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In the first ten months of 2009, the six drugstores being acquiredgenerated unaudited revenues of approximately RMB6 million. These stores havean average store size of 140 square meters, and are located in denselypopulated residential areas in Beijing. Together with the five stores acquiredin July 2009, all Nepstar's Beijing stores will be serviced by the Company'sregional logistics center in Tianjin, where Nepstar has over 100 stores.Tianjin is approximately 120km to the southeast of Beijing.
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Mr. Ian Wade, Chief Executive Officer of China Nepstar, commented, "In thesecond half of 2009, we are encouraged by Chinese economic recovery andrevived consumer confidence, which support our decision to expand in newmarkets. Beijing has always been one of the most important markets for ChinaNepstar given the high consumption power of its local residents. Since ouracquisition of Beijing Ze Run Tang to make our inroad to Beijing, we havecompleted the renovation and re-branding of four acquired stores so far. Weare confident that we will be able to improve the profitability of theseacquired stores very soon. We will continue to seek good acquisition targetsin Beijing and further expand our footprint in this important market."
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retaildrugstore chain based on the number of directly operated stores. As ofSeptember 30, 2009, the Company had 2,337 stores across 67 cities, oneheadquarter distribution center and 12 regional distribution centers in China.Nepstar uses directly operated stores, centralized procurement and a networkof distribution centers to provide its customers with high-quality,professional and convenient pharmacy services and a wide variety of othermerchandise, including OTC drugs, nutritional supplements, herbal products,personal care products, family care products, and convenience productsincluding consumables. Nepstar's strategy of centralized procurement,competitive pricing, customer loyalty programs and private label offerings hasenabled it to capitalize on the robust economic growth in China and to takeadvantage of the demographic trend in China to achieve a strong brand andleading market position. For further information, please go tohttp://www.nepstar.cn .
Safe Harbor Statement
This press release contains forward-looking statements. These statementsconstitute "forward-looking" statements within the meaning of Section 21E ofthe Securities Exchange Act of 1934, as amended, and as defined in the U.S.Private Securities Litigation Reform Act of 1995. These forward-lookingstatements can be identified by terminology such as "will," "expects,""anticipates," "future," "intends," "plans," "believes," "estimates" andsimilar statements. Among other things, the quotations from management in thispress release and the Company's strategic operational plans and businessoutlook, contain forward-looking statements. Such statements involve certainrisks and uncertainties that could cause actual results to differ materiallyfrom those in the forward-looking statements. Further information regardingthese and other risks is included in the Company's filings with the U.S.Securities and Exchange Commission, including its annual report on Form 20-F.The Company does not undertake any obligation to update any forward-lookingstatement as a result of new information, future events or otherwise, exceptas required under applicable law.For more information, please contact: In China: Lucia Qian China Nepstar Chain Drugstore Ltd. Vice President, IR Phone: +86-755-2641-4065 Email: [email protected] In the United States: Dixon Chen Grayling Investor Relations Phone: +1-646-284-9403 Email: [email protected] Ivette Almeida Grayling Media Relations Phone: +1-646-284-9455 Email: [email protected]
SOURCE China Nepstar Chain Drugstore Ltd.
