TransCard Service to Enhance Customer Convenience and Increase Sales
SHENZHEN, China, April 2, 2008 /Xinhua-PRNewswire-FirstCall/ -- 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 signed an agreement with Shenzhen Tong TransCard Co. Ltd., under which Nepstar will install TransCard POS equipment (TransCard POS readers) in all Shenzhen outlets to enable customers to make purchases with or recharge their TransCards. The TransCard service will add a unique convenience to a customer’s shopping experience at Nepstar stores in Shenzhen, and has the potential to generate more sales for these outlets.
The TransCard, similar to the Oyster card used in London and Octopus card used in Hong Kong, is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Shenzhen. At present, it is mainly used by cardholders to pay for public transportation in Shenzhen, a city with 8.5 million residents in Guangdong province, Southern China.
TransCard was launched in Shenzhen in April 2006, with the full support of the Shenzhen municipal government. By the end of 2007, over two million cards were sold, driving 1.8 million transactions per day. Currently, one in every five residents in Shenzhen holds a TransCard. Shenzhen Tong TransCard, the issuer and operator of the TransCard service, estimates that an additional four million cards will be sold in 2008.
Nepstar is the operator of the largest drugstore chain in Shenzhen, with 311 outlets as of December 31, 2007. The Company plans to begin the installation of TransCard POS readers in its outlets in May and expects to equip 100 stores with the TransCard POS readers by the end of June. All of Nepstar’s Shenzhen stores are expected to provide TransCard service by the end of September 2008.
Mr. Jiannong Qian, CEO of China Nepstar, said, “The Shenzhen TransCard program is another example of our dedication to offering customers the best possible service and convenience. Our ability to leverage China Nepstar’s broad network of stores and develop partnerships with key public vendors, such as Shenzhen Tong TransCard, to increase traffic flow to our stores is a testament to the brand strength we have built and our constant drive for innovation. We are seeking similar opportunities with municipal transit authorities in other cities in China where we have already established an extensive presence. Our goal is to fully integrate China Nepstar into the daily life of urban residents throughout China.”
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China’s largest retail drugstore chain. As of December 31, 2007, the Company had 2,002 stores in 62 cities and 11 regional distributional centers in China. It uses directly operated stores, centralized procurement and a network of regional distribution centers to provide customers with high-quality, professional and convenient pharmacy services and a wide variety of other merchandise, including over-the-counter (“OTC”) drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables and seasonal and promotional items. China Nepstar’s strategy of competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the robust demographic and economic growth trends 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 27A of the Securities Act of 1933, as amended, and 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 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 registration statement on Form F-1. 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.
For more information, please contact:
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
The Global Consulting Group
Investor Relations
Tel: +1-646-284-9403
Email: dchen@hfgcg.com
Ivette Almeida
The Global Consulting Group
Media Relations
Tel: +1-646-284-9455
Email: ialmeida@hfgcg.com