In the second half of 2011, we plan to focus on improving the performance of our existing retail stores while selectively pursuing opportunities to expand our retail pharmacy network. We are currently launching 21 new retail pharmacy stores in Guangxi. As a group, these stores are expected to generate annual revenues of approximately $2.6 million and should be fully operational in the second half of 2011. On the distribution side of our business, we expect to commence construction of a state-of-the-art logistics center in the fourth quarter 2011. We are committed to developing a larger and stronger retail and wholesale distribution network, which we expect to yield greater economies of scale and additional synergies across our vertically integrated business model.
We have posted the 2010 SAIC reports for each of China BCT's three subsidiaries to our website. By providing investors with financial information above and beyond required disclosure, we aim to promote transparency and differentiate our Company from our peers.
Looking into 2011, we intend to continue to selectively build or acquire retail pharmacies in Guangxi and surrounding regions, while improving the same store sales volume of our existing portfolio. In wholesale distribution, we plan to develop and invest in a state-of-the-art logistics center and secure more profitable exclusive contracts with hospitals in Guangxi. The centralized bidding process under the New Rural Cooperative Medicare Plan for 2011 is expected to close in the second quarter of 2011, and we expect to win double the bids we won last year, further strengthening our organic growth in wholesale distribution. We will continue to vertically integrate our self-manufactured drugs with our wholesale and retail networks to improve China BCT's overall gross margin.