China Jo-Jo Drugstores Stock Price, News & Analysis

China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD), also referred to as "Jo-Jo Drugstores," is described in its public communications as a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products, as well as a provider of healthcare services in China. The company is classified in the Retail Trade sector and the Pharmacies and Drug Stores industry. Its ordinary shares trade on the Nasdaq Capital Market under the symbol CJJD.

According to the company’s disclosures, Jo-Jo Drugstores operates an online pharmacy and retail drugstores in China. These retail locations are described as having licensed doctors on site for consultation, examination and treatment of common ailments at scheduled hours. In addition to its retail and online activities, the company acts as a wholesale distributor of products similar to those carried in its pharmacies.

Business model and segments

In its fiscal year 2024 financial results, Jo-Jo Drugstores reports revenue generated from three main lines of business: retail drugstores, online pharmacy, and wholesale. The retail drugstores segment reflects sales from physical pharmacy locations. The online pharmacy segment reflects sales through internet channels. The wholesale segment reflects distribution of pharmaceutical and other healthcare products to wholesale buyers. The company’s financial reporting breaks out revenue and gross margin for each of these segments, indicating that they are key components of its business model.

The company’s disclosures state that it is both a retailer and a wholesale distributor of pharmaceutical and other healthcare products. Its financial statements show that revenue is recognized from selling these products through its retail stores, online platforms and wholesale channels. The company also notes that it operates in a competitive healthcare market in China and has focused efforts on targeting wholesale buyers through modern wholesale platforms.

Wholesale focus and strategic restructuring

In a February 2025 press release, Jo-Jo Drugstores announced that it had entered into definitive agreements for a strategic restructuring initiative intended to transition the company into an asset-light, wholesale-focused company. The restructuring, which is subject to shareholder approval and other customary closing conditions, involves two major transactions.

The first is an acquisition transaction, under which the company agreed to acquire Allright (Hangzhou) Internet Technology Co. Ltd. ("Allright"), described as a fast-growing company engaged in the pharmaceutical wholesale business. The acquisition is structured as an equity exchange for the issuance of ordinary shares of Jo-Jo Drugstores.

The second is a divestiture transaction, under which Jo-Jo Drugstores agreed to sell its drug retail business to Lei Liu and Li Qi and their affiliates in exchange for the surrender of ordinary shares they hold in the company. The company states that these transactions are part of its plan to streamline operations, move away from a high-cost retail segment and focus on wholesale activities.

In the same announcement, the company notes that following the closing of the transactions, certain existing leaders are expected to resign from the board and management roles, and the ultimate shareholder of Allright is expected to join the board. The company also states that its current chief financial officer is expected to assume the role of interim chief executive officer to oversee continued operations and integration of Allright’s business.

Retail and online operations

In multiple press releases, Jo-Jo Drugstores describes itself as operating retail drugstores with licensed doctors on site for consultation, examination and treatment of common ailments during scheduled hours. It also states that it operates an online pharmacy. The company’s fiscal year 2024 financial results categorize revenue from “retail drugstores” and “online pharmacy,” and provide segment-level revenue and gross margin information for each.

The company attributes changes in retail drugstore revenue to factors such as local consumption patterns, competition and nonrecurring effects related to government policy changes. For its online pharmacy business, the company notes that sales are influenced by pricing transparency on e-commerce platforms and competition from other sellers.

Wholesale operations

Jo-Jo Drugstores’ fiscal year 2024 financial results highlight growth in its wholesale business. The company reports that revenue from wholesale activities increased compared with the prior year and that online platforms for bulk medical product transactions have become popular channels for wholesale trade. It states that these platforms attract many buyers and sellers and that the company has devoted significant efforts to exploring buyers on these platforms with certain products at reasonable prices.

The company’s disclosures also state that it views selling on modern wholesale platforms as a potential growth point and that it has been actively looking for potential acquisition targets with trading platforms to strengthen its wholesale business. The later announcement of the planned acquisition of Allright, a company engaged in pharmaceutical wholesale, is consistent with this stated focus.

Capital markets activity and Nasdaq listing

Jo-Jo Drugstores has reported several registered direct offerings of its ordinary shares under an effective shelf registration statement on Form F-3. In 2023 and 2024 press releases, the company describes entering into definitive agreements with investors for the issuance of ordinary shares in offerings intended to raise funds for general corporate purposes and working capital. These offerings are conducted pursuant to a registration statement declared effective by the U.S. Securities and Exchange Commission.

With respect to its listing status, Jo-Jo Drugstores has disclosed communications with Nasdaq regarding the minimum bid price requirement. In December 2023, the company reported receiving a second extension from Nasdaq to regain compliance with the minimum bid price rule. In February 2024, it announced a 1-for-20 reverse stock split of its ordinary shares, with trading to continue on the Nasdaq Capital Market under the symbol CJJD on a split-adjusted basis. In March 2024, the company reported that Nasdaq notified it that it had regained compliance with the minimum bid price requirement after its shares traded at or above the required minimum for the specified period.

Regulatory reporting and corporate structure

Jo-Jo Drugstores is described in its press releases as a Cayman Islands exempted company with ordinary shares listed on Nasdaq. The company files reports with the U.S. Securities and Exchange Commission, including annual and current reports and registration statements. A later Form 6-K filing furnished by a Cayman Islands company named Ridgetech, Inc. indicates a change in the registrant’s English name in that filing, but the excerpted text does not provide additional descriptive information about the operating business beyond referencing an earnings release.

The company’s financial statements, as summarized in its fiscal year 2024 press release, present consolidated balance sheets, statements of operations and cash flows, and show assets, liabilities and shareholders’ equity for the group. These disclosures indicate that Jo-Jo Drugstores reports under U.S. securities laws as a foreign private issuer.

Position within the pharmacies and drug stores industry

Based on its own descriptions, Jo-Jo Drugstores participates in China’s healthcare and pharmaceutical retail and distribution market through a combination of brick-and-mortar pharmacies, online pharmacy operations and wholesale distribution. The company’s press releases emphasize its dual role as both a retailer and a wholesale distributor and its provision of healthcare services through licensed doctors at its retail locations.

The company’s communications also highlight its focus on adapting to a competitive environment, including the use of modern wholesale platforms and consideration of acquisitions to enhance its wholesale capabilities. The announced strategic restructuring to transition to an asset-light, wholesale-focused model is presented by the company as a way to streamline operations and concentrate on areas it identifies as having growth potential.

Historical context and evolution

Over the periods discussed in its public disclosures, Jo-Jo Drugstores has reported revenue contributions from retail, online and wholesale segments, as well as changes in operating expenses such as selling, general and administrative costs and bad debt expense. The company has also described changes in its capital structure through registered direct offerings and a reverse stock split.

The February 2025 restructuring announcement indicates a planned shift away from direct ownership of the retail drugstore business toward a more wholesale-centered, asset-light structure, combined with the acquisition of a wholesale-focused company. These steps, as described by Jo-Jo Drugstores, represent a significant evolution in how it intends to participate in the pharmacies and drug stores industry in China.