HANGZHOU, China, Feb. 14, 2020 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD)
("Jo-Jo Drugstores" or the "Company"), a leading online and offline
retailer and wholesale distributor of pharmaceutical and other
healthcare products and a provider of healthcare services in
China, today announced its
financial results for the third fiscal quarter ended December 31, 2019.
Mr. Lei Liu, Chairman and CEO of Jo-Jo Drugstores, commented,
"We delivered outstanding financial results for the third quarter
of 2020, with revenue recording $33.36
million, up 7.9% compared to the same period of last year.
Benefiting from the growth in retail drugstores and online pharmacy
businesses as well as our strong competitive position in the
industry, all of our core businesses performed in line with our
expectation. Looking forward, amidst the outbreak of 2019 Novel
Coronavirus, we are striving to optimize our inventory and
operational execution with effective distribution channels to meet
the strong domestic demand of pharmaceutical and other healthcare
products as well as healthcare services. We are confident that our
professional team is able to deliver compelling value to our
customers and the communities we serve. We will continue to focus
on successful execution of our long-term growth strategies to
unleash the full potential of our consumer-centric healthcare
business model and create value for all shareholders."
Third Quarter of Fiscal 2020 Financial Highlights
|
|
For the Three
Months Ended December 31,
|
($ millions,
except per share data)
|
|
2019
|
|
2018
|
|
%
Change
|
Revenue
|
|
33.36
|
|
30.92
|
|
7.9%
|
Retail
drugstores
|
|
21.58
|
|
20.87
|
|
3.4%
|
Online
pharmacy
|
|
3.96
|
|
2.49
|
|
59.0%
|
Wholesale
|
|
7.82
|
|
7.56
|
|
3.5%
|
Gross
profit
|
|
7.28
|
|
7.14
|
|
2.1%
|
Gross
margin
|
|
21.8%
|
|
23.1%
|
|
-1.3 pp*
|
Income (Loss) from
operations
|
|
0.55
|
|
(2.13)
|
|
NM
|
Net income
(loss)
|
|
0.46
|
|
(2.21)
|
|
NM
|
Earnings (loss) per
share
|
|
0.02
|
|
(0.06)
|
|
NM
|
*Notes: pp represents percentage points
- Revenue increased by 7.9% to $33.36
million for the three months ended December 31, 2019 from $30.92 million for the same period of last
year.
- Gross profit increased by 2.1% to $7.28
million for the three months ended December 31, 2019 from $7.14 million for the same period of last
year.
- Gross margin decreased by 1.3 percentage points to 21.8% from
23.1% for the same period of last year.
- Net income was $0.46 million, or
$0.02 per basic and diluted share,
for the three months ended December 31,
2019, compared to net loss of $2.21
million, or $0.06 per basic
and diluted share, for the same period of last year.
Third Quarter of Fiscal 2020 Financial Results
Revenue
Revenue for the three months ended December 31, 2019 increased by $2.45 million, or 7.9%, to $33.36 million from $30.92
million for the same period of last year. The increase in
revenue was primarily due to the growth in retail drugstores and
online pharmacy business.
|
|
For the Three
Months Ended December 31,
|
|
|
2019
|
|
2018
|
($
millions)
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
Retail
drugstores
|
|
21.58
|
|
15.39
|
|
28.7%
|
|
20.87
|
|
14.90
|
|
28.6%
|
Online
pharmacy
|
|
3.96
|
|
3.64
|
|
8.2%
|
|
2.49
|
|
2.23
|
|
10.4%
|
Wholesale
|
|
7.82
|
|
7.05
|
|
9.9%
|
|
7.56
|
|
6.65
|
|
12.1%
|
Total
|
|
33.36
|
|
26.08
|
|
21.8%
|
|
30.92
|
|
23.78
|
|
23.1%
|
Revenue from the retail drugstores business increased by
$0.71 million, or 3.4%, to
$21.58 million for the three months
ended December 31, 2019 from
$20.87 million for the same period of
last year. The increase was primarily attributable to the
consumer-facing benefits we provided, such as on-site medical care,
chronic disease management services, incremental
"Direct-to-Patient" ("DTP") business caused by continuous hospital
medical reform, and maturing of stores opened a year ago.
Revenue from the online pharmacy business increased by
$1.47 million, or 59.0%, to
$3.96 million for the three
months ended December 31, 2019 from
$2.49 million for the same period of
last year. The increase was primarily caused by an increase in
sales via e-commerce platforms such as Tmall, offset slightly by
the decline in sales via the Company's official site. Popular
products at reasonable prices are key to success in online
business. In order to promote the Company's sales, the Company
focused on the selection of medical equipment suitable to local
customers. Additionally, as more and more customers switch to
online OTC drug shopping, the Company's OTC drug sales grew
too.
Revenue from the wholesale business increased by $0.26 million, or 3.5%, to $7.82 million for the three months ended
December 31, 2019 from $7.56 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 $2.30 million, or 9.7%, to $26.08 million for the three months ended
December 31, 2019 from $23.78 million for the same period of last year.
Gross profit increased by $0.14 million, or 2.1%, to $7.28 million for three months ended December 31, 2019 from $7.14 million for the same period of last
year. Overall gross margin decreased by 1.3 percentage points
to 21.8% for the three months ended December
31, 2019, from 23.1% for the same period of last year.
Gross margins for retail drugstores, online pharmacy and
wholesale were 28.7%, 8.2%, and 9.9%, respectively, for the three
months ended December 31, 2019,
compared to the corresponding gross margins of 28.6%, 10.4%, and
12.1% for the same period of last year.
Income (Loss) from operations
Selling and marketing expenses decreased by $1.01 million, or 15.1%, to $5.68 million for the three months ended
December 31, 2019 from $6.69 million for the same period of last year.
The decrease in selling and marketing expenses was primarily
because the Company has outsourced logistic service to Astro Boy
Cloud Pan (Hangzhou) Storage and
Logistic Co. Ltd ("Astro Boy Logistic") since April 2019.
General and administrative expenses decreased by $1.52 million, or 59.0%, to $1.05 million for the three months ended
December 31, 2019 from $2.57 million for the same period of last year.
As the medical reform has been moving along in China, the central government of China
promulgated a series of policies to significantly push down the
prices of certain drugs covered by the National Health Insurance.
Local government even deferred payments to certain clinics and
drugstores on the drugs which the local government believes were
sold above the government's designated price range. The price
restriction and potential payment deferral may cut the profit and
affect the Company's operating cash flow. To be safe, in the three
months ended December 31, 2019, the
Company actively negotiated with certain customers and made efforts
to collect certain aged accounts receivable. As a result, the
Company reversed bad debt allowance of $0.79
million. In comparison, the Company recorded additional bad
debts allowance of $0.37 million in
the three months ended December 31,
2018.
Income from operations was $0.55 million for the three months ended
December 31, 2019, compared to loss
from operations of $2.13 million
for the same period of last year. Operating margin was 1.7% for the
three months ended December 31, 2019,
compared to operating loss of 6.9% for the same period of last
year.
Net income (loss)
Net income was $0.46 million, or
$0.02 per basic and diluted share for
the three months ended December 31,
2019, compared to net loss of $2.21
million, or $0.06 per basic
and diluted share for the same period of last year.
Nine months ended December 31,
2019 Financial Highlights
|
|
For the Nine
Months Ended December 31,
|
($ millions,
except per share data)
|
|
2019
|
|
2018
|
|
%
Change
|
Revenue
|
|
87.00
|
|
81.10
|
|
7.3%
|
Retail
drugstores
|
|
56.31
|
|
54.97
|
|
2.4%
|
Online
pharmacy
|
|
8.76
|
|
6.64
|
|
32.0%
|
Wholesale
|
|
21.93
|
|
19.49
|
|
12.5%
|
Gross
profit
|
|
20.04
|
|
18.55
|
|
8.0%
|
Gross
margin
|
|
23.0%
|
|
22.9%
|
|
0.1 pp*
|
Income (Loss) from
operations
|
|
(3.82)
|
|
(4.33)
|
|
11.8%
|
Net income
(loss)
|
|
(3.27)
|
|
(4.51)
|
|
27.5%
|
Earnings (loss) per
share
|
|
(0.09)
|
|
(0.14)
|
|
35.7%
|
*Notes: pp represents percentage points
- Revenue increased by 7.3% to $87.00
million for the nine months ended December 31, 2019 from $81.10 million for the same period of last
year.
- Gross profit increased by 8.0% to $20.04
million for the nine months ended December 31, 2019 from $18.55 million for the same period of last
year.
- Gross margin increased by 0.1 percentage points to 23.0% from
22.9% for the same period of last year.
- Net loss was $3.27 million, or
$0.09 per basic and diluted share,
for the nine months ended December 31,
2019, compared to $4.51
million, or $0.14 per basic
and diluted share, for the same period of last year.
Nine months ended December 31,
2019 Financial Results
Revenue
Revenue for the nine months ended December 31, 2019 increased by $5.90 million, or 7.3%, to $87.00 million from $81.10
million for the same period of last year. The increase in
revenue was primarily due to the increase in wholesale and online
pharmacy business.
|
|
For the Nine
Months Ended December 31,
|
|
|
2019
|
|
2018
|
($
millions)
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
Retail
drugstores
|
|
56.31
|
|
39.54
|
|
29.8%
|
|
54.97
|
|
39.35
|
|
28.4%
|
Online
pharmacy
|
|
8.76
|
|
7.77
|
|
11.3%
|
|
6.64
|
|
5.88
|
|
11.4%
|
Wholesale
|
|
21.93
|
|
19.65
|
|
10.4%
|
|
19.49
|
|
17.32
|
|
11.1%
|
Total
|
|
87.00
|
|
66.96
|
|
23.0%
|
|
81.10
|
|
62.55
|
|
22.9%
|
Revenue from the retail drugstores business increased by
$1.34 million, or 2.4%, to
$56.31 million for the nine months
ended December 31, 2019 from
$54.97 million for the same period of
last year. The increase was primarily attributable to the
consumer-facing benefits we provided, such as onsite medical care,
chronic disease management services, incremental DTP business
caused by continuous hospital medical reform, and maturing of
stores opened a year ago.
Revenue from the online pharmacy business increased by
$2.12 million, or 32.0%, to
$8.76 million for the nine months
ended December 31, 2019 from
$6.64 million for the same period of
last year. The increase was primarily caused by an increase in
sales via e-commerce platforms such as Tmall, offset slightly by
the decline in sales via the Company's official site.
Revenue from the wholesale business increased by $2.44 million, or 12.5%, to $21.93 million for the nine months ended
December 31, 2019 from $19.49 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 $4.41 million, or 7.1%, to $66.96 million for the nine months ended
December 31, 2019 from $62.55 million for the same period of last
year. Gross profit increased by $1.49
million, or 8.0%, to $20.04
million for the nine months ended December 31, 2019 from $18.55 million for the same period of last
year. Overall gross margin increased by 0.1 percentage points
to 23.0% for the nine months ended December
31, 2019, from 22.9% for the same period of last year.
Gross margins for retail drugstores, online pharmacy and
wholesale were 29.8%, 11.3%, and 10.4%, respectively, for the nine
months ended December 31, 2019,
compared to the corresponding gross margins of 28.4%, 11.4%, and
11.1% for the same period of last year.
Income (Loss) from operations
Selling and marketing expenses increased by $1.59 million, or 9.6%, to $18.13 million for the nine months ended
December 31, 2019 from $16.54 million for the same period of last year.
The increase in selling and marketing expenses was primarily due to
increases in labor related to the Company's store expansions and
rising local cost of living.
General and administrative expenses decreased by $0.61 million, or 9.7%, to $5.73 million for the nine months ended
December 31, 2019 from $6.34 million for the same period of last year.
In the nine months ended December 31,
2019, the Company reversed bad debt allowance of
$0.2 million. In comparison, the
Company recorded additional bad debts allowance of $1.27 million for the nine months ended
December 31, 2018.
Loss from operations was $3.82 million for the nine months ended
December 31, 2019, compared to
$4.33 million for the same
period of last year. Operating loss was 4.4% for the nine months
ended December 31, 2019, compared to
5.3% for the same period of last year.
Net income (loss)
Net loss was $3.27 million, or
$0.09 per basic and diluted share for
the nine months ended December 31,
2019, compared to net loss of $4.51
million, or $0.14 per basic
and diluted share for the same period of last year.
Financial Condition
As of December 31, 2019, the
Company had cash of $11.86 million,
compared to $9.32 million as of
March 31, 2019. Net cash used in
operating activities was $11.27
million for the nine months ended December 31, 2019, compared to $10.32 million for the same period of last year.
Net cash used in investing activities was $1.71 million for the nine months ended
December 31, 2019, compared to
$6.85 million for the same period of
last year. Net cash provided by financing activities was
$12.70 million for the nine months
ended December 31, 2019, compared to
$7.98 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. In addition, Jo-Jo
Drugstores cultivates 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
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
December
31,
|
|
|
March 31,
|
|
|
|
2019
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
11,858,985
|
|
|
$
|
9,322,463
|
|
Restricted
cash
|
|
|
12,035,385
|
|
|
|
15,422,739
|
|
Financial assets
available for sale
|
|
|
159,946
|
|
|
|
180,928
|
|
Notes
receivable
|
|
|
48,768
|
|
|
|
177,278
|
|
Trade accounts
receivable
|
|
|
11,465,402
|
|
|
|
8,692,514
|
|
Inventories
|
|
|
10,962,677
|
|
|
|
13,955,202
|
|
Other receivables,
net
|
|
|
5,862,408
|
|
|
|
4,438,230
|
|
Advances to
suppliers
|
|
|
1,393,247
|
|
|
|
1,950,252
|
|
Other current
assets
|
|
|
1,505,995
|
|
|
|
2,063,375
|
|
Total current
assets
|
|
|
55,292,813
|
|
|
|
56,202,981
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, net
|
|
|
8,097,428
|
|
|
|
8,727,358
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Long-term
investment
|
|
|
9,846
|
|
|
|
24,243
|
|
Farmland
assets
|
|
|
747,782
|
|
|
|
825,259
|
|
Long term
deposits
|
|
|
1,481,929
|
|
|
|
2,157,275
|
|
Other
noncurrent assets
|
|
|
1,134,643
|
|
|
|
1,196,197
|
|
Operating lease
right-of-use assets
|
|
|
15,318,428
|
|
|
|
-
|
|
Intangible assets,
net
|
|
|
3,715,629
|
|
|
|
3,597,323
|
|
Total other
assets
|
|
|
22,408,257
|
|
|
|
7,800,297
|
|
Total
assets
|
|
$
|
85,798,498
|
|
|
$
|
72,730,636
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable,
trade
|
|
|
15,870,874
|
|
|
|
23,106,230
|
|
Notes
payable
|
|
|
21,758,227
|
|
|
|
25,951,673
|
|
Other
payables
|
|
|
2,590,186
|
|
|
|
3,197,221
|
|
Other payables -
related parties
|
|
|
375,068
|
|
|
|
795,179
|
|
Customer
deposits
|
|
|
1,201,464
|
|
|
|
771,942
|
|
Taxes
payable
|
|
|
433,026
|
|
|
|
125,859
|
|
Accrued
liabilities
|
|
|
793,942
|
|
|
|
1,264,182
|
|
Long-term loan -
current portion
|
|
|
2,302,924
|
|
|
|
-
|
|
Current portion of
operating lease liabilities
|
|
|
409,756
|
|
|
|
-
|
|
Total current
liabilities
|
|
|
45,735,467
|
|
|
|
55,212,286
|
|
Long-term
loan
|
|
|
4,773,114
|
|
|
|
-
|
|
Long term operating
lease liabilities
|
|
|
12,670,694
|
|
|
|
-
|
|
Purchase option and
warrants liability
|
|
|
120,000
|
|
|
|
465,248
|
|
Financial
liability
|
|
|
71,757
|
|
|
|
81,935
|
|
Total
liabilities
|
|
|
63,371,032
|
|
|
|
55,759,469
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common stock; $0.001
par value; 250,000,000 shares authorized; 32,936,786 and
28,936,778 shares issued and outstanding as of December 31, 2019
and March 31,
2019
|
|
|
32,937
|
|
|
|
28,937
|
|
Preferred stock;
$0.001 par value; 10,000,000 shares authorized; nil issued and
outstanding as of December 31, 2019 and March 31, 2019
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
54,209,301
|
|
|
|
44,905,664
|
|
Statutory
reserves
|
|
|
1,309,109
|
|
|
|
1,309,109
|
|
Accumulated
deficit
|
|
|
(33,415,600)
|
|
|
|
(30,587,468)
|
|
Accumulated other
comprehensive income
|
|
|
1,926,259
|
|
|
|
2,508,964
|
|
Total stockholders'
equity
|
|
|
24,062,006
|
|
|
|
18,165,206
|
|
Noncontrolling
interests
|
|
|
(1,634,540)
|
|
|
|
(1,194,039)
|
|
Total
equity
|
|
|
22,427,466
|
|
|
|
16,971,167
|
|
Total liabilities and
stockholders' equity
|
|
$
|
85,798,498
|
|
|
$
|
72,730,636
|
|
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(UNAUDITED)
|
|
|
|
For the three months
ended
December 31,
|
|
|
For the nine months
ended
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES,
NET
|
|
$
|
33,363,282
|
|
|
$
|
30,916,549
|
|
|
$
|
86,997,845
|
|
|
$
|
81,098,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
26,079,910
|
|
|
|
23,780,763
|
|
|
|
66,959,671
|
|
|
|
62,548,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
7,283,372
|
|
|
|
7,135,786
|
|
|
|
20,038,174
|
|
|
|
18,549,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING
EXPENSES
|
|
|
5,676,400
|
|
|
|
6,688,577
|
|
|
|
18,130,799
|
|
|
|
16,539,078
|
|
GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
|
1,054,060
|
|
|
|
2,572,862
|
|
|
|
5,729,607
|
|
|
|
6,342,874
|
|
TOTAL OPERATING
EXPENSES
|
|
|
6,730,460
|
|
|
|
9,261,439
|
|
|
|
23,860,406
|
|
|
|
22,881,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
552,912
|
|
|
|
(2,125,653)
|
|
|
|
(3,822,232)
|
|
|
|
(4,332,262)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
272,773
|
|
|
|
18,964
|
|
|
|
661,160
|
|
|
|
92,196
|
|
OTHER INCOME (LOSS),
NET
|
|
|
(302,408)
|
|
|
|
32,795
|
|
|
|
(437,118)
|
|
|
|
12,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE IN FAIR VALUE
OF DERIVATIVE LIABILITIES
|
|
|
(65,172)
|
|
|
|
(85,115)
|
|
|
|
345,248
|
|
|
|
(173,955)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
|
458,105
|
|
|
|
(2,159,009)
|
|
|
|
(3,252,942)
|
|
|
|
(4,401,585)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
2,184
|
|
|
|
47,958
|
|
|
|
16,274
|
|
|
|
104,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
455,921
|
|
|
|
(2,206,967)
|
|
|
|
(3,269,216)
|
|
|
|
(4,506,297)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADD: NET LOSS
ATTRIBUTABLE TO
NONCONTROLLING INTEREST
|
|
|
75,861
|
|
|
|
528,736
|
|
|
|
441,084
|
|
|
|
594,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO CHINA JO-
JO DRUGSTORES, INC.
|
|
|
531,782
|
|
|
|
(1,678,231)
|
|
|
|
(2,828,132)
|
|
|
|
(3,911,501)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
358,868
|
|
|
|
(130,619)
|
|
|
|
(582,705)
|
|
|
|
(957,646)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS)
|
|
$
|
814,789
|
|
|
$
|
(2,337,586)
|
|
|
$
|
(3,851,921)
|
|
|
$
|
(5,463,943)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
32,936,786
|
|
|
|
28,936,778
|
|
|
|
32,776,786
|
|
|
|
28,936,778
|
|
Diluted
|
|
|
32,936,786
|
|
|
|
28,936,778
|
|
|
|
32,776,786
|
|
|
|
28,936,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.02
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.14)
|
|
Diluted
|
|
$
|
0.02
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.14)
|
|
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
For the
nine months ended
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,269,216)
|
|
|
$
|
(4,506,297)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Bad debt direct
write-off and provision
|
|
|
(29,038)
|
|
|
|
1,266,994
|
|
Depreciation and
amortization
|
|
|
1,572,925
|
|
|
|
937,268
|
|
Stock based
compensation
|
|
|
34,560
|
|
|
|
121,547
|
|
Change in fair value
of purchase option derivative liability
|
|
|
(345,248)
|
|
|
|
173,955
|
|
Accounts receivable,
trade
|
|
|
(2,581,208)
|
|
|
|
(4,061,698)
|
|
Notes
receivable
|
|
|
122,175
|
|
|
|
(43,024)
|
|
Inventories and
biological assets
|
|
|
2,484,432
|
|
|
|
1,828,232
|
|
Other
receivables
|
|
|
(1,353,544)
|
|
|
|
(681,667)
|
|
Advances to
suppliers
|
|
|
(222,928)
|
|
|
|
(911,061)
|
|
Other current
assets
|
|
|
(1,758,533)
|
|
|
|
476,909
|
|
Long term
deposit
|
|
|
597,084
|
|
|
|
18,548
|
|
Other noncurrent
assets
|
|
|
17,744
|
|
|
|
23,206
|
|
Accounts payable,
trade
|
|
|
(6,397,104)
|
|
|
|
(3,945,980)
|
|
Other payables and
accrued liabilities
|
|
|
(917,398)
|
|
|
|
815,725
|
|
Customer
deposits
|
|
|
458,415
|
|
|
|
(2,258,202)
|
|
Taxes
payable
|
|
|
312,192
|
|
|
|
422,665
|
|
Net cash used in
operating activities
|
|
|
(11,274,690)
|
|
|
|
(10,322,880)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Disposal of financial
assets available for sale
|
|
|
14,370
|
|
|
|
87,471
|
|
Purchase of financial
assets available for sale
|
|
|
-
|
|
|
|
(104,577)
|
|
Acquisition of
equipment
|
|
|
(561,677)
|
|
|
|
(5,368,240)
|
|
Increase in
intangible assets
|
|
|
(461,013)
|
|
|
|
(29,879)
|
|
Investment in a joint
venture
|
|
|
-
|
|
|
|
-
|
|
Additions to
leasehold improvements
|
|
|
(705,856)
|
|
|
|
(1,432,060)
|
|
Net cash used in
investing activities
|
|
|
(1,714,176)
|
|
|
|
(6,847,285)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from third
parties loan
|
|
|
7,085,406
|
|
|
|
-
|
|
Proceeds from notes
payable
|
|
|
36,537,832
|
|
|
|
32,903,549
|
|
Repayment of notes
payable
|
|
|
(39,784,592)
|
|
|
|
(24,930,903)
|
|
Increase in financial
liability
|
|
|
(7,185)
|
|
|
|
82,167
|
|
Proceeds from equity
financing
|
|
|
9,273,077
|
|
|
|
7,544
|
|
Repayment of other
payables-related parties
|
|
|
(406,506)
|
|
|
|
(82,866)
|
|
Net cash provided by
financing activities
|
|
|
12,698,032
|
|
|
|
7,979,491
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE ON CASH
|
|
|
(559,998)
|
|
|
|
(1,653,988)
|
|
|
|
|
|
|
|
|
|
|
DECREASE IN CASH AND
CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
(850,832)
|
|
|
|
(10,844,662)
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, beginning of period
|
|
|
24,745,202
|
|
|
|
31,452,191
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, end of period
|
|
$
|
23,894,370
|
|
|
$
|
20,607,529
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
17,215
|
|
|
$
|
56,539
|
|
View original
content:http://www.prnewswire.com/news-releases/china-jo-jo-drugstores-reports-third-quarter-2020-financial-results-301005092.html
SOURCE China Jo-Jo Drugstores,
Inc.