China Jo-Jo Down 3% Despite Turn to Profit in Fourth Quarter
CJJD's reported revenues of $33.36 million and net income of $460,000 were not enough to stop coronavirus fears from hurting its stock.
The stock in China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) slipped nearly 3% to $1.66 per American depositary share by midday Friday, despite the company's announcement of improved revenues and a turn to profit in the fourth quarter.
The Hangzhou-based pharmaceutical retailer said in a statement today that in the three months through December its revenue reached $33.36 million, up 8% year-over-year. Net income was $460,000, or 2 cents per share, in contrast to a net loss of $2.21 million, or 6 cents per share, in the same period of the previous year.
CJJD attributed the revenue growth to the performance of its retail drugstores and increased consumer benefits.
Since announcing a direct offering of 4 million common shares, priced at $2.50 apiece, to institutional investors in April, CJJD's stock hasn't exceeded $3 per ADS. In fact, CDJD has mostly closed between $1 and $2 per ADS. In addition, the recent outbreak of the coronavirus has been affecting the overall volatility of the markets to which CJJD has certainly not been immune.
Earlier this month, CJJD said it had assembled more than 200,000 protective masks in efforts to help combat the epidemic.
"Looking forward, amidst the outbreak of 2019 Novel Coronavirus, we are striving to optimize our inventory and operational execution with effective distribution channels to meet the strong domestic demand of pharmaceutical and other healthcare products as well as healthcare services," Lei Liu, the chairman and chief executive officer of CJJD, said in a statement today.
He added, "We will continue to focus on successful execution of our long-term growth strategies to unleash the full potential of our consumer-centric healthcare business model and create value for all shareholders."
Founded in 2006, CJJD provides pharmaceutical and healthcare products through offline and online retail channels in China. In addition, the company sells products through e-commerce giants such as Alibaba Group's (NYSE: BABA; HKEX: 9988) Tmall, JD.com Inc. (Nasdaq: JD) and Amazon (Nasdaq: AMZN).