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

to large quantity of unfulfilled sales orders placed by customers before year end and anticipated orders at the next year beginning, which is in line with the increased scale of sales during the year. Working capital was $17.4 million, compared with $10.0 million at the end of 2009. As of December 31, 2010, the Company had $2.0 million in short-term debt. Stockholders' equity totaled $17.6 million as of December 31, 2010, compared with $10.3 million at the end of 2009. For the year ended December 31, 2010, Global Pharm generated $8.9 million cash from operating activities, as compared to $10.2 million for 2009. The Company used $12.1 million in cash for financing activities for the twelve months ended December 31, 2010 compared with $7.8 million for the twelve months ended December 31, 2009, mainly due to dividends paid to the former stockholders of the Company's operating subsidiaries. The diluted weighted average number of shares outstanding was 21.8 million as of December 31, 2010.

Business OutlookMr. Yin concluded, "We believe that the National Health Program will further drive the reform and consolidation of China's pharmaceutical industry in the next several years. This consolidation will bring historical opportunities for Global Pharm to acquire more distribution units to underline perspective sustainable growth. In 2011, we will focus on a series of acquisition of several targeting pioneer city-level distributors to build a solid comprehensive sale network in Shandong Province. We believe the formation of this broad local distribution network will smooth a pipeline between the pharmaceutical manufacturers and distributors, as well as to effectively alleviate incumbent multiple layers in the distribution channel and lower the price mark-up for pharmaceuticals. Moreover, the growing distribution channels will help us to create a significant competitive edge in the market by getting more preferential price and products from numerous prestigious domes
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SOURCE Global Pharm Holdings Group, Inc.
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