U.S. markets open in 2 hours 42 minutes
  • S&P Futures

    4,458.75
    -16.00 (-0.36%)
     
  • Dow Futures

    34,574.00
    -42.00 (-0.12%)
     
  • Nasdaq Futures

    14,737.50
    -103.50 (-0.70%)
     
  • Russell 2000 Futures

    2,020.00
    -1.20 (-0.06%)
     
  • Crude Oil

    83.99
    -1.56 (-1.82%)
     
  • Gold

    1,833.70
    -8.90 (-0.48%)
     
  • Silver

    24.42
    -0.29 (-1.18%)
     
  • EUR/USD

    1.1330
    +0.0013 (+0.11%)
     
  • 10-Yr Bond

    1.8330
    0.0000 (0.00%)
     
  • Vix

    26.84
    +2.99 (+12.54%)
     
  • GBP/USD

    1.3557
    -0.0044 (-0.32%)
     
  • USD/JPY

    113.8320
    -0.2680 (-0.23%)
     
  • BTC-USD

    38,877.89
    -3,240.84 (-7.69%)
     
  • CMC Crypto 200

    916.59
    -78.67 (-7.90%)
     
  • FTSE 100

    7,519.96
    -65.05 (-0.86%)
     
  • Nikkei 225

    27,522.26
    -250.67 (-0.90%)
     

BOQI International Medical Announces First Quarter 2021 Financial Results

  • Oops!
    Something went wrong.
    Please try again later.
·9 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • BIMI

NEW YORK, May 24, 2021 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”), a leading healthcare products and services provider in China, today announced its financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Financial Highlights

  • Revenues grew by $1.75 million, or by 423%, to $2.17 million for the first quarter of 2021 from $0.41 million in the same period of 2020.

  • Gross profit increased by $0.51 million, or by 620%, to $0.59 million for the first quarter 2021 from $0.08 million in the same period of 2020.

  • Gross margin increased to 27.32% for the first quarter 2021 from 19.84% in the same period of 2020.

For three months ended March 31

Differences due to rounding

2021

2020

% change

Revenues

$

2.17 million

$

0.41 million

423

%

Gross profit

$

0.59 million

$

0.08 million

620

%

Gross margin

27.32

%

19.85

%

7.47

%

Net loss from continuing operations

$

3.29 million

$

1.35 million

144

%

Net loss attributable to BOQI International Medical Inc.

$

3.33 million

$

2.19 million

52

%

Mr. Tiewei Song, Chief Executive Officer and President of the Company, commented: “We are pleased to see both of our revenues and gross margins continued to be boosted by our expanded business operations and enhanced efficiency during the first quarter of 2021. These improvements support our strategy to build a comprehensive healthcare ecosystem in China with a focus on a high-end gynecology-focused hospital chain through both organic growth and bolt-on acquisition opportunities. We intend to maintain this momentum in order to achieve sustainable profitability and create value for our shareholders.”

Revenues

Revenues for the three months ended March 31, 2021 and 2020 were $2.17 million and $0.41 million, respectively. Compared with the same period in 2020, revenue in the 2021 period increased by $1.75 million, or 423%, mainly due to the increase in sales of wholesale pharmaceuticals of $1.10 million and medical services of $0.70 million.

Revenues from the retail pharmacy segment for the three months ended March 31, 2021 was $0.12 million, generated from 5 retail pharmacy stores in Chongqing.

Revenues from wholesale medical devices segment for the three months ended March 31, 2021 and 2020 were $0.06 million and $0.25 million, respectively. The decrease is mainly due to low demand for medical devices during the first quarter, which is typical because of the long break during the Chinese New Year.

Cost of revenues

Cost of revenues for the three months ended March 31, 2021 and 2020 was $1.58 million and $0.33 million, respectively. The Company recorded an obsolescence loss of $0.03 million with respect to inventories, which was included in the cost of revenues for the three months ended March 31, 2021 compared with an obsolescence loss of $0.30 million for the same period in 2020. The decrease of inventory provision is due to the obsolescence of inventory held for sale by the Boqi pharmacies in Dalian, whose stores suffered from the lockdown policy in effect due to the COVID-19 pandemic.

Gross profit

Gross profit for the three months ended March 31, 2021 and 2020 was $0.59 million and $0.08 million, respectively. For the three months ended March 31, 2021 and 2020, we had a gross margin of 27.32% and 19.85%, respectively. For the three months ended March 31, 2021 and 2020, the gross profit margin of our: (i) retail pharmacy segment were 17.17% in 2021; (ii) wholesale medical devices segment were 52.73% and 19.73%, respectively; (iii) wholesale pharmaceuticals segments were 36.21% and 19.99%, respectively; and (iv) medical services segment was 9.32% for the three months ended March 31, 2021.

Operating expenses

Operating expenses from continuing operations were $3.83 million for the three months ended March 31, 2021 as compared to $1.41 million for the same period in 2020, an increase of $2.43 million or 173%. The increase is primarily attributable to the inclusion of the operating expenses of the medical services segment of appropriately $0.32 million and the Chongqing Guanzan Technology Co., Ltd. (“Guanzan Group”) of approximately $0.51 million, which we acquired in March 2020, and the amortization of the discount relating to the convertible notes issued in 2021 of $1.61 million, and general operating expenses which primarily include legal expenses of $0.28 million and audit fee of $0.15 million and other compliance expense.

Other expenses

For the three months ended March 31, 2021 and 2020, we reported other expenses of $0.03 million and $0.02 million, respectively. Other expenses mainly consisted of interest expense relating to the bank loans of the Guanzan Group, Chongqing Guoyitang Hospital Co., Ltd. (“Guoyitang”) and Chaohu Zhongshan Minimally Invasive Hospital (“Zhongshan”). The Company completed the acquisitions of Guoyitang and Zhongshan in February, 2021.

Net loss from continuing operation

Net loss from continuing operations was $3.29 million and $1.35 million for the three months ended March 31, 2021 and 2020, respectively. The increase was primarily due to the increase in operating expenses and the other expenses described above.

Net loss attributable to BOQI International Medical Inc.

As a result of the foregoing our net loss attributable to BOQI International Medical Inc. increased by $1.14 million to $3.33 million for the three months ended March 31, 2021 from $2.19 million for the three months ended March 31, 2020.

Cash and working capital

As of March 31, 2021, we had cash of $2.84 million and negative working capital of $0.18 million as compared to cash of $0.14 million and working capital of $9.62 million as of December 31, 2020.

About BOQI International Medical Inc.

BOQI International Medical Inc. was founded in 2006. In February 2019, the Board of Directors of the Company determined to focus on the healthcare industry. The Company is now exclusively a healthcare products and provider, offering a broad range of healthcare products and related services and operates two private hospitals. 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 the Coronavirus (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:

Janice Wang
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Phone: +1 571-464-9470 (from U.S.)
+86 13811768559 (from China)

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

March 31

December 31

2021

2020

ASSETS

CURRENT ASSETS

Cash

$

2,830,834

$

135,309

Restricted cash

4,590

-

Accounts receivable, net

7,169,691

6,686,552

Advances to suppliers

3,093,935

2,693,325

Amount due from related parties

41,012

-

Inventories, net

3,569,135

735,351

Prepayments and other receivables

4,941,351

14,880,526

Operating lease-right of use assets

46,521

53,425

Total current assets

21,697,069

25,184,488

NON-CURRENT ASSETS

Deferred tax assets

181,451

193,211

Property, plant and equipment, net

1,769,927

910,208

Operating lease-right of use assets

1,572,515

-

Intangible assets-net

13,445

-

Goodwill

24,512,118

6,914,232

Total non-current assets

28,049,456

8,017,651

TOTAL ASSETS

$

49,746,525

$

33,202,139

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Short-term loans

$

1,054,510

$

904,228

Long-term loans due within one year

496,974

34,201

Convertible promissory notes, net

5,132,530

3,328,447

Accounts payable, trade

10,183,541

5,852,050

Advances from customers

529,279

194,086

Amount due to related parties

791,581

226,514

Taxes payable

60,322

773,649

Other payables and accrued liabilities

4,849,557

4,228,976

Lease liability-current

354,705

23,063

Total current liabilities

23,452,999

15,565,214

Lease liability-non current

1,396,148

22,457

Long-term loans - non-current

425,592

720,997

Total non-current liabilities

1,821,740

743,454

TOTAL LIABILITIES

25,274,739

16,308,668

EQUITY

Common stock, $0.001 par value; 50,000,000 shares authorized; 20,131,488 and 13,254,587 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

20,131

13,254

Additional paid-in capital

37,362,809

26,344,920

Statutory reserves

2,263,857

2,263,857

Accumulated deficit

(16,248,215

)

(12,914,973

)

Accumulated other comprehensive income

853,795

1,003,392

Total BOQI International Medical Inc.’s equity

24,252,377

16,710,450

NON-CONTROLLING INTERESTS

219,409

183,021

Total equity

24,471,786

16,893,471

Total liabilities and equity

$

49,746,525

$

33,202,139

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE GAIN/LOSS
(UNAUDITED)

For three months ended
March 31

2021

2020

REVENUES

2,168,004

414,584

COST OF REVENUES

1,575,743

332,299

GROSS PROFIT(LOSS)

592,261

82,285

OPERATING EXPENSES:

Sales and marketing

452,636

41,070

General and administrative

3,380,014

1,364,952

Total operating expenses

3,832,650

1,406,022

LOSS FROM OPERATIONS

(3,240,389

)

(1,323,737

)

OTHER INCOME (EXPENSE)

Interest expense

44,355

21,684

Other (income)/ expense

(12,865

)

545

Total other income (expense), net

(31,490

)

(22,229

)

LOSS BEFORE INCOME TAXES

(3,271,879

)

(1,345,966

)

PROVISION FOR INCOME TAXES

18,748

1,268

NET LOSS FROM CONTINUING OPERATIONS

(3,290,627

)

(1,347,234

)

DISCONTINUED OPERATIONS

Income/(loss) from operations of discontinued operations

-

(854,957

)

NET LOSS

(3,290,627

)

(2,202,191

)

Less: net income (loss) attributable to non-controlling interest

42,615

(7,316

)

NET LOSS ATTRIBUTABLE TO BOQI INTERATIONAL MEDICAL INC.

$

(3,333,242

)

$

(2,194,875

)

OTHER COMPREHENSIVE LOSS

Foreign currency translation adjustment

(149,597

)

(120,201

)

TOTAL COMPREHENSIVE LOSS

(3,440,224

)

(2,322,392

)

Less: comprehensive loss attributable to non-controlling interests

(10,886

)

(4,935

)

COMPREHENSIVE LOSS ATTRIBUTABLE TO BOQI INTERNATIONAL MEDICAL INC.

$

(3,429,338

)

$

(2,317,457

)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES

Basic and diluted

16,693,038

9,271,641

INCOME (LOSS) PER SHARE

Continuing operation-Basic and diluted

$

(0.20

)

$

(0.15

)

Discontinued operation-Basic and diluted

$

-

$

(0.09

)

Basic and diluted

$

(0.20

)

$

(0.24

)