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China Nepstar Chain Drugstore Reports Fourth Quarter and Fiscal Year 2010 Financial Results
Date:3/16/2011

SHENZHEN, China, March 16, 2011 /PRNewswire-Asia-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 fourth quarter and fiscal year ended December 31, 2010.

Fourth Quarter Financial HighlightsFor the quarter ended December 31, 2010:

  • Same store sales declined slightly by 1.1% compared to the higher sales of the same period in 2009 due to the H1N1 epidemic

  • Gross margin increased to 49.6% compared to 47.9% for the same period of 2009

  • Revenue increased by 1.0% to RMB627 million (US$95 million) compared to RMB621 million in the fourth quarter of 2009

  • Income from operations was RMB24 million (US$4 million) compared to RMB42 million in the same period of 2009 and RMB14 million in the third quarter of 2010

  • Net income was RMB17 million (US$3 million)

  • Mr. Jason Wu, Chief Executive Officer of Nepstar, commented, "We are pleased to say that our strategic transition to a neighborhood store for one-stop pharmacy and convenience shopping contributes to stabilizing our business despite disruptive changes in our operating environment caused by government initiatives related to healthcare reform and macroeconomic adjustment."

    "We continue to implement our new merchandising strategy and marketing tactics. Based upon our principle of improving the quality of life for urban residents in China, we have carefully researched, selected and introduced high-quality household consumables at competitive prices. Our experience in central procurement and private labeling is helping our expansion into new product categories and we are seeing these new products start to gain traction. For example, our new lines of stainless steel cooking wa
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    SOURCE China Nepstar Chain Drugstore Ltd.
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