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     $ -  
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