China Jo-Jo Reports Strong Q1 Revenue
The stock in China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) rose 1% to $1.32 per American depositary share by midday Friday after the company reported strong financial results for the first fiscal quarter ended June 30.
The pharmaceutical retailer said in a statement today that in the three months through June its revenues hit $31.05 million, up 22.8% year-over-year. Net loss narrowed to $390,000 versus $2.38 million in the same period a year ago.
China Jo-Jo attributed the revenue growth to its retail drugstores, online pharmacy, and wholesale operations. Its retail drugstores brought in $18.81 million, representing a 12.4% rise year-over-year.
"We're proud of our strong first-quarter performance, despite unprecedented volatility and uncertainty in the market and across the globe," Lei Liu, the chairman and chief executive officer of China Jo-Jo, said in a statement today.
He added, "We are rolling out our transformation strategy of 'Medical Linkage & Technology Empowerment' with the goal of providing quality medical services to commercial insurance customers from state-owned enterprises. We focus on stabilizing the medical supply in the market and protecting people's safety, allowing us to increase brand awareness, maintain revenues and expand margins."
Additionally, China Jo-Jo noted it maintains a membership care program targeted at chronic disease customers. The company has closely interacted with its members via WeChat by providing healthcare knowledge and reminding its customers to refill medicine.
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 60.6% to date.
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).