China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) reported stronger revenue but a loss for the third fiscal quarter ended December 31.
The pharmaceutical retailer said in the three months through December its revenues hit $35.54 million, up 6.5% year-over-year. Net loss reached $6.29 million versus a net income of $460,000 in the same period a year ago.
China Jo-Jo attributed the revenue growth to its online pharmacy and wholesale operations. Revenue from retail drugstores, however, was $1.5 million, representing a 7% decrease year-over-year. Its online pharmacy business increased by 66.4%, to $6.60 million, while wholesale business increased by $1.05 million to $8.87 million, the company added.
"During the COVID-19 pandemic, we made every effort to guarantee sufficient medicine supply, build a pandemic medicine center and provide online pharmacy consultation services. As a result, our revenue year-over-year from online pharmacy increased by 66.4%. Our robust performance is a strong indicator of the successful execution of our multifaceted growth strategy and strategic transformation," Lei Liu, the chairman and chief executive officer of China Jo-Jo, said in a statement.
He added, "The environment surrounding COVID-19 accelerates our transformation. To address the tremendous pharmaceutical retail market in China, we enhanced various information and data systems, continued to develop the management system for patients with chronic diseases.”
Additionally, China Jo-Jo noted that during the company's 17th-anniversary celebration, the sales of its Daguan store exceeded 1.2 million yuan in one single day. The revenue of the store increased by 323% compared to the same period of last year. Regarding the online business, revenue increased by 26.1% year-over-year during the "618" shopping festival, and revenue increased by 64.5% year-over-year during the "11.11" shopping festival.
However, China Jo-Jo's stock has been on nosedive since late May. Since closing at $3.35 per share on May 27, shares of China Jo-Jo are down 148%. On Friday, shares of CJJD closed at $1.35 apiece, down 3.57%.
Based in Hangzhou, CJJD provides pharmaceutical and healthcare products through offline and online retail channels in China. In addition, the company sells products through e-commerce giants such as Alibaba Group's (NYSE: BABA; HKEX: 9988) Tmall, JD.com Inc. (Nasdaq: JD) and Amazon (Nasdaq: AMZN).