SHENZHEN, China, May 27 /PRNewswire-Asia-FirstCall/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or "the Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced its unaudited financial results for the first quarter ended March 31, 2009.
In January 2009, Nepstar's board of directors approved the termination of a voting rights assignment agreement which assigned 30% of the total voting rights of Yunnan JianZhiJia Chain Drugstore Co. Ltd. ("JZJ") to Nepstar. As of December 31, 2008, JZJ had 355 drugstore outlets, all of which were located in Yunnan province in southwestern China. As a result of the termination of the voting rights assignment agreement, Nepstar no longer consolidated JZJ's financials beginning in the first quarter of 2009, and the financial results of JZJ was accounted for under the equity method.
To facilitate comparability of figures between periods presented, pro forma financial information is presented to show the accounting impact of the termination of the voting rights assignment agreement as if that had been taken place in the beginning of the relevant period.
For the quarter ended March 31, 2009: -- Revenue was RMB506 million (US$74 million), reflecting a 12.1% increase compared to revenue of RMB 451 million in the first quarter of 2008 on pro forma basis -- Net income was RMB30 million (US$4 million) -- Net cash flow from operations was RMB93 million (US$14 million)
"As the global economic crisis continues to drive declines in export
oriented businesses in southern China, many migrant workers have returned to
their rural homes, which has significantly shifted consumption trends,"
commented Mr Ian Wade, Co-Chief Executive
|SOURCE China Nepstar Chain Drugstore Ltd.|
Copyright©2009 PR Newswire.
All rights reserved