NEW YORK, May 20, 2022 (GLOBE NEWSWIRE via SEAPRWire.com) — BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”), a healthcare products and services provider, today announced its financial results for the quarter ended March 31, 2022.
Revenues for the three months ended March 31, 2022 and 2021 were $5,019,748 and $2,168,004, respectively. Compared with the same period in 2021, revenue increased by $2,851,744 in 2022, mainly due to the $2,073,608 increase in sales of medical devices and $880,202 increase in medical services revenues. The increase in medical device sales is mainly due to higher demand during the first quarter of 2022. The 2022 medical services revenues reflect the revenues generated by three hospitals, which were acquired in May 2021.
Cost of revenues for the three months ended March 31, 2022 and 2021 were $3,561,278 and $1,575,743, respectively. The increase primarily reflects the costs associated with operations of the Guanzan Group and the Qiangsheng, Eurasia and Minkang hospitals.
For the three months ended March 31, 2022 and 2021, the Company had gross margins of 29% and 27%, respectively. For the three months ended March 31, 2022 and 2021, the gross profit margins of: (i) wholesale pharmaceuticals segment were 12.70% and 36.21%, respectively; (ii) wholesale medical devices segment were 14.13% and 52.73%, respectively; (iii) medical services segment were 61.52% and 9.32%, respectively; and (iv) retail pharmacy segment were 38.31% and 17.17%, respectively.
Operating expenses were $4,015,169 for the three months ended March 31, 2022 as compared to $3,832,650 for the same period in 2021, an increase of $182,519 or 5%. The increase is primarily due to the salaries of the Company’s Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of $1,400,500 for the three months ended March 31, 2022. During the 2021 period the Company’s operating expenses included a $771,000 expense related to the amortization of the discount relating to the convertible notes issued in 2021.
For the three months ended March 31, 2022 and 2021, the Company reported other expenses of $161,200 and $31,490, respectively. Other expenses mainly consisted of interest expense relating to the bank loans of the Guanzan Group, Zhuoda and Zhongshan.
The Company reported a net loss of $2,740,480 for the three months ended March 31, 2022, compared to a net loss of $3,290,627 for the three months ended March 31, 2021, a decrease of $550,147.
As of March 31, 2022, the Company had cash of $1,606,214 and negative working capital of $1,359,907 as compared to cash of $4,797,849 and negative working capital of $932,493 on December 31, 2021.
“Our effort to improve efficiency have resulted in increased revenues and gross margins for the first quarter of 2022. As we move forward, we will continue to enhance compliance and risk management, and continue to improve service quality and brand awareness,” said Mr. Tiewei Song, Chief Executive Officer of BIMI International Medical Inc.
About BIMI International Medical Inc.
BIMI International Medical Inc. was founded in 2006. The Company is now exclusively a healthcare products and services provider, offering a broad range of healthcare products and related services and operates five private hospitals in China. For more information, please visit www.usbimi.com.
Safe Harbor Statement
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the effects of the spread of COVID-19, the demand for the Company’s products and services in the People’s Republic of China, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.
IR Contact:
Dragon Gate Investment Partners LLC Tel: +1(646)-801-2803
Email: BIMI@dgipl.com
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 1,606,214 | $ | 4,797,849 | ||||
| Accounts receivable, net | 7,515,863 | 7,005,442 | ||||||
| Advances to suppliers | 6,797,153 | 3,163,836 | ||||||
| Amount due from related parties | 803,191 | 622,554 | ||||||
| Inventories, net | 2,169,589 | 2,639,883 | ||||||
| Prepayments and other receivables | 3,162,380 | 2,930,083 | ||||||
| Total current assets | 22,054,390 | 21,159,647 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Deferred tax assets | 208,448 | 207,549 | ||||||
| Property, plant and equipment, net | 3,343,981 | 3,521,401 | ||||||
| Intangible assets-net | 17,752 | 18,039 | ||||||
| Operating lease-right of use assets | 4,711,222 | 4,845,509 | ||||||
| Goodwill | 8,376,217 | 8,376,217 | ||||||
| Total non-current assets | 16,657,620 | 16,968,715 | ||||||
| TOTAL ASSETS | $ | 38,712,010 | $ | 38,128,362 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term loans | $ | 1,791,531 | $ | 1,799,394 | ||||
| Long-term loans due within one year | 186,750 | 369,187 | ||||||
| Convertible promissory notes, net | 5,765,617 | 5,211,160 | ||||||
| Accounts payable, trade | 6,629,460 | 7,339,210 | ||||||
| Advances from customers | 2,447,076 | 1,943,028 | ||||||
| Amount due to related parties | 531,817 | 730,285 | ||||||
| Taxes payable | 692,908 | 662,777 | ||||||
| Other payables and accrued liabilities | 1,724,964 | 3,082,917 | ||||||
| Lease liability-current | 924,360 | 954,182 | ||||||
| Total current liabilities | 20,694,483 | 22,092,140 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Lease liability-non current | 4,094,833 | 4,161,789 | ||||||
| Long-term loans – non-current | 528,911 | 538,006 | ||||||
| Total non-current liabilities | 4,623,744 | 4,699,795 | ||||||
| TOTAL LIABILITIES | 25,318,227 | 26,791,935 | ||||||
| EQUITY | ||||||||
| Common stock, $0.001 par value; 200,000,000 shares authorized; 10,359,264 and 8,502,222 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively * | 10,359 | 8,502 | ||||||
| Additional paid-in capital | 60,566,188 | 55,220,130 | ||||||
| Statutory reserves | 2,263,857 | 2,263,857 | ||||||
| Accumulated deficit | (50,640,327 | ) | (47,900,929 | ) | ||||
| Accumulated other comprehensive income | 1,051,790 | 1,601,870 | ||||||
| Total BIMI International Medical Inc.’s equity | 13,251,867 | 11,193,430 | ||||||
| NON-CONTROLLING INTERESTS | 141,916 | 142,997 | ||||||
| Total equity | 13,393,783 | 11,336,427 | ||||||
| Total liabilities and equity | $ | 38,712,010 | $ | 38,128,362 | ||||
| * | Retrospectively restated due to five for one reverse stock split, see Note 21 |
The accompanying notes are an integral part of the condensed consolidated financial statements
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
| For three months ended March 31, |
||||||||
| 2022 | 2021 | |||||||
| REVENUES | 5,019,748 | 2,168,004 | ||||||
| COST OF REVENUES | 3,561,278 | 1,575,743 | ||||||
| GROSS PROFIT | 1,458,470 | 592,261 | ||||||
| OPERATING EXPENSES: | ||||||||
| Sales and marketing | 754,880 | 452,636 | ||||||
| General and administrative | 3,260,289 | 3,380,014 | ||||||
| Total operating expenses | 4,015,169 | 3,832,650 | ||||||
| LOSS FROM OPERATIONS | (2,556,699 | ) | (3,240,389 | ) | ||||
| OTHER INCOME (EXPENSE) | ||||||||
| Interest income | 146 | – | ||||||
| Interest expense | (107,759 | ) | (44,355 | ) | ||||
| Exchange loss | (3,266 | ) | – | |||||
| Other income/(expense) | (50,321 | ) | 12,865 | |||||
| Total other expense, net | (161,200 | ) | (31,490 | ) | ||||
| LOSS BEFORE INCOME TAXES | (2,717,899 | ) | (3,271,879 | ) | ||||
| PROVISION FOR INCOME TAXES | 22,581 | 18,748 | ||||||
| NET LOSS | (2,740,480 | ) | (3,290,627 | ) | ||||
| Less: net income/(loss) attributable to non-controlling interest | (1,082 | ) | 42,615 | |||||
| NET LOSS ATTRIBUTABLE TO BIMI INTERATIONAL MEDICAL INC. | $ | (2,739,398 | ) | $ | (3,333,242 | ) | ||
| OTHER COMPREHENSIVE LOSS | ||||||||
| Foreign currency translation adjustment | (550,080 | ) | (149,597 | ) | ||||
| TOTAL COMPREHENSIVE LOSS | (3,290,560 | ) | (3,440,224 | ) | ||||
| Less: comprehensive loss attributable to non-controlling interests | (24,974 | ) | (10,886 | ) | ||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICAL INC. | $ | (3,265,586 | ) | $ | (3,429,338 | ) | ||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||
| Basic and diluted | 10,087,665 | 3,338,608 | ||||||
| LOSS PER SHARE | ||||||||
| Basic and diluted | $ | (0.27 | ) | $ | (0.99 | ) | ||
The accompanying notes are an integral part of the condensed consolidated financial statements
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the three months ended March 31, |
||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (2,740,480 | ) | $ | (3,290,627 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Depreciation and amortization | 89,159 | 35,958 | ||||||
| Inventories impairment reserve | – | 14,507 | ||||||
| Allowance for doubtful accounts | (584 | ) | (43,799 | ) | ||||
| Stock compensation | – | 585,000 | ||||||
| Lease expense | – | 20,719 | ||||||
| Amortization of discount of convertible promissory notes | 554,457 | 1,607,105 | ||||||
| Change in operating assets and liabilities | ||||||||
| Accounts receivable | (509,837 | ) | (334,056 | ) | ||||
| Advances to suppliers | 1,714,599 | (387,940 | ) | |||||
| Prepayments and other receivables | (232,298 | ) | 281,718 | |||||
| Inventories | 470,294 | (2,572,438 | ) | |||||
| Operating lease-right of use assets | 134,287 | 64,231 | ||||||
| Accounts payable, trade | (709,750 | ) | 2,803,460 | |||||
| Advances from customers | 504,048 | 329,591 | ||||||
| Operating lease liabilities | (96,779 | ) | (95,368 | ) | ||||
| Taxes payable | 30,130 | (701,687 | ) | |||||
| Other payables and accrued liabilities | (1,357,952 | ) | (46,085 | ) | ||||
| Net cash used in operating activities | (2,150,706 | ) | (1,729,711 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash received from acquisition of Guoyitang Hospital | – | 28,457 | ||||||
| Cash received from acquisition of Zhongshan Hospital | – | 46,748 | ||||||
| Purchase of property, plant, and equipment | – | (36,100 | ) | |||||
| Net cash provided by investing activities | – | 39,105 | ||||||
| – | – | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term loan | – | 462,773 | ||||||
| Repayment of long-term loan | – | (295,404 | ) | |||||
| Net proceeds from issuance of convertible promissory notes | – | 4,065,000 | ||||||
| Repayment of short-term loans | (7,863 | ) | (4,419 | ) | ||||
| Long-term loans due within one year | (191,530 | ) | – | |||||
| Amount financed from/(to) related parties | (379,105 | ) | 164,067 | |||||
| Net cash provided by (used in) financing activities | (578,498 | ) | 4,392,017 | |||||
| EFFECT OF EXCHANGE RATE ON CASH | (462,431 | ) | (1,295 | ) | ||||
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (3,191,635 | ) | 2,700,116 | |||||
| CASH AND CASH EQUIVALENTS, beginning of period | 4,797,849 | 135,308 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 1,606,214 | $ | 2,835,424 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | 19,319 | $ | 86,153 | ||||
| Cash paid for interest expense, net of capitalized interest | $ | 12,916 | $ | 47,696 | ||||
| NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES | ||||||||
| Issuance of common shares for equity acquisition of Guoyitang Hospital | $ | – | $ | 2,000 | ||||
| Issuance of common shares for equity acquisition of Zhongshan Hospital | $ | – | $ | 2,000 | ||||
| Issuance of common shares for equity acquisition of Mali Hospital | $ | 600 | $ | – | ||||
| Goodwill recognized from equity acquisition of Zhongshan Hospital | $ | – | $ | 10,433,494 | ||||
| Goodwill recognized from equity acquisition of Guoyitang Hospital | $ | – | $ | 7,154,392 | ||||
| Outstanding payment for equity acquisition of Guanzan Group | $ | – | $ | 3,065,181 | ||||
| Outstanding payment for equity acquisition of Guoyitang Hospital | $ | – | $ | 6,100,723 | ||||
| Outstanding payment for equity acquisition of Zhongshan Hospital | $ | – | $ | 6,100,723 | ||||
