HANGZHOU, China, April 22, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD)
("Jo-Jo Drugstores," "We" or the "Company"), a leading online and
offline retailer and wholesale distributor of pharmaceutical and
other healthcare products and a healthcare provider in China, today announced an update to its
strategic transformation plan previously announced. The Company
expects to become a new benchmark for the smart drug diagnosis
industry and a prominent brand in the pharmaceutical industry in
China.
Dear Shareholders,
In recent years, the trends in the retail pharmacy business have
included a continuously adjusting regulatory environment, falling
drug prices, and compressed profit margins. On the basis of an
in-depth analysis of the challenges and opportunities in the
development of the industry, the Company has returned to the
service essence of the pharmaceutical industry after 16 years of
accumulated expertise and innovation, as it integrates scientific
and technological innovation to become the new benchmark for the
emerging smart drug diagnosis model in China.
In 2019, the Company took another leap in the development of its
smart drug diagnosis model. The core of the smart drug diagnosis
model is a chronic disease management platform and a member
management platform. In April, the Jo-Jo Internet Hospital
officially began trial operation, including the implementation of
video consultations for the Company's customers. Currently, during
the trial period, the Company conducts prescription consultations
at a rate of over 300 per day and expects to process over 1,000
consultations per day after full implementation. Future features
are expected to improve strength in specializations including
gynecology, ophthalmology, pediatrics and traditional Chinese
medicine. The Company expects to introduce well-known domestic
experts to form a video consultation system for chain retail
pharmacies. Currently, the Company has provided consultation
services to nearly 6 million customers and views this as an
opportunity to expand its brand. Furthermore, the Jo-Jo online
pharmacy has registered with the Zhejiang Appointment Registration
Platform to provide medicines and medical services for patients
with health needs on the platform.
The Company plans to cooperate with three leading hospitals in Hangzhou, Zhejiang
Province this year to bring more prescriptions to Jo-Jo
Drugstores online and offline. For long-term prescriptions for
chronic diseases, the Company intends to explore the opportunity
with the local government in providing health management service to
one million individuals who have chronic diseases. This is also
expected to quickly increase the Company's operating income if
we succeed in the cooperation. We intend to continue to expand this
business line in both geographic
area and sales volume in the next
few years.
We have also begun to implement our strategy of "Medical
Linkage & Technology Empowerment", opening a new door for the
Company to achieve the goal of providing quality medical services
to commercial insurance customers from state-owned enterprises
Currently, the Company has services in Beijing, Shanghai, Hangzhou and elsewhere, providing various
health management services for commercial insurance customers from
state-owned enterprises. By following the mission statement
"focusing on quality medical services, making people in the world
healthier" and implementing the smart drug diagnosis model, the
Company offers an attractive opportunity for these state-owned
enterprises. The traffic generated by this insurance customer group
is expected to contribute considerable new sales if we are
able to successfully provide suitable healthcare products and
services to the commercial insurance customers.
With the development of Internet technology, the retail model
has entered into a new innovation cycle. The integration of the
online and offline retail experience has greatly improved the
efficiency of the traditional retail experience and has had a
transforming effect on the
industry. This "new retail" model forms the basis of the Company's
strategic transformation. Through our professional pharmacist
customer service team, alongside our Internet hospital, chronic
disease management platform and member management platform, we
provide professional, personalized service to tens of millions of
customers through artificial intelligence and personal service. The
core of good medical services is inseparable from professional
service and experience, which ensures that offline services remain
an indispensable part of the retail pharmaceutical model.
Jo-Jo Online has a medical
institution and professional medical team, and has also established
a system for grading diagnosis and referral. The Company will
continue to optimize its product structure and service system to
form a competitive "new retail" model for the retail pharmacy
industry. This model will connect online and offline, connect
doctors and medicines, connect the social security insurer,
commercial insurer and consumers, and form an efficient, closed
service loop. We believe the improvements brought by the
integrations of concepts from the "new retail" model will improve
our customers' stickiness and repurchase rate.
Mr. Lei Liu
Chairman and Chief Executive Officer
China Jo-Jo Drugstores, Inc.
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 in China. Jo-Jo Drugstores currently operates
retail drugstores and an online pharmacy. It is also a wholesale
distributor of products similar to those carried in its pharmacies
and it cultivates and sells herbs used for traditional Chinese
medicine. 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
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SOURCE China Jo-Jo Drugstores,
Inc.