Want to throw out a couple of things to remember with this company.
They are helping to change the landscape of pharmaceutical distribution.
They also don't make anything, they strictly distribute product to customers, so IMO growth is more important at this stage.
We also know Wang and company are aware of costs. Back in the Nov 15 earnings release, Wang noted they needed to keep costs in check.
They are deeply discounting product to gain market share, some products Wang stated by as much as 40%. Wang states in the 10Q's the objective is to grow the company as rapidly as possible.
Greater purchasing power will result in better discounts for First China (think Walmart). Remember the CT order back in Jan 12' removing pricing information First China was displaying in the 10Q.
I think they will make a profit, may even be small (7% margins is what Doug believed Wang stated, which he also made a point that many competitors were only managing 1-2%)
Also think manufacturing might be a good thing in the future. It seems many Chinese herbs and remedies have a greater margin. If you can manufacture some of these things cheaply, you have your built in customer base.
Just some thoughts for the discussion. Have a good night all as we will have our answers soon