LIUZHOU CITY, Guangxi, China, June 1 /PRNewswire-Asia-FirstCall/ -- China BCT Pharmacy Group, Inc., (OTC Bulletin Board: CNBI), ("China BCT" or the "Company"), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced the successful acquisition of 11 retail pharmacy stores in Laibin City, Xiangzhou County, further expanding the Company's pharmacy footprint in Guangxi Province.
In May 2010, China BCT acquired 11 retail pharmacy stores in Laibin City for $0.6 million in cash from Laibin Teng Fei Pharmaceutical Limited, a local retail pharmaceutical firm. China BCT will invest a total of approximately $49,000 to upgrade these stores to the Company's operating standards. Renovation for some stores has already commenced and upgrades to all stores are expected to be completed by July. The Company estimates average annual sales per store to be approximately $145,000 and anticipates the payback period to be about 3 years. Management expects these newly acquired stores to contribute approximately $1.0 million to China BCT's revenues in 2010.
"Following our recent deals that added an aggregate of 48 retail pharmacy stores, we are pleased to announce another acquisition that expands our pharmacy network in Guangxi Province," commented Mr. Hui Tian Tang, Chairman and CEO of China BCT. "We remain confident that we will meet our goal to add a total of 160 pharmacy stores by the end of 2010. We expect the 59 newly acquired stores over the past few months to contribute over $6 million to our revenue this year and better position us to leverage our retail network and increase market penetration."
About China BCT
China BCT is engaged in pharmaceutical distribution, pharmacy retailing, and the manufacture of pharmaceuticals products through its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited, Hefeng Pharmaceutical Co. Limited, and Guangxi Liuzhou Baicaotang Medicine Retail Limited in Guangxi province, China. It operates a large regional retail network in Guangxi province, consisting of 125 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company's wholesale distribution network.
Safe Harbor Statement
This presentation contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the successful integration of newly acquired stores, the achievability of the payback periods, and the revenue generation potential of the newly acquired stores. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.
For more information, please contact: Company Contact: Ms. Shelly Zhang, Chief Financial Officer China BCT Pharmacy Group, Inc. Email: firstname.lastname@example.org Tel: +86-772-363-8318 Investor Relations Contact: Ms Lei Huang, Account Manager CCG Investor Relations Email: email@example.com Tel: +1-646-833-3417 Mr. Crocker Coulson, President Email: firstname.lastname@example.org Tel: +1-646-213-1915 Web: http://www.ccgirasia.com
SOURCE China BCT Pharmacy Group, Inc.