- Continues Consolidation of Competitors in Key Markets -
SHENZHEN, China, March 6 /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 entered into a definitive agreement with DongGuan Hui Ren Tang Pharmaceutical Co. Ltd. ("Dongguan HRT") to acquire all of its 18 directly operated chain drugstores in Dongguan City, Guangdong Province for cash consideration of RMB2.3 million (US$0.3 million). This acquisition will bring the total number of China Nepstar drugstores in Dongguan to over 120 by the end of March.
The 18 drugstores operated by Dongguan HRT generated total revenue of RMB12 million (US$1.65 million) in 2007. These stores are mostly located in the Da Lang, Cha Shan and Da Ling Shan districts in Dongguan. China Nepstar expects to take over the operations of the 18 stores in the first half of March. China Nepstar plans to inventory these stores with its own merchandise and will gradually re-brand the stores.
Situated between Guangzhou and Hong Kong, with a population of
approximately 6.4 million at the end of 2007 and an area of 2,465 square
kilometers, Dongguan is one of the most important manufacturing centers in
the Pearl River Delta Region. According to the Dongguan Census Bureau, the
average annual disposable income of Dongguan residents reached RMB27,025 in
2007, representing a 12% increase over 2006. The average resident's annual
consumption reached RMB21,545 in 2007, representing 18% growth over 2006.
According to the Food and Drug Administration of Dongguan, the total number
of drugstores in Dongguan was 4,800 at the end of 2
|SOURCE China Nepstar Chain Drugstore Ltd.|
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