NEW YORK, May 22, 2023 — BIMI International Medical Inc. (the “Company”), a leading medical solutions provider, today announced its financial results for the three months ended March 31, 2023. The Company reported a significant decrease in net losses and notable improvements in working capital, underlining the ongoing success of its business strategy and operational effectiveness.
Revenues for the three months ended March 31, 2023 and 2022 were $3,197,637 and $2,714,711, respectively. The revenues for the three months ended March 31, 2023 were primarily attributable to the revenues from sales of healthcare products by Phenix Bio Inc., a newly acquired subsidiary, and from the wholesale sales of generic drugs and medical devices. The $482,926 increase in revenues is mainly due to the $2,022,508 of sales of healthcare products by Phenix. Revenues for both periods exclude the operations of the Company’s Zhongshan, Qiangsheng, Eurasia and Minkang hospitals, that are held for sale and accounted for separately.
For the three months ended March 31, 2023, BIMI reported a net loss of $883,764, a 70.32% decrease from the net loss of $2,975,642 for the same period in 2022.
The Company also reported changes in its cash position and working capital. From December 31, 2022, to March 31, 2023, BIMI experienced a decrease in cash of approximately 26.01%, from $2,336,636 to $1,730,063. However, the Company’s net working capital saw a considerable increase during this period, transitioning from a negative $2,126,672 to a positive $2,369,321, representing a change of approximately +211.42%.
“We are delighted with the initial contribution from Phenix Bio Inc., and we look forward to its continued positive impact on our revenue stream,” said Mr. Tiewei Song, the CEO of BIMI International Medical Inc.
About BIMI International Medical Inc.
BIMI International Medical Inc. is 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.
Investor Relations Contact
Investor Relations Department of BIMI International Medical Inc.
Email: vinson@usbimi.com
Tel: +1 949 981 6274
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,730,063 | $ | 2,336,636 | ||||
| Accounts receivable, net | 3,915,373 | 3,208,286 | ||||||
| Advances to suppliers | 7,260,331 | 6,589,759 | ||||||
| Inventories, net | 8,465,313 | 7,654,242 | ||||||
| Prepayments and other receivables | 1,363,675 | 1,347,079 | ||||||
| Current assets from discontinued operations-held for sale | 2,243,316 | 2,099,673 | ||||||
| Total current assets | 24,978,071 | 23,235,675 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Deferred tax assets | 192,703 | 190,132 | ||||||
| Property, plant and equipment, net | 1,791,503 | 1,703,420 | ||||||
| Intangible assets-net | 512,235 | 16,183 | ||||||
| Operating lease-right of use assets | 3,028,518 | 2,942,265 | ||||||
| Goodwill | 2,065,666 | 2,065,666 | ||||||
| Long-term investment | – | 1,800,000 | ||||||
| Non-current assets from discontinued operations-held for sale | 3,704,990 | 3,761,149 | ||||||
| Total non-current assets | 11,295,615 | 12,478,815 | ||||||
| TOTAL ASSETS | $ | 36,273,686 | $ | 35,714,490 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term loans | $ | 829 ,489 | $ | 818,425 | ||||
| Long-term loans due within one year | 163,183 | 105,965 | ||||||
| Convertible promissory notes, net | 773,985 | 1,108,785 | ||||||
| Accounts payable, trade | 10,093,270 | 10,785,531 | ||||||
| Advances from customers | 1,149,438 | 923,131 | ||||||
| Amount due to related parties | 2,519,803 | 4,600,441 | ||||||
| Taxes payable | 22,075 | 71,915 | ||||||
| Other payables and accrued liabilities | 3,099,929 | 3,175,574 | ||||||
| Lease liability-current | 665,115 | 532,630 | ||||||
| Current liabilities from discontinued operations-held for sale | 3,292,463 | 3,239,950 | ||||||
| Total current liabilities | 22,608,750 | 25,362,347 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Lease liability – non-current | 2,587,353 | 2,574,751 | ||||||
| Long-term loans – non-current | 160,077 | 314,786 | ||||||
| Non-current liabilities from discontinued operations-held for sale | 2,298,314 | 2,245,373 | ||||||
| Total non-current liabilities | 5,045,744 | 5,134,910 | ||||||
| TOTAL LIABILITIES | 27,654,494 | 30,497,257 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, $0.001 par value; 200,000,000 shares authorized; 4,034,780 and 3,764,780 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively * | 4,035 | 3,765 | ||||||
| Additional paid-in capital | 77,424,486 | 71,899,271 | ||||||
| Statutory reserves | 2,263,857 | 2,263,857 | ||||||
| Accumulated deficit | (71,027,106 | ) | (70,143,785 | ) | ||||
| Accumulated other comprehensive income (loss) | (1,059,889 | ) | 24,583 | |||||
| Total BIMI International Medical Inc.’s equity | 7,605,383 | 4,047,691 | ||||||
| NON-CONTROLLING INTERESTS | 1,013,809 | 1,169,542 | ||||||
| Total stockholders’ equity | 8,619,192 | 5,217,233 | ||||||
| Total liabilities and stockholders’ equity | $ | 36,273,686 | $ | 35,714,490 | ||||
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
| For three months ended March 31, |
||||||||
| 2023 | 2022 | |||||||
| REVENUES | 3,197,637 | 2,714,711 | ||||||
| COST OF REVENUES | 1,507,396 | 2,342,367 | ||||||
| GROSS PROFIT | 1 ,690,241 | 372,344 | ||||||
| OPERATING EXPENSES: | ||||||||
| Sales and marketing | 256,158 | 345,564 | ||||||
| General and administrative | 853,337 | 2,176,482 | ||||||
| Impairment loss of goodwill | – | – | ||||||
| Total operating expenses | 1,109,495 | 2,522,046 | ||||||
| INCOME/(LOSS) FROM OPERATIONS | 580,746 | (2,149,702 | ) | |||||
| OTHER INCOME (EXPENSE) | ||||||||
| Interest income | 261 | 146 | ||||||
| Interest expense | (35,299 | ) | (48,136 | ) | ||||
| Exchange gains/loss | 2,125 | (3,266 | ) | |||||
| Amortization of convertible notes | – | (771,124 | ) | |||||
| Other expense | (1,408,468 | ) | (631 | ) | ||||
| Total other income (expense), net | (1,441,381 | ) | (823,011 | ) | ||||
| LOSS BEFORE INCOME TAXES | (860,635 | ) | (2,972,713 | ) | ||||
| PROVISION FOR INCOME TAXES | – | 2,929 | ||||||
| NET LOSS FROM CONTINUING OPERATIONS | (860,635 | ) | (2,975,642 | ) | ||||
| DISCONTINUED OPERATIONS | ||||||||
| Loss from operations of discontinued operations-held for sale | 23,129 | – | ||||||
| NET LOSS | (883,764 | ) | (2,975,642 | ) | ||||
| Less: net income (loss) attributable to non-controlling interest | 443 | (1,082 | ) | |||||
| NET LOSS ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICAL INC. | $ | (884,207 | ) | $ | (2,974,560 | ) | ||
| OTHER COMPREHENSIVE LOSS | ||||||||
| Foreign currency translation adjustment | (1,084,472 | ) | (550,080 | ) | ||||
| TOTAL COMPREHENSIVE LOSS | (1,968,236 | ) | (3,525,722 | ) | ||||
| Less: comprehensive loss attributable to non-controlling interests | (896,867 | ) | (24,974 | ) | ||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICAL INC. | $ | (1,071,369 | ) | $ | (3,500,748 | ) | ||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||
| Basic and diluted | 3,834,443 | 10,087,665 | ||||||
| LOSS PER SHARE | ||||||||
| Continuing operation-Basic and diluted | $ | (0.22 | ) | $ | (0.29 | ) | ||
| Discontinued operation-Basic and diluted | $ | (0.01 | ) | $ | – | |||
| Basic and diluted | $ | (0.23 | ) | $ | (0.29 | ) | ||
BIMI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the three months ended March 31, |
||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (883,764 | ) | $ | (2,975,642 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Depreciation and amortization | 53,800 | 89,159 | ||||||
| Inventories impairment reserve | 27,975 | – | ||||||
| Allowance for doubtful accounts | – | (584 | ) | |||||
| Profit/Loss on disposal of discontinuing operations and subsidiaries | (1,338,666 | ) | – | |||||
| Amortization of discount of convertible promissory notes | – | 771,124 | ||||||
| Change in operating assets and liabilities | ||||||||
| Accounts receivable | 287,763 | 901,465 | ||||||
| Advances to suppliers | 4,982,127 | (1,387,694 | ) | |||||
| Prepayments and other receivables | (11,164 | ) | 1,416,960 | |||||
| Inventories | (84,382 | ) | 862,481 | |||||
| Operating lease-right of use assets | (1,510,111 | ) | 3,187,153 | |||||
| Accounts payable, trade | (673,409 | ) | (2,859,880 | ) | ||||
| Advances from customers | 226,307 | 479,832 | ||||||
| Operating lease liabilities | 1,861,441 | (3,315,170 | ) | |||||
| Taxes payable | (52,411 | ) | (322,917 | ) | ||||
| Other payables and accrued liabilities | (67,683 | ) | (2,271,842 | ) | ||||
| Net cash provided by (used in) operating activities | 2,817,823 | (5,425,555 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Discontinued operations-disposal of Zhuoda | – | (273,363 | ) | |||||
| Discontinued operations-held for sale of Minkang, Eurasia, Qiangsheng and Zhongshan Hospitals | – | 1,951,652 | ||||||
| Purchase of property, plant, and equipment | – | – | ||||||
| Net cash (used in) provided by investing activities | – | 1,678,289 | ||||||
| – | – | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from short-term loan | 11,064 | – | ||||||
| Repayment of long-term loan | (154,709 | ) | (191,530 | ) | ||||
| Net proceeds from issuance of convertible promissory notes | – | – | ||||||
| Repayment of short-term loans | – | (1,027,522 | ) | |||||
| Proceeds from long-term loan | 57,218 | – | ||||||
| Amount financed from/(to) related parties | (2,080,638 | ) | 424,085 | |||||
| Net cash used in financing activities | (2,167,065 | ) | (794,967 | ) | ||||
| EFFECT OF EXCHANGE RATE ON CASH | (1,257,331 | ) | 981,932 | |||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (606,573 | ) | (3,560,301 | ) | ||||
| CASH AND CASH EQUIVALENTS, beginning of period | 2,336,636 | 4,797,849 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 1,730,063 | $ | 1,237,548 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | – | $ | 428,753 | ||||
| Cash paid for interest expense, net of capitalized interest | $ | 20,408 | $ | 163,883 | ||||
