CJJD, together with its subsidiaries, operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China.
The company operates through four segments: Retail Drugstores, OnIine Pharmacy, Wholesale Business, and Farming and Selling Herbs.
CJJD's stores provide various pharmaceutical products, including prescription and over-the-counter drugs, nutritional supplements, traditional Chinese medicines (TCM), personal and family care products, and medical devices, as well as convenience products, such as consumable, seasonal, and promotional items.
CJJD also operates licensed doctors of Western medicine and TCM onsite for consultation, examination, and treatment of common ailments at scheduled hours.
In addition, the company operates dada360.com, an onIine drugstore that retails OTC drugs and nutritional supplements.
Further, CJJD distributes third-party pharmaceutical products primarily to trading companies, as well as cultivates and wholesales herbs used for TCM.
As of March 31, 2015, CJJD had 59 retail pharmacies under the Jiuzhou Grand Pharmacy brand name in Hangzhou. China Jo-Jo Drugstores, Inc. is headquartered in Hangzhou, the People's Republic of China.
Second Quarter Fiscal Year 2016 Financial Results:
CJJD's revenues roughly totaled $22.6 million up 22.4%, consisting of segmental revenue:
- Revenue from Retail Drugstores roughly totaled $13.1 million, up 5.6% and represents 58.0% of total revenues as compared to 67.2% in the prior year;
- Revenue from OnIine Pharmacy roughly totaled $6.6 million, an increase of 122.4% and represents 29.1% of revenues as compared to 16.1% in the prior year;
- Revenues from the Wholesale Business roughly totaled $2.9 million, a decrease of 5.6% and represents 12.9% of revenues as compared to 16.7% in the prior year.
The company's gross profit of roughly $4.0 million an increase of 43.8% comparing to the prior year;
CJJD's gross margin of 17.6% for the second quarter of fiscal 2016 as compared to 15.0% in the prior year;
CJJD's net income of $0.15 million or $0.01 per fully diluted share, compared with net loss of ($0.04) million or ($0.00) per fully diluted share in the year ago period.
China Jo-Jo Drugstores Expects Q3 Fiscal 2016 OnIine Pharmacy Sales Growthover 100%; Official Branded OnIine Storefront Sales Over 500%:
On January 21, 2016, CJJD announced preliminary Q3 fiscal 2016 onIine pharmacy sales estimates, including its official branded onIine pharmacy through www.dada360.com.
CJJD's e-pharmacy growth as compared to the same year ago period continues to show strong growth, trending positively as expected with the prolific adoption of onIine shopping practices in China.
Preliminary Q3 Fiscal 2016 Sales Estimates:
Total onIine pharmacy sales grew over 100% to more than 54 million RMB (US$8.7 million)
Official branded onIine store sales grew over 500% to more than 26 million RMB (US$4.2 million)
Mr. Lei Liu, Chairman & CEO of CJJD commented, "We expect a strong close to fiscal 2016, boosted by a supportive regulatory framework created by the Chinese government in order to expand large chain pharmacies and promote internet plus economy in China, as well as the proliferation of drug benefit coverage in both the government sponsored Social Health Insurance (SHI) program and private insurance program. E-pharmacy sales within the Company's strategic businesses is positioning China Jo-Jo as one of the leading players and innovators in this fast growing industry. With renewed support from a favorable healthcare reform framework, we believe that China Jo-Jo will stand to benefit greatly from this wave of change and has quickly adjusted its growth strategy to capitalize on this opportunity."
"As one of the early pioneers of the large chain drugstore models in China, China Jo-Jo's logistics infrastructure and means for product procurement has taken root, developing into a mature platform supporting both China Jo-Jo's retail and onIine businesses. As such the Company is also transforming into a partner of choice for commercial health insurance providers who also continue to develop alongside China's nascent healthcare industry. Recently the Company relocated its onIine pharmacy division to central Hangzhou, a growing hub for internet companies in China as a means for attracting the best technologist to help in its ecommerce expansion efforts," concluded Mr. Liu.
Market Outlook:
Global retail pharmacy sales are expected to reach $1.4 trillion by 2017, according to Lucintel.
Growth drivers include the aging of the population and increased health awareness.
Many factors have supported the development of the industry in China, including substantial growth in domestic demand for drugs retailed by drugstores, relatively higher drug prices in hospitals and consumers' increased ability to self medicate.
Additionally, China's accession to the World Trade Organization in December 2001 and the subsequent entry of foreign investment have boosted industry growth.
The government's support for the development of chain drug retailing enterprises has also been a positive influence on the industry.
Technical Analysis:
CJJD hit a new 52-week low of $1.40 per share on January 21, 2016.
The company has since moved higher, closing Friday's session up +8.84% at $1.60 per share.
CJJD has a tiny float listed at just 1.16M.
To make matters even sweeter, CJJD is currently down 65.81% from its 52-week high of $4.68 per share.
A move back to CJJD's 52-week high price would represent gains of over +192.5%.
With rock solid support established at these levels, we feel confident that shares of CJJD will be trading over a $2.00 per share in the near future!
Although the company is listed on the NASDAQ stock exchange, CJJD can move just as fast as any penny stock we've covered.
With a float that tight, even the slightest burst in volume could send shares soaring!
If you enjoyed last week's +42% tiny float, NYSE-listed winner, then you are going to love the profitable action that CJJD shows us today.b
We ask that you act fast and get CJJD up on your trading screen right now!
