LIUZHOU CITY, China, May 12 /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 48 retail stores in Liuzhou City and Hezhou City in Guangxi Province.
In March 2010, the Company acquired 30 retail pharmacy stores in Liuzhou City for $2.4 million in cash from Wubaitang, a local pharmaceutical company with pharmaceutical wholesale and retail divisions. The Company will invest approximately $130,000 to upgrade these stores to China BCT's operating standards and enhance the store design to better accommodate a more comprehensive product offering. Renovation for some of these stores is already underway and is expected to be completed by the end of May. The Company estimates average annual sales per store to approximate $150,000 with an estimated payback period of 2.5 to 3 years. Management expects these newly acquired stores to contribute approximately $3.7 million to the Company's revenue in 2010.
In April 2010, China BCT acquired another 18 retail pharmacy stores in Zhaoping County, the administrative region of Hezhou City, for $1.3 million in cash from Zhaoping Laobaixing Pharmacy Retail Limited, a local retail pharmaceutical chain store enterprise. The Company intends to invest $80,000 to bring the design and layout of these stores to China BCT's standards and anticipates completing the renovations in May 2010. The Company estimates that each store will contribute approximately $135,000 annually to revenue after it becomes operational with an estimated payback period of approximately 3 years.
"We are very excited to have significantly expanded our reach in Guangxi Province and expect the acquisitions to accelerate our market penetration and expansion of our rural retail pharmacy network," commented Mr. Hui Tan Tang, Chairman & CEO of China BCT. "With these 48 new stores, we are well on the way to reaching our goal of adding 160 new pharmacy stores in 2010. We will continue to seek opportunities to consolidate profitable retail pharmacy stores to expand our economies of scale. As an integrated pharmaceutical company with retail, wholesale and manufacturing operations, we expect to realize valuable synergies with the integration of the newly acquired stores into our existing extensive retail pharmacy network."
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 114 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: z_shelly@hotmail.com
Tel: +86-772-363-8318
Investor Relations Contact:
CCG Investor Relations
Ms Lei Huang, Account Manager
Email: lei.huang@ccgir.com
Tel: +1-646-833-3417
Mr. Crocker Coulson, President
Email: crocker.coulson@ccgir.com
Tel: +1-646-213-1915
Web: www.ccgirasia.com
