CJJD
$0.54
China Jojo Drugstore
($.02)
(3.18%)
Earnings Details
Quarter March 2021
Tuesday, June 29, 2021 9:00:00 AM
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Summary

China Jojo Drugstore (CJJD) Recent Earnings

China Jojo Drugstore (CJJD) reported breakeven results for the Quarter March 2021 on revenue of $35.7 million.. Revenue grew 17.7% on a year-over-year basis.

Results
Reported Earnings
$0.00
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$35.7 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

China Jo-Jo Drugstores Reports Fiscal Year 2021 Financial Results

HANGZHOU, China, June 29, 2021 /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 fiscal year ended March 31, 2021.

Mr. Lei Liu, Chairman and CEO of Jo-Jo Drugstores, commented, "We are pleased to present our financial results for the fiscal year 2021. Our revenue and gross profit record $133.13 million and $29.24 million for the fiscal year 2021, up 13.5% and 14.6% compared to the fiscal year 2020. Revenue from retail drugstores, online pharmacy, and wholesale segments increased by 2.7%, 66.1% and 16.3%, respectively, demonstrating that we successfully executed our multifaceted growth strategy and strategic transformation."

Mr. Liu continued, "The project of 'Healthy China 2030' brings us new opportunities since it will advance the healthcare sector reforms and greatly enhance overall medical service quality and efficiency in China. To realize the potential of our business model in this trend, we enhanced various information and data systems, continued to develop the management system for patients with chronic diseases, upgraded our 'Medical + Medicine' business model, introduced digital services, developed 24-hour service stores, launched a new Office Automation system, and accelerated comprehensive budget management. We aim to build a strong foundation for sustainable growth and engage with consumers from various platforms.  As a leading consumer brand in China with a diversified portfolio of essential healthcare businesses, we are confident that we are on the right track to deliver significant value to all of our investors."  

Fiscal Year 2021 Financial Highlights



For the Year Ended March 31,

($ millions, except per share data)


2021


2020


% Change

Revenue


133.13


117.33


13.5%

      Retail drugstores


76.10


74.08


2.7%

      Online pharmacy


22.48


13.54


66.1%

      Wholesale


34.55


29.71


16.3%

Gross profit


29.24


25.53


14.6%

Gross margin


22.0%


21.8%


0.2 pp*

Loss from operations


(8.84)


(7.00)


-26.2%

Net loss


(8.38)


(6.46)


-29.7%

Loss per share


(0.20)


(0.18)


-11.1%

*Notes: pp represents percentage points

  • Revenue increased by 13.5% to $133.13 million for the fiscal year ended March 31, 2021 from $117.33 million for the prior fiscal year.
  • Gross profit increased by 14.6% to $29.24 million for the fiscal year ended March 31, 2021 from $25.53 million for the prior fiscal year.
  • Gross margin increased slightly by 0.2 percentage points to 22.0% for the fiscal year ended March 31, 2021 from 21.8% for the prior fiscal year.
  • Net loss was $8.38 million, or $0.20 per basic and diluted share, for the fiscal year ended March 31, 2021, compared to net loss of $6.46 million, or $0.18 per basic and diluted share, for the prior fiscal year.

Fiscal Year 2021 Financial Results

Revenue

Revenue for the fiscal year ended March 31, 2021 increased by $15.80 million, or 13.5%, to $133.13 million from $117.33 million for the prior fiscal year. The increase in revenue was primarily due to the growth in retail drugstores business, online pharmacy and wholesale business.



For the Year Ended March 31,



2021


2020

($ millions)


Revenue


Cost of
Goods


Gross
Margin


Revenue


Cost of
Goods


Gross
Margin

Retail drugstores


76.10


53.09


30.2%


74.08


53.24


28.1%

Online pharmacy


22.48


20.15


10.4%


13.54


12.11


10.6%

Wholesale


34.55


30.65


11.3%


29.71


26.45


11.0%

Total


133.13


103.89


22.0%


117.33


91.80


21.8%

Revenue from the retail drugstores business increased by $2.02 million, or 2.7%, to $76.10 million for the fiscal year ended March 31, 2021 from $74.08 million for the prior fiscal year. However, after removing the impact of exchange rate fluctuation, the actual retail drugstores sales decreased by 1.5%. The actual decrease in retail drugstore sales was primarily due to the negative effect on the overall economy from COVID-19 and the Company's strategic decision to cease selling certain low-profit margin products that are eligible for reimbursement by National Healthcare Security Administration since September 1, 2020.

Revenue from the online pharmacy business increased by $8.94 million, or 66.1%, to $22.48 million for the fiscal year ended March 31, 2021 from $13.54 million for the prior fiscal year. The increase was primarily caused by an increase in the sales of prescription drugs via e-commerce platforms such as Tmall. In the past, prescription drugs cannot be sold online due to safety concern. After the nation lifted the ban order, online prescription drug sales became popular. As a result, the sale of prescription drugs was $8.24 million in the year ended March 31, 2021 as compared to $1.45 million in the year ended March 31, 2020. Additionally, the Company maintained a membership care program targeted at customers with chronic disease. The Company has closely interacted with its members via WeChat to provide healthcare knowledge, and to remind them to refill medicine. By implementing a personalized customer care program, the Company was able to promote its sales.

Revenue from the wholesale business increased by $4.84 million, or 16.3%, to $34.55 million for the fiscal year ended March 31, 2021 from $29.71 million for the prior fiscal year. The increase was primarily accomplished by Company's ability to sell certain products, which were sold in large quantity at its retail stores, to other vendors at competitive prices.

Gross profit and gross margin

Total cost of goods sold increased by $12.09 million, or 13.2%, to $103.89 million for the fiscal year ended March 31, 2021 from $91.80 million for the prior fiscal year. Gross profit increased by $3.71 million, or 14.6%, to $29.24 million for fiscal year ended March 31, 2021 from $25.53 million for the prior fiscal year. Overall gross margin increased slightly by 0.2 percentage points to 22.0% for the fiscal year ended March 31, 2021, from 21.8% for the prior fiscal year.

Gross margins for retail drugstores, online pharmacy and wholesale were 30.2%, 10.4%, and 11.3%, respectively, for the fiscal year ended March 31, 2021, compared to gross margins for retail drugstores, online pharmacy and wholesale of 28.1%, 10.6%, and 11.0%, respectively, for the prior fiscal year.

Loss from operations

Selling and marketing expenses increased by $3.16 million, or 13.3%, to $26.95 million for the fiscal year ended March 31, 2021 from $23.79 million for the prior fiscal year. The increase in selling and marketing expenses was primarily due to increase in employee's salary and rent for office leases.

General and administrative expenses increased by 2.79 million, or 34.4%, to $10.90 million for the fiscal year ended March 31, 2021 from $8.11 million for the prior fiscal year. The increase in general and administrative expenses was primarily due to the increase in stock-based compensation, offset by the decrease in bad debt expense. In December 2020, the Company issued a total of 3,790,000 shares of common stock and recorded stock-based compensation of approximately $3.9 million. In the year ended March 31, 2021, the Company recorded the reduction in the allowance for bad debts of $1.0 million as compared to increase in bad debt expense in of $0.1 million in fiscal year 2020.

The Company recorded an impairment of long-lived assets of $0.23 million and $0.63 million for the year ended March 31, 2021 and 2020, respectively. In the year ended March 31, 2021, the Company evaluated the forest land use rights and recorded an impairment of $0.23 million. In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on their discounted positive cash value.

Loss from operations was $8.84 million for the fiscal year ended March 31, 2021, compared to loss from operations of $7.00 million for the prior fiscal year. Operating margin was (6.6) % and (6.0)% for the fiscal year ended March 31, 2021 and 2020, respectively.

Net loss

Net loss was $8.38 million, or $0.20 per basic and diluted share for the fiscal year ended March 31, 2021, compared to net loss of $6.46 million, or $0.18 per basic and diluted share for the prior fiscal year.

Financial Condition

As of March 31, 2021, the Company had cash of $22.05 million, compared to $16.18 million as of March 31, 2020. Net cash used in operating activities was $0.06 million for the fiscal year ended March 31, 2021, compared to $6.91 million for the prior fiscal year. Net cash used in investing activities was $2.00 million for the fiscal year ended March 31, 2021, compared to $4.84 million for the prior fiscal year. Net cash provided by financing activities was $3.08 million for the fiscal year ended March 31, 2021, compared to $19.01 million for the prior fiscal year.

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

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

CONSOLIDATED BALANCE SHEETS




March 31,



March 31,




2021



2020


ASSETS







CURRENT ASSETS







Cash and cash equivalents


$

22,045,628



$

16,176,318


Restricted cash



12,627,016




14,806,288


Financial assets available for sale



91,472




157,159


Notes receivable



39,392




57,005


Trade accounts receivable



13,423,728




9,770,656


Inventories



16,972,965




12,247,004


Other receivables, net



5,051,960




5,069,442


Advances to suppliers



421,963




1,174,800


Other current assets



1,560,119




1,528,540


Total current assets



72,234,243




60,987,212











PROPERTY AND EQUIPMENT, net



6,549,035




7,633,740











OTHER ASSETS









Long-term investment



3,981,986




2,544,451


Farmland assets



835,427




742,347


Long term deposits



1,546,764




1,456,384


Other noncurrent assets



856,391




1,046,763


Operating lease right-of-use assets



16,778,729




21,711,376


Intangible assets, net



3,528,056




3,393,960


Total other assets



27,527,353




30,895,281











Total assets


$

106,310,631



$

99,516,233











LIABILITIES AND STOCKHOLDERS' EQUITY









CURRENT LIABILITIES









Short-term bank loan



762,270




1,410,130


Accounts payable, trade



29,895,830




21,559,494


Notes payable



25,663,633




26,605,971


Other payables



2,940,000




2,522,330


Other payables - related parties



445,305




490,218


Customer deposits



1,146,247




708,140


Taxes payable



197,733




119,247


Accrued liabilities



501,111




753,612


Long-term loan payable-current portion



2,557,634




2,287,742


Current portion of operating lease liabilities



788,171




981,090


Total current liabilities



64,897,934




57,437,974











Long-term loan payable



1,892,269




4,115,958


Long term operating lease liabilities



15,118,083




19,049,575


Employee Deposits



-




70,507


Purchase option and warrants liability



-




64,090


Total liabilities



81,908,286




80,738,104











COMMITMENTS AND CONTINGENCIES


















STOCKHOLDERS' EQUITY









Common stock; $0.001 par value; 250,000,000 shares authorized; 41,751,790 and
32,936,786 shares issued and outstanding as of March 31, 2021 and March 31,
2020



41,752




32,937


Preferred stock; $0.001 par value; 10,000,000 shares authorized; nil issued and
outstanding as of March 31, 2021 and March 31, 2020



-




-


Additional paid-in capital



66,516,033




54,209,301


Statutory reserves



1,309,109




1,309,109


Accumulated deficit



(44,942,374)




(36,400,837)


Accumulated other comprehensive income



2,818,185




1,440,424


Total stockholders' equity



25,742,705




20,590,934


Noncontrolling interests



(1,340,360)




(1,812,805)


Total equity



24,402,345




18,778,129


Total liabilities and stockholders' equity


$

106,310,631



$

99,516,233


 

 

CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS




For the years ended
March 31,




2021



2020


REVENUES, NET


$

133,134,633



$

117,327,689











COST OF GOODS SOLD



103,890,824




91,801,259











GROSS PROFIT



29,243,809




25,526,430











SELLING EXPENSES



26,954,914




23,793,603


GENERAL AND ADMINISTRATIVE EXPENSES



10,897,629




8,108,377


IMPAIRMENT OF LONG-LIVED ASSETS



228,506




628,192


TOTAL OPERATING EXPENSES



38,081,049




32,530,172











LOSS FROM OPERATIONS



(8,837,240)




(7,003,742)











OTHER EXPENSE:









INTEREST INCOME



707,878




1,063,747


INTEREST EXPENSE



(455,187)




(698,518)


OTHER



176,519




(204,064)


CHANGE IN FAIR VALUE OF PURCHASE OPTION AND WARRANTS
LIABILITY



64,090




401,158











LOSS BEFORE INCOME TAXES



(8,343,940)




(6,441,419)











PROVISION FOR INCOME TAXES



31,638




16,258











NET LOSS



(8,375,578)




(6,457,677)











LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST



(255,716)




(644,308)











NET LOSS ATTRIBUTABLE TO CHINA JO-JO DRUGSTORES, INC.



(8,119,862)




(5,813,369)











OTHER COMPREHENSIVE LOSS









FOREIGN CURRENCY TRANSLATION ADJUSTMENTS



1,377,761




(1,068,540)











COMPREHENSIVE LOSS



(6,997,817)




(7,526,217)











WEIGHTED AVERAGE NUMBER OF SHARES:









Basic



40,780,762




32,816,567


Diluted



40,780,762




32,816,567











LOSS PER SHARES:









Basic


$

(0.20)



$

(0.18)


Diluted


$

(0.20)



$

(0.18)


 

 

CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS




For the years ended
March 31,




2021



2020


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income


$

(8,375,578)



$

(6,457,677)


Adjustments to reconcile net income to net cash used in operating activities:









Bad debt direct write-off and provision



(706,862)




446,354


Depreciation and amortization



1,750,890




2,082,817


Impairment of long lived assets



228,506




628,192


Stock based compensation



3,941,600




34,560


Change in fair value of purchase option derivative liability



(64,090)




(401,158)


Change in operating assets:









Accounts receivable, trade



(3,307,946)




(1,567,774)


Notes receivable



21,539




112,803


Inventories and biological assets



(3,615,017)




979,935


Other receivables



468,967




(1,010,722)


Advances to suppliers



1,893,857




148,638


Long term deposit



26,910




596,209


Other current assets



1,004,448




(1,278,833)


Other noncurrent assets



38,142




87,065


Change in operating liabilities:









Accounts payable, trade



6,380,115




(317,755)


Other payables and accrued liabilities



(183,111)




(967,751)


Customer deposits



368,690




(22,963)


Taxes payable



66,648




115


Net cash used in operating activities



(62,292)




(6,907,945)











CASH FLOWS FROM INVESTING ACTIVITIES:









Disposal of financial assets available for sale



75,973




14,356


Acquisition of equipment and building



(126,766)




(656,297)


Investment in a joint venture



(1,470,119)




(2,567,083)


Purchases of intangible assets



(97,802)




(871,145)


Additions to leasehold improvements



(379,611)




(756,444)


Net cash used in investing activities



(1,998,325)




(4,836,613)











CASH FLOWS FROM FINANCING ACTIVITIES:









Proceeds from short-term bank loan



738,315




1,435,620


Repayment of short-term bank loan



(1,476,630)




-


Proceeds from third parties loan



-




7,178,100


Repayment of third parties loan



(2,395,629)




(658,645)


Proceeds from notes payable



48,292,231




48,974,772


Repayment of notes payable



(51,295,776)




(46,896,917)


Increase in financial liability



(73,832)




(7,178)


Exercise of warrants



77,500




-


Proceeds from sale of stock and warrants



9,287,100




9,273,077


Repayment of other payables-related parties



(73,426)




(285,123)


Net cash provided by financing activities



3,079,853




19,013,706











EFFECT OF EXCHANGE RATE ON CASH



2,670,802




(1,031,744)











INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH



3,690,038




6,237,404


CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year



30,982,606




24,745,202


CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, end of year


$

34,672,644



$

30,982,606











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:









Cash paid for income taxes


$

37,738



$

17,198


Cash paid for interest



455,187




108,098


 

 

Cision View original content:https://www.prnewswire.com/news-releases/china-jo-jo-drugstores-reports-fiscal-year-2021-financial-results-301320819.html

SOURCE China Jo-Jo Drugstores, Inc.