1. Ridgetech maintains stable revenue at $120 million for fiscal 2025. 2. The company acquired Allright, expanding into online healthcare distribution. 3. Ridgetech reported a net income of $10.2 million, despite overall revenue decline. 4. Investment in sales and marketing rose by 64.2% to support growth. 5. Allright's online sales contributed 1% of total revenue in March 2025.
Ridgetech's strategic acquisitions and increased sales efforts may drive future revenue growth. Historical patterns show companies with successful acquisitions often see price appreciation, suggesting potential upside for RDGT.
The article discusses key business transformations that could significantly impact future performance and investor sentiment.
The full impact of the acquisition and strategic shift may take time to materialize, similar to past examples in the healthcare sector, where integration and expansion can take 1-2 years to reflect in stock price.
HANGZHOU, China, July 28, 2025 /PRNewswire/ -- Ridgetech, Inc. (Nasdaq: RDGT) ("Ridgetech" or the "Company"), a wholesale distributor of pharmaceutical and other healthcare products in China, today announced its financial results for the fiscal year ended March 31, 2025.
Mr. Frank Zhao, Interim Chief Executive Officer and Chief Financial Officer of Ridgetech, commented, "We are pleased to present a relatively stable revenue outcome for fiscal year 2025, a year marked by significant transformation for the Company. During this period, we divested our retail pharmacy business and acquired Ridgeline and its subsidiary, Allright (Hangzhou) Internet Technology Co. Ltd ("Allright"), marking our strategic expansion into both online and offline wholesale distribution of pharmaceutical and healthcare products in China.
This move reflects our commitment to shift our resources focus onto the wholesale pharmaceutical sector, aligning with the evolving landscape and intensifying competition in China's healthcare industry. We believe Allright's broad and growing online and offline distribution network will rapidly become an indispensable contributor to our revenue and open up new business opportunities through its multiple platforms.
Despite the scale of change in fiscal year 2025, we maintained stable total revenue of approximately US$120 million, while securing healthy profit margins across both our offline wholesale operations and online platforms. Notably, revenue from Allright's own and third-party online platforms -- only reflecting activity from March 2025 following our acquisition on February 28, 2025 -- already contributed nearly 1% of our total revenue, with a gross margin of 7.4%.
To support this strategic shift, we increased our investment in sales and marketing by 64.2%, primarily to build a stronger foundation for post-transformation growth.
Looking ahead, with the completion of our strategic transformation and continued progress in integrating our business segments and internal resources, we believe Ridgetech is now better positioned to drive long-term sustainable growth and deliver improved financial performance."
In accordance with ASC 205, the Company has classified the historical retail operations, primarily conducted through Zhejiang Jiuxin Investment Management Co., Ltd. ("Jiuxin Investment") and its controlled entities, as discontinued operations and has re-presented prior periods accordingly. As a result, the comparative figures in this release reflect these adjustments and may differ from those previously reported.
Net income was $10.20 million, or $1.84 per basic and diluted earnings per share for the fiscal year ended March 31, 2025, compared to a net loss of $4.23 million, or $2.93 per basic and diluted loss per share for the same period of last year.
As of March 31, 2025, the Company had cash and cash equivalents of $12.78 million, compared to $2.30 million as of March 31, 2024. Net cash provided by operating activities was $1.25 million for the fiscal year ended March 31, 2025.
Ridgetech, Inc., formerly known as China Jo-Jo Drugstores, Inc. ("Ridgetech" or the "Company"), is a growing online and offline wholesale distributor of pharmaceutical and other healthcare products in China. Ridgetech actively trades on popular online distribution platforms nationwide and has its own online distribution platform.
This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect," or similar expressions.
For more information, please contact:
Company Contact:
Frank Zhao
Chief Financial Officer
+86-571-88077108
info@ridgetch.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-646-932-7242
tina.xiao@ascentir.com