China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD)

HANGZHOU, China, Feb. 3, 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 that the Company has pledged to provide assistance to those affected by the contagious virus and fight against the 2019 Novel Coronavirus, or coronavirus[1] outbreak in Hangzhou, China, where the Company is headquartered.

To stabilize the medical supply in the market and protect people's safety in Hangzhou, the Company has intensified its efforts to help control the spread of the coronavirus in several perspectives including:

issuing an initiative (the "Initiative") with other local major pharmacy chain stores and medical association to the public, promising and encouraging to run business with honesty and integrity, and to allocate medical supplies rationally in reaction to the sell-out of multiple medicines resulting from people's fear posed by the virus outbreak.
establishing the "24-hour Coronavirus Emergency Team" and formulating the "Wuhan Pneumonia Emergency Plan" to ensure the implementation of the coronavirus prevention and control work.
entering into emergency work status and contacting over 1,200 domestic and foreign vendors to allocate medical supplies to stabilize the market and to resist the spread of coronavirus.
setting up a coronavirus channel on the Company's online hospital platform to provide medical consultation services and to provide customers with a 24-hour service hotline.
popularizing news and information of coronavirus through various social media platforms to teach people methods to defend against the virus and to shore up the hope to reduce their fears of the virus diffusion.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, commented, "We are paying close attention to the situation and development of the coronavirus. We issued the Initiative in the first time with Hangzhou Pharmaceutical Industry Association and nine local influential pharmacy chain companies, representing an associated business network covering more than 1,000 pharmacies, accounting for about 70% of the total number of pharmacies in Hangzhou. So far, we have assembled more than 200,000 protective masks, nearly 10 tons of disinfection products, and more than 10 varieties of medicines in short supply, totaling over 300,000 boxes. As a member of the community and a listed company, it is our duty to make contributions to the society. We look forward to overcoming the difficulties and fulfilling our mission of providing quality medical services to make the people healthier."

[1] 2019 Novel Coronavirus (2019-nCoV) is a virus (more specifically, a coronavirus) identified as the cause of an outbreak of respiratory illness first detected in Wuhan, China. Early on, many of the patients in the outbreak in Wuhan, China reportedly had some link to a large seafood and animal market, suggesting animal-to-person spread. However, a growing number of patients reportedly have not had exposure to animal markets, indicating person-to-person spread is occurring. At this time, it's unclear how easily or sustainably this virus is spreading between people.  The latest situation summary updates are available on The Centers for Disease Control and Prevention's web page 2019 Novel Coronavirus, Wuhan, China.

Second Quarter 2020 Financial Results

• Revenue increased by 3.4% to $28.35 million for the three months ended September 30, 2019 from $27.41 million for the same period of last year.
• Net loss was $1.35 million, or $0.04 per basic and diluted share, for the three months ended September 30, 2019, compared to $1.60 million, or $0.06 per basic and diluted share, for the same period of last year.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, commented, "We are pleased to announce our financial results for the second quarter of fiscal year 2020, with revenue increasing by 3.4% compared to the same period last year. We made great strides in boosting our business and optimizing our operation. As a result, our gross profit had a 15.5% increase and gross margin had a 2.4 percent points increase in the second quarter of 2019. We will continue executing our long-term growth strategy, improving our operations to deliver high quality services to our customers in a challenging and competitive environment." 

First Quarter 2020 Financial Results

• Revenue increased by 11.0% to $25.28 million for the three months ended June 30, 2019 from $22.77 million for the same period of last year.
• Net loss was $2.38 million, or $0.07 per basic and diluted share, for the three months ended June 30, 2019, compared to $0.70 million, or $0.02 per basic and diluted share, for the same period of last year.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, commented, "We are pleased to announce our financial results for the first quarter of fiscal year 2020. Our sales grew 11.0%, with sales growth in our retail drugstores, online pharmacy, and wholesale segments. We will continue adapting to the changing retail drugstore environment and making progress towards our long-term strategic goals. We remain confident of our ability to realize the potential of our business model as we endeavor to provide the best experience to our customers."  

HANGZHOU, China, July 1, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (CJJD) ("Jo-Jo Drugstores" 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 its financial results for the fiscal year ended March 31, 2019.

Mr. Lei Liu, Chairman and Chief Executive Officer of China Jo-Jo Drugstores, Inc., commented, "We are pleased to present our financial results for our 2019 fiscal year. We increased our top line revenue to $107.55 million for the 2019 fiscal year as compared to $96.11 million for the previous fiscal year. Over the course of the 2019 fiscal year we made great strides in improving our operations and made a key senior appointment by appointing Mr. Wei Hu to serve as our new Chief Operating Officer, to accelerate the transition and digitalization of our company in the rapidly evolving retail drugstore industry. We look forward to further improving our operations and continuing to provide effective and efficient services to our loyal customer base for the coming years." 

• Revenues increased by 11.9% to $107.55 million for the fiscal year ended March 31, 2019 from $96.11 million for the prior fiscal year.
• Gross profit increased by 24.8% to $25.11 million for the fiscal year ended March 31, 2019 from $20.13 million for prior fiscal year.
• Gross margin increased by 2.4 percentage points to 23.3% for the fiscal year ended March 31, 2019 from 20.9% for the prior fiscal year.
• Net loss was $1.32 million, or $0.03 per basic and diluted share, for the fiscal year ended March 31, 2019, compared to $17.06 million, or $0.68 per basic and diluted share, for the same period of last year, which is a decrease in loss.

Fiscal Year 2019 Financial Results

Revenue

Revenue for the fiscal year ended March 31, 2019 increased by $11.44 million, or 11.9%, to $107.55 million from $96.11 million for the prior fiscal year. The increase in revenue was primarily due to the revenue increase in retail drugstores and wholesale business, partially offset by the decrease in online sales business.

Revenue from the retail drugstores business increased by $10.36 million, or 16.7%, to $72.34 million for the fiscal year ended March 31, 2019 from $61.98 million for the prior fiscal 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 $3.35 million, or 27.6%, to $8.78 million for the fiscal year ended March 31, 2019 from $12.13 million for the prior fiscal year. The decrease was mainly caused by a decline in sales via e-commerce platforms which suspended OTC drug sales on their sites directly, 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 product offerings to counteract the decline in sale of OTC drugs.

Revenue from the wholesale business increased by $4.43 million, or 20.1%, to $26.43 million for the fiscal year ended March 31, 2019 from $22.00 million for the prior fiscal year. The increase was primarily a result of the Company's ability to resell certain products, which the Company sold in large quantity at its retail stores, to other vendors at competitive prices, as well as sales of certain nutritional supplements to sales agents.

Gross profit and gross margin

Total cost of goods sold increased by $6.45 million, or 8.5%, to $82.44 million for the fiscal year ended March 31, 2019 from $75.99 million for the prior fiscal year. Gross profit increased by $4.99 million, or 24.8%, to $25.11 million for the fiscal year ended March 31, 2019 from $20.13 million for the prior fiscal year. Overall gross margin increased by 2.4 percentage points to 23.3% for the fiscal year ended March 31, 2019, from 20.9% for the prior fiscal year, due to higher retail profit margins.

Gross margin for the Company's retail drugstores segment increased by 3.3 percentage points to 29.2% for the fiscal year ended March 31, 2019, from 25.9% for the prior fiscal year, primarily because of the introduction of new suppliers, and the continuing renegotiating of prices with the Company's suppliers.

Gross margin for the online pharmacy segment increased by 1.3 percentage points to 11.8% for the fiscal year ended March 31, 2019, from 10.5% for the prior fiscal year, primarily due to the increase in sales via the Company's own official website, offset by decrease in sale via third-party platforms, which are usually subject to low profit margin.

Gross margin for the Company's wholesale segment decreased by 1.4 percentage to 11.3% for the fiscal year ended March 31, 2019, from 12.7% for the prior fiscal year, primarily as a result of variation in the products the Company carries and sells to certain pharmaceutical vendors.

Loss from operations

Selling and marketing expenses increased by $5.53 million, or 29.5%, to $24.27 millionfor the fiscal year ended March 31, 2019 from $18.74 million for the prior fiscal year, primarily due to increases in labor and rent related to store expansions and increases in the cost of living.

General and administrative expenses decreased by $16.10 million, or 90.4%, to $1.72 million for the fiscal year ended March 31, 2019 from $17.82 million for the prior fiscal year. In fiscal 2019, in order to use cash more efficiently, the Company accelerated the collection of advances to suppliers and accounts receivables. Specifically, we focused on the collection of aged accounts of advances to suppliers and accounts receivable. As the Company has collected these amounts, its allowance on doubtful accounts decreased by approximately $7.7 million. Additionally, the Company's stock compensation expense decreased by approximately $6.8 million primarily as a result of issuing shares to its key employees in fiscal 2018. Excluding such expenses, general and administrative expenses decreased by approximately $1.6 million or 9%, which reflects control of expense such as overall management cash compensation in fiscal year 2019. 

Impairment of long-lived assets was nil for the fiscal year ended March 31, 2019, compared to $1.58 million for the prior fiscal year. On March 31, 2018, Jiuxin Medicine started outsourcing its logistic service to Astro Boy Cloud Pan (Hangzhou) Storage and Logistic Co. Ltd, Jiuxin Medicine's warehouse lease has been terminated. As a result, approximately $1.58 million in unamortized warehouse improvements were recognized as expenses in the year ended March 31, 2018. Such impairment was made after the Company estimated that the implied fair value of long-lived assets was lower than their carrying value.

Loss from operations was $0.88 million for the fiscal year ended March 31, 2019, compared to $18.02 million for the prior fiscal year. Operating margin was negative 0.8% for the fiscal year ended March 31, 2019, compared to negative 18.8% for the prior fiscal year.

Net loss

Net loss was $1.32 million, or $0.03 per basic and diluted share for the fiscal year ended March 31, 2019, compared to net loss of $17.06 million, or $0.68 per basic and diluted share for the prior fiscal year.

Financial Condition

As of March 31, 2019, the Company had cash of $24.75 million, compared to $31.45 million as of March 31, 2018. Net cash used in operating activities was $5.60 million for the fiscal year ended March 31, 2019, compared to $2.07 million for the prior fiscal year. Net cash used in investing activities was $7.33 million for the fiscal year ended March 31, 2019, compared to $2.98 million for the prior fiscal year. Net cash provided by financing activities was $8.08 million for the fiscal year ended March 31, 2018, compared to net cash used in financing activities of $4.89 million for the prior fiscal year.

HANGZHOU, China, June 24, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (CJJD) ("Jo-Jo Drugstores" or the "Company"), a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a healthcare provider in China, announced today that the Company has entered into a strategic cooperation framework agreement (the "Agreement") with the Zhejiang Medical Insurance Bureau (the "MIB") in June 2019. By entering into the Agreement, the Company joins the first batch of third-party distribution service partners of the government officially undertaking the provincial medical insurance project.  As a designated delivery service agent for the provincial medical insurance project, the Company expects to improve its negotiation position for drug procurement, expand its retail pharmacy coverage, and highlight its corporate brand and influence, providing a strong foundation for the rapid expansion of the Company's franchising operations.

In 2019, the State Council's government work report and the provincial government's medical insurance policy added 12 common chronic diseases such as hypertension and diabetes into the scope of covered diseases and allows urban and rural residents to purchase prescribed drugs for these diseases at pharmacies. This policy requires cooperation between the government and private enterprises and enables medical chain pharmacies to comprehensively establish and operate third-party delivery service mechanisms for drugs. Pursuant to the Agreement, both parties agree to fully cover insured residents in Zhejiang province, ensure a stable supply of medications and prompt drug delivery. The MIB agrees to authorize the Company to operate as a third-party distribution service partner to undertake the provincial medical insurance project and assist the Company in solving problems in distribution services to create an improved business environment. The Company agrees to ensure its stores can cover every county and city in the province, regularly publish a list of commonly used drugs for chronic diseases and a list of delivery service stores to the public, and strictly implement the relevant systems for drug and prescription management in the healthcare sector. As part of the Agreement, the Company agrees to sell medical insurance-related chronic disease drugs which are on the provincial medicine procurement platform, execute the same payment standards as public hospitals and not all the drugs purchased from the provincial medicine procurement platform to enter other sales channels.

Mr. Wei Hu, Chief Operating Officer of Jo-Jo Drugstores, Inc., commented, "Currently, of the 1,304 urban and rural residents' medical insurance chronic disease drug distribution service stores, we occupy 237, covering 89 counties and cities in Zhejiang province, providing 195 chronic disease medicines. These facilities essentially cover the drug distribution needs of chronic patients and we are continuously working to improve access for the medicinal treatment for chronic disease medicines for urban and rural residents."

Mr. Hu continued, "In addition to the traditional selling methods in our retail stores, we have four additional sales channels: online booking, O2O booking, B2C booking, and shop booking. By synchronizing with Meituan, Jingdong, Hungry, Ali Health, micro-Mall and cooperating with five other platforms, we can deliver drugs in half an hour for customers within 4 kilometers, and achieve distribution volumes similar to the top chains in Hangzhou. We expect to open a 24-hour unmanned smart drug store in Hangzhou to meet customers' needs."

HANGZHOU, China, June 24, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (CJJD) ("Jo-Jo Drugstores" or the "Company"), a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a healthcare provider in China, announced today that the Company has entered into a strategic cooperation framework agreement (the "Agreement") with the Zhejiang Medical Insurance Bureau (the "MIB") in June 2019. By entering into the Agreement, the Company joins the first batch of third-party distribution service partners of the government officially undertaking the provincial medical insurance project.  As a designated delivery service agent for the provincial medical insurance project, the Company expects to improve its negotiation position for drug procurement, expand its retail pharmacy coverage, and highlight its corporate brand and influence, providing a strong foundation for the rapid expansion of the Company's franchising operations.

In 2019, the State Council's government work report and the provincial government's medical insurance policy added 12 common chronic diseases such as hypertension and diabetes into the scope of covered diseases and allows urban and rural residents to purchase prescribed drugs for these diseases at pharmacies. This policy requires cooperation between the government and private enterprises and enables medical chain pharmacies to comprehensively establish and operate third-party delivery service mechanisms for drugs. Pursuant to the Agreement, both parties agree to fully cover insured residents in Zhejiang province, ensure a stable supply of medications and prompt drug delivery. The MIB agrees to authorize the Company to operate as a third-party distribution service partner to undertake the provincial medical insurance project and assist the Company in solving problems in distribution services to create an improved business environment. The Company agrees to ensure its stores can cover every county and city in the province, regularly publish a list of commonly used drugs for chronic diseases and a list of delivery service stores to the public, and strictly implement the relevant systems for drug and prescription management in the healthcare sector. As part of the Agreement, the Company agrees to sell medical insurance-related chronic disease drugs which are on the provincial medicine procurement platform, execute the same payment standards as public hospitals and not all the drugs purchased from the provincial medicine procurement platform to enter other sales channels.

Mr. Wei Hu, Chief Operating Officer of Jo-Jo Drugstores, Inc., commented, "Currently, of the 1,304 urban and rural residents' medical insurance chronic disease drug distribution service stores, we occupy 237, covering 89 counties and cities in Zhejiang province, providing 195 chronic disease medicines. These facilities essentially cover the drug distribution needs of chronic patients and we are continuously working to improve access for the medicinal treatment for chronic disease medicines for urban and rural residents."

Mr. Hu continued, "In addition to the traditional selling methods in our retail stores, we have four additional sales channels: online booking, O2O booking, B2C booking, and shop booking. By synchronizing with Meituan, Jingdong, Hungry, Ali Health, micro-Mall and cooperating with five other platforms, we can deliver drugs in half an hour for customers within 4 kilometers, and achieve distribution volumes similar to the top chains in Hangzhou. We expect to open a 24-hour unmanned smart drug store in Hangzhou to meet customers' needs."

HANGZHOU, China, April 22, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (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 transformingeffect 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.

HANGZHOU, China, April 11, 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, today announced that it has entered into definitive agreements with several institutional investors providing for the issuance of 4,000,008 shares of common stock, at a purchase price of $2.50 per share, in a registered direct offering for aggregate gross proceeds of approximately $10.0 million. Jo-Jo Drugstores also agreed to issue to the investors unregistered warrants to purchase up to 3,000,006 shares of common stock. The closing of the sale of the securities is expected to take place on or about April 15, 2019, subject to satisfaction of customary closing conditions.

HANGZHOU, China, March 4, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (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, released a letter to shareholders from the Chairman of the Company's board of directors today.

Dear Shareholders,

The year of 2018 was an extraordinary year for Jo-Jo Drugstores as we positioned ourselves as the most reliable pharmaceutical company in Hangzhou, China. As the sole Chinese pharmaceutical retail company listed on the NASDAQ in the U.S., Jo-Jo Drugstores, through 15 years of continuous research and development, has developed a solid foundation in the pharmaceutical supply chain, franchising, medical and technology industries. We customized a strategic development plan, as we disclosed in a press release dated December 31, 2018 and adjusted our organizational structure, including the addition of a new executive officer, Mr. Wei Hu, as Chief Operating Officer in 2018, to diligently prepare for our further development in 2019.

The Market Challenges and Opportunities

The year of 2018 was a challenging year for the Chinese pharmaceutical industry. The slowdown in economic growth, the expanded supervision for medical insurance as well as the increase in labor costs have put tremendous pressure on the development of the pharmaceutical industry. Particularly, with the implementation of drug procurement regulations and drug price limits, the decline in the profit margin for drugs sales has become an inevitable trend. According to the national pharmaceutical industry analysis agency, the overall size of the national pharmaceutical retail market in 2018 reached RMB384.2 billion, representing a 4.85% increase, which is the lowest increase in the past 20 years. The year of 2018 also marked the first time that the growth rate of pharmacy retail sales has not surpassed the national GDP growth rate.

However, opportunities are often generated in a complicated situation. The health industry is still very popular among investors. With the integration of resources, the upgrading of technology, the implementation of effective cost controls, the innovation of models and the advantages of a high-quality talent pool, many well-known companies and leaders in the capital markets are looking for investments in the development of medicine and health.

Our Observations on the Market Dynamics

There are fascinating changes and dynamics taking place behind the scenes in this rapidly developing market in China.

Firstly, the influence of the new medical reforms can be seen in the squeezed profit margins of medicines, the changing structure of the healthcare space, and the continued increased usage of medical technology. This is in line with the people's demand for rational diagnosis and treatment using rational medicine.

Secondly, the pressure of the national health insurance regulations requires medical institutions to use medical insurance funds in an effective and reasonable manner in order to curtail overtreatment and misallocation in pharmaceutical and medical services in China. As a supplement to basic medical insurance, commercial insurance has played an increasingly important role. Medical reform has continued to progress, and medical insurance, medicines, and medical care are the core fields of the reform.

Thirdly, although the decline in the profit margin of pharmaceutical retail is an inevitable trend, the public's demand for medical and health services is growing and the current medical services are unable to meet the needs of the market.

Our Strategies and Objectives

Implementing the Medical + Medicine Business model

This strategy was proposed by the Company at its inception and has proven to be effective. The Company will continue focusing on providing quality medical services and helping people become healthier in addition to the medicine retails.

Medical Linkage & Technology Empowerment

Upgrading and Renovation of Pharmacies: We have initially deployed two new major system platforms for chronic disease management and Internet hospital services. Through the connections we have generated with major hospitals in provinces and cities, customers can get access to professional medical services, health management and proper guidance regarding their medication from our drug stores and can easily connect to top hospitals. The software upgrade for several of our major pharmacies is driven primarily by our efforts to increase professionalism and service quality.

In 2019, we plan to provide customers with accurate medication guidance under the principle of reasonable diagnosis and treatment as we focus on the needs of customers, implement a training and evaluation program for professional promotion and set up courses for employees for the consultation and sales of medicines. We will continue to improve our stores' images, merchandise displays, environmental and sanitation conditions, service etiquette, member management, and other services. Through normalized inspection training and randomized inspections by our internal management team, we are striving to standardize our stores' services.

In addition, we aim to keep our costs under control through managing the procurement, distribution, warehousing, and sales of drugs, eliminating waste in all links, improving management, logistics and distribution efficiency as well as optimizing inventory.

Talent Introduction & Hospital Cooperation

In 2019, Jo-Jo Drugstores expects to have four comprehensive outpatient departments in stores and ten clinics. The Company's future development relies highly on our talent and technical advantages. In addition to employing talented healthcare providers, the Company has launched a comprehensive cooperation initiative with the most renowned hospitals in China.

Currently, we intend to cooperate with three prestigious hospitals which are specialized in ophthalmology and obstetrics and gynecology (OB-GYN) to explore market opportunities and improve the Company's brand awareness.

Commercial Insurance Cooperation

Jo-Jo Drugstores has taken an important step in cooperating with commercial insurance providers to explore the provision of high-quality health management services that are fully compliant with the applicable regulations and reasonably priced. At present, as a result of this new venture with these providers, coverage is available in Beijing, Shanghai and Zhejiang. By introducing the most professional health management service packages which pair top doctors from major hospitals in the area and commercial insurance providers and by using high-quality resources in the medical field to provide quality medical services, we are committed to becoming a pioneer and a benchmark for medical and health service provider covered by commercial health insurance in China. The development of pharmacy benefit managers in foreign countries shows that the efficiency of business model development is inseparable from technological innovation. We aim to be a pioneer in the business information technology platform for medicine sales and medical treatment space and we will continue to optimize platform functions and enhance its core competitiveness while facing new business models.

We firmly believe that Jo-Jo Drugstores has stayed abreast of the trends in quality medical services and has launched a solid strategy in advance of 2019.  The coming year is full of challenges and opportunities and we are confident that we have built a solid foundation for Jo-Jo Drugstores' business development to take off.

On behalf of China Jo-Jo Drugstores, I would like to express my sincere gratitude to our customers and partners for your trust in us, to the shareholders for your continuous support, and to the board members, management team and staff for your commitment in the past year.

Mr. Lei Liu
Chairman and Chief Executive Officer
China Jo-Jo Drugstores, Inc.

Third Quarter 2019 Financial Results

• 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.
• 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.
  

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." 

Second Quarter 2019 Financial Results

• Revenue increased by 16.7% to $27.41 million for the three months ended September 30, 2018 from $23.49 million for the same period of last year.
• Net loss was $1.60 million, or $0.06 per basic and diluted share for the three months ended September 30, 2018, compared to $1.17 million, or $0.05 per basic and diluted share for the same period of last year.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, commented, "We are pleased to report our financial results for the second quarter of our 2019 fiscal year. Our revenue grew 16.7% compared to the same period of the previous year as we continued to grow our retail drugstore and wholesale businesses. In the coming quarters we are excited to attempt to improve our online offerings, improve online/offline integration and continue to refine our customer experience with more medical care services. Our recent proactive steps to achieve these aims include the addition of Mr. Wei Hu to our management team as Chief Operating Officer, a veteran of the healthcare industry and strong executor, as we attempt to differentiate ourselves in the new retail pharmacy landscape." 

First Quarter 2019 Financial Results

• Revenue increased by 5.1% to $22.77 million for the three months ended June 30, 2018 from $21.67 million for the same period of last year.
• Net loss attributable to Jo-Jo Drugstores decreased by 54.5% to $0.65 million, or $0.02 per basic and diluted share, for the three months ended June 30, 2018 from $1.42 million, or $0.06 per basic and diluted share, for the same period of last year.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, Inc., commented, "We continue to emphasize our retail strategy as we report our first quarter results for fiscal year 2019. Our gross margin for retail drug stores for the first quarter was 30.1%, up from 25.2% from the same period last year, as we emphasized increasing profit margins, introducing new suppliers, and renegotiating prices with our suppliers in our adjustments to corporate operational strategy. This margin expansion was coupled with a healthy 22.6% increase in revenue from retail drugstores year over year as we continue to execute on our strategy to capture the high-income Hangzhou urban center market. We are pleased with these strong results to start the new fiscal year as we continue to improve our business fundamentals and grow our market share in the expanding healthcare market." 

Third Quarter 2018 Financial Results

• Revenues increased by 30.1% to $26.81 million for the three months ended December 31, 2017 from $20.61 million for the same period of last year, mainly due to the increase in retail drugstores and wholesale business, partially offset by the decrease in online pharmacy business.
• Net loss attributable to Jo-Jo Drugstores increased by 94.8% to $1.63 million, or $0.07 per basic and diluted share, for the three months ended December 31, 2017 from $0.83 million, or $0.04 per basic and diluted share, for the same period of last year.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, Inc., commented, "We are pleased to announce our strong retail sales growth in our most recent financial results. We will continue to pursue retail drugstore growth in Hangzhou as we continue to build strong relationships with our customers, suppliers, and other business partners in one of the highest income urban centers in China. We also remain optimistic regarding our ongoing transformation of our e-commerce business following the industry-wide suspension of OTC drug sales on e-commerce platforms in fiscal year 2017, as our efforts in reorganizing our product line shows further improvements."  

Mr. Liu continued, "In the coming months we are strategically positioned to take advantage of the improving business environment in Hangzhou as the healthcare market continues to grow."

Second Quarter 2018 Financial Results

• Revenue increased by 10.0% year-over-year to $23.5 million
• GAAP net loss was $1.2 million or $0.05 per diluted share compared to net income of $97,870 or $0.01 per diluted share a year ago

China Jo-Jo's Chairman and CEO, Mr. Liu Lei commented, "We are pleased to have achieved the milestone of operating more than 100 retail pharmacies in Hangzhou, and we are further consolidating our competitive position as the leading pharmacy in one of the highest income urban centers in China. As we expand our pharmacy network, our retail sales growth starts to gain traction. We also believe that the most challenging period is behind us for our online pharmacy, as our efforts in optimizing our product range has stabilized results. We look forward to building on improving business fundamentals to capture further market share in the growing healthcare markets in the Hangzhou region."

HANGZHOU, China, Nov. 1, 2017 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) (The "Company" or "China Jo-Jo") has opened three stores in the city of Hangzhou. The Company plans to achieve its milestone of operating over 100 retail drugstores in Hangzhou in the near future.

"We are pleased to expand our retail presence in Chengnan, Dingqiao, and Xiasha districts of Hangzhou," said Liu Lei, Chairman and CEO of the Company. "Our mission is to make pharmacy solutions effective and accessible for our customers, so we look forward to providing high-quality and convenient purchase options to more customers in Hangzhou."

China Jo-Jo's new stores feature all of the products and services for which thousands of customers across Hangzhou visit its stores every day, including:

A full service pharmacy staffed by licensed pharmacists and pharmacy staff
Prescription and OTC medicines, Traditional Chinese Medicines, dietary supplements, medical devices
Health and beauty products including many popular brands
General merchandise
The China Jo-Jo Rewards Program, which offers exclusive discounts and enhance customer experience
The new store in Dingqiao District accepts Hangzhou municipal health insurance
The three new China Jo-Jo stores are located at:

No. 363-4 Zhongshan South Road, Chengnan District
No.79-3 Xiangjisi Road, Dingqiao District
No.147-1 Gaosha Road, Xiasha District

First Quarter 2018 Financial Results

• Revenue increased to $21.7 million from $20.9 million a year ago.
• GAAP net loss was $1.4 million or $0.06 per diluted share compared to net income of $131,153 or $0.01 per diluted share a year ago.

China Jo-Jo's Chairman and CEO, Mr. Liu Lei commented, "We continued to expand our retail pharmacies footprint as we believe this is the right strategy to benefit from the ongoing medical reform in China diverting drug sales from public hospitals to other retail outlets. We grew our retail drugstores to 71 during the quarter and stabilized our retail drugstores sales through promotional campaigns and direct-to-patient opportunities. We continued to seek alternative referral arrangement with providers of Pharmacy Benefit Management ("PBM") and implement strategies to increase our online pharmacy sales."

Fourth Quarter 2017 Financial Results

• Revenue for the fourth quarter ended March 31, 2017 was $19,792,271, as compared to $20,468,616 for the same period of last year.
• Earnings per share ("EPS") was approximately ($0.25), as compared to EPS of $0.05 for the same period of last year.

The Chairman and CEO of China Jo-Jo Drugstores, Mr. Liu Lei, commented, "Despite a decline in our online pharmacy sales, we managed to not only have increased revenue in our other business segments - retail drugstore sales and wholesale sales - but also have increased our overall gross margin. Through increasing medical service prices at public hospitals and demanding a lower percentage of revenue from drug sales at hospital, China medical reform continues to push drug sales from public hospitals to other retail outlets such as retail pharmacies. As public hospitals in China dominate the retail sale of prescription drugs that was estimated to have annual gross sales volume over US $150 billion (one trillion RMB) in 2016, we anticipate that drugstores will continue to benefit from the reform. Additionally, we are implementing strategies to increase our online pharmacy sales, including increasing online drug and health products sales referred by large commercial health insurance providers."

"I am pleased to report that we now have a record number of retail pharmacies, which stood at 67 as of March 31, 2017. Our growth strategy includes opening and acquiring additional retail stores (chain) in fiscal year 2018 and employing tactics to grow our online pharmacy sales to help us continue to expand our market share and remain a leading player in the physical retail and e-commerce pharmacy businesses in China," Mr. Liu concluded.

Third Quarter 2017 Financial Results

• Revenue was $20.6 million compared to $24.7 million a year ago.
• GAAP net loss was $834,806 or $0.04 per diluted share compared to net loss of $617,529 or $0.04 per diluted share a year ago.

China Jo-Jo's Chairman and CEO, Mr. Liu Lei commented, "Our retail drugstores' sales started to recover during the quarter as we grew both retail sales and margins year-over-year. We optimized our drugstores' product mix leading up to the Chinese New Year Holiday and met customer demand for popular nutritional supplements products. We also continue to improve our chronic disease management program, which has attracted many loyal customers who refill their prescriptions and purchase supplemental products at our stores. We look forward to expanding our proven retail pharmacy model in Hangzhou in the New Year and bringing innovative wellness options and expanded access to care to more pharmacy customers."

Second Quarter 2017 Financial Results

• Revenue was $20.2 million compared to $22.6 million a year ago;
• Adjusted net income was $746,504 or $0.04 per diluted share compared to adjusted net income of $34,689 or $0.00 per diluted share a year ago.

Mr. Lei Liu, China Jo-Jo's Chairman and CEO, commented, "Our gross margin continued to expand, benefiting from more vendor rebates attributable to our focused marketing efforts in promoting brand-name pharmaceutical products, as we believe selling these products enhances our store popularity and customer loyalty. During the quarter, we achieved sales volume with certain brand pharmaceutical suppliers and received substantial rebates. In addition, now that the G20 summit is behind us, we have normalized our marketing activities and expect a rebound in retail sales in the third quarter."

First Quarter 2017 Financial Results

• Revenue was $20.9 million compared to $21.3 million a year ago
• Adjusted net income was $754,000 or $0.04 per diluted share compared to adjusted net income of $277,481 or $0.02 per diluted share a year ago

China Jo-Jo's Chairman and CEO, Mr. Liu Lei commented, "Our results in the first quarter were temporarily impacted by lower pharmacy traffic due to preparation for the G20 summit in Hangzhou, and the unexpected disruption in the Yikatong referral business. We are proactively seeking referral arrangement with alternative providers of Pharmacy Benefit Management. We remain focused on increasing our gross margin and expanding the online and offline integration of our wellness offerings."

HANGZHOU, China, Aug. 8, 2016 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), announced that it plans to expand the number of its retail pharmacies to 100 over the next twelve months. These additional retail pharmacies will be located in Hangzhou, and will be a mixture of new stores and rebranded ones.

"We are excited to expand our retail pharmacy network in Hangzhou," said Mr. Liu Lei, Chairman and CEO for China Jo-Jo. "Our proven retail pharmacy model has expanded to include premium value added services such as virtual doctor clinic services, in-store prescription dispensary services and chronic disease management programs. We look forward to bringing innovative wellness options and expanded access to care to more pharmacy customers."

China Jo-Jo operated 62 retail pharmacies as of July 26, 2016. With the addition of new and rebranded pharmacies, the Company will consolidate its retail pharmacy leadership in Hangzhou, which has a trillion yuan local economy and one of the highest spending urban consumers in China.

"According to China Association of Pharmaceutical Commerce, sales in retail pharmacy grew 8.6% year-over-year to reach 332.3 billion yuan in 2015. We are capitalizing on the growth momentum of the industry to expand our sales channel and build a larger store network for our integrated online and offline pharmacy business model," added Mr. Liu.

Fourth Quarter 2016 Financial Results

• Revenue was $20,468,616 for the fourth quarter ended March 31, 2016 as compared to $20,982,649 during the same period of last year
• Earnings per share (EPS) was $0.05/share, as compared to EPS of $0.03/share for the same quarter of last year

Chairman and CEO of China Jo-Jo, Mr. Liu Lei commented, "We achieved solid results in fiscal year 2016. We consolidated the operations of our retail drugstores and implemented key initiatives such as increasing product adaptability, providing access to mobile payments, and launching in-pharmacy virtual doctor clinics to drive sales and provide value-added services to our customers. We maintained profitability while migrating our product mix to higher margined pharmaceutical and health and wellness products. At the same time, our expansion in the fast-growing online pharmacy markets in China continues to outpace the industry. Our online pharmacy sales continued to grow rapidly through both third-party e-commerce platforms and our own online pharmacy website."

"Moving forward, our efforts will continue to focus on opening or acquiring more stores, creating deeper relationships with our customers, holding regional dominant market share in retail pharmacy, while taking a data-driven approach in identifying popular products and enhancing our abilities to promote online sales. We believe we have the right strategy for succeeding as a leading online and physical retail chain pharmacy stores in China."

HANGZHOU, China, March 10, 2016 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based pharmacy with retail, wholesale and online distribution of pharmaceutical and health care products through its own online and retail pharmacies, released an Open Letter to Shareholders from its Chairman and CEO, Mr. Lei Liu, updating current activities and outlining its corporate strategy for 2016, as follows:

Dear Fellow Shareholders:

As we move fully into the 2016 calendar year, I thought it would be appropriate to bring our shareholders at large up to speed on the Company's operational highlights, progress and future goals. Since our launch China Jo-Jo has grown to become one of China's strongest regional chain pharmacy brands. We are an early adopter and pioneer of the Western large chain pharmacy model in China, which combines convenience store shopping and access to pharmacy dispensary services within the same space.

Today, our large chain drugstore model has expanded to include premium value added services such as access to doctors who are trained in traditional Chinese medicine and Western medicine, and holistic spa treatments. In parallel to developing our physical retail pharmacy presence, the last several years has been dedicated to the rapid development of our online sales presence. As an early mover, and pioneer in adopting online pharmacy sales in China, we remain wholly committed to the development of this new sales channel in China. Following China's legalization of online pharmaceutical sales, growth in this industry has been exponential and embraced by consumers looking for convenient access to pharmacy dispensary services and online shopping for health and wellness products. Admittedly China Jo-Jo has sacrificed potential gains and regional expansion of its physical store fronts in our effort to increase allocation of resources and investments into the development of the Company's mobile and e-commerce platform. As of recent, we have been fortunate enough to bolster our IT development through the strategic hiring of senior level technologists from Alibaba as our own online pharmaceutical sales continue to grow annually at a rate of over 100% since launch.

Our simple goal is to become one of the leading online and physical retail chain pharmacy stores in China. Looking at our most recent performance, the Company's third quarter fiscal 2016 online sales from our own website reached $ 8.8 million, or roughly 55 million yuan, up more than 400% year over year. We were pleased to report that for the first time store sales growth from China Jo-Jo's own branded storefront exceeded sales from our third party platform sites. We believe this step change in sales growth was prompted by management's differentiated sales model, in addition to gaining customers through commercial health insurance participation where customers in this category have higher rates of repeat business in addition to higher levels of spend in comparison to other categories of online customers. In many cases due to commercial health insurance participation, we have successfully retained satisfied customers who benefit from utilizing their commercial health insurance dollars to shop in our online pharmacy.

Moving beyond these initial efforts to foster growth in infrastructure and the development of the online pharmaceutical space, we look to further enhance the ability to sell products online. As of current, we have introduced additional IT development staff and in the past two years have invested nearly $ 1.6 million or roughly 10 million yuan for the recruitment of key technical personnel, optimizing our system for mobile shopping and sales, pc app development. We also continue to build relationships with commercial health insurance providers and pharmacy benefits management providers that will build up our e-commerce sites customer base which now consists of over 3 million customers, 70% of which are mobile users.

Despite macro-economic pressures affecting the capital markets, our vision for the Company's future remains upbeat. We continue to seek avenues that best serve our existing customers while gaining users on our platform from an operational perspective. As a publicly listed Company we believe that these efforts in building the businesses critical mass is paramount to creating shareholder value. Based on market conditions and if the opportunity arises we will seek other ways to create shareholder value and would be open to purchase our own stock on the open market as a demonstration of our belief in our mission.

Moving forward our efforts are focused on building market leadership, creating deeper relationships with our customers, remain supportive of building sustaining regional growth in wealthy areas around coastal China, while supporting the government's e-commerce initiatives for the pharmaceutical space; including the efforts to create greater access to pharmacy services in more rural parts of China. Fiscally it is our goal to remain profitable while continuing to build critical mass and cost efficiency that positively impact our margins and bottom line.

Our goal over the next 10 years, is to grow to a base of over 50 million customers. We believe we will do this by continuing to develop our e-commerce strategy, in addition to partnering with network hospital, pharmacy benefit providers and commercial health insurance providers. We will continue to provide operational and financial updates as we continue this exciting journey to build the strongest retail and online pharmacy brand that we possibly can in China.

HANGZHOU, China, Feb. 18, 2016 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based pharmacy with retail, wholesale and online distribution of pharmaceutical and health care products, today announced sequential Q3 Alipay mobile transactions grew 84% while sequential traditional payment transactions such as City Health Insurance payment transactions grew 27% respectively versus Q2 of this fiscal 2016 year.

According to research firm Analysys as of 2016: Alipay, an affiliate of Alibaba Group and WeChat Payment by Tencent Holdings, currently dominate mobile payment in China with 45% and 19% of the market respectively. Integrating these mobile payment platforms is an important growth initiative for China Jo-Jo as consumers in China, especially the young and growing middle-class, have been keen to actively adopt mobile payment as the method of choice for their integrated mobile and physical retail store shopping experience. Providing customers this convenient and familiar mobile payment platform is helping to drive overall transaction growth in both our retail and online pharmacies.

Since launching Alipay's mobile payment service in November 2014, China Jo-Jo has been initiating novel marketing campaigns including in-store sales and bonus promotions in order to attract and customers while promoting premium branded products. Payment transactions and marketing initiatives under WeChat Payment which launched in July 2015 have also been successful in growing China Jo-Jo's customer base and overall transactions.

Mr. Lei Liu, Chairman and CEO commented, "Mobile payment platforms have had immense success in China providing consumers with a fast, secure and novel means of paying for both online and offline pharmacy goods and services that is becoming a defector standard method for paying for goods and services in China. Mobile payment platforms now account for more and more of China Jo-Jo's online payment transactions and is playing an integral role in the push to drive adoption of China Jo-Jo's business model."

Third Quarter 2016 Financial Results

• Revenues roughly totaled $24.7 million up 15.9%
• Non-GAAP* net loss of $0.38 million or ($0.02) per fully diluted share, compared with Non-GAAP net income of $0.65 million or $0.04 per fully diluted share in the prior year.

Management Comments

Mr. Lei Liu, Chairman and CEO commented, "We are pleased with China Jo-Jo's sales growth both in online and retail pharmacy sales.  \We are seeing improvements in gross margin from increased volume in our online business as our revenue mix continues to shift to our fast growing online business. From a sequential perspective we are expecting a strong quarter to end the fiscal year, as efforts to monetize the growth opportunity in China's online pharmacy space continues. Our focus on exploring customers' needs in both offline and online platforms will help in maximizing the ways for which we leverage our cost basis across the businesses.

Mr. Liu continued, "While the Company implements operating strategies in line with China's secular consumer growth trends, China Jo-Jo draws closer to the tipping point for continuous GAAP operating profitability, and a fiscal run rate of over $100 million in annual organic revenues. The investments and efforts in building critical mass to service China's consumer needs in the pharmacy space is taking shape, creating new opportunities to diversify our revenue base while drawing on and retaining new customers. Closer collaborations with several large local pharmaceutical vendors are also providing cost advantages while enhancing China Jo-Jo's brand reputation through the selling of trusted, premium branded products.

"Synergies found in our ecosystem, are providing compelling solutions in answer to China's relentless call for healthcare reform including: ending hospital domination in prescription sales, broader access to pharmacy products and healthcare services including access to supplemental insurance benefits that cover social insurance shortfalls.  On the consumer side, China Jo-Jo is utilizing its e-service platforms to drive segment revenue while promoting increased foot traffic to retail locations across Zhejiang province in a concerted effort to enhance same store sales. The end result is a steady expansion in gross profit from our retail drugstores and a step change in gross profit from our online pharmacy segment due to the Company's strategic initiatives to grow e-pharmacy. China Jo-Jo's customer loyalty program continues to expand and has grown to more than 2 million customers, as we seek innovative ways to provide pharmacy products and services that positively affect China Jo-Jo's bottom line," concluded Mr. Liu.

• Revenues roughly totaled $22.6 million up 22.4%, consisting of segmental revenue:
• Net income of $0.15 million or $0.01 per fully diluted share, compared with net loss of ($0.04) million or ($0.00) per fully diluted share in the year ago period.

"We are pleased with China's Jo-Jo's mid-year progress as the Company continues to focus its efforts in growing the online pharmacy division which experienced triple-digit growth in the period. In large part, due to strategic cooperation with large insurance companies and fast-growing private healthcare insurance programs,our online pharmacy sales have expanded quickly in this quarter. The consumer demand for expanded online pharmacy services continues to play an integral role in the rebalancing of the Company's revenue mix while providing the opportunity to enhance organic sales growth at our physical chain drugstores," said Mr. Lei Liu, Chairman and CEO of China Jo-Jo. 

"China Jo-Jo continues to explore new sales and marketing channels to grow its consumer base including establishing programs to promote "mobile app" shopping with major vendors. The Company also continues to optimize its product mix across its online storefronts and physical stores.  As noted in our last press release, the recent regulation passed by Chinese Congress is aimed at accelerating growth in established pharmacy chains such as China Jo-Jo and will be beneficial to us for the next several years", concluded Mr. Liu.

HANGZHOU, China, October 27, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based pharmacy with retail, wholesale and online distributor of pharmaceutical and health care products through its own online and retail pharmacies, announced healthcare reforms intended to consolidate, modernize and accelerate chain pharmacy growth in China.

A mandate of China's health insurance program requires pharmacies to have government reimbursement licensure in order to process authorized prescription reimbursements. This component of China's health insurance program has become a critical and growing revenue source for established pharmacies, especially in cities. In the 3^rd calendar quarter of 2015, the Chinese Government decided to accelerate growth in domestic chain pharmacies for those participants who have historically demonstrated adherence to high standards of excellence. As such, rules governing the inspection and qualifications process of newly acquired chain drugstore locations were rescinded. The rationale was that the inspection process formerly placed undue burden on chain drugstores in order to requalify newly acquired storefronts for pharmacy certification. The former recertification process would shutter a newly acquired but operational pharmacy for more than a year, depending on the store location, while waiting for new licensure.

A new proposal has been approved intended to reward large chain drugstore operators who can standardize and accelerate the development of the pharmacy market in China into a mature model that is best able to service the growing demands of consumers both in retail stores and online storefront formats. The new mode of doing business starting in 2016 is expected to promote industry consolidation meant to inhibit unauthorized sale and production of counterfeit or mislabeled products while promoting and accelerating chain pharmacy growth for those businesses who can adhere to strict quality standards. The new model allows for chain drugstores to enter into contractual agreements with the State Council, allowing for quicker startup times of newly acquired storefronts. In exchange for this accelerated process, chain drugstores will have to transform the operations of new storefronts into modern, standardized operations promising to adhere to the highest standards of safety and regulatory oversight subject to periodic inspections by the PRC.

Mr. Liu Lei, CEO of China Jo-Jo commented, "China Jo-Jo is in full support of these healthcare reforms in China as it allows for chain drugstores such as ours to have an immediate return on invested capital. With a dual prong approach; selling pharmaceutical and healthcare products both online and in retail storefronts, we believe the new legislation will allow China Jo-Jo to become an industry consolidator in-line with strong secular trends and government policy promoting growth in our industry."

HANGZHOU, China, October 13, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail, wholesale and online distributor of pharmaceutical and health care products through its own online and retail pharmacies, announced preliminary half year fiscal 2016 sales estimates for the Company's official branded online pharmacy through www.dada360.com, growing 438% year over year, consolidated gross profit margin was a record 25%.

China Jo-Jo's online sales are principally driven by four categories of products including: medical devices, OTC drugs, toiletries and nutritional supplements through the presence of 6 e-pharmacy platforms online, including the Company's official branded website and marketplaces in Alibaba and JD.com. The Company is at the forefront of supply chain management and B2C sales in the fast growing online pharmacy space in China. The Company's online pharmacy sales for the last four years has been led by Jo-Jo's flagship store through Alibaba's marketplace, however for the month of September, 2015, sales from China Jo-Jo's own B2C website surpassed sales from the flagship store, which is indicative of the great demand for online pharmacy services in China. Additionally, sales from China Jo-Jo's branded e-pharmacy storefront in Alibaba's marketplace, increased by 130% in the first half of fiscal 2016.

Currently, sales from China Jo-Jo's e-commerce platforms represent 30% of the overall sales from its physical retail stores, which increased by 10% as compared to last year; achieving expected internal sales targets for fiscal year 2016 to date. Primary reasons for the rapid growth in China Jo-Jo's e-pharmacy business are the unmet demand for competitively priced shopping alternatives for which the Company carries roughly 8,000 products across its retail and online businesses. For the half year period, a major contributing factor to adoption of online sales is the web traffic driven to our B2C sites from "private insurance card" member holders. Private insurance cards are a fast growing segment of the Company's business whereby member incentives for card holders include discounts, promotions and prescription reimbursements from large private insurance carriers in China. The number of qualified customers utilizing commercially available private insurance cards in this period was up 20% to roughly 220,000 participants while the variety of products available online increased 50% year over year.

China Jo-Jo believes that a main driver of its business, in particular, its e-pharmacy business is the rapid expansion of private health insurance and reform in China. Private commercial health insurance in China now accounts for less than 5% of all of the market for which the Chinese government is encouraging to grow. The Company continues to tap into this growing market through agreements that allow for exclusivity or preferred provider of pharmacy benefits which are ultimately driving transactions to the Company's official online pharmacy pages as well as retail stores.

Mr. Qi Li, president of China Jo-Jo commented, "2015 has ushered in a new era in China and the launch of nascent but rapidly growing online pharmacy industry. We expect continued success as the industry matures, creating an evolved ecosystem to service the needs of our customers for many years to come."

Currently, China continues to develop the online pharmacy industry and the class of products which can be sold is evolving in accordance with the government's ability to oversee the industry. China's Food and Drug Administration and Social Security Bureau is studying and formulating rules that will allow the industry to flourish while ensuring the safety of medicine in China. As of recent, the Chinese Ministry of Commerce has encouraged pharmacies to move forward with online to offline, "O2O", sales in order to meet the growing demands and ability to efficiently distribute pharmaceutical products to consumers. O2O services encourages consumers to search and pay for products online that are available for pickup "offline" locally.

• Total Revenue increased 29.5% to $21.3 million for the first quarter ended June 30, 2015 as compared to $16.5 million during the same period last year

• Net income increased by $458,048 to $110,611 during the three months ended June 30, 2015, improving from a net loss of $347,437 in the same period last year

Mr. Lei Liu, Chairman and CEO of the Company stated, "We are excited to see a steady growth on our online and retail sales from last year. Revenue of our online pharmacy, www.dada360.com, is about five times the revenue of the same periodlast year thanks to our strategic partnership with China's leading Pharmacy Benefit Management (PBM) provider and insurance companies. We are dedicated to further expand our efforts on our online pharmacy, which proves to be a popular business area supported by National Internet Plus Strategy in China. We will continue to devote resources to grow our online pharmacy business with the goal of becoming a national leader in pharmaceutical e-commerce business. Our retail pharmacies have also maintained robust growth both in sales and profitability. The management will strive to capitalize on the growth of health insurance and online sales in China."

HANGZHOU, China, July 24, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, today announced that it closed a registered direct placement with a single health-care focused institutional investor for the purchase of an aggregate of $3 million of its common stock at a price of $2.50 per share on July 23, 2015. The Company issued a total of 1,200,000 shares of its common stock to the investor. As part of the transaction, the Company also issued to the investor warrants for the purchase of up to 600,000 shares of common stock at an exercise price of $3.10 per share, which warrants shall be initially exercisable six months following issuance and expire five years from the date on which they are initially exercisable.

The Company received net proceeds from the offering in the amount of approximately $2.7 million, after deducting the placement agency fees and the estimated offering expenses payable by the Company.

CHINA JO-JO DRUGSTORES, INC.

1,200,000 Shares of Common Stock

and

Warrants to purchase up to 600,000 Shares of Common Stock

Pursuant to this prospectus supplement and the accompanying prospectus, we are offering directly to select accredited investors 1,200,000 shares of our common stock (the “Shares”) together with warrants to purchase up to an aggregate of 600,000 shares of common stock at an exercise price of $3.10 per share (the “Warrants”). The Warrants are initially exercisable six months following the date of issuance and are exercisable by the holders at any time during the five-year period following the date on which they are initially exercisable. In connection with this offering, we will also issue, as additional compensation, to H.C. Wainwright & Co., LLC, our exclusive placement agent, placement agent warrants to purchase up to 6% of the Shares placed in this offering, which warrants shall have substantially the same terms as the Warrants and are also being offered pursuant to this prospectus supplement (the “Placement Agent Warrants”).

The Shares and the Warrants will be sold together as a unit consisting of one Share and a Warrant (to purchase 0.5 shares of our common stock for each Share included in the unit). The purchase price per unit will be $2.50. The Shares and the Warrants will be issued separately but can only be purchased together in this offering. The shares of common stock issuable from time to time pursuant to the exercise of the Warrants and the Placement Agent Warrants are also being offered pursuant to this prospectus supplement and the accompanying prospectus.

Our common stock trades on the NASDAQ Capital Market under the symbol “CJJD.” The last reported sale price of our common stock on the NASDAQ Capital Market on July 17, 2015 was $3.09 per share. There is no established public trading market for the Warrants and we do not expect a market to develop. In addition, we do not intend to apply for listing of the Warrants on any national securities exchange.

As of July 17, 2015, the aggregate market value of our outstanding common stock held by non-affiliates was approximately $25,402,958 based on 15,650,504 shares of outstanding common stock, of which 7,429,482 shares were held by affiliates as of such date, and a price of $3.09 per share, which was the last reported sale price of our common stock as quoted on the NASDAQ Capital Market on July 17, 2015. We have not offered securities pursuant to General Instruction I.B.6 of Form S-3 during the prior 12 calendar month period that ends on, and includes, the date of this prospectus supplement.

Fourth Quarter 2015 Financial Results:

• Revenue increased 30.1% to $20,982,649 for the fourth quarter ended March 31, 2015 as compared to $16,129,575 during the same period last year.
• Q4 earning per share (EPS) increased to $0.03/share from EPS of $(1.01) for the same quarter last year

Revenue increase during FY 2015 was mainly due to the expansion of the Company's retail drugstores and online pharmacy business. Retail drugstores sales, which accounted for approximately 63.5% of total revenue, increased by approximately $8.7 million, of which a 21.2% increase in same-store sales contributed approximately $8.0 million while new stores sales contributed approximately $1.1million.

Online pharmacy sales reached $14,879,397, an increase of 96.8% over the previous year, thanks to a series of online marketing efforts, plus China Jo-Jo expanded their presence on e-commerce platforms, like Taobao, JD.com and Amazon.com. The Company also signed a service agreement with Alipay (China) Internet Technology Ltd. ("Alipay") to incorporate Alipay's online payment service ("Alipay Service") into its online stores. This move gave China Jo-Jo access to Alipay's 300 million registered users. Furthermore, the Company reached an agreement with Shanghai Jianbao Technology Co., Ltd. ("Shanghai Jianbao"), a leader in China's Pharmacy Benefit Management (PBM) sector, to set up a new joint venture that strengthened China Jo-Jo's cooperation with large insurance companies in China.

Mr. Lei Liu, Chairman and CEO of the Company stated, "We are thrilled to close out fiscal year 2015 with a stellar fourth quarter performance. Our official online pharmacy, www.dada360.com, experienced more than 3 times revenue growth year over year thanks to our strategic partnership with China's leading Pharmacy Benefit Management (PBM) provider and insurance companies. After almost two years of company's restructure of which our management has shifted focuses and resources to higher growth and high margin market segment, we believe FY 2015 was a major turning point for China Jo-Jo. We not only achieved probability from last two years' of major losses, but also regained the trust of our loyal customers and shareholders.

"As we accelerate our growth into 2016 and beyond, we believe our e-commerce sales will one day surpass the sales from our traditional offline pharmacy business. By leveraging our online presence, China Jo-Jo aims to become a nationally recognized pharmacy chain and a leading player in the online drugstore marketspace in China."

HANGZHOU, China, May 14, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor that offers pharmaceutical and health care products through its online and retail pharmacies, today announced the Company has launched free Wi-Fi assess in all of its 60 retail pharmacies in Hangzhou. The move intends to strengthen the integration of China Jo-Jo's online and offline businesses and provide location based services to both users and merchants in the future as well as develop online to offline (O2O) business opportunities.

By providing free WI-FI to our in-store customers, they can now easily access the vast product selection on our ecommerce platform byscanning our QR code, and complete new purchases via Alipay, WeChat or other mobile applications. Our pharmacy sales staff will conduct sales and marketing more precisely as they now have access to our internal database through a mobile application to better understand customers' spending behavior and their specific needs for healthcare products and services. The Wi-Fi access also improves the Company's internal operation as it can now manage the shelf space through a mobile terminal, as well as provide real-time sales training and marketing material to our sales force

Ms. Qi Li, President of China Jo-Jo, commented, "Setting up the WI-FI hotspots in stores is not only for the need of collecting useful information about our existing and potential customers, but also a marketing strategy to attract new customers and to provide better customer experience. We expect to bring better personalized healthcare service for the customers through more data collection and analysis."

HANGZHOU, China, April 27, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor that offers pharmaceutical and health care products through its online and retail pharmacies, today announced its subsidiary, Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd. ("Jiuzhou Pharmacy") has signed a new sales incentive agreement with Wyeth Pharmaceutical Company, Ltd. ("Wyeth"), a wholly owned subsidiary in China of Pfizer Inc. (NYSE: PFE) (the "Agreement"). The purpose of the Agreement is to double the sales of Wyeth's Consumer Healthcare products in 2015. Jiuzhou Pharmacy has been partnering with Wyeth since 2003, and today it has become the largest retailer in Zhejiang Province for a variety of Wyeth's Consumer Healthcare products, such as Centrum (multivitamin & mineral supplements) and Caltrate (calcium supplement).

The Agreement illustrated specific approaches and conditions of Jiuzhou Pharmacy's collaboration with Wyeth, including sales targets, promotional incentive to consumers, products and pricing methods. In return, Wyeth will fully support Jiuzhou Pharmacy with priority delivery, favorable purchase prices and promotional activities. Mr. Cai Baoguang, President of Pfizer's Healthcare Division for Greater China Region, has recently visited the Company and finalized the detail in the Agreement.

Qi Li, President of China Jo-Jo, commented, "As we began to set the sales target for the fiscal year 2015, we increased our orders placed on our top 10 suppliers by more than 30%. We are glad to once again working with Wyeth as our trusted supplier because, when selecting suppliers, we valued highly on product qualities, brand recognitions, distribution and consumer feedback. China Jo-Jo is striving to differentiate itself from other drugstores by offering superior products to meet the ever-growing demand of Chinese consumers."

HANGZHOU, China, April 10, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. ("China Jo-Jo", or the "Company") (NASDAQ CM: CJJD), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, today announced that it has engaged BDO China Shu Lun Pan Certificated Public Accountants LLP ("BDO China") as the Company's new independent auditing firm effective on April 7, 2015. The appointment of BDO China was approved by the Company's Audit Committee.

BDO is one of the leading global accounting firms with member firms in over 144 countries. BDO China was founded in 1927 and is one of the earliest and most influential accounting firms in China. BDO China's clients include over 300 listed companies, over 300 IPO companies, and more than 2,000 enterprises with foreign investments. The companies BDO provides services to cover a wide range of sizes and industries including large national enterprises, state-owned companies, commercial banks, securities companies, futures brokerage, insurance, trusts and funds.

With BDO China team's large local presence and its well-established reputation, the Company believes that BDO China is well qualified to become its independent auditing firm. The Company does not believe that the change of auditor will affect the timely filing of its annual report on Form 10-K for the year ending March 31, 2015.

HANGZHOU, China, April 6, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor that offers pharmaceutical and health care products through its online and retail pharmacies, today announced that, based on its preliminary internal estimate, the online sales from its official online pharmacy site,www.dada360.com, increased more than 200% during the latest quarter ending March 31, 2015 as compared to the same period last year.  The total quarterly revenue generated from the Company's own official online pharmacy site has exceeded RMB10,000,000(approximately USD1.6 million).

The main growth engine was the online purchase from customers of certain commercial health insurance providers, such as Shanghai Jianbao Technology Co., Ltd. ("Shanghai Jianbao"), who issued and distributed Yikatong (the "E-Pharmacy-Card"), a popular pharmacy and health insurance benefit card with over 180,000 current users.  As previously announced, the Company established a strategic partnership with Shanghai Jianbao early this year, and the two parties have since carried out close cooperation, including the integration and upgrades of their sales systems, and the development of a mobile App (such as WeChat).  The goal of these devices is to direct the majority of Shanghai Jianbao's online E-Pharmacy-Card transactions to the Company's official website for pharmacy sales. The management expects that its online sales to reach a monthly revenue of RMB 10 million (approximately USD1.6 million) by end of 2015.

Furthermore, China Jo-Jo has recently enforced major changes to its e-commerce site, such as modifying and optimizing product offerings based on its historical sales data, offering competitive prices and providing more technical features and sales supports to the fast growing mobile users. The Company will also launch a new direct sales campaign to all E-Pharmacy-Card holders, by utilizing emails, WeChat, and reward points program.

Mr. Lei Liu, Chairman of the Company, stated, "While we are thrilled to see the recent surge in the sales of our own online pharmacy, mainly driven by E-Pharmacy-Card business, we believe this is just the beginning of a long term trend. Due to the aging Chinese population and the rapidly growing healthcare cost, Chinese government strongly encourages private enterprises and individuals to participate in various commercial insurances and pharmacy benefit plans, in addition to the government sponsored Social Health Insurance (SHI) program. Our E-Pharmacy-Card business is one of the examples of our strategic decision to collaborate with commercial health insurance providers to leverage our online and offline pharmacy network. We hope to report more exciting news and financial performance to our shareholders in the coming months. "

HANGZHOU, China, March 17, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, today announced that the Company, through one of its controlled subsidiaries, Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd. ("Jiuzhou Pharmacy") has reached a joint venture agreement with Shanghai Jianbao Technology Co., Ltd. ("Shanghai Jianbao"), China's leading Pharmacy Benefit Management ("PBM") provider which owns and operates Yikatong (the "E-Pharmacy-Card"), a popular pharmacy and health insurance benefit card with over 180,000 current users to form a joint venture (the "JV").  The joint venture agreement requires Shanghai Jianbao to direct the majority of its online E-Pharmacy-Card  transactions to China Jo-Jo's official online pharmacy site, www.dada360.com, which is expected to significantly improve the Company's online pharmacy revenue and profit margin in 2015.

According to the joint venture agreement, Shanghai Jianbao and Jiuzhou Pharmacy will hold 65% and 35% of the JV respectively. Shanghai Jianbao will be in charge of directing the online sales of Yikatong to China Jo-Jo's e-commerce site, and has committed a minimum monthly sales volume of RMB 10 million (or approximately US$1.6 million) by the end of 2015.  With over 180,000 E-Pharmacy Card users, the total online transaction of E-Pharmacy Card reached about RMB 300 million (or US$48 million) among five network pharmacies including Jiuzhou Pharamcy in 2014. It is expected that Shanghai Jianbao will shift the majority of those online sales volume to China Jo-Jo after the announced partnership.  In return, China Jo-Jo, being one of handful online pharmacy license holders in China, will handle the actual online sales, procurement and delivery of pharmaceutical and health care products to E-Pharmacy Card  users. Both sides agree that the JV will consider applying for a new online pharmacy license after monthly revenue achieves at least RMB 10 million and certain other eligibilities are met.

Mr. Lei Liu, Chairman of the Company, stated, "All future E-Pharmacy-Card businesses will be directed to our own online pharmacy, not via any third-party platform.  This shall greatly enhance customer loyalty as well as our profit margin. It's also a sustainable and recurring business model that is hard for our competitors to imitate. To ensure our goal of online pharmacy sales surpass sales of our retail stores within the next three years, we have to grow China Jo-Jo from a regional drugstore chain into a national online drugstore and fundamentally change our sales and distribution model.  We aim to become one of the first drugstore chains by leveraging PBM model to effectively control the rising health care cost in China."

• Retail drugstores sales increased by $2.16 million, or 19.5% year over year, to approximately $13.3 million, largely due to a 24.3% increases in same-store sales;
• Diluted EPS was $0.01compared to loss per share of $0.64 for the comparable quarter of prior year.

Retail drugstores sales increased 19.5% primarily due to the 24.3% increase in same-store sales in the third quarter of 2015. Our retail drugstores sale growth rate is more than twice of the industry average.  By acquiring Sanhao Pharmacy during the recent quarter, selecting products catering to local community,  and continuing to provide quality in-store service such as doctors' in-store clinics service, we expect to further strengthen our competitive advantage in Hangzhou and Zhejiang Province.

The Company's online pharmacy sales increased dramatically for the three months ended December 31, 2014, more than double the sales as compared to that of the three months ended December 31, 2013.  We have expanded cooperation with business-to-consumer online vendors, including Taobao, JD.com and Amazon.com. In addition, we have signed a service agreement with Alipay (China) Internet Technology Ltd. ("Alipay") to launch an online payment service ("Alipay Service") for its customers, which gives us a great opportunity to get access to Alipay's over 300 million registered users.  We expect online pharmacy sales will continue to grow fast in the future, especially considering the potential authorization of the online sale of prescription drugs in 2015.

Mr. Lei Liu, Chairman and CEO of the Company stated, "We are glad to see that our company delivered a solid performance as we achieved quarterly profitability  as compared to last year's large deficits . What's more exciting is the rapid increase in our e-commerce revenue, which greatly contributed to our total revenue. In the next two to three years, the online pharmacy sales would probably exceed our retail drugstore sales and make the Company one of the leading  online pharmacy stores in China.  Now it's only a turning point. Going forward,  we will continue to focus our efforts on  developing e-commerce opportunities, and drive our physical stores network and sales growth."

HANGZHOU, China, February 10, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, announced that it has entered into a service agreement with Alibaba Health Information Technology Ltd.(HKSE: 0241) ("Alibaba Health") to utilize the electronic prescription platform in preparing for the upcoming authorization from the China Food and Drug Administration (CFDA) on the online sales of prescription drugs in China.

Through Alibaba Health's recently launched mobile app, Alijk, patients are able to upload and send photocopies of doctor's prescriptions to nearby pharmacies so as to check the availability of medicines, compare the prices and eventually make the payments. Those qualified pharmacies partnering with Alibaba Health, such as China Jo-Jo, can then fill the orders via in-store purchase or home delivery service. By combining Alibaba Health's online platform with the Company's offline pharmacy expertise, China Jo-Jo believes this innovative business model will greatly benefit its customers, and open up new growth opportunities.

According to industry statistics, the annual Chinese pharmaceutical sales exceeds one trillion RMB (or $160 billion USD), and 80% of that are from sales of prescription drugs. Until now, the vast majority of prescription drugs are controlled by state-owned hospitals that rely on pharmaceutical sales for profits. With little or no competition, prescription drugs sold by these hospitals are overpriced, and doctors tend to over prescribe. Chinese government, to reform its rigid health care system, is therefore adopting zero percent drug markup policy in hospitals and allowing online sales of prescription medicine. We expect that the official policies for online sales of prescription drugs will be released in 2015.

Ms. Li Qi, Secretary and Director of the Company, stated, 'We are very excited to team up with Alibaba Health to build a new future for ecommerce of pharmaceutical products. Besides assembling a dedicated team to work with Alibaba Health, we have also been actively focusing on procuring more products and building inventories, as well as recruiting qualified physicians and licensed pharmacists. As more and more sales of prescription drugs will be shifted from hospitals to both online and offline drugstores, all of these new initiatives are aim to capture new businesses.'

HANGZHOU, China, January 15, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, announced today that it opened eight new retail pharmacies in Hangzhou on January 10, 2015, a company record for same-day store openings. The Company now owns and operates a total of 61 retail drugstores in China.

The eight added drugstores are among the eleven pharmacies which the Company acquired from Hangzhou Sanhao Grand Pharmacy Chain Co., Ltd. on October 9, 2014. These pharmacies had been remodeled with significant improvement and relocated to better locations, more in line with the Company's business model of carrying thousands of pharmaceutical and healthcare products in each store, and offering better in-store experience to our customers. The new stores have been re-located to be much closer to several major residential areas, thus greatly enhancing the Company's store penetration in Hangzhou. China Jo-Jo's existing network of 61 pharmacies will also serve as potential delivery platforms when the Company unveils its Online-to-Offline (O2O) strategy in 2015.

Four of the new pharmacies are currently qualified to take Social Health Insurance ("SHI"), China's national health insurance plan aimed to provide universal health insurance coverage to Chinese citizens. The other four pharmacies have passed all SHI tests and are expected to be qualified within two or three months.Traditionally, SHI participants, who tend to be our long term customers, account for more than 50% of the Company's retail pharmacy sales.

Mr. Lei Liu, Chairman and CEO of the Company stated, "We are delighted to see the strong launch of our new pharmacies to kick off the New Year. In anticipation of Chinese government's approval for online prescription drug sales in 2015, we are making various strategic moves by focusing on product offerings, and easy accessibility of our online and offline stores."

HANGZHOU, China, January 8, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, announced that it has recently signed a service agreement with Alipay (China) Internet Technology Ltd. ("Alipay") to launch an online payment service ("Alipay Service") for its customers. With over 300 million registered users and over 200 partnering financial institutions, Alipay is China's dominant third-party online payment provider which processes about 50% of China's e-commerce transactions, including mobile payments.

Through Alipay' s popular services such as Alipay and Alipay Wallet, Chinese consumers can now make e-payment for China Jo-Jo's products, in both retail and online pharmacies, through mobile devices such as smartphones. China Jo-Jo will be able to better engage mobile consumers through such features in the Alipay Service Window as push notifications for deals and sales promotions, app download and customer service. In addition, Alipay's enterprise software offers the Company better management tools, including transaction management, big data collection, marketing and financial control.

Mr. Lei Liu, Chairman and CEO of China Jo-Jo, stated, "Our cooperation with Alipay gives us a great opportunity to get access to Alipay's 300 million registered users who, like most Chinese consumers, are seeking more convenient pharmacy shopping experiences. In addition to maintaining our traditional customer base, we hope to attract more young, affluent, and tech-savvy consumers by answering to their needs for pharmaceutical and healthcare products."

HANGZHOU, China, December 4, 2014 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company"), a leading China-based retail and wholesale distributor of pharmaceutical and healthcare products through its own online and retail pharmacies, today announced that its sales reimbursed by health insurance companies grew significantly both online and offline. From January to October 2014, the management estimates the online private insurance reimbursed revenue have reached approximately $1.62 million (RMB10 million), a 260% increase over the same period in 2013; the reimbursed sales of offline retail drugstores have reached approximately $0.89 million (RMB 5.5 million), a 50% increase year over year.

Starting from July 2011, Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd. ("Jiuzhou Pharmacy"), a subsidiary controlled by the Company has signed and renewed annual sales agreements with several major Chinese insurance companies, including China Life Insurance Company (NYSE: LFC) and Ping'an Insurance Group. According to the agreements, these insurance companies pay Jiuzhou Pharmacy for part of their insured customers' purchases of medicine and healthcare products from our online and offline drugstores. The private medical insurance in China is supplemental to China National Medical Insurance, and is usually purchased by large profitable enterprises as benefits for their employees.

Jiuzhou Pharmacy was the first drugstore chain in Zhejiang Province to establish this sales model (also known as "Direct Pay to Claims"), with China Life Insurance Company in 2011. Since then, it has signed agreements with other major insurance providers, and third-party vendors, who make Jiuzhou Pharmacy their designated drugstores and clinics.

Mr. Lei Liu, Chairman of the Company, stated, "The health insurance reimbursement sales were initiated by us in Zhejiang Province and has been contributing to the Company's revenue growth in the past few years. We will continue to develop and expand our sales channel, and strive to bring more benefits to the Company."

HANGZHOU, China, Nov. 20, 2014 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company"), a leading China-based retail and wholesale distributor of pharmaceutical and healthcare products through its own retail and online pharmacies, today announced its online pharmacy posted the largest one-day sales on Singles Day China, or the Black Friday China ("Singles Day"),November 11, 2014 with total revenue increased by 265% year over year, on a one-day sales comparison basis.

In order to encourage online shopping, since 2009, large online retailers in China such as Tmall.com ("Tmall") of Alibaba Group Holdings (NYSE: BABA), China's largest B2C online retailer and JD.com (NASDAQ: JD) ("JD") have started to make various discount sales onNovember 11 every year. November 11, also called Singles Day, has become the largest online commercial event in China.

Highlights of the Company's online pharmacy sales on Singles Day include:

• Total one-day sales revenue reached approximately $521,000 (RMB3.21 million), a 265% increase from the sales record on the same day of the prior year. The result vastly exceeded the Company's targeted sales goal of approximately $325,000 (RMB2 million). The number of one-day online purchase orders increased 328% over the same day last year. In comparison, our regular daily online sale averaged at approximately $42,000 (RMB 0.26 million) in October 2014, an increase of more than 250% from the same month in 2013.
• More than 90% of the Company's online sales were generated from our online pharmacy at Tmall, the Company's online stores at JD and YHD.com. The Company's official website generated the remaining sales.
• As of October 2014, our online pharmacy was ranked 10th on Tmall.com in the Pharmacy and Health Goods category

"We are very encouraged to see a great increase of our online pharmacy sales during the Singles Day online shopping festival this year. We will continue to offer quality and safe products on our e-commerce platform, and provide a better shopping experience to our customers," commented Mr. Liu, Lei, Chairman and CEO of China Jo-Jo Drugstore. "Looking ahead, the dramatic increase of our online pharmacy sales on Tmall encourages us to further pursue our online growth strategy which we believe to be one of biggest opportunities for us in 2015 and beyond."

Second Quarter 2014 Financial Results

• Retail pharmacy sales increased by $3.0 million, or 31.3%, to $12.4 million from the comparable quarter of the prior year, largely due to a 28.79% increase in same-store sales.
• LOSS PER SHARES: Basic and Diluted was $(0.00) vs. last years same quarter of $(0.04)

"Our online pharmacy sales continued to grow dramatically during the most recent quarter largely thanks to our efforts in expanding collaboration with various large Chinese e-commerce platforms such as Tmall.com under Alibaba group and JD.com," stated Mr. Lei Liu, the Chairman and CEO of the Company. "Looking ahead to next year, other than OTC drugs, nutritional supplement and medical equipment, Chinese government may begin to allow online sale of prescription drugs. Furthermore, local government is planning to apply government medical insurance to online purchases. In preparation for these coming explosive market opportunities, we plan to further strengthen our workforce so as to expand our online operation."

"We are also very happy to report that our retail drugstore revenue grew more than 31% primarily due to a 28.79% increase in our same-store sales during this quarter. Since early this year, the management has been focusing more on developing homegrown market in Zhejiang province as part of our turnaround strategy. We hope that, with the robust online sales growth and continuous revenue growth in our retail drugstores, fiscal year 2015 will be a turnaround year for China Jo-Jo Drugstores."

First Quarter 2015 Financial Results

• Diluted EPS loss was $0.02 compared to $0.06 for the comparable quarter of prior year

The Company's drugstore sales increased in the first quarter of fiscal 2015, primarily due to a 9.8% increase in same-store sales, and revenues from the proliferation of new stores established over the last few years. Retail profit margin decreased to 17.6% from 25.7% in the first quarter of fiscal 2014 due to strong market competition and the implementation of government subsidies to all drugs sold at public hospitals in Zhejiang Province since April 2014. As of June 30, 2014, we have 49 retail drug stores in total with one new store opened in Hangzhou during the quarter.

The Company's online sales continued to grow dramatically in the first quarter of fiscal 2015, reflecting its efforts in expanding collaboration with large business-to-consumer vendors, better products selection for online consumer, and effective cost control. The Company also plans to implement the O2O (online to offline) drug sales model, which provides deliveries to customers from local stores within a few hours of an online purchase. As online shopping becomes widely used, the Company's sales and technical team gains more experiences in searching for potential customers and satisfying products. The Company's management expects an explosive expansion of its online pharmacy sales in the near future.

Mr. Lei Liu, the Company's Chairman and CEO, stated, "We are glad to see the continued improvement in our retail operation, especially the growth in our same-store sales and online store. Wholesale business declined in the first quarter as we have been undergoing restructure of the division in the past few quarters, including a change in sales and management team of wholesale division."

"For the remaining of fiscal 2015," Concluded by Mr. Liu, "we anticipate to grow revenue primarily through our retail operations and online pharmacy while stabilizing our wholesale operations with an eye to achieve bottom line results."

Management Discussion and Analysis

Revenue

Despite the expansion of our retail business, revenue decreased by $23,340,959 or 26.1% for the year ended March 31, 2014, as compared to the previous fiscal year, primarily due to a decrease in our wholesale business and herb farming business.

Net Loss
 
For the fiscal year ended March 31, 2014, we recorded a net loss of $25,356,170, generally caused by the promotional events surrounding our ten-year anniversary for our retail business and by the transition of our new sales and management team for our wholesale business. As discussed in the section titled “Gross Profit”, we have discounted sales for those products that the new sales team has chosen to discontinue. Hence, our gross profit dropped $8,907,507 during the year ended March 31, 2014. Included in net loss are bad debt allowances of $3,743,716, accounts receivables write-off for $644,049, advances to suppliers write-off for $456,089, inventory reserves and write-off for $1,776,067, inventory impairment for herb farming for $820,637, intangible assets impairment loss of $1,126,981, prepayment of lease use right impairment loss of $2,481,792, land and road improvement impairment loss of $905,468, and a charge to expenses of $480,771 in leasehold improvement impairment and $145,040 for our closed stores.

Third Quarter 2014 Financial Results

• Online sales contributed $2.7 million in revenue for the quarter, an increase of 199.4% from the same period of FY 2013. Retail sales, approximately 74.1% of total revenue for the three months ended December 31, 2013, increased by $2.0 million or 17.7% to $13.2 million from the same period of FY 2013. Wholesale, approximately 25.9% of total revenue for the three months ended December 31, 2013, increased to $4.6 million as compared to $4.3 million in Q3 of FY 2013.
• Quarterly net loss was $8.7 million, and diluted EPS losses of $0.64, compared to dilluted EPS losses of $0.26 in the same period last year

Mr. Lei Liu, the Company's Chairman and CEO, stated, "Primarily due to increase in same-store sales and revenues from maturing stores that opened in the last couple of years, our drugstore sales increased slightly quarter over quarter. Looking forward, we will continue to focus on our competitive advantages in the retail drugstore segment by hiring additional clinic staff to better advise on drug selection, looking to open additional clinics next to our drugstores, applying for government insurance for all of our stores, and stocking each location to better cater to its neighborhood. Additionally, our online sales have continued to grow quarter over quarter, reflecting our efforts in collaborating with large business-to-consumer vendors, identifying products suitable for online customers and controlling cost of conducting e-commerce business. Nevertheless, retail profit margin decreased from the same period last year as we were promoting sales via activities such as buy-one-get-one-free. In addition, to commemorate our pharmacy's ten-year anniversary, we rewarded our members with coupons and goods. Although doing so added significant marketing expense, we believe it will strengthen our membership loyalty in the long run."

"In the quarter, we experienced significant loss primarily due to several reasons, including non-recurring promotion activities and membership rewards for ten-year anniversary, as well as discounted sale in our wholesale division," commented by Mr. Lei. Additionally, two stores in Shanghai ceased operations while two stores were opened in Hangzhou in January 2014. As of February 19, 2014, the Company operated 51 pharmacies, including three in Shanghai.

Mr. Liu continued, "As we were transitioning into a new sales and management team for our wholesale business, our regular wholesale business declined quarter over quarter. However, as the new team has extensive industry-relevant experience and is actively seeking out potential customers such as hospital and other drugstores, we are optimistic that our wholesale business can pick up in the future. During this quarter, as the prior team gradually withdrew, certain customers and suppliers that worked with that team chose to discontinue their business with us. In response, we settled certain prepayment accounts with those suppliers through either their products or cash. Because some of the products were specifically for the discontinued customers, we decided not to continue putting significant efforts in marketing such products and sold them off at discount. We believe that doing so, while affecting our short-term profitability, may minimize further loss and free up storage space that our new team may require. In addition, the new team will be freed from dealing with prior accounts of the discontinued suppliers, which in turn allows us to better track the new team's performance. As such sales are non-recurring in nature, we expect our gross margin to recover and net loss to decline in the future."

"For the remainder of fiscal 2014, we are looking to stabilize and grow our revenue primarily through our retail operations, and we will continue our wholesale operations with an eye on bottom line results," concluded Mr. Liu.

Second Quarter 2014 Financial Results

• Wholesale revenue, which represented 31.8% of total revenue for the six months ended September 30, 2013, decreased by $27,309,341 or 72.8%. Such significant contraction resulted from ongoing implementation of our new wholesale strategy to focus on profitability rather than sales volume
• Diluted and basic loss per share was $0.04 vs. last year loss of $0.11.

Mr. Lei Liu, the Company's Chairman and CEO, stated, "Due to the closure of 16 stores in the past calendar year, our drugstore sales declined slightly quarter over quarter. However, our same-store sales grew. Looking forward, we will continue to focus on our competitive advantages in the retail drugstore segment: hiring additional clinic staff to better advise on drug selection, looking to open additional clinics next to our drugstores, and stocking each store location to better cater to its neighborhood. Additionally, our online pharmacy grew steadily quarter over quarter, reflecting our efforts in collaborating with large B2C vendors, identifying products suitable for online customers, and controlling costs. Nevertheless, retail profit margin decreased slightly from the same period last year as we were forced by government price control to adjust prices." As of November 14, 2013, the Company operated 51 pharmacies, including five in Shanghai.

Mr. Liu continued, "Since the third quarter of fiscal 2013, we have stopped low margin sales in our wholesale segment and are focusing on profitability over sales volume. As a result, our sales volume declined while gross profit margin increased significantly. Although this strategy may impact our ability to achieve first-tier distributor status, we believe that this approach is critical for our overall operations going forward."

"For the remaining of fiscal 2014, we are looking to stabilize and grow our revenue primarily through our retail operation, and we will continue our wholesale operations with an eye on bottom line results," concluded Mr. Liu.

HANGZHOU, China, Nov. 12, 2013 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) (the "Company"), a retail and wholesale distributor of pharmaceutical and other healthcare products in China, today announced that on November 6, 2013, it received notification from NASDAQ granting the Company an additional 180-day period, or until May 5, 2014, to remain listed on the NASDAQ Capital Market and to regain compliance with NASDAQ's minimum $1.00 bid price per share rule.

Under NASDAQ Listing Rules, the Company was granted this extension because it met the continued listing requirement for market value of publicly held shares and all other applicable NASDAQ listing requirements, except the bid price requirement. The Company provided written notice to NASDAQ of its intention to cure the bid price deficiency during the second compliance period by affecting a reverse stock split, if necessary.

The Company will regain compliance with the minimum bid requirement if at any time prior to May 5, 2014, the bid price for the Company's common stock closes at $1.00 per share or above for a minimum of 10 consecutive business days.

If the Company does not regain compliance by the end of this extension period, it will receive notification from NASDAQ that its shares are subject to delisting. At that point, the Company may then appeal the delisting determination to a NASDAQ Hearings Panel.

HANGZHOU, China, Nov. 12, 2013 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) (the "Company"), a retail and wholesale distributor of pharmaceutical and other healthcare products in China, today announced that on November 6, 2013, it received notification from NASDAQ granting the Company an additional 180-day period, or until May 5, 2014, to remain listed on the NASDAQ Capital Market and to regain compliance with NASDAQ's minimum $1.00 bid price per share rule.

Under NASDAQ Listing Rules, the Company was granted this extension because it met the continued listing requirement for market value of publicly held shares and all other applicable NASDAQ listing requirements, except the bid price requirement. The Company provided written notice to NASDAQ of its intention to cure the bid price deficiency during the second compliance period by affecting a reverse stock split, if necessary.

The Company will regain compliance with the minimum bid requirement if at any time prior to May 5, 2014, the bid price for the Company's common stock closes at $1.00 per share or above for a minimum of 10 consecutive business days.

If the Company does not regain compliance by the end of this extension period, it will receive notification from NASDAQ that its shares are subject to delisting. At that point, the Company may then appeal the delisting determination to a NASDAQ Hearings Panel.

First Quarter 2014 Financial Results:

• Revenues from retail sales increased to $10.9 million, up 21.9% from the prior period 
• Gross profit from retail sales were $2.8 million, down 19.8% from the prior period 
• Revenue from wholesale operations decreased to $4.4 million, down 79.3% from the prior period 
• Net loss was $0.8 million vs. last years earnings of $0.59 million. 
• Diluted and basic loss per share was $0.06 vs. last years earnings of $0.04. 

Mr. Lei Liu, the Company's Chairman and CEO, stated, "Since the end of 2012, we have been refocusing on our competitive advantages in the retail drugstore segment: hiring additional clinic staff to better advise on drug selection, exploring the opening of additional clinics next to our drugstores, and stocking each location to better cater to its neighborhood. Nevertheless, retail profit margin decreased slightly from the same period last year as we were forced to adjust prices by government price control and our competitors." As of August 14, 2013, the Company operated 51 pharmacies, including five stores in Shanghai.

Mr. Liu continued, "Since the third quarter of fiscal 2013, we have stopped low margin sales in our wholesale segment and are focusing on profitability over sales volume. Although this strategy may impact our ability to achieve first-tier distributor status, we believe that this approach is critical for our overall operations going forward."

"For Fiscal 2014, we are looking to stabilize and grow our revenue primarily through our retail operation, and we will continue our wholesale operations with an eye on bottom line results," concluded Mr. Liu.

Fiscal Year 2013 Highlights:

• Revenues from retail sales decreased to $40.7 million, down 38.4% from the prior period 
• Gross profit was $14.6 million, down 46.9% from the prior year 
• Net loss was $14.3 million 
• Diluted and basic loss per share was $1.06 
• Retooling operations: closed 17 stores in and around Hangzhou and focusing on more profitable wholesale customers 

China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD) (the "Company"), a retail and wholesale distributor of pharmaceutical and other healthcare products in China, today reported earnings results for the fiscal year ended March 31, 2013. The Company will hold a conference call on Friday, July 5, 2013, at 8:00 a.m. Eastern Time. Please see below for dial-in information.

Mr. Lei Liu, the Company's Chairman and CEO, stated, "During fiscal year 2013, our retail drugstore segment faced increased government price controls on over-the-counter and prescription drugs and stricter insurance requirements as well as increased competition from neighborhood drugstores and hospitals that received government subsidies." As of June 28, 2013, the Company operated 51 pharmacies, including five stores in Shanghai.

Mr. Lei Liu continued, "Our net loss was not only due to the reserves related to our advances to suppliers and accounts receivable from our wholesale business, but also goodwill impairments related to two acquisitions and write-offs related to closing 17 drugstores. These items totaled $12.2 million and accounted for 85.1% of our total net loss. Consequently, we are retooling our business strategies going forward: we plan to open more clinics adjacent to our drugstores to boost sales, we are looking for ways to reduce our general and administrative expenses, and we are now focusing on more profitable wholesale customers rather than driving sales volume through low margin sales as we had previously done."

Mr. Liu continued, "For fiscal year 2013, we continued to harvest and sell herbs used in traditional Chinese medicine. Sales from our online drugstore also rose, as we actively promoted our online presence through cooperation with some of the larger online vendors in China."

"For Fiscal 2014, we are looking to stabilize and grow our revenue primarily through our retail operation, and we will continue our wholesale operations with an eye on bottom line results," stated Mr. Liu.

HANGZHOU, China, May 10, 2013 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) (the "Company"), a retail and wholesale distributor of pharmaceutical and other healthcare products in China, today announced that on May 9, 2013, it was notified by The NASDAQ Stock Market LLC ("NASDAQ"), notifying it of its failure to maintain a minimum closing bid price of $1.00 over the then preceding 30 consecutive trading days for its common stock as required by NASDAQ Listing Rule 5550(a)(2).  The Company has until November 5, 2013, to regain compliance.

The Company intends to actively monitor the bid price for its common stock between now and November 5, 2013, and will consider available options to resolve the deficiency and regain compliance with the minimum bid price requirement

Delist notice

On August 31, 2012, the registrant received a letter from The NASDAQ Stock Market LLC (“NASDAQ”), notifying the registrant of its failure to maintain a minimum closing bid price of $1.00 over the then preceding 30 consecutive trading days for its common stock as required by NASDAQ Listing Rule 5550(a)(2) (the “Bid Price Rule”). The letter stated that the Company has until February 27, 2013, to demonstrate compliance by maintaining a minimum closing bid price of at least $1.00 for a minimum of 10 consecutive trading days. The registrant intends to monitor the bid price of its common stock and consider available options if its common stock does not trade at a level likely to result in the registrant regaining compliance with the Bid Price Rule by February 27, 2013.

The letter also states that in the event the registrant does not regain compliance with the Bid Price Rule by February 27, 2013, the Company may be eligible for additional time by meeting certain continued listing requirements and the initial listing criteria for The NASDAQ Capital Market (excepting the bid price requirement), and providing written notice of its intention to cure its deficiency during the second compliance period. If it meets these criteria, NASDAQ will notify the registrant that it has been granted an additional 180-day compliance period. If, however, it appears that the registrant will not be able to cure the deficiency or is otherwise not eligible, NASDAQ will notify the registrant that its common stock will be subject to delisting. At such time, the registrant may appeal the delisting determination to a NASDAQ Hearings Panel.

Third Quarter 2012 Results

• Revenue increased 42.1% to a record high of $25.64 million
• Gross profit increased 28.1% to $6.83 million
• Net income attributable to controlling interest decreased 29.7% to $1.57 million
• Two new stores opened during the quarter, bring the store number to 60 by the end of the quarter, compared with 49 a year ago.
• EPS for the third quarter 2012 were $0.12 vs $0.17

Dr. Lei Liu, Chairman and CEO, stated, “We are pleased to report another record quarter in revenue with our excellent operational and financial performance in the fiscal third quarter, achieving double-digit sales growth. Because of our integrated business model, we were able to adjust our distribution channel and strike a good balance between product volume and selling prices.”

“Facing an economic slowdown and inflationary pressures in China, we have been closely monitoring market development and new growth opportunities. We are also controlling rental increases and other expenses,” stated Dr. Lei Liu, Chairman and CEO. “Our recent strategic initiatives include VIP clubs that cater to high-income customers with increasing healthcare needs. We are also developing more customized services in our stores.”

Dr. Liu continued, “I believe our online drugstore will bring new revenue sources and our expertise in traditional Chinese medicine will distinguish ourselves from our competitors. Going forward, we will continue to grow our business based on an integrated model. We also look to open more stores in both Zhejiang and Shanghai.”

Second Quarter 2012 Results

• Revenue increased 42% from a year ago to a record $22.2 million
• Gross profit increased 42% to $6.26 million; gross profit margin held steady at 28%
• Net income attributable to controlling interest rose to $1.634 million from $1.627 million
• Diluted and basic earnings attributable to controlling interest were $0.12 per share, unchanged from a year ago
• Opened one new store and acquired another one during the quarter, bringing total number of stores to 58 stores as of September 30, 2011, compared with 46 a year earlier
• Same-store sales increased 7.7% during the quarter from a year ago
• Generated $15.7 million cash flow from operations in the six months ended September 30, up from $157,924 a year ago

Dr. Lei Liu, Chairman and Chief Executive Officer, stated, “We are very pleased to present another quarter of record revenue. We expanded our chain to 58 stores from 46 a year ago, and we continued to generate robust cash flow while reinvesting in our business.”

During the fiscal second quarter, the Company prepared for the launch of its largest store, the 3,588-square-meter (38,620 square feet) Jiuyintang Store, in Zhejiang’s capital city of Hangzhou. The store, opened in October, combines western and Chinese traditional medicines, and features an in-store clinic, pharmacy, physicians, in-store health consulting and management. The store is developed towards serving affluent customers.

In August, the Company finished acquisition of Zhejiang Jiuxin Medicine Co., Ltd. Through the acquisition, the Company obtained a valuable license to purchase medicines and drugs directly from manufacturers, making an important step towards vertical integration.

Dr. Liu continued, “The Zhejiang provincial government has ceased to accept applications for such wholesale drug licenses. The acquisition should greatly improve the long-term efficiency of the Company’s supply-chain operation and reduce its supply costs.”

“Looking forward, we will continue our expansion in Zhejiang and Shanghai. We will also continue to expand our online drug store, the only licensed one in Zhejiang, to drive new growth and build long-term shareholder value.”

• Revenue for the first quarter of fiscal 2012 increased 40.9% to $21.4 million compared to $15.2 million in the first quarter of fiscal 2011, while comparable store sales, which the Company defines as stores open for 15 months or more, increased 31.9%. The strength of sales during the period is primarily due to sales of pharmaceutical products covered under government-sponsored medical insurance programs. All of our store locations opened prior to April 1, 2010 are licensed to accept medical insurance, and sales at such locations have steadily increased as such insurance programs covered more drugs and participants. Revenue also increased from having more stores in operation. The Company operated 57 stores as of June 30, 2011 compared to 31 stores as of June 30, 2010. We opened 6 new locations during the three months ended June 30, 2011.
• First quarter gross profit increased 48.9% to $6.9 million from $4.6 million for the same period of fiscal year 2011, primarily reflecting greater sales of higher margin traditional Chinese medicine products during the period. Gross margin for the first quarter improved 180 basis points to 32.1%, which compares to 30.3% for the same period of fiscal 2011.
• Selling expense in the first quarter was $1.4 million versus $0.8 million in the same period of fiscal 2011. The year-over-year increase reflects an additional 26 stores in operation, as well as the Company’s ongoing efforts to build increased awareness of the China Jo-Jo Drugstores brand.
• General and administrative expenses were $1.1 million in the first quarter compared to $0.8 million for the first quarter of fiscal 2011, reflecting the support of an additional 26 stores in operation. As we continue to open new stores, further develop our infrastructure, and incur expenses related to being a public company, we anticipate that our general and administrative expenses will increase in absolute dollars as well as a percentage of total revenues.
• Income from operations in the first quarter totaled $4.4 million versus $3.0 million in the first quarter of fiscal 2011, while operating margin was 20.6% compared to 19.8%, respectively as a result of our increased gross profit.
• Net income for the first quarter of fiscal 2012 rose 50.7% to $3.2 million compared to $2.2 million last year.
• Basic and diluted earnings per share increased 41.2% to $0.24 versus $0.17 for the same period of fiscal 2011.

Dr. Lei Liu, Chairman and CEO, stated, “We are very pleased to deliver record operating results for the first quarter, which reflect strong sales and increased traffic at both new and existing stores. The substantial increase in sales primarily reflects our ability to accept medical insurance for an increased number of drugs, as well as a broader number of insured individuals under China’s government-sponsored insurance programs. All of our stores opened prior to April 1, 2010 are now able to accept government medical insurance. As we continue to apply to accept medical insurance as soon as our stores become eligible to do so, i.e. one year after opening, we anticipate that government-sponsored programs will continue to drive sales as our new stores mature.”

Dr. Liu further commented, “We are continuing to make progress towards our long-term goal to become vertically integrated. Specifically, we are in the process of acquiring a medical distributor and expect to close on the transaction in the second fiscal quarter; we plan to begin selling our own traditional Chinese medicines in Spring 2012; and we are selling through our online drugstore. We believe these initiatives will help us drive growth and build long-term shareholder value.”

Effective August 1, 2011, Mr. Bennet P. Tchaikovsky resigned as the registrant’s chief financial officer, and Mr. Shike Zhu resigned from the registrant’s board of directors. The decisions by Mr. Tchaikovsky and Mr. Zhu to resign from their respective positions were not the result of any material disagreement with the registrant on any matter relating to the registrant’s operations, policies or practices.

Effective August 1, 2011, the registrant’s board of directors appointed Mr. Frank Ming Zhao as the registrant’s new chief financial officer to replace Mr. Tchaikovsky.

Fourth Quarter Results:

• Revenues increased 29.0% to $21.0 million
• Gross profit increased 21.1% to $6.8 million; gross margin reaches 32.3%
• Diluted and basic earnings per share $0.18 vs $0.39

Dr. Lei Liu, Chairman and CEO, stated, "In fiscal 2011, we executed on a number of key operating initiatives designed to drive long-term growth and delivered financial results in line with our previously announced expectations. During the year, we expanded our footprint in Zhejiang Province with the opening of 25 new stores, extended the Company’s geographic reach with our strategic entry into Shanghai, one of the wealthiest cities in eastern China, and launched our online drugstore."

Dr. Liu concluded, "In fiscal year 2012, we expect to open additional locations in both Zhejiang Province and Shanghai, and plan to continue to develop our internet drugstore. We are continuing to build market share and drive growth through new store openings, while at the same time focusing on strategic initiatives that will strengthen our competitive position and enable us to operate more efficiently over the long-term."

The registrant terminated Frazer Frost, LLP (“Frazer Frost”) as our independent auditors effective as of April 19, 2011.  This action was approved by the Audit Committee of our Board of Directors and ratified by our Board.

The reports of Frazer Frost on our financial statements as of March 31, 2010 and 2009 and for the years ended March 31, 2010 and 2009 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

In connection with the audits of our financial statements for the fiscal periods ended March 31, 2010 and 2009 and through the date of this Form 8-K, there were: (i) no disagreements between the Company and Frazer Frost on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Frazer Frost, would have caused Frazer Frost to make reference to the subject matter of the disagreement in its reports on our financial statements for such periods, and (ii) no reportable events within the meaning set forth in Item 304(a)(1)(v) of Regulation S-K.

On April 19, 2011, we engaged Friedman, LLP (“Friedman”) as our independent registered accounting firm.  During our two (2) most recent fiscal periods ended March 31, 2010 and 2009, we did not consult with Friedman on (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that may be rendered on the registrant’s financial statements, and Friedman did not provide either a written report or oral advice to the registrant that was an important factor considered by the registrant in reaching a decision as to any accounting, auditing, or financial reporting issue; or (ii) the subject of any disagreement, as defined in Item 304 (a)(1)(iv) of Regulation S-K and the related instructions, or a reportable event within the meaning set forth in Item 304(a)(1)(v) of Regulation S-K.

We provided Frazer Frost a copy of the disclosures contained herein and requested that Frazer Frost furnish us with a letter addressed to the Securities and Exchange Commission stating whether or not Frazer Frost agrees with our statements in this Item 4.01.  A copy of the letter dated April 25, 2011, furnished by Frazer Frost in response to that request, is filed as Exhibit 16.1 to this Current Report.

The Registrant will deliver a presentation at the 2011 Rodman & Renshaw Annual China Investment Conference in Shanghai, China on March 7, 2011.

Part 1

Part 2

Rodman and Renshaw on CJJD                                                     2/23/2011

CJJD: F’3Q11 symptomatic of near-term growing pains; TCM recovery in sight; Maintain MO Rating                                                         

China Jo-Jo Drugstores (NASDAQ: CJJD) reported F’3Q11 (Q ended December 31, 2010) EPS of $0.17, a penny below our and the consensus EPS estimate, and vs. $0.26 LY, as softer than expected sales and operating expense deleverage were only partly offset by a higher than anticipated gross margin. Note that the year-over-year decline in EPS is in large part attributable to the company’s $17.5MM equity issuance earlier in April 2010. Importantly, the F’4Q11 sales and EPS guidance range of $68-$70MM and $0.62-$0.64, respectively, fell below our previous expectation of $72.0MM and $0.71. In addition, total store count of 49 was a tad lower than the 51 we were expecting, which was a strategic decision to delay lease-signing as commercial rents are beginning to soften in Zhejiang. 

Dissecting the topline shortfall; recovery in TCM likely in F’4Q11. The lower-than-expected sales occurred as a result of the perfect storm of declining same-store sales at its mature locations combined with a slower-than-expected ramp up for the new stores, and fewer stores and lower square footage than what we were expecting. The 6.6% decline in comparable store sales (for stores open more than 15-months) was both a reflection of the competitive pricing environment and the fact that Jo-Jo had transferred its most experienced store management personnel to its new stores. Categorically, high-margin TCM fell 10.5% YoY to $2.5MM (anniversarying a strong flu season in F’3Q10), while growth in prescription drugs (rose 20.9% YoY to $6.5MM) and OTC drugs (increased 13.4% to $5.1MM) fell short of our expectations. That said, we believe that there may be some recovery in TCM in F’4Q11 given the flu epidemic that broke out in China in January 2011. Documented cases of the H1N1 flu virus increased sequentially to 3,833 cases from 146 in December 2010, which will likely contribute to TCM sales.[1]

The answer is in the margin. Stubborn adherence towards margin maintenance also appears to have impacted its topline. Mounting competitive pressures from CHC’s, combined with the lower prices at new stores (used to attract a regular customer base) were expected to pressure the gross margin significantly. However, the gross margin actually came in above our expectation, implying that store managers may need to ease up on retail prices to drive volume. Note that industry-wide net margins average only mid-to-high single-digits vs. 12.4% for Jo-Jo in F’3Q11. Therefore, margin maintenance is challenging and requires store managers to have considerable degree of familiarity with local competition and local consumer shopping habits. 

Regulatory environment update. There are currently 307 kinds of medication currently on the nationwide Essential Drug List (“EDL”), in addition to 150 types on the Zhejiang provincial EDL. The EDL had been implemented in three phases, and drugs on this list must be sold at cost at the community health centers (“CHC’s). [to be continued on page 2-->] 

[1]http://www.menet.com.cn/Articles/IEconomy/201102/201102171131573157_5952.html


Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Third Quarter FY 2011 Results:

• Third quarter revenue increased 20.9% to $18.0 million compared to $14.9 million in the third quarter of fiscal 2010.
• Third quarter gross profit increased 11.8% to $5.3 million from $4.8 million a year ago.
• Income from operations in the third quarter of fiscal 2011 totaled $2.8 million versus $3.4 million in the third quarter of fiscal 2010
• Net income for the period was $2.2 million, or basic and diluted earnings of $0.17 per share, compared to $2.6 million, or basic and diluted earnings of $0.26 per share, a year ago. The decline is primarily attributable to an additional 3.5 million basic and diluted shares outstanding, as well as higher operating expenses, on a year-over-year basis.

During the third quarter of fiscal 2011, the Company opened 3 new stores, bringing the fiscal year-to-date total to 24 new locations. As of December 31, 2010 the Company operated 49 stores.

The Company expects to have 60 locations open by the close of its 2011 fiscal year ending March 30, 2011. During fiscal year 2012, the Company expects to open between 20-30 new stores.

• Total revenue for the year is expected to be between $68.0 million and $70.0 million and
• Basic and diluted earnings per share are expected to be in the range of $0.62 to $0.64

Dr. Lei Liu, Chairman and CEO, stated, "Although the competitive environment is challenging, we are taking steps to innovate and differentiate our brand," "Recent initiatives include the roll-out of our online drugstore and the addition of new clinics. We are also remaining focused on our core operating strategy to provide our customers with high quality products at an excellent value."

Rodman & Renshaw on CJJD                                                                      November 30, 2010

We are reinstating our Market Outperform Rating on China Jo-Jo Drugstores (NASDAQ: CJJD), but are lowering our 12-month price target to $7 from $8 on the back of softer than expected topline growth and gross margin, which have tempered our outlook.

Box sizes of new stores are trending smaller. Real estate is scarce, and the new stores have, on average, been smaller than Jo-Jo’s existing store base. While the average box size had been ~3,592 sq. ft. as of June 2010, newer stores have generally trended around ~2,000 sq. ft. This translates to lower than expected total selling sq. ft. added, contributing to somewhat softer than expected topline in F’2Q11.

Gross margin under pressure from aggressive price teasers. Higher-margin TCM and nutritional products accounted for 20.1% of sales in F’2Q11 compared with 24.2% LY. In addition, we expect low-price teasers, which are reflected in the gross margin, to perpetuate while Jo-Jo is still rapidly expanding its store base and establishing its everyday low-price/value positioning in new cities and neighborhoods. Looking forward into F’3Q11 and F’4Q11, as Ginseng (a traditional Chinese nutritional supplement that is more popular in the winter and are common gifts for CNY) should help support the GM over the next two quarters. We have modeled in GM of 28.1% in F’3Q11 (ending in December 2010) and 29.9% for F’4Q11 (ending March 2011). Longer-term, possible benefits to the gross margin include whether the pharmaceutical sales representatives are replaced with Jo-Jo’s own employees, which would help boost the GM but raise selling expenses – should this be optimized, there could be some upside in the operating margin.

Lowering our F’3Q11, FY 2011, and FY2012 EPS estimates. We are lowering our F’3Q11, FY 2011, and FY 2012 EPS estimates to $0.18, $0.71, and $1.07, respectively, from $0.23, $0.90, and $1.25 previously.

Valuation. We are reinstating our Market Outperform Rating, as we still find CJJD shares compelling, trading at 4.4x our FY’12 (ending March 2012) EPS estimate of $1.07. However, we are lowering our 12-month price target to $7 (assumes 6.5x our 2011 EPS est.) from $8, as we expect that longer-term, Jo-Jo will to some extent succumb to the lower average margins of the drugstore space. Note that at the industry level, net margins are on average 3.0% (vs. 10.4% for Jo-Jo in F’2Q11), mostly attributable to intense competition.

Risks. 1) Industry implications of healthcare reform; 2) Idiosyncratic risk of regional drug preferences; 3) larger and financially stronger competitors yielding intense price competition; 4) lack of quality control over third-parties from which Jo-Jo sources its products; 5) potential inability to acquire locations that are as ideal as its existing store base as the chain expands further outside of Hangzhou.


Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Rodman & Renshaw on CJJD

WHAT HAPPENED? 

China Jo-Jo Drugstores (NASDAQ: CJJD) this reported F’2Q11 (quarter ended September 30, 2010) EPS of $0.12, below our and the consensus EPS estimate of $0.17 and vs. $0.21 LY, driven by lower than expected sales contribution from new stores, and slight gross margin contraction. Operating expense dollars were roughly inline. Seven new stores were opened in F’2Q11, bringing the total store count to 38 at the end of the quarter (September 2010). For F’3Q11 (ends December) QTD, it appears that 11 more stores have opened, bringing the total store count to 49 as of November 12, 2010. While we still believe that Jo-Jo is on-track to meet or beat the stated guidance of 60 stores by the end of March 2011, the sales productivity ramp-up of the newer stores are not as quick as we originally anticipated. 

• FY’2Q11 revenues rose 27.9% YoY to $15.7MM, driven by 15.8% increase in same-store sales. Note that this is the first quarter in which Jo-Jo has released a same-store sales figure. 
• The gross margin contracted 43 bps YoY to 28.1% vs. our 28.6% estimate, likely attributable to aggressively low teaser prices used in new stores to establish Jo-Jo’s value positioning in new markets. 
• The operating expense rate came in at 12.4% vs. 9.5% LY due to additional administrative fees, additional selling expenses associated with new stores, and some fixed cost deleverage off of lower sales. Operating expense dollars of $1.9MM were roughly inline. 
• FY’2Q11 net income margin contracted 352 bps to 10.4% and fell below our 12.7% estimate, reflecting the aggressive price teasers in new stores that cut into the gross margin and fixed cost deleverage off of lower sales. 

OUTLOOK 

In addition to the generally disappointing financial results, we are a bit surprised by the lack of color on historical results. While we respect the lack of EPS guidance due to the timing uncertainties of new store openings and sales ramp up of those new stores, the company has been indicating, for several months now, that EPS guidance for FY2011 will be given. For U.S. companies, quarterly EPS guidance is typically issued to shed visibility on the future outlook. For U.S.-listed Chinese companies, the convention is to issue sales and net income guidance range for the current fiscal year. In the absence of EPS guidance, we believe that Jo-Jo should at least provide color on the drivers of historical results and communicate a view on its financial outlook. Based on YTD trends, we now expect a more moderate topline growth rate along with flattish to modestly contracting margins, given the accelerated store count growth (at least 11 in F’3Q11 vs. 7 in F’2Q11) and aggressive price teasers, which will likely continue to temper the GM. Our EPS ests. are under review. 

Investment Rating Under Review. We are placing our Investment Rating under review until the earnings call on Tuesday morning November 16, 2010.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

GeoTeam® September 2010 Rodman & Renshaw notes:

China Jo-Jo Drugstores (NASDAQ:CJJD)

• Believes SEC filings match local PRC filings. (We are in the process of verifying).
• Hope to have 49 stores by end of October and on pace to have 60 stores by end of fiscal 2011.
• Plans to issue guidance in near future.
• Possible 10 to 15% dilution, over time, from employee compensation plan.
• Margins are roughly 22%, but temporarily declined to around 17% due to going public expenses.

Rodman & Renshaw is  initiating coverage on China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD, $75.9mm mkt cap) with a Market Outperform / Speculative Risk rating and a 12-month Price Target of $8.00.

Investment Thesis

China Jo-Jo Drugstores is a chain of 42 drugstores in Zhejiang Province with a distinctive ‘doctor + medicine’ concept, essentially a one-stop shop for basic healthcare needs. Its appeal lies in the availability of on-site physicians, which allows patients to bypass the long lines typical of hospitals, and provides a significant boost to sales productivity, currently at roughly $688 per square foot, meaningfully above the industry average. Following its $17.5MM equity raise in April 2010, China Jo-Jo announced that it plans to expand to 60 doors by the end of FY 2011 (March 31, 2011), and reach its potential of an estimated 200-300 stores in Zhejiang by FY’14-FY’15, which implies 35-80 openings annually for the next several years. Given CJJD’s capable management team with prior drug retail operating experience, a track record of zero underperforming stores to date, visible and prudent capital deployment towards additional store openings, and longer-term, its attractiveness as an acquisition target for strategic players looking to gain instant presence in Zhejiang, we are a supporter of the stock at current levels.

We rate CJJD Market Outperform; $8 PT. CJJD is currently trading at 6.0x our CY 2010 EPS estimate of $0.93, compared to 23.4x consensus estimates for China Nepstar Chain Drugstore (NYSE: NPD, unrated) (pureplay drugstore chain) and 5.9x for China BCT Pharmacy (OTCBB: CNBI, unrated) (drug manufacturer/distributor/retailer). CJJD’s current CY 2011E P/E-to-LTG is 17%, a 94% discount to Nepstar’s 299%. Owing to its relatively small size, we see China Jo-Jo’s long-term growth (LTG) prospects at 30%, ~15 pts above that of the overall industry, for which we project mid-teens growth over the next several years. We believe the valuation gap will narrow over time as management establishes a track record of successful replication of its winning formula into new cities, and ramps up on its responsibilities as a publicly traded company, such as strengthening internal controls and providing timely updates to investors. Our 12-month price target of $8 assumes nearly 9x our CY 2010 EPS, which we are comfortable despite its small size, given its significantly above-industry growth rate. Note that in calculating CJJD’s P/E, we have adjusted for its March 31st fiscal year-end to calendar year-end to allow for an apples-to-apples comparison with its peers.

CJJD shares are beginning to gain momentum, possibly due to two factors:

• The company announced that it had applied to list on NASDAQ
  
• The company has filed an amended S-1 where it disclosed more information on its growth tract than in its original S-1 filing:
  
  
  • Disclosure of an additional three pharmacies in operation
  • Plans to have another five pharmacies in operation by April 2010

This would bring the total store count to 30 vs. , 22 in the original S-1, before taking into account additional pharmacies constructed/acquired from proceeds of $23.5 million from its proposed offering.

Offering details:

4,350,000 shares of common stock may be issued in the offering at an assumed public offering price of $6.00 per share (after a reverse split), which is the midpoint of our expected offering range, after deducting the estimated underwriting discount and commissions and estimated offering expenses payable by us and application of net proceeds.

CJJD currently has 20 million shares outstanding.

Using the following information:

"We are planning to build additional drugstores throughout Zhejiang province organically as well as by acquisition. To build a 3,000 square foot store, we estimate that our initial cash outlay will be approximately RMB 3.0 million ($0.44 million) which includes initial inventory stocking (approximately 1.2 million RMB), first year lease prepayment (0.7 million RMB), pre-marketing costs (0.5 million RMB) and leasehold improvements (0.6 million RMB). Note that these are general estimates and the actual cost may vary depending upon the location."

We calculated that CJJD could build another 20 stores. This may be conservative as some stores will likely be less than 3000 square feet (However, smaller pharmacy foot prints contribute less to revenues).

Incremental pharmacy count= additional three pharmacies in operation + five pharmacies in operation by April 2010 + 20 newly constructed pharmacies= 28

Once all new pharmacies begin contributing to operations we are assuming that they can minimally add another $17 million in annual revenues and $3.0 million in net income ($.13 EPS).  CJJD seems on track to report fiscal 2009 net income of $8.5 million on revenues of $54 million.  (Year ends in March) 

Please note that it generally takes 120 days for a new pharmacy to contribute to operations.

We also need to perform further due diligence on the number of pharmacies that CJJD can add from $12.7 million that we are assuming can be used to:

• Acquire operating pharmacies
• Acquire retail locations that it will convert to pharmacies

The cost of these endeavors can vary.  As such, we cannot use the $440,000 cash outlay figure to estimate store opening from acquisitions.  We also need to consider when CJJD's expansion efforts will be accretive to EPS.

We will provide further details if warranted.

China Jo-Jo Drugstores Completes Reverse Acquisition

Details:

• China Jo-Jo operates a retail pharmacy chain in the PRC offering both western and traditional Chinese medicine.
• The pharmacy chain currently operates 20 stores throughout Hangzhou, the provincial capital of the Zhejiang Province
• After opening, a location may take up to one hundred twenty days to achieve projected revenue goals for that particular location.
• One of the strategies of China Jo-Jo is to grow its business is through acquisition.
• Post-merger outstanding Shares: 20 million

Financails:

Management commented,

As of June 30, 2009, we had RMB 8.7 million (US $1.3 million) in cash. Based on our current operating plans, we expect our existing resources, including our current cash and cash flows from operations, to be sufficient to fund our anticipated cash needs, including for working capital and capital expenditures for at least the next 12 months

Pursuant to the terms of our Consulting Services Agreement, such agreements are subject to automatic termination on May 1, 2010 unless the Registrant completes a financing of $25 million and its common stock becomes listed on the NASDAQ Capital Market by such date.

Source: Super 8K (Filed September 28, 2009. Page 5)