October 1, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — China BCT Pharmacy Group, Inc., (OTCBB: CNBI), a pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, said that it has expanded its retail network throughout Guangxi province by adding 33 retail pharmaceutical stores, bringing the total number of the company's pharmacies to 170.

The company's retail subsidiary started the year with 66 directly-owned stores.

In the first of two separate transactions during September 2010, Guangxi Liuzhou Baicaotang Medicine Retail Ltd., a subsidiary of the company acquired 15 retail pharmacy stories, located throughout six counties of Liuzhou city, for RMB 4.7 million (around $0.70 million) in cash from Guangxi San Le Pharmacy Chain Co., Ltd.

China BCT management said it expects these stores to generate annual revenue of roughly $2.2 million and to contribute around $0.6 million to the company's top-line in 2010. Liuzhou is Guangxi's second largest city, with a population of over 3.6 million, and is the region's main industrial center.

In the second transaction, BCT Retail acquired 18 retail pharmacy stores located in the Rongshui County of Liuzhou City for RMB 5.9 million (around $0.88 million) in cash from Rongshui County Jiu Zhou Pharmaceutical Chain Co., Ltd. Management expects these stores to generate annual revenue of roughly $2.6 million and to contribute around $0.7 million to the company's top-line in 2010.

ChinaBCT plans to renovate the acquired pharmacies, at an average price of around $7,000 per store, and will operate each store under "Baicaotang" brand name.

The firm said that store upgrades and renovations should be complete by the end of October 2010. On average, these stores are expected to generate operating margins of roughly 15% and the company anticipates a 2.5 year to three year payback period.

China-based China BCT operates a regional retail network in Guangxi province, consisting of 170 directly owned retail stores in Guangxi province through its subsidiaries and currently over 8,000 products are distributed through the company's wholesale distribution network.

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