Profile: China Nepstar Chain Drugstore Ltd (NPD)

NPD on New York Consolidated

28 Jan 2015
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China Nepstar Chain Drugstore Ltd. (China Nepstar), incorporated on August 20, 2004, is a retail drugstore chain in China. As of December 31, 2012, its store network was comprised of 2,132 directly operated drugstores. The Company provides its customers with professional and convenient pharmacy services and a variety of other merchandise, including over-the-counter (OTC) drugs, nutritional supplements, herbal products, personal care products, family care products, as well as convenience products including consumable, seasonal and promotional items. As of December 31, 2012, the Company had developed 2,019 private label products. In 2012, the Company’s disposed the eight stores it acquired from Wenzhou Ren Ren Hao Chain Drugstore Co., Ltd. During December 31, 2012, the Company closed 319 stores and opened 56 new stores.

Prescription Drugs

China Nepstar offers approximately 2,862 prescription drugs. The Company accepts prescriptions only from licensed health care providers and does not prescribe medications or otherwise practice medicine. Its in-store pharmacists verify the validity, accuracy and completeness of all prescription drug orders. The Company asks all prescription drug customers to provide it with information regarding drug allergies, medical conditions and medications. Its in-store pharmacists also perform a drug utilization review, in which they cross-check every prescription against the customer’s submitted information for drug, disease and allergy interactions. Sales of prescription drugs accounted for 20.4% of its revenue during the year ended December 31, 2012.

OTC Drugs

The Company offers approximately 3,031 OTC drugs, including western medicines and traditional Chinese medicines, for the treatment of common diseases. Sales of OTC drugs accounted for 39.1% its revenue in 2012.

Nutritional Supplements

China Nepstar offers approximately 584 nutritional supplements, including a variety of healthcare supplements, vitamins, mineral and dietary products. Sales of nutritional supplements accounted for 15.7% of its revenue in 2012.

Herbal Products

The Company offers various types of drinkable herbal remedies and packages of assorted herbs for making soup, which are used by consumers as health supplements. Sales of herbal products accounted for 3.9% of its revenue in 2012.

Other Products

The Company’s other products include personal care products, such as skin care, hair care and beauty products, family care products, such as portable medical devices for family use, birth control and early pregnancy test products and convenience products, including soft drinks, packaged snacks, cleaning agents and stationery. Its other products also include seasonal and promotional items. Sales of other products accounted for 20.9% of the Company’s revenue in 2012.

Private Label Products

China Nepstar’s private label portfolio has 2,019 products marketed under 160 private labels, covering all categories of products offered by the Company. In 2012, private label products accounted for approximately 26.8% of its revenue and 38.0% of its gross profit. The Company source its merchandise from approximately 1,495 suppliers, including 615 manufacturers and approximately 880 wholesalers.

Company Address

China Nepstar Chain Drugstore Ltd

6th Floor, Tower B, Xinnengyuan
Nanhai Road
Nanshan District
SHENZHEN   GNG   518054
P: +86755.26433366
F: +86755.26430889

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