----

----

| 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                 |

----

| ·   | for the three month period ended March 31, 2010 and 2009, included in the March 2010 Form 10-Q; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | for the three- and six-month periods ended June 30, 2010 and 2009, included in its Quarterly Report on Form 10-Q filed with the SEC on August 9, 2010 (the “June 2010 Form 10-Q”); and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | for the three- and nine-month periods ended September 30, 2010 and 2009, included in its Quarterly Report on Form 10-Q filed with the SEC on November 10, 2010 (the “September 2010 Form 10-Q”); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | file this Amended Form 10-Q, which contains restated financial information for the three-month periods ended March 31, 2010 and 2009 reflecting the corrections made in response to these accounting errors; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | file an amendment to the June 2010 Form 10-Q, which will contain restated financial information for the three- and six-month periods ended June 30, 2010 and 2009 reflecting the corrections made in response to these accounting errors; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | file an amendment to the September 2010 Form 10-Q, which will contain restated financial information for the three- and nine-month periods ended September 30, 2010 and 2009 reflecting the corrections made in response to these accounting errors. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   | As Previously |       |   |        |   |       | As       |   |
|--------------------------------------------|--------|---------------|------------|--------|-------------|--------|------------|----------|--------|
| Balance Sheet Amounts                      |   | Reported      |       |   | Restatement |   |       | Restated |   |
| March 31, 2010                             |   |          |       |   |        |   |       |     |   |
| Derivative warrant liability               |   | $             | -          |   |        | $      | 1,964,644  |     |   | $ | 1,964,644 |   |
| Total liabilities                          |   |          | 10,817,658 |   |        |   | 1,964,644  |     |   |   | 12,782,302 |   |
| Additional paid-in capital                 |   |          | 23,807,653 |   |        |   | (852,957   | )        |   |   | 22,954,696 |   |
| Retained earnings                          |   |          | 67,567,522 |   |        |   | (1,111,687 | )        |   |   | 66,455,835 |   |
| Total stockholders' equity                 |   |          | 97,355,820 |   |        |   | (1,964,644 | )        |   |   | 95,391,176 |   |
| December 31, 2009                          |   |          |       |   |        |   |       |     |   |   |   |   |
| Derivative warrant liability               |   | $             | -          |   |        | $      | 2,523,148  |     |   | $ | 2,523,148 |   |
| Total liabilities                          |   |          | 10,544,965 |   |        |   | 2,523,148  |     |   |   | 13,068,113 |   |
| Additional paid-in capital                 |   |          | 21,178,114 |   |        |   | (852,957   | )        |   |   | 20,325,157 |   |
| Retained earnings                          |   |          | 63,272,868 |   |        |   | (1,670,191 | )        |   |   | 61,602,677 |   |
| Total stockholders' equity                 |   |          | 90,396,097 |   |        |   | (2,523,148 | )        |   |   | 87,872,949 |   |
| March 31, 2009                             |   |          |       |   |        |   |       |     |   |   |   |   |
| Current assets                             |   | $             | 62,953,051 |   |        | $      | -          |     |   | $ | 62,953,051 |   |
| Total assets                               |   |          | 80,426,249 |   |        |   | -          |     |   |   | 80,426,249 |   |
| Current liabilities                        |   |          | 6,756,537  |   |        |   | -          |     |   |   | 6,756,537 |   |
| Research and development commitments       |   |          | 36,520     |   |        |   | -          |     |   |   | 36,520 |   |
| Derivative warrant liability               |   |          | -          |   |        |   | 529,374    |     |   |   | 529,374 |   |
| Total liabilities                          |   |          | 6,793,057  |   |        |   | 529,374    |     |   |   | 7,322,431 |   |
| Common stock                               |   |          | 42,279     |   |        |   | -          |     |   |   | 42,279 |   |
| Additional paid-in capital                 |   |          | 21,066,338 |   |        |   | (852,957   | )        |   |   | 20,213,381 |   |
| Retained earnings                          |   |          | 46,717,466 |   |        |   | 323,583    |     |   |   | 47,041,049 |   |
| Foreign currency translation adjustment    |   |          | 5,807,109  |   |        |   | -          |     |   |   | 5,807,109 |   |
| Total stockholders' equity                 |   |          | 73,633,192 |   |        |   | (529,374   | )        |   |   | 73,103,818 |   |
| Total liabilities and stockholders' equity |   |          | 80,426,249 |   |        |   | -          |     |   |   | 80,426,249 |   |

----

| Statement of Operations and               |   | As Previously |      |   |        |   |     | As       |   |
|-------------------------------------------|--------|---------------|-----------|--------|-------------|--------|----------|----------|--------|
| Comprehensive Income Amounts              |   | Reported      |      |   | Restatement |   |     | Restated |   |
| For the Three Months Ended March 31, 2010 |   |          |      |   |        |   |     |     |   |
| Derivative gain                           |   | $             | -         |   |        | $      | 558,504  |     |   | $ | 558,504 |   |
| Net other income (expense)                |   |          | (43,733   | )      |        |   | 558,504  |     |   |   | 514,771 |   |
| Income before income taxes                |   |          | 4,783,933 |   |        |   | 558,504  |     |   |   | 5,342,437 |   |
| Net income                                |   |          | 4,294,654 |   |        |   | 558,504  |     |   |   | 4,853,158 |   |
| Comprehensive income                      |   |          | 4,309,099 |   |        |   | 558,504  |     |   |   | 4,867,603 |   |
| Basic and diluted earnings per share      |   | $             | 0.10      |   |        | $      | 0.01     |     |   | $ | 0.11 |   |
| For the Three Months Ended March 31, 2009 |   |          |      |   |        |   |     |     |   |   |   |   |
| Derivative loss                           |   | $             | -         |   |        | $      | (265,797 | )        |   | $ | (265,797 | ) |
| Net other expense                         |   |          | (27,647   | )      |        |   | (265,797 | )        |   |   | (293,444 | ) |
| Income before income taxes                |   |          | 4,035,369 |   |        |   | (265,797 | )        |   |   | 3,769,572 |   |
| Net income                                |   |          | 3,677,647 |   |        |   | (265,797 | )        |   |   | 3,411,850 |   |
| Comprehensive income                      |   |          | 3,765,138 |   |        |   | (265,797 | )        |   |   | 3,499,341 |   |
| Basic and diluted earnings per share      |   | $             | 0.09      |   |        | $      | (0.01    | )        |   | $ | 0.08 |   |
|                                      |   |          |      |   |        |   |     |     |   |   |   |   |
|                                      |   |          |      |   |        |   |     |     |   |   |   |   |
|                                      |   | As Previously |      |   |        |   |     |     | As     |   |
| Statement of Cash Flows Amounts           |   | Reported      |      |   | Restatement |   |     | Restated |   |
| For the Three Months Ended March 31, 2010 |   |          |      |   |        |   |     |     |   |   |   |   |
| Net income                                |   | $             | 4,294,654 |   |        | $      | 558,504  |     |   | $ | 4,853,158 |   |
| Derivative loss                           |   |          | -         |   |        |   | (558,504 | )        |   |   | (558,504 | ) |
| For the Three Months Ended March 31, 2009 |   |          |      |   |        |   |     |     |   |   |   |   |
| Net income                                |   | $             | 3,677,647 |   |        | $      | (265,797 | )        |   | $ | 3,411,850 |   |
| Derivative loss                           |   |          | -         |   |        |   | 265,797  |     |   |   | 265,797 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------|--------|
| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | FINANCIAL INFORMATION                                                                       |     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Financial Statements.                                                                       |  1  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Balance Sheets                                                       |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | As of March 31, 2010 and December 31, 2009 (Unaudited)                                      |  2  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Statements of Operations and Comprehensive Income                    |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | For the Three Months Ended March 31, 2010 and 2009 (Unaudited)                              |  3  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Condensed Consolidated Statements of Cash Flows                                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | For the Three Months Ended March 31, 2010 and 2009 (Unaudited)                              |  4  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Notes to Consolidated Financial Statements                                                  |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | March 31, 2010 and 2009 (Unaudited)                                                         |  5  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Management’s Discussion and Analysis of Financial Condition and Results of Operations |  14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Quantitative and Qualitative Disclosures about Market Risk                             |  21 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Controls and Procedures.                                                                    |  22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | OTHER INFORMATION                                                                           |  22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Exhibits                                                                                    | 22       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |     |
| Signatures                                                                                                                                           |  23                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                        |
| Exhibits/Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  24                                                                                    |

----

----

| CHINA PHARMA HOLDINGS, INC.                                       |   |
|-------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                             |   |
| (Unaudited)                                                       |   |
|                                                              |   |   |   |   |   |   |
|                                                              |   | March 31, |   |   | December 31, |   |
|                                                              |   | 2010 |   |   | 2009 |   |
|                                                              |   | (As Restated - Note 1) |   |
| ASSETS                                                            |   |   |   |   |   |   |
| Current Assets:                                                   |   |   |   |   |   |   |
| Cash and cash equivalents                                         |   | $ | 4,784,582 |   |   | $ | 3,634,753 |   |
| Trade accounts receivable, less allowance for doubtful            |   |   |   |   |   |   |   |   |
| accounts of $2,783,291 and $2,718,358, respectively               |   |   | 52,470,644 |   |   |   | 51,238,339 |   |
| Other receivables, less allowance for doubtful                    |   |   |   |   |   |   |   |   |
| accounts of $9,965 and $3,556, respectively                       |   |   | 84,747 |   |   |   | 78,525 |   |
| Advances to suppliers                                             |   |   | 2,836,250 |   |   |   | 1,798,446 |   |
| Inventory                                                         |   |   | 15,839,393 |   |   |   | 14,233,073 |   |
| Deferred tax assets                                               |   |   | 392,210 |   |   |   | 319,820 |   |
| Total Current Assets                                              |   |   | 76,407,826 |   |   |   | 71,302,956 |   |
| Advances for purchases of property and equipment and              |   |   |   |   |   |   |   |   |
| intangible assets                                                 |   |   | 4,259,792 |   |   |   | 3,599,949 |   |
| Property and equipment, net of accumulated depreciation of        |   |   |   |   |   |   |   |   |
| $2,213,723 and $2,020,462, respectively                           |   |   | 6,537,960 |   |   |   | 6,705,873 |   |
| Intangible assets, net of accumulated amortization of             |   |   |   |   |   |   |   |   |
| $1,586,229 and $1,359,048, respectively                           |   |   | 20,947,900 |   |   |   | 19,332,284 |   |
| TOTAL ASSETS                                                      |   | $ | 108,153,478 |   |   | $ | 100,941,062 |   |
|                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                              |   |   |   |   |   |   |   |   |
| Current Liabilities:                                              |   |   |   |   |   |   |   |   |
| Trade accounts payable                                            |   | $ | 4,243,181 |   |   | $ | 3,957,923 |   |
| Accrued expenses                                                  |   |   | 47,749 |   |   |   | 47,435 |   |
| Accrued taxes payable                                             |   |   | 1,684,337 |   |   |   | 1,528,691 |   |
| Other payables                                                    |   |   | 60,242 |   |   |   | 58,191 |   |
| Advances from customers                                           |   |   | 903,070 |   |   |   | 1,037,693 |   |
| Other payables - related parties                                  |   |   | 75,741 |   |   |   | 75,741 |   |
| Short-term notes payable                                          |   |   | 3,803,338 |   |   |   | 3,802,726 |   |
| Total Current Liabilities                                         |   |   | 10,817,658 |   |   |   | 10,508,400 |   |
| Long-term research and development commitments                    |   |   | - |   |   |   | 36,565 |   |
| Derivative warrant liability                                      |   |   | 1,964,644 |   |   |   | 2,523,148 |   |
| Total Liabilities                                                 |   |   | 12,782,302 |   |   |   | 13,068,113 |   |
| 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;     |   |   |   |   |   |   |   |   |
| 43,393,644 shares and 42,308,350 shares outstanding, respectively |   |   | 43,393 |   |   |   | 42,308 |   |
| Additional paid-in capital                                        |   |   | 22,954,696 |   |   |   | 20,325,157 |   |
| Retained earnings                                                 |   |   | 66,455,835 |   |   |   | 61,602,677 |   |
| Accumulated foreign currency translation adjustment               |   |   | 5,917,252 |   |   |   | 5,902,807 |   |
| Total Stockholders' Equity                                        |   |   | 95,371,176 |   |   |   | 87,872,949 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        |   | $ | 108,153,478 |   |   | $ | 100,941,062 |   |

----

| CHINA PHARMA HOLDINGS, INC.                     |   |
|-------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |   |
| AND COMPREHENSIVE INCOME                        |   |
| (Unaudited)                                     |   |
|                                            |   | For the Three Months Ended |   |
|                                            |   | March 31, |   |
|                                            |   | 2010 |   |   | 2009 |   |
|                                            |   | (As Restated - Note 1) |   |
| Revenue                                         |   | $ | 15,102,510 |   |   | $ | 12,991,982 |   |
| Cost of revenue                                 |   |   | 8,968,302 |   |   |   | 7,063,227 |   |
|                                            |   |   |   |   |   |   |   |   |
| Gross profit                                    |   |   | 6,134,208 |   |   |   | 5,928,755 |   |
|                                            |   |   |   |   |   |   |   |   |
| Operating expenses:                             |   |   |   |   |   |   |   |   |
| Selling expenses                                |   |   | 582,888 |   |   |   | 602,760 |   |
| General and administrative expenses             |   |   | 652,748 |   |   |   | 488,047 |   |
| Bad debt expense                                |   |   | 70,906 |   |   |   | 774,932 |   |
| Total operating expenses                        |   |   | 1,306,542 |   |   |   | 1,865,739 |   |
|                                            |   |   |   |   |   |   |   |   |
| Income from operations                          |   |   | 4,827,666 |   |   |   | 4,063,016 |   |
|                                            |   |   |   |   |   |   |   |   |
| Other income (expense):                         |   |   |   |   |   |   |   |   |
| Interest income                                 |   |   | 6,757 |   |   |   | 10,589 |   |
| Interest expense                                |   |   | (50,490 | ) |   |   | (38,236 | ) |
| Derivative gain (loss)                          |   |   | 558,504 |   |   |   | (265,797 | ) |
| Net other income (expense)                      |   |   | 514,771 |   |   |   | (293,444 | ) |
|                                            |   |   |   |   |   |   |   |   |
| Income before income taxes                      |   |   | 5,342,437 |   |   |   | 3,769,572 |   |
| Income tax expense                              |   |   | (489,279 | ) |   |   | (357,722 | ) |
| Net income                                      |   |   | 4,853,158 |   |   |   | 3,411,850 |   |
|                                            |   |   |   |   |   |   |   |   |
| Other comprehensive income - foreign currency   |   |   |   |   |   |   |   |   |
| translation adjustment                          |   |   | 14,445 |   |   |   | 87,491 |   |
| Comprehensive income                            |   | $ | 4,867,603 |   |   | $ | 3,499,341 |   |
|                                            |   |   |   |   |   |   |   |   |
| Earnings per Share:                             |   |   |   |   |   |   |   |   |
| Basic                                           |   | $ | 0.11 |   |   | $ | 0.08 |   |
| Diluted                                         |   | $ | 0.11 |   |   | $ | 0.08 |   |

----

| CHINA PHARMA HOLDINGS, INC.                      |   |
|--------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  |   |
| (Unaudited)                                      |   |
|                                             |   |   |   |   |   |   |
|                                             |   | For the Three Months Ended |   |
|                                             |   | March 31, |   |
|                                             |   | 2010 |   |   | 2009 |   |
|                                             |   | (As Restated - Note 1) |   |
| Cash Flows from Operating Activities:            |   |   |   |   |   |   |
| Net income                                       |   | $ | 4,853,158 |   |   | $ | 3,411,850 |   |
| Depreciation and amortization                    |   |   | 419,903 |   |   |   | 258,021 |   |
| Stock based compensation                         |   |   | 47,624 |   |   |   | - |   |
| Derivative loss (gain)                           |   |   | (558,504 | ) |   |   | 265,797 |   |
| Changes in assets and liabilities:               |   |   |   |   |   |   |   |   |
| Trade accounts receivable                        |   |   | (1,224,072 | ) |   |   | (4,992,389 | ) |
| Other receivables                                |   |   | (6,209 | ) |   |   | (46,549 | ) |
| Advances to suppliers                            |   |   | (1,037,525 | ) |   |   | 1,211,004 |   |
| Inventory                                        |   |   | (1,604,046 | ) |   |   | (49,800 | ) |
| Deferred tax assets                              |   |   | (72,339 | ) |   |   | (122,965 | ) |
| Trade accounts payable                           |   |   | 318,952 |   |   |   | 1,174,251 |   |
| Accrued expenses                                 |   |   | (36,265 | ) |   |   | (7,723 | ) |
| Accrued taxes payable                            |   |   | 155,402 |   |   |   | (15,659 | ) |
| Other payables                                   |   |   | 2,043 |   |   |   | 2,004 |   |
| Advances from customers                          |   |   | (134,791 | ) |   |   | 29,292 |   |
| Net Cash Provided by Operating Activities        |   |   | 1,123,331 |   |   |   | 1,117,134 |   |
|                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:            |   |   |   |   |   |   |   |   |
| Advances for purchases of property and equipment |   |   |   |   |   |   |   |   |
| and intangible assets                            |   |   | (1,291,216 | ) |   |   | (2,376,453 | ) |
| Purchase of property and equipment               |   |   | (58,272 | ) |   |   | (523,476 | ) |
| Purchase of intangible assets                    |   |   | (1,207,541 | ) |   |   | - |   |
| Net Cash Used in Investing Activities            |   |   | (2,557,029 | ) |   |   | (2,899,929 | ) |
|                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activity:              |   |   |   |   |   |   |   |   |
| Proceeds from exercise of warrants               |   |   | 2,583,000 |   |   |   | - |   |
| Net Cash Provided by Financing Activity          |   |   | 2,583,000 |   |   |   | - |   |
|                                             |   |   |   |   |   |   |   |   |
| Effect of Exchange Rate Changes on Cash          |   |   | 527 |   |   |   | 7,527 |   |
| Net Increase (Decrease) in Cash                  |   |   | 1,149,829 |   |   |   | (1,775,268 | ) |
| Cash and Cash Equivalents at Beginning of Period |   |   | 3,634,753 |   |   |   | 6,927,149 |   |
| Cash and Cash Equivalents at End of Period       |   | $ | 4,784,582 |   |   | $ | 5,151,881 |   |
|                                             |   |   |   |   |   |   |   |   |
| Supplemental Cash Flow Information:              |   |   |   |   |   |   |   |   |
| Cash paid for interest                           |   | $ | 50,490 |   |   | $ | 38,236 |   |
| Cash paid for income taxes                       |   |   | 376,727 |   |   |   | 560,935 |   |

----

----

|                                               |   | For the Three Months |       |
|----------------------------------------------------|--------|----------------------|------------|
|                                               |   | Ended March 31,      |       |
|                                               |   | 2010                 |       |   | 2009 |   |
|                                               |   | (As Restated)        |       |
| Net income                                         |   | $                    | 4,853,158  |   |   | $ | 3,411,850 |   |
| Basic weighted-average common shares outstanding   |   |                 | 43,128,023 |   |   |   | 42,278,938 |   |
| Effect of dilutive securities:                     |   |                 |       |   |   |   |   |   |
| Warrants                                           |   |                 | 464,817    |   |   |   | - |   |
| Options                                            |   |                 | 9,421      |   |   |   | - |   |
| Diluted weighted-average common shares outstanding |   |                 | 43,602,261 |   |   |   | 42,278,938 |   |
| Basic earnings per share                           |   | $                    | 0.11       |   |   | $ | 0.08 |   |
| Diluted earnings per share                         |   | $                    | 0.11       |   |   | $ | 0.08 |   |

----

|                                       |   | As Previously |       |   |        |   |       | As       |   |
|--------------------------------------------|--------|---------------|------------|--------|-------------|--------|------------|----------|--------|
| Balance Sheet Amounts                      |   | Reported      |       |   | Restatement |   |       | Restated |   |
| March 31, 2010                             |   |          |       |   |        |   |       |     |   |
| Derivative warrant liability               |   | $             | -          |   |        | $      | 1,964,644  |     |   | $ | 1,964,644 |   |
| Total liabilities                          |   |          | 10,817,658 |   |        |   | 1,964,644  |     |   |   | 12,782,302 |   |
| Additional paid-in capital                 |   |          | 23,807,653 |   |        |   | (852,957   | )        |   |   | 22,954,696 |   |
| Retained earnings                          |   |          | 67,567,522 |   |        |   | (1,111,687 | )        |   |   | 66,455,835 |   |
| Total stockholders' equity                 |   |          | 97,355,820 |   |        |   | (1,964,644 | )        |   |   | 95,391,176 |   |
| December 31, 2009                          |   |          |       |   |        |   |       |     |   |   |   |   |
| Derivative warrant liability               |   | $             | -          |   |        | $      | 2,523,148  |     |   | $ | 2,523,148 |   |
| Total liabilities                          |   |          | 10,544,965 |   |        |   | 2,523,148  |     |   |   | 13,068,113 |   |
| Additional paid-in capital                 |   |          | 21,178,114 |   |        |   | (852,957   | )        |   |   | 20,325,157 |   |
| Retained earnings                          |   |          | 63,272,868 |   |        |   | (1,670,191 | )        |   |   | 61,602,677 |   |
| Total stockholders' equity                 |   |          | 90,396,097 |   |        |   | (2,523,148 | )        |   |   | 87,872,949 |   |
| March 31, 2009                             |   |          |       |   |        |   |       |     |   |   |   |   |
| Current assets                             |   | $             | 62,953,051 |   |        | $      | -          |     |   | $ | 62,953,051 |   |
| Total assets                               |   |          | 80,426,249 |   |        |   | -          |     |   |   | 80,426,249 |   |
| Current liabilities                        |   |          | 6,756,537  |   |        |   | -          |     |   |   | 6,756,537 |   |
| Research and development commitments       |   |          | 36,520     |   |        |   | -          |     |   |   | 36,520 |   |
| Derivative warrant liability               |   |          | -          |   |        |   | 529,374    |     |   |   | 529,374 |   |
| Total liabilities                          |   |          | 6,793,057  |   |        |   | 529,374    |     |   |   | 7,322,431 |   |
| Common stock                               |   |          | 42,279     |   |        |   | -          |     |   |   | 42,279 |   |
| Additional paid-in capital                 |   |          | 21,066,338 |   |        |   | (852,957   | )        |   |   | 20,213,381 |   |
| Retained earnings                          |   |          | 46,717,466 |   |        |   | 323,583    |     |   |   | 47,041,049 |   |
| Foreign currency translation adjustment    |   |          | 5,807,109  |   |        |   | -          |     |   |   | 5,807,109 |   |
| Total stockholders' equity                 |   |          | 73,633,192 |   |        |   | (529,374   | )        |   |   | 73,103,818 |   |
| Total liabilities and stockholders' equity |   |          | 80,426,249 |   |        |   | -          |     |   |   | 80,426,249 |   |

----

| Statement of Operations and               |   | As Previously |      |   |        |   |     | As       |   |
|-------------------------------------------|--------|---------------|-----------|--------|-------------|--------|----------|----------|--------|
| Comprehensive Income Amounts              |   | Reported      |      |   | Restatement |   |     | Restated |   |
| For the Three Months Ended March 31, 2010 |   |          |      |   |        |   |     |     |   |
| Derivative gain                           |   | $             | -         |   |        | $      | 558,504  |     |   | $ | 558,504 |   |
| Net other income (expense)                |   |          | (43,733   | )      |        |   | 558,504  |     |   |   | 514,771 |   |
| Income before income taxes                |   |          | 4,783,933 |   |        |   | 558,504  |     |   |   | 5,342,437 |   |
| Net income                                |   |          | 4,294,654 |   |        |   | 558,504  |     |   |   | 4,853,158 |   |
| Comprehensive income                      |   |          | 4,309,099 |   |        |   | 558,504  |     |   |   | 4,867,603 |   |
| Basic and diluted earnings per share      |   | $             | 0.10      |   |        | $      | 0.01     |     |   | $ | 0.11 |   |
| For the Three Months Ended March 31, 2009 |   |          |      |   |        |   |     |     |   |   |   |   |
| Derivative loss                           |   | $             | -         |   |        | $      | (265,797 | )        |   | $ | (265,797 | ) |
| Net other expense                         |   |          | (27,647   | )      |        |   | (265,797 | )        |   |   | (293,444 | ) |
| Income before income taxes                |   |          | 4,035,369 |   |        |   | (265,797 | )        |   |   | 3,769,572 |   |
| Net income                                |   |          | 3,677,647 |   |        |   | (265,797 | )        |   |   | 3,411,850 |   |
| Comprehensive income                      |   |          | 3,765,138 |   |        |   | (265,797 | )        |   |   | 3,499,341 |   |
| Basic and diluted earnings per share      |   | $             | 0.09      |   |        | $      | (0.01    | )        |   | $ | 0.08 |   |

|                                      |   | As Previously |      |   |        |   |     | As       |   |
|-------------------------------------------|--------|---------------|-----------|--------|-------------|--------|----------|----------|--------|
| Statement of Cash Flows Amounts           |   | Reported      |      |   | Restatement |   |     | Restated |   |
| For the Three Months Ended March 31, 2010 |   |          |      |   |        |   |     |     |   |
| Net income                                |   | $             | 4,294,654 |   |        | $      | 558,504  |     |   | $ | 4,853,158 |   |
| Derivative loss                           |   |          | -         |   |        |   | (558,504 | )        |   |   | (558,504 | ) |
| For the Three Months Ended March 31, 2009 |   |          |      |   |        |   |     |     |   |   |   |   |
| Net income                                |   | $             | 3,677,647 |   |        | $      | (265,797 | )        |   | $ | 3,411,850 |   |
| Derivative loss                           |   |          | -         |   |        |   | 265,797  |     |   |   | 265,797 |   |

----

|            |   | March 31, |       |   | December 31, |   |
|-----------------|--------|-----------|------------|--------|--------------|--------|
|            |   | 2010      |       |   | 2009         |   |
| Raw materials   |   | $         | 10,151,293 |   |         | $      | 9,353,076 |   |
| Finished goods  |   |      | 5,688,100  |   |         |   | 4,879,997 |   |
| Total Inventory |   | $         | 15,839,393 |   |         | $      | 14,233,073 |   |

|                           |   | March 31, |       |   | December 31, |   |
|--------------------------------|--------|-----------|------------|--------|--------------|--------|
|                           |   | 2010      |       |   | 2009         |   |
| Permit of land use             |   | $         | 412,030    |   |         | $      | 411,963 |   |
| Building                       |   |      | 2,229,801  |   |         |   | 2,229,442 |   |
| Plant, machinery and equipment |   |      | 5,310,044  |   |         |   | 5,223,872 |   |
| Motor vehicle                  |   |      | 135,148    |   |         |   | 135,127 |   |
| Office equipment               |   |      | 112,376    |   |         |   | 109,440 |   |
| Construction in progress       |   |      | 552,284    |   |         |   | 616,491 |   |
| Total                          |   |      | 8,751,683  |   |         |   | 8,726,335 |   |
| Less: accumulated depreciation |   |      | (2,213,723 | )      |         |   | (2,020,462 | ) |
| Property and Equipment, net    |   | $         | 6,537,960  |   |         | $      | 6,705,873 |   |

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

----

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

----

|                   |   | For the Three Months |    |
|------------------------|--------|----------------------|---------|
|                   |   | Ended March 31,      |    |
|                   |   | 2010                 |    |   | 2009 |   |
| Current                |   | $                    | 561,618 |   |   | $ | 480,688 |   |
| Deferred               |   |                 | (72,339 | ) |   |   | (122,966 | ) |
| Net Income Tax Expense |   | $                    | 489,279 |   |   | $ | 357,722 |   |

----

|                         |   |         |       |   | Cumulative |   |     | January 1,  |   |
|------------------------------|--------|--------------|------------|--------|------------|--------|----------|-------------|--------|
|                         |   | December 31, |       |   | Effect     |   |     | 2009        |   |
|                         |   | 2008         |       |   | Adjustment |   |     | As Restated |   |
| Derivative warrant liability |   | $            | -          |   |       | $      | 263,577  |        |   | $ | 263,577 |   |
| Additional paid-in capital   |   |         | 21,066,338 |   |       |   | (852,957 | )           |   |   | 20,213,381 |   |
| Retained earnings            |   |         | 43,039,819 |   |       |   | 589,380  |        |   |   | 43,629,199 |   |

|                    |   | May 27, |    |   | January 1, |   |    | March 31, |   |   | December 31, |   |   | March 31, |      |
|-------------------------|--------|---------|---------|--------|------------|--------|---------|-----------|--------|--------|--------------|--------|--------|-----------|-----------|
|                    |   | 2008    |    |   | 2009       |   |    | 2009      |   |   | 2009         |   |   | 2010      |      |
| Risk free interest rate |   |    | 2.93    | %      |       |   | 2.93    | %         |   |   | 1.20         | %      |   |      | 2.93      | % |   |   | 1.60 | % |
| Expected life, in years |   |    | 3.00    |   |       |   | 2.41    |      |   |   | 2.16         |   |   |      | 1.41      |   |   |   | 1.16 |   |
| Expected dividend rate  |   |    | 0       | %      |       |   | 0       | %         |   |   | 0            | %      |   |      | 0         | % |   |   | 0 | % |
| Volatility              |   |    | 67.21   | %      |       |   | 67.21   | %         |   |   | 82.26        | %      |   |      | 67.21     | % |   |   | 76.50 | % |
| Fair value              |   | $       | 852,957 |   |       | $      | 263,577 |      |   | $      | 529,374      |   |   | $         | 2,523,148 |   |   | $ | 1,964,644 |   |

----

----

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

----

----

----

----

|                                        |   | Three Months Ended March 31, |       |   |              |   |
|---------------------------------------------|--------|------------------------------|------------|--------|-------------------|--------|
|                                        |   | 2010(as restated)            |       |   | 2009(as restated) |   |   | % Chg |   |
| Revenue                                     |   | $                            | 15,102,510 |   |              | $      | 12,991,982 |   |   |   | 16 | % |
| Cost of Revenue                             |   |                         | 8,968,302  |   |              |   | 7,063,227 |   |   |   | 27 | % |
| Gross Profit                                |   |                         | 6,134,208  |   |              |   | 5,928,755 |   |   |   | 3 | % |
| Selling Expenses                            |   |                         | 582,888    |   |              |   | 602,760 |   |   |   | -3 | % |
| General and Admin Expenses                  |   |                         | 652,748    |   |              |   | 488,047 |   |   |   | 34 | % |
| Bad Debt Expense (Benefit)                  |   |                         | 70,906     |   |              |   | 774,932 |   |   |   | -91 | % |
| Income from Operations                      |   |                         | 4,827,666  |   |              |   | 4,063,016 |   |   |   | 19 | % |
| Derivative Gains (Loss)                     |   |                         | 558,504    |   |              |   | (265,797 | ) |   |   |   |   |
| Income Tax Expense                          |   |                         | (489,279   | )      |              |   | (357,722 | ) |   |   | 37 | % |
| Net Income                                  |   | $                            | 4,853,158  |   |              | $      | 3,411,850 |   |   |   | 42 | % |
| Basic Net Income per Share                  |   | $                            | 0.11       |   |              | $      | 0.08 |   |   |   | 39 | % |
| Basic Weighted Average Shares Outstanding   |   |                         | 43,128,023 |   |              |   | 42,278,938 |   |   |   |   |   |
| Diluted Net Income per Share                |   | $                            | 0.11       |   |              | $      | 0.08 |   |   |   | 38 | % |
| Diluted Weighted Average Shares Outstanding |   |                         | 43,602,261 |   |              |   | 42,278,938 |   |   |   |   |   |

----

|                                                                                 |   | China Pharma Holdings, Inc.                                    |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                                 |   | Reconciliation of Non-GAAP Adjusted Net Income and Diluted EPS |   |
|                                                                                 |   | (Unaudited, $ in thousand except share and per share data)     |   |
|                                                                                 |   |                                                           |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   | For the Three Months Ended March 31,                           |   |   |
|                                                                                 |   | 2010                                                           |   |   |   |   |   | 2009 |   |   |   |   |
|                                                                                 |   | Net income                                                     |   |   | EPS |   |   | Net income |   |   | EPS |   |
| Adjusted net income, excluding approximate after-tax impact of derivative gain(loss) |   | $                                                              | 4,294  |   |   | $ | 0.10 |   |   | $ | 3,678 |   |   | $ | 0.09 |   |
|                                                                                 |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add: Derivate Gain (Loss) (a)                                                        |   |                                                           | 559    |   |   |   | 0.01 |   |   |   | (266 | ) |   |   | (0.01 | ) |
| Net income as reported (GAAP)                                                        |   | $                                                              | 4,853  |   |   | $ | 0.11 |   |   | $ | 3,412 |   |   | $ | 0.08 |   |

| (a) Represents the approximate amount that net income or EPS of the corresponding periods would have decreased by if derivative reclassification had not been made. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                             |   |    | Three Month Ended March 31 |   |
|--------------------------------------------------|--------|---------|----------------------------|--------|
|                                             |   |    | 2010                       |   |   |   | 2009 |   |
| Net Cash Provided (Used by) Operating Activities |   | $  | 1,123,331                  |   |   | $  | 1,117,134 |   |
| Net Cash Used in Investing Activities            |   |    | (2,557,029                 | )      |   |   | (2,899,929 | ) |
| Net Cash Provided by Financing Activity          |   |    | 2,583,000                  |   |   |   | - |   |
| Effect of Exchange Rate Changes on Cash          |   |    | 527                        |   |   |   | 7,527 |   |
| Cash and Cash Equivalents at Beginning of Period |   |    | 3,634,753                  |   |   |   | 6,927,149 |   |
| Cash and Cash Equivalents at End of Period       |   | $       | 4,784,582                  |   |   | $ | 5,151,881 |   |

----

----

----

|                 | CHINA PHARMA HOLDINGS, INC. |                                                                                                                                                                                                                                                                            |
|----------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |                        |                                                                                                                                                                                                                                                                            |   |
| Date: March 15, 2011 | By:                         |  /s/ Zhilin Li                                           |   |
|                 |                        | Name: Zhilin Li                                                                                                                                                                                                                                                                 |   |
|                 |                        | Title: President and Chief Executive Officer                                                                                                                                                                                                                               |   |
|                 |                        | (principal executive officer)                                                                                                                                                                                                                                              |   |

| Date: March 15, 2011 | By:    |  /s/ Frank Waung                                    |   |
|----------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                 |   | Name: Frank Waung                                                                                                                                                                                                                       |   |
|                 |   | Title: Chief Financial Officer                                                                                                                                                                                                     |   |
|                 |   | (principal financial officer and principal                                                                                                                                                                                         |   |
|                 |   | accounting officer)                                                                                                                                                                                                                |   |

----

----