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Global Pharm Holdings Group Announces Fiscal Year 2010 Financial Results
Date:4/14/2011

nd 2009:For the Years Ended December 31 – Revenuein USD except percentage

2010

2009

Change% of revenue% of revenue%Pharmaceutical products distribution

$97,632,578

69.6

$59,179,450

68.2

$38,453,128

65.0TCM processing and distribution

22,463,998

16.0

14,844,372

17.1

7,619,626

51.3Herbal cultivation and sales

15,390,594

11.0

7,500,814

8.6

7,889,780

105.2Flower tea bags

4,855,608

3.4

5,259,366

6.1

(403,758)

(7.7)Total

$140,342,778

100

$86,784,002

100

$53,558,776

61.7The sales growth of pharmaceutical products distribution, generated by the Company's subsidiaries Yaoyuan, was mainly due to the Company securing exclusive distribution rights from two pharmaceutical manufactures in Shandong province in early 2010, which granted Global Pharm the rights to sell a total of over 680 kinds of products exclusively in Shandong province.

The growth of the Company's TCM processing and distribution business, generated by its subsidiary Xuelingxian, was primarily due to the expansion of the product portfolio and the price volatility of TCM products, as well as the increased demand from hospitals, pharmacy shops and neighborhood clinics.

The growth in the herbal cultivation and sales segment, generated by the Company's subsidiaries Xuelingxian, was primarily due to the additional land leased for plantation, the growth in sales of herbs harvested in 2010, as well as the increase in prices of certain herbs in 2010.

The year-over-year decrease in sales of flower tea bags for 2010 was mainly due to increased competition in the market.  

Gross Profit for the twelve months ended December 31, 2010 was $26.4 million, an increase of 64.5% from $16.1 million in the same period a year ago. Gross margin was 18.8% com
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SOURCE Global Pharm Holdings Group, Inc.
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