Profile: China Jo-Jo Drugstores Inc (CJJD.O)
14 Mar 2014
China Jo-Jo Drugstores, Inc. (China Jo-Jo), incorporated on December 19, 2006, is a retailer and distributor of pharmaceutical and other healthcare products in the People’s Republic of China (PRC or China). The Company has 51 store locations under two store brands: 46 Jiuzhou Grand Pharmacy stores in Hangzhou, and Five Lydia Grand Pharmacy stores in Shanghai, including one Lydia Zhongxing Grand Pharmacy, one Lydia Weifang Grand Pharmacy, one Lydia Chaling Grand Pharmacy and one Lydia Zhenguang Grand Pharmacy. The Company’s stores provide customers with a wide variety of pharmaceutical products, including prescription and over-the-counter (OTC) drugs, nutritional supplements, traditional Chinese medicine (TCM), personal and family care products, and medical devices, as well as convenience products including consumable, seasonal and promotional items.
The Company has licensed doctors of both western medicine and TCM onsite for consultation, examination and treatment of common ailments at scheduled hours. Two stores have adjacent medical clinics offering urgent care (to provide treatment for minor ailments, such as sprains, minor lacerations and dizziness which can be treated on an outpatient basis), TCM, including acupuncture, therapeutic massage and cupping and minor outpatient surgical treatments, such as suturing. The Company retails OTC drugs and nutritional supplements through a Website (www.dada360.com) that it operates through Zhejiang Shouantang Pharmaceutical Technology Co., Ltd. (Shouantang Technology), a wholly-owned subsidiary, and its subsidiary, Zhejiang Quannuo Internet Technology Co., Ltd. (Quannuo Technology). The Company also has herb farming business cultivating and wholesaling herbs used for TCM. This business is conducted through Hangzhou Qianhong Agriculture Development Co., Ltd. (Qianhong Agriculture), a wholly-owned subsidiary.
The Company approximately offers 1,529 prescription drugs, 322 of which requires a physician’s prescription and the rest requires customer personal information registration only; approximately 1,330 OTC drugs; approximately 533 nutritional supplements, including a variety of healthcare supplements, vitamin, mineral and dietary products; TCM, including drinkable herbal remedies and pre-packaged herbal mixtures for making soup; Sundry products, which includes personal care products, such as skin care, hair care and beauty products, convenience products, such as soft drinks, packaged snacks, and other consumable, cleaning agents, stationeries, and seasonal and promotional items tailored to local consumer demand for convenience and quality, and Medical devices, which includes family planning and birth control products, early pregnancy test products, portable electronic diagnostic apparatus, rehabilitation equipment, and surgical tools, such as hemostats and needle forceps and surgical scissors. During the fiscal year ended March 31, 2013(fiscal 2013), the Company closed 17 locations, including five Jiuying Grand Pharmacy and 11 Jiuzhou Grand Pharmacy stores, as well as the only Quannuo Grand Pharmacy location.
The Company’s subsidiary Quannuo Technology operates and maintains the Website pursuant to the Internet Pharmaceutical Transaction Service Qualification Certificate issued by the State Food and Drug Administration (the SFDA) of Zhejiang Province, which allows them to engage in online retail pharmaceutical sales throughout China. It has established payment methods with banks and online intermediaries such as Alipay, and are cooperating with business-to-consumer online vendors such as Taobao. Online sales accounted for approximately 7.5% of its retail revenue, and 3.4% of its total revenue, for fiscal 2013.
The Company offers approximately 4,066 prescription drugs; approximately 2,523 OTC drugs; approximately 2,054 nutritional supplements; TCM products; Sundry products , and Medical devices. Wholesale revenue accounted for approximately 51.7% of its total revenue for the fiscal 2013.
Herbs, such as fructus rubi, which are used in TCM to promote blood circulation, white atractylodes rhizome , which are used in TCM to treat physical and mental fatigue, atractylodes macrocephala, which are used in TCM to control sweating, and ginkgo seeds, which are used in TCM to treat asthma, are planted on approximately 48 acres of leased land, and have been harvested. Herb farming revenue accounted for approximately 2.8% of its total revenue for the fiscal 2013.
The Company competes with China Nepstar Chain Drugstore Ltd., LBX Pharmacy and Tian Tian Hao Grand Pharmacy.
China Jo-Jo Drugstores Inc
Room 507-513, 5th Floor,
A Building, Meidu Plaza