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Global Pharm Holdings Group Announces First Quarter 2011 Financial Results
Date:5/16/2011

p>NAFlower tea bags

273,756

0.6

991,942

3.4

(718,186)

(72.4)Total

$42,120,757

100

$28,892,870

100

$13,227,887

45.8The revenue of the pharmaceutical products distribution segment was $32.5 million for the three months ended March 31, 2011, an increase of 55.6% compared with the same period in 2010. The strong growth in the pharmaceutical products distribution segment was primarily due to a series of marketing activities to promote sales, a broader product portfolio offered to customers and improved efficiency in fulfilling sales orders. During the first quarter of 2011, Global Pharm's distribution product portfolio expanded from approximately 7,000 products to over 9,000 products. In addition, in order to streamline internal operations and resource allocations, the Company reassigned approximately $2.1 million in revenue generated by the distribution of OEM (OEM drugs refer to generic drugs the Company purchases from pharmaceutical manufacturers that the Company rebrand and sell under its own brand names) products from the TCM processing and distribution business segment to the pharmaceutical product distribution segment in the first quarter of 2011.

The revenue of the TCM processing and distribution segment was $4.7 million, a decrease of approximately 32.9% from the first quarter of 2010, primarily due to approximately $2 million of related sales from OEM products for the three months ended March 31, 2011 have been recorded in the pharmaceutical product distribution segment.

The revenue of the herbal cultivation and sales segment was $4.7 million for the three months ended March 31, 2011. The increase was primarily attributable to the additional sales of herbal products for the three months ended March 31, 2011.  The Company had no herbal sales for the comparable period in 2010.

Revenue from the flower tea bags segment was $0.3 million for the three months
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SOURCE Global Pharm Holdings Group, Inc.
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