NEW YORK, Aug. 22, 2022 (GLOBE NEWSWIRE) -- BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”), a healthcare products and services provider, today announced its financial results for the six months ended June 30, 2022.
Revenues for the six months ended June 30, 2022 and 2021 were $9,947,109 and $11,424,991, respectively. Compared with the same period in 2021, revenue decreased by $1,477,882, mainly due to the decrease in pharmaceutical sales of $3,615,357.
Cost of revenues for the six months ended June 30, 2022 and 2021 were $7,263,179 and $8,867,894, respectively. The decrease primarily reflected the decrease in revenues of most of our principal operating subsidiaries.
For the six months ended June 30, 2022 and 2021, the Company had a gross margin of 27% and 22.4%, respectively. For the six months ended June 30, 2022 and 2021, the gross profit margins of: (i) wholesale pharmaceuticals segment were 27% and 11.3%, respectively; (ii) wholesale medical devices segment were 20% and 23.9%, respectively; (iii) medical services segment were 61.52% and 9.32%, respectively; and (iv) retail pharmacy segment were 5% and 18.9%, respectively.
Operating expenses from continuing operations were $7,519,524 for the six months ended June 30, 2022 as compared to $5,947,929 for the same period in 2021, an increase of $1,571,595 or 26%. The $1.2 million increase was due to the payments to the Company’s CEO and COO in shares of the Company’s Common Stock during the six months ended June 30, 2022. No such stock payments were made in the same period in 2021.
For the six months ended June 30, 2022 and 2021, the Company reported other expenses of $2,020,439 and $143,530, respectively. For the six months ended June 30, 2022, the Company had $2,020,439 of other expenses, net that primarily consisted of amortization of convertible notes of $1,542,248 and $219,319 of interest expenses from the bank debt incurred by the Company’s operating subsidiaries in the PRC.
The Company reported a net loss $6,886,824 for the six months ended June 30, 2022, compared to a net loss of $3,566,365 for the six months ended June 30, 2021, an increase of $3,320,459.
As June 30, 2022, the Company had cash of $5,034,331 and positive working capital of $4,631,671 as compared to cash of $4,797,849 and negative working capital of $932,493 on December 31, 2021.
Mr. Tiewei Song, Chief Executive Officer of BIMI International Medical Inc., commented, “While our business was impacted by the COVID-19 pandemic and the challenging macro environment, we remain focused on offering high-quality products and providing superior services. We concentrate on the most differentiated, high value components across all our business segments — with the goal to achieve to high gross margins. We remain confident in the potential of our business model as we are putting the right operating framework in place to drive innovation and grow the Company in a strong and sustainable way. To improve our operating efficiency and scale our business, our dedicated team is continuing to execute on our strategic initiatives and believe these initiatives will establish a long-term foundation for best-in-class operations, gross margins, significant free cash flow generation and will position BIMI to achieve our long-term growth goals. We aim to continue to provide high levels of products and services to our customers, attract new customers and explore new growth opportunities. Looking forward to the remaining of 2022, we will strive to grow our customer base, expand our business portfolio and improve our operating results.”
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 the Company's website at http://www.usbimi.com/.
Safe Harbor Statements
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.
Investor Relations Contact
Ascent Investor Relations LLC
Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1 917 609 0333
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| June 30 | December 31 | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 5,034,331 | $ | 4,797,849 | ||||
| Accounts receivable, net | 5,944,616 | 7,005,442 | ||||||
| Advances to suppliers | 6,453,083 | 3,163,836 | ||||||
| Amount due from related parties | 327,566 | 622,554 | ||||||
| Inventories, net | 3,027,785 | 2,639,883 | ||||||
| Prepayments and other receivables | 3,390,100 | 2,930,083 | ||||||
| Total current assets | 24,177,481 | 21,159,647 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Deferred tax assets | 197,167 | 207,549 | ||||||
| Property, plant and equipment, net | 3,112,446 | 3,521,401 | ||||||
| Intangible assets-net | 16,793 | 18,039 | ||||||
| Operating lease-right of use assets | 4,336,481 | 4,845,509 | ||||||
| Goodwill | 8,376,217 | 8,376,217 | ||||||
| Total non-current assets | 16,039,104 | 16,968,715 | ||||||
| TOTAL ASSETS | $ | 40,216,585 | $ | 38,128,362 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term loans | $ | 1,656,643 | $ | 1,799,394 | ||||
| Long-term loans due within one year | 179,351 | 369,187 | ||||||
| Convertible promissory notes, net | 6,320,075 | 5,211,160 | ||||||
| Accounts payable, trade | 5,849,581 | 7,339,210 | ||||||
| Advances from customers | 2,322,963 | 1,943,028 | ||||||
| Amount due to related parties | 503,037 | 730,285 | ||||||
| Taxes payable | 523,742 | 662,777 | ||||||
| Other payables and accrued liabilities | 3,266,413 | 3,082,917 | ||||||
| Lease liability-current | 887,630 | 954,182 | ||||||
| Total current liabilities | 21,509,435 | 22,092,140 | ||||||
| Lease liability-non current | 3,840,091 | 4,161,789 | ||||||
| Long-term loans – non-current | 471,519 | 538,006 | ||||||
| Total non-current liabilities | 4,311,610 | 4,699,795 | ||||||
| TOTAL LIABILITIES | 25,821,045 | 26,791,935 | ||||||
| EQUITY | ||||||||
| Common stock, $0.001 par value; 200,000,000 shares authorized; 22,859,264 and 8,502,222 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively * | 22,859 | 8,502 | ||||||
| Additional paid-in capital | 65,833,695 | 55,220,130 | ||||||
| Statutory reserves | 2,263,857 | 2,263,857 | ||||||
| Accumulated deficit | (54,596,942 | ) | (47,900,929 | ) | ||||
| Accumulated other comprehensive income | 633,967 | 1,601,870 | ||||||
| Total BIMI International Medical Inc.’s equity | 14,157 ,436 | 11,193,430 | ||||||
| NON-CONTROLLING INTERESTS | 238,104 | 142,997 | ||||||
| Total equity | 14,395,540 | 11,336,427 | ||||||
| Total liabilities and equity | $ | 40,216,585 | $ | 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 GAIN/LOSS
(UNAUDITED)
| For three months ended June, 30 | For six months ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| REVENUES | $ | 4,927,361 | $ | 9,256,987 | $ | 9,947,109 | $ | 11,424,991 | ||||||||
| COST OF REVENUES | 3,701,901 | 7,292,152 | 7,263,179 | 8,867,894 | ||||||||||||
| GROSS PROFIT | 1,225,460 | 1,964,835 | 2,683,930 | 2,557,097 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Sales and marketing | 704,528 | 774,378 | 1,459,408 | 1,227,014 | ||||||||||||
| General and administrative | 2,799,827 | 1,340,901 | 6,060,116 | 4,720,915 | ||||||||||||
| Total operating expenses | 3,504,355 | 2,115,279 | 7,519,524 | 5,947,929 | ||||||||||||
| LOSS FROM OPERATIONS | (2,278,895 | ) | (150,444 | ) | (4,835,594 | ) | (3,390,832 | ) | ||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest income | 207 | - | 353 | - | ||||||||||||
| Interest expense | (111,560 | ) | (93,882 | ) | (219,319 | ) | (138,237 | ) | ||||||||
| Exchange gain (loss) | 2,865 | - | (401 | ) | ||||||||||||
| Other expense | (1,750,751 | ) | (18,158 | ) | (1,801,072 | ) | (5,293 | ) | ||||||||
| Total other expense, net | (1,859,239 | ) | (112,040 | ) | (2,020,439 | ) | (143,530 | ) | ||||||||
| LOSS BEFORE INCOME TAXES | (4,138,134 | ) | (262,484 | ) | (6,856,033 | ) | (3,534,362 | ) | ||||||||
| PROVISION FOR INCOME TAXES | 8,210 | 13,255 | 30,791 | 32,003 | ||||||||||||
| NET LOSS FROM CONTINUING OPERATIONS | (4,146,344 | ) | (275,739 | ) | (6,886,824 | ) | (3,566,365 | ) | ||||||||
| DISCONTINUED OPERATIONS | ||||||||||||||||
| NET LOSS | (4,146,344 | ) | (275,739 | ) | (6,886,824 | ) | (3,566,365 | ) | ||||||||
| Less: net loss attributable to noncontrolling interest | (1,416 | ) | 246 | (2,498 | ) | 42,861 | ||||||||||
| NET LOSS ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICAL INC. | (4,144,928 | ) | (275,985 | ) | (6,884,326 | ) | (3,609,226 | ) | ||||||||
| OTHER COMPREHENSIVE GAIN (LOSS) | ||||||||||||||||
| Foreign currency translation adjustment | (417,823 | ) | (149,597 | ) | (967,903 | ) | 1,112 | |||||||||
| TOTAL COMPREHENSIVE LOSS | (4,564,167 | ) | (425,336 | ) | (7,854,727 | ) | (3,565,253 | ) | ||||||||
| Less: comprehensive loss attributable to noncontrolling interest | (510,069 | ) | (10,886 | ) | (535,043 | ) | 56 | |||||||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICAL INC. | $ | (4,054,098 | ) | $ | (414,450 | ) | $ | (7,319,684 | ) | $ | (3,565,309 | ) | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||||||||||
| Basic and diluted | 22,859,264 | 4,741,407 | 12,525,879 | 4,171,832 | ||||||||||||
| LOSS PER SHARE | ||||||||||||||||
| Basic and diluted | (0.18 | ) | (0.06 | ) | (0.55 | ) | (0.85 | ) | ||||||||
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 six months ended June 30 | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (6,886,824 | ) | $ | (3,566,365 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Depreciation and amortization | 125,781 | 118,802 | ||||||
| Inventories impairment reserve | - | 23,620 | ||||||
| Allowance for doubtful accounts | (572 | ) | 4,739 | |||||
| Stock compensation | - | 585,000 | ||||||
| Lease expense | - | 130,419 | ||||||
| Amortization of discount of convertible promissory notes | 1,108,915 | 1,607,105 | ||||||
| Change in operating assets and liabilities | ||||||||
| Accounts receivable | 1,061,398 | (2,453,148 | ) | |||||
| Advances to suppliers | 7,338,675 | (1,786,217 | ) | |||||
| Prepayments and other receivables | (460,017 | ) | (35,075 | ) | ||||
| Inventories | (387,902 | ) | (3,972,555 | ) | ||||
| Operating lease-right of use assets | 509,028 | 145,153 | ||||||
| Accounts payable, trade | (1,489,629 | ) | 3,123,104 | |||||
| Advances from customers | 379,935 | 3,180,564 | ||||||
| Operating lease liabilities | (388,250 | ) | (158,463 | ) | ||||
| Taxes payable | (139,035 | ) | (389,759 | ) | ||||
| Other payables and accrued liabilities | 183,496 | (146,374 | ) | |||||
| Net cash provide by (used in) operating activities | 954,999 | (3,589,450 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash received from acquisition of Mingkang Hospital | - | 12,341 | ||||||
| Cash received from acquisition of Zhongshan Hospital | - | 75,192 | ||||||
| Purchase of property, plant, and equipment | - | (375,235 | ) | |||||
| Net cash provided by investing activities | - | (287,702 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from long-term loan | - | 553,490 | ||||||
| Repayment of long-term loan | (256,323 | ) | (350,416 | ) | ||||
| Net proceeds from issuance of convertible promissory notes | - | 4,065,000 | ||||||
| Repayment of short-term loans | (142,751 | ) | (177,253 | ) | ||||
| Amount financed from related parties | 67,740 | 164,841 | ||||||
| Net cash provided by (used in) financing activities | (331,334 | ) | 4,255,662 | |||||
| EFFECT OF EXCHANGE RATE ON CASH | (387,183 | ) | 117,396 | |||||
| INCREASE IN CASH | 236,482 | 495,906 | ||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 4,797,849 | 135,308 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 5,034,331 | $ | 631,214 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | 133,009 | $ | 32,003 | ||||
| Cash paid for interest expense, net of capitalized interest | $ | 122,539 | $ | 138,237 | ||||
| NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES | ||||||||
| Issuance of common share for equity acquisition of Guoyitang Hospital | $ | - | $ | 2,000 | ||||
| Issuance of common share for equity acquisition of Zhongshan Hospital | $ | - | $ | 2,000 | ||||
| Issuance of common share for equity acquisition of Minkang Hospital | 4,000 | |||||||
| Issuance of common share for equity acquisition of Mali Hospital | $ | 600 | $ | - | ||||
| Issuance of common share upon conversion of convertible notes | 104 | |||||||
| Issuance of shares of common stock for payment of improvements to offices | - | 696,896 | ||||||
| Issuance of common shares upon cashless exercises of warrants | - | 163 | ||||||
| Goodwill recognized from equity acquisition of Zhongshan Hospital | $ | - | $ | 10,443,494 | ||||
| Goodwill recognized from equity acquisition of Guoyitang Hospital | $ | - | $ | 7,154,392 | ||||
| Goodwill recognized from equity acquisition of Minkang, Qiangsheng and Eurasia Hospital | - | 25,354,174 | ||||||
| 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 | ||||
| Outstanding payment for equity acquisition of Minkang, Qiangsheng and Eurasia hospitals | $ | - | $ | 13,023,556 | ||||
