EX-23.6 3 h01354a1exv23w6.htm EX-23.6 CONSENT OF FROST & SULLIVAN EX-23.6 Consent of Frost & Sullivan
 

[Nepstar’s letterhead]
   18 July   , 2007
PRIVATE & CONFIDENTIAL
Frost & Sullivan
7550 IH 10 West, Suite 400
San Antonio, TX 78229-5616
USA
         
 
  Re:   China Nepstar Chain Drugstore Ltd. (“Nepstar”)
References to the Frost & Sullivan’s Data on China’s Drugstore Industry
Dear Madam/Sirs:
As you know, we intend to refer to certain data on China’s drugstore industry provided by Frost & Sullivan (the “Data”) in Nepstar’s Registration Statement on Form F-1 (the “Registration Statement”) relating to Nepstar’s proposed initial public offering in the U.S. (the “Proposed IPO”). We attach in Appendix I extracts from the Registration Statement which contain references to the Data.
We would like to seek your written consent to our references to the Data as indicated on Appendix I hereto in the Registration Statement and any other documents in connection with the Proposed IPO. We would appreciate it if you could kindly indicate your consent by signing and returning the enclosed letter.
Please also note that the Proposed IPO is confidential until our public filing of the Registration Statement with the United States Securities and Exchange Commission. We would appreciate your cooperation in refraining from disclosing any information relating to the Proposed IPO to anyone other than your personnel who are involved in your research with respect to the Data.
Thank you in advance for your cooperation in this matter.
Yours faithfully,
China Nepstar Chain Drugstore Ltd.
         
     
/s/ Jiaxin Feng      
Name:   Jiaxin Feng     
Title:   Director     
 

 

 

[Frost & Sullivan’s letterhead]
September 21, 2007
PRIVATE & CONFIDENTIAL
     
To:
  China Nepstar Chain Drugstore Ltd.
6th Fl., Tower B, Xinnengyuan Building
Nanhai Road, Nanshan District
Shenzhen
Guangdong Province 518054
People’s Republic of China
         
 
  Re:   China Nepstar Chain Drugstore Ltd.
Consent to References to Frost & Sullivan’s Data on China’s
Drugstore Industry
Madam/Sirs:
We refer to your letter dated as of July 18, 2007 (the “Nepstar Letter”). Terms used in this letter shall have the same meanings given to them in the Nepstar Letter.
In connection with the Proposed IPO, we hereby consent to references to our name and to the Data in the Registration Statement.
 
Yours faithfully,
For and on behalf of Frost & Sullivan.
         
     
/s/ Xiao Han      
Name:   Xiao Han     
Title:   ANALYST, HEALTHCARE APAC     
 

 

 

China Nepstar Chain Drugstore
(A) Support for Statements from the Registration Statement
                 
                Page No. in
    Page No. in       Supporting
Statement in Form F-1   Form F-1   Supporting Document   Document
...and Frost and Sullivan, an independent market research and consulting firm, total expenditure on pharmaceutical products in China increased from RMB175.6 billion in 2002 to RMB360.3 billion (US$47.3 billion) in 2006, representing a CAGR of 19.7% in that period.
  1 and 84   2007 to 2011 Projected Data from Frost & Sullivan (attached as Exhibit 1 hereto)   table 1.1
 
                
Frost & Sullivan expects expenditure on pharmaceutical products in China to grow at 23.5% annually between 2007 and 2011, and to reach RMB965.2 billion (US$126.8 billion) in 2011.
  1, 2 and 84   Same as above   Same as above
 
                
According to Frost & Sullivan, the retail market of pharmaceutical products in China increased from RMB51.2 billion in 2002 to RMB91.6 billion in 2006.
    58     Same as above   table 2.1
 
                
Frost & Sullivan also projects that retail sales of pharmaceutical products will reach RMB226.4 billion by 2011.
    58     Same as above   same as above
 
                
According to Frost & Sullivan, 41.0% of pharmaceutical products are expected to be distributed through the retail pharmacy channel in 2011, up from 28.3% as of 2006.
    58     Same as above   same as above
 
                
The chart sets forth the historical and projected expenditure on pharmaceutical products in China by category of pharmaceutical products for the periods indicated.
    84     Same as above   table 1.1

 

 

                 
                Page No. in
    Page No. in       Supporting
Statement in Form F-1   Form F-1   Supporting Document   Document
However, Frost & Sullivan projects expenditure on pharmaceutical products per capita in China to grow at 18.0% annually between 2007 and 2011, and reach US$99.2 by 2011.
    84     Same as above   table 1.2
 
                
This growth rate is significantly higher than in many developed countries such as the United States, Germany, France, Australia and Japan, where the growth rate of the expenditure on pharmaceutical products is projected to be between 4.8% and 13.7% from 2007 to 2011, according to Frost & Sullivan.
    84     Same as above   same as above
 
                
The charts set forth expenditure on pharmaceutical products per capita of various countries in 2006 and the projected growth rate of expenditure on pharmaceutical products per capita of various countries from 2007 to 2011.
  84 and 85   Same as above   same as above
 
                
... according to Frost & Sullivan, is expected to continue to grow to RMB41.9 trillion (US$5.5 trillion) in 2011, representing a CAGR of 14.9% from 2006 to 2011.
    85     Same as above   table 1.5
 
                
... according to Frost & Sullivan, will further increase to RMB19,954 (US$2,621.4) in 2011.
    85     Same as above   same as above
 
                
The charts set forth the historical and projected GDP and disposable income per capita in China for the periods indicated:
    85     Same as above   same as above
 
                
Urban population as a percentage of total population increased from 39.1% in 2002 to 43.9% in 2006, and is projected to reach 50.7% in 2011, according to Frost & Sullivan.
    86     Same as above   same as above

 

 

                 
                Page No. in
    Page No. in       Supporting
Statement in Form F-1   Form F-1   Supporting Document   Document
The chart sets forth the historical and projected demographics information in China for the periods indicated.
    86     Same as above   table 1.6
 
                
Frost & Sullivan projects that this age group will further increase to 215.7 million in 2011, accounting for 15.5% of the projected population in China at that time.
    86     Same as above   table 1.6
 
                
According to Frost & Sullivan, sales from non-hospital drugstores are expected to constitute 41.0% of total drug sales in 2011, compared to 28.4% in 2006.
    87     Same as above   table 2.1
 
                
The table sets forth historical and projected retail drug sales by hospital pharmacies and non-hospital drugstores, which include independent drugstores and drugstore chains, for the periods indicated.
    87     Same as above   same as above
 
                
According to Frost & Sullivan, as of June 30, 2007, our stores on average only accounted for fewer than 4.0% of the total number of drugstores in each such city.
    92     Same as above   table 2.2

 

 

Exhibit 1
 
2007 to 2011 Projected Data from Frost & Sullivan
 

List of information and data required for Industry Section
Demand
1 Total Pharmaceutical Expenditure in China by Type of Pharmaceutical Products (table 1.1)
                                                                                 
    Historical   Projected(Billion RMB)
(RMB billion, except for per capita figures) 2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
a. Chemical Medicines
     72.29       87.29       96.27       120.45       138.25       163.42       218.96       270.41       362.37       495.54  
b. Chinese materia medica
     49.42       57.75       70.94       100.18       114.01       126.42       140.17       160.83       184.54       196.47  
c. Biologicals
     18.38       22.34       24.90       31.12       39.06       51.44       67.75       92.56       126.45       171.51  
 
Total of a + b + c
     140.09       167.38       192.10       251.75       291.32       341.27       426.88       523.81       673.37       863.53  
 
 
                                                                                
(I) OTC Market
 Total OTC    28.02       34.67       38.44       42.09       46.09       52.85       60.61       67.26       74.64       80.20  
Westen Medicines   5.60       6.93       7.69       8.42       9.22       10.57       12.12       13.45       14.93       16.04  
TCM   22.41       27.73       30.75       33.67       36.87       42.28       48.49       53.81       59.71       64.16  
 
(II) Rx Market
 Total Rx   112.07       132.71       153.66       209.66       245.23       288.42       366.27       456.55       598.72       783.33  
Westen Medicines   89.65       106.17       122.93       167.73       196.19       230.74       293.02       365.24       478.98       626.66  
TCM   22.41       26.54       30.73       41.93       49.05       57.68       73.25       91.31       119.74       156.67  
 
Total (I) + (II)
     140.09       167.38       192.10       251.75       291.32       341.27       426.88       523.81       673.37       863.53  
 
* Prescription Medicines(Only in hospitals)
 [Chinese Characters]     73.90       90.16       110.00       115.00       118.83       122.80       137.84       154.74       169.14  
 
                                                                                
Cut crude drugs
     15.49       17.40       18.23       14.70       19.02       21.09       23.39       26.83       30.79       32.78  
 
Total Medicine Expenditure
     155.58       184.78       210.33       266.45       310.34       362.36       450.27       550.64       704.16       896.31  
 
                                                                                
Chemical crude drugs
     64.10       76.04       91.26       110.97       125.85       148.75       199.31       246.15       329.86       451.08  
Nutritional supplements
     20.00       30.00       50.00       50.00       50.00       52.37       54.85       58.98       63.43       68.92  
 
 
                                                                                
ONLY FOR GENERICS (WE CAN ADD IN ANOTHER LINE FOR PATENTED MEDICINES IF WE WANT)
Private labeled
     0 %     1 %     3 %     10 %     14 %                                        
Non-private labeled (What % of the generic market is with the retailers label)
   100 %     99 %     97 %     90 %     86 %                                        
 
Total
                                                                                
 
                                                                                
Pharmaceutical expenditure per capita(RMB Yuan)
 [Chinese Characters]     201.83       232.01       288.64       331.05       390.4       460.4       543.0       640.4       755.2  
Exchange Rate
             8.280       8.290       8.280       7.780       7.620       7.611       7.611       7.611       7.611  
Pharmaceutical expenditure per capita(USD)
 [Chinese Characters]     24.38       27.99       34.86       42.55       51.2       60.5       71.3       84.1       99.2  
 
Source:   1. [Chinese Characters], http://www.cei.gov.cn/
    2. Market for OTC Healthcare 2005. Euromonitor International
    3. Frost & Sullivan database
    4. [Chinese Characters] Database
Note: The forecast data (2007 to 2011) based on F&S estimation
2 Pharmaceutical Expenditure per capita among Different Economies (latest available year) (table 1.2)
                                                                                                                         
    China hospital   China Total           USA   Germany   France   Canada   Japan   UK   Australia   Singapore   Korea   India
    Pharmaceutical   Pharmaceutical   Pharmaceutical   Pharmaceutical                                            
    Expenditure of   Expenditure of   Expenditure per   Expenditure per                                            
    Out-patient (USD)   In-patient (USD)   capita (USD)   capita(USD)   Exchange Rate   USD   USD   USD   USD   USD   USD   USD   USD   USD   USD
2002
     6.67       193.05       14.49     [Chinese Characters]     8.28       674.00       402.00       569.00       487.00       358.00       341.00       326.00       134.00       260.00       2.70  
2003
     7.15       211.15       17.68       24.38       8.28       727.00       436.00       606.00       508.00       393.00       353.00       353.00       187.00       309.00       3.40  
2004
     7.47       225.92       19.26       27.99       8.29       751.00       449.00       597.00       561.00       425.00       412.00       383.00       199.00       330.00       3.90  
2005
     7.98       247.05       21.12       34.86       8.28       885.00       484.00       627.95       617.00       517.00       429.09       428.00       211.00       370.00       4.50  
2006
     8.35       256.04       21.61       42.55       7.78       935.46       501.56       660.50       673.00       565.92       446.88       427.47       226.53       394.31       4.98  
2007
     8.67       265.73       22.45       51.24       7.62       988.80       519.76       691.31       726.07       619.48       474.68       442.46       243.20       420.23       5.51  
2008
     8.82       2058.32       22.83       60.50       7.61       1055.44       549.40       723.56       783.33       691.12       504.20       461.84       263.66       447.84       6.21  
2009
     9.23       282.90       23.88       71.34       7.61       1126.56       580.73       768.57       858.82       771.06       535.57       482.07       285.84       477.27       7.01  
2010
     9.66       295.94       24.98       84.14       7.61       1225.84       616.85       816.38       941.60       868.34       568.88       507.42       312.88       521.18       8.05  
2011
     10.44       320.00       27.01       99.23       7.61       1333.86       655.22       867.16       1040.60       977.90       604.27       534.09       342.49       569.13       9.25  
 
Source:   1. www.stats.gov.cn National Beauru of Statistics of China
    2. Frost & Sullivan database
    3. Patented Medicine Review Board Newsletter, Canada (website) — 2004, 2005, 2006
    4. Research and Markets website
    5. www.oecd.org
    6. www.episcom.com
Note: The forecast data (2007 to 2011) based on F&S estimation
3 National Medical Insurance Program in China (table 1.3)
                                                                                 
    Historical   Projected
(RMB billion)   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
Total amount of funding under the Program
     60.78       89.00       114.10       140.50       174.70       220.47       288.77       378.58       506.91       673.17  
Total population enrolled in the Program (million)
     94.00       109.02       124.04       137.83       157.32       188.94       265.39       378.15       526.54       686.95  
Funding per capita (urban only)(Yuan)
     646.60       816.36       919.86       1019.37       1110.48       1218.99       1371.17       1541.30       1736.69       1954.49  
Number of pharmacies in the Medical Insurance Catalogs (licensed only)
     65000.00       70000.00       80000.00       85000.00       92000.00       100347.47       109452.34       119383.33       130215.38       142030.27  
Other relevant information available
                                                                                
 
Source:   1. www.molss.gov.cn, Ministry of Labour and Social Security, PRC
Note: The forecast data (2007 to 2011) based on F&S estimation
4 Private Insurance Market in China (ideally pharmaceutical-related insurance premium numbers) (table 1.4)
                                                                                 
    Historical   Projected
(RMB billion)   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
Total Gross Premium
     12.10       24.19       25.70       30.70       32.60       35.65       41.12       42.83       50.14       62.78  
Total population with private insurance(million)
     97.62       98.21       98.79       99.37       101.30       102.90       104.28       104.85       105.42       105.89  
Premium per capita(Yuan)
     123.94       246.32       260.15       308.93       357.85       421.68       504.33       644.22       827.18       1133.41  
Other relevant information available
                                                                                
Based on covering all the insurance schemes
 
Source:   1. [Chinese Characters]
    2. Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation
5 Economic Growth in China (table 1.5)
                                                                                 
    Historical   Projected
(RMB billion, per capita figures—Yuan RMB)   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
Real GDP
     12033.27       13582.28       15987.83       18308.48       20940.70       24051.55       27624.54       31728.31       36441.71       41855.32  
Real GDP per capita
     9398.05       10541.97       12335.58       14040.00       15930.79       18177.62       20741.34       23666.64       27004.52       30813.16  
 
                                                                                
Disposable income
     5804.66       6452.59       7337.33       8324.66       9430.77       10647.31       12020.77       13571.41       15322.08       17298.57  
Disposable income per capita
                                                                                
— Urban citizens’ disposable income per capita
     7702.80       8472.20       9421.60       10493.00       11759.00       13070.76       14528.85       16149.60       17951.15       19953.66  
— Rural citizens’ disposable income per capita
     2475.60       2622.20       2936.40       3254.90       3587.00       3935.45       4317.74       4737.18       5197.35       5702.23  
 
                                                                                
China’s urbanization rate
     0.39       0.41       0.42       0.43       0.44       0.45       0.47       0.48       0.49       0.51  
 
Source:   1. www.stats.gov.cn, National Beauru of Statistics of China
    2. Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation
6 Demographics (Population by Age) in China (table 1.6)
                                                                                 
    Historical   Projected
(Million)   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
60 and above
     151.57       157.13       160.69       170.07       176.94       184.08       191.51       199.25       207.29       215.66  
35-59
     440.28       459.48       478.21       494.13       512.42       531.39       551.06       571.46       592.62       614.56  
19-34
     315.89       305.49       296.73       276.58       263.16       250.40       238.26       226.70       215.71       205.24  
0-18
     376.77       370.16       364.24       366.77       365.08       363.41       361.74       360.08       358.43       356.78  
 
Total
     1284.51       1292.26       1299.87       1307.55       1317.60       1329.28       1342.57       1357.49       1374.05       1392.24  
 
We can regroup the ages to our existing data
Source:   1. [Chinese Characters]
Note: The forecast data (2006 to 2011) based on F&S estimation

 

List of information and data required for Industry Section
Overall Pharmaceutical Industry
  1 Pharmacies in China (table 2.1)
                                                                                         
    Historical   Latest Available  
(Number of stores)
     2002       2003       2004       2005       2006       2006       2007       2008       2009       2010       2011  
Hospital pharmacies
     297000.00       282771.00       287797.00       298997.00       308969.00       308969.00       312035.87       315133.18       318261.24       321420.35       324610.81  
Retail chained pharmacies
     26000.00       35000.00       43000.00       61000.00       65000.00       65000.00       73366.83       82810.64       95102.67       109219.26       127994.83  
Individual pharmacies
     84000.00       95000.00       117000.00       139000.00       165000.00       165000.00       172603.46       180557.30       178250.57       175973.32       173725.16  
Total Number of Pharmacies stores in China [CHINESE CHARACTERS]
     110000.00       130000.00       160000.00       200000.00       230000.00       230000.00       245970.29       263367.94       273353.24       285192.58       301719.99  
 
Total
     407000.00       412771.00       447797.00       498997.00       538969.00       538969.00       558006.16       578501.12       591614.48       606612.93       626330.80  
(Number of companies)
                                                                                        
Hospital pharmacies
     297000.00       282771.00       287797.00       298997.00       308969.00       308969.00       318230.34       327769.29       337594.18       347713.56       358136.27  
Retail chained pharmacies
     503.00       1216.00       1624.00       1753.00       2000.00       2000.00       2257.44       2548.02       2926.24       3360.59       3938.30  
Individual pharmacies
     84000.00       95000.00       117000.00       139000.00       165000.00       165000.00       172603.46       180557.30       178250.57       175973.32       173725.16  
Others (please state the categories included)  
                                                                                        
 
Total
     381503.00       378987.00       406421.00       439750.00       475969.00       475969.00       493091.24       510874.61       518770.98       527047.47       535799.73  
(Sales in RMB Billion)
                                                                                        
Hospital pharmacies
     136.33       153.61       174.10       203.59       231.51       231.51       254.10       278.89       298.17       318.79       325.87  
Retail chained pharmacies
     51.20       60.00       68.50       79.00       91.60       91.60       107.35       125.80       152.36       184.53       226.41  
Individual pharmacies
                                                                                        
Others (please state the categories included)  
                                                                                        
 
Total
     187.53       213.61       242.60       282.59       323.11       323.11       361.44       404.69       450.53       503.32       552.27  
 
 
Source:   1. www.chinacdc.net.cn, [CHINESE CHARACTERS] , 2002-2006 [CHINESE CHARACTERS]
2. www.chinacdc.net.cn, [CHINESE CHARACTERS]
2. [CHINESE CHARACTERS], 2007
3. [CHINESE CHARACTERS]
4. Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation
2 Retail pharmacies in selected cities in China (latest available data) (table 2.2)
                                                                                 
(Number of stores)   Shenzhen     Kunming     Dalian     Guangzhou     Hangzhou     Dongguan     Weifang     Ningbo     Chengdu     Suzhou  
Individual pharmacies
     4104       1405       1400       3376       884       2236       1598       1200       1700       800  
Retail chained pharmacies
     2288       500       600       2275       990       2615       680       500       2400       300  
 
Total
     6392       1905       2000       5651       1874       4851       2278       1700       4097       1100  
 
 
Source:   1. [CHINESE CHARACTERS]
2. [CHINESE CHARACTERS]
3. www.chinatradenews.com.cn, [CHINESE CHARACTERS] , 2007-7
3 Retail pharmacies in selected provinces in China (latest available data) (table 2.3)
                                                 
(Number of stores)   GuangDong     YunNan     ZheJiang     JiangSu     LiaoNing     China Total  
Individual pharmacies
     25000       8000       5769       15826       4887       65000  
Retail chained pharmacies
     10000       2800       2000       2308       2059       165000  
   
Total
     35000       10800       7769       18134       6946       230000  
   
 
Source:   1. [CHINESE CHARACTERS]
2. [CHINESE CHARACTERS]
3. [CHINESE CHARACTERS], 2007
4 Data for local competitors (latest annual data) (table 2.4)
                                                                         
    Revenue
[CHINESE
CHARACTERS]		     Revenue
from
non-pharma
products		     Total Floor
Area
[CHINESE
CHARACTERS]		     Gross profit
(RMB [CHINESE
CHARACTERS])		     Rate of
Gross profit		     Net profit
before tax
(RMB [CHINESE
CHARACTERS])		     Rate of
Net profit		     # of
stores		     # of designated
National
Medical
Insurance
Program
reimbursement
stores		  
[CHINESE CHARACTERS]
     50000       6500       38200       11500       23.00 %     500       1.00 %     380       17  
[CHINESE CHARACTERS]
     81000       10800       35900       16200       20.00 %     1620       2.00 %     481       50  
[CHINESE CHARACTERS]
     167000       22000       89338.16       26720       16.00 %     5084       3.04 %     571       80  
[CHINESE CHARACTERS]
     18000       2400       6000       3240       18.00 %     540       3.00 %     53       30  
[CHINESE CHARACTERS]
     9184       1200       7500       1378       15.00 %     156       1.70 %     73       20  
[CHINESE CHARACTERS]
     6000       800       4100       900       15.00 %     120       2.00 %     36       21  
[CHINESE CHARACTERS]
     28900       3800       12000       4624       16.00 %     867       3.00 %     100+       15  
[CHINESE CHARACTERS]
     22600       3000       10000       4520       20.00 %     452       2.00 %     89       11  
[CHINESE CHARACTERS]
     8064       1050       19200       3629       45.00 %     1693       21.00 %     169       8  
 
 
Source:   1. [CHINESE CHARACTERS] , 2003-2006
2. www.gdyb.net, [CHINESE CHARACTERS]
3. www.wlyd.com, [CHINESE CHARACTERS]
4. www.uoh.cn, [CHINESE CHARACTERS]
5. [CHINESE CHARACTERS]
6. Frost & Sullivan database
5 Overseas players (both Worldwide and China alone) (latest annual data) (table 2.5)
                                                                                 
    Average
store size		     Revenue
per sqfeet		     Revenue
per store		             Gross margin             % of private label
sales in total revenue		           % of non-
pharmaceutical
sales in
total revenue		  
                    Total                                              
                    Revenue(Million
USD)		             Number of Store             Revenue per                      
                                                    store (Million             Gross margin          
                                                    USD                      
                    Worldwide     China     Worldwide     China     Worldwide             China          
Walgreen
     14500.00       563.04       47409.00       NA       5807.00       NA       8.16               NA       35 %
CVS
     10880.00       649.31       43813.80       NA       6202.00       NA       7.06       13 %     NA       32 %
Long’s
     23429.00       417.90       4670.30       NA       500.00       NA       9.34               NA       >50 %
Rite Aid
     6500.00       514.93       17271.00       NA       5160.00       NA       3.35               NA       36.40 %
Boots
     4879.60       706.12       10112.86       NA       2935.00       NA       3.45               NA          
Llyods
                     3023.00       NA       1520.00       NA       1.99               NA          
Cosmed
                     127.19       NA       217.00       NA       0.59               NA          
Watson’s
     3000.00       546.23       12711.41       752.15       7757.00       276.00       1.64               21.26          
Mannings
                     792.30       NA       829.00       255.00       0.96               NA          
 
 
Source:   1. Investor. Walgreens.com “Walgreen Co. June Sales Increase 9.5 Percent” Walgreen Co. 3 July 2007 (Article)
2. Longs.com. Company info (Company website)
3. Longs Drugs 2007 Annual Report (website)
4. Diary Farm International Annual Report 2006 (website)
5. Honolulu Advertiser.com website — Out with Tower in with Walgreens by Andrew Gomes, 1 Dec 2006 (Article)
6. Find Articles.com “CVS’ biggest store yet bows in home state of R.I — News”. Drug Store News. By Rob Eder Sept 8, 2003 (Article)
7. Find Articles.com “Longs Drug Stores: new execs shape future goals” — 2003 Annual Report by Doug Desjardins April 28, 2003 (Article)
8. Find Articles.com “Rite Aid sets rapid pace on chain takeover trail — Annual Report Part 1 — company profile”. Drug Store News. May 1, 1989. Find Articles.com. 05 Jul. 2007 (Report)
9. Alliance Boots.com. Investors. Boots history (Company website)
10. Watson.com. Latest news. Nov 16 2004 (Company website)
11. Google Finance.com. “Rite Aid Corporation” (Financial Report)
12. Google. Finance.com “Alliance Boots Plc” (Financial Report)
13. Office of Fair Trading (United Kingdom) 22 June 2007 (Official Document)
14. President Chain Store Corp. Financial Review. June 2007 (Company Document)
15. President Chain Store Corp. Financial Review. June 2007 (Company Document)
16. Associated Contents.com website. “Brooks Eckerd Store Pilot Stores Begin Transition To Rite Aids” By Lenora Murdock. 28 June 2007 (Article)
17. LloydsPharmacy.com website. (Company website)
18. President Chain Store Corp. Financial Review. June 2007 (Company Document)
19. Redorbit.com webisite.“Walgreens Profit Rises 5.2%: Generic Drug Sales Bolster Bottom Line”. By James P. Miller, Chicago Tribune 4 June 2006 (Article)
20. CVS.com. (Company website)
21. Loopnet.com website. 7 May 2007 (Advertiser)
22. Edgar Online.com website. Rite Aid Overview. 26/4/2004 (Company report)

 

6    Retail Chain Stores (Including Pharmaceutical, Department Stores, Convenience Stores, Supermarkets, etc) in China (table 2.6)
      Pharmaceutical — pharmacies, drug stores
                                                                                         
    Historical   Latest Available   Any Projected Data Available
(By revenue) Million RMB     2002       2003       2004       2005       2006       2006       2007       2008       2009       2010       2011  
[CHINESE CHARACTERS]
     15791       26546       39728       49840       86930       86930       110601       140716       189622       255524       332299  
[CHINESE CHARACTERS]
     33396       42064       67627       72074       77095       77095       83432       91967       102154       114719       127880  
[CHINESE CHARACTERS]
     6068       12313       22108       39718       60952       60952       76114       95047       123605       160744       205256  
[CHINESE CHARACTERS]
     15611       19904       24894       31299       37853       37853       44048       51256       58136       65939       74790  
[CHINESE CHARACTERS]
     12790       18183       23085       30117       36136       36136       43419       52170       62160       74062       87245  
[CHINESE CHARACTERS]
     NA       13437       16241       17436       24800       24800       27766       31086       36173       42093       47743  
[CHINESE CHARACTERS]
     5067       8504       13277       19072       23119       23119       27779       33377       39768       47383       55818  
[CHINESE CHARACTERS]
     10300       13600       16000       20800       21200       21200       23415       28989       31770       37004       40977  
[CHINESE CHARACTERS]
     8730       12381       13703       17549       19626       19626       21973       24600       28626       33311       37782  
[CHINESE CHARACTERS]
     NA       NA       NA       15700       19587       19587       NA       NA       NA       NA       NA  
Others
                                                                                        
 
Total
     107753       166932       236663       313605       407298       407298       458545       549210       672014       830778       1009790  
 
Total number of companies with retail chain stores
     40000       43000       45900       48600       51600       51600       54992       58606       62459       66564       70939  
 
Source:     1.   www.ccfa.org.cn, [CHINESE CHARACTERS]
 
    2.   Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation
7    Retail Chain Stores (Including Pharmaceutical, Department Stores, Convenience Stores, Supermarkets, etc) in China (table 2.7)
                                                                                         
    Historical   Latest Available   Any Projected Data Available
(By total floor area)[CHINESE CHARACTERS]     2002       2003       2004       2005       2006       2006       2007       2008       2009       2010       2011  
[CHINESE CHARACTERS]
     180.90       229.00       319.00       368.00       375.00       375.00       449.97       539.92       647.85       777.36       932.76  
[CHINESE CHARACTERS]
     223.40       271.00       301.20       316.00       334.00       334.00       369.33       408.39       451.59       499.36       552.17  
[CHINESE CHARACTERS]
     41.90       62.70       103.90       201.00       222.00       222.00       282.45       359.36       441.95       543.52       630.05  
[CHINESE CHARACTERS]
     35.20       38.80       43.60       82.00       120.00       120.00       163.06       221.56       301.06       409.09       555.88  
[CHINESE CHARACTERS]
     50.70       70.80       72.80       93.10       110.00       110.00       133.50       162.03       196.64       238.66       289.65  
[CHINESE CHARACTERS]
     NA       NA       28.00       46.60       55.40       55.40       77.93       109.61       154.18       216.88       305.06  
[CHINESE CHARACTERS]
     18.80       27.50       37.50       40.70       45.00       45.00       55.97       69.62       86.60       107.71       133.98  
[CHINESE CHARACTERS]
     10.40       19.60       23.70       25.70       36.00       36.00       49.10       66.98       91.36       124.62       169.98  
[CHINESE CHARACTERS]
     22.00       12.60       20.70       25.80       27.00       27.00       34.81       44.88       57.86       74.59       96.17  
[CHINESE CHARACTERS]
     NA       14.60       16.50       19.06       22.00       22.00       25.22       28.92       33.15       38.01       43.57  
Others
                                                                                        
 
Total
     583.30       746.60       966.90       1217.96       1346.40       1346.40       1641.34       2011.27       2462.25       3029.79       3709.27  
 
Total number of companies with retail chain stores
     40000.00       43000.00       45900.00       48600.00       51600.00       51600.00       54991.70       58606.33       62458.56       66564.00       70939.29  
 
Source:     1.   www.ccfa.org.cn, [CHINESE CHARACTERS]
 
    2.   Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation
                                                                                         
    Historical   Latest Available   Any Projected Data Available
(By number of stores)     2002       2003       2004       2005       2006       2006       2007       2008       2009       2010       2011  
[CHINESE CHARACTERS]
     104       156       335       625       820       820       1043       1327       1632       2008       2327  
[CHINESE CHARACTERS]
     3121       3967       5493       6345       6280       6280       6252       6225       6075       5929       5786  
[CHINESE CHARACTERS]
     134       148       193       363       520       520       685       902       1076       1283       1456  
[CHINESE CHARACTERS]
     1337       1629       1821       2133       2250       2250       2563       2919       3324       3786       4313  
[CHINESE CHARACTERS]
     51       96       120       130       182       182       208       237       254       274       310  
[CHINESE CHARACTERS]
   NA     41       62       78       95       95       114       137       155       176       189  
[CHINESE CHARACTERS]
     355       518       608       659       728       728       826       937       1007       1083       1101  
[CHINESE CHARACTERS]
     54       62       70       74       76       76       78       80       83       85       86  
[CHINESE CHARACTERS]
     702       1213       1232       1572       1857       1857       2106       2389       2710       3073       3667  
[CHINESE CHARACTERS]
     NA       NA       NA       60       68       68       NA       NA       NA       NA       NA  
Others
                                                                                        
 
Total
     5858       7830       9934       12039       12876       12876       13875       15152       16316       17697       19235  
 
Total number of companies with retail chain stores
     40000       43000       45900       48600       51600       51600       54992       58606       62459       66564       70939  
 
Source:     1.   www.ccfa.org.cn, [CHINESE CHARACTERS]
 
    2.   Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation
8    Pharmaceutical Products in China (table 2.8)
                                                                                           
    Historical   Latest Available   Any Projected Data Available
(Number of Kinds)     2002       2003       2004       2005       2006       2006       2007       2008       2009       2010       2011  
Pharmaceutical products(Westen Medicines)
     97175       99785       105554       115228       121665       121665       128697       136135       144004       152327       161131  
Pharmaceutical compounds(Westen Medicines)
     12800       13000       14000       15200       16000       16000       16918       17889       18915       20000       21147  
 
Compounds
[CHINESE CHARACTERS] (Westen Medicine)
   725       —       1031       —       —       1031       NA       NA       NA       NA       NA  
[CHINESE CHARACTERS] (TCM)
     415       —       823       —       —       823       NA       NA       NA       NA       NA  
 
Source:     1.   www.ccfa.org.cn [CHINESE CHARACTERS]
 
    2.   [CHINESE CHARACTERS]
 
    3.   Frost & Sullivan database
Note: The forecast data (2007 to 2011) based on F&S estimation

 

 

(TABLE)
FORTUNUSCN\Drafting\industry section\Fortunus Industry Section Datapack v2.xls Charts of pharmacies 10/25/2007 7:57 AM Overall Pharmaceutical Industry 1 Pharmacies in China Historical Number of stores 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Hospital pharmacies 297000 282771 287797 298997 308969 312036 315133 318261 321420 324611 Retail chained pharmacies 26000 35000 43000 61000 65000 73367 82811 95103 109219 127995 Individual pharmacies 84000 95000 117000 139000 165000 172603 180557 178251 175973 173725 Total Number of Pharmacies stores in China#i—ëšS “X“X–Ê —Ê#j 110000 130000 160000 200000 230000 245970 263368 273353 285193 301720 Total 407000 412771 447797 498997 538969 558006 578501 591614 606613 626331 (Number of companies) Hospital pharmacies 297000 282771 287797 298997 308969 318230 327769 337594 347714 358136 Retail chained pharmacies 503 1216 1624 1753 2000 2257 2548 2926 3361 3938 Individual pharmacies 84000 95000 117000 139000 165000 172,603.5 180,557.3 178,250.6 175,973.3 173,725.2 Others (please state the categories included) Total 381503 378987 406421 439750 475969 493091 510875 518771 527047 535800 Sales in RMB billions 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Hospital pharmacies 136 154 174 204 232 254 279 298 319 326 Retail chained and individual pharmacies 51 60 69 79 92 107 126 152 185 226 Others (please state the categories included) Total 187.53 213.61 242.6 282.59 323.11 361.44 404.69 450.53 503.32 552.27 Source: 1. www.chinacdc.net.cn, #s’†#‘ #¶#– “W#î™v Œö #t#C 2002-2006”N 2. www.chinacdc.net.cn#C ’†#‘#3/4•a –h#T#§’†#S#C ’†#‘ #¶ “E—v 2. #s’†#‘ˆã #s ’[Ši‹Ç#t, àj, ˆã , 2007 3. #s2007”Nˆã —ëšS#s #ó™v•a#Í#t, –k‹# ‰¡ #M‘§’†#S 4. Frost & Sullivan database Note: The forecast data (2007 to 2011) based on F&S estimation
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