Selling and Marketing Expenses
Sales and marketing expenses increased by $699,128 or 17.7% period over period.
The increase in absolute dollars is mainly due to membership rewards to commemorate Jiuzhou Pharmacy's ten-year anniversary in August and September 2013.
Such expenses as a percentage of revenue increased to 14.5% from 6.7% for the same period a year ago due to significantly lower wholesale revenue.
We expect future sales and marketing expenses to be lower after the anniversary commemoration.
General and Administrative Expenses
General and administrative expenses decreased by $1,024,093 or 24.6% period over period.
Such expenses as a percentage of revenue increased to 9.7% from 7.0% for the same period a year ago.
The significant decrease in absolute dollars mainly reflects decrease in allowance for advances to suppliers. The increase in percentage of revenue is mainly a result of a lower overall revenue base for the six months ended September 30, 2013. We expect future general and administrative expenses to be affected by allowance adjustments significantly.
(Loss) Income from Operations
As a result of lower revenue and lower gross margins, income from operations decreased by $1,692,437 or 376.7% period over period.
Operating margin for the six months ended September 30, 2013 and 2012 was (3.9)% and 0.8%, respectively.
Income tax expense increased by $75,217 period over period, as a result of higher taxable income from Jiuzhou Pharmacy.
As a result of the foregoing, net income decreased by $340,016 period over period.
Conference Call InformationAs previously announced, the C
|SOURCE China Jo-Jo Drugstores, Inc.|
Copyright©2012 PR Newswire.
All rights reserved