HANGZHOU, China, March 4, 2026 /PRNewswire/ -- Ridgetech, Inc. (Nasdaq: RDGT) ("Ridgetech" or the "Company"), a wholesale distributor of pharmaceutical and other healthcare products in China, today announced its dual-engine growth strategy for 2026. The strategy centers on supply chain integration by leveraging its wholesale distribution network, B2B platform, and franchise system. Building on its integrated pharmaceutical and healthcare service platforms, Ridgetech aims to achieve parallel breakthroughs in both business model innovation and value creation, thereby strengthening its long-term growth foundation across China's pharmaceutical and healthcare supply chain.
Further Strengthening Core Business to Enhance Full-Chain Competitiveness
Positioning its wholesale business as both a strategic cornerstone and a central hub connecting upstream and downstream resources, Ridgetech is committed to further enhancing its supply chain system. The Company will intensify efforts to strengthen its differentiated advantages in product mix and portfolio by deepening strategic cooperation with core suppliers, reinforcing exclusive agency resources, and expanding its distribution coverage of high-margin domestic and international brands, along with distinctive product lines. The Company believes these initiatives will accelerate its transformation from a traffic-driven to a value-driven business model.
In parallel, the Company plans to further reinforce its compliance management framework and financial risk control capabilities. Key initiatives include implementing full-process controls for agency products, optimizing rebate settlement mechanisms, and enhancing its direct procurement model for branded products.
Accelerating Scale and Brand Value Growth Through Digital Innovation
Within Ridgetech's strategic framework, its wholly owned subsidiary Allright (Hangzhou) Internet Technology Co., Ltd. ("Allright"), an online pharmaceutical and healthcare platform, will continue to function as the core digital engine, empowering B2B business expansion and franchise system development. In 2026, Ridgetech will focus on building a more efficient, intelligent, and collaborative service network. The Company aims to expand Allright's customer base to over 300,000, achieve a 30% year-on-year increase in the number of B2B new customers, and reach an online business penetration rate exceeding 30% in Allright.
In addition, the Company will continue to expand coverage and strengthen connections with independent pharmacies and clinics in Zhejiang Province, further enhancing Allright's diversified value-added service ecosystem.
Ridgetech believes that, by leveraging its expertise in Online-to-Offline (O2O) agency operations, medical insurance service integration, and supply chain finance, it can support partners in transitioning from market entry to sustainable growth, thereby enhancing the value and operational efficiency of terminal services. In turn, through this mutually beneficial collaboration, the Allright platform is seeking to fully leverage its strengths in supply chain procurement, advance its exclusive agency systems, and refine pricing mechanisms for key partner brands--ultimately consolidating its market position and pricing power to achieve a dual leap in both scale and brand value.
Synergistic Dual-Engine Collaboration to Unlock Business Multiplier Effects
In the strategic landscape, Zhejiang Jiuxin Medicine Co., Ltd. ("Jiuxin Medicine"), Ridgetech's wholly owned offline pharmaceutical wholesale distribution platform, together with Allright, serves as two core growth engines. Each fulfills distinct responsibilities while working collaboratively to drive the in-depth evolution of the pharmaceutical and healthcare ecosystem.
In 2026, the Company plans to systematically introduce Jiuxin Medicine's supply chain products onto the Allright platform, integrating procurement and sales processes, reducing distribution layers, and improving response speed and operational agility.
Through deep integration of customer data and procurement demand, the Company believes that it can more precisely support category planning and inventory strategies, achieve efficient coordination between cash flow and product flow, and significantly enhance turnover efficiency.
At the same time, both engines will jointly conduct recruitment activities, leveraging front-end procurement advantages to improve franchise appeal while using back-end digital tools to strengthen partner confidence. This approach is designed to establish a virtuous cycle in which "procurement drives sales and sales guide procurement." Through continued data sharing and business process reengineering, Ridgetech believes it can further streamline channels from upstream suppliers to end-user pharmacies, building a smart distribution system that accurately matches supply and demand, responds rapidly, and fulfills its mission of "delivering quality medicines to those in need."
Management Commentary
Mr. Frank Zhao, Interim Chief Executive Officer and Chief Financial Officer of Ridgetech, commented: "In recent years, as demographic trends, policy orientation, and emerging technologies continue to reshape China's pharmaceutical and healthcare industry, the sector has entered a critical phase of profound transformation and accelerated restructuring. In response to these dynamics, we remain firmly committed to our strategic positioning--strengthening foundations while advancing innovation, combining quality improvement with efficiency enhancement, and pursuing parallel breakthroughs in business models and value creation. We believe this strategy is best suited to guide the Company toward high-quality development and to strengthen its industry position and market influence.
Looking ahead, Ridgetech will work toward achieving its 2026 and medium- to long-term strategic objectives through a clear strategic roadmap, a more streamlined operating system, and a more open collaborative framework. Amid the sweeping transformation of the industry, we are confident that pragmatic execution will enable us to write a new chapter of development, driven by stronger core business capabilities and service strengths. We remain committed to creating greater value for our shareholders and contributing to the national Healthy China 2030 initiative."
About Ridgetech, Inc.
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. The Company believes that trading on these platforms offers greater opportunities to distribute pharmaceutical products nationwide. For more information about the Company, please visit www.ridgetch.com. The Company routinely posts important information on its website.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. These forward-looking statements include, but are not limited to, statements concerning the Company's strategic plans and growth initiatives, including supply chain integration, expansion of branded products, development of its digital platform, integration of its wholesale and online operations, and anticipated operational and growth benefits. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements including risks related to the Company's ability to satisfy applicable procurement conditions, changes in market demand, the Company's ability to successfully implement and promote its digital platform, and those other risks described in the Company's most recent registration statement, most recent annual report on Form 20-F and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Company Contact:
Frank Zhao
Interim Chief Executive Officer and Chief Financial Officer
+86-571-88077108
frank.zhao@ridgetch.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-646-932-7242
investors@ascent-ir.com
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SOURCE Ridgetech, Inc.
