China Nepstar Chain net profit up 304.4% in Q1

China Nepstar Chain Drugstore Ltd, the nation's biggest drugstore chain in terms of the number of directly operated stores, said in its quarterly report that its net profit increased sharply by 304.4% year-on-year in the first quarter of 2008.

The company gained a net profit of RMB 55 million (US$8 million) in the first three months, with revenue amounting to RMB 540 million (US$77 million), up 16.8% over the previous year. Gross profit margin went up nearly 10 percentage points to 47.8% from 37.7% a year earlier.

In addition, China Nepstar will open 240 new stores nationwide in the second quarter. The company also estimates to rake in RMB 62 million-RMB 65 million in net profits during the period.

As of March 31, 2008, Nepstar operated 2,249 stores across 73 cities, one headquarters distribution center and 11 regional distribution centers in China.