九洲大药房美股招股说明书(2023-09-26版)

424B51ea185810-424b5_chinajojo.htmPROSPECTUSSUPPLEMENT PROSPECTUSSUPPLEMENTFiledpursuanttoRule424(b)(5) (ToProspectusdatedDecember19,2022)FileNo.333-259692 CHINAJO-JODRUGSTORES,INC. 9,960,000SharesofOrdinarySharesWarrantstoPurchaseupto19,920,000OrdinaryShares 19,920,000OrdinarySharesIssuableuponExerciseoftheWarrants Pursuanttothisprospectussupplementandtheaccompanyingprospectus,weareofferingdirectlytoseveralinvestors9,960,000OrdinaryShares,parvalue$0.012(the“OrdinaryShares”)atapurchasepriceof$0.26pershare,andwarrantstopurchaseuptoanaggregateof19,920,000OrdinarySharesatanexercisepriceof$0.26pershare(the“Warrants”).TheWarrantsareexercisableimmediatelyfollowingthedateofissuanceandareexercisablebytheholdersatanytimeduringthethree-yearperiodfollowingthedateonwhichtheyareinitiallyissued.Wehavenotretainedabroker,dealer,underwriterorplacementagentwithrespecttothisofferingandthereforearenotpayinganyunderwritingdiscountsorcommissions. OurOrdinarySharestradesontheNasdaqCapitalMarketunderthesymbol“CJJD.”ThelastreportedsalepriceofourOrdinarySharesontheNasdaqCapitalMarketonSeptember25,2023was$0.25pershare. AsofSeptember25,2023,theaggregatemarketvalueofouroutstandingOrdinarySharesheldbynon-affiliateswasapproximately$99,718,062basedon23,697,210outstandingOrdinaryShares,ofwhich2,791,956shareswereheldbyaffiliatesasofsuchdate,andapriceof$4.77pershare,whichwasthelastreportedsalepriceofourOrdinarySharesasreportedbytheNasdaqCapitalMarketonApril17,2023.Accordingto116.07oftheComplianceandDisclosureInterpretationbytheSecuritiesandExchangeCommission,whenaregistrantreassessesFormS-3(orFormF-3inourcase)eligibilityinconnectionwithaSection10(a)(3)update,forpurposesofcomputingthe"float"underGeneralInstructionI.B.1,theregistrantcanuseanydayduringthe60-day"lookback"periodfromthefilingdateoftheForm10-K(orForm20-Finourcase)indeterminingthenumberofsharesheldbynon-affiliates.Accordingly,wearenotsubjecttothelimitationssetforthinGeneralInstructionI.B.5ofFormF-3. PerShareTotal Offeringprice$0.26$2,589,600 WeareaholdingcompanyincorporatedintheCaymanIslandsandarenotaChineseoperatingcompany.Asaholdingcompanywithnomaterialoperationsofourown,weconductasubstantialmajorityofouroperationsthroughourPRCsubsidiaries,thevariableinterestentities,orVIEs,andsubsidiariesofVIEsinthePeople’sRepublicofChina.WedonothaveanyequityownershipoftheVIEs,instead,wereceivetheeconomicbenefitsoftheVIEs,aretheprimarybeneficiaryforaccountingpurposes,andconsolidateVIEs’financialstatementsthroughtheVIEAgreementstotheextentwehavesatisfiedtheconditionsforconsolidationoftheVIEsunderU.S.GAAP.We,throughcontractualagreements,establishtheVIEstructuretoprovideexposuretoforeigninvestmentinsuchChinese-basedcompanieswhereChineselawprohibitsdirectforeigninvestmentintheoperatingcompanies,andthatinvestorsmayneverdirectlyholdequityinterestsintheChineseoperatingentities. BecausewedonotdirectlyholdequityinterestsintheVIEsandtheirsubsidiaries,wearesubjecttorisksanduncertaintiesoftheinterpretationsandapplicationsofPRClawsandregulations,includingbutnotlimitedto,limitationsonforeignownershipofInternetcompanies,regulatoryreviewofoverseaslistingofPRCcompaniesthroughspecialpurposevehicles,andthevalidityandenforcementofthecontractualarrangementsamongWFOEs,theVIEsandtheirshareholders.WearealsosubjecttotherisksanduncertaintiesaboutanyfutureactionsofthePRCgovernmentinthisregardthatcoulddisallowtheVIEstructure,whichwouldlikelyresultinamaterialchangeinouroperations,andthevalueofourOrdinarySharesmaydepreciatesignificantly. Additionally,wearesubjecttocertainlegalandoperationalrisksassociatedwiththeVIEs’operationsinChina,theriskbeingdiscussedcouldresultinthevalueofoursecuritiestosignificantlydeclineorbeworthless.PRClawsandregulationsgoverningourcurrentbusinessoperationsaresometimesvagueanduncertain,andtherefore,theserisksmayresultinamaterialchangeintheVIEs’operations,significantdepreciationofthevalueofourOrdinaryShares,oracompletehindranceofourabilitytoofferorcontinuetoofferoursecuritiestoinvestors.RulesandregulationsinChinacanchangequicklywithlittleadvancenotice.Recently,thePRCgovernmentinitiatedaseriesofregulatoryactionsandstatementstoregulatebusinessoperationsinChina,includingcrackingdownonillegalactivitiesinthesecuritiesmarket,enhancingsupervisionoverChina-basedcompanieslistedoverseasusingvariableinterestentitystructure,adoptingnewmeasurestoextendthescopeofcybersecurityreviews,andexpandingtheeffortsinanti-monopolyenforcement.Sincethesestatementsandregulatoryactionsarenew,itishighlyuncertainhowsoonlegislativeoradministrativeregulationmakingbodieswillrespondandwhatexistingornewlawsorregulationsordetailedimplementationsandinterpretationswillbemodifiedorpromulgated,ifany,andthepotentialimpactofsuchmodifiedornewlawsandregulationswillhaveonourdailybusinessoperation,theabilitytoacceptforeigninvestmentsandlistonanU.S.orotherforeignexchange.Thesecontractualagreementshavenotbeentestedinacourtoflaw.TheChineseregulatoryauthoritiescoulddisallowourstructure,whichcouldresultinamaterialchangeinouroperationsandthevalueofou