China Jo-Jo Drugstores Reports Second Quarter 2021 Financial Results
Rhea-AI Summary
China Jo-Jo Drugstores (NASDAQ: CJJD) reported its financial results for the second fiscal quarter ending September 30, 2020. Revenue increased by 8.8% to $30.84 million, with gross profit rising 4.8% to $7.01 million. Online pharmacy sales surged 127.4% year-over-year. However, net loss rose to $1.53 million, maintaining a loss per share of $0.04. The company improved its cash position to $21.65 million from $16.18 million in March 2020. The overall gross margin decreased slightly to 22.7%.
Positive
- Revenue increased by 8.8% to $30.84 million.
- Gross profit rose by 4.8% to $7.01 million.
- Online pharmacy revenue surged by 127.4% year-over-year.
- Cash position improved from $16.18 million to $21.65 million.
- Loss from operations decreased by 55.7% to $1.94 million over six months.
Negative
- Net loss increased to $1.53 million from $1.35 million.
- Gross margin decreased slightly to 22.7% from 23.6%.
- Retail drugstore revenue declined by 0.4% to $17.93 million.
- Wholesale revenue decreased by 5.5% to $7.56 million.
News Market Reaction – CJJD
In the trading session that priced this news, CJJD declined 2.71%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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HANGZHOU, China, Nov. 13, 2020 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) ("Jo-Jo Drugstores" or the "Company"), a leading online and offline retailer, wholesale distributor of pharmaceutical and other healthcare products and healthcare provider in China, today announced its financial results for the second fiscal quarter ended September 30, 2020.
Mr. Lei Liu, Chairman and CEO of Jo-Jo Drugstores, commented, "We are pleased with our second quarter performance as we delivered another quarter of strong results. Our revenue and gross profit recorded
Second Quarter of Fiscal 2021 Financial Highlights
For the Three Months Ended September 30, | ||||||
($ millions, except per share data) | 2020 | 2019 | % Change | |||
Revenue | 30.84 | 28.35 | ||||
Retail drugstores | 17.93 | 18.00 | - | |||
Online pharmacy | 5.35 | 2.35 | ||||
Wholesale | 7.56 | 8.00 | - | |||
Gross profit | 7.01 | 6.69 | ||||
Gross margin | -0.9 pp* | |||||
Loss from operations | (1.52) | (1.62) | ||||
Net loss | (1.53) | (1.35) | - | |||
Loss per share | (0.04) | (0.04) | -% | |||
*Notes: pp represents percentage points | ||||||
- Revenue increased by
8.8% to$30.84 million for the three months ended September 30, 2020 from$28.35 million for the same period of last year. - Gross profit increased by
4.8% to$7.01 million for the three months ended September 30, 2020 from$6.69 million for the same period of last year. - Gross margin decreased slightly by 0.9 percentage points to
22.7% for the three months ended September 20, 2020 from23.6% for the same period of last year. - Net loss was
$1.53 million , or$0.04 per basic and diluted share, for the three months ended September 30, 2020, compared to net loss of$1.35 million , or$0.04 per basic and diluted share, for the same period of last year.
Second Quarter of Fiscal 2021 Financial Results
Revenue
Revenue for the three months ended September 30, 2020 increased by
For the Three Months Ended September 30, | ||||||||||||
2020 | 2019 | |||||||||||
($ millions) | Revenue | Cost of | Gross | Revenue | Cost of | Gross | ||||||
Retail drugstores | 17.93 | 12.33 | 18.00 | 12.47 | ||||||||
Online pharmacy | 5.35 | 4.74 | 2.35 | 2.03 | ||||||||
Wholesale | 7.56 | 6.76 | 8.00 | 7.16 | ||||||||
Total | 30.84 | 23.83 | 28.35 | 21.66 | ||||||||
Revenue from the retail drugstores business decreased slightly by
Revenue from the online pharmacy business increased by
Revenue from the wholesale business decreased by
Gross profit and gross margin
Total cost of goods sold increased by
Gross margins for retail drugstores, online pharmacy and wholesale were
Loss from operations
Selling and marketing expenses decreased by
General and administrative expenses increased by
Loss from operations was
Net loss
Net loss was
Six Months Ended September 30, 2020 Financial Highlights
For the Six Months Ended September 30, | ||||||
($ millions, except per share data) | 2020 | 2019 | % Change | |||
Revenue | 61.90 | 53.63 | ||||
Retail drugstores | 36.74 | 34.74 | ||||
Online pharmacy | 10.26 | 4.79 | ||||
Wholesale | 14.90 | 14.10 | ||||
Gross profit | 14.99 | 12.75 | ||||
Gross margin | 0.4 pp* | |||||
Loss from operations | (1.94) | (4.38) | ||||
Net loss | (1.92) | (3.73) | ||||
Loss per share | (0.05) | (0.10) | ||||
*Notes: pp represents percentage points | ||||||
- Revenue increased by
15.4% to$61.90 million for the six months ended September 30, 2020 from$53.63 million for the same period of last year. - Gross profit increased by
17.5% to$14.99 million for the six months ended September 30, 2020 from$12.75 million for the same period of last year. - Gross margin increased by 0.4 percentage points to
24.2% for the six months ended September 20, 2020 from23.8% for the same period of last year. - Net loss was
$1.92 million , or$0.05 per basic and diluted share, for the six months ended September 30, 2020, compared to net loss of$3.73 million , or$0.10 per basic and diluted share, for the same period of last year.
Six Months Ended September 30, 2020 Financial Results
Revenue
Revenue for the six months ended September 30, 2020 increased by
For the Six Months Ended September 30, | ||||||||||||
2020 | 2019 | |||||||||||
($ millions) | Revenue | Cost of | Gross | Revenue | Cost of | Gross | ||||||
Retail drugstores | 36.74 | 24.73 | 34.74 | 24.15 | ||||||||
Online pharmacy | 10.26 | 8.97 | 4.79 | 4.13 | ||||||||
Wholesale | 14.90 | 13.20 | 14.10 | 12.60 | ||||||||
Total | 61.90 | 46.90 | 53.63 | 40.88 | ||||||||
Revenue from the retail drugstores business increased by
Revenue from the online pharmacy business increased by
Revenue from the wholesale business increased by
Gross profit and gross margin
Total cost of goods sold increased by
Gross margins for retail drugstores, online pharmacy and wholesale were
Loss from operations
Selling and marketing expenses increased by
General and administrative expenses decreased by
Loss from operations was
Net loss
Net loss was
Financial Condition
As of September 30, 2020, the Company had cash of
About China Jo-Jo Drugstores, Inc.
China Jo-Jo Drugstores, Inc. ("Jo-Jo Drugstores" or the "Company"), is a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a provider of healthcare services in China. Jo-Jo Drugstores currently operates an online pharmacy and retail drugstores with licensed doctors on site for consultation, examination and treatment of common ailments at scheduled hours. It is also a wholesale distributor of products similar to those carried in its pharmacies. For more information about the Company, please visit http://jiuzhou360.com. The Company routinely posts important information on its website.
Forward-Looking Statements
This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company's encourages you to review other factors that may affect its future results in the Company's annual reports and in its other filings with the Securities and Exchange Commission.
For more information, please contact:
Company Contact:
Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@jojodrugstores.com
Steve Liu
Investor Relations Director
steve.liu@jojodrugstores.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-917-609-0333
tina.xiao@ascent-ir.com
CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(UNAUDITED) | ||||||||
September 30, | March 31, | |||||||
2020 | 2020 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 21,646,487 | $ | 16,176,318 | ||||
Restricted cash | 13,722,479 | 14,806,288 | ||||||
Financial assets available for sale | 163,818 | 157,159 | ||||||
Notes receivable | 73,494 | 57,005 | ||||||
Trade accounts receivable | 9,992,142 | 9,770,656 | ||||||
Inventories | 13,227,559 | 12,247,004 | ||||||
Other receivables, net | 5,225,418 | 5,069,442 | ||||||
Advances to suppliers | 1,929,273 | 1,174,800 | ||||||
Other current assets | 1,833,208 | 1,528,540 | ||||||
Total current assets | 67,813,878 | 60,987,212 | ||||||
PROPERTY AND EQUIPMENT, net | 6,768,478 | 7,633,740 | ||||||
OTHER ASSETS | ||||||||
Long-term investment | 4,115,839 | 2,544,451 | ||||||
Farmland assets | 789,638 | 742,347 | ||||||
Long term deposits | 1,533,640 | 1,456,384 | ||||||
Other noncurrent assets | 1,077,100 | 1,046,763 | ||||||
Operating lease right-of-use assets | 19,946,821 | 21,711,376 | ||||||
Intangible assets, net | 3,440,046 | 3,393,960 | ||||||
Total other assets | 30,903,084 | 30,895,281 | ||||||
Total assets | $ | 105,485,440 | $ | 99,516,233 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loan | $ | 2,204,820 | 1,410,130 | |||||
Accounts payable, trade | 24,904,087 | 21,559,494 | ||||||
Notes payable | 23,327,972 | 26,605,971 | ||||||
Other payables | 1,888,563 | 2,522,330 | ||||||
Other payables - related parties | 574,103 | 490,218 | ||||||
Customer deposits | 1,262,520 | 708,140 | ||||||
Taxes payable | 245,203 | 119,247 | ||||||
Accrued liabilities | 653,409 | 753,612 | ||||||
Long-term loan payable-current portion | 2,375,729 | 2,287,742 | ||||||
Current portion of operating lease liabilities | 1,056,181 | 981,090 | ||||||
Total current liabilities | 58,492,587 | 57,437,974 | ||||||
Long-term loan payable | 3,089,373 | 4,115,958 | ||||||
Long-term operating lease liabilities | 16,500,499 | 19,049,575 | ||||||
Employee Deposits | 14,699 | 70,507 | ||||||
Purchase option and warrants liability | 36,306 | 64,090 | ||||||
Total liabilities | 78,133,464 | 80,738,104 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock; | 37,962 | 32,937 | ||||||
Preferred stock; | - | - | ||||||
Additional paid-in capital | 63,568,876 | 54,209,301 | ||||||
Statutory reserves | 1,309,109 | 1,309,109 | ||||||
Accumulated deficit | (38,126,065) | (36,400,837) | ||||||
Accumulated other comprehensive income | 2,565,454 | 1,440,424 | ||||||
Total stockholders' equity | 29,355,336 | 20,590,934 | ||||||
Noncontrolling interests | (2,003,360) | (1,812,805) | ||||||
Total equity | 27,351,976 | 18,778,129 | ||||||
Total liabilities and stockholders' equity | $ | 105,485,440 | $ | 99,516,233 | ||||
CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
REVENUES, NET | $ | 30,842,545 | $ | 28,353,779 | $ | 61,896,857 | $ | 53,634,563 | ||||||||
COST OF GOODS SOLD | 23,829,793 | 21,660,415 | 46,903,886 | 40,879,761 | ||||||||||||
GROSS PROFIT | 7,012,752 | 6,693,364 | 14,992,971 | 12,754,802 | ||||||||||||
SELLING EXPENSES | 6,475,512 | 6,485,848 | 12,747,919 | 12,454,399 | ||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | 2,061,559 | 1,823,935 | 4,181,725 | 4,675,547 | ||||||||||||
TOTAL OPERATING EXPENSES | 8,537,071 | 8,309,783 | 16,929,644 | 17,129,946 | ||||||||||||
LOSS FROM OPERATIONS | (1,524,319) | (1,616,419) | (1,936,673) | (4,375,144) | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
INTEREST INCOME | 187,667 | 340,514 | 351,255 | 388,387 | ||||||||||||
INTEREST EXPENSE | (117,692) | - | (245,079) | - | ||||||||||||
OTHER | (124,496) | (72,225) | (74,475) | (134,710) | ||||||||||||
CHANGE IN FAIR VALUE OF DERIVATIVE | 32,674 | 6,865 | 27,784 | 410,420 | ||||||||||||
LOSS BEFORE INCOME TAXES | (1,546,166) | (1,341,265) | (1,877,188) | (3,711,047) | ||||||||||||
PROVISION FOR INCOME TAXES | (18,975) | 5,702 | 38,595 | 14,090 | ||||||||||||
NET LOSS | (1,527,191) | (1,346,967) | (1,915,783) | (3,725,137) | ||||||||||||
LESS: NET LOSS ATTRIBUTABLE TO | (33,472) | (122,004) | (190,555) | (365,223) | ||||||||||||
NET LOSS ATTRIBUTABLE TO CHINA JO-JO | (1,493,719) | (1,224,963) | (1,725,228) | (3,359,914) | ||||||||||||
Foreign currency translation adjustments | 1,031,461 | (536,335) | 1,125,030 | (941,573) | ||||||||||||
COMPREHENSIVE LOSS | $ | (495,730) | $ | (1,883,302) | $ | (790,753) | $ | (4,666,710) | ||||||||
WEIGHTED AVERAGE NUMBER OF SHARES: | ||||||||||||||||
Basic | 37,961,790 | 32,936,786 | 36,232,144 | 32,696,348 | ||||||||||||
Diluted | 37,961,790 | 32,936,786 | 36,232,144 | 32,696,348 | ||||||||||||
EARNINGS PER SHARES: | ||||||||||||||||
Basic | $ | (0.04) | $ | (0.04) | $ | (0.05) | $ | (0.10) | ||||||||
Diluted | $ | (0.04) | $ | (0.04) | $ | (0.05) | $ | (0.10) | ||||||||
CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
For the six months ended | ||||||||
2020 | 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (1,915,783) | $ | (3,725,137) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Bad debt direct write-off and provision | (286,076) | 767,250 | ||||||
Depreciation and amortization | 1,258,156 | 1,051,907 | ||||||
Stock based compensation | - | 34,560 | ||||||
Change in fair value of purchase option derivative liability | (27,784) | (410,420) | ||||||
Changes in operating assets and liabilities： | ||||||||
Accounts receivable, trade | 41,724 | 555,289 | ||||||
Notes receivable | (13,675) | 92,655 | ||||||
Inventories and biological assets | (448,573) | 975,170 | ||||||
Other receivables | 279,650 | (206,247) | ||||||
Advances to suppliers | (531,255) | (106,790) | ||||||
Other current assets | (853,289) | (1,031,185) | ||||||
Long term deposit | (15,106) | 682,504 | ||||||
Other noncurrent assets | 13,619 | 13,791 | ||||||
Accounts payable, trade | 2,362,338 | 1,938,015 | ||||||
Other payables and accrued liabilities | (845,411) | (568,457) | ||||||
Customer deposits | 509,549 | 744,912 | ||||||
Taxes payable | 123,082 | 165,692 | ||||||
Net cash used in/provided by operating activities | (348,834) | 973,509 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Disposal of financial assets available for sale | - | 14,457 | ||||||
Acquisition of equipment | (33,968) | (374,992) | ||||||
Purchases of intangible assets | (55,038) | (462,266) | ||||||
Investment in a joint venture | (1,422,193) | - | ||||||
Additions to leasehold improvements | (246,846) | (622,464) | ||||||
Net cash used in investing activities | (1,758,045) | (1,445,265) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from short-term bank loan | 714,160 | 682,692 | ||||||
Repayment of third parties' loan | (1,175,725) | - | ||||||
Proceeds from notes payable | 22,668,388 | 21,745,277 | ||||||
Repayment of notes payable | (26,949,176) | (24,862,363) | ||||||
Decrease in Employee Deposits | (57,133) | - | ||||||
Exercise of warrants | 77,500 | - | ||||||
Proceeds from equity financing | 9,205,173 | 9,273,077 | ||||||
Repayment of other payables-related parties | 68,994 | (458,002) | ||||||
Net cash provided by financing activities | 4,552,181 | 6,380,681 | ||||||
EFFECT OF EXCHANGE RATE ON CASH | 1,941,058 | (1,368,958) | ||||||
INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 4,386,360 | 4,539,967 | ||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 30,982,606 | 24,745,202 | ||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 35,368,966 | $ | 29,285,169 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | 247,371 | - | ||||||
Cash paid for income taxes | $ | 3,457 | $ | 28,777 | ||||
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SOURCE China Jo-Jo Drugstores, Inc.