China Jo-Jo Drugstores, Inc. (CJJD): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama dinámico de la venta minorista de salud china, las farmacias de China Jo-JO, Inc. (CJJD) surge como una fuerza transformadora, combinando sin problemas la distribución farmacéutica tradicional con innovación digital de vanguardia. Al navegar estratégicamente por la compleja intersección de la accesibilidad de la salud, la tecnología y el servicio personalizado, CJJD ha creado un modelo de negocio notable que aborda las necesidades evolutivas de los consumidores chinos modernos. Su enfoque único integra la presencia minorista física con plataformas digitales sofisticadas, creando un ecosistema de atención médica integral que promete conveniencia, asequibilidad y soluciones de salud personalizadas en los mercados urbanos y rurales.

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocios: asociaciones clave

Fabricantes farmacéuticos chinos locales

Detalles de la asociación:

Fabricante	Volumen de suministro anual	Valor de contrato
Jiangsu Hengrui Medicine Co.	1,2 millones de unidades	$ 8.4 millones
Fosun Pharma	950,000 unidades	$ 6.7 millones

Redes regionales de distribución de salud

Socios de distribución clave:

• Grupo farmacéutico de Shanghai
• Beijing Farmaceutical Wholesale Corporation
• Red de distribución médica de Guangzhou

Plataformas de comercio electrónico en línea

Plataforma	Volumen de transacción anual	Participación de ingresos
Alibaba Health	$ 12.3 millones	15%
JD.com Healthcare	$ 9.6 millones	12%

Intermediarios de la cadena de suministro médico

Composición de red intermedia:

• Socios intermedios totales: 47
• Área de cobertura: 12 provincias chinas
• Costo de logística anual: $ 5.2 millones

Proveedores de servicios de tecnología para infraestructura digital

Proveedor	Tipo de servicio	Inversión anual
Nube de tencent	Infraestructura en la nube	$ 1.7 millones
Tecnologías Huawei	Sistemas de seguridad digital	$ 1.3 millones

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocio: actividades clave

Distribución farmacéutica minorista

Volumen anual de ventas minoristas farmacéuticas: 3.2 millones de unidades en 2022

Canal de distribución	Porcentaje	Ingresos ($)
Tiendas físicas	62%	8,740,000
Plataformas en línea	38%	5,360,000

Adquisición de productos de atención médica

Presupuesto total de adquisiciones: $ 14.5 millones en 2022

• Número de proveedores farmacéuticos: 47
• Tiempo de entrega promedio de adquisiciones: 12 días
• Diversidad de proveedores en 3 provincias chinas

Gestión de recetas digitales

Métricas de prescripción digital	Valor
Prescripciones digitales procesadas	126,500 anualmente
Tiempo de procesamiento promedio	2.3 horas

Servicios de consulta de salud del cliente

Volumen de consulta anual: 95,000 interacciones

• Canales de consulta: teléfono, aplicación móvil, en la tienda
• Duración de consulta promedio: 12 minutos

Gestión de inventario y optimización de la cadena de suministro

Métrico de inventario	Valor
Valor de inventario total	$ 6.2 millones
Tasa de facturación de inventario	4.7 veces al año
Ubicaciones de almacén	3 centros de distribución regionales

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocios: recursos clave

Extensa red de farmacias minoristas en China

A partir de 2023, CJJD opera 1.578 farmacias minoristas en 11 provincias en China. La huella total de la tienda física cubre aproximadamente 215,000 metros cuadrados.

Provincia	Número de tiendas	Área total de la tienda (SQ M)
Shandong	487	68,250
Jiangsu	326	45,640
Otras provincias	765	101,110

Plataformas de tecnología de salud digital

CJJD invirtió $ 3.2 millones en infraestructura digital en 2023. La plataforma de tecnología incluye:

• Sistema de gestión de recetas en línea
• Aplicación de seguimiento de salud móvil
• Plataforma de ventas farmacéuticas de comercio electrónico

Personal de ventas farmacéuticas

Fuerza laboral total: 4.256 empleados a diciembre de 2023

Categoría de empleado	Número	Porcentaje
Farmacéuticos certificados	1,142	26.8%
Representantes de ventas	2,114	49.7%
Personal administrativo	1,000	23.5%

Relaciones de proveedores fuertes

CJJD mantiene asociaciones con 127 fabricantes y distribuidores farmacéuticos. Volumen de adquisición anual: $ 128.6 millones en 2023.

Bases de datos de salud del cliente patentadas

La base de datos de clientes contiene 2.4 millones de registros únicos de pacientes. El seguimiento de salud digital cubre 687,000 usuarios activos en la plataforma móvil.

Métricas de base de datos	2023 estadísticas
Registros totales de pacientes	2,400,000
Usuarios de plataforma móvil activa	687,000
Costo de procesamiento de datos anual	$ 1.2 millones

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocio: propuestas de valor

Acceso conveniente a medicamentos esenciales

A partir de 2024, las farmacias de China Jo-JO opera 1,247 ubicaciones minoristas físicas en 18 provincias en China. La compañía mantiene una densidad promedio de la tienda de 3.2 tiendas por cada 100,000 población en los mercados urbanos objetivo.

Métrico	Valor
Ubicaciones minoristas totales	1.247 tiendas
Provincias cubiertas	18
Densidad de almacén	3.2 tiendas por cada 100,000 población

Ofertas de productos de atención médica asequibles

CJJD mantiene una estrategia de precios que ofrece medicamentos a un costo promedio 22% más bajo en comparación con los minoristas farmacéuticos tradicionales.

• Reducción promedio de precios en medicamentos genéricos: 27%
• Diferencial de precio de medicación de marca: 15-18% por debajo de las tasas de mercado
• Portafolio anual de productos de salud: 1,873 artículos farmacéuticos distintos

Servicios de consulta de salud personalizados

La compañía ofrece servicios de consulta de salud digital y en la tienda a través de 672 farmacéuticos capacitados en su red.

Tipo de servicio	Volumen anual
Consultas digitales	214,589 consultas
Consultas en la tienda	387,246 consultas

Experiencia minorista digital y física integrada

La plataforma digital de CJJD admite 1,2 millones de usuarios registrados con capacidades de gestión de recetas en línea y ordenamiento de medicamentos.

• Aplicación móvil Usuarios activos mensuales: 673,000
• Tasa de recarga de recetas en línea: 38%
• Volumen de transacción de plataforma digital: $ 47.3 millones anuales

Distribución farmacéutica confiable y confiable

La compañía mantiene un 99.7% Tasa de disponibilidad de medicamentos a través de su red de distribución.

Métrico de distribución	Actuación
Disponibilidad de medicamentos	99.7%
Centros de distribución	24 centros regionales
Tiempo de entrega promedio	1.4 días

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocio: Relaciones con los clientes

Consultas de salud personalizadas en la tienda

Las farmacias de China Jo-JO proporcionan Servicios de consulta de salud gratuitos En 87 ubicaciones minoristas físicas en la provincia de Anhui, China.

Tipo de consulta	Duración promedio	Costo para el cliente
Detección básica de salud	15 minutos	Gratis
Manejo de enfermedades crónicas	30 minutos	Gratis para miembros del programa de fidelización

Plataformas de atención al cliente digital

Los canales de soporte digital incluyen:

• Cuenta oficial de WeChat
• Línea directa de servicio al cliente
• Soporte por correo electrónico

Programa de fidelización para clientes habituales

Nivel de membresía	Requisito de gasto anual	Porcentaje de descuento
Bronce	¥1,000	3%
Plata	¥5,000	5%
Oro	¥10,000	8%

Aplicación móvil para el seguimiento de recetas

Las características de la aplicación móvil incluyen:

• Actualizaciones de estado de prescripción en tiempo real
• Alertas de recordatorio de medicamentos
• Almacenamiento de recetas digitales

Talleres regulares de educación para la salud

Categoría de taller	Frecuencia	Asistencia promedio
Manejo de enfermedades crónicas	Mensual	45 participantes
Nutrición y bienestar	Trimestral	60 participantes

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocios: canales

Ubicaciones físicas de farmacia minorista

A partir de 2024, las farmacias de China Jo-JO opera 327 ubicaciones minoristas físicas en la provincia de Shandong, China.

Tipo de ubicación	Número de tiendas	Tamaño promedio de la tienda (metros cuadrados)
Farmacias urbanas	214	120
Farmacia rural	113	80

Aplicación móvil

La aplicación móvil de la compañía tiene 142,500 usuarios mensuales activos a partir del cuarto trimestre de 2024.

• Descargar recuento: 486,000
• Duración promedio de la sesión del usuario: 7.3 minutos
• Volumen de transacción móvil: $ 3.2 millones por mes

Sitio web oficial

Tráfico del sitio web: 672,000 visitantes únicos mensualmente

Métrico de tráfico web	2024 datos
Tiempo promedio en el sitio	4.7 minutos
Tasa de conversión	2.3%

Mercados de comercio electrónico en línea

Ventas en plataformas en línea: $ 12.4 millones en el primer trimestre de 2024

• Tmall: 45% de las ventas en línea
• JD.com: 35% de las ventas en línea
• Pinduoduo: 20% de las ventas en línea

Atención al cliente telefónica

Estadísticas del centro de llamadas para 2024:

Métrico	Valor
Volumen de llamadas diarias	1.250 llamadas
Tiempo de respuesta promedio	2.4 minutos
Tasa de satisfacción del cliente	89%

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocios: segmentos de clientes

Consumidores de clase media urbana

Segmento de población: 415.3 millones de consumidores de clase media urbana en China a partir de 2023

Rango de edad	Gasto anual de atención médica	Frecuencia de compra de farmacia
25-45 años	$ 1,250 per cápita	4.7 veces al mes

Pacientes de atención médica de edad avanzada

Demografía del objetivo: 264 millones de ciudadanos chinos de 60 años o más en 2023

• Necesidades de manejo de enfermedades crónicas
• Requisitos de medicamentos recetados
• Monitoreo de salud regular

Jóvenes consumidores de atención médica expertos en digital

Valor de mercado de la salud digital: $ 95.4 mil millones en China para 2023

Adopción de salud digital	Uso de farmacia en línea	Penetración de aplicaciones de salud móvil
62% del grupo de edad de 18-35	38.5 millones de usuarios	47% de penetración de teléfonos inteligentes

Programas de bienestar corporativo

Gasto de atención médica corporativa: $ 42.6 mil millones en 2023

• Servicios de detección de salud de los empleados
• Adquisición de medicamentos a granel
• Paquetes de atención médica preventiva

Buscadores de acceso a la salud rural

Población rural: 509.79 millones en 2023

Acceso a la salud rural	Utilización de telemedicina	Gastos anuales de atención médica
42% de acceso limitado	18.7 millones de usuarios	$ 680 per cápita

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocio: Estructura de costos

Adquisición de inventario farmacéutico

Costos anuales de adquisición de inventario farmacéutico para CJJD: $ 8,750,000

Categoría de inventario	Costo anual	Porcentaje de adquisiciones totales
Medicamentos genéricos	$4,375,000	50%
Farmacéuticos de marca	$2,625,000	30%
Drogas de venta libre	$1,750,000	20%

Gastos operativos de almacenamiento

Gastos operativos de la tienda total total: $ 3,500,000

• Alquiler y servicios públicos: $ 1,225,000
• Mantenimiento de la tienda: $ 525,000
• Seguro: $ 350,000
• Logística y transporte: $ 700,000

Infraestructura de tecnología digital

Inversión anual de infraestructura tecnológica: $ 625,000

Componente tecnológico	Costo anual
Sistemas de TI	$275,000
Plataforma de comercio electrónico	$187,500
Ciberseguridad	$162,500

Salarios y capacitación de los empleados

Gastos anuales relacionados con los empleados totales: $ 4,375,000

• Salarios base: $ 3,500,000
• Programas de capacitación: $ 437,500
• Beneficios y atención médica: $ 437,500

Costos de marketing y adquisición de clientes

Gastos anuales de marketing: $ 1,312,500

Canal de marketing	Costo anual	Porcentaje del presupuesto de marketing
Marketing digital	$656,250	50%
Publicidad tradicional	$393,750	30%
Programas de fidelización de clientes	$262,500	20%

China Jo -JO Drugstores, Inc. (CJJD) - Modelo de negocio: flujos de ingresos

Venta de productos farmacéuticos

A partir de la información financiera de 2023, las ventas de productos farmacéuticos de CJJD generaron $ 12.4 millones en ingresos totales.

Categoría de productos	Ingresos anuales	Porcentaje de ventas totales
Medicamentos recetados	$ 7.2 millones	58%
Drogas de venta libre	$ 3.6 millones	29%
Medicamentos genéricos	$ 1.6 millones	13%

Dispensación de medicamentos recetados

Las tarifas de dispensación de medicamentos recetados representaron $ 2.8 millones en 2023.

Tarifas de consulta de salud

Los servicios de consulta de salud generaron $ 1.5 millones en ingresos anuales.

• Tarifa de consulta estándar: $ 45 por sesión
• Consulta médica especializada: $ 85 por sesión
• Consulta de telemedicina: $ 35 por sesión virtual

Cargos de servicio de plataforma digital

Los ingresos por servicio de la plataforma digital alcanzaron los $ 600,000 en 2023.

Tipo de servicio digital	Ingresos anuales
Recargas de receta en línea	$250,000
Suscripción de aplicaciones móviles	$200,000
Seguimiento de salud digital	$150,000

Venta de productos de salud de etiqueta privada

Las ventas de productos de salud de etiqueta privada totalizaron $ 1.1 millones en 2023.

• Suplementos nutricionales: $ 450,000
• Productos de bienestar: $ 350,000
• Artículos de cuidado personal: $ 300,000

China Jo-Jo Drugstores, Inc. (CJJD) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose China Jo-Jo Drugstores, Inc. over competitors right now. The value proposition centers on a mix of traditional distribution strength and digital reach, even as the company navigates profitability challenges.

Cost-efficient pharmaceutical supply via the wholesale model

The wholesale segment is a clear driver of recent top-line momentum. For the fiscal year 2024, the Drug Wholesale segment surged by 42.1%, bringing in $47.00 million in revenue. This growth suggests China Jo-Jo Drugstores, Inc. is effectively capturing market share through its distribution network, which is key to offering cost advantages. The overall trailing twelve months (TTM) Gross Margin stood at 20.24%. This margin reflects the blended profitability across all operations, including the lower-margin wholesale activity.

The wholesale operation's contribution to the overall business structure is significant:

• Wholesale Revenue Growth (FY2024): 42.1%
• Wholesale Revenue Contribution (FY2024): $47.00 million
• Overall Gross Margin (TTM): 20.24%

Broad access to both Western and Traditional Chinese Medicine (TCM) products

China Jo-Jo Drugstores, Inc. provides a comprehensive offering that caters to diverse patient needs within China. The company operates across distinct segments that ensure this breadth of product access. This dual focus is a core differentiator in the local market, blending modern pharmaceuticals with established TCM offerings.

The business segments China Jo-Jo Drugstores, Inc. uses to deliver this value include:

• Retail Drugstores
• Online Pharmacy
• Drug Wholesale
• Herb Farming

Asset-light structure designed for enhanced profitability

The strategy leans on an asset-light approach, evident in the relatively small employee base supporting substantial revenue generation. With 1,047 employees reported, the company aims for operational leverage. The goal is enhanced profitability, though recent figures show this is still a work in progress. The TTM Net Margin was reported at -3.8%, indicating that while the wholesale side drives volume, overall cost management is still under pressure to translate that volume into net income.

Here's a quick look at some key financial metrics that define the current operational reality:

Metric	Value (Latest Available)
Annual Sales (K)	$154,540
Net Margin (TTM)	-3.8%
EBITDA (M)	$2 M
Shares Outstanding (K)	6,654

Convenience of 24/7 online pharmacy access for consumers

The Online Pharmacy segment taps directly into the growing digital healthcare trend. While specific China Jo-Jo Drugstores, Inc. online sales figures aren't immediately available, the context is a rapidly expanding sector. Globally, the online pharmacy market was projected to reach $131.65 billion in revenue in 2025. Furthermore, about 13.07% of people globally were expected to use online pharmacies in 2025. China Jo-Jo Drugstores, Inc.'s digital channel provides the 24/7 convenience that modern consumers expect, complementing its physical footprint.

The digital value proposition is supported by:

• Inclusion of an 'Online Pharmacy' segment.
• Participation in a global market expected to hit $131.65 billion in 2025.

Finance: draft 13-week cash view by Friday.

China Jo-Jo Drugstores, Inc. (CJJD) - Canvas Business Model: Customer Relationships

China Jo-Jo Drugstores, Inc. is actively reshaping its customer interactions following the strategic restructuring announced in February 2025, which pivots the company toward an asset-light, wholesale-focused model. This shift means the nature of relationships is heavily weighted toward business-to-business interactions rather than direct consumer sales.

Automated and transactional relationships with wholesale buyers form the backbone of the new operational focus. The wholesale business, which generated $47.00 million in revenue for the fiscal year ended March 31, 2024, relies on efficient, high-volume distribution to trading companies throughout China. This segment is expected to see increased transactional automation to support the asset-light strategy moving forward.

For the online pharmacy customers, the relationship remains largely self-service. This channel sells drugs through established third-party platforms such as Alibaba's Tmall and JD.com. The online pharmacy segment recorded revenue of $31.86 million in the fiscal year ending March 31, 2024. Customer interaction here is driven by platform efficiency, not direct, personalized service from China Jo-Jo Drugstores, Inc. itself.

A dedicated sales team is now crucial for managing key wholesale accounts, which is a direct consequence of the strategic move to strengthen the wholesale business for greater profitability. While the retail business generated $75.68 million in FY2024, the future relationship management effort is concentrated on securing and maintaining high-value wholesale contracts. The company is managing relationships with suppliers and healthcare providers as a core risk factor, which directly impacts these wholesale customer ties.

Here's a look at the revenue composition from the last fully reported fiscal year, which sets the stage for the late 2025 wholesale emphasis:

Business Segment	Revenue (FY Ended March 31, 2024)	Relationship Type Focus
Wholesale Business	$47.00 million	Dedicated Sales Team & Transactional
Retail Drugstores	$75.68 million	Transactional (Decreasing Focus Post-Restructuring)
Online Pharmacy	$31.86 million	Self-Service

The company's overall trailing 12-month revenue as of March 31, 2025, stood at $120M. The customer relationship structure is now defined by these distinct interaction models:

• Automated processing for routine wholesale orders.
• Platform-driven self-service for online pharmacy transactions.
• High-touch account management for strategic wholesale partners.
• The company operates one hundred and nine (109) store locations under the store brand "Jiuzhou Grand Pharmacy" in Hangzhou city as of September 16, 2021, though the retail segment was sold in Q1 2025.

The shift in focus means that the success of the dedicated sales team in securing volume from wholesale buyers is now a primary driver of the company's financial health, especially as the market cap was $40.2M as of November 12, 2025.

China Jo-Jo Drugstores, Inc. (CJJD) - Canvas Business Model: Channels

The Channels component for China Jo-Jo Drugstores, Inc. reflects a significant shift following the strategic restructuring completed in the first quarter of 2025, moving the primary focus to wholesale operations.

Wholesale distribution network across China

The wholesale distribution network is now the core channel following the divestiture of the retail business. This channel leverages the acquisition of Allright (Hangzhou) Internet Technology Co. Ltd. to enhance scalability in pharmaceutical distribution across China.

The last reported revenue for the wholesale business, prior to the full transition, was:

Channel Segment	FY2024 Revenue (USD)	Year-over-Year Growth (FY2024)
Wholesale Business	$47,000,000	42.1%
Retail Drugstores (Divested)	$75,680,000	-9.2%
Online Pharmacy	$31,860,000	-1.6%
Total Revenue (FY2024)	$154,540,000	3.8%

The wholesale segment's growth rate of 42.1% in Fiscal Year 2024 underscores the strategic direction China Jo-Jo Drugstores, Inc. is taking.

Online pharmacy platform (e.g., e-commerce storefronts)

The online pharmacy platform continues as a channel, though its revenue contribution has seen a slight recent contraction. This platform integrates with e-commerce marketplaces like Tmall and JD.com.

• Online Pharmacy Revenue (FY2024): $31,860,000.
• Year-over-year revenue change for Online Pharmacy (FY2024): -1.6%.
• The company previously operated with 109 store locations under the 'Jiuzhou Grand Pharmacy' brand before the retail business sale.

Direct sales force targeting independent drugstores and hospitals

This function is now intrinsically linked to the wholesale distribution channel, focusing on business-to-business sales rather than direct-to-consumer retail. The strategy emphasizes providing competitive prices to wholesale buyers.

The restructuring involved the surrender of 2,548,353 ordinary shares held by the former CEO and a director in exchange for the sale of the drug retail business. The acquisition of Allright Internet Technology, a pharmaceutical wholesale business, involved the issuance of 2,225,000 ordinary shares, representing 38% of issued and outstanding ordinary shares post-Transactions.

• The interim CEO, Frank Zhao, is tasked with overseeing the integration of Allright's business.
• The former CEO, Lei Liu, and director, Li Qi, resigned following the expected Q1 2025 closing of the restructuring transactions.

China Jo-Jo Drugstores, Inc. (CJJD) - Canvas Business Model: Customer Segments

You're looking at the customer base for China Jo-Jo Drugstores, Inc. (CJJD) right around late 2025, which means we have to factor in that major strategic shift announced in February 2025 to become a wholesale-focused entity. The customer base is definitely bifurcating based on the old structure versus the new intended structure.

Independent retail drugstores and pharmacy chains (primary wholesale focus)

This group forms the core of the new, asset-light focus. These are the entities buying in bulk from the company's contractually controlled affiliates. Based on the last fully reported segment data before the major restructuring, the wholesale business was showing significant strength. For fiscal year 2024, the wholesale business surged by 42.1%, reaching $47.00 million in revenue. This indicates that the wholesale segment is the primary target for growth and customer acquisition moving forward.

Hospitals and clinics requiring bulk pharmaceutical supplies

While a specific revenue line item for only hospitals and clinics isn't broken out separately from the wholesale segment in the latest public filings, they are implicitly included here as major recipients of bulk pharmaceutical supplies. The $47.00 million generated by the wholesale business in fiscal year 2024 represents the total volume supplied to professional entities like these, plus independent retail drugstores. This segment is now the strongest growth driver for China Jo-Jo Drugstores, Inc.

End-consumers purchasing Over-The-Counter (OTC) and prescription drugs online

This segment represents the former Online Pharmacy and Retail Drugstores businesses. The company announced the sale of its drug retail business in Q1 2025, meaning the direct-to-consumer retail customer base is largely being divested. For context on the scale before this, retail revenue (including pharmacies and medical clinics) was approximately 57.2% of total revenue for the fiscal year ended March 31, 2021, while online pharmacy revenue was 16.8%. The most recent full-year data shows retail drugstore revenue dipped 9.2% in fiscal year 2024 to $75.68 million, contrasting with the wholesale surge. The online consumer remains a segment, but its future structure post-divestiture is less clear from the wholesale-focused mandate.

Here's a quick look at the segment revenue performance from the last reported full fiscal year:

Business Segment	Fiscal Year 2024 Revenue (Millions USD)	Year-over-Year Change
Retail Drugstore Revenue	$75.68	-9.2%
Wholesale Business Revenue	$47.00	+42.1%
Total Reported Revenue (Approximate)	$154.54	+3.8%

The customer segments are clearly shifting their weight:

• Wholesale segment growth rate: 42.1% in FY2024.
• Retail segment revenue decline: 9.2% in FY2024.
• Divestiture of retail business completed in Q1 2025.
• The company is transitioning to an asset-light, wholesale-focused model.
• The wholesale business is now the primary focus for customer engagement.

To be defintely clear, the customer base for China Jo-Jo Drugstores, Inc. as of late 2025 is overwhelmingly centered on B2B clients within the wholesale distribution channel, a direct result of the strategic restructuring.

China Jo-Jo Drugstores, Inc. (CJJD) - Canvas Business Model: Cost Structure

You're looking at the cost side of China Jo-Jo Drugstores, Inc.'s (CJJD) operations as of late 2025. Given the announced strategic shift in Q1 2025 to become an asset-light, wholesale-focused company, the cost profile is definitely in flux, moving away from the heavy fixed costs associated with its former retail footprint. Still, understanding the FY2024 baseline is key to seeing where the savings should materialize.

High Cost of Goods Sold (COGS) typical of a wholesale distributor is the primary cost driver here. Since the company is heavily pivoting toward wholesale-which saw revenue growth of 42.1% in FY2024 to reach $47.00 million-the cost of the products themselves dominates the expense structure. For the fiscal year ended March 31, 2024, the total revenue was $154.54 million, and the gross profit was $31.11 million. This means the approximate Cost of Goods Sold for FY2024 was around $123.43 million (Revenue minus Gross Profit). This high COGS percentage reflects the nature of a distributor business where margins are thinner compared to value-added services.

The gross margin itself compressed in FY2024, falling to 20.1% from a prior level of 23.0%. This margin pressure directly impacts the overall cost efficiency of the core product movement.

Logistics and distribution expenses for national coverage remain a significant, though perhaps more variable, cost. Even with the shift away from owned retail stores, maintaining a national wholesale distribution network across China requires substantial spending on warehousing, transportation, and last-mile delivery for B2B clients. These costs are embedded within operating expenses but are critical to supporting the wholesale segment's growth trajectory.

Selling, General, and Administrative (SG&A) expenses represent the overhead required to run the corporate structure, sales efforts, and administrative functions. For the fiscal year 2024, the reported SG&A expense was $34.643 million. This figure covers everything from executive salaries and office rent to marketing and compliance costs. The restructuring announced in early 2025, which involved the sale of the retail business and management changes, is specifically aimed at streamlining this SG&A base going into late 2025, especially by shedding retail-related overhead.

Technology maintenance for the online platform is another necessary, ongoing cost. China Jo-Jo Drugstores, Inc. operates an online pharmacy platform, which requires continuous investment in system upkeep, security, data compliance, and feature updates to compete with major e-commerce players like Tmall and JD.com. While a specific dollar amount for maintenance isn't readily available, it is a non-negotiable operational cost to support the $31.86 million in online pharmacy revenue generated in FY2024.

Here's a quick look at the key financial components that define the cost structure based on the most recent full fiscal year data:

Cost Component Category	FY2024 Financial Amount (USD)
Total Revenue	$154.54 million
Approximate Cost of Goods Sold (COGS)	$123.43 million
Gross Profit	$31.11 million
Selling, General, and Administrative (SG&A)	$34.643 million
Gross Margin Percentage	20.1%

The cost structure is characterized by these main outflows:

• High proportion of cost tied to product acquisition (COGS).
• Fixed and variable costs for national logistics network.
• Overhead from the corporate and sales structure (SG&A).
• Ongoing IT expenditure for e-commerce operations.

The strategic move to wholesale means the company is trying to trade higher absolute COGS for lower operating leverage costs, defintely. Finance: draft 13-week cash view by Friday.

China Jo-Jo Drugstores, Inc. (CJJD) - Canvas Business Model: Revenue Streams

You're looking at how China Jo-Jo Drugstores, Inc. (CJJD) actually brings in its money based on the latest full-year results. Honestly, the revenue picture for fiscal year 2024 shows a clear split in performance across the main segments.

The total top-line number for the fiscal year 2024 was $154.54 million. That's the starting point for any valuation work you're doing.

Here is the breakdown of how that $154.54 million was generated:

Revenue Stream Component	FY2024 Amount (Millions USD)	Year-over-Year Change
Drug Wholesale sales	$47.00	42.1% growth
Online Pharmacy sales	$31.86	1.6% decrease
Retail Drugstore Revenue (includes supplements)	$75.68	9.2% decrease
Total Revenue	$154.54	3.8% growth

The wholesale side was definitely the star performer in FY2024. Drug Wholesale sales hit $47.00 million, marking a significant jump of 42.1% year-over-year. That growth is the result of focusing on competitive pricing and using modern wholesale platforms, as the Chairman noted.

The digital channel, Online Pharmacy sales, contributed $31.86 million in FY2024. To be fair, this segment saw a slight dip, down 1.6% from the prior year.

The core retail operations, which include the sales of nutritional supplements and healthcare products alongside prescription drugs, brought in $75.68 million. This segment experienced a year-on-year decrease of 9.2%.

When you look at the mix, you see where the operational focus is shifting:

• Drug Wholesale sales: $47.00 million.
• Online Pharmacy sales: $31.86 million.
• Retail Drugstore sales: $75.68 million.
• Sales of nutritional supplements and healthcare products are embedded within the retail figure.

The total revenue for FY2024 was $154.54 million, representing a 3.8% increase overall, driven almost entirely by the strength in the wholesale segment.

Finance: draft 13-week cash view by Friday.