China BCT Pharmacy Group, Inc. reported consolidated earnings results for the fourth quarter and fiscal year ended December 31, 2011. For the quarter, the company reported sales revenue of $66,287,438 against $66,763,418 a year ago. Income from operations was $9,497,565 against $9,447,649 a year ago. Income before income taxes was $9,023,505 against $10,035,342 a year ago. Net income was $6,880,564 against $7,404,445 a year ago. Basic and diluted earnings per share was $0.15 against $0.19 a year ago. Revenue from the company's pharmaceutical distribution segment decreased 4% year-over-year to $48.7 million, or 73% of total revenue in the fourth quarter of 2011, as it was negatively impacted by the new contracts under the hospital bidding process that ended in October. Revenue from the company's retail pharmacy segment grew 10% year-over-year to $13.9 million, or 21% of total fourth quarter revenue, partly due to the opening of four in-store TCM clinics during the quarter. Revenue from the company's manufacturing segment rose 7% year-over-year to $3.7 million, or 6% of total fourth quarter revenue. Excluding a non-cash benefit related to change in the fair value of warrant liabilities and excluding share-based compensation expense, fourth quarter 2011 non-GAAP adjusted net income was $7.8 million, or $0.21 per diluted share, compared to non-GAAP adjusted net income of $7.0 million, or $0.18 per diluted share in the fourth quarter of 2010. For the year, the company reported sales revenue of $257,487,138 against $200,813,260 a year ago. Income from operations was $42,199,469 against $35,377,076 a year ago. Income before income taxes was $42,226,830 against $34,774,698 a year ago. Net income was $31,190,530 against $25,688,592 a year ago. Basic and diluted earnings per share was $0.72 against $0.67 a year ago. Net cash flows used in provided by operating activities was $5,781,213 against net cash flows provided by operating activities of $15,889,034 a year ago. Addition of property, plant and equipment was $4,071,623 against $450,106 a year ago. Excluding non-cash expense related to change in the fair value of warrant liabilities and share-based compensation expense, adjusted net income was $31.7 million, or $0.83 per diluted share, as compared to $26.4 million, or $0.68 per diluted share for the year ended December 31, 2010. For 2012, the company are targeting double digit revenue growth driven by ability to develop and leverage new wholesale contracts at the supplier and hospital levels, expansion of the in-store TCM concept at retail stores and greater output from manufacturing operation. The company targeting improved profitability as the company merge more small stores into larger ones with TCM clinics and expect to open two more in the first quarter and one more in the second quarter. The company announced that for the longer term to become increasingly efficient to create distribution and logistics center at an estimated cost of $22 million. One hundred acres of land are under negotiation with the government as the site for the center and as soon as the arrangement is settled will begin construction. The company targeting completion of phase 1 by the end of 2012. The company expects to create larger, attractively refurbished retail stores and close some smaller ones again in 2012 to create higher revenue, more profitable stores. The company targeting a 20 to 30 store program that will cost an estimated $11 million.