- Entry into Beijing, Strengthening Penetration into Northern China Market -
SHENZHEN, China, July 13 /PRNewswire-Asia/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("China Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that it has entered into a definitive agreement with Beijing Run Ze Tang Drugstore, to acquire its five drugstores in Beijing. This acquisition represents China Nepstar's first retail presence in Beijing, one of the most important markets in China in terms of store traffic and consumption power. The five stores being acquired have an average store size of 170 square meters, and are located in densely populated residential areas in Beijing. Closing of the acquisition is expected to be in August. The stores will be serviced by the Company's regional logistics center in Tianjin, where Nepstar has over 100 stores. Tianjin is approximately 120km to the southeast of Beijing.
Beijing is the capital city of China and one of the four municipalities under the jurisdiction of the central government. Beijing's per capita GDP amounted to RMB63,000 in 2008. At the end of 2008, Beijing had a total residential population of approximately 14 million, and a large number of visitors from China and worldwide. An average Beijing resident enjoyed a disposable income of RMB24,700 in 2008, higher than their counterparts in other affluent regions of mainland China.
Mr. Ian Wade, Co-Chief Executive Officer of China Nepstar, commented, "This acquisition represents the initial step for China Nepstar to enter into the Beijing market, which we believe to have significant development potential. This is also our first chance to showcase Beijing customers our wide product offerings and advanced store management. We plan to continue to expand in Beijing through gradual ramp-up in new store openings and high quality acquisitions."
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retail drugstore chain based on the number of directly operated stores. As of March 31, 2009, the Company had 2,336 stores across 63 cities and 361 stores of its affiliate in Yunnan province, which ceased to be the Company's subsidiary in January 2009, one headquarter distribution center and 12 regional distribution centers in China. Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmacy services and a wide variety of other merchandise, including OTC drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables. Nepstar's strategy of centralized procurement, competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the robust economic growth in China and to take advantage of the demographic trend in China to achieve a strong brand and leading market position. For further information, please go to http://www.nepstar.cn .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's strategic operational plans and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these 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-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Contacts
In China:
Lucia Qian
China Nepstar Chain Drugstore Ltd.
Marketing and IR Director
Tel: +86-755-2641-4065
Email: qianrt@nepstar.cn
In the United States:
Dixon Chen
Grayling
Investor Relations
Tel: +1-646-284-9403
Email: Dixon.chen@us.grayling.com
Ivette Almeida
Grayling
Media Relations
Tel: +1-646-284-9455
Email: ivette.almeida@us.grayling.com
