First China Pharmaceutical Group, Inc. FCPG
OTCQB / Common Stock
Corporate Overview
First China Pharmaceutical Group, Inc. is a growing pharmaceutical distribution company providing pharmaceutical products to drug stores, medical clinics and hospitals in the People's Republic of China. As part of its business strategy, the Company has acquired the assets of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT) of Yunnan Province (pop. 45,710,000). XYT was a profitable provincial pharmaceutical distributor offering approximately 5,000 health products-1,000 over-the-counter drugs, 1,000 prescription drugs, 2,000 prepared Chinese medicines and 1,000 supplements. Currently the Company has over 4,700 customers and supplies approximately 10% of their inventories. The company was founded in 2002 with offices and warehouse space in Kunming City, Yunnan Province and originally achieved profitability in 2003.
First China Pharmaceutical Group has a significant strategic advantage over most of its competitors as it has acquired a "License of Internet Pharmacy Information Service" in Yunnan Province, enabling the organization to bypass municipal and county pharmaceutical distributors and provide products directly to its pharmacy, hospital and clinic customers. The process of reviewing applications for online drug distribution has been suspended by the Chinese government due to several cases of fraud where prescription drugs have fallen into the hands of unlicensed practitioners.
First China Pharmaceutical Group will leverage its ability to fulfill orders over the internet to cut out two distribution layers and approximately 40% in total pricing markup. By bypassing city and county distributors, the Company will be able to achieve higher margins while providing pharmaceuticals to pharmacies, hospitals and clinics at costs below the current distribution model.
First China Pharmaceutical's short term objective is to broaden its product line from 5,000 products to 30,000 and include significantly more Western medicines as well as traditional Chinese drugs and herbs. By expanding its product line six-fold and offering products at a lower price than major competitors, the Company expects to be able to become its customers' primary distributor, supplying more than 80% of the pharmaceutical products they require. In addition to selling significantly more products to its 4,700+ existing customers, the Company plans an aggressive sales and campaign to attract 5,000 new primary customers.
Advantageous Corporate Structure
First China Pharmaceutical Group is a public company that owns 100% of First China Pharmaceutical Group, Limited (FCPG-HK), a Hong Kong company that in turns owns 100% of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT). This corporate structure was created to establish XYT as a Wholly Foreign Owned Enterprise (WFOE), a limited liability company operating in China and wholly owned by foreign investors. WFOE's enjoy regulatory, revenue, currency, intellectual property protection and financial advantages over domestic joint venture partnerships in China.
First China Pharmaceutical Group's management team has a wide range of executive and operating experience. All have been involved with successful start up companies and have a thorough knowledge of the pharmaceutical industry in China.
Proven Experience
First China Pharmaceutical Group's management team has a wide range of executive and operating experience. All have been involved with successful startup companies and have a thorough knowledge of the pharmaceutical industry in China. View management section.
First China Management
Mr. Zhen Jiang Wang
Chairman and Chief Executive Officer
Mr. Wang founded Kun Ming Xin Yuan Tang Pharmacies Co., Ltd. (XYT) in 2002 and currently serves as General Manager. He held the position of Executive Director of Kun Ming Feng Ning Department Store from 1998 to 2001. He served as General Manager of Yun Nan Tuo Xin Equipment and Electronics Trading Co., Ltd. from 1994 to 1997. Mr. Wang graduated from He Bei Architecture Institute of P.R. China in 1994 with a degree in Architectural Engineering.
Ms. Jing Gong
President
Ms. Gong founded Kun Ming Xin Yuan Tang Pharmacies Co., Ltd. (XYT) in 2002 and acted as executive director until 2009. She currently serves as General Manager. Ms. Gong served as General Manager of Kun Ming Feng Ning Department Store from 1998 to 2001. She held the position of Sales Manager of Yun Nan Tuo Xin Equipment and Electronics Trading Co., Ltd. from 1994 to 1997. Ms. Gong graduated from He Bei University of P.R. China in 1999 with a degree in Economic Management.
Mr. Yong Kang Chen
Senior Vice President, Quality Control
Mr. Chen has served as Chief Supervisor of Pharmaceutical Quality of Kun Ming Xin Yuan Tang Pharmacies Co., Ltd. (XYT) since 2002. From 1997 to 2002 he held the position of Chief Supervisor for Kun Ming Municipal Pharmacies Co., Ltd. From 1990 to 1997 he served as Director of Kun Ming Pharmaceutical Inspection Department. From 1987 to 1990 Mr. Chen acted as Director of Dong Guan Science and Technology Committee. From 1983 to 1987 he was Vice Director of Dong Guan Bureau of Hygiene. From 1973 to 1983 he served as Director of Pharmaceutical Inspection of Dong Chuan City. From 1963 to 1973 Mr. Chen was Director of Pharmaceutical Section for No. 1 People's Hospital of Dong Chuan City. Mr. Chen graduated from Nan Jing Pharmaceutical College with a Pharmacy degree in 1963.
Ms. Yi Jia Li
Chief Financial Officer
Ms. Li has served as Financial Manager for Kun Ming Xin Yuan Tang Pharmacies Co., Ltd. (XYT) since 2009. From 2005 to 2009, she held the position of Financial Manager for Yun Nan Rui Ming Audio and Video Equipment Co., Ltd. From 2000 to 2005 she acted as Accounting Manager for Yun Nan Bai Feng Real Estate Co., Ltd. Ms. Li graduated from Yun Nan University in 1999 with a degree in Accounting and Audit.
Mr. Gregory D. Tse
Director
Mr. Tse has over 25 years of international finance, marketing, media, PR and advertising experience with an extensive brand management track record in North America, Hong Kong and China. In China, Mr. Tse has helped many international brands to enter into the marketplace before moving on to become one of China's first communications/media M&A specialists. Mr. Tse most recently served as Head of China Advisory for Calneva Financial Group from July 2004 to the present date, providing investment banking services for merger and acquisitions in the information technology, media, energy, infrastructure and natural resources areas. Previously, Mr. Tse's media and marketing communications career included heading up several multinational advertising and PR agencies, including from May 1997 to June 2004, when Mr. Tse served as Managing Director at Publicis China, a communications group, were he managed the China national offices. Mr. Tse has also served as a member of the Board of Directors of i-Level Media Group Incorporated (PK: ILVL) from July 2008 to January 2009. Mr. Tse has also traveled extensively in China as the Chief Communications Officer for CORA (China's Old Revolution Area), a NGO with a mandate to develop China's rural areas, and started many humanitarian projects to fund education there. Mr. Tse graduated from the School of Architecture at University of Waterloo, Canada. Mr. Tse was appointed to the Company's Board of Directors due to his over 25 years of experience, primarily in China, as well as his public company board and management experience. The Company believes that Mr. Tse's knowledge of investment banking services and mergers and acquisitions will be an invaluable resource as the Company may seek additional capital to expand its business in the PRC in future. The Company also believes that Mr. Tse's knowledge of brand management and marketing will aid the Company in expanding the brand awareness of its planned pharmaceutical distribution operations.
Mr. Jack Zwick, CPA
Director, Audit Committee Chair
Mr. Zwick is a certified public accountant, and founder of IAPA member firm, Zwick & Banyai, PLLC, certified public accountants in Detroit, Michigan. He is a former managing partner of the metropolitan Detroit office of Laventhol & Horwath (an international CPA firm). He holds CPA certificates in Michigan, New York and Maryland and was promoted to partner at Laventhol & Horwath in 1973. Mr. Zwick became the managing partner of the Detroit office in 1982. He was also an executive director with Grant Thornton (an International CPA firm). Over the years, Mr. Zwick has served clients in many industries, focusing on real estate, manufacturing, pharmaceutical, entertainment, recreation, sports franchises, depleting assets, as well as hospitality and service sector organizations. His expertise encompasses accounting and auditing services, especially pertaining to securities work including initial public offerings of corporations and public limited partnerships, plus tax consulting and litigation support. Mr. Zwick holds a Bachelor of Arts degree in Accountancy and a Master's of Science in Taxation (a specialty within the MBA program) from Wayne State University. He is a member of the American Institute of Certified Public Accountants and the Michigan Association of Certified Public Accountants and a member of Wayne State University's Accounting Department Advisory Board. He currently is the Senior Vice President of finance of Sunrise Sports & Entertainment, LLC, owners of the Florida Panthers of the National Hockey League and is the CFO of American Bio Care, Inc. (a public company).
FIRST CHINA PHARMACEUTICAL GROUP, INC.
INSIDER TRADING POLICY
As adopted on October 15, 2010
THE NEED FOR AN INSIDER TRADING POLICY
The purchase or sale of securities while possessing Material Nonpublic Information (as defined herein) or the selective disclosure of such information to others who may trade is prohibited by United States federal and state laws. As an essential part of your work, many of you have access to Material Nonpublic Information about First China Pharmaceutical Group, Inc. and its subsidiaries (collectively the "Company") or about the Company's business (including information about other companies with which the Company does or may do business).
The Company has adopted this Insider Trading Policy ("Policy") to avoid even the appearance of improper conduct on the part of any Company employee (not just so-called insiders). All Company employees have worked hard over the years to establish a reputation for integrity and ethical conduct. This Policy is designed to further the reputation of the Company and each employee for integrity and good corporate citizenship.
APPLICABILITY OF POLICY
This Policy applies to all transactions in the Company's securities, including common stock, options for common stock and any other securities the Company may issue from time to time, such as preferred stock, warrants and convertible debentures, as well as to derivative securities relating to the Company's stock, whether or not issued by the Company, such as exchange-traded options. It applies to all officers of the Company, all members of the Company's Board of Directors, and all employees of, and consultants and contractors to, the Company and its subsidiaries, who receive or have access to Material Nonpublic Information regarding the Company. This group of people, members of their immediate families, and members of their households are sometimes referred to in this Policy as "Insiders." This Policy also applies to any person who receives Material Nonpublic Information from any Insider. Any person who possesses Material Nonpublic Information regarding the Company is an Insider for so long as the information is not publicly known. Any employee can be an Insider from time to time, and would at those times be subject to this Policy.
POLICY GUIDELINES
General Policy
It is the policy of the Company to oppose the unauthorized disclosure of any nonpublic information acquired in the work-place and the misuse of Material Nonpublic Information in securities trading.
Specific Policies
Trading on Material Nonpublic Information - No director, officer or employee of, or consultant or contractor to, the Company, and no member of the immediate family or household of any such person, shall engage in any transaction involving a purchase or sale of the Company's securities, including any offer to purchase or offer to sell, during any period commencing with the date that he or she possesses Material Nonpublic Information concerning the Company, and ending at the beginning of the Trading Day following the date of public disclosure of that information, or at such time as such nonpublic information is no longer material. As used herein, the term "Trading Day" shall mean a day on which national stock exchanges and the Nasdaq Stock Market ("Nasdaq") are open for trading. A "Trading Day" begins at the time trading begins on such day. This restriction on trading does not apply to transactions made under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1(c) (17 C.F.R. § 240.10b5-1(c)) ("Rule 10b5-1(c)") and approved in writing by the Company (an "approved Rule 10b5-1 trading plan"), as further detailed herein.
Tipping - No Insider shall disclose ("tip") Material Nonpublic Information to any other person (including family members) where such information may be used by such person to his or her profit by trading in the securities of companies to which such information relates, nor shall such Insider or related person make recommendations or express opinions on the basis of Material Nonpublic Information as to trading in the Company's securities. Accordingly, any person subject to this Policy, whether or not aware of Material Nonpublic Information, should refrain from recommending that persons buy, sell, or hold Company Securities or participate in Internet or on-line bulletin boards or chat rooms that discuss Company Securities, should not respond to inquiries from outsiders and should refer all such inquiries in writing to the Chief Executive Officer or corporate officer designated to respond to such inquiries.
Confidentiality of Nonpublic Information - Nonpublic Information relating to the Company is the property of the Company and the unauthorized disclosure of such information is forbidden. In the event any officer, director or employee of the Company receives any inquiry from outside the Company, such as a stock analyst, for information (particularly financial results and/or projections) that may be Material Nonpublic Information, the inquiry should be referred to the Company's counsel, who is responsible for coordinating and overseeing the release of such information to the investing public, analysts and others in compliance with applicable laws and regulations.
APPLICABILITY OF POLICY TO INSIDE INFORMATION REGARDING OTHER COMPANIES
This Policy and the guidelines described herein also apply to Material Nonpublic Information relating to other companies, including the Company's vendors and suppliers ("Business Partners"), when that information is obtained in the course of employment with, or the performance of services on behalf of, the Company. Civil and criminal penalties, and termination of employment, may result from trading on inside information regarding the Company's Business Partners. All officers, directors, employees, consultants and contractors should treat Material Nonpublic Information about the Company's Business Partners with the same care required with respect to information related directly to the Company.
DEFINITION OF MATERIAL NON PUBLIC INFORMATION & INSIDER
Materiality - Insider trading restrictions come into play only if the information you possess is "material." Materiality, however, involves a relatively low threshold. Information is generally regarded as "material" if it has market significance, that is, if its public dissemination is likely to affect the market price of securities, or if it otherwise is information that a reasonable investor would want to know before making an investment decision. Either positive or negative information may be material.
Information dealing with the following subjects is reasonably likely to be found material in particular situations:
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significant changes in the Company's prospects;
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significant write-downs in assets or increases in reserves;
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developments regarding significant litigation or government agency investigations;
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liquidity problems;
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changes in earnings estimates or unusual gains or losses in major operations;
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major changes in management;
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changes in dividends;
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extraordinary borrowings;
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award or loss of a significant contract;
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changes in debt ratings;
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proposals, plans or agreements, even if preliminary in nature, involving mergers, acquisitions, divestitures, recapitalizations, strategic alliances, licensing arrangements, or purchases or sales of substantial assets;
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public offerings; and
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pending statistical reports (such as, consumer price index, money supply and retail figures, or interest rate developments).
Material information is not limited to historical facts but may also include projections and forecasts. With respect to a future event, such as a merger, acquisition or introduction of a new product, the point at which negotiations or product development are determined to be material is determined by balancing the probability that the event will occur against the magnitude of the effect the event would have on a company's operations or stock price should it occur. Thus, information concerning an event that would have a large effect on stock price, such as a merger, may be material even if the possibility that the event will occur is relatively small. When in doubt about whether particular non-public information is material, presume it is material. If you are unsure whether information is material, you should consult the Company's counsel before making any decision to disclose such information (other than to persons who need to know it) or to trade in or recommend securities to which that information relates.
Non-public Information - Insider trading prohibitions come into play only when you possess information that is material and "non-public." The fact that information has been disclosed to a few members of the public does not make it public for insider trading purposes. To be "public" the information must have been disseminated in a manner designed to reach investors generally, and the investors must be given the opportunity to absorb the information. Even after public disclosure of information about the Company, you must wait until the close of business on the second Trading Day after the information was publicly disclosed before you can treat the information as public.
Non-public information may include:
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information available to a select group of analysts or brokers or institutional investors;
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undisclosed facts that are the subject of rumors, even if the rumors are widely circulated; and
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information that has been entrusted to the Company on a confidential basis until a public announcement of the information has been made and enough time has elapsed for the market to respond to a public announcement of the information (normally two or three days).
As with questions of materiality, if you are not sure whether information is considered public, you should either consult with the Company's counsel or assume that the information is "non-public" and treat it as confidential.
Insider - An Insider includes any person who possesses Material Nonpublic Information. Directors, officers, employees, independent contractors and those persons in a special relationship with the Company (i.e., its auditors, consultants or attorneys), including members of their immediate families and members of their households, are most often insiders. A person may retain his/her insider status for up to ninety (90) days or more after leaving the Company.
POTENTIAL CRIMINAL AND CIVIL LIABILITY AND/OR DISCIPLINARY ACTION
Liability for Insider Trading - Pursuant to United States federal and state securities laws, insiders may be subject to criminal and civil fines and penalties as well as imprisonment for engaging in transactions in the Company's securities at a time when they have knowledge of Material Nonpublic Information regarding the Company.
Liability for Tipping - Insiders may also be liable for improper transactions by any person (commonly referred to as a "tippee") to whom they have disclosed Material Nonpublic Information regarding the Company or to whom they have made recommendations or expressed opinions on the basis of such information as to trading in the Company's securities. The Securities and Exchange Commission (the "SEC") has imposed large penalties even when the disclosing person did not profit from the trading. The SEC, the stock exchanges and the National Association of Securities Dealers, Inc. use sophisticated electronic surveillance techniques to uncover insider trading.
Possible Disciplinary Actions - Employees of the Company who violate this Policy shall also be subject to disciplinary action by the Company, which may include ineligibility for future participation in the Company's equity incentive plans or termination of employment.
Company Liability - Although responsibility for compliance with this policy and liability for non-compliance are primarily personal to the individuals involved, violations may result in civil and criminal liability for the Company.
TRADING GUIDELINES AND REQUIREMENTS
Trading During Window Periods
Investment by Company employees in the Company's securities is encouraged. The most appropriate periods to buy or sell the Company's securities are the periods beginning on the third business day following the release of quarterly or annual financial results and ending on the eighth week thereafter (so-called "window periods"). In general, these are the periods when there should be the least amount of inside information about the Company that is unavailable to the investing public. It is permissible to trade at other times. However, you may not buy or sell the Company's securities even during window periods if you are in possession of Material Nonpublic Information.
Black Out Periods
The Company may determine that trading in the Company's securities is inappropriate at any time and may impose a "black out period" where trading is prohibited or restricted on all or a selected group of employees even during an otherwise permitted window period. The Company will make specific announcements to affected employees regarding black out periods as and when necessary.
Pre-Clearance of Trades By Directors, Officers and Certain Other Personnel
In order to assist in preventing inadvertent violations, to insure compliance with timely reporting and to avoid even the appearance of an improper transaction (which could result, for example, where an officer engages in a trade while unaware of a pending major development), the following procedures must be followed by all directors, officers, all persons reporting directly to the officers, and by other employees who may have access to Material Nonpublic Information.
All transactions involving Company securities (acquisitions, dispositions, transfers, etc.) by any member of the above-mentioned groups must be pre-cleared by the Company. Specifically, if you contemplate a transaction, you should contact the Company's Chief Executive Officer in advance. If the Company's Chief Executive Officer is not available, contact the Company's legal counsel. This requirement does not apply to stock option exercises or other periodic or regular savings plan or deferred compensation plan purchases. However, it would cover market sales of option stock following the exercise of the options ("cashless exercise" or "same day sales"). Each proposed transaction will be evaluated to determine if it raises insider trading concerns or other concerns under the United States federal or state securities laws and regulations. Any advice will relate solely to the restraints imposed by law and will not constitute advice regarding the investment aspects of any transactions. In addition, if pre-clearance is denied, the fact of such denial is confidential and may not be disclosed by the person requesting such pre-clearance.
There are several benefits which derive from the Company's pre-clearance procedures. First, the SEC imposes reporting obligations on all directors, executive officers and 10% shareholders. The pre-clearance program will help to assure timely filing by such individuals of Form 4's under Section 16(a) of the Securities Exchange Act of 1934 ("Exchange Act"). Under Section 16(b), a Form 4 must be filed before the end of the second business day following the day on which the transaction was executed, for each non-exempt acquisition or disposition of the Company's equity securities by a reporting person. Failure to timely file Form 4's results in disclosure as a delinquent filing and must be reported by the Company (naming the individual) in its annual report and proxy statement filed with the SEC.
In addition, pre-clearance of all trades will also better enable the Company's officers, directors, and 10% stockholders to avoid violations of the short-swing profit provisions of Section 16(b) of the Exchange Act. Under this rule, Insiders can be required to disgorge any profits realized from the purchase and sale (or sale and purchase) of any non-exempt equity security of the Company within a six month period. Section 16(b) imposes strict liability, and while there is no requirement of intent to violate the section, unintentional or inadvertent violations are not excused. Further, violation of Section 16(b) does not depend on the use or possession of inside information. The Company recommends that Insiders seek advice from counsel in advance of any proposed transaction in the Company's equity securities in order to allow for a review of previously filed Form 4's so as to avoid any potential Section 16(b) liability. Notwithstanding, the Company strongly discourages all such short-swing and short sale transactions by executive officers, directors and certain employees.
Further, while employees who are not executive officers and directors are not prohibited by law from engaging in short sales of the Company's securities, the Company believes it is inappropriate for employees to engage in such transactions and therefore strongly discourages all employees from such activity. The Company has provided, or will provide, separate memoranda and other appropriate materials to its executive officers and directors and those identified employees regarding compliance with Section 16 and its related rules.
If you believe that you may be in possession of Material Nonpublic Information, do not disclose that information without first discussing the same with the Company's Chief Executive Officer.
Individual Responsibility - Every officer, director and other employee, consultant and contractor has the individual responsibility to comply with this Policy against insider trading. An Insider may, from time to time, have to forego a proposed transaction in the Company's securities even if he or she planned to make the transaction before learning of the Material Nonpublic Information and even though the Insider believes he or she may suffer an economic loss or forego anticipated profit by waiting.
TRANSACTIONS BY RELATED PERSONS
The restrictions noted herein that apply to you also apply to: (i) your family members (your spouse, minor children and anyone else living in your household); (ii) partnerships in which you are a general partner or corporations in which you are a controlling shareholder; (iii) trusts in which you are a trustee; and (iv) estates of which you are an executor (collectively, "Related Persons"). Employees are expected to be responsible for the compliance of Related Persons.
CERTAIN EXCEPTIONS
For purposes of this Policy, the Company considers that the exercise of stock options for cash under the Company's stock option plan and/or the purchase of shares pursuant to the Company's employee stock purchase plan, if applicable (but not the sale of any shares issued upon such exercise or purchase and not a cashless exercise (accomplished by a sale of a portion of the shares issued upon exercise of an option)) are exempt from this Policy, since the other party to these transactions is the Company itself and the price does not vary with the market, but is fixed by the terms of the option agreement or plan, as applicable. In addition, for purposes of this Policy, the Company considers that bona fide gifts of the securities of the Company are exempt from this Policy.
10b5- 1 PLANS
The Company recognizes the potential need of employees, and allows employees, to enter into Rule 10b5-1 plan arrangements with brokerage and investment firms to facilitate the trading of Company securities. These arrangements should be pre-cleared by the Company's legal counsel and the Chief Executive Officer prior to execution to insure full compliance with Rule 10b5-1.
INQUIRIES & COMPANY ASSISTANCE
Any person who has any questions about specific transactions or as to any of the matters discussed in this Policy may obtain additional guidance from the Company's Chief Executive Officer or legal counsel. Remember, however, the ultimate responsibility for adhering to this Policy and avoiding improper transactions rests with you. It is imperative that you use your best judgment.
CERTIFICATION
Employees may be required to certify their understanding of and intent to comply with this Policy. Officers and directors and other key employees may be required to certify compliance on an annual basis.
Opportunity Overview
In the People's Republic of China disposable income, standards of living, government support for healthcare, percentage of the population over sixty, and lifestyle related diseases are on the rise, creating increased health consciousness and demand for health products. With health becoming a top priority for the world's most populous nation and second largest economy, China's pharmaceuticals market is thriving.
The global market for pharmaceuticals is expected to grow nearly $300 billion over the next five years, reaching $1.1 trillion in 2014. Global pharmaceutical sales growth of 4 to 6% is expected this year. In 2009, the market grew 7% to reach $837 billion. China's pharmaceutical market is expected to continue to grow at a 20+ percent pace annually. (IMS Health, "IMS Market Prognosis", April 10, 2010).
China is arguably the most attractive emerging pharmaceutical market. Through 2013, BMI forecasts a robust annual growth rate with annual per capita spending rising from $27.60 to $54.40. Spending as a percent of GDP is expected to increase from 0.97% to 1.16%. Key drivers of market expansion are the introduction of universal health insurance, a booming economy, more chronic diseases, and an aging population. By 2018, annual pharmaceutical sales will have reached a staggering $132.7 billion. (BMI, "China Pharmaceuticals and Healthcare Report Q4", October 2009)
In April 2009 the Chinese government announced a new set of reforms aimed at universal, safe, affordable and effective basic healthcare for the nation's 1.3 billion population by 2020. The government has committed to spending an additional $124 billion on healthcare between 2009 and 2011. (OECD, "Economic Survey of China", February 2010)
China's pharmaceuticals market, including nutritional products and consumer drugs, will more than double to $110 billion by 2015 from $44 billion in 2008, Credit Suisse AG estimated in a November 2009 report.
Advantages
Company Overview
First China Pharmaceutical Group is a profitable provincial pharmaceutical distributor providing drug logistics and distribution in Yunnan Province, China (pop. 45,710,000).
Competitive Advantage
First China Pharmaceutical Group is the only pharmaceutical distribution company in Yunnan Province licensed to fill orders over the internet. Provincial and National governing bodies have placed an indefinite moratorium on granting new internet distribution licenses.
The Opportunity
China's pharmaceutical industry will grow at an average annual rate of 22% from 2010 to 2019, according to a June 23 report issued by China's Southern Medicine Economic Research Agency.
Healthy Growth Opportunity with First China Pharmaceutical Group
First China Pharmaceutical Group is a growing pharmaceutical distribution company generating significant revenue from the sale of pharmaceutical products in China. The Company operates through newly acquired Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT), a Wholly Foreign Owned Enterprise (WFOE). First China Pharmaceutical Group currently provides approximately 5,000 drugs to more than 4,700 customers in China's Yunnan Province including pharmacies, hospitals and clinics.
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One of a few companies to secure an online pharmaceutical distribution license in Yunnan Province
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Profitable operations with significant opportunity to expand sales to existing customers and attract new customers
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Generated $17,809,836 in revenue and 2,008,093 in gross profit in 2009
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China's pharmaceutical market is growing more than 20% per year
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Strong foothold in Yunnan Province, working to build a national pharmaceutical distribution network
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Skilled management team with proven experience in China's pharmaceutical industry
News Releases
News Releases RSS Feed
Historical Press Releases
This website contains historical and archived press releases for First China Pharma Group. The information in these press releases is historical in nature, has not been updated, and is current only to the date indicated in the particular press release. This information may no longer be accurate and therefore you should not rely on the information contained in these press releases. To the extent permitted by law, First China Pharma Group and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.
Investor Highlights
First China Pharmaceutical Group-a Healthy Growth Opportunity
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Secured internet marketing and processing pharmaceutical distribution license in Yunnan Province
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Profitable operations with significant opportunity to expand sales to existing customers and attract new customers
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Working to build a nationwide pharmaceutical distribution network
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Proprietary online ordering and fulfillment system
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Opportunity to expand online sales to other provinces
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Established sales network covering 15+ regions
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Existing base of 4,700 downstream customers
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Annual sales of more than $17 million
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32,300 square feet of warehouse space
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Partnership with Deppon Logistics, the nation's largest logistics company.
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Tremendous potential for significant return on investment
Corporate Structure
China (PRC)
Number 504, West Ren Min Road,
Kunming City, Yunnan Province People's Republic of China, 650000 | Hong Kong
Room 1301, 13th Floor,
CRE Building,
303 Hennessy Road
Wanchai, Hong Kong. |
Investor Relations
Evergreen Investor Relations, Inc.
Phone: 1-888-518-3274
Email: info@firstchinapharma.com | Legal Counsel
Greenberg Traurig, LLP.
1201 K Street, Suite 1100
Sacramento, CA 95814 |
| Auditors
EFP Rotenberg
280 Kenneth Drive, Suite 100
Rochester, NY 14623 | Transfer Agent
Routh Stock Transfer, Inc.
6860 North Dallas Parkway, Suite 200,
Plano, Texas 75024
T: (972) 381-2782 |
OTC: FCPG
CUSIP no. 31948N 109
State Of Incorporation: NV
Year Of Incorporation: 2007
Fiscal Year End: 03/31 |
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