Same-store sales increased by $4.50 million, or 9.2 %, period over period, mainly from sales of pharmaceutical products covered by government-sponsored medical insurance programs. Revenue also increased from operating additional new store locations.
Gross profit increased 39.0% to $19.95 million from $14.35 million. Our gross margin decreased from 29.3% to 28.8% as a result of the lower profit margin from Jiuxin Medicine’s wholesale activities.
Selling expenses increased 97.3% to $6.59 million from $3.34 million. The increase is primarily a result of operating 60 store locations as compared to 49 stores that we operated a year earlier. Selling expenses as a percentage of revenue increased from 6.8% to 9.5%.
General and administrative expenses increased 65.7% to $4.57 million from $2.76 million a year ago. General and administrative expenses as a percentage of our revenue increased from 5.6% to 6.6%. The increase is mainly attributable to the establishment of new subsidiaries in the last calendar year and expenses of being a public company.Income from operations increased 6.6% to $8.79 million from $8.25 million a year ago. Operating margin fell to 12.7% from 16.9%. Net income attributable to controlling interest increased 7.2% to $6.45 million from $6.02 million a year ago. Balance Sheet Highlights As of December 31, 2011, the Company had $4.34 million of cash, $38.73 million in current assets and $16.34 million in current liabilities. Conference Call Information The Company will host a conference call to discuss third quarter results on Thursday, Feb. 16, 2012, at 8:00 a.m. Eastern Time. To participate in the conference call, please dial 1-877-941-1428 from North America. International participants can access the call by dialing 1-480-629-9665. A live audio webcast of this conference call will be available under the Investors Relations section of the Company's website at http://www.chinajojodrugstores.com. A replay of the call will be available from February 16, 2012 approximately 11 a.m. Eastern Time to February 23, 2012 at 11:59 p.m. Eastern Time by dialing 1-877-870-5176 or 1-858-384-5517 (international) with pin #4515605. The replay will also be available on the company website. About China Jo-Jo Drugstores, Inc. China Jo-Jo Drugstores, Inc. primarily operates a retail pharmacy chain in Zhejiang and Shanghai, offering both western and traditional Chinese medicine, including prescription and over-the-counter drugs, sundries, nutritional supplements and medical devices. China Jo-Jo Drugstores also provides on-site physician consulting. As of December 31, 2011, the Company operated 60 stores.