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BOQI International Medical Inc. Announces Second Quarter 2020 Financial Results, Revenue increased by 1026% Over the Same Period Last Year

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

NEW YORK, Oct. 19, 2020 (GLOBE NEWSWIRE) — BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announced its financial results for the second quarter and six months ended June 30, 2020.Second Quarter 2020 Financial Highlights:Total revenues increased by 1026 % in the three months ended June 30, 2020 compared to the three months ended June 30, 2019.Gross profit margin increased to 22.77% during the three months ended June 30, 2020 compared to 4.35% for the three months ended June 30, 2019.Net income increased by 629% in the three months ended June 30, 2020 compared to the three months ended June 30, 2019.“We are pleased with our results in the second quarter and the concerted efforts of our team across our wholesale business in medical devices and medicine,” said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. “We acquired Guanzan Group this year, which allows us to better align with the current environment and positions us for future growth. As more healthcare facilities re-opened for business and resumed patient treatment in the second half of the year, we believe our products can meet the expected rising customer demand, meanwhile bring benefit to our shareholders.”Revenues     Revenues for the three months ended June 30, 2020 and 2019 were $3,790,847 and $336,690, respectively. The Company’s revenues for the three months ended June 30, 2020 were principally attributable to the newly acquired Guanzan Group’s wholesale sales of medical devices and generic drugs. The Company’s revenues for the three months ended June 30, 2019 were attributable to the sales of products manufactured by the NF Group and from energy saving technical services and product collaboration processing services performed by the NF Group, which the Company sold in June 2020. Revenues from the wholesale medical devices segment and the wholesale medicine segment for the three months ended June 30, 2020 were $2,059,189 and $1,730,175, respectively. During the second quarter of 2020, the Guanzan Group benefitted from the recovery from COVID-19 in the PRC.Revenues for the six months ended June 30, 2020 and 2019 were $4,226,378 and $912,402, respectively. The 363% increase in revenues is attributable to the acquisition of the Guanzan Group in late March 2020. Revenues from the wholesale medicine segment for the six months ended June 30, 2020 were $2,307,311 and revenues from the wholesale medical device segment for the six months ended June 30, 2020 were $1,896,733. The Company’s revenue for the six months ended June 30, 2019 were attributable to the sales of products manufactured by the NF Group and from energy saving technical services and product collaboration processing services performed by the NF Group.Cost of Revenues  Cost of revenues for the three months ended June 30, 2020 and 2019 were $2,941,955 and $319,172, respectively, reflecting the impact of the acquisition of the Guanzan Group. Cost of revenues for the three months ended June 30, 2019 consisted primarily of material costs, direct labor, depreciation, and manufacturing overhead, which were directly attributable to the manufacturing of products and the rendering of services by the NF Group.Cost of revenues for the six months ended June 30, 2020 and 2019 were $3,407,169 and $749,848, respectively. Cost of revenues for the six months ended June 30, 2019 were attributable to the manufacturing of products and the rendering of services by the NF Group.Gross ProfitFor the three months ended June 30, 2020, the Company had a gross profit margin of 22.77% compared with a gross profit margin of 4.35% in the quarter ended June 30, 2019. The improvement in the gross profit margin in the three months ended June 30, 2020 is mainly due to the inclusion of a full quarter of revenues from the wholesale medical devices and wholesale medicine segments. The gross profit margin of the wholesale medical devices and wholesale medicine segments for three months ended June 30, 2020 were 23.22% and 25.56%, respectively. The gross profit for the Company in the three months ended June 30, 2019 was related to the operations of the NF Group. For the six months ended June 30, 2020, the Company had a gross profit margin of 19.38% compared with a gross profit margin of 17.82% in the first six months of 2019. The improvement in the gross profit margin in the six months ended June 30, 2020 is mainly due to the inclusion of the revenues from the wholesale medical devices and wholesale medicine segments since the acquisition in March 2020. The gross profit margin of the wholesale medical devices and wholesale medicine segments for six months ended June 30, 2020 were 22.78% and 25.16%, respectively. The gross profit for the Company in the six months ended June 30, 2019 was related to the operations of the NF Group.Operating Expenses    Operating expenses were $2,922,868 for the three months ended June 30, 2020 compared to $726,940 for the same period in 2019, an increase of $2,195,928. The increase is mainly due to the additional amortization of the discounted convertible notes, meeting and promotional expenses, pharmaceutical and medical device industry compliance management expenses and professional expenses. The Company’s operating expenses for the three months ended June 30, 2019 consisted primarily of general and administrative expenses, and selling and marketing expenses of the NF Group.Operating expenses were $4,893,723 for the six months ended June 30, 2020 compared to $1,248,456 for the same period in 2019, an increase of $3,645,267, or 292%. The Company’s operating expenses for the six months ended June 30, 2019 consisted primarily of general and administrative expenses, and selling and marketing expenses of the NF Group.Other IncomeFor the three months ended June 30, 2020, the Company reported other income of $6,986,587 and other interest expense of $195,486. For the six months ended June 30, 2020, the Company reported other income of $6,944,469 and other interest expense of $377,466.  Other income in both periods includes the gain generated from the disposal of the NF Group. Other expense in both periods consisted of interest expense.Net Profit
For the three months ended June 30, 2020, the Company reported a net profit of $4,673,854 compared to a net loss of $883,245 for the same period of 2019. For the six months ended June 30, 2020 the Company reported a net profit of $2,471,663 compared to a net loss of $1,425,693 for the same period of 2019. The net profit in both periods is attributable to the gain generated from the disposal of the NF Group.Liquidity and Capital ResourcesAt June 30, 2020, the Company had cash of $109,402 and negative working capital of $0.59 million as compared to cash of $36,674 and negative working capital of $500,765 at December 31, 2019.About BOQI International Medical Inc.BOQI International Medical Inc. (formerly known as NF Energy Saving Corporation) (NASDAQ: BIMI) was founded in 2006. In February 2019, the Board of Directors of the company was reorganized with a focus on the health industry. The Company is now exclusively a healthcare products provider, offering a broad range of healthcare products and related services. For more information about BOQI International Medical, please visit www.usbimi.com.Safe Harbor StatementCertain 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 the Coronavirus (COVID-19), the demand for the Company’s products and the Company’s customers’ economic condition,  risk of operations 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. Investors are urged to read the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020 for further information about the Company’s financial results, liquidity and capital resources.IR Contact:Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: BIMI@dgipl.comBOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
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