China Jo-Jo Drugstores, Inc.(CJJD.NSDQ), an operator of retail pharmacy chain in China, has reported a net income of $3.24 million, or $0.24 per share, for the first quarter ended June 30, 2011, compared to $2.15 million, or $0.17 per share, for the first quarter ended June 30, 2010.
Net revenues for the first quarter of fiscal 2012 were $21.43 million, compared to $15.21 million for the first quarter of fiscal 2011.

Gross profit for the first quarter of fiscal 2012 was $6.87 million, compared to $4.61 million for the first quarter of fiscal 2011.

Lei Liu, chairman and CEO of the company, said: "We are very pleased to deliver record operating results for the first quarter, which reflect strong sales and increased traffic at both new and existing stores. The substantial increase in sales primarily reflects our ability to accept medical insurance for an increased number of drugs, as well as a broader number of insured individuals under China's government-sponsored insurance programs. All of our stores opened prior to April 1, 2010 are now able to accept government medical insurance. As we continue to apply to accept medical insurance as soon as our stores become eligible to do so, i.e. one year after opening, we anticipate that government-sponsored programs will continue to drive sales as our new stores mature."