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 SUBSIDIARIESCONDENSED 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(UNAUDITED)

    For three months endedMarch 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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)

    For the three months endedMarch 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  
             

 

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