of the trial has commenced. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We completed the clinical trials earlier this year for Candesartan, a front-line drug therapy we developed 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 the SFDA. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We continue to receive positive feedback from patients during our clinical trial of Rosuvastatin, a generic form of Crestor we are developing. The majority of the patients in the clinical trial have completed the treatment cycle, and the final phase of the trial is near completion. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                        |   | Three Months Ended September 30th |       |   |   |   |       | Nine Months Ended September 30th |   |   |   |   |
|---------------------------------------------|--------|-----------------------------------|------------|--------|--------|--------|------------|----------------------------------|--------|--------|--------|--------|
|                                        |   | 2010                              |       |   | 2009   |   |       | % Chg                            |   |   | 2010   |   |   | 2009 |   |   | % Chg |   |
| Revenue                                     |   | $                                 | 18,680,390 |   |   | $      | 15,522,953 |                             |   |   | 20     | %      |   | $ | 50,414,254 |   |   | $ | 42,116,290 |   |   |   | 20 | % |
| Cost of Revenue                             |   |                              | 11,055,254 |   |   |   | 8,979,083  |                             |   |   | 23     | %      |   |   | 29,610,973 |   |   |   | 23,724,155 |   |   |   | 25 | % |
| Gross Profit                                |   |                              | 7,625,136  |   |   |   | 6,543,870  |                             |   |   | 17     | %      |   |   | 20,803,281 |   |   |   | 18,392,135 |   |   |   | 13 | % |
| Selling Expenses                            |   |                              | 449,295    |   |   |   | 807,231    |                             |   |   | -44    | %      |   |   | 1,653,763 |   |   |   | 2,013,915 |   |   |   | -18 | % |
| General and Admin Expenses                  |   |                              | 873,157    |   |   |   | 521,676    |                             |   |   | 67     | %      |   |   | 2,420,412 |   |   |   | 1,563,330 |   |   |   | 55 | % |
| Bad Debt Expense (Benefit)                  |   |                              | 107,186    |   |   |   | (2,836,495 | )                                |   |   |   |   |   |   | 215,707 |   |   |   | (2,101,710 | ) |   |   |   |   |
| Income from Operations                      |   |                              | 6,195,498  |   |   |   | 8,051,458  |                             |   |   | -23    | %      |   |   | 16,979,062 |   |   |   | 16,916,600 |   |   |   | 0 | % |
| Other Expenses                              |   |                              | (36,520    | )      |   |   | (20,480    | )                                |   |   |   |   |   |   | (126,483 | ) |   |   | (77,878 | ) |   |   |   |   |
| Income Tax Expense                          |   |                              | 674,051    |   |   |   | 867,750    |                             |   |   | -22    | %      |   |   | 1,796,749 |   |   |   | 1,711,703 |   |   |   | 5 | % |
| Net Income                                  |   | $                                 | 5,484,927  |   |   | $      | 7,163,228  |                             |   |   | -23    | %      |   | $ | 15,055,830 |   |   | $ | 15,127,019 |   |   |   | 0 | % |
| Basic Net Income per Share                  |   | $                                 | 0.13       |   |   | $      | 0.17       |                             |   |   | -25    | %      |   | $ | 0.35 |   |   | $ | 0.36 |   |   |   | -3 | % |
| Basic Weighted Average Shares Outstanding   |   |                              | 43,393,642 |   |   |   | 42,278,938 |                             |   |   |   |   |   |   | 43,306,075 |   |   |   | 42,278,938 |   |   |   |   |   |
| Diluted Net Income per Share                |   | $                                 | 0.13       |   |   | $      | 0.17       |                             |   |   | -25    | %      |   | $ | 0.35 |   |   | $ | 0.36 |   |   |   | -3 | % |
| Diluted Weighted Average Shares Outstanding |   |                              | 43,407,175 |   |   |   | 42,278,938 |                             |   |   |   |   |   |   | 43,503,330 |   |   |   | 42,278,938 |   |   |   |   |   |

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| Product Category                       | Three Months Ended September 30 | Net Change | % Change |
|----------------------------------------|--------------------------------------|------------|----------|
|                                   | 2010                                 | 2009       |     |   |
| CNS Cerebral & Cardio Vascular     | $ 5.9                                | $ 5.6      | $ 0.3    | 5% |
| Anti-Viro/ Infection & Respiratory | $ 6.0                                | $ 6.1      | -$ 0.1   | -2% |
| Digestive Diseases                     | $ 2.4                                | $ 1.6      | $ 0.8    | 51% |
| Other                                  | $ 4.5                                | $ 2.3      | $ 2.2    | 100% |

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| China Pharma Holdings, Inc.                                                                                                           |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| Reconciliation of Non-GAAP Adjusted Net Income and Basic and Diluted EPS                                                              |   |
| (Unaudited, $ in thousand except share and per share data)                                                                            |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   | For the Three Months Ended September 30, |   |   | For the Nine Months Ended September 30, |   |
|                                                                                                                                  |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                  |   | Net income |   | Basic and Diluted EPS |   | Net income |   | Basic and Diluted EPS |   | Net income |   | Basic and Diluted EPS |   | Net income |   | Basic and Diluted EPS |   |
| Adjusted net income and basic and diluted EPS, excluding approximate after-tax impact of one-time bad debt estimate change (Non-GAAP) |   | $ | 5,485 |   |   | $ | 0.13 |   |   | $ | 4,263 |   |   | $ | 0.10 |   |   | $ | 15,056 |   |   | $ | 0.35 |   |   | $ | 12,569 |   |   | $ | 0.30 |   |
| Approximate after-tax impact of one-time bad debt estimate change (a)                                                                 |   |   | - |   |   |   | - |   |   |   | 2,900 |   |   |   | 0.07 |   |   |   | - |   |   |   | - |   |   |   | 2,558 |   |   |   | 0.06 |   |
| Net income and basic and diluted EPS as reported (GAAP)                                                                               |   | $ | 5,485 |   |   | $ | 0.13 |   |   | $ | 7,163 |   |   | $ | 0.17 |   |   | $ | 15,056 |   |   | $ | 0.35 |   |   | $ | 15,127 |   |   | $ | 0.36 |   |

| (a) Represents the approximate amount that net income or EPS of the corresponding periods would have changed by if bad debt estimate had been changed prior to the beginning of 2009. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Product Category                       | Nine Months Ended September30 | Net Change | % Change |
|----------------------------------------|-------------------------------|------------|----------|
|                                   | 2010                          | 2009       |     |   |
| CNS Cerebral & Cardio Vascular     | $16.1                         | $16.0      | $ 0.0    | 0% |
| Anti-Viro/ Infection & Respiratory | $17.6                         | $15.4      | $ 2.2    | 14% |
| Digestive Diseases                     | $ 6.3                         | $3.0       | $ 3.3    | 112% |
| Other                                  | $ 10.4                        | $ 7.7      | $2.7     | 35% |

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|                                      |   | Nine Months Ended September 30 |       |
|-------------------------------------------|--------|--------------------------------|------------|
|                                      |   | 2010                           |       |   | 2009 |   |
| Net Cash Provided by Operating Activities |   | $                              | 6,060,079  |   |   | $ | 6,388,088 |   |
| Net Cash Used in Investing Activities     |   |                           | (7,147,264 | ) |   |   | (10,798,769 | ) |
| Net Cash Provided by Financing Activities |   |                           | 1,930,673  |   |   |   | 1,315,307 |   |
| Effect of Exchange Rate change on Cash    |   |                           | 83,191     |   |   |   | 13,001 |   |
| Cash & Equivalent Beginning Balance   |   |                           | 3,634,753  |   |   |   | 6,927,149 |   |
| Cash & Equivalent Ending Balance      |   | $                              | 4,561,432  |   |   | $ | 3,844,776 |   |

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|                          | CHINA PHARMA HOLDINGS, INC. |                                                                                                                                                                                                                                                                                                                            |
|-------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                        |                                                                                                                                                                                                                                                                                                                            |   |
| Date: November 10, 2010  | By:                         | /s/ Zhilin Li                                                    |   |
|                          |                        | Name: Zhilin Li                                                                                                                                                                                                                                                                                                                 |   |
|                          |                        | Title: President and Chief Executive Officer                                                                                                                                                                                                                                                                                    |   |
|                          |                        | (principal executive officer)                                                                                                                                                                                                                                                                                                   |   |

| Date: November 10,  2010  | By:    | /s/ Frank Waung                                                    |   |
|------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                     |   | Name: Frank Waung                                                                                                                                                                                                                                                                                                                 |   |
|                                     |   | Title: Chief Financial Officer                                                                                                                                                                                                                                                                                               |   |
|                                     |   | (principal financial officer and principal accounting officer)                                                                                                                                                                                                                                                               |

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