GLOBAL PHARM HLDGS GROUP INC (OTC:GPHG)

SHENZHEN, March 13, 2012 /PRNewswire-Asia/ - Global Pharm Holdings Group, Inc. (OTCBB: GPHG) ("Global Pharm" or the "Company"), a growing vertically integrated pharmaceutical company engaged in the distribution of pharmaceutical-related products, Traditional Chinese Medicine ("TCM") processing, and herbal cultivation and sales in China through its subsidiaries in Anhui, Jilin, Guangdong and Shandong provinces, announced today that it would discontinue the voluntary filing of current and periodic reports with the U.S. Securities and Exchange Commission. As a result, the trading of the securities of Global Pharm on the OTC Bulletin Board will cease, although trading may continue in the OTC Pink Market.

Yin Yunlu, Chairman and Chief Executive Officer of the Company commented, "After careful consideration with our shareholders, Board of Directors, management team and professional advisors, we have decided to exit the U.S. equity market, reorganize our corporate structure and pursue further financing. In light of the relative illiquidity of our equity securities in the U.S. market, and the lack of a near-term opportunity for public financing through the U.S. capital markets, we believe this strategy is in the best interests of our shareholders."

“We’re pleased to report a successful quarter marked by strong financial performance and important operational achievements. During the third quarter of 2011, we have further expanded our distribution network coverage in Shandong Province and Guangdong Province through new acquisitions, and completed the $15,000,000 convertible bonds financing, the proceeds of which will be used for our future growth,” stated Mr. Yunlu Yin, Chief Executive Officer of Global Pharm.

Business Outlook

Global Pharm will continue to selectively acquire more distributors which can complement our business. For the rest of 2011, the Company is focusing on the quality of its operations through undertaking measures to enhance its unified management systems, such as improving the integrated information, procurement and sales-team management systems, in order to leverage the resources of each business segment and create synergies across all of them.

SHENZHEN, China, Nov. 4, 2011 /PRNewswire-Asia/ -- Global Pharm Holdings Group, Inc. (OTCBB: GPHG) ("Global Pharm" or the "Company"), a China-based, growing vertically integrated pharmaceutical company engaged in pharmaceutical-related products distribution, Traditional Chinese Medicine ("TCM") herbs cultivation and processing business through its subsidiaries in Anhui, Jilin, Guangdong and Shandong provinces, today announced that, on October 31, 2011, it completed the acquisition of the 100% equity interest of Qingdao Likang Pharmaceutical Co., Ltd ("Qingdao Likang"), a city-level pharmaceutical distributor located in Qingdao, Shandong Province. With the completion of this acquisition, Qingdao Likang becomes an indirect wholly owned subsidiary of the Company.

"We are pleased to announce the completion of this acquisition, which brings us to a total of six companies acquired this year. Following the earlier acquisitions of three city-level pharmaceutical distributors in Shandong Province, this addition further extends our distribution coverage into the city of Qingdao and provides us with critical access to Shandong Peninsula, one of the most economically developed regions in China with a relatively higher level of consumption for pharmaceutical products," stated Mr. Yun-lu Yin, Chief Executive Officer of Global Pharm. "For the rest of 2011, we will focus on integrating these newly acquired businesses into our current operations. Through our efforts, we believe that we will be able to broaden our regional market coverage, expand our customer base, diversify our product portfolios and enhance and maintain our position in the Shandong pharmaceutical market."

Qingdao Likang distributes approximately 4,000 types of pharmaceutical-related products mainly to hospitals, community clinics, and drugstores. It owns a modern warehouse of approximately 1,100 square meters (approximately 11,840 square feet), which has been certified under the Good Supply Practice ("GSP") quality standards in the PRC. Under these standards, wholesale and retail enterprises in China must implement strict control on the distribution of pharmaceutical products with respect to, among other things, staff qualifications, distribution premises, warehouse, inspection equipment and facilities, management and quality control in order to obtain a GSP certificate to carry out business in China.

Under the terms of this transaction, the Company is required to pay approximately US$1.6 million in cash to the former shareholders of Qingdao Likang.

Second Quarter 2011 Highlights

• Net revenues were $45.4 million, an increase of 48.7% over the second quarter of 2010
• Gross profit was $7.4 million, an increase of 33.2% over the second quarter of 2010, with gross margin of 16.3%
• Operating income was $5.5 million, an increase of 55.4% over the second quarter of 2010
• Net income was $3.9 million, or $0.15 per diluted share, an increase of 72.6%, as compared to $2.3 million, or $0.12 per diluted share, for the same period in 2010
• In April 2011, Global Pharm established two TCM herbal plantation companies located in Jinan city of Shandong province, and Bozhou city of Anhui province
• In May 2011, the company successfully acquired two city-level pharmaceutical distributors in the cities of Zibo and Tai'an of Shandong province

"We are pleased that Global Pharm had a strong operating performance during the second quarter of 2011, delivering solid operating results, expanding our higher margin TCM herbal cultivation business and strengthening our sales coverage in Shandong province through acquisitions of two city-level distributors. A significant synergy is emerging through the integrated value chain extending to our business units. We will stick to the selective acquisition strategy to enhance our local market leadership by expanding our market coverage and enlarging our sales channels," commented Mr. Yunlu Yin, Chief Executive Officer of Global Pharm.

Business Outlook

"For the first half of 2011, with our focus in the Shandong province market, we are very pleased with the performance of our distribution business and the expansion of our sales network," said Mr. Yunlu Yin, Chief Executive Officer of Global Pharm. "For the six months ended June 30, 2011, we sold approximately 11,800 different types of products, had more than 4,250 clients and expanded our distribution coverage into the cities of Zibo and Tai'an of Shandong province. The Company effectively utilized its developing intensive purchase power in Shandong province for more attractive procurement prices and valued-added services from pharmaceutical manufacturers."

Subsequent to the second quarter of 2011, the Company completed acquisitions of a TCM herbal pieces processing plant in Bozhou city of Anhui province and a city-level distributor in Weifang city of Shandong province and, through various contractual arrangements, the Company indirectly manages a distributor in Guangdong province, who supplies to more than 1,200 local chain drugstores. For the remaining six months of 2011, the Company expects to focus its efforts on consolidating the newly acquired units, in order to deliberately integrate its value chain vertically. The Company's consolidation goals are to enrich its product portfolio, leverage its aggregate sales by upgrading the effectiveness of its sales channel and intensify its purchasing power for obtaining more profit-enhancing products. With the proven track record of the Company's acquisition capability, it will continue to selectively acquire more distributors who will offer outstanding complementary benefits to its business.

Financial targert goals pertaining to a recent acquisition:

The Purchaser (GPHG) shall, within twenty (20) Business Days after it receives the 2011 Financial Statements, release the following amount of Pledged Shares to the Sellers subject to the following terms:

(i) all of the Pledged Shares, if the consolidated net revenue of the Company according to the 2011 Financial Statements is no less than RMB275,000,000;

(ii) 50% of the Pledged Shares, if the consolidated net revenue of the Company according to the 2011 Financial Statements is below RMB275,000,000 but no less than RMB250,000,000; or

(iii) none of the Pledged Shares, if the consolidated net revenue of the Company according to the 2011 Financial Statements is below RMB250,000,000 (.

On August 3, 2011, Global Pharm Holdings Group, Inc., a company incorporated and existing under the laws of Delaware (“Global Pharm” or the “Company”), entered into a Share Purchase Agreement (the “Acquisition Agreement”) with each of the persons set forth in Schedule B-1 thereto (each a “Seller” and collectively the “Sellers”). Pursuant to the Acquisition Agreement, the Sellers agreed to sell and the Company agreed to purchase the aggregate of 50,000 ordinary shares (“Sale Shares”) in Quantum Magic Integrator Fund Co., Limited.

On July 4, 2011, Shandong Global Pharm Co., Ltd. (“Shandong Global Pharm”), a wholly owned subsidiary of Global Pharm Holdings Group, Inc. (“Global Pharm” or the “Company”), entered into a Merger and Acquisition Agreement (the “Acquisition Agreement”) with Han Lingzhi, Gu Quanhui (collectively, the “Sellers”) and Bozhou Xinghe Pharmaceutical Co., Ltd. (“Bozhou Xinghe”). Pursuant to the Acquisition Agreement, the Sellers agreed to sell their respective 62% and 38% equity interests in Bozhou Xinghe to the Company for consideration of RMB20 million in cash, to be paid in full within 15 days after the transfer of Bozhou Xinghe’s business license by the Sellers to Shandong Global Pharm.

SHENZHEN, China, July 8, 2011 /PRNewswire-Asia/ – Global Pharm Holdings Group, Inc. (OTCBB:GPHG) (“Global Pharm” or the “Company”), a China-based growing vertically integrated pharmaceutical company engaged in pharmaceutical-related products distribution and Traditional Chinese Medicine (“TCM”) herbs cultivation through its seven subsidiaries in Anhui, Jilin and Shandong provinces, today announced that, on July 5, 2011, it completed the acquisition of 100% equity interests of a TCM herbal pieces processing plant: Bozhou Xinghe Pharmaceutical Co., Ltd. (“Bozhou Xinghe”). With the completion of this acquisition, Bozhou Xinghe becomes a wholly owned subsidiary of Shandong Global Pharm Co., Ltd. (“SD Global Pharm”), a wholly owned subsidiary of the Company. Bozhou Xinghe is a Good Manufacturing Practice (GMP) certified, TCM herbal pieces processing manufacturer located in Bozhou City, the largest TCM herbs trading market in the world.
 
“We are very excited to welcome Bozhou Xinghe and be afforded the opportunity to add the TCM herbal processing business segment into our integrated value chain,” stated Mr. Yunlu Yin, Chief Executive Officer of Global Pharm. “This acquisition represents a direct complement to our TCM plantation business in Bozhou and Jinan city by adding up an indispensable production capacity, so that our cultivated raw herbs can be processed directly at our own plant. In addition, this facility offers us a production platform to produce TCM pharmaceutical products in the near future. This direct-processing with our stringent quality control will further guarantee our product quality, which will reward us a premium price in the market. The new plant will also allow us to customize some herbal pieces products upon distribution customers’ request, therefore, expanding our distributed product portfolio. We believe we will offer more quality products for our rapid growing sales channels.”
 

GeoTeam Note: 2010 vs. 2009 EPS

• Full Year: $0.78 vs. $0.57
• Fourth Quarter:  $0.36 vs. $0.30

On March 21, 2011, we obtained a Certificate of Approval from the Anhui Provincial Government for the establishment of a Joint Venture, “Anhui Sino-Green TCM Tech Development Co., Ltd” (“Sino-Green TCM Tech”), with foreign investment in the People’s Republic of China.

On April 6, 2011, we obtained the Business license for Sino-Green TCM Tech. Wisdom Fortune, our Hong Kong subsidiary, together with Anhui Qianyi Pharmaceutical Co., Ltd. (referred to as Qianyi Pharmaceutical), a PRC company, established Anhui Sino-Green TCM Tech Development Co., Ltd. (referred to as Sino-Green TCM Tech), a Joint Venture in Bozhou City, Anhui Province. Wisdom Fortune will invest $9.7 million and Qianyi Pharmaceutical will invest $0.3 million, reflecting 97% and 3%, respectively, of the ownership of Sino-Green TCM Tech to the Joint-Venture. Qianyi Pharmaceutical will have a total investment of $20 million and registered capital of $10 million. Wisdom Fortune and Qianyi will invest an additional $10 million in proportional amounts in the future. The Company is required to pay $1,455,000 registered capital within three months and $8,245,000 registered capital within two years after April 6, 2011. The Company will fund the registered capital by using its working capital.

The Joint Venture with a local company in Bozhou City represents a new stage in the development of a TCM cultivation base in Bozhou over the next five years, and is based on the Letter of Intent recently signed with the Bozhou Municipal Government. The total project is comprised of the following key components: the rent of 100,000 mu (about 6,667 hectares) of planting base from 2011 to 2015; the construction of an integrated TCM facility for health-care product research and development (refer to as R&D), herbal processing, and TCM extraction during 2011 to 2013; and the establishment of a modern information platform for the collection, compilation and analysis of TCM industrial information during 2011 and 2012. We, together with the support of the Bozhou municipal government, plan to invest approximately RMB 500 million (about $76.1 million) in aggregate capital expenditures over the next five years to support the project. The Company intends to finance future capital expenditures related to the joint venture through a combination of working capital, and possibly additional debt and equity financings.

We believe that the funds and cash generated from operations available to us are adequate to meet our operating needs in 2011.

The Company intends to finance future capital expenditures related to a recent joint venture through a combination of working capital, and possibly additional debt and equity financings.

SHENZHEN, China, March 1, 2011 /PRNewswire-Asia/ -- Global Pharm Holdings Group, Inc. (OTC Bulletin Board: GPHG) ('Global Pharm" or the "Company"), a Shenzhen-based, leading vertically integrated pharmaceutical company engaged in pharmaceutical product distribution, herbal Traditional Chinese Medicine (TCM) planting and processing, through its subsidiaries in Anhui, Jilin, and Shandong provinces, today announced that it has signed a Letter of Intent with the Bozhou municipal government to develop a Traditional Chinese Medicine base in Bozhou City, Anhui province, over the next five years.

The project is comprised of the following key components: the lease of 100,000 mu (about 6,667 hectares) of planting base from 2011 to 2015; the construction of an integrated TCM facility for health-care product R&D, herb processing, and TCM extraction during 2011 to 2013; and the establishment of a modern information platform for the collection, compilation, and analysis of TCM industrial information during 2011 and 2012. Global Pharm, together with the support of the Bozhou municipal government, plans to invest approximately RMB 500 million (about $76.1 million) in capital expenditures over the next five years to support the project.

Company Snapshot:

Engaged in the wholesale and retail distribution of pharmaceuticals-related products

Industry Snapshot Provided by the Company:

• As part of its Eleventh Five-Year Plan (2006-2010), the PRC government has actively supported the PRC healthcare industry by creating a number of incentives and enacting programs, including increased funding for building additional hospitals, research centers and other healthcare facilities, enacting healthcare reforms and standards and subsidizing healthcare services for its citizens. The PRC government has announced it will spend an additional RMB850 billion on healthcare programs from 2009 to 2011, which will significantly bolster the PRC healthcare market.

• The pharmaceutical distribution market connects pharmaceutical manufacturers with pharmaceutical retailers, including hospital pharmacies, drugstore chains and independent community drugstores, community clinics and other points of sale retail outlets. Distributors can increase the operating efficiencies of manufacturers by acting as the latter’s direct customers and relieving them from the burden of delivery to, and collecting payment from, numerous retailers. On the other hand, by using distributors as suppliers, retailers benefit from reduced transaction costs and administrative burdens as well as improved confidence in their product supply.

Post Merger Share Calculation:

• 24,200,000: Pre reverse merger outstanding shares 
• 1,800,000: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  26,000,000

Financial Snapshot: December Year End

2009 vs. 2008

• Revenues: $86.8 million vs $54.5 million
• Net Income: $10.9 million vs. $6.1 million

Nine Months 2010 vs 2009

• Revenues: $90.2 million vs. $57.4 million
• Net Income: $10.9 million vs. $7.1 million 

Pro Forma Valuation: using current price of $3.55 and new share count

• Trailing EPS (ADS): $0.28
• Trailing P/E: 12.5