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China Nepstar Chain Drugstore Reports Second Quarter 2012 Financial Results
Date:8/23/2012

SHENZHEN, China, Aug. 23, 2012 /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 second quarter ended June 30, 2012.

Financial Highlights

  • Revenue increased by 1.8% to RMB617.6 million (US$97.2 million), compared to RMB606.6 million in second quarter 2011
  • Same store sales increased by 7.8% over the same period of 2011
  • Income from operations was RMB3.9 million (US$0.6 million), compared to RMB8.2 million in second quarter 2011
  • Net income was RMB2.5 million (US$0.4 million), compared to RMB6.5 million in second quarter 2011
  • Cash flow from operations was RMB30.2 million (US$4.8 million), compared to RMB42.6 million in second quarter 2011
  • Mr. Fuxiang Zhang, Chief Executive Officer, commented, "We are pleased to maintain same store sales growth of 7.8% in such a challenging quarter. In the second quarter, the industry experienced an unexpected loss of consumer confidence in pharmaceuticals and nutritional supplements in capsule forms caused by the nation wide publicity of chromium contamination scandal. In addition, in certain key cities like Dalian, local governments started to impose more severe restrictions on the carrying and selling of non-pharmaceutical products by designated insurance reimbursement stores. Meanwhile we closed 97 underperforming stores in the second quarter. Nevertheless, as a result of our ongoing optimization to the existing product portfolio, we are optimistic about our continued revenue growth. Our pharmaceutical categories, both prescription and over-the-counter ("OTC") drugs, grew over 10% during the quarter on the same store basis, year over year."

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    SOURCE China Nepstar Chain Drugstore Ltd.
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