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China Nepstar Chain Drugstore Reports Net Income Growth of 304.4% for First Quarter 2008
Date:5/28/2008

Successful Integration of Recent Acquisitions; Continued Focus on

Operational Efficiencies

SHENZHEN, China, May 28 /Xinhua-PRNewswire-FirstCall/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) (''Nepstar'' or ''the Company''), the largest retail drugstore chain in China, today announced its unaudited financial results for the first quarter ended March 31, 2008.

Financial Highlights

For the first quarter ended March 31, 2008:

-- Revenue rose 16.8% to RMB543 million (US$77 million) compared to

the same period in 2007

-- Gross margin reached to 47.8%, compared with 37.7% for the same

period in 2007

-- Net income increased by 304.4% to RMB55 million (US$8 million)

compared to same period in 2007

''We are pleased to report that Nepstar successfully met the rather unusual challenges of the first quarter with determination and creativity,'' commented Mr. Jiannong Qian, Chief Executive Officer of Nepstar. ''The most severe snowstorms in China's recent history and the resulting widespread transportation dysfunction substantially reduced store traffic and caused certain out-of-stock problems at some of our stores in January and February. In response to this crisis, our team implemented a number of innovative measures to increase sales and improve profitability in the second half of February and March.''

''During the first quarter, we reorganized our 11 regional companies into 47 subdivisions and assigned managers to each division to focus on same store sales growth and new store openings. Our marketing team launched various promotions to attract customers to mature stores. We will continue to focus on improving same store sales
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SOURCE China Nepstar Chain Drugstore Ltd.
Copyright©2008 PR Newswire.
All rights reserved

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