Investor PresentationJanuary 2007

Investor PresentationInvestor Presentation

China Pharma Holdings, Inc. (CPHI)

Slide 2

China Pharma

Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth in this presentation that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand, increased competition, failure to obtain or maintain intellectual property protection, downturns in the Chinese economy, uncompetitive levels of research and development, failure to obtain regulatory approvals, and other information detailed from time to time in the China Pharma Holdings, Inc.’s filings and future filings with the United States Securities and Exchange Commission.

The forward-looking statements contained in this presentation are made only of this date, and China Pharma Holdings, Inc. is under no obligation to revise or update these forward-looking statements.

Slide 3

China Pharma

Investment Highlights

Profitable company with a low cost/high margin business model

Rapid top line growth and increasing profitability

Positioned within the largest segments of the Chinese pharmaceutical market

Robust portfolio and pipeline of approximately 30 drugs that address large patient populations

State-of-art modern manufacturing facilities with multiple production lines and capacity to meet future growth

Industry dynamics support growth strategy

Slide 4

China Pharma

Equity Snapshot

Exchange/Symbol OTC BB: CPHI

Price (1/17/2007) $2.28

Shares Outstanding 34.7 M

Market Capitalization $79.17 M

Revenues (TTM) $18.2 M

Net Income ( 9 mos. 2006) $5.2 M

Slide 5

China Pharma

Corporate Overview

China Pharma is a leading generic drug maker with a growing brand product business• Specialty pharmaceutical company that develops, manufactures,

and markets pharmaceutical products for hospitals and the over the counter (OTC) market in China

Corporate headquarters: Haikou City, China Professional Staff

• 150 employees

• 550 marketing and sales agent network in 16 sales offices

Scalable GMP certified manufacturing facilities in Haikou City, China, with eight production lines with extra capacity

China Pharma is a holding company for Helpson Bio-pharmaceutical Co., Ltd. (Helpson), a specialty bio-pharmaceutical company

Slide 6

China Pharma

The Strong Economy is Fueling Double Digit Growth of the Pharma Market

Growth factors

• Overall growth/strength of Chinese economy

• Increase in disposable household income

• Desire for improved healthcare

• Aging population

• Increasing diagnosis and treatment rates

• Greater government spending on healthcare 8th largest pharmaceutical market in the world

• The pharmaceutical market grew 20.4% in 2005 to $11.7B

• Forecasted to be the 5th largest market by 2010 and largest market by 2050

Projected CAGR of 16% to 19% for 2005-2010

Source: IMS, Pharmexec.com

Slide 7

China Pharma

Chinese Generic Companies Dominate the Industry

About 80% of drugs sold in China are generics

China’s Drug Administration Law

• Drugs that have never been manufactured in China are new drugs

Imported medicines are prohibited or restricted from China’s social medical insurance

Domestic company market share: 65%

Foreign company market share: 35%

Source: VOI Consulting, Inc., 2005 PharmaHandbook, Citigroup SmithBarney

Slide 8

China Pharma

Growing Western Medicines Segment Dominates the Market

Western medicines and biologics segment makes up 74% of China’s drug market, or US$ 11B* and is growing at double digit rates

Traditional Chinese medicines make up 26% of China’s drug market

74%

26%WesternMedicines

TraditionalChineseMedicines

* 2004, ex-manufacturer level Source: VOI Consulting, Inc., 2005 PharmaHandbook, Citigroup SmithBarney, JPMorgan

• China Pharma’s generic drug strategy focuses on Western medicines

• This sector achieved 20% annualized growth between 1996 and 2002

Slide 9

China Pharma

Highly Fragmented Pharma Market Provides Opportunity for Growth

There are over 5,000 companies in the Chinese pharmaceutical market

The top ten companies contribute only 15% of total industry sales

15%

85%

Top 10 Companies Cumulative % of Total Industry Sales

Cumulative % of Total Industry Sales of Remainder of Companies

Source: JPMorgan

• CPHI is positioned to gain market share:

• Robust portfolio and pipeline of new drugs

• Wide distribution network• Modern GMP-certified

production facilities• Expertise and experience

with the SFDA and approval process

Slide 10

China Pharma

Low Cost/High Margin Generic Drug Business Model

Off-patent global drugs with $1+ billion

cumulative sales

Reformulation & Chinese Patent

Protection

5 Year Barrier to Entry

• Select off-patent global drugs

• Each drug has cumulative global sales of $1+ billion

• Reformulate these drugs

• Obtain authorization from China’s State Food and Drug Administration (SFDA)

• Obtain Chinese patent protection

• Chinese patent protection applies for 3 years

• 2-year ramp up period for a competitor to pursue a drug that China Pharma is already marketing

• China Pharma is GMP certified – new competitors must go through the GMP certification process

Slide 11

China Pharma

Patient Marketing Focus Forms a Competitive Advantage

Target patient group

China Pharma customizes the delivery system

andmarketing

for productsbased on the

targetpatient group

Maintaining various patient focused delivery systems enhances China Pharma’s competitive position in the market

Types of delivery include:• Tablets• Capsules• Injectables• Granules• Oral fluids (suspension)

• Freeze dried (Lyopholized injectables)

Slide 12

China Pharma

Strong Pipeline with Therapeutic Focus

Three major therapeutic areas:

Cardiovascular and Cerebrovascular diseases

Infectious diseases

Central nervous system (CNS) diseases

Treats the 1st and 3rd leading causes

of death in China

Source: New England Journal of Medicine, Volume 353:1124-1134, September 15, 2005, Number 11, ”Major Causes of Death Among Men and Women in China”

Slide 13

China Pharma

Diverse Product Portfolio

Treatment Products

CNS and Neurology Neurotrophicpeptide GastrodinOzagrel

Buflomedil

Infectious Diseases CefaclorClarithromycinAndrographolide

RoxithromycinpHGF

Nutritional Supplement rhaFGF Vitamin B6

Flu and Cold Pusen OK – 1st to market OTC product comparable to Aleve

Full list available from China Pharma

Slide 14

China Pharma

Newly Launched Drugs Treat High Incidence Conditions

Pusen OK

Gastrodin

Hepatocyte Growth-promoting Factor (pHGF)

Treatment: Flu (OTC) Launched: Q4 2005

Treatment: Headaches and other CNS symptoms

Launched: Q1 2006

Treatment: Promotes repair and growth in liver cells and is indicated for the adjunct treatment of hepatitis at various stages

Launched: Q1 2006

At 10%, China has one of the highest carrier rates of hepatitis B in the world Source: WHO

Ozagrel Treatment: acute strokes Launched: Q3 2006

Slide 15

China Pharma

Granisetron hydrochloride

Propylgallate

Alginic Sodium Diester

Treatment: prevention of nausea and vomiting associated with radiation treatment and chemotherapy in cancer patients.

Treatment: prophylaxis and treatment for coronary heart

disease, cerebral embolism and thrombophlebitis after surgery

Treatment: ischemic cardiovascular and

cerebrovascular diseases, and high lipid levels in the blood

Cardiovascular & Cerebrovascular

Medicine

Recently Approved Drugs Maintain Focus on Leading Causes of Death

Slide 16

China Pharma

China Pharma (CPHI)

Chinese Academy of Sciences

China University of Pharmaceuticals

Academy of Military Medical Science

Chongqing Pharmaceutical Research Institute

China Sichuan University

Joint R&D

Research and Development is Supported by Leading Institutions

China Pharma retains ownership rights to all resulting intellectual property

Slide 17

China Pharma

Scalable Modern Production Facilities with Multiple Production Lines

Scalable GMP certified manufacturing facilities with multiple product lines in Haikou City, China

China Pharma has invested $6.25M in expansion, upgrades, and GMP certification

Eight modern production lines with capacity to meet future demand

Plans to invest $3M to expand manufacturing capacity in 2007 for a production line dedicated to antibiotics

Slide 18

China Pharma

Expansive Distribution Network Reaches Main Market Channels

China Pharma sells directly to hospitals and drug stores via a dedicated sales and marketing team:

• 16 sales offices and approximately 550 agents

• Products are currently sold throughout China

85%

15%

Drugstores as %total sales

Hospitals as %total sales

Source: VOI Consulting, Inc., 2005 PharmaHandbook, Citigroup SmithBarney

Slide 19

China Pharma

China’s public health insurance regime provides reimbursement for up to 100% of drug prices

The Chinese government recently expanded health insurance coverage to include rural populations in its New Rural Cooperative Medical-care System (CMS), thus opening up a potential new multi-billion dollar drug market

All of China Pharma’s prescription drugs are on the national reimbursement list, and the Company will benefit most from the New Rural CMS

New Rural Cooperative Medical Care System (CMS) Enhances China Pharma’s Market

Positioning

Slide 20

China Pharma

Focus on billion dollar generic drug market Increase development of high margin biotechnology and brand-name drugs Robust and diverse R&D pipeline Increased manufacturing capacity and specialization Expanded marketing and promotion New product lines and related R&D including: • Chemical drugs

• Biologics

• Traditional Chinese medicines

Strategy for Growth

Slide 21

China Pharma

Experienced Management Team

Ms. Zhilin Li

President and CEO

Founder of Helpson (wholly owned subsidiary of China Pharma)Chairman and CEO of Helpson since 1993Formerly the president of Haikou Bio-engineering Institute, and the vice

president of the Sichuan Institute of Biology Graduated from Sichuan University in biology

Mr. Xinhua Wu

CFO

CFO since October 2005CFO of Helpson since 1999CFO and assistant to the CEO at Hainan Guobang Enterprises Inc. from

1992 to 1999Graduated from the University of Wales with an MBA

Ms Yao Huang

CSO

Started at Helpson in 1994Certified senior engineer and registered pharmacistGraduated from Chengdu Chinese Medicine and Pharmaceutics

UniversityOver 20 years professional experience in pharmaceutical manufacturing

Ms. Jian Yang

Secretary of Board

Secretary since October 2005 Founder and director of Helpson Former researcher at the Sichuan Institute of Biology Vice president of Haikou Biomedicine Engineering Co., Ltd. in 1991 Graduated from the University of Wales with an MBA

Slide 22

China PharmaStrong Top Line Growth

Unaudited financial data provided by China Pharma. The information provided is not intended to reflect U.S. GAAP and is provided for informational purposes only. On June 16, 2005, Onny acquired Hainan Helpson Medical & Biotechnology Co., Ltd. (“Helpson”), which is the main operating unit of China Pharma. The financial statements reflected in SEC filings include accounts and operations of Helpson from the date of its acquisition on June 16, 2005. For additional information please refer to the notes accompanying the financial statement in the 10K SEC filings.

$3.76

$7.74

$14.10 $13.72

YE03 YE04 YE05 9 Mos 2006

2 yr CAGR 93.4%

$ million

Slide 23

China PharmaIncreasing Gross Profits

$1.91

$3.12

$6.51 $6.57

YE03 YE04 YE05 9 Mos 2006

Unaudited financial data provided by China Pharma. The information provided is not intended to reflect U.S. GAAP and is provided for informational purposes only. On June 16, 2005, Onny acquired Hainan Helpson Medical & Biotechnology Co., Ltd. (“Helpson”), which is the main operating unit of China Pharma. The financial statements reflected in SEC filings include accounts and operations of Helpson from the date of its acquisition on June 16, 2005. For additional information please refer to the notes accompanying the financial statement in the 10K SEC filings.

2 yr CAGR 84.7%

$ million

Slide 24

China PharmaGrowing Net Income

$1.01

$2.34

$5.78$5.16

YE03 YE04 YE05 9 Mos 2006

Unaudited financial data provided by China Pharma. The information provided is not intended to reflect U.S. GAAP and is provided for informational purposes only. On June 16, 2005, Onny acquired Hainan Helpson Medical & Biotechnology Co., Ltd. (“Helpson”), which is the main operating unit of China Pharma. The financial statements reflected in SEC filings include accounts and operations of Helpson from the date of its acquisition on June 16, 2005. For additional information please refer to the notes accompanying the financial statement in the 10K SEC filings.

2 yr CAGR 133.5%

$ million

Slide 25

China PharmaAttractive Gross and Net Margins

Gross Margin

50.7%40.4%

46.2% 47.9%

YE03 YE04 YE05 9 Mos 2006

Unaudited financial data provided by China Pharma. The information is not intended to reflect U.S. GAAP and is provided for informational purposes only. On June 16, 2005, Onny acquired Hainan Helpson Medical & Biotechnology Co., Ltd. (“Helpson”), which is the main operating unit of China Pharma. The financial statements reflected in SEC filings included accounts and operations of Helpson from the date of its acquisition on June 16, 2005. For additional information please refer to the notes accompanying the financial statement in the 10k SEC filings.

Profit Margin

28.2% 30.2%41.1% 37.6%

YE03 YE04 YE05 9 Mos 2006

Slide 26

China Pharma

Income Statement

In $millions Q32006

% of sales

Q32005

% of sales

9 Mos 2006

% of sales

Revenues 5.0 100% 2.6 100% 13.7 100%

COGS 2.5 50% 1.6 62% 7.2 52%

Gross Profit 2.5 50% 1.0 38% 6.6 48%

Operating Exps. .4 8% 0.3 11% 0.6 5%

Operating Income 2.1 41% 0.7 27% 5.9 43%

Net Income 1.7 34% 0.5 20% 5.1 37%

Slide 27

China Pharma

Solid Balance Sheet with No Debt

In $millions Q3 2006 FY 2005

Current Assets 22.5 14.5

Working Capital 14.2 8.7

Current Liabilities 8.4 5.8

Long-term Liabilities 0.03 0.03

Shareholders’ Equity 17.1 11.7

Slide 28

China Pharma

Investment Highlights

Profitable company with a low cost/high margin business model

Rapid top line growth and increasing profitability

Positioned within the largest segments of the Chinese pharmaceutical market

Robust portfolio and pipeline of approximately 30 drugs that address large patient populations

State-of-art modern manufacturing facilities with multiple production lines and capacity to meet future growth

Industry dynamics support growth strategy