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

ng as Vice President in charge of operations of Global Pharm for a term of three years, effective May 1, 2011, thereby increasing the number of Global Pharm executive officers from three to four.

On April 25, 2011, the Company suspended its flower tea bags and sales operations. The Company's decision was based on the intentions of the local government of Bozhou, in conjunction with another pharmaceutical company, to expand the industry development park in Bozhou, that will utilize the site where Xuelingxian is currently located. The factory buildings and relevant land on which Xuelingxian is situated will be expropriated and Xuelingxian will be required to relocate to a new commercial address. The Company is currently evaluating potential new locations and is conducting market research on the flower tea bags market. The management will decide to either reopen the flower tea bags business in a new location or permanently close it after completing its market research, which expected to be completed in mid-2011.

On April 21, 2011, the Company obtained a business license for its newly established joint venture, Shandong Sino-Green TCM Tech Development Co., Ltd. ("Shandong Sino-Green") in Jinan City, Shandong Province. The joint venture was established between Shandong Global Pharm and Jinan Linong TCM Plantation Co., Ltd. ("Jinan Linong"), a PRC company, in Mashan Town of Changqing District of Jinan City, Shandong province. The registered capital of Shandong Sino-Green is RMB 10 million ($1.5 million). Shandong Global Pharm will invest RMB 9.7 million ($1.5 million) and Jinan Linong will invest RMB 0.3 million ($0.1 million), which reflects 97 percent and 3 percent of the ownership of Shandong Sino-Green, respectively. On April 20, 2011, the Company paid RMB 9.7 million (approximately $1.5 million) registered capital.

On April 6, 2011, the Company obtained the business license for its newly established joint venture, Anhui Sino-Green TCM Tech Deve
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SOURCE Global Pharm Holdings Group, Inc.
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