CJJD stock closed up more than 8% in after-hours trading on February 21, 2020. The stock began uptrending after the company reported financial results on February 14, 2020.
On February 14, 2020, China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD), a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a provider of healthcare services in China, announced its financial results for the third fiscal quarter ended December 31, 2019.
Third Quarter of Fiscal 2020 Financial Highlights:
- Revenue increased by 7.9% to $33.36 million for the three months ended December 31, 2019 from $30.92 million for the same period of last year.
- Gross profit increased by 2.1% to $7.28 million for the three months ended December 31, 2019 from $7.14 million for the same period of last year.
- Gross margin decreased by 1.3 percentage points to 21.8% from 23.1% for the same period of last year.
- Net income was $0.46 million, or $0.02 per basic and diluted share, for the three months ended December 31, 2019, compared to net loss of $2.21 million, or $0.06 per basic and diluted share, for the same period of last year.
Mr. Lei Liu, Chairman and CEO of Jo-Jo Drugstores, commented, “We delivered outstanding financial results for the third quarter of 2020, with revenue recording $33.36 million, up 7.9% compared to the same period of last year. Benefiting from the growth in retail drugstores and online pharmacy businesses as well as our strong competitive position in the industry, all of our core businesses performed in line with our expectation. 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. We are confident that our professional team is able to deliver compelling value to our customers and the communities we serve. 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.”
On February 3, 2020, the company pledged to provide assistance to those affected by the contagious virus and fight against the 2019 Novel Coronavirus 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.”
Large players having been moving into CJJD stock over the last couple of days as evidenced by the rising large players volume: