Financial Performance - For the six months ended September 30, 2023, revenues increased to $78,574,409, up from $72,722,085 in the same period of 2022, representing an increase of approximately 8.5%[8] - Gross profit for the six months ended September 30, 2023, was $15,933,089, compared to $16,920,686 for the same period in 2022, indicating a decrease of about 5.8%[8] - The net loss attributable to China Jo-Jo Drugstores, Inc. for the six months ended September 30, 2023, was $924,247, compared to a net loss of $594,781 for the same period in 2022, reflecting an increase in loss of approximately 55.5%[8] - For the six months ended September 30, 2023, total revenue increased by $5,852,324 or 8.0% to $78,574,409 compared to $72,722,085 for the same period in 2022[20] - The net loss for the six months ended September 30, 2023, was $924,261, compared to a net loss of $595,034 for the same period in 2022[21] Assets and Liabilities - Total current assets as of September 30, 2023, were $69,821,187, an increase from $64,482,790 as of March 31, 2023, representing a growth of about 5.2%[5] - Total liabilities increased to $77,229,581 as of September 30, 2023, compared to $74,303,450 as of March 31, 2023, marking an increase of approximately 3.9%[5] - The company reported total shareholders' equity of $17,537,949 as of September 30, 2023, up from $16,667,152 as of March 31, 2023, indicating an increase of about 5.2%[5] - As of September 30, 2023, total current assets were $69,821,187 and total current liabilities were $69,784,281, resulting in a working capital of $36,906[36] Revenue Breakdown - Revenue from retail drugstores decreased by $6,624,271 or 15.3% to $36,644,373, accounting for 46.6% of total revenue[22] - Online pharmacy sales increased by approximately $1,850,426 or 13.2% to $15,899,743, driven by new e-commerce platforms like TikTok and increased sales on Tmall[25] - Revenue from the wholesale business surged by $10,626,169 or 69.0% to $26,030,293, contributing 33.2% of total revenue[22] - Wholesale revenue increased by $10,626,169 or 69.0% for the six months ended September 30, 2023[27] Expenses - Selling expenses, general and administrative expenses for the six months ended September 30, 2023, totaled $14,044,750, compared to $14,530,119 for the same period in 2022, a decrease of approximately 3.3%[8] - Selling expenses decreased to $14,044,750, representing 17.9% of total revenue, down from 20.0% in the previous year[21] - General and administrative expenses significantly reduced to $1,632,357, accounting for 2.1% of total revenue, compared to 5.0% in the prior year[21] - General and administrative expenses decreased by $2,002,894 or 55.1%, with expenses as a percentage of revenue dropping to 2.1% from 5.0%[33] Stock and Shares - The weighted average number of shares for the six months ended September 30, 2023, was 1,195,746, compared to 226,702 for the same period in 2022, reflecting a significant increase in shares outstanding[8] - The company plans to implement a 1-for-20 reverse stock split effective March 1, 2024, which will retroactively restate all shares and associated amounts[6] Currency and Translation - The company experienced a foreign currency translation loss of $794,542 for the six months ended September 30, 2023, compared to a loss of $3,428,158 for the same period in 2022, showing a significant reduction in losses[8] - The effect of exchange rate fluctuations resulted in a decrease in cash and cash equivalents of $1,970,324 for the period[21] Future Plans and Strategies - The company plans to implement marketing strategies such as local community sales events and a membership care program to counteract the decline in retail drugstore sales[24] - The company plans to continue cultivating ginkgo and maidenhair trees to maximize their market value in the future[27] Investment and Operations - Investment loss for the six months ended September 30, 2023, was $1,642,910, a 100% increase compared to the same period last year[34] - Income from operations was $255,982 for the six months ended September 30, 2023, compared to a loss of $1,244,684 a year ago[34] - Net cash provided by operating activities was $722,702 for the six months ended September 30, 2023, down from $1,057,742 in the same period last year[36] Pharmacy Count - The company had 128 pharmacies as of September 30, 2023, an increase from 111 pharmacies a year earlier[25]
China Jo-Jo Drugstores(CJJD) - 2024 Q2 - Quarterly Report