HANGZHOU, China, June 11, 2015 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company", "China Jo-Jo", "Our" or "We") is a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its online and retail pharmacies, today announced that, based on the Company's preliminary data, annual sales from the Company's online pharmacy grew at least 90% year over year with an over 200% increase from its own online pharmacy site and annual sales from its offline drugstores grew by more than 20% in the year ended March 31, 2015. For the first time in the Company's history, online pharmacy sales reached approximately US$14 million in fiscal year2015, accounted for over 18% of its total annual revenue, as compared to about 11% in fiscal year 2014.
Since 2013, China Jo-Jo's management team has been directing their focus towards building and expanding its online pharmacy business in China, with ultimate goals to support long term organic growth, improve profit margin and enhance shareholders' return. The preliminary result from our online pharmacy division, which exceeds the Company's internal projection of $13 million, reflected our balanced strategy of collaboration with third-party B2C e-commerce partners, such as Taobao, JD.com and Amazon.com, while building our own online pharmacy brand, www.dada360.com. During the fiscal year 2015, our business was also positively impacted by new initiatives, such as close cooperation with certain large commercial insurance companies in China, partnership with Shanghai Jianbao Technology Co., Ltd. ("Shanghai Jianbao"), a leader in China's Pharmacy Benefit Management (PBM) sector, as well as the launching of Alipay service, China's dominant mobile payment system, to our customers. China Jo-Jo expects the growth in its online pharmacy division will continue in the current fiscal year and beyond.
The Company is currently working closely with its newly engaged independent auditing firm, BDO China Shu Lun Pan Certificated Public Accountants LLP ("BDO China") to complete its annual report for the fiscal year 2015.Managementanticipates filling the annual report with the Securities Exchange Commission on or before June 29, 2015.
About China Jo-Jo Drugstores, Inc.
China Jo-Jo Drugstores, Inc., through its own retail drugstores, wholesale distributor and online pharmacy, is a leading retailer and wholesale distributor of pharmaceutical and healthcare products in China. As of March 31, 2015, the Company had 59 retail pharmacies in Hangzhou. The Company's wholesale subsidiary not only supplies its retail stores, but also distributes drug and other healthcare products to other drugstores and drug vendors. The Company routinely posts important information on its corporate websites at www.jiuzhou-drugstore.com (Chinese) and www.chinajojodrugstores.com (English).
Forward Looking Statement
Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "estimate," "may," "will," "should," "project," "plan," "seek," "intend," "anticipate," the negatives thereof, or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. It is routine for the Company's internal projections and expectations to change as the quarter and year progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which the Company bases its expectations may change. Although these expectations may change, the Company is under no obligation to inform you if they do. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of numerous factors, including the risks associated with the effect of changing economic conditions in the People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products. Readers are referred to the reports and documents filed from time to time by the Company with the Securities and Exchange Commission for a discussion of these and other important risk factors that could cause actual results to differ from those discussed in forward-looking statements. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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