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China Nepstar Chain Drugstore Reports Third Quarter 2013 Financial Results
Date:11/26/2013

SHENZHEN, China, Nov. 26, 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 third quarter ended September 30, 2013.

Financial HighlightsFor the quarter ended September 30, 2013:

  • Same store sales increased by 10.5% compared with the third quarter of 2012
  • Revenue grew by 7.7% compared with the third quarter of 2012
  • Net loss was RMB4.7 million
  • Net cash-flow from operating activities was RMB10.6 million (US$1.7 million), compared to RMB0.05 million in the third quarter of 2012
  • Mr. Fuxiang Zhang, Chief Executive Officer of Nepstar, commented, "We are pleased to report that our strategy of strong promotional activities and marketing campaigns resulted in continued momentum in revenue growth. During the third quarter, daily store traffic increased by 11 visits and same store sales grew by 10.5% from the same quarter in 2012. Our higher sales garnered attention internally among store staff, as well as externally from our suppliers who have shown their support. We believe that we are well positioned for the recovery of the retail pharmacy industry in China. While this strategy has had a near-term impact on our gross margin, we believe we will make it up through positive contributions to our market share, customer relationships and long term growth prospects."

    Third Quarter ResultsDuring the third quarter of 2013, the Company opened 32 new stores and closed 44 stores. As of September 30, 2013, the Company had 2,059 directly operated stores in total.  

    Revenue for the third quarter of 2013 increased by 7.7% to RMB683.2 million (US$111.6 million) from RMB634.6 million for the same period in 2012. Same store sales (for the 1,925 stores
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    SOURCE China Nepstar Chain Drugstore Ltd.
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