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China Nepstar Chain Drugstore Ltd. Reports Second Quarter 2013 Financial Results
Date:8/29/2013

SHENZHEN, China, Aug. 29, 2013 /PRNewswire-FirstCall/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or the "Company"), the largest retail drugstore chain in China based on the number of directly operated stores, today announced its unaudited financial results for the second quarter ended June 30, 2013.

Financial HighlightsFor the quarter ended June 30, 2013:

  • Same store sales increased by 8.6% compared with the second quarter of 2012
  • Revenue increased to RMB638.8 million (US$104.1 million) compared with RMB617.6 million for second quarter 2012
  • Loss from operations was RMB1.0 million (US$0.2 million), compared with income from operations of RMB 3.9 million for the second quarter 2012.
  • Net cash-flow from operating activities was RMB14.6 million (US$2.4 million), compared to RMB30.2 million in second quarter 2012
  • Mr. Fuxiang Zhang, Chief Executive Officer of Nepstar, commented, "During the second quarter, we adopted a more proactive marketing strategy to propel growth in revenue and to improve our store productivity. As a result, our average daily store traffic increased by eleven visits and same store sales grew by 8.6%, with fewer operating stores compared with the second quarter of 2012. While this promotional strategy has impacted our near-term gross margin and profitability, we believe the longer-term benefit of increased store traffic and participation in our loyalty programs will provide sustainable growth in margin over time and will ultimately enhance our competitiveness."

    Second Quarter ResultsDuring the second quarter of 2013, the Company opened 25 new stores and closed 48 stores. As of June 30, 2013, the Company had 2,071 directly operated stores in total.  

    Revenue for the second quarter of 2013 increased by 3.4% to RMB638.
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    SOURCE China Nepstar Chain Drugstore Ltd.
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