Jul 21 2011
China BCT Pharmacy Group, Inc., (OTC BB: CNBI), ("China BCT" or the "Company"), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced that the Company is in the process of launching 21 new retail pharmacy stores in Guangxi, bringing the total number of "Baicaotang" branded stores to 208.
The new stores will offer a full range of pharmaceutical products and are located in areas of Liuzhou city, the administrative counties around Liuzhou, Yizhou City, Binyang County, and Luzhai County. Upfront capital investment to complete site renovation for the new stores, which have an average size of roughly 73 square meters, totaled approximately RMB 12.6 million ($1.9 million). Management estimates that the pay back period on this investment will be approximately 4 years and believes that the 21 new stores, as a group, will generate annual revenues of approximately RMB 18.9 million ($2.63 million). The Company expects all of the new locations, upon receipt of required government business licenses, to be fully operational by the end of the third quarter of 2011.
"We are pleased to announce the addition of 21 new stores to our strong regional retail pharmacy business," commented Mr. Hui Tian Tang, Chairman and Chief Executive Officer of China BCT Pharmacy Group, Inc. "Our retail strategy continues to focus on Guangxi, with an emphasis on second and third tier cities with relatively low market penetration. By investing in the Baicaotang brand, providing excellent customer service and offering ample product selection, we aim to become the leading retail pharmacy in Guangxi. Our broader strategy is to vertically integrate our growing retail network with our wholesale distribution and manufacturing businesses to maximize China BCT's overall profitability," Mr. Tang added.
SOURCE China BCT Pharmacy Group, Inc.
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