Dec 10 2009
China Nepstar
Chain Drugstore Ltd. (NYSE: NPD) ("China Nepstar" or the "Company"), the
largest drugstore chain in China based on the number of directly operated
stores, today announced that it has entered into a definitive agreement with
Beijing Xiang Yun Kang Drugstore, to acquire all of its six drugstores in
Beijing. This acquisition will be China Nepstar's second acquisition in
Beijing.
In the first ten months of 2009, the six drugstores being acquired
generated unaudited revenues of approximately RMB6 million. These stores have
an average store size of 140 square meters, and are located in densely
populated residential areas in Beijing. Together with the five stores acquired
in July 2009, all Nepstar's Beijing stores will be serviced by the Company's
regional logistics center in Tianjin, where Nepstar has over 100 stores.
Tianjin is approximately 120km to the southeast of Beijing.
Mr. Ian Wade, Chief Executive Officer of China Nepstar, commented, "In the
second half of 2009, we are encouraged by Chinese economic recovery and
revived consumer confidence, which support our decision to expand in new
markets. Beijing has always been one of the most important markets for China
Nepstar given the high consumption power of its local residents. Since our
acquisition of Beijing Ze Run Tang to make our inroad to Beijing, we have
completed the renovation and re-branding of four acquired stores so far. We
are confident that we will be able to improve the profitability of these
acquired stores very soon. We will continue to seek good acquisition targets
in Beijing and further expand our footprint in this important market."
SOURCE China Nepstar Chain Drugstore Ltd.