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China Jo-Jo Drugstores, Inc. Reports Fiscal Year 2014 First Quarter Earnings Results and Schedules Conference Call for August 19, 2013
Date:8/16/2013

our best estimate as to future market demands, and harvest and sell them when market conditions are favorable. We anticipate that we will continue doing so in upcoming fiscal year, but do not expect a significant increase from fiscal 2013 in terms of revenue or gross profit.Quarterly Revenue by SegmentThe following table breaks down the revenue for our three business segments for the three months ended June 30, 2013 and 2012:Three months ended June 30,20132012Amount% of total
revenueAmount% of total
revenueVariance by
amount% of
changeRevenue from retail businessRevenue from drugstores$

9,648,21862.9%$

8,393,09825.6%$

1,255,12015.0%Revenue from online sales1,264,1728.2%561,3581.7%702,814125.2%Sub-total of retail revenue10,912,39071.1%8,954,45627.3%1,957,93421.9%Revenue from wholesale business4,424,12928.8%21,368,78365.0%(16,944,654)(79.3)%Revenue from farming business--%2,524,0917.7%(2,524,091)(100.0)%Total revenue$

15,336,519100%$

32,847,330100%$

(17,510,811)(53.3)%The revenue fluctuation period over period reflected the following:

(1)

Drugstore revenue increased by approximately $1.2 million or 15% period over period, primarily due to three factors. First, we reconfigured operating strategy to refocus on our strengths.
For example, by hiring additional doctors for our clinics, we were able to attract and serve more patients who in turn purchased their medication from our stores.
Second, all of the stores that we opened in Hangzhou during the past two years are now able to accept state-sponsored medical insurance, six of which were unable to do so a year ago.
Since insurance reimbursement accounted for approximately 50% our drugstore revenue from Hangzhou in the past year, the ability to accept medical insurance is a significant factor in a store's operating performance.
Third, the modest growth in Chinese economy has encouraged consumers to
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SOURCE China Jo-Jo Drugstores, Inc.
Copyright©2012 PR Newswire.
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