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 $30.84 million and
$7.01 million for the second fiscal
quarter of 2021, up 8.8% and 4.8% compared to same period of fiscal
year 2020. Revenue year-over-year from online pharmacy increased by
127.4%. We have always been deeply committed to our communities,
and we have taken necessary measures to protect the safety and
health of our customers and employees during the global COVID-19
pandemic while making solid progress on our transformation strategy
of 'Medical Linkage & Technology Empowerment'. The environment
surrounding COVID-19 is accelerating our transformation, giving us
new opportunities to demonstrate our capabilities and gain retail
market share in China. We are
building a strong foundation for sustainable growth and setting the
platform to engage with consumers, and we are remaining focused on
creating value for all our stakeholders."
Second Quarter of Fiscal 2021 Financial Highlights
|
|
For the Three
Months Ended September 30,
|
($ millions,
except per share data)
|
|
2020
|
|
2019
|
|
%
Change
|
Revenue
|
|
30.84
|
|
28.35
|
|
8.8%
|
Retail
drugstores
|
|
17.93
|
|
18.00
|
|
-0.4%
|
Online
pharmacy
|
|
5.35
|
|
2.35
|
|
127.4%
|
Wholesale
|
|
7.56
|
|
8.00
|
|
-5.5%
|
Gross
profit
|
|
7.01
|
|
6.69
|
|
4.8%
|
Gross
margin
|
|
22.7%
|
|
23.6%
|
|
-0.9 pp*
|
Loss from
operations
|
|
(1.52)
|
|
(1.62)
|
|
5.7%
|
Net loss
|
|
(1.53)
|
|
(1.35)
|
|
-13.4%
|
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 from 23.6% 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 $2.49 million, or 8.8%, to $30.84 million from $28.35
million for the same period of last year. The increase in
revenue was primarily due to the growth in online pharmacy
business.
|
|
For the Three
Months Ended September 30,
|
|
|
2020
|
|
2019
|
($
millions)
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
Retail
drugstores
|
|
17.93
|
|
12.33
|
|
31.3%
|
|
18.00
|
|
12.47
|
|
30.7%
|
Online
pharmacy
|
|
5.35
|
|
4.74
|
|
11.3%
|
|
2.35
|
|
2.03
|
|
13.6%
|
Wholesale
|
|
7.56
|
|
6.76
|
|
10.7%
|
|
8.00
|
|
7.16
|
|
10.6%
|
Total
|
|
30.84
|
|
23.83
|
|
22.7%
|
|
28.35
|
|
21.66
|
|
23.6%
|
Revenue from the retail drugstores business decreased slightly
by $0.07 million, or 0.4%, to
$17.93 million for the three months
ended September 30, 2020 from
$18.00 million for the same period of
last year. The slight decrease was primarily due to the Company's
strategical abandoning of the sales of certain low-profit margin
products reimbursed by National Healthcare Security Administration
("NHSA" hereafter) due to its overall budget, elimination of a
variety of drugs off the list of drugs reimbursed by the local NHSA
since September 1, 2020, and the
negative effect on the overall economy from COVID-19.
Revenue from the online pharmacy business increased by
$3.00 million, or 127.4%, to
$5.35 million for the three months
ended September 30, 2020 from
$2.35 million for the same period of
last year. The increase was primarily caused by an increase in
sales of prescription drugs via e-commerce platforms such as Tmall.
Prescription drugs used to be prohibited from sales online due to
safety concern. However, because the nation has lifted the ban
order, online prescription drug sales become popular. As a result,
the sale of prescription drugs was $1.76
million in the three months ended September 30, 2020 as compared to none in the
three month ended September 30, 2019.
Additionally, the Company maintained a membership care program
targeted at customers with chronic disease. The Company has closely
interacted with its members via WeChat by providing healthcare
knowledge and reminding them to refill medicine. By implementing a
personalized customer care program, the Company was able to promote
its sales.
Revenue from the wholesale business decreased by $0.44 million, or 5.5%, to $7.56 million for the three months ended
September 30, 2020 from $8.00 million for the same period of last year.
The decrease was primarily due to the fact that a key salesperson
was sick, which slowed certain business with customers.
Gross profit and gross margin
Total cost of goods sold increased by $2.17 million, or 10.0%, to $23.83 million for the three months ended
September 30, 2020 from $21.66 million for the same period of last year.
Gross profit increased by $0.32
million, or 4.8%, to $7.01
million for three months ended September 30, 2020 from $6.69 million for the same period of last
year. Overall gross margin decreased slightly by 0.9
percentage points to 22.7% for the three months ended September 30, 2020, from 23.6% for the same
period of last year.
Gross margins for retail drugstores, online pharmacy and
wholesale were 31.3%, 11.3%, and 10.7%, respectively, for the three
months ended September 30, 2020,
compared to gross margins for retail drugstores, online pharmacy
and wholesale of 30.7%, 13.6%, and 10.6%, respectively, for the
same period of last year.
Loss from operations
Selling and marketing expenses decreased by $0.01 million, or 0.2%, to $6.48 million for the three months ended
September 30, 2020 from $6.49 million for the same period of last year.
The decrease in selling and marketing expenses was primarily due to
the control of in-store advertising expense, offset by the increase
in fee charged by various platforms as a result of sale increase in
the Company's online pharmacy.
General and administrative expenses increased by $0.24 million, or 13.0%, to $2.06 million for the three months ended
September 30, 2020 from $1.82 million for the same period of last year.
In the three months ended September 30,
2020, the Company reversed bad debt allowance of
$304,397 as compared to an increase
in bad debt allowance of $9,018 in
the same period of last year. Excluding such effect, the general
and administrative expenses increased by $551,039 period over period, which reflects the
increase in staff and administration expense.
Loss from operations was $1.52
million for the three months ended September 30, 2020, compared to $1.62 million for the same period of last year.
Operating margin was (4.9)% and (5.7)% for the three months ended
September 30, 2020 and 2019
respectively.
Net loss
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 $0.04 per basic
and diluted share for the same period of last year.
Six Months Ended September 30,
2020 Financial Highlights
|
|
For the Six Months
Ended September 30,
|
($ millions,
except per share data)
|
|
2020
|
|
2019
|
|
%
Change
|
Revenue
|
|
61.90
|
|
53.63
|
|
15.4%
|
Retail
drugstores
|
|
36.74
|
|
34.74
|
|
5.8%
|
Online
pharmacy
|
|
10.26
|
|
4.79
|
|
114.0%
|
Wholesale
|
|
14.90
|
|
14.10
|
|
5.6%
|
Gross
profit
|
|
14.99
|
|
12.75
|
|
17.5%
|
Gross
margin
|
|
24.2%
|
|
23.8%
|
|
0.4 pp*
|
Loss from
operations
|
|
(1.94)
|
|
(4.38)
|
|
55.7%
|
Net loss
|
|
(1.92)
|
|
(3.73)
|
|
48.6%
|
Loss per
share
|
|
(0.05)
|
|
(0.10)
|
|
50.0%
|
|
*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 from 23.8% 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 $8.26 million, or 15.4%, to $61.90 million from $53.63
million for the same period of last year. The increase in
revenue was primarily due to the increase in retail drugstores,
online pharmacy and wholesale business.
|
|
For the Six Months
Ended September 30,
|
|
|
2020
|
|
2019
|
($
millions)
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
Retail
drugstores
|
|
36.74
|
|
24.73
|
|
32.7%
|
|
34.74
|
|
24.15
|
|
30.5%
|
Online
pharmacy
|
|
10.26
|
|
8.97
|
|
12.5%
|
|
4.79
|
|
4.13
|
|
13.9%
|
Wholesale
|
|
14.90
|
|
13.20
|
|
11.4%
|
|
14.10
|
|
12.60
|
|
10.7%
|
Total
|
|
61.90
|
|
46.90
|
|
24.2%
|
|
53.63
|
|
40.88
|
|
23.8%
|
Revenue from the retail drugstores business increased by
$2.00 million, or 5.8%, to
$36.74 million for the six months
ended September 30, 2020 from
$34.74 million for the same period of
last year. The increase was primarily attributable to
consumer-facing benefits such as emphasis on onsite medical care,
chronic disease management services, incremental Direct-to-Patient
("DTP") business caused by continuous hospital medical reform,
partially offset by the decline in sale reimbursed by NHSA in the
second quarter of fiscal 2021, and maturing of stores opened a year
ago.
Revenue from the online pharmacy business increased by
$5.47 million, or 114.0%, to
$10.26 million for the six months
ended September 30, 2020 from
$4.79 million for the same period of
last year. The increase was primarily caused by an increase in
sales of prescription drugs via e-commerce platforms such as Tmall.
Due to the same reason discussed above, the sale of prescription
drugs was $3.63 million in the six
months ended September 30, 2020 as
compared to none in the six month ended September 30, 2019. Additionally, the Company
maintained a membership care program targeted at customers with
chronic disease. The Company has closely interacted with its
members via WeChat by providing healthcare knowledge and reminding
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 $0.80 million, or 5.6%, to $14.90 million for the six months ended
September 30, 2020 from $14.10 million for the same period of last year.
The increase was primarily a result of the Company's ability to
resell certain products, which the Company sold in large quantities
at its retail stores, to other vendors at competitive prices.
Gross profit and gross margin
Total cost of goods sold increased by $6.02 million, or 14.7%, to $46.90 million for the six months ended
September 30, 2020 from $40.88 million for the same period of last year.
Gross profit increased by $2.24
million, or 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. Overall gross margin increased by 0.4 percentage points
to 24.2% for the six months ended September
30, 2020, from 23.8% for the same period of last year.
Gross margins for retail drugstores, online pharmacy and
wholesale were 32.7%, 12.5%, and 11.4%, respectively, for the six
months ended September 30, 2020. This
compared to gross margins for retail drugstores, online pharmacy
and wholesale of 30.5%, 13.9%, and 10.7%, respectively, for the
same period of last year.
Loss from operations
Selling and marketing expenses increased by $0.30 million, or 2.4%, to $12.75 million for the six months ended
September 30, 2020 from $12.45 million for the same period of last year.
The increase in selling and marketing expenses was primarily due to
increase in fee charged by various platforms as a result of sale
increase in the Company's online pharmacy.
General and administrative expenses decreased by $0.50 million, or 10.6%, to $4.18 million for the six months ended
September 30, 2020 from $4.68 million for the same period of last year.
In the six months ended September 30,
2020, the Company reversed bad debt allowance of
$286,076 as compared to an increase
in bad debt allowance of $767,249 in
the same period of last year. Excluding such an effect, the general
and administrative expenses increased by $559,503 period over period, which reflects the
increases in staff and administration expense as the Company's
online business grew.
Loss from operations was $1.94
million for the six months ended September 30, 2020, compared to $4.38 million for the same period of last year.
Operating margin was (3.1)% and (8.2)% for the six months ended
September 30, 2020 and 2019
respectively .
Net loss
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.
Financial Condition
As of September 30, 2020, the
Company had cash of $21.65 million,
compared to $16.18 million as of
March 31, 2020. Net cash used in
operating activities was $0.35
million for the six months ended September 30, 2020, compared to net cash provided
by operating activities of $0.97
million for the same period of last year. Net cash used in
investing activities was $1.76
million for the six months ended September 30, 2020, compared to $1.45 million for the same period of last year.
Net cash provided by financing activities was $4.55 million for
the six months ended September 30,
2020, compared to $6.38
million for the same period of last 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
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; $0.001
par value; 250,000,000 shares authorized; 37,961,790 and
32,936,786 shares issued and outstanding
as of September 30, 2020 and March
31, 2020, respectively
|
|
|
37,962
|
|
|
|
32,937
|
|
Preferred stock;
$0.001 par value; 10,000,000 shares authorized; nil issued and
outstanding as of September 30 and
March 31, 2020, respectively
|
|
|
-
|
|
|
|
-
|
|
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
September 30,
|
|
|
For the six months
ended
September 30,
|
|
|
|
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
LIABILITIES
|
|
|
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
NONCONTROLLING INTEREST
|
|
|
(33,472)
|
|
|
|
(122,004)
|
|
|
|
(190,555)
|
|
|
|
(365,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO CHINA JO-JO
DRUGSTORES, INC.
|
|
|
(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
September 30,
|
|
|
|
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
|
|
View original
content:http://www.prnewswire.com/news-releases/china-jo-jo-drugstores-reports-second-quarter-2021-financial-results-301172701.html
SOURCE China Jo-Jo Drugstores,
Inc.