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BIMI International Medical Announces First Quarter 2022 Financial Results

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NEW YORK, May 20, 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 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