4,156,8927.0%(Loss) income from operations
449,2370.8%Other income (expense), net
8,3670.0%Goodwill impairment loss
(1,473,606)(2.5)%Change in fair value of purchase option derivative liability
25,7470.0%Income tax expense
3,8920.0%Net loss attributable to controlling interest
(993,562)(1.7)%Net loss attributable to noncontrolling interest
Revenue decreased by $27,320,505 or 45.9% period over period, primarily due to decrease in our wholesale business, offset by slight increase in our retail business:(1)
Wholesale revenue, which represented 31.8% of total revenue for the six months ended September 30, 2013, decreased by $27,309,341 or 72.8%. 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 68.2% of total revenue for the six months ended September 30, 2013, increased by $2,512,927 or 12.9% to $11,052,942. Same-store sales increased by approximately $1,066,343 or 6.2%, while online sales contributed approximately $2,865,592 in revenue, an increase of 102.1%.
The increase in same-store sales reflects implementation of key drugstore operational strategies such as promoting sale through our doctors and c
|SOURCE China Jo-Jo Drugstores, Inc.|
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