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

                                   FORM 10-QSB

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

                  For the Quarterly Period Ended March 31, 2007

[ ] 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)
              (Registrant's telephone number, including area code)
                                   Copies to:

                                   Charles Law
                                King and Wood LLP
                        Suite 1175, 125 S Market Street,
                               San Jose, CA 95113


Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the past 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

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


As of March 31, 2007,  37,228,938  shares of China Pharma Holdings,  Inc. common
stock, par value $0.001 per share, were outstanding.


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

<PAGE>


                           China Pharma Holdings, Inc.

                                TABLE OF CONTENTS



Part I    Financial Information

Item 1.           Financial Statements

                  Condensed Consolidated Balance Sheets - March 31, 2007
                  and December 31, 2006 (unaudited)............................2

                  Condensed Consolidated Statements of Operations
                   and Comprehensive Income- Three months ended
                   March 31, 2007 and 2006 (unaudited).........................3

                  Condensed Consolidated Statements of Cash Flows -
                   Three months ended March 31, 2007 and 2006 (unaudited)......4

                  Notes to Condensed Consolidated Financial
                   Statements (unaudited)......................................5

Item 2.           Management's Discussion and Analysis of Financial
                   Condition and Results of Operations.........................7

Item 3.           Controls and Procedures.....................................15

Part II   Other Information

Item 1            Legal proceedings ..........................................15

Item 2            Unregistered Sales of Equity Securities and
                   Use of Proceeds............................................15

Item 3            Defaults upon senior securities.............................15

Item 4            Submission of matters to a vote of security holders.........16

Item 5            Other information...........................................16

Item 6.           Exhibits....................................................16

Signatures....................................................................17



<PAGE>

<TABLE>
<CAPTION>

Item 1 Financial Statements

                           CHINA PHARMA HOLDINGS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (unaudited)
                                                               March 31,     December 31,
                                                                 2007          2006
                                                              -----------   -----------
<S>                                                           <C>           <C>

ASSETS
Current Assets:
Cash and cash equivalents                                    $ 2,950,719   $   656,441
Trade accounts receivable, less allowance for doubtful
accounts of $2,603,164 and $1,562,494, respectively           13,956,681    12,101,979
Other receivables, less allowance for doubtful
accounts of $29,244 and $27,517, respectively                  1,634,790       355,554
Deferred offering costs                                             --          59,390
Advances to suppliers                                          2,538,017     2,255,877
Inventory                                                     11,476,631    10,277,887
                                                             -----------   -----------
Total Current Assets                                          32,556,838    25,707,128
                                                             -----------   -----------

Property and equipment, net of accumulated depreciation of
$713,323 and $619,649, respectively                            2,660,818     2,725,173
Intangible assets, net of accumulated amortization of
$192,778 and $184,175, respectively                               59,208        65,344
Deferred tax assets                                               16,901        16,736
                                                             -----------   -----------
Total Non-current Assets                                       2,736,927     2,807,253
                                                             -----------   -----------
TOTAL ASSETS                                                 $35,293,765   $28,514,381
                                                             -----------   -----------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable                                       $   735,664   $   477,291
Accrued expenses                                                 133,317       104,216
Accrued taxes payable                                            248,139       167,419
Other payables                                                   112,828       185,096
Advances from customers                                          149,870       141,871
Accounts payable -related parties                                 45,544        22,650
Short-term notes payable                                       6,598,260     6,533,649
                                                             -----------   -----------
Total Current Liabilities                                      8,023,622     7,632,192
                                                             -----------   -----------
Research and development commitments                              32,296        31,980
                                                             -----------   -----------
Total Liabilities                                              8,055,918     7,664,172
                                                             -----------   -----------
Stockholders' Equity:
Common stock, $0.001 par value, 60,000,000 shares
authorized, 37,228,938 and 34,723,056 shares
issued and outstanding, respectively                              37,229        34,723
Additional paid-in capital                                    11,559,656     7,764,979
Foreign currency translation adjustment                          880,287       663,871
Retained earnings                                             14,760,675    12,386,636
                                                             -----------   -----------
Total Stockholders' Equity                                    27,237,847    20,850,209
                                                             -----------   -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $35,293,765   $28,514,381
                                                             -----------   -----------
</TABLE>



See the accompanying notes to the condensed  consolidated  financial statements.



                                       2
<PAGE>
<TABLE>
<CAPTION>

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

                                                                        For the three months
                                                                          ended March 31,
                                                                  ----------------------------

                                                                       2007            2006
                                                                  ------------    ------------
<S>                                                               <C>             <C>

Revenue                                                           $  7,233,768    $  4,732,991
Cost of revenue                                                      3,934,849       2,526,020
                                                                  ------------    ------------

Gross profit                                                         3,298,919       2,206,971
                                                                  ------------    ------------

Operating expenses:
Selling expenses                                                       147,883          88,030
General and administrative                                           1,380,076         264,200
Research and development                                               836,404            --
                                                                  ------------    ------------
Total operating expenses                                             2,364,363         352,230
                                                                  ------------    ------------

Income from operations                                                 934,556       1,854,741
                                                                  ------------    ------------

Non-operating income (expenses):
Interest income                                                         13,775             147
Interest expense                                                       (56,899)        (23,799)
Other income                                                         1,482,607          22,636
                                                                  ------------    ------------
Total non-operating income (expense)                                 1,439,483          (1,016)
                                                                  ------------    ------------


Income before taxes                                                  2,374,039       1,853,725
Income tax expense                                                        --          (234,789)
                                                                  ------------    ------------
Net income                                                        $  2,374,039    $  1,618,936
                                                                  ------------    ------------
Comprehensive income - foreign currency translation adjustments        216,416          59,085
                                                                  ------------    ------------
Comprehensive income                                              $  2,590,455    $  1,678,021
                                                                  ------------    ------------

Basic and diluted earnings per common share                       $       0.07    $       0.05
                                                                  ------------    ------------

Weighted-average common shares outstanding                          36,337,958      34,723,056
                                                                  ------------    ------------
</TABLE>




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




                                       3
<PAGE>


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

                                                 For the three    For the three
                                                 months ended     months ended
                                                   March 31,        March 31,
                                                     2007             2006
                                                   -----------    -----------

Cash Flows from Operating Activities:
Net income                                         $ 2,374,039    $ 1,618,936
Depreciation and amortization                          100,063         85,140
Changes in assets and liabilities:
Trade accounts receivable                           (1,728,236)    (2,541,404)
Other receivables                                   (1,309,181)      (296,864)
Advances to suppliers                                 (258,815)       401,068
Inventory                                           (1,092,813)      (765,072)
Deferred tax assets                                       --          (25,892)
Deferred offering costs                                 59,743           --
Trade accounts payable                                 247,713        728,040
Accrued expenses                                        27,960         16,465
Accrued taxes payable                                   78,756        372,256
Other payables                                          88,814        (44,269)
Advances from customers                                  6,571           (264)
                                                   -----------    -----------
Net Cash Used in Operating Activities               (1,405,386)      (451,860)
                                                   -----------    -----------

Cash Flows from Investing Activities:
Purchase of property and equipment                      (2,360)       (22,074)
Sale of technology                                      38,453           --
Purchase of intangible assets                             --           (2,472)
                                                   -----------    -----------
Net Cash (Used) by Investing Activities                 36,093        (24,546)
                                                   -----------    -----------

Cash Flows from Financing Activities:
Proceeds from sale of common stock and warrants      3,797,183           --
Related party payables/receivables                    (138,860)          --
                                                   -----------    -----------
                                                   -----------    -----------
Net Cash Proceeds from Financing Activities          3,658,323           --
                                                   -----------    -----------

Effect of Exchange Rate Changes on Cash                  5,247         90,110
                                                   -----------    -----------
Net Change in Cash                                   2,294,277       (386,296)
                                                   -----------    -----------
Cash and Cash Equivalents at Beginning of Period       656,441        461,220
                                                   -----------    -----------
Cash and Cash Equivalents at End of Period         $ 2,950,718    $    74,924
                                                   -----------    -----------





See the accompanying notes to the condensed consolidated financial statements.



                                       4
<PAGE>



                           CHINA PHARMA HOLDINGS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007
                                   (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-KSB
report for the year ended December 31, 2006.

These  unaudited  condensed   consolidated   financial  statements  reflect  all
adjustments  (consisting  only of normal  recurring  adjustments)  that,  in the
opinion  of  Management,  are  necessary  to  present  fairly  the  consolidated
financial  position  and  results of  operations  of the Company for the periods
presented.  Operating  results for the three months ended March 31, 2007 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2007.

Organization - Onny Investment  Limited ("Onny") was incorporated in the British
Virgin  Islands on  January  12,  2005 and was a  development  stage  enterprise
through June 15, 2005. On June 16, 2005,  Onny  acquired all of the  outstanding
shares of Hainan  Helpson  Medical &  Biotechnology  Co., Ltd, a privately  held
Chinese joint venture ("Helpson") and emerged from the development stage.

On October 19, 2005, Onny was reorganized as a wholly owned  subsidiary of China
Pharma Holdings, Inc., formerly TS Electronics, (the Company").

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"),  through its marketing  department  located in Hainan
Province. There are also nine other offices, with sales representatives in other
provinces and cities  throughout the PRC.  Helpson's other operating  activities
include biochemical products, health products, and cosmetics.

Accounting  Estimates - The  preparation  of financial  statements in conformity
with accounting  principles  generally  accepted in the United States of America
requires  management to make estimates and assumptions  that affect the reported
amounts of assets and liabilities  and the disclosures of contingent  assets and
liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting periods.  Actual results could differ
from those estimates.

Basic and Diluted  Earnings  per Common  Share - Basic and diluted  earnings per
common share are computed by dividing net income by the weighted-average  number
of  common  shares  outstanding.  As of  March  31,  2007  potentially  dilutive
securities includes warrants outstanding to purchase a total of 1,252,941 shares
of Company  common  stock.  These are not included in the  computation  of fully
diluted  earnings per share as the effect is  anti-dilutive  due to the exercise
price of the warrants exceeding the market price of the stock at March 31, 2007.
There are no anti-dilutive securities outstanding at March 31, 2006.

Recently Issued  Accounting  Pronouncements - In September 2006, the FASB issued
Statement of Financial  Accounting  Standards No. 157, "Fair Value Measurements"
(SFAS 157), which defines fair value, establishes a framework for measuring fair
value in  generally  accepted  accounting  principles  and  requires  additional
disclosures  about  fair  value  measurements.  SFAS  157  aims to  improve  the
consistency and  comparability  of fair value  measurements by creating a single
definition  of fair  value.  The  Statement  emphasizes  that fair  value is not



                                       5
<PAGE>

entity-specific,  but  instead  is a  market-based  measurement  of an  asset or
liability. SFAS 157 upholds the requirements of previously issued pronouncements
concerning fair value  measurements and expands the required  disclosures.  This
Statement  is  effective  for  financial  statements  issued  for  fiscal  years
beginning  after  November 15, 2007,  however  earlier  application is permitted
provided the reporting entity has not yet issued  financial  statements for that
fiscal  year.  The Company  does not believe  that the adoption of SFAS 157 will
have a material effect on its consolidated financial statements.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial  Assets and  Financial  Liabilities",  including  an amendment of FASB
Statement No. 115 SFAS 159.  This  pronouncement  permits  entities to choose to
measure many  financial  instruments  and certain other items at fair value that
are not currently  required to be measured at fair value.  SFAS 159 is effective
as of the beginning of an entity's  first fiscal year that begins after November
15,  2007.  The  impact  of  adopting  SFAS  159 on the  Company's  consolidated
financial statements, if any, has not yet been determined.


NOTE 2 - INVENTORY

Inventory consisted of the following:

                     March 31,   December 31,
                       2007         2006
                   -----------   -----------

Raw materials      $ 9,370,245   $ 8,458,181
Work in progress     2,004,794     1,579,410
Finished goods         101,592       240,296
                   -----------   -----------
Total Inventory    $11,476,631   $10,277,887
                   -----------   -----------

NOTE 3 - INCOME TAXES

The Company  accounts  for its income  taxes in  accordance  with  Statement  of
Financial  Accounting  Standards ("SFAS") No. 109, which requires recognition of
deferred tax 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.

According  to federal law in the Peoples  Republic of China  (PRC),  enterprises
with foreign  investment and foreign  enterprises  doing business in the PRC are
generally subject to federal  enterprise income tax at a rate of 30%.  Effective
at the beginning of 2006 and extending  through  2007,  the Peoples  Republic of
China  granted the company a "tax  holiday" that allows the Company to be exempt
from income taxes for the first two profitable years. This "tax holiday" further
allows  the  Company  to be exempt  from 50% of income  taxes  during  the third
through the fifth  years.  The reduced  tax rate for 2008  through  2010 is 15%.
Additionally, Hainan province is considered a `developing economic region' which
has a reduced  statutory tax rate of 15%, which results in a tax holiday rate of
7.5% during the third through the fifth years of profitability.

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


NOTE 4 - NOTES PAYABLE

Short Term Notes Payable During the third quarter of 2006, the Company  borrowed
a total of $2,196,113 from a bank. The loans bear interest with a range of 6.45%
to 6.77%, principal and accrued interest are due July and August of 2007 and are
collateralized by land use rights, machinery and equipment.



                                       6
<PAGE>


Short Term Notes Payable to Former  Shareholders  In January  2006,  the Company
converted  its dividend  payable of  $4,402,147  into  short-term  notes bearing
interest  at a rate of 2.25% per annum.  As of March 31,  2007  these  notes and
accrued interest remain outstanding.

NOTE 5 - STOCKHOLDERS' EQUITY

On February 1, 2007, the Company  completed an offering of Units priced at $1.70
per Unit  consisting  of one share of  Company  common  stock  and a warrant  to
purchase  one-half of a share of Company  common  stock at an exercise  price of
$2.38 per share.  The Company received gross proceeds in the aggregate amount of
$4,259,900.  The net proceeds,  after deduction of related offering  expenses of
$462,717  amounted to  $3,797,183.  The Company issued an aggregate of 2,505,882
shares of common stock and issued  three-year  warrants to purchase an aggregate
of 1,252,941  shares of Company's common stock to 17 accredited  investors.  The
proceeds  were  allocated  to the  warrants  based  upon  their  fair  value  or
$2,010,219,  and the  balance of the  proceeds  was  allocated  to the shares of
common stock. The fair value of the warrants, determined using the Black-Scholes
Option Pricing Model, was calculated using the following assumptions:  risk free
interest rate of 4.80%,  expected  dividend yield of 0%, expected  volatility of
124.39% and an expected life of 3 years.

The common  shares and the shares  underlying  the  warrants  have  registration
rights, and the Company is required to file a registration  statement  including
said  shares with the  Securities  and  Exchange  Commission.  The  registration
statement was filed on March 30, 2007 within the 60 day period prescribed by the
registration rights agreement.

NOTE 6 - TRANSFERS OF TECHNOLOGY

During the first quarter of 2007,  the Company  entered into  agreements to sell
certain pharmaceutical  formulas presently in the research and development stage
with two separate  transactions to third parties for an aggregate sales price of
$1,479,792  which is recorded as other income in the  accompanying  statement of
operations and comprehensive  income.  Cost of the technology  includes transfer
(sales)  tax of  $73,990,  which  has  been  recorded  as  part of  general  and
administrative  expenses  and  $836,404,  which  is  recorded  as  research  and
development expense.  Together, the two contracts included a combined deposit of
$38,453 paid upon signing of the  contract,  $739,984  payable upon  transfer of
technological documentation and $701,292 payable upon completion of the transfer
of the  technological  process.  A receivable  for $1,441,276 has been booked in
other receivables.

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.


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

The following  discussion should be read in conjunction with China Pharma Inc.'s
consolidated  financial  statements and related notes included elsewhere in this
Current Report on Form 10-QSB.


                                       7
<PAGE>


This  filing  contains  forward-looking  statements.  The  words  "anticipated,"
"believe," "expect",  "plan," "intend," "seek," "estimate,"  "project," "could,"
"may,"  and  similar  expressions  are  intended  to  identify   forward-looking
statements. These statements include, among others, information regarding future
operations,  future  capital  expenditures,  and  future  net  cash  flow.  Such
statements  reflect  China  Pharma  management's  current  views with respect to
future events and  financial  performance  and involve risks and  uncertainties,
including  but  not  limited  to  changes  in  general   economic  and  business
conditions,  changes in foreign,  political,  social,  and economic  conditions,
regulatory initiatives and compliance with governmental regulations, the ability
to increase  market share,  and various other matters,  many of which are beyond
China  Pharma's  control.  Should  one or more of these  risks or  uncertainties
occur, or should underlying  assumptions  prove to be incorrect,  actual results
may vary materially and adversely from those anticipated, believed, estimated or
otherwise indicated. Consequently, all of the forward-looking statements made in
this filing are  qualified by these  cautionary  statements  and there can be no
assurance of the actual results or developments.

I. The three months ended March 31, 2007 in brief

During the first  quarter of 2007,  China Pharma  continued to show sound growth
and  outstanding  financial  performance.  For the three  months ended March 31,
2007, the Company's total revenue increased by over 53% to a record high of $7.2
million compared to $4.7 million for the three months ended March 31, 2006. This
rapid  growth  was due to  increased  sales of  existing  products  and sales of
products  that  were  developed  during  the  first  quarter  of 2007.  This was
consistent  with  China  Pharma's  strategy  of  launching  new  products  in an
increasingly competitive market and exploring potential domestic markets.

The  financial  performance  for the three months ended March 31, 2007  improved
compared to the three months ended March 31, 2006.  Gross profit increased 49.5%
to $3.2  million and net income,  not  including  foreign  currency  translation
adjustment, increased 46.6% to $2.3 million. This growth was attributable to the
development of new product processes and new marketing activities.  In addition,
China Pharma's income increased due to new drug technologies.

For the three months ended March 31, 2007,  earnings per common share  increased
40% to US$0.07  per share  compared  to US$0.05  per share for the three  months
ended March 31, 2006.  China Pharma  started  working  closely with  biological,
chemical and medical  institutions to deliver more functional  products tailored
to the demands of the  end-user.  Management's  goals are  centered on achieving
stable profit  growth.  Accordingly,  we operate the business based on strategic
principles, which have proven successful.  Thoroughly exploring the potential in
the pharmaceutical field is the key to our success.

We are also concerned with corporate  governance as a modern enterprise.  In the
near future,  we will  establish a more  systematic  and long  lasting  internal
controls   process  for   prospective   development   for  the  benefit  of  our
shareholders.


II. Business Overview

China Pharma is primarily engaged in the research, development, manufacture, and
marketing  of  pharmaceutical  and  nutritional  supplements.  During  2006,  we
launched two new products, Ozagrel Sodium for Injection and Gastrodin Injection.



                                       8
<PAGE>

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 have  launched and will continue to launch a variety of
biological medicine, including the injected hepatocyte growth-promoting factors,
which are expected to fuel additional growth beyond that of Neurotrophicpeptide.

One of our products, Buflomedil Hydrochloride (including raw material, injection
and troche) has been recognized in the following ways:

o    Designated  as the key  technology  project  in Hainan  in 2003 by  Hai'kou
     Municipality.

o    Received  the best  commercialized  technology  award in  Hainan in 2004 by
     Hainan Scientific and Technological Result Examination Committee.

o    Awarded 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.

In  2003,  Helpson  attained  GMP  authentication  and the  prize  as the  "best
enterprise  for  supporting  SARS  medicine"  awarded  by  Hainan  Food and Drug
Administration,  demonstrating  our  industry  leadership.  For the three months
ended  March  31,  2007,  our  products  have been  distributed  to more than 29
provinces, sovereignties, and autonomous regions around China. Our products have
been sold in more than 20 provinces,  sovereignties,  and autonomous regions. We
have 16 sales offices and approximately 550 proxy agents throughout the PRC. The
main  channels we use to deliver our products are as follows:  (1)  Distribution
system  (Proxy  Agentsy);  (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.

Onny Investment  Limited ("Onny") was incorporated in the British Virgin Islands
on January 12, 2005 and was a  development  stage  enterprise  through  June 15,
2005. On June 16, 2005,  Onny acquired all of the  outstanding  shares of Hainan
Helpson Medical & Biotechnology Co., Ltd, a privately held Chinese joint venture
("Helpson")  and emerged from the  development  stage. On October 19, 2005, Onny
was  reorganized as a wholly owned  subsidiary of China Pharma  Holdings,  Inc.,
formerly TS Electronics, (the Company").

Additionally,  on February 1, 2007, China Pharma fulfilled a fund raising equity
offering of units priced at $1.70 each  consisting  of one share of common stock
and a warrant to  purchase  one-half  of a share of common  stock at an exercise
price of $2.38 per share.  China Pharma received gross proceeds in the aggregate
amount of $4,259,900.  The net proceeds,  after  deducting the related  offering
expenses  of $462,717  amounted to  $3,797,183.  In total,  we issued  2,505,882
shares of common stock and issued  three-year  warrants to purchase an aggregate
of 1,252,941 shares of common stock to 17 accredited investors.



                                       9
<PAGE>

III. Trend in the Market.

Studies  show that due to the  expansion  and aging of the  world's  population,
ever-growing  numbers  of people  have  age-related  diseases,  such as  cancer,
Alzheimer's  disease,  diabetes and  rheumatoid  arthritis.  These diseases have
already become prevalent,  especially in developed areas. In a growing and aging
population, people need to find more effective methods of treatment.

Patient  empowerment  has been a factor  in  high-quality  healthcare.  Many are
better  informed about the importance of health issues and medical  advancement.
Naturally,  people  today are  demanding  greater  care and access to the latest
medical procedures and medicines.

Helpson views this market trend as an opportunity. However, the best way to take
advantage of this  opportunity  is to identify our  business  risks  beforehand.
Generally speaking, there are three aspects of risks:

o    External Risk
In recent years, the Chinese medical system has been reformed,  resulting in the
State  Department's  establishment  of a  basic  medical  insurance  system  for
employees. Considering the social environment and the governmental policy in the
pharmaceutical industry in PRC, a large increase in sales can be expected due to
local  government  involvement in the industry.  Competition will also be strong
across the industry  overall.  Currently,  the company's  existing  products are
competitive  in  the  market  and  possess  growth  potential.  However,  from a
long-term  perspective,  some major western medicine  producers are also seeking
Chinese market share. This will make the company face strong  competition in the
natural medicine market sector.

o    Operation Risk
One of the major  uncertainties in the Company is the purchase of raw materials.
Raw materials are primarily affected by the geographical,  island environment of
Hainan  Province.  Because of high  transportation  costs and the need to supply
production requirements,  the Company has to store large amounts of inventory to
maintain consistent production levels. . In addition, partial raw materials need
to be specially  ordered  which further  increases the need to store  inventory.
Finally,  due to the increasing  sales, the Company must store a large volume of
packaging material.

o    Foreign Currency Risk
Substantially  all of our  operations  are  conducted  in the PRC. Our sales and
purchases are conducted  within the PRC in Chinese  Renminbi.  As a result,  the
effect of the exchange  rate  fluctuation  would  inevitably be considered to be
material to our business operations.

All of our revenues and expenses are accounted  for in Renminbi.  But we use the
United States dollar for financial  reporting  purposes.  Conversion of Renminbi
into foreign  currencies  is regulated by the People's  Bank of China  through a
unified  floating  exchange rate system.  Although the PRC government has stated
its intention to support the value of the Renminbi,  there could be no assurance
that such exchange rate will not become volatile again or that the Renminbi will
not devalue  significantly  against the U.S. dollar.  Exchange rate fluctuations
may  adversely  affect the value,  in  U.S.dollar  terms,  of our net assets and
income derived from its operations in the PRC.

IV. Analysis to the financial performance

The following  table presents the operations of the Company for the three months
ended March 31, 2007 and March 31, 2006; both are denominated in U.S. dollars.



                                       10
<PAGE>

<TABLE>
<CAPTION>

                                                                               For the three months
                                                                                  ended March 31,



                                                                    As a                                 As a            Comparative
                                                                 percentage                           percentage          variance
                                                  2007           of revenue           2006            of revenue          percentage
                                             -------------      -------------     -------------       -------------      -----------
<S>                                          <C>                <C>               <C>                 <C>                <C>

Revenue                                       $ 7,233,768          100.00%        $ 4,732,991           100.00%              52.84%
Cost of revenue                                 3,934,849           54.40%          2,526,020            53.37%              55.77%
                                             -------------                       -------------

Gross profit                                    3,298,919           45.60%          2,206,971            46.63%              49.48%
                                             -------------                       -------------

Operating expenses:
Selling expenses                                  147,883            2.04%             88,030             1.86%              67.99%
General and administrative                      1,380,076           19.08%            264,200             5.58%             422.36%
Research and development                          836,404           11.56%                  -
                                             -------------                       -------------
Total operating expenses                        2,364,363           32.69%            352,230             7.44%             571.26%
                                             -------------                       -------------

Income from operations                            934,556           12.92%          1,854,741            39.19%             -49.61%
                                             -------------                       -------------

Non-operating income (expenses):
Interest income                                    13,775            0.19%                147             0.00%            9270.75%
Interest expense                                  (56,899)          -0.79%            (23,799)           -0.50%             139.08%
Other income                                    1,482,607           20.50%             22,636             0.48%            6449.77%
                                             -------------                       -------------
Total non-operating income (expense)            1,439,483           19.90%             (1,016)           -0.02%         -141781.40%
                                             -------------                       -------------
                                                                     0.00%
Income before taxes                             2,374,039           32.82%          1,853,725            39.17%              28.07%
Income tax expense                                      -            0.00%           (234,789)           -4.96%            -100.00%
                                             -------------                       -------------
Net income                                    $ 2,374,039           32.82%        $ 1,618,936            34.21%              46.64%
                                             -------------                       -------------
Comprehensive income -
 foreign currency translation adjustments         216,416            2.99%             59,085             1.25%             266.28%
                                             -------------                       -------------
Comprehensive income                          $ 2,590,455           35.81%        $ 1,678,021            35.45%              54.38%
                                             -------------               -------------


</TABLE>




Revenues

Revenues  increased  to  approximately  $7.2  million for the three months ended
March 31, 2007 as compared to  approximately  $4.7  million for the three months
ended March 31, 2006. This represents an increase of approximately  $2.5 million
or 52.8%.  This  increase  was due largely to the  development  and sales of new
products  for the three  months  ended March 31,  2007.  The products of Ozagrel
Sodium for Injection and Gastrodin  Injection comprised a large portion of total
sales. Marketing for these new products has also further increased market share.
In addition,  a distribution  network has been further developed over a majority
of the 29  provinces  or  regions in China.  Further,  with the  improvement  of
production  capacity,  a significant increase in sales has been made possible by
an increased yield capacity, both in new and existing products.

Cost of revenue

Cost of revenue for the three months ended March 31, 2007 was approximately $3.9
million or 54.5% of revenues  as  compared to $2.5  million or 53.4% of revenues
for the three months ended March 31, 2006.  The increased  cost of sales was due
primarily to the increased revenue for the three months ended March 31, 2007.



                                       11
<PAGE>


Gross profit

Gross  profit for the three  months  ended March 31, 2007 was  approximately  $3
million or 45.6% of revenues  as  compared to $2.2  million or 46.6% of revenues
for the three  months  ended March 31,  2006.  The gross profit for three months
ended  March 31,  2007 was  higher  than that for  corresponding  period by $1.1
million,  representing a 49.5%  increase.  The increase was primarily due to the
higher revenue for the three months ended March 31, 2007.

Selling Expenses

Selling  expenses  have  increased  due to an  increase  in  distribution  cost.
Relative  to  the  total  operating  expenses,  selling  expenses  approximately
accounted for 6.3% of total operating  expenses for the three months ended March
31, 2007.

General & Administrative Expenses

General and  administrative  expenses  increased from approximately $0.3 million
for the three months ended March 31, 2006 to approximately  $1.3 million for the
three months ended March 31, 2007. Two major factors caused the increase. Due to
the nature of  pharmaceutical  industry in China,  the collection cycle of trade
receivables is relatively longer.  Accordingly,  an increased bad debt provision
has been accrued with the  increase of trade  receivables.  For the three months
ended March 31 2007, the amount accrued for bad debt provision was $1 million as
opposed to a small amount accrued for the three months ended March 31, 2006. For
the three months ended March 31 2007,  R&D expense was comprised of a variety of
pharmaceutical  products  such  as  Cardiovascular  and  Cerebrovascular  drugs,
Natural Herb drugs, Diuretics drugs, Liver protecting drugs, inhibitor drugs and
others.  In the next two to three years,  our company will continue  focusing on
R&D for sustainable development of product varieties.

Income from operations

There was a decrease in income from operations from  approximately  $1.8 million
for the three months ended March 31, 2006 to approximately  $0.9 million for the
three  months ended March 31,  2007.  Although  there was an increase in revenue
from the  development  of new  products,  the longer  collection  cycle of trade
receivables  mentioned  above  offset the  increase in revenue and resulted in a
decrease in income from operations.

Other income

The amount of other  income  increased  dramatically  for the three months ended
March 31, 2007. It was approximately $1,482,609 or 26.5% of revenue which was an
increase of 6,450% compared to $22,636 or 0.5% of revenues for the corresponding
period in 2006.  This large  increase  occured  because the Company sold two new
drug  technologies  to third parties after the Company  considered  that selling
these  specific new drug  technologies  would be more  effective  than  pursuing
government approval and production development.

Income tax expense

For the three months ended March 31, 2007,  the company had no tax expense.  The
People's  Republic of China granted the company a "tax holiday" that allowed the
Company to be exempt from income taxes in 2007.



                                       12
<PAGE>


Net Income

Net income, excluding the effect of foreign currency translation, was $2,374,039
for the three  months  ended March 31,  2007.  It was 46.5%  higher than the net
income  of  $1,618,936   for  the  three  months  ended  March  31,  2006.   The
corresponding growth in operations resulting in a sales increase caused the cost
of sales and related  expenses as a percentage  of total sales to increase.  Net
income was further increased due to the transfer of new drug technologies.

V. Analysis of the  financial  position:  Liquidity  and Capital  Resource As of
March 31, 2007, the company had cash and cash  equivalents  of $2,950,719.  This
represents  a 350%  increase  over the  December  31, 2006  balance of $656,441.
During the three  months ended March 31 2007,  the proceeds  from sale of common
stock and warrants  increased by approximately  $3,797,183.  (Figure 2)


                                                   For the three  For the three
                                                    months ended   months ended
                                                     March 31,      March 31,
                                                        2007           2006
                                                  --------------  -------------



Cash Flows from Operating Activities:              $(1,405,386)   $  (451,860)
Cash Flows from Investing Activities:                   36,093        (24,546)
Cash Flows from Financing Activities:                3,658,323           --

Effect of Exchange Rate Changes on Cash                  5,247         90,110
Cash and Cash Equivalents at Beginning of Period       656,441        461,220
Cash and Cash Equivalents at End of Period         $ 2,950,718    $    74,924




Net cash used in operating  activities was $1,405,386 for the three months ended
March 31,  2007,  nearly three times more than the $ 451,860 used for the period
ended at March 31,  2006.  This large  increase was due to the increase in other
receivable and inventory.

Net cash used in investing  activities,  for purchase of property and  equipment
decreased to $2,360 at the end of March 2007.

Net cash  proceeds for  financing  activities  has increased to $3,797,183 as of
March 31,  2007.  The increase was  primarily  due to the proceeds  from sale of
common stock and warrants.

VI. Off-Balance Sheet Arrangements

There were no off-balance sheet arrangements in the Company.

VII. Commitments

At March 31, 2007, we had no material commitments for capital expenditures other
than for those expenditures incurred in the ordinary course of business.

VIII. Recently Enacted Accounting Pronouncements

On January 1, 2006, we adopted SFAS No. 151,  Inventory  Costs - An Amendment of
ARB No. 43, Chapter 4 ("SFAS 151").  SFAS 151 amends the guidance in ARB No. 43,
Chapter 4, Inventory Pricing,  to clarify the accounting for abnormal amounts of
idle facility expense,  freight, handling costs, and wasted material (spoilage).
Among other  provisions,  the new rule requires that items such as idle facility



                                       13
<PAGE>

expense, excessive spoilage, double freight, and re-handling costs be recognized
as current-period charges.  Additionally,  SFAS 151 requires that the allocation
of fixed  production  overhead to the costs of conversion be based on the normal
capacity of the production facilities.  The effects of adoption of SFAS 151 were
not material.

On January 1, 2006, we adopted SFAS No. 123 (revised 2004),  Share-Based Payment
("SFAS  123R"),   which  revises  SFAS  No.  123,   Accounting  for  Stock-Based
Compensation.  SFAS 123R also superseded APB 25,  Accounting for Stock Issued to
Employees,  and amends SFAS No. 95,  Statement  of Cash Flows.  Under SFAS 123R,
share-based  payments  to  employees,  including  the fair  value of  grants  of
employee  stock options,  are  recognized in the income  statement at their fair
value, generally over the option vesting period. The effects of adoption of SFAS
123R were not material.

In  December  2004,  the FASB issued SFAS No.  153,  Exchanges  of  Non-monetary
Assets--An  Amendment  of  APB  Opinion  No.  29,  Accounting  for  Non-monetary
Transactions  ("SFAS 153").  SFAS 153  eliminated  the exception from fair value
measurement for non-monetary exchanges of similar productive assets in paragraph
21(b) of APB Opinion  No. 29,  Accounting  for  Non-monetary  Transactions,  and
replaced  it  with an  exception  for  exchanges  that  do not  have  commercial
substance.  SFAS 153  specifies  that a  non-monetary  exchange  has  commercial
substance  if the  future  cash  flows of the  entity  are  expected  to  change
significantly  as a result of the exchange.  The effects of adoption of SFAS 153
were not material.

In June  2005,  the FASB  issued  SFAS No.  154,  Accounting  Changes  and Error
Corrections,  a replacement of APB Opinion No. 20, Accounting Changes,  and FASB
No. 3, Reporting Accounting Changes in Interim Financial  Statements.  Statement
154 applies to all voluntary  changes in accounting  principle,  and changes the
requirements  for  accounting  for  and  reporting  of a  change  in  accounting
principle.  Statement 154 requires  retrospective  application to prior periods'
financial  statements of a voluntary change in accounting principle unless it is
impracticable.  It is effective for accounting changes and corrections of errors
made in fiscal years beginning after December 15, 2005.  Earlier  application is
permitted for  accounting  changes and  corrections  of errors made occurring in
fiscal years  beginning  after June 1, 2005. The effects of adoption of SFAS 154
were not material.

In June 2005, the FASB Emerging  Issues Task Force ("EITF")  reached a consensus
on  Issue   No.05-6,   Determining   the   Amortization   Period  for  Leasehold
Improvements.  The guidance requires that leasehold  improvements  acquired in a
business  combination  or purchased  subsequent  to the  inception of a lease be
amortized  over the  lesser  of the  useful  life of the  assets  or a term that
includes  renewals  that are  reasonably  assured  at the  date of the  business
combination or purchase.  The guidance is effective for periods  beginning after
June 29, 2005. The effects of adoption of EITF No. 05-6 were not material.

In February  2006,  the FASB issued SFAS No. 155,  Accounting for Certain Hybrid
Financial  Instruments -- an amendment of FASB  Statements No. 133 and 140 (SFAS
155).  SFAS 155 amends SFAS No. 133,  Accounting for Derivative  Instruments and
Hedging  Activities and SFAS No. 140,  Accounting for Transfers and Servicing of
Financial   Assets   and    Extinguishments   of   Liabilities,    and   related
interpretations.  SFAS 155  permits  fair  value  remeasurement  for any  hybrid
financial  instrument that contains an embedded  derivative that otherwise would
require bifurcation and clarifies which interest-only  strips and principal-only
strips are not subject to  recognition as  liabilities.  SFAS 155 eliminates the



                                       14
<PAGE>

prohibition  on a  qualifying  special-purpose  entity from holding a derivative
financial  instrument that pertains to a beneficial  interest other than another
derivative financial  instrument.  SFAS 155 is effective for our company for all
financial  instruments  acquired or issued beginning January 1, 2007. The impact
of  adoption  of  this  statement  on  the  Company's   consolidated   financial
statements, if any, has not yet been determined.

In March  2006,  the FASB  issued  SFAS No. 156,  Accounting  for  Servicing  of
Financial  Assets - an amendment of FASB Statement No. 140 (SFAS 140).  SFAS 156
amends SFAS 140 Accounting  for Transfers and Servicing of Financial  Assets and
Extinguishments of Liabilities and related interpretations. SFAS 156 requires an
entity to  recognize  a  servicing  asset or  servicing  liability  each time it
undertakes  an  obligation  to service a financial  asset.  It also requires all
separately recognized servicing assets and servicing liabilities to be initially
measured at fair value, if practicable. SFAS 156 permits an entity to use either
the amortization  method or the fair value measurement  method for each class of
separately  recognized servicing assets and servicing  liabilities.  SFAS 156 is
effective for our company as of January 1, 2007.  The impact of adoption of this
statement on our  consolidated  financial  statements,  if any, has not yet been
determined.

IX. Conclusion

The overall performance during the three months ended March 31, 2007 was
outstanding. As a public company in the pharmaceutical industry, we focused on
product innovation. In order to create products that are innovative and tailored
to the end user, we must concentrate on R&D. As a result, China Pharma will
continue to actively pursue the development and distribution of high-quality
products to the market.


                           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

On February 1, 2007,  we completed an offering  pursuant to a  Subscription  and
Registration Rights Agreement with 17 accredited  investors (the "Investors") in
connection with a private  placement of 2,505,882 shares of the Company's common
stock  at $1.7  per  share  (the  "Second  Round  Financing").  Pursuant  to the
Agreement,  the  Investors  also  received  three-year  warrants  to purchase an
aggregate of 1,252,941 shares of Company's common stock at $2.38 per share. This
issuance  was made in reliance on Section  4(2) of the Act and was made  without
general solicitation or advertising.

Item 3 - Defaults upon Senior Securities

Not Applicable.



                                       15
<PAGE>


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

None.

Item 5 - Other Information

None.

Item 6 - Exhibits

(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.








                                       16
<PAGE>



                                   SIGNATURES


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



China Pharma Holdings, Inc.

Dated: May 15, 2007                                     By: /s/ Zhilin Li
                                                        -----------------------
                                                        Zhilin Li
                                                        Chief Executive Officer,
                                                        President and Director


Dated: May 15, 2007                                     By: /s/ Xinhua Wu
                                                        -----------------------
                                                        Xinhua Wu
                                                        Chief Financial Officer,
                                                        and Director









                                       17
<PAGE>