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China Jo-Jo Drugstores Announces Fiscal 2014 Second Quarter Financial Results
Date:11/14/2013

liability

$

(21,049)(0.1)%$

25,9050.1%Income tax expense

$

39,5890.2%$

100.0%Net loss attributable to controlling interest

$

(546,590)(3.2)%$

(1,528,449)(5.7)%Net loss attributable to noncontrolling interest

$

(264)(0.0)%$

(331)(0.0)%Revenue

Revenue decreased by $9,809,693
or 36.8% period over period, primarily due to decrease in our wholesale business, offset by slight increase in our retail business:(1)

Wholesale revenue, which represented 34.4% of total revenue for the three months ended September 30, 2013, decreased by $10,364,687 or 64.1%. Such significant contraction resulted from ongoing implementation of our new wholesale strategy to focus on profitability rather than sales volume.
Thus, our wholesale profit margin increased from 2.5% to 18.6%. However, until we can achieve first-tier distributor status with more vendors, we will continue to have limited access to more lucrative sales channels such as hospitals, and do not expect our wholesale business to expand significantly in the immediate future.(2)

Retail sales, which accounted for approximately 65.6% of total revenue for the three months ended September 30, 2013, increased by $554,994 or 5.3% to $11,052,942.
Same-store sales increased by approximately $66,080 or 0.7%, while online sales contributed approximately $1,596,950 in revenue, an increase of 85.6%.
The increase in same-store sales reflects implementation of key drugstore operational strategies such as promoting sale through our doctors and clinics, as well as modest economic growth in China.
Retail margin, however, fell from 26.0% to 22.7% due to price adjustments caused by government drug price control.
Our store count decreased to 51 as of September 30, 2013, from 65 a year ago. 

Quarterly Revenue by Segment

The following table breaks down the revenue for our three business s
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SOURCE China Jo-Jo Drugstores, Inc.
Copyright©2012 PR Newswire.
All rights reserved

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