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BIMI International Medical Announces First Quarter 2022 Financial Results

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  




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BIMI International Medical Announces First Quarter 2022 Financial Results 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. …

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