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Global Pharm Holdings Group, Inc. Announces Second Quarter 2011 Financial Results
Date:8/12/2011

5.3

-

-

4,679,373

NA Flower tea bags

275,075

0.3

2,899,196

4.9

(2,624,121)

(90.5)Total

$87,490,082

100.0

$59,259,637

100.0

$28,230,445

47.6Revenue from the pharmaceutical products distribution segment increased by $24.8 million, or approximately 52.4%, to $72.2 million for the six months ended June 30, 2011, as compared to $47.4 million for the same period in 2010. Revenue from the TCM processing and distribution segment increased by 15.2% to $10.4 million for the six months ended June 30, 2011, compared to $9.0 million for the same period last year. Revenue from the herbal cultivation and sales segment was $4.7 million for the first half of 2011, and nil for the comparable period in 2010, due to the sale of all of the Company's herbal products at the year ended December 31, 2009. The decrease of 90.5% of sales in the flower tea bags segment was due to the increasing competition during first quarter of 2011 and our decision to suspend the flower tea bags operation since April 25, 2011.

Gross profit and gross margin for first half of 2011 - our gross profit was $15.2 million, an increase of 43.1%, from $10.6 million for the same period in 2010. Gross margins decreased to 17.4% for the first half of 2011, from 17.9% for the comparable period in 2010, primarily due to increased costs of TCM products and reduction of sales prices due to competition for the first half of 2011.

Operating expenses for the first half of 2011 were $1.4 million, an increase of $1.0 million in the same period in 2010, primarily due to increased advertising, freight and labor costs to support business growth and expansion. Income from operation for the first half of 2011 increased 50.0% to $12.1 million or 13.9% of revenue, from $8.1 million or 13.6% of revenue for the first half of 2010.

Net income for the
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SOURCE Global Pharm Holdings Group, Inc.
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