China Nepstar

From Wikipedia, the free encyclopedia

China Nepstar Chain Drugstore Ltd.
Type Public (NYSE: NPD)
Founded 1995
Headquarters Shenzhen[1]
Key people Qian Jiannong CEO
Industry Pharmacy, retail (drugs)
Revenue 1.95 bln yuan (FY 2007)
Net income 148.2 mln yuan (FY 2007)
Employees 12,955 (2007 Dec.)
Website Corporate Site, English Version

China Nepstar, the trading name of China Nepstar Chain Drugstore Ltd. (NYSE: NPD), is China's largest retail drugstore chain on the number of directly operated stores.

As of December 31, 2007, the Company had 2,002 stores in 62 cities and 11 regional distributional centers in China.

It uses directly operated stores, centralized procurement and a network of regional distribution centers to provide customers with pharmacy services and a wide variety of other merchandise, including over-the-counter ("OTC") drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables and seasonal and promotional items. China Nepstar's strategy of competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the robust demographic and economic growth trends in China to achieve a leading brand and market position.

Contents

[edit] Stores

In 2007, China Nepstar substantially increased its market penetration in coastal cities with relatively high household disposable income, where it already had a presence. These cities include Shenzhen (from 202 stores as of December 31, 2006 to 311 stores as of December 31, 2007), Dalian (from 127 stores to 174 stores), Guangzhou (from 123 stores to 161 stores), Hangzhou (from 102 stores to 144 stores), Ningbo (from 73 stores to 96 stores), Dong Guan (from 75 stores to 94 stores), Suzhou (from 54 stores to 70 stores), Tianjin (from 23 stores to 66 stores), and Shanghai (from 46 stores to 60 stores).

China Nepstar Chain Drugstore Limited (NPD.NYSE) plans to open 1,050 new chain stores in 2008 and expects to have more than 3000 outlets with about eight million of registered customers by then, said Qian Jiannong, CEO of China Nepstar Chain Drugstore.

As the largest trans-regional chain drugstore in China, China Nepstar Chain Drugstore opened 210 new stores within the fourth quarter and its total chain store number is likely to top 2,000 by the end of this year, said Qian at the celebration meeting for its listing at New York Stock Exchange.

[edit] Listings

China Nepstar Chain Drugstore Ltd. went public on the NYSE on November 9, 2007, through an IPO of 23,718,750 American Depository Shares (including green shoe) offered at a price of US$16.20 per ADS

China Nepstar Chain Drugstore Limited has said it has no plans to get listed on China's A-share market. As the capital raised from its IPO on New York Stock Exchange (November 9, 2007) is sufficient to finance current expansion activities, there's no additional placement plan for the near future.

[edit] Agreements

China Nepstar Chain Drugstore has signed strategic cooperation agreements with 16 domestic and multinational suppliers of pharmaceutical and healthcare products for 2008.

These agreements were signed at an event to celebrate the initial public offering of the company on the New York Stock Exchange attended by representatives from more than 300 manufacturers and wholesalers on December 14, 2007.

The cooperation agreements were entered into with each of Tianjin Smith Kline & French Laboratories Ltd., Bayer Healthcare Company Ltd., Eli Lilly and Company, Boehringer Ingelheim Shanghai Pharmaceuticals Co. Ltd., Wyeth Pharmaceutical Company Ltd., Hunan Taier Pharmaceutical Company Limited, Taiji Group, Shandong DONG-E E-JIAO Co. Ltd., and Kunming Dihon Medical Co., Ltd., as well as seven other suppliers of pharmaceutical and healthcare products. In addition to procuring merchandise from these suppliers, the Company will also partner with these suppliers to promote health education among Chinese consumers.

In addition, a number of prominent Chinese and multinational pharmaceutical companies, including Shandong DONG-E E-JIAO Co. Ltd., have agreed to establish exclusive manufacturing lines to manufacture certain products based on Nepstar’s specifications and packaging requirements and to sell these products solely through Nepstar’s network of drugstores.

In March 2008, Nepstar entered into a license agreement with SAP AG, a global leading Enterprise Resource Program ("ERP") provider, to purchase the full SAP ERP system. Concurrently, China Nepstar has retained Abeam Co., a system integrator with SAP implementation experience, to implement its ERP system. The SAP ERP system will integrate the Company's company-wide accounting and operating systems. The integration is expected to lower operating costs, improve inventory management and enhance data analysis capability. Particularly, it is expected to benefit store level data analysis to facilitate product procurement and sales promotion planning. China Nepstar selected SAP ERP system following a rigorous review of competing software in light of the Company's business needs and growth outlook. SAP ERP system has already been installed by many established international and Chinese retailers such as Walmart, MatsuMoto Kiyoshi, and China Suning Corporation. The Company plans to install the SAP ERP system in phases commencing in the fourth quarter of 2008. The installation is expected to be completed in 2009.[2]

[edit] CEO

Jiannong Qian has served as a director and Chief executive officer of the Company since August 2006. He was the vice general manager of Wumart Stores, Inc. from 2005 to 2006. From 2003 to 2005, he was the vice president of OBI (China) Management System Co., Ltd., a subsidiary of OBI Heimwerkermaerkte AG, a German corporation. From 2002 to 2003, he was the assistant general manager of China Resources Vanguard Co., Ltd. From 1997 to 2001, he worked at Metro AG and his last position at Metro AG was the manager of food purchase department. From 1994 to 1997, he worked as a senior manager at Weixing Company Group. From 1990 to 1994, he was a member and the chairman of general council of the Chinese Economists' Association in Germany. From 1983 to 1987, he was a lecturer of Shanghai University of Finance and Economics. Mr. Qian received a bachelor's degree in economics from Shandong University in 1983, a master's degree in economics from University of Essen in Germany in 1992, and studied in the doctoral program in economics in University of Duisburg-Essen from 1992 to 1994.

[edit] Acquisitions

[edit] See also

[edit] References

  1. ^ China Nepstar Chain Drugstore Ltd
  2. ^ China Nepstar Chain Drugstore implement SAP ERP solution to optimize management

[edit] External links

Languages