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China Jo-Jo Drugstores Inc. Reports Financial Results For Second Quarter Fiscal 2013 And Announces Second Quarter Fiscal 2013 Conference Call

As of September 30, 2012, the Company had $3.5 million of cash, $64.1 million in current assets and $36.7 million in total liabilities.

Conference Call Information

The Company will host a conference call to discuss its second quarter fiscal year 2013 results on Friday, November 16, 2012, at 8 a.m. Eastern Time. To participate in the conference call, please dial 1-877-941-1427 from North America. International participants can access the call by dialing 1-480-629-9664. 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 beginning the same day at approximately 11a.m. Eastern Time by dialing 1-877-870-5176 or 1-858-384-5517 with pin # 4576909. The replay will also be available on the company website.

CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

   
September 30, March 31,
2012 2012  
 

ASSETS

 
CURRENT ASSETS
Cash $ 3,507,961 $ 3,833,216
Restricted cash 2,731,516 2,818,449
Notes receivable 928,330 -
Trade accounts receivable, net 26,980,178 16,516,671
Inventories 8,770,383 6,875,574
Other receivables 1,209,972 603,294
Advances to suppliers, net 16,287,584 14,347,557
Other current assets   3,635,708   2,853,301
Total current assets   64,051,632   47,848,062
 
PROPERTY AND EQUIPMENT, net   14,936,637   15,647,120
 
OTHER ASSETS
Long term deposits 2,454,194 2,872,219
Other noncurrent assets 5,532,164 5,776,667
Intangible assets, net   1,270,471   2,816,945
Total other assets   9,256,829   11,465,831
 
Total assets $ 88,245,098 $ 74,961,013
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 
CURRENT LIABILITIES
Accounts payable, trade $ 23,835,552 $ 13,906,383
Notes payable 6,541,763 4,208,928
Other payables 1,497,812 782,586
Other payables - related parties 1,162,807 1,458,441
Customer deposit 2,990,743 1,332,141
Taxes payable 227,415 469,606
Accrued liabilities   418,374   417,184
Total current liabilities   36,674,466   22,575,269
 
Purchase option derivative liability   8,672   34,419
Total liabilities   36,683,138   22,609,688
 
COMMITMENTS AND CONTINGENCIES
 
STOCKHOLDERS' EQUITY
Preferred stock; $0.001 par value; 10,000,000 shares authorized; nil issued and outstanding as of

September 30, 2012 and March 30, 2012

- -
Common stock; $0.001 par value; 250,000,000 shares authorized; 13,666,370 and 13,589,621

shares issued and outstanding as of September 30, 2012 and March 31, 2012

13,666 13,589
Additional paid-in capital 16,950,199 16,853,039
Statutory reserves 1,309,109 1,309,109
Retained earnings 30,435,538 31,429,100
Accumulated other comprehensive income   2,855,108   2,747,561
Total stockholders' equity   51,563,620   52,352,398
 
Noncontrolling interests   (1,660 )   (1,073 )
Total equity   51,561,960   52,351,325
 
Total liabilities and stockholders' equity $ 88,245,098 $ 74,961,013
 

CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

     

For the three months ended

September 30,

For the six months ended

September 30,

2012   2011 2012   2011
REVENUES, NET $ 26,665,114 $ 22,224,947 $ 59,512,445 $ 43,652,806
 
COST OF GOODS SOLD   23,242,917   15,967,051   50,945,471   30,525,587
 
GROSS PROFIT   3,422,197   6,257,896   8,566,974   13,127,219
 
SELLING EXPENSES 2,102,621 2,711,494 3,960,845 4,089,794
GENERAL AND ADMINISTRATIVE EXPENSES   1,310,313   1,320,521   4,156,892   2,395,304
TOTAL OPERATING EXPENSES   3,412,934   4,032,015   8,117,737   6,485,098
 
INCOME FROM OPERATIONS 9,263 2,225,881 449,237 6,642,121
 
OTHER INCOME (EXPENSE), NET (90,332 ) 187,166 8,367 206,586
IMPAIRMENT OF GOODWILL (1,473,606 ) - (1,473,606 ) -
CHANGE IN FAIR VALUE OF PURCHASE OPTION DERIVATIVE LIABILITY   25,905   34,356   25,747   96,988
 
(LOSS) INCOME BEFORE INCOME TAXES (1,528,770 ) 2,447,403 (990,255 ) 6,945,695
 
PROVISION FOR INCOME TAXES   10   817,990   3,892   2,073,553
 
NET (LOSS) INCOME (1,528,780 ) 1,629,413 (994,147 ) 4,872,142
 
ADD: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST   331   4,300   585   4,300
 
NET (LOSS) INCOME ATTRIBUTABLE TO CHINA JO-JO DRUGSTORES, INC. (1,528,449 ) 1,633,713 (993,562 ) 4,876,442
 
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustments   52,538   508,923   107,547   1,083,488
 
COMPREHENSIVE INCOME (LOSS) $ (1,475,911 ) $ 2,142,636 $ (886,015 ) $ 5,959,930
 
WEIGHTED AVERAGE NUMBER OF SHARES:
Basic   13,588,569   13,547,157   13,575,550   13,541,136
Diluted   13,588,569   13,547,157   13,575,550   13,541,136
 
(LOSS) EARNINGS PER SHARE:
Basic $ (0.11 ) $ 0.12 $ (0.07 ) $ 0.36
Diluted $ (0.11 ) $ 0.12 $ (0.07 ) $ 0.36
 

CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 
Six months ended

September 30,

2012   2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (994,147 ) $ 4,872,142
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 1,295,175 1,118,932
Stock compensation 97,236 52,133
Bad debt expense 834,772 182,398
Impairment of Goodwill 1,473,606 -
Change in fair value of purchase option derivative liability (25,747 ) (96,988 )
Change in operating assets:
Accounts receivable, trade (11,009,813 ) (2,435,921 )
Notes receivable (928,801 ) -
Inventories (1,887,064 ) 1,282,841
Other receivables (761,810 ) (523,817 )
Advances to suppliers (2,040,116 ) 2,173,332
Other current assets (779,191 ) 5,610,337
Long term deposit 421,871 (18,485 )
Other noncurrent assets 251,938 106,115
Change in operating liabilities:
Accounts payable, trade 9,916,586 4,279,623
Other payables and accrued liabilities 715,342 (1,046,197 )
Customer deposits 1,657,754 676,373 )
Taxes payable   (242,908 )   (495,891 )
Net cash provided by (used in) operating activities   (2,005,317 )   15,736,927
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (234,151 ) (2,155,443 )
Advance payments on equipment purchase - (774,500 )
Additions to leasehold improvements (253,163 ) (1,373,605 )
Payments on construction-in-progress - (6,729,437 )
Net payments for business acquisitions   -   (3,282,727 )
Net cash used in investing activities   (487,314 )   (14,315,712 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in restricted cash 90,544 193,300
Payments on notes payable - (3,703,942 )
Proceeds from shareholders - 58,862
Increase in notes payable 2,328,686 -
Decrease in other payables- related parties   (295,954 )   -
Net cash (used in) provided by financing activities   2,123,276   (3,451,780 )
 
EFFECT OF EXCHANGE RATE ON CASH   44,100   130,934
 
DECREASE IN CASH (325,255 ) (1,899,631 )
 
CASH, beginning of Period   3,833,216   6,489,905
 
CASH, end of Period $ 3,507,961 $ 4,590,274
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes $ - $ 2,428,768
Non-cash investing activities
Transfer from construction-in-progress to leasehold improvement $ 2,703,428 $ -
Non-cash financing activities
Notes payable transferred to vendors $ - $ 3,431,091
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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