EX-99.1 2 ea164760ex99-1_bimiin.htm PRESS RELEASE DATED AUGUST 22, 2022

Exhibit 99.1

 

BIMI Announces Second Quarter 2022 Financial Results

 

New York, August 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

 

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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

 

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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

 

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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 

 

 

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