HANGZHOU, China, December 4, 2014 /PRNewswire/ — China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company"), a leading China-based retail and wholesale distributor of pharmaceutical and healthcare products through its own online and retail pharmacies, today announced that its sales reimbursed by health insurance companies grew significantly both online and offline. From January to October 2014, the management estimates the online private insurance reimbursed revenue have reached approximately $1.62 million (RMB10 million), a 260% increase over the same period in 2013; the reimbursed sales of offline retail drugstores have reached approximately $0.89 million (RMB 5.5 million), a 50% increase year over year.
Starting from July 2011, Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd. ("Jiuzhou Pharmacy"), a subsidiary controlled by the Company has signed and renewed annual sales agreements with several major Chinese insurance companies, including China Life Insurance Company (NYSE: LFC) and Ping’an Insurance Group. According to the agreements, these insurance companies pay Jiuzhou Pharmacy for part of their insured customers’ purchases of medicine and healthcare products from our online and offline drugstores. The private medical insurance in China is supplemental to China National Medical Insurance, and is usually purchased by large profitable enterprises as benefits for their employees.
Jiuzhou Pharmacy was the first drugstore chain in Zhejiang Province to establish this sales model (also known as "Direct Pay to Claims"), with China Life Insurance Company in 2011. Since then, it has signed agreements with other major insurance providers, and third-party vendors, who make Jiuzhou Pharmacy their designated drugstores and clinics.
Mr. Lei Liu, Chairman of the Company, stated, "The health insurance reimbursement sales were initiated by us in Zhejiang Province and has been contributing to the Company’s revenue growth in the past few years. We will continue to develop and expand our sales channel, and strive to bring more benefits to the Company."
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 September 30, 2014, the Company had 51 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," "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.
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