China BCT Pharmacy Group Inc. is a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China. The company operates a large retail regional network, consisting of 137 directly owned retail stores.

The company announced today that it has further expanded its retail network across Guangxi Province by opening 12 new retail pharmaceutical stores. The new stores are located in highly populated and busy locations, primarily in the cities of Liuzhou, Guilin, Laibin and Nanning. Currently, the stores are in the final stage of renovation and are expected to become fully operational by the end of July 2010.

The stores will operate under the “Baicaotang” brand name and offer a diversified range of pharmaceutical products. The products include nutraceuticals, cosmetics, Chinese herbal medicines and a limited number of China BCT Pharmacy’s private label pharmaceutical products.

With a total expected capital investment of approximately $360,000, the average payback period of these stores is anticipated to be about 2.5 years. The management of China BCT Pharmacy expects that these stores will generate approximately $2.2 million annually. In addition, management believes that the new stores will contribute approximately $930,000 to the company’s consolidated revenue in fiscal year 2010.

China BCT Pharmacy uses a two-pronged strategy to expand their regional footprint – opening new stores and acquisitions. The chairman and CEO of the company, Hui Tian Tang, commented on this approach, “We believe this complimentary 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.”