China Jo-Jo Drugstores Rises 4% on Strong Q1 Revenue
The stock in China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) rose nearly 4% to $1.43 per American depositary share by midday Friday after the company reported strong revenue in the fiscal year 2020.
The pharmaceutical retailer said in a statement today that in the 12 months through March its revenues hit $117.33 million, up 9% year-over-year. Net loss widened to $6.46 million versus $1.32 million in the same period in the preceding year.
China Jo-Jo attributed the revenue growth to its retail drugstores, online pharmacy, and wholesale operations. Its retail drugstores brought in $74.08 million, representing a 2% rise year-over-year.
"When facing the pandemic of COVID-19, we are uniquely positioned to understand consumer and market needs and how to address them," Lei Liu, the chairman, and chief executive officer of China Jo-Jo, said in a statement today.
He added, "We will continue monitoring the latest developments and taking appropriate measures to combat the COVID-19 pandemic and provide supports to our customers and the society.
Overall, it was a strong performance for the Chinese pharmaceutical sector in the first quarter. According to data from the State Economic Commission, sales by Chinese firms in the industry soared 22% to a value of $4 billion, and profits in the sector rose 27% to $238.8 million.
However, China Jo-Jo's stock has been on nosedive since late May. Since closing $3.35 per share on May 27, shares of China Jo-Joe are down 57% to date. It also announced a $10 million direct offering in early June, which investors didn't take too kindly to.
Based in Hangzhou, CJJD provides pharmaceutical and healthcare products through offline and online retail channels in China. In addition, the company sells products through e-commerce giants such as Alibaba Group's (NYSE: BABA; HKEX: 9988) Tmall, JD.com Inc. (Nasdaq: JD) and Amazon (Nasdaq: AMZN).
While the company did not provide a financial outlook Liu said "we are confident that we are on the right track to deliver significant value to all our investors and shareholders". As of March, China Jo-Jo had cash of $16.18 million.
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