HANGZHOU, China, Feb. 14, 2019 /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, announced today its financial results
for its third fiscal quarter, ended December
31, 2018.
Mr. Lei Liu, Chairman and Chief Executive Officer of Jo-Jo
Drugstores, Inc., commented, "Our third quarter results reflect
solid revenue growth as we continue to improve our business. Our
progress reinforces our confidence in our underlying business and
growth strategy. We will continue to provide exceptional retail
drugstore services as we adapt to a changing regulatory and
technological environment, which is reflected in our new executive
hires and the everyday experience such as value-added medical
consultation and monitoring that our customers
receive."
Third Quarter of Fiscal 2019 Financial Highlights
|
|
For the Three
Months Ended December 31,
|
($ millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
|
30.92
|
|
26.81
|
|
15.3%
|
Retail
drugstores
|
|
20.87
|
|
18.29
|
|
14.1%
|
Online
pharmacy
|
|
2.49
|
|
3.39
|
|
-26.6%
|
Wholesale
|
|
7.56
|
|
5.13
|
|
47.3%
|
Gross
profit
|
|
7.14
|
|
5.57
|
|
28.1%
|
Gross
margin
|
|
23.1%
|
|
20.8%
|
|
2.3 pp*
|
Loss from
operations
|
|
(2.13)
|
|
(2.19)
|
|
-2.8%
|
Net loss
|
|
(2.21)
|
|
(1.63)
|
|
35.7%
|
Loss per
share
|
|
(0.06)
|
|
(0.08)
|
|
-25.0%
|
*Notes: pp represents percentage points
- Revenue increased by 15.3% to $30.92
million for the three months ended December 31, 2018, from $26.81 million for the same period of last
year.
- Gross profit increased by 28.1% to $7.14
million for the three months ended December 31, 2018, from $5.57 million for the same period of last
year.
- Gross margin increased by 2.3 percentage points to 23.1%
for the three months ended December 31,
2018, from 20.8% for the same period of last year.
- Net loss was $2.21 million, or
$0.06 per basic and diluted share for
the three months ended December 31,
2018, compared to $1.63
million, or $0.08 per basic
and diluted share for the same period of last year.
Third Quarter of Fiscal 2019 Financial Results
Revenue
Revenue for the three months ended December 31, 2018 increased by $4.10 million, or 15.3%, to $30.92 million, from $26.81 million for the same period of last year.
The increase in revenue was primarily due to the increase in retail
drugstores business and wholesale business, partially offset by the
decrease in online pharmacy business.
|
For the Three
Months Ended December 31,
|
|
2018
|
|
2017
|
($
millions)
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
Retail
drugstores
|
20.87
|
|
14.90
|
|
28.6%
|
|
18.29
|
|
13.69
|
|
25.2%
|
Online
pharmacy
|
2.49
|
|
2.23
|
|
10.4%
|
|
3.39
|
|
3.13
|
|
7.7%
|
Wholesale
|
7.56
|
|
6.65
|
|
12.1%
|
|
5.13
|
|
4.42
|
|
13.8%
|
Total
|
30.92
|
|
23.78
|
|
23.1%
|
|
26.81
|
|
21.24
|
|
20.8%
|
Revenue from the retail drugstores business increased by
$2.58 million, or 14.1%, to
$20.87 million for the three months
ended December 31, 2018, from
$18.29 million for the same period of
last year. The increase was primarily due to consumer-facing
benefits such as an emphasis on onsite medical care, chronic
disease management services, incremental DTP (Direct-to-Patient)
business caused by continuous hospital medical reform, promotional
campaigns such as fifteen-year anniversary sales, and the
maturation of stores opened a year ago.
Revenue from the online pharmacy business decreased by
$0.90 million, or 26.5%, to
$2.49 million for the three months
ended December 31, 2018, from
$3.39 million for the same
period of last year. The decrease was mainly caused by a decline in
sales via e-commerce platforms which suspended OTC
drug sales on their sites directly, partially offset by the
increase in business referred from Pharmacy Benefit Management
("PBM") providers. The Company is adding more non-medical health
products such as nutritional supplements into its sales menu to
counteract the decline in sale of OTC drug category.
Revenue from the wholesale business increased by $2.43 million, or 47.3%, to $7.56 million for the three months ended
December 31, 2018, from $5.13 million for the same period of last year.
The increase was primarily due to sale of certain medicines,
which the Company sold in large quantities at its retail
stores, to other vendors at competitive prices, as well as the sale
of certain nutritional supplements as sales agents.
Gross profit and gross margin
The total cost of goods sold increased by $2.54 million, or 12.0%, to $23.78 million for the three months ended
December 31, 2018, from $21.24 million for the same period last year.
Gross profit increased by $1.56
million, or 28.1%, to $7.14
million for three months ended December 31, 2018, from $5.57 million for the same period last
year. Overall gross margin increased by 2.3 percentage points
to 23.1% for the three months ended December
31, 2018, from 20.8% for the same period of last year, due
to higher retail and online profit margins.
Gross margin for retail drugstores increased by 3.4 percentage
points to 28.6% for the three months ended December 31, 2018, from 25.2% for the same period
of last year, primarily as a result of the introduction of new
suppliers, and the continuing renegotiation of prices with the
Company's suppliers.
Gross margin for the online pharmacy increased by 2.7 percentage
points to 10.4% for the three months ended December 31, 2018, from 7.7% for the same period
of last year, primarily due to the increase in sales via the
Company's own official website, offset by a decrease in sales via
third-party platforms, which are usually subject to low profit
margins.
Gross margin for wholesale decreased by 1.7 percentage to 12.1%
for the three months ended December 31,
2018, from 13.8% for the same period of last year, primarily
as a result of different products the Company carries and sells to
certain pharmaceutical vendors.
Loss from operations
Selling and marketing expenses increased by $1.67 million, or 33.2%, to $6.69 million for the three months ended
December 31, 2018, from $5.02 million for the same period of last year.
The increase in selling and marketing expenses was primarily due to
increases in marketing and sales staff expenses and rental expenses
related to store expansions.
General and administrative expenses decreased by $0.16 million, or 6.0%, to $2.57 million for the three months ended
December 31, 2018, from $2.74 million for the same period of last year.
The decrease in general and administrative expenses was primarily
caused by a decrease in bad debt expenses.
Loss from operations totaled $2.13
million for the three months ended December 31, 2018, compared to $2.19 million for the same period of last year.
Operating margin was negative 6.9% for the three months ended
December 31, 2018, compared to
negative 8.2% for the same period of last year.
Net loss
The Company's net loss was $2.21
million, or $0.06 per basic
and diluted share for the three months ended December 31, 2018, compared to $1.63 million, or $0.08 per basic and diluted share for the same
period of last year.
Nine Months Ended December 31,
2018 Financial Highlights
|
|
For the Nine
Months Ended December 31,
|
($ millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
|
81.10
|
|
71.97
|
|
12.7%
|
Retail
drugstores
|
|
54.97
|
|
46.36
|
|
18.6%
|
Online
pharmacy
|
|
6.64
|
|
9.59
|
|
-30.8%
|
Wholesale
|
|
19.49
|
|
16.02
|
|
21.6%
|
Gross
profit
|
|
18.55
|
|
15.31
|
|
21.2%
|
Gross
margin
|
|
22.9%
|
|
21.3%
|
|
1.6 pp*
|
Loss from
operations
|
|
(4.33)
|
|
(5.30)
|
|
-18.3%
|
Net loss
|
|
(4.51)
|
|
(4.21)
|
|
6.9%
|
Loss per
share
|
|
(0.14)
|
|
(0.17)
|
|
-19.1%
|
*Notes: pp represents percentage points
- Revenue increased by 12.7% to $81.10
million for the nine months ended December 31, 2018, from $71.97 million for the same period of last
year.
- Gross profit increased by 21.2% to $18.55 million for the nine months ended
December 31, 2018, from $15.31 million for the same period of last
year.
- Gross margin increased by 1.6 percentage points to 22.9% for
the nine months ended December 31,
2018, from 21.3% for the same period of last year.
- Net loss was $4.51 million, or
$0.14 per basic and diluted share for
the nine months ended December 31,
2018, compared to $4.21
million, or $0.17 per basic
and diluted share for the same period of last year.
Nine Months Ended December 31,
2018 Financial Results
Revenue
Revenue for the nine months ended December 31, 2018 increased by $9.12 million, or 12.7%, to $81.10 million from $71.97
million for the same period of last year. The increase in
revenue was primarily due to the increase in retail drugstores and
wholesale business, partially offset by the decrease in online
pharmacy business.
|
|
For the Nine
Months Ended December 31,
|
|
|
2018
|
|
2017
|
($
millions)
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Goods
|
|
Gross
Margin
|
Retail
drugstores
|
|
54.97
|
|
39.35
|
|
28.4%
|
|
46.35
|
|
34.23
|
|
26.2%
|
Online
pharmacy
|
|
6.64
|
|
5.88
|
|
11.4%
|
|
9.60
|
|
8.65
|
|
9.9%
|
Wholesale
|
|
19.49
|
|
17.32
|
|
11.1%
|
|
16.02
|
|
13.79
|
|
13.9%
|
Total
|
|
81.10
|
|
62.55
|
|
22.9%
|
|
71.97
|
|
56.67
|
|
21.3%
|
Revenue from the retail drugstores business increased by
$8.61 million, or 18.6%, to
$54.97 million for the nine months
ended December 31, 2018, from
$46.36 million for the same period of
last year. The increase was primarily due to consumer-facing
benefits such as emphasis on onsite medical care, chronic disease
management, incremental DTP (Direct-to-Patient) business caused by
continuous hospital medical reform, and the maturation of stores
opened a year ago.
Revenue from the online pharmacy business decreased by
$2.95 million, or 30.8%, to
$6.64 million for the nine months
ended December 31, 2018, from
$9.59 million for the same
period of last year. The decrease was mainly caused by a decline in
sales via e-commerce platforms which suspended the direct sale
of OTC drugs on their sites, and was partially offset by the
increase in business referred to the Company from PBM providers.
The Company is adding more non-medical health products such as
nutritional supplements into its sales menu to counteract the
decline in sale of OTC drug category.
Revenue from the wholesale business increased by $3.47 million, or 21.6%, to $19.49 million for the nine months ended
December 31, 2018, from $16.02 million for the same period of last year.
The increase was primarily a result of the Company's ability to
sell certain medicines, which the Company sold in large
quantities in its retail stores, to other vendors at competitive
prices, as well as the sale of certain nutritional supplements as
sales agents.
Gross profit and gross margin
The total cost of goods sold increased by $5.88 million, or 10.4%, to $62.55 million for the nine months ended
December 31, 2018, from $56.67 million for the same period of last year.
Gross profit increased by $3.24
million, or 21.2%, to $18.55
million for nine months ended December 31, 2018, from $15.31 million for the same period of last
year. Overall gross margin increased by 1.6 percentage points
to 22.9% for the nine months ended December
31, 2018, from 21.3% for the same period of last year, due
to higher retail profit margins.
Gross margin for retail drugstores increased by 2.2 percentage
points to 28.4% for the nine months ended December 31, 2018, from 26.2% for the same period
of last year, primarily because of the introduction of new
suppliers, and the continuing renegotiating of prices with the
Company's suppliers.
Gross margin for online pharmacy increased by 1.5 percentage
points to 11.4% for the nine months ended December 31, 2018, from 9.9% for the same period
of last year. The increase was due to the increase in sales via the
Company's own official website, offset by the decrease in sales via
third-party platforms, which are usually subject to low profit
margin.
Gross margin for wholesale decreased by 2.8 percentage points to
11.1% for the nine months ended December 31,
2018, from 13.9% for the same period of last year, primarily
as a result of different products the Company carried and sold to
certain pharmaceutical vendors.
Loss from operations
Selling and marketing expenses increased by $3.25 million, or 24.5%, to $16.54 million for the nine months ended
December 31, 2018 from $13.29 million for the same period of last year.
The increase in selling and marketing expenses was primarily due to
an increase in marketing and sales staff expense and rental expense
related to store expansion.
General and administrative expenses decreased by $0.98 million, or 13.3%, to $6.34 million for the nine months ended
December 31, 2018, from $7.32 million for the same period of last year.
The decrease in general and administrative expenses was primarily
caused by a decrease in bad debt expense.
Loss from operations was $4.33
million for the nine months ended December 31, 2018, compared to $5.30 million for the same period of last year.
Operating margin was negative 5.3% for the nine months ended
December 31, 2018, compared to
negative 7.4% for the same period of last year.
Net loss
Net loss totaled $4.51 million, or
$0.14 per basic and diluted share for
the nine months ended December 31,
2018, compared to $4.21
million, or $0.17 per basic
and diluted share for the same period of last year.
Financial Condition
As of December 31, 2018, the
Company had cash and restricted cash of $20.61 million, compared to $24.22 million as of March 31, 2018. Net cash used in operating
activities totaled $10.32 million for
the nine months ended December 31,
2018, compared to $9.80
million for the same period of last year. Net cash used in
investing activities was $6.85
million for the nine months ended December 31, 2018, compared to $1.76 million for the same period of last year.
Net cash provided by financing activities was $7.98 million for the nine months ended
December 31, 2018, compared to net
cash provided by financing activities of $5.57 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 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
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
|
|
|
2018
|
|
2018
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash
|
$
|
5,619,051
|
|
$
|
15,132,640
|
|
Restricted
cash
|
|
14,988,478
|
|
|
16,319,551
|
|
Financial assets
available for sale
|
|
176,560
|
|
|
175,140
|
|
Notes
receivable
|
|
296,687
|
|
|
279,082
|
|
Trade accounts
receivable
|
|
10,637,316
|
|
|
8,322,393
|
|
Inventories
|
|
10,483,059
|
|
|
13,429,568
|
|
Other receivables,
net
|
|
3,718,546
|
|
|
3,098,079
|
|
Advances to
suppliers
|
|
3,489,010
|
|
|
3,447,452
|
|
Other current
assets
|
|
1,468,188
|
|
|
2,116,237
|
|
|
Total current
assets
|
|
50,876,895
|
|
|
62,320,142
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, net
|
|
8,427,870
|
|
|
2,843,640
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
Long-term
investment
|
|
34,208
|
|
|
40,890
|
|
Farmland
assets
|
|
727,064
|
|
|
796,286
|
|
Long term
deposits
|
|
2,266,420
|
|
|
2,501,968
|
|
Other noncurrent
assets
|
|
1,121,814
|
|
|
1,253,352
|
|
Intangible assets,
net
|
|
3,570,986
|
|
|
4,056,414
|
|
|
Total other
assets
|
|
7,720,492
|
|
|
8,648,910
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
67,025,257
|
|
$
|
73,812,692
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Accounts payable,
trade
|
|
19,223,835
|
|
|
25,259,526
|
|
Notes
payable
|
|
25,271,064
|
|
|
19,180,200
|
|
Other
payables
|
|
3,851,366
|
|
|
4,272,523
|
|
Other payables -
related parties
|
|
726,219
|
|
|
850,342
|
|
Customer
deposits
|
|
1,492,122
|
|
|
4,040,867
|
|
Taxes
payable
|
|
745,518
|
|
|
366,040
|
|
Accrued
liabilities
|
|
1,618,006
|
|
|
841,993
|
|
|
Total current
liabilities
|
|
52,928,130
|
|
|
54,811,491
|
|
|
|
|
|
|
|
Financial
liability
|
|
79,957
|
|
|
|
|
Purchase option and
warrants liability
|
|
312,751
|
|
|
138,796
|
|
|
Total
liabilities
|
|
53,320,838
|
|
|
54,950,287
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Common stock; $0.001
par value; 250,000,000 shares authorized; 28,936,778 and 28,936,778
shares issued and outstanding as of December 31, 2018 and
March 31, 2018
|
|
28,937
|
|
|
28,937
|
|
Preferred stock;
$0.001 par value; 10,000,000 shares authorized; nil issued and
outstanding as of December 31, 2018 and March 31,
2018
|
|
-
|
|
|
-
|
|
Additional paid-in
capital
|
|
43,747,589
|
|
|
43,599,089
|
|
Statutory
reserves
|
|
1,309,109
|
|
|
1,309,109
|
|
Accumulated
deficit
|
|
(33,572,688)
|
|
|
(29,661,190)
|
|
Accumulated other
comprehensive income
|
|
2,628,814
|
|
|
3,586,460
|
|
|
Total stockholders'
equity
|
|
14,141,761
|
|
|
18,862,405
|
|
|
Noncontrolling
interests
|
|
(437,342)
|
|
|
-
|
|
|
Total
equity
|
|
13,704,419
|
|
|
18,862,405
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
67,025,257
|
|
$
|
73,812,692
|
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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES,
NET
|
$
|
30,916,549
|
|
$
|
26,812,242
|
|
$
|
81,098,161
|
|
$
|
71,973,653
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
23,780,763
|
|
|
21,240,629
|
|
|
62,548,471
|
|
|
56,666,782
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
7,135,786
|
|
|
5,571,613
|
|
|
18,549,690
|
|
|
15,306,871
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING
EXPENSES
|
|
6,688,577
|
|
|
5,020,971
|
|
|
16,539,078
|
|
|
13,288,602
|
GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
2,572,862
|
|
|
2,737,782
|
|
|
6,342,874
|
|
|
7,318,780
|
TOTAL OPERATING
EXPENSES
|
|
9,261,439
|
|
|
7,758,753
|
|
|
22,881,952
|
|
|
20,607,382
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
(2,125,653)
|
|
|
(2,187,140)
|
|
|
(4,332,262)
|
|
|
(5,300,511)
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
18,964
|
|
|
76,266
|
|
|
92,196
|
|
|
479,509
|
OTHER INCOME,
NET
|
|
32,795
|
|
|
301,292
|
|
|
12,436
|
|
|
263,241
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE IN FAIR VALUE
OF DERIVATIVE LIABILITIES
|
|
(85,115)
|
|
|
221,859
|
|
|
(173,955)
|
|
|
420,610
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
(2,159,009)
|
|
|
(1,587,723)
|
|
|
(4,401,585)
|
|
|
(4,137,151)
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
47,958
|
|
|
38,106
|
|
|
104,712
|
|
|
76,691
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
(2,206,967)
|
|
|
(1,625,829)
|
|
|
(4,506,297)
|
|
|
(4,213,842)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(130,619)
|
|
|
588,543
|
|
|
(957,646)
|
|
|
1,680,796
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
$
|
(2,337,586)
|
|
$
|
(1,037,286)
|
|
$
|
(5,463,943)
|
|
$
|
(2,533,046)
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
28,936,778
|
|
|
25,214,678
|
|
|
28,936,778
|
|
|
25,214,678
|
Diluted
|
|
28,936,778
|
|
|
25,214,678
|
|
|
28,936,778
|
|
|
25,214,678
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARES:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.06)
|
|
$
|
(0.08)
|
|
$
|
(0.14)
|
|
$
|
(0.17)
|
Diluted
|
$
|
(0.06)
|
|
$
|
(0.08)
|
|
$
|
(0.14)
|
|
$
|
(0.17)
|
CHINA JO-JO
DRUGSTORES, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
Nine months ended
December 31,
|
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(4,506,297)
|
|
$
|
(4,213,842)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Bad debt direct
write-off and provision
|
|
1,266,994
|
|
|
1,948,887
|
Depreciation and
amortization
|
|
937,268
|
|
|
1,063,170
|
Impairment of
leasehold improvement
|
|
-
|
|
|
(362,737)
|
Stock based
compensation
|
|
121,547
|
|
|
976,816
|
Change in fair value
of purchase option derivative liability
|
|
173,955
|
|
|
(420,610)
|
Accounts receivable,
trade
|
|
(4,061,698)
|
|
|
(4,830,933)
|
Notes
receivable
|
|
(43,024)
|
|
|
79,250
|
Inventories and
biological assets
|
|
1,828,232)
|
|
|
(2,945,926)
|
Other
receivables
|
|
(681,667)
|
|
|
(149,447)
|
Advances to
suppliers
|
|
(911,061)
|
|
|
(990,309)
|
Other current
assets
|
|
476,909
|
|
|
562,148
|
Long term
deposit
|
|
18,548
|
|
|
(1,345,486)
|
Other noncurrent
assets
|
|
23,206
|
|
|
(63,263)
|
Accounts payable,
trade
|
|
(3,945,980)
|
|
|
853,598
|
Other payables and
accrued liabilities
|
|
815,725
|
|
|
(127,969)
|
Customer
deposits
|
|
(2,258,202)
|
|
|
387,458
|
Taxes
payable
|
|
422,665
|
|
|
(222,207)
|
Net cash
used in operating activities
|
|
(10,322,880)
|
|
|
(9,801,402)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Disposal of financial
assets available for sale
|
|
87,471
|
|
|
-
|
Purchase of financial
assets available for sale
|
|
(104,577)
|
|
|
(136,074)
|
Acquisition of
equipment
|
|
(5,368,240)
|
|
|
(237,108)
|
Increase in
construction-in-progress
|
|
-
|
|
|
(1,125,110)
|
Increase intangible
assets
|
|
(29,879)
|
|
|
-
|
Investment in a joint
venture
|
|
-
|
|
|
(9,601)
|
Additions to
leasehold improvements
|
|
(1,432,060)
|
|
|
(249,097)
|
Net cash
used in investing activities
|
|
(6,847,285)
|
|
|
(1,756,990)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from notes
payable
|
|
32,903,549
|
|
|
28,352,683
|
Repayment of notes
payable
|
|
(24,930,903)
|
|
|
(22,501,743)
|
Increase in financial
liability
|
|
82,167
|
|
|
-
|
Proceeds from equity
and debt financing
|
|
7,544
|
|
|
-
|
Repayment of other
payables-related parties
|
|
(82,866)
|
|
|
(278,691)
|
Net cash
used in financing activities
|
|
7,979,491
|
|
|
5,572,249
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE ON CASH
|
|
(1,653,988)
|
|
|
2,408,839
|
|
|
|
|
|
|
INCREASE IN CASH AND
CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(10,844,662)
|
|
|
(3,577,304)
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, beginning of year
|
|
31,452,191
|
|
|
27,795,810
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, end of period
|
$
|
20,607,529
|
|
$
|
24,218,506
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
56,539
|
|
$
|
27,856
|
View original
content:http://www.prnewswire.com/news-releases/china-jo-jo-drugstores-reports-third-quarter-2019-financial-results-300795106.html
SOURCE China Jo-Jo Drugstores,
Inc.