As several of our major products including Clarithromycin Sustained-released Tablets, Itopride Hydrochloride granules and Baobaole chewable tablets have entered into their maturity, we expect to maintain Clarithromycin Sustained-released Tablets sales at its current level and continue experiencing the decrease in sales of Itopride Hydrochloride granules and Baobaole chewable tablets. Additionally, our Hongrui facility renovation work was completed in October 2010 and we have recently received the GMP certificate for this facility. We have relaunched several of the traditional Chinese medicines acquired in the February 2009 Hongrui acquisition and we expect to see more sales being generated from those products for the remaining of the year.
Jiangbo Pharmaceuticals today announced that Laiyang Jiangbo Pharmaceutical Co. has entered into a letter of intent with Shandong Xinkangqi Medical Company, a regional wholesale drug distributor in Shandong Province, pursuant to which Laiyang Jiangbo plans to acquire 100% of the outstanding equity of Xinkangqi. Xinkangqi's unaudited revenue and net income in 2010 are estimated to be approximately $180 million and $4.4 million, respectively. The transaction purchase price will be finalized upon conclusion of the due diligence process. The Company expects that the acquisition will close by the end of September 2011.
"We are very pleased to announce the entry into the LOI with Xinkangqi which we believe has a strong presence in Shandong, one of China's largest provinces with over 94 million inhabitants. Xinkangqi currently distributes many of our products and we anticipate achieving meaningful synergies by vertically integrating our manufacturing operations with Xinkanqi's distribution business after the transaction is closed. We plan to continue to evaluate strategic uses for our substantial remaining cash balance, including additional acquisitions in the fragmented distribution sector. Among our current operational goals, we plan to build Xinkangqi into one of the largest vertically-integrated wholesale drug distributors in Shandong."