BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the
“Company”), a healthcare products and services provider, today
announced its financial results for the fiscal year ended December
31, 2021.
Revenues for the years ended December 31, 2021 and 2020 were
$27,079,795 and $12,844,902, respectively. The increase of
$14,234,893 is mainly due to the full year of revenues of the
Guanzan Group, which was acquired in March 2020 and acquisitions of
the Guoyitang, Qiangsheng, Eurasia and Minkang hospitals in
2021.
For the year ended December 31, 2021, the revenues of the retail
pharmacies, wholesale medical devices, wholesale pharmaceuticals
and medical services were $316,647, $3,445,107, $16,905,498 and
$6,398,379, respectively. For the year ended December 31, 2020, the
revenues of the retail pharmacies, wholesale medical devices and
wholesale pharmaceuticals were $84,087, $3,059,462 and $ 9,701,353,
respectively.
For the year ended December 31, 2021 the Company had a gross
profit margin of 17% compared with gross profit margin of 19% for
the year ended December 31, 2020. The decrease in the gross profit
margin in 2021 was mainly due to the decrease in the wholesale
pharmaceuticals segment from 19.1% in 2020 to 2.7% in 2021 caused
by a change in the product mix to products with a lower gross
profit margin.
The gross profit margin of the retail pharmacies, wholesale
medical devices, wholesale pharmaceuticals and medical services
segments for the year ended December 31, 2021 were 36.8%, 12.0%,
2.7% and 57.3%, respectively. The gross profit margin of the retail
pharmacies, wholesale medical devices, wholesale pharmaceuticals
segments for the year ended December 31, 2020 were 16.6%, 18.9% and
19.1%, respectively.
Operating expenses were $12,703,345 for the year ended December
31, 2021 compared to $6,255,098 for the year ended December 31,
2020, an increase of $6,207,182, or 99%. Operating expenses for the
year ended December 31, 2021 consisted mainly of salary and
employee benefits in the amount of $2,273,313, amortization of the
convertible notes in the amount of $1,977,401, selling expenses in
the amount of $3,180,252, depreciation and amortization expense of
$244,116, audit fees of $543,299, and other professional service
fees in the amount of $906,852.
For the year ended December 31, 2021, the Company reported other
expense of $26,795,423 relating to the impairment of goodwill
compared to other income of $460,552 for the year ended December
31, 2020. For the year ended December 31, 2021, the Guanzan Group
incurred an impairment charge of $ 1,923,071. Such impairment
charge was recorded after the completion of an earn-out period.
Guoyitang incurred an impairment charge of $7,154,393, primarily
because the 2021 performance targets set forth in Guoyitang’s
acquisition agreement were not met as a result of the pandemic and
lockdowns. Zhongshan hospital incurred an impairment charge of
$9,134,277, primarily because its 2021 performance targets were not
met as a result of the pandemic and lockdowns. The Qiangsheng,
Eurasia and Minkang hospitals incurred an impairment charge of
$7,916,431, primarily because their 2021 performance targets were
not met as a result of the pandemic and lockdowns.
The Company reported a net loss of $34,921,745 for the year
ended December 31, 2021, compared to a net loss of $1,877,925 for
the year ended December 31, 2020, an increase of $33,043,820.
As of December 31, 2021, the Company had cash of $4,797,849 and
negative working capital of $932,493 as compared to cash of
$135,309 and working capital of $9,619,274 on December 31,
2020.
“Our newly-acquired businesses were severely impacted by
COVID-19 and local lockdowns which caused the significant
impairment charges in 2021. We believe the decision for the
impairment charges was a responsible action that will benefit our
shareholders in the long term. As part of our efforts to improve
operations and increase shareholder value, we plan to enhance our
smart hospital brand by providing more technical and management
support, such as a cloud-based telehealth platform and a medical
talent pool program to our existing hospitals, and use our
established brand to attract more hospitals that may bring new
opportunities and profits to our Company,” said Mr. Tiewei Song,
Chief Executive Officer and President 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)-801-2803Email: BIMI@dgipl.com
BIMI INTERNATIONAL MEDICAL, INC. AND ITS
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS
|
|
December 31 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
|
|
|
Cash |
|
$ |
4,797,849 |
|
|
$ |
135,309 |
|
Accounts receivable, net |
|
|
7,005,442 |
|
|
|
6,686,552 |
|
Advances to suppliers |
|
|
3,163,836 |
|
|
|
2,693,325 |
|
Amount due from related parties |
|
|
622,554 |
|
|
|
- |
|
Inventories, net |
|
|
2,639,883 |
|
|
|
735,351 |
|
Prepayments and other receivables |
|
|
2,930,083 |
|
|
|
14,880,526 |
|
Operating lease-right of use assets |
|
|
- |
|
|
|
53,425 |
|
Total current assets |
|
|
21,159,647 |
|
|
|
25,184,488 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
Deferred tax assets |
|
|
207,549 |
|
|
|
193,211 |
|
Property, plant and equipment, net |
|
|
3,521,401 |
|
|
|
910,208 |
|
Intangible assets, net |
|
|
18,039 |
|
|
|
- |
|
Operating lease-right of use assets |
|
|
4,845,509 |
|
|
|
- |
|
Goodwill |
|
|
8,376,217 |
|
|
|
6,914,232 |
|
Total non-current assets |
|
|
16,968,715 |
|
|
|
8,017,651 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
38,128,362 |
|
|
$ |
33,202,139 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
Short-term loans |
|
$ |
1,799,394 |
|
|
$ |
904,228 |
|
Long-term loans due within one year |
|
|
369,187 |
|
|
|
34,201 |
|
Convertible promissory notes, net |
|
|
5,211,160 |
|
|
|
3,328,447 |
|
Accounts payable, trade |
|
|
7,339,210 |
|
|
|
5,852,050 |
|
Advances from customers |
|
|
1,943,028 |
|
|
|
194,086 |
|
Amount due to related parties |
|
|
730,285 |
|
|
|
226,514 |
|
Taxes payable |
|
|
662,777 |
|
|
|
773,649 |
|
Other payables and accrued liabilities |
|
|
3,082,917 |
|
|
|
4,228,976 |
|
Lease liability-current |
|
|
954,182 |
|
|
|
23,063 |
|
Total current liabilities |
|
|
22,092,140 |
|
|
|
15,565,214 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Lease liability-non current |
|
|
4,161,789 |
|
|
|
22,457 |
|
Long-term loans - non-current |
|
|
538,006 |
|
|
|
720,997 |
|
Total non-current liabilities |
|
|
4,699,795 |
|
|
|
743,454 |
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES |
|
|
26,791,935 |
|
|
|
16,308,668 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value; 200,000,000 shares authorized;
8,502,222 and 2,650,917 shares issued and outstanding as of
December 31, 2021 and 2020, respectively * |
|
|
8,502 |
|
|
|
2,651 |
|
Additional paid-in capital |
|
|
55,220,130 |
|
|
|
26,355,523 |
|
Statutory reserves |
|
|
2,263,857 |
|
|
|
2,263,857 |
|
Accumulated deficit |
|
|
(47,900,929 |
) |
|
|
(12,914,973 |
) |
Accumulated other comprehensive income |
|
|
1,601,870 |
|
|
|
1,003,392 |
|
Total BIMI International Medical Inc.’s equity |
|
|
11,193,430 |
|
|
|
16,710,450 |
|
|
|
|
|
|
|
|
|
|
NON-CONTROLLING INTERESTS |
|
|
142,997 |
|
|
|
183,021 |
|
Total equity |
|
|
11,336,427 |
|
|
|
16,893,471 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
38,128,362 |
|
|
$ |
33,202,139 |
|
|
* |
Retrospectively restated due to five for one reverse stock split,
see Note 24 |
The accompanying notes are an integral part of
the consolidated financial statements
BIMI INTERNATIONAL MEDICAL, INC. AND ITS
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE GAIN/LOSS
|
|
For the Years Ended
December 31 |
|
|
|
2021 |
|
|
2020 |
|
REVENUES |
|
|
27,079,795 |
|
|
|
12,844,902 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
|
22,483,404 |
|
|
|
10,402,085 |
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT |
|
|
4,596,391 |
|
|
|
2,442,817 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
3,180,252 |
|
|
|
783,134 |
|
General and administrative |
|
|
9,523,093 |
|
|
|
5,471,964 |
|
Total
operating expenses |
|
|
12,703,345 |
|
|
|
6,255,098 |
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS |
|
|
(8,106,954 |
) |
|
|
(3,812,281 |
) |
|
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
Interest income |
|
|
3,101 |
|
|
|
304 |
|
Interest expense |
|
|
(351,066 |
) |
|
|
(84,913 |
) |
Exchange gains |
|
|
24,967 |
|
|
|
547,114 |
|
Impairment loss of goodwill |
|
|
(26,128,171 |
) |
|
|
- |
|
Other expense |
|
|
(344,254 |
) |
|
|
(1,953 |
) |
Total other
income (expense), net |
|
|
(26,795,423 |
) |
|
|
460,552 |
|
|
|
|
|
|
|
|
|
|
LOSS
BEFORE INCOME TAXES |
|
|
(34,902,377 |
) |
|
|
(3,351,729 |
) |
|
|
|
|
|
|
|
|
|
PROVISION
FOR INCOME TAXES |
|
|
19,368 |
|
|
|
434,306 |
|
|
|
|
|
|
|
|
|
|
NET LOSS
FROM CONTINUING OPERATIONS |
|
|
(34,921,745 |
) |
|
|
(3,786,035 |
) |
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
Income/(loss) from operations of discontinued operations |
|
|
- |
|
|
|
1,908,110 |
|
|
|
|
|
|
|
|
|
|
NET
LOSS |
|
|
(34,921,745 |
) |
|
|
(1,877,925 |
) |
Less: net income attributable to non-controlling interest |
|
|
64,211 |
|
|
|
119,158 |
|
NET LOSS
ATTRIBUTABLE TO BIMI INTERATIONAL MEDICAL INC. |
|
$ |
(34,985,956 |
) |
|
$ |
(1,997,083 |
) |
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
598,478 |
|
|
|
(941,957 |
) |
|
|
|
|
|
|
|
|
|
TOTAL
COMPREHENSIVE LOSS |
|
|
(34,323,267 |
) |
|
|
(2,819,882 |
) |
Less: comprehensive loss attributable to non-controlling
interests |
|
|
(26,056 |
) |
|
|
(17,113 |
) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICAL
INC. |
|
$ |
(34,297,211 |
) |
|
$ |
(2,802,769 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
5,362,927 |
|
|
|
2,134,562 |
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
|
|
Continuing operation-Basic and diluted |
|
$ |
(6.51 |
) |
|
$ |
(1.77 |
) |
Discontinued operation-Basic and diluted |
|
$ |
- |
|
|
$ |
0.89 |
|
Basic and diluted |
|
$ |
(6.51 |
) |
|
$ |
(0.88 |
) |
BIMI INTERNATIONAL MEDICAL, INC. AND ITS
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
For the Years Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(34,921,745 |
) |
|
$ |
(3,786,035 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
244,116 |
|
|
|
56,041 |
|
Impairment loss of Goodwill |
|
|
26,128,171 |
|
|
|
- |
|
Inventories impairment reserve |
|
|
93,884 |
|
|
|
9,294 |
|
Allowance for doubtful accounts |
|
|
(53,698 |
) |
|
|
146,977 |
|
Amortization of discount of convertible promissory notes |
|
|
554,292 |
|
|
|
2,091,927 |
|
|
|
|
|
|
|
|
|
|
Change in
operating assets and liabilities |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
685,426 |
|
|
|
(4,997,548 |
) |
Advances to suppliers |
|
|
(457,841 |
) |
|
|
(1,470,339 |
) |
Inventories |
|
|
(1,434,531 |
) |
|
|
205,580 |
|
Prepayments and other receivables |
|
|
9,812,297 |
|
|
|
(1,021,703 |
) |
Operating lease-right of use assets |
|
|
(976,372 |
) |
|
|
(53,425 |
) |
Accounts payable, trade |
|
|
(453,738 |
) |
|
|
4,548,651 |
|
Advances from customers |
|
|
1,702,762 |
|
|
|
(1,156,040 |
) |
Operating lease liabilities |
|
|
915,004 |
|
|
|
45,520 |
|
Taxes payable |
|
|
(495,987 |
) |
|
|
429,006 |
|
Other payables and accrued liabilities |
|
|
(2,617,765 |
) |
|
|
590,979 |
|
Net cash used in operating activities from continuing
operations |
|
|
(1,275,725 |
) |
|
|
(4,361,115 |
) |
Net cash provided by operating activities from discontinued
operations |
|
|
- |
|
|
|
843,382 |
|
Net cash used in operating activities |
|
|
(1,275,725 |
) |
|
|
(3,517,733 |
) |
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Cash received from acquisition of Guanzan Group |
|
|
- |
|
|
|
95,220 |
|
Cash received from acquisition of subsidiaries |
|
|
189,896 |
|
|
|
- |
|
Payment for the acquisition of Qiangsheng, Eurasia and Mingkang
Hospitals |
|
|
(3,136,910 |
) |
|
|
- |
|
Payment for the acquisition of Guoyitang and Zhongshan |
|
|
- |
|
|
|
(9,195,543 |
) |
Deposit for the acquisition of Cogmer |
|
|
3,065,181 |
|
|
|
(3,065,181 |
) |
Purchase of property, plant, and equipment |
|
|
(814,684 |
) |
|
|
(258,961 |
) |
Net cash used in investing activities from continuing
operations |
|
|
(696,517 |
) |
|
|
(12,424,465 |
) |
Net cash provided by investing activities from discontinued
operations |
|
|
- |
|
|
|
11,700,000 |
|
Net cash (used in) investing
activities |
|
|
(696,517 |
) |
|
|
(724,465 |
) |
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from short-term loan |
|
|
- |
|
|
|
65,302 |
|
Proceeds from long-term loan |
|
|
151,995 |
|
|
|
534,201 |
|
Net proceeds from issuance of convertible promissory notes |
|
|
6,500,000 |
|
|
|
3,457,325 |
|
Repayment of short-term loans |
|
|
(33,273 |
) |
|
|
(216,462 |
) |
Amount financed from (to) related parties |
|
|
(478,183 |
) |
|
|
148,700 |
|
Net cash provided by financing activities from continuing
operations |
|
|
6,140,539 |
|
|
|
3,989,066 |
|
Net cash provided by financing activities from discontinued
operations |
|
|
- |
|
|
|
- |
|
Net cash provided by investing activities |
|
|
6,140,539 |
|
|
|
3,989,066 |
|
|
|
|
|
|
|
|
|
|
EFFECT OF
EXCHANGE RATE ON CASH |
|
|
494,243 |
|
|
|
386,840 |
|
|
|
|
|
|
|
|
|
|
INCREASE
IN CASH |
|
|
4,662,540 |
|
|
|
133,708 |
|
CASH AND
CASH EQUIVALENTS, beginning of period |
|
|
135,309 |
|
|
|
1,601 |
|
CASH AND
CASH EQUIVALENTS, end of period |
|
$ |
4,797,849 |
|
|
$ |
135,309 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income tax |
|
$ |
444,633 |
|
|
$ |
45,178 |
|
Cash paid for interest expense, net of capitalized interest |
|
$ |
163,883 |
|
|
$ |
101,417 |
|
|
|
|
|
|
|
|
|
|
NON-CASH
TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Issuance of shares of Common stock for the equity acquisition of
Chongqing Guanzan Technology Co., Ltd. |
|
$ |
3,818,000 |
|
|
$ |
4,537,000 |
|
Issuance of shares of Common stock for equity acquisition of
Zhongshan Chaohu Hospital |
|
$ |
3,480,000 |
|
|
$ |
- |
|
Issuance of shares of Common stock for equity acquisition of
Guoyitang Hospital |
|
$ |
3,820,000 |
|
|
$ |
- |
|
Issuance of shares of Common stock for equity acquisition of
Minkang, Qiangsheng and Eurasia hospitals |
|
$ |
5,930,619 |
|
|
$ |
- |
|
Issuance of shares of Common stock for equity acquisition of
Zhuoda |
|
$ |
1,498,200 |
|
|
|
- |
|
Issuance of shares of Common stock for payment of improvements to
offices |
|
$ |
696,896 |
|
|
|
- |
|
Goodwill recognized from equity acquisition of Zhongshan Chaohu
Hospital |
|
$ |
10,443,494 |
|
|
$ |
- |
|
Goodwill recognized from equity acquisition of Guoyitang
Hospital |
|
$ |
7,154,393 |
|
|
$ |
- |
|
Goodwill recognized from equity acquisition of Minkang, Qiangsheng
and Eurasia hospitals |
|
$ |
9,067,529 |
|
|
$ |
- |
|
Goodwill recognized from equity acquisition of Zhuoda |
|
$ |
924,740 |
|
|
|
|
|
Goodwill recognized from equity acquisition of Guanzan Group |
|
$ |
6,914,212 |
|
|
$ |
6,914,212 |
|
Outstanding payment for equity acquisition of Zhuoda |
|
$ |
4,800,000 |
|
|
$ |
- |
|
Outstanding payment for equity acquisition of Guanzan Group |
|
$ |
- |
|
|
$ |
3,065,181 |
|
Common stock to be issued upon conversion of convertible promissory
notes |
|
$ |
5,400,000 |
|
|
$ |
- |
|
BIMI International Medical (NASDAQ:BIMI)
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BIMI International Medical (NASDAQ:BIMI)
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