LIUZHOU CITY, GUANGXI PROVINCE, China, July 28 /PRNewswire-Asia-FirstCall/-- China BCT Pharmacy Group, Inc., (OTC Bulletin Board: CNBI), ("China BCT" orthe "Company"), a leading pharmaceutical distributor, retail pharmacy, andmanufacturer of pharmaceutical products in Guangxi Province, China, todayannounced that it has further expanded its retail network across Guangxi byopening 12 new retail pharmaceutical stores.
With an average size of 79.4 square meters, the new stores are located inhighly populated and well attended locations, primarily in Liuzhou, Guilin,Nanning and Laibin cities. With a total expected capital investment ofapproximately $360,000, the average payback period of these stores isanticipated to be approximately 2.5 years. Management expects that thesestores will generate approximately $2.2 million annually.
The stores will operate under the "Baicaotang" brand name and offer adiversified range of pharmaceutical products including nutraceuticals,cosmetics, Chinese herbal medicine and a limited number of the Company'sprivate label pharmaceutical products. The Company has conducted comprehensivetraining to its staff in order to provide customers with accurate productinformation. So far, China BCT has attracted new recruits who possessprofessional knowledge related to the medical field.
Currently, the new stores are in their final stage of renovation and areexpected to become fully operational by the end of July 2010. Managementbelieves that the new stores will contribute approximately $930,000 to theCompany's consolidated revenue in fiscal year 2010.
"In terms of retail footprint expansion, we deploy a two-pronged strategywhich involves acquisitions and opening new stores," said Mr. Hui Tian Tang,Chairman and Chief Executive Officer of China BCT. "We believe thiscomplementary approach is particularly effective. It enables us to establishour footprint in key locations by opening our own retail stores and allowingus to build upon existing sales of the stores we acquire by utilizing ourrenowned 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 inGuangxi province, China. The Company operates a large regional retail networkin Guangxi province, consisting of 137 directly owned retail stores in Guangxiprovince and currently over 8,000 products are distributed through theCompany's wholesale distribution network. For more information, please visithttp://www.china-bct.com
Safe Harbor Statement
This press release contains "forward-looking statements" within themeaning of the safe-harbor provisions of the Private Securities LitigationReform Act of 1995. Such statements involve known and unknown risks,uncertainties and other factors that could cause the actual results of theCompany to differ materially from the results expressed or implied by suchstatements, including statements related to anticipated revenue and paybackperiod of the new stores. The Company's actual results could differ materiallyfrom those anticipated in these forward-looking statements as a result of avariety of factors, including those discussed in the Company's periodicreports that are filed with the Securities and Exchange Commission andavailable on its website (http://www.sec.gov). Accordingly, although theCompany believes that the expectations reflected in such forward-lookingstatements are reasonable, there can be no assurance that such expectationswill 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: email@example.com Website: http://www.china-bct.com Investor Relations Contact: Mr. Crocker Coulson, President CCG Investor Relations Tel: +1-646-213-1915 Email: firstname.lastname@example.org Ms. Elaine Ketchmere VP of Financial Writing Tel: +1-310-954-1345 Email: email@example.com CCG Investor Relations Website: http://www.ccgirasia.com
SOURCE China BCT Pharmacy Group, Inc.