LIUZHOU CITY, GUANGXI PROVINCE, China, July 28 /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 that it has further expanded its retail network across Guangxi by opening 12 new retail pharmaceutical stores.
With an average size of 79.4 square meters, the new stores are located in highly populated and well attended locations, primarily in Liuzhou, Guilin, Nanning and Laibin cities. With a total expected capital investment of approximately $360,000, the average payback period of these stores is anticipated to be approximately 2.5 years. Management expects that these stores will generate approximately $2.2 million annually.
The stores will operate under the "Baicaotang" brand name and offer a diversified range of pharmaceutical products including nutraceuticals, cosmetics, Chinese herbal medicine and a limited number of the Company's private label pharmaceutical products. The Company has conducted comprehensive training to its staff in order to provide customers with accurate product information. So far, China BCT has attracted new recruits who possess professional knowledge related to the medical field.
Currently, the new stores are in their final stage of renovation and are expected to become fully operational by the end of July 2010. Management believes that the new stores will contribute approximately $930,000 to the Company's consolidated revenue in fiscal year 2010.
"In terms of retail footprint expansion, we deploy a two-pronged strategy which involves acquisitions and opening new stores," said Mr. Hui Tian Tang, Chairman and Chief Executive Officer of China BCT. "We believe this complementary approach is particularly effective. It enables us to establish our footprint in key locations by opening our own retail stores and allowing us to build upon existing sales of the stores we acquire by utilizing our renowned brand name."
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, each located in Guangxi province, China. The Company operates a large regional retail network in Guangxi province, consisting of 137 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company's wholesale distribution network. For more information, please visit http://www.china-bct.com
Safe Harbor Statement
This press release 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 statements related to anticipated revenue and payback period of the new stores. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). 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.
Tel: +86-772-363-8318
Email: shelly.zhang@china-bct.com
Website: http://www.china-bct.com
Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Ms. Elaine Ketchmere
VP of Financial Writing
Tel: +1-310-954-1345
Email: elaine.ketchmere@ccgir.com
CCG Investor Relations
Website: http://www.ccgirasia.com
Source: China BCT Pharmacy Group, Inc.
