Nepstar's effective tax rate was 28.4% for third quarter of 2009, compared to 26.7% for the same period in 2008 on pro forma basis. The increase in effective tax rate was primarily due to relatively higher portion of Nepstar's taxable profits being generated by subsidiaries subject to the PRC statutory tax rate, rather than the preferential rate.
Net income for the third quarter of 2009 was RMB37 million (US$5 million), which represented RMB0.18 (US$0.03) basic and diluted earnings per ordinary share and RMB0.35 (US$0.05) basic and diluted earnings per American depositary share ("ADS"). This compares to net income of RMB36 million, which represented RMB0.17 basic and RMB0.16 diluted earnings per ordinary share and RMB0.34 basic and RMB0.32 diluted earnings per ADS for the same period in 2008. The total number of outstanding ordinary shares of the Company as of September 30, 2009 was 210 million. The weighted average number of ADSs for the third quarter of 2009 was 105 million. Each ADS represents two ordinary shares of the Company.
As of September 30, 2009, Nepstar's total cash, cash equivalents and current bank deposits were RMB1,807 million (US$265 million), long-term bank deposits were RMB200 million (US$29 million), held-to-maturity investment securities were RMB400 million (US$59 million) and total shareholders' equity was RMB1,735 million (US$254 million).
Mr. William Dai, the Chief Financial Officer of Nepstar, stated, "We continue to exercise financial discipline on cost control and cash flow management. Our ability to consistently generate strong free cash flow demonstrates that our financial health strengthened throughout the economic recovery, and paves the way for the further expansion of our store network in 2010."
On August 24, 2009, Nepstar declared a special dividend of US$1.50 per ADS,
or approximately US$156 million. Around December 1, 2009, the spec
|SOURCE China Nepstar Chain Drugstore Ltd.|
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