ITOCHU Announces Establishment of Drugstore Business Joint Venture in China

-First Japanese-style drugstore in northeastern China-

March 29, 2013

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) today announced that cocokara fine Inc. (headquartered in Kohoku-ku, Yokohama; Atsushi Tsukamoto, President; hereinafter “cocokara fine”), ITOCHU, and Alfresa Holdings Corporation (headquartered in Chiyoda-ku, Tokyo; Denroku, Ishiguro, Representative Director & President; hereinafter “Alfresa”) have agreed with CDFY Pharmacy Chain Investment Co., Ltd. (hereinafter “CDFY”); a pharmaceutical distribution subsidiary of Liaoning Chengda Co., Ltd. (hereinafter “Liaoning Chengda”), to establish a joint venture that will operate drugstore business in northeastern China.

cocokara fine is promoting the expansion of its drugstore business overseas, mainly in Southeast Asia, as one of its medium-term management strategies, under its corporate philosophy of “contributing to local communities by pursuing people’s mental and physical health.” cocokara fine has been operating stores in coastal areas of China where growth is expected to continue, through shanghai cocokara fine inc., which was established in 2012.

ITOCHU established Beijing ITOCHU-Huatang Comprehensive Processing Co., Ltd. (hereinafter “BIC”) in 1997 to operate the general wholesale business of cosmetics, daily commodities, and sundries mainly for Japanese companies through a total of 13 bases in the coastal area and inland cities. Additionally, ITOCHU and Alfresa established Remeje Pharmaceuticals (China) Co., Ltd. (hereinafter “Remeje”) in 2005; a joint venture that mainly supplies Japanese pharmaceutical and healthcare products. Both companies and Liaoning Chengda have concluded the “basic agreement for comprehensive business ties” in March 2011. Since then, the three companies have been considering operating Japanese-style drugstores in China in collaboration with CDFY; which operates approximately 900 pharmacies in China.

As such, the four companies (cocokara fine, ITOCHU, Alfresa and CDFY) have agreed to establish a joint venture to promote the operation of Japanese-style drugstore business in the six regions: including three northeastern provinces (Liaoning, Jilin and Heilongjiang), Hebei, Shandong and Inner Mongolia. The four companies have come to an agreement based on the judgment that they can operate Japanese-style drugstores in China at an accelerated pace: by leveraging cocokara fine’s expertise in operating such stores, CDFY’s expertise in the pharmacy business in China, and the function of BIC and Remeje for supplying Japanese products, etc.

Outline of the joint venture

Company name Liaoning Kangxinmei Commercial Chain Co., Ltd.
Location 71 Renmin Road, Dalian, Liaoning, China
Chairman Wang Yuhui (CDFY)
President Seizaburo Okushi (cocokara fine)
Established June 2013 (expected)
Capital 15 million yuan
Main business Operation of Japanese-style drugstores
Ownership ratio

CDFY: 51%

cocokara fine: 25%


Alfresa: 12%

Outline of relevant companies

Liaoning Chengda Co., Ltd.

Company name Liaoning Chengda Co., Ltd.
Location 71 Renmin Road, Dalian, Liaoning, China
Name and title of representative Shang Shuzhi, chairperson
Established March 1991
Capital 900 million yuan
Main business Distribution of drugs, production and sale of vaccines, energy development, financial services, international trade, etc.

CDFY Pharmacy Chain Investment Co., Ltd.

Company name CDFY Pharmacy Chain Investment Co., Ltd.
Location 205 Zhongshan Road, Shenyang, Liaoning, China
Name and title of representative Wang Yuhui, chairperson
Established October 2000
Capital 230 million yuan
Main business Operation of pharmacies, wholesale business, distribution of drugs, etc.

cocokara fine Inc.

Company name cocokara fine Inc.
Location 17-6, Shin-Yokohama 3-chome, Kohoku-ku, Yokohama
Name and title of representative Atsushi Tsukamoto, president & representative director
Established April 1, 2008
Capital 1,000 million yen
Main business Management of drugstores and dispensing pharmacies, nursing care business, wholesale business, etc.

ITOCHU Corporation

Company name ITOCHU Corporation
Location 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo
Name and title of representative Masahiro Okafuji, president and chief executive officer
Established December 1, 1949
Capital 202,241 million yen
Main business Domestic and overseas trading, import/export, business investment in Japan and overseas.

Alfresa Holdings Corporation

Company name Alfresa Holdings Corporation
Location 1-1-3 Otemachi, Chiyoda-ku, Tokyo
Name and title of representative Denroku Ishiguro, representative director & president
Established September 29, 2003
Capital 18,454 million yen
Main business

Management of subsidiaries that deal with wholesaling, manufacturing, marketing and import/export of

pharmaceuticals, diagnostic reagents, medical devices, etc