-- FY 2017 Retail Pharmacy Sales
increased by 1.1%; Gross Margin Increased From 19.7% to
20.4%; 9 New Pharmacies Added in 2017 (net)
HANGZHOU, China, June 29, 2017 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD)
(the "Company" or "China Jo-Jo"), a
leading China-based pharmacy providing retail, wholesale and online
distribution and sales of pharmaceutical and health care products
through its own online and retail pharmacies, today announced
financial results for the fourth quarter and fiscal year ended
March 31, 2017.
FY 2017 Fourth Quarter Highlights:
- Revenue for the fourth quarter ended March 31, 2017 was $19,792,271, as compared to $20,468,616 for the same period of last
year.
- Gross profit was $3,608,236, as
compared to $4,311,559 for the same
period of last year.
- Net income was ($5,038,420), as
compared to $802,899 for the same
period of last year.
- Earnings per share ("EPS") was approximately ($0.25), as compared to EPS of $0.05 for the same period of last year.
Fiscal Year 2017 Highlights:
- Total revenue for the year ended March
31, 2017 decreased by $7,566,535, or by 8.5% as compared to the
previous fiscal year.
- Retail drugstores sales increased by $582,742, or by 1.1% as compared to the previous
fiscal year.
- Online pharmacy sales decreased by $11,060,985, or by 41.8% as compared to the
previous fiscal year.
- Wholesale revenue increased by $2,911,708, or by 25.5% as compared to the
previous fiscal year.
- Gross profit decreased by $884,664, or by 5.1% year over year, while gross
margin increased from 19.7% for FY 2016 to 20.4% for FY 2017.
- Net loss was $5,644,204 and loss
per share was $0.28 per share, as
compared to net income of $447,156
and EPS of $0.03 for the previous
fiscal year.
- The Company ended the year with cash and restricted cash
balances of $27,795,810, $67.2 million in total assets, and $40.5 million in total liabilities
Reconciliation to Non-GAAP Financial Measures
|
For The Years Ended March 31
|
|
2017
|
2016
|
Net income
|
(5,644,204)
|
447,156
|
Share-based
compensation expenses
|
2,248,598
|
1,022,790
|
Change in fair value
of derivative liabilities
|
(140,032)
|
(612,198)
|
Adjusted net
income
|
(3,535,638)
|
857,748
|
Adjusted net income
per share - diluted
|
(0.17)
|
0.05
|
Revenue decreased by $7,566,535 to
$81,499,045 for the year ended
March 31, 2017, or by 8.5% as
compared to the year ended March 31,
2016, primarily due to a decline in our online pharmacy
business, which was partially offset by increases in our retail
drugstore and wholesale businesses. Retail drugstore sales, which
accounted for approximately 63.5% of our total revenue for the year
ended March 31, 2017, increased by
$582,742 to $51,788,386, or by 1.1% as compared to the year
ended March 31, 2016. Same-store
sales decreased by approximately $2,648,725, or 5.5%, while new stores contributed
approximately $2,200,622 in revenue
during the year ended March 31, 2017.
Excluding the RMB depreciation effect, the same store sales
actually increased by approximately 0.6% period over period.
Online pharmacy sales decreased by approximately $11,060,985 for the year ended March 31, 2017, or by 41.8% as compared to the
year ended March 31, 2016. This
decrease was primarily the result of a decline in business referred
from Yikatong and a decline in sales made via various e-commerce
platforms during the year ended March 31,
2017.
Wholesale revenue increased by $2,911,708, or 25.5%, primarily through the
resale of certain products for which our retail stores had prepared
large orders to other vendors. Because our retail drugstores
achieved large sales quantities for certain brand name merchandise,
we were able to negotiate lower than market purchase prices for
those items, and as a result, certain vendors who were unable to
obtain a better price than ours will purchase those items from us,
resulting in growth in our wholesale sales volumes.
Gross profit decreased by $884,664, or 5.1% period over period, primarily
as a result of a decrease in gross profit from online sales, which
decreased significantly in the year ended March 31, 2017. At the same time, gross margin
increased from 19.7% to 20.4% due to higher retail and wholesale
profit margins.
Net loss was $5,644,204, or
$0.28 per diluted share, for the year
ended March 31, 2017, as compared to
net income of $447,156 ,or
$0.03 per diluted share, for the year
ended March 31, 2016.
The Chairman and CEO of China
Jo-Jo Drugstores, Mr. Liu
Lei, commented, "Despite a decline in our online pharmacy
sales, we managed to not only have
increased revenue in our other
business segments - retail drugstore sales and wholesale sales -
but also have increased our overall
gross margin. Through increasing medical service prices at public
hospitals and demanding a lower percentage of revenue from drug
sales at hospital, China medical reform continues to push drug
sales from public hospitals to other retail outlets such as retail
pharmacies. As public hospitals in China dominate the retail sale of prescription
drugs that was estimated to have annual gross sales volume over US
$150 billion (one trillion RMB) in 2016, we anticipate that drugstores will continue to
benefit from the reform. Additionally, we are implementing
strategies to increase our online pharmacy sales, including
increasing online drug and health products sales referred by large
commercial health insurance providers."
"I am pleased to report that we now have a record number of
retail pharmacies, which stood at 67 as of March 31, 2017. Our growth strategy includes
opening and acquiring additional retail stores (chain) in fiscal
year 2018 and employing tactics to grow our online pharmacy sales
to help us continue to expand our market share and remain a leading
player in the physical retail and e-commerce pharmacy businesses in
China," Mr. Liu concluded.
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
March
31,
|
|
|
March
31,
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
18,364,424
|
|
|
$
|
6,671,873
|
|
Restricted
cash
|
|
|
9,431,386
|
|
|
|
13,747,990
|
|
Financial assets available for sale
|
|
|
87,068
|
|
|
|
465,165
|
|
Notes
receivable
|
|
|
253,394
|
|
|
|
15,506
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $1,415,505
and
$2,099,244, as of March 31, 2017 and 2016
respectively
|
|
|
8,561,596
|
|
|
|
8,054,597
|
|
Inventories
|
|
|
9,923,101
|
|
|
|
10,802,691
|
|
Other receivables,
net of allowance for doubtful accounts of $26,854 and $28,405,
as
of March 31, 2017 and 2016,
respectively
|
|
|
2,269,193
|
|
|
|
1,376,468
|
|
Advances to
suppliers, net of allowance for doubtful accounts of $1,502,255
and
$105,542, as of March 31, 2017 and 2016,
respectively
|
|
|
5,504,141
|
|
|
|
4,230,665
|
|
Other current
assets
|
|
|
1,566,155
|
|
|
|
1,518,048
|
|
Total current
assets
|
|
|
55,960,458
|
|
|
|
46,883,003
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, net
|
|
|
4,263,157
|
|
|
|
5,543,076
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Long-term
investment
|
|
|
46,152
|
|
|
|
108,539
|
|
Farmland
assets
|
|
|
718,787
|
|
|
|
1,562,205
|
|
Long term
deposits
|
|
|
2,294,848
|
|
|
|
2,452,056
|
|
Other noncurrent
assets
|
|
|
1,177,005
|
|
|
|
2,595,129
|
|
Intangible assets,
net
|
|
|
2,712,611
|
|
|
|
2,928,779
|
|
Total other
assets
|
|
|
6,949,403
|
|
|
|
9,646,708
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
67,173,018
|
|
|
$
|
62,072,787
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCK
HOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Short-term loan
payable
|
|
$
|
-
|
|
|
$
|
31,011
|
|
Accounts payable,
trade
|
|
|
19,441,195
|
|
|
|
16,667,396
|
|
Notes
payable
|
|
|
12,691,575
|
|
|
|
17,595,634
|
|
Other
payables
|
|
|
2,916,283
|
|
|
|
1,917,821
|
|
Other payables -
related parties
|
|
|
927,052
|
|
|
|
2,199,775
|
|
Customer
deposits
|
|
|
2,675,030
|
|
|
|
2,610,151
|
|
Taxes
payable
|
|
|
681,939
|
|
|
|
483,770
|
|
Accrued
liabilities
|
|
|
679,350
|
|
|
|
615,056
|
|
Total current
liabilities
|
|
|
40,012,424
|
|
|
|
42,120,614
|
|
|
|
|
|
|
|
|
|
|
Purchase option and
warrants liability
|
|
|
496,217
|
|
|
|
636,301
|
|
Total
liabilities
|
|
|
40,508,641
|
|
|
|
42,756,915
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common stock; $0.001
par value; 250,000,000 shares authorized; 25,214,678 and
17,735,504 shares issued and outstanding as of
March 31, 2017 and March 31,
2016
|
|
|
25,215
|
|
|
|
17,736
|
|
Preferred stock;
$0.001 par value; 10,000,000 shares authorized; nil issued
and
outstanding as of March 31, 2017 and March
31,2016
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
36,581,248
|
|
|
|
22,088,267
|
|
Statutory
reserves
|
|
|
1,309,109
|
|
|
|
1,309,109
|
|
Accumulated
deficit
|
|
|
(12,601,257)
|
|
|
|
(6,957,053)
|
|
Accumulated other
comprehensive income
|
|
|
1,350,062
|
|
|
|
2,857,813
|
|
Total stockholders'
equity
|
|
|
26,664,377
|
|
|
|
19,315,872
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
67,173,018
|
|
|
$
|
62,072,787
|
|
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
|
|
For the years
ended
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
REVENUES,
NET
|
|
$
|
81,499,045
|
|
|
$
|
89,065,580
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
64,872,127
|
|
|
|
71,553,998
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
16,626,918
|
|
|
|
17,511,582
|
|
|
|
|
|
|
|
|
|
|
SELLING
EXPENSES
|
|
|
12,923,192
|
|
|
|
12,360,872
|
|
GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
|
7,684,862
|
|
|
|
5,175,476
|
|
TOTAL OPERATING
EXPENSES
|
|
|
20,608,054
|
|
|
|
17,536,348
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
|
(3,981,136)
|
|
|
|
(24,766)
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
379,790
|
|
|
|
299,511
|
|
INTEREST
EXPENSE
|
|
|
(1,349)
|
|
|
|
(155,578)
|
|
OTHER INCOME
(EXPENSE), NET
|
|
|
19,888
|
|
|
|
(187,468)
|
|
IMPAIRMENT OF
LONG-LIVED ASSETS
|
|
|
(2,117,042)
|
|
|
|
-
|
|
CHANGE IN FAIR VALUE
OF PURCHASE OPTION AND WARRANTS
LIABILITY
|
|
|
140,032
|
|
|
|
612,198
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
INCOME TAXES
|
|
|
(5,559,817)
|
|
|
|
543,897
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
84,387
|
|
|
|
96,741
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
|
(5,644,204)
|
|
|
|
447,156
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(1,507,751)
|
|
|
|
(1,114,730)
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(7,151,955)
|
|
|
|
(667,574)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
20,396,217
|
|
|
|
16,096,406
|
|
Diluted
|
|
|
20,396,217
|
|
|
|
16,147,505
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
SHARES:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.28)
|
|
|
$
|
0.03
|
|
Diluted
|
|
$
|
(0.28)
|
|
|
$
|
0.03
|
|
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
|
|
|
Retained
Earnings
|
|
|
other
|
|
|
Non-
|
|
|
|
|
|
|
Number
of
|
|
|
|
|
|
Paid-in
|
|
|
Statutory
|
|
|
|
|
|
comprehensive
|
|
|
controlling
|
|
|
|
|
|
|
shares
|
|
|
Amount
|
|
|
capital
|
|
|
reserves
|
|
|
Unrestricted
|
|
|
income/(loss)
|
|
|
interest
|
|
|
Total
|
|
BALANCE, March 31,
2015
|
|
|
15,650,504
|
|
|
$
|
15,651
|
|
|
|
19,301,233
|
|
|
|
1,309,109
|
|
|
|
(7,404,210)
|
|
|
|
3,972,543
|
|
|
|
39,064
|
|
|
$
|
17,233,390
|
|
Stock based
compensation
|
|
|
885,000
|
|
|
|
885
|
|
|
|
1,021,906
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,022,791
|
|
Net income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
447,157
|
|
|
|
-
|
|
|
|
-
|
|
|
|
447,157
|
|
Registered direct
offering financing
|
|
|
1,200,000
|
|
|
|
1,200
|
|
|
|
1,765,128
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,766,328
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,114,730)
|
|
|
|
(39,064)
|
|
|
|
(1,153,794)
|
|
BALANCE,
March 31, 2016.
|
|
|
17,735,504
|
|
|
$
|
17,736
|
|
|
|
22,088,267
|
|
|
|
1,309,109
|
|
|
|
(6,957,053)
|
|
|
|
2,857,813
|
|
|
|
-
|
|
|
$
|
19,315,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
|
1,690,174
|
|
|
|
1,690
|
|
|
|
2,246,960
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,248,650
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,644,204)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,644,204)
|
|
Private direct
offering financing
|
|
|
4,840,000
|
|
|
|
4,840
|
|
|
|
10,643,160
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,648,000
|
|
Issuance of common
stocks
in exchange of debts
|
|
|
949,000
|
|
|
|
949
|
|
|
|
1,602,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,603,810
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,507,751)
|
|
|
|
|
|
|
|
(1,507,751)
|
|
BALANCE,
March 31, 2017.
|
|
|
25,214,678
|
|
|
$
|
25,215
|
|
|
|
36,581,248
|
|
|
|
1,309,109
|
|
|
|
(12,601,257)
|
|
|
|
1,350,062
|
|
|
|
-
|
|
|
$
|
26,664,377
|
|
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
For the years
ended
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
$
|
(5,644,204)
|
|
|
$
|
447,156
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Bad debt
direct write-off and provision
|
|
|
679,271
|
|
|
|
(1,584,031)
|
|
Depreciation and amortization
|
|
|
1,316,747
|
|
|
|
1,456,029
|
|
Impairment of prepayment of lease use right
|
|
|
1,246,788
|
|
|
|
-
|
|
Farmland
assets impairment
|
|
|
761,403
|
|
|
|
|
|
Impairment of land and road improvement
|
|
|
108,851
|
|
|
|
|
|
Stock
based compensation
|
|
|
2,248,650
|
|
|
|
1,022,791
|
|
Change
in fair value of purchase option derivative liability
|
|
|
(140,084)
|
|
|
|
(612,198)
|
|
Change
in operating assets:
|
|
|
|
|
|
|
|
|
Accounts
receivable, trade
|
|
|
(717,386)
|
|
|
|
432,677
|
|
Notes
receivable
|
|
|
(244,713)
|
|
|
|
118,687)
|
|
Inventories and biological assets
|
|
|
191,564
|
|
|
|
(762,212)
|
|
Other
receivables
|
|
|
(773,359)
|
|
|
|
(67,778)
|
|
Advances
to suppliers
|
|
|
(3,020,156)
|
|
|
|
1,329,323
|
|
Other
current assets
|
|
|
(148,983)
|
|
|
|
581,847
|
|
Other
noncurrent assets
|
|
|
35,509
|
|
|
|
-
|
|
Change
in operating liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable, trade
|
|
|
3,936,178
|
|
|
|
1,595,739
|
|
Other
payables and accrued liabilities
|
|
|
1,250,755
|
|
|
|
(598,213)
|
|
Customer
deposits
|
|
|
237,891
|
|
|
|
(976,138)
|
|
Taxes
payable
|
|
|
234,780
|
|
|
|
202,026
|
|
Net cash
provided by operating activities
|
|
|
1,559,502
|
|
|
|
2,585,705
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Disposal
of
financial assets available for sale
|
|
|
445,968
|
|
|
|
790,845
|
|
Purchase
of
financial assets available for sale
|
|
|
(89,194)
|
|
|
|
-
|
|
Acquisition of equipment
|
|
|
(140,209)
|
|
|
|
(192,937)
|
|
Termination of a joint venture
|
|
|
104,059
|
|
|
|
-
|
|
Investment in a joint venture
|
|
|
(96,180)
|
|
|
|
(110,718)
|
|
Additions to leasehold improvements
|
|
|
(270,990)
|
|
|
|
(57,382)
|
|
Net cash
provided by (used in) investing activities
|
|
|
(46,546)
|
|
|
|
429,808
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds
from short-term bank loan
|
|
|
-
|
|
|
|
23,258
|
|
Repayment of short-term bank loan
|
|
|
(29,731)
|
|
|
|
(23,258)
|
|
Change
in restricted cash
|
|
|
3,519,030
|
|
|
|
(5,319,861)
|
|
Proceeds
from notes payable
|
|
|
24,577,096
|
|
|
|
21,657,140
|
|
Repayment of notes payable
|
|
|
(28,445,215)
|
|
|
|
(18,956,792)
|
|
Changes
in other payables-related parties
|
|
|
375,659
|
|
|
|
(481,879)
|
|
Proceeds
from sale of stock and warrants
|
|
|
10,648,000
|
|
|
|
2,699,500
|
|
Net cash
provided by (used in) financing activities
|
|
|
10,644,839
|
|
|
|
(401,892)
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE ON CASH
|
|
|
(465,244)
|
|
|
|
34,671
|
|
|
|
|
|
|
|
|
|
|
INCREASE IN
CASH
|
|
|
11,692,551
|
|
|
|
2,648,292
|
|
|
|
|
|
|
|
|
|
|
CASH, beginning of
year
|
|
|
6,671,873
|
|
|
|
4,023,581
|
|
|
|
|
|
|
|
|
|
|
CASH, end of
year
|
|
$
|
18,364,424
|
|
|
$
|
6,671,873
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
|
$
|
1,349
|
|
|
$
|
155,578
|
|
Cash
paid for income taxes
|
|
$
|
57,247
|
|
|
$
|
78,550
|
|
Issuance
of common stocks in exchange of debts
|
|
$
|
1,603,810
|
|
|
$
|
-
|
|
Non-cash
financing activities:
|
|
|
|
|
|
|
|
|
Issuance
of stock purchase options to an investment bank
|
|
|
|
|
|
|
147,728
|
|
Use of non-GAAP financial measures
To supplement China Jo-Jo's
consolidated financial results presented in accordance with GAAP,
China Jo-Jo uses the following
measures defined as non-GAAP financial measures by the SEC: net
income (loss) excluding share-based compensation expenses and
change in fair value of derivative liabilities, and diluted net
income (loss) per share excluding share-based compensation expenses
and change in the fair value of derivatives liabilities. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
China Jo-Jo believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding its performance and liquidity by excluding
share-based compensation expenses and change in fair value of
derivative liabilities that may not be indicative of its operating
performance from a cash perspective. China
Jo-Jo believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
its performance and when planning and forecasting future periods.
These non-GAAP financial measures also facilitate management's
internal comparisons to China
Jo-Jo's historical performance and liquidity. China Jo-Jo computes its non-GAAP financial
measures using the same consistent method from quarter to quarter.
China Jo-Jo believes these non-GAAP
financial measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision-making. A
limitation of using these non-GAAP measures is that they exclude
share-based compensation and change in fair value of derivative
liabilities charge that has been and will continue to be for the
foreseeable future a significant recurring expense in our business.
Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP
measure. The table under the heading Reconciliation to non-GAAP
Financial Measures in the beginning of the release has more details
on the reconciliations between GAAP financial measures that are
most directly comparable to non-GAAP financial measures.
About China Jo-Jo Drugstores,
Inc.
China Jo-Jo Drugstores, Inc., is
a leading China-based pharmacy that engages in retail, wholesale
and online distribution and sales of pharmaceutical and health care
products, including through its online and retail pharmacies. As of
March 31, 2017, the Company had 67
retail pharmacies in Zhejiang
Province. The Company's wholesale subsidiary supplies its
retail stores and distributes drug and healthcare products to other
drugstores and drug vendors. For more information, please visit:
www.jiuzhou-drugstore.com (Chinese) and www.chinajojodrugstores.com
(English). The Company routinely provides important information on
its website.
Forward Looking Statement
Statements in this press release regarding the Company that are
not historical facts are forward-looking statements and are subject
to risks and uncertainties that could cause actual future events or
results to differ materially from such statements. Any such
forward-looking statements, including, but not limited to,
financial guidance, are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. These
statements can be identified by the use of forward-looking
terminology such as "believe," "expect," "estimate," "may," "will,"
"should," "project," "plan," "seek," "intend," "anticipate," the
negatives thereof, or comparable terminology. Such statements
typically involve risks and uncertainties and may include financial
projections or information regarding the progress of new product
development. It is routine for the Company's internal projections
and expectations to change as the quarter and year progresses, and
therefore it should be clearly understood that the internal
projections and beliefs upon which the Company bases its
expectations may change. Although these expectations may change,
the Company is under no obligation to inform you if they do. Actual
results could differ materially from the expectations reflected in
such forward-looking statements as a result of numerous factors,
including the risks associated with the effect of changing economic
conditions in the People's Republic of
China, variations in cash flow, reliance on collaborative
retail partners and on new product development, variations in new
product development, risks associated with rapid technological
change, and the potential of introduced or undetected flaws and
defects in products. Readers are referred to the reports and
documents filed from time to time by the Company with the
Securities and Exchange Commission for a discussion of these and
other important risk factors that could cause actual results to
differ from those discussed in forward-looking statements. Other
than as required under the securities laws, the Company does not
assume a duty to update these forward-looking statements.
Investor Relations Contact:
Steve Liu
steve.liu@jojodrugstores.com
Frank Zhao
86-571-88077108
frank.zhao@jojodrugstores.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-jo-jo-drugstores-announces-fourth-quarter-and-year-end-financial-results-for-fiscal-year-2017-300481841.html
SOURCE China Jo-Jo Drugstores,
Inc.