NF Energy Saving Corporation Announces Third Quarter 2019 Financial Results

NEW YORK, Nov. 15, 2019 (GLOBE NEWSWIRE) — NF Energy Saving Corporation (NASDAQ: BIMI) (“BIMI” or the “Company”) today reported financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Financial Highlights:Revenues were $208,402 and $1,120,804 for the three and nine months ended September 30, 2019, respectively.Total cost of revenues was $281,014 and $1,030,862 for the three and nine months ended September 30, 2019. Net loss for the three and nine months ended September 30, 2019 of was $547,689 and $1,973,382.“The third quarter results only reflected our business ended September 30, 2019. Our new acquisition of Boqi Zhengji Pharmacy was not reflected in the current report.” said Mr. Tiewei Song, Chief Executive Officer and President of NF Energy Saving Corporation. “With our ongoing strategic partnership, we are confident to deliver compelling value to our customers and investment community. Looking ahead, we believe that our strategy of growing membership can unleash the full potential of our consumer-centric health care model and create value for all stakeholders.”RevenuesRevenues were $208,402 and $1,120,804 for the three and nine months ended September 30, 2019, respectively, as compared to $1,102,693 and $1,814,111 for the corresponding periods in 2018.Total revenues decreased by $894,291 or 81.10% and $693,307 or 38.22% for the three and nine months ended September 30, 2019, respectively, as compared to the corresponding periods in 2018.The decrease in total revenues for the three and nine months ended September 30, 2019 is mainly due to the decline in demand for the Company’s products and services resulting from changes in the overall market.Cost of RevenuesTotal cost of revenues was $281,014 and $1,030,862 for the three and nine months ended September 30, 2019, as compared to $956,694 and $1,344,884 for the corresponding periods in 2018.Total cost of revenues decreased by $675,680 and $314,022, or approximately 70.63% and 23.35%, as compared to the corresponding periods in 2018. The decrease in cost of revenues was primarily due to the decrease in revenues.As a result, the Company had a gross loss of $72,612, or 34.84%, of total revenues and a gross profit $89,942, or 8.02%, of total revenues for the three and nine months ended September 30, 2019, respectively, as compared to a gross profit of $145,999, or 13.24%, of total revenues and $469,277, or 25.87%, of total revenues, for the corresponding periods in 2018, respectively.Loss From OperationsAs a result of the factors mentioned above, the Company incurred losses from operations of $431,919 and $1,517,821 for the three and nine months ended September 30, 2019, as compared to losses of  $224,704 and $2,185,046 for the corresponding period in 2018, an increase of $207,215, or 92.22%, for the three months ended September 30, 2019 as compare to same period of 2018 and a decrease of $667,225, or 30.53%,  for the nine months ended September 30, 2019 as compared to the same period of 2018.Other ExpenseOther expense for the three and nine months ended September 30, 2019 were $115,770 and $455,561, respectively, as compared to $90,171 and $286,394 for the corresponding periods in 2018, an increase of $25,599 and $169,167, or 28.39% and 59.07%, respectively. This increase is primarily due to the increase in interest expenses.As a result, the Company incurred  losses before income taxes of $547,689 and $1,973,382 for the three and nine months ended September 30, 2019, respectively, as compared to losses before income taxes of $314,875 and $2,471,440 for the corresponding periods in 2018, an increase in losses before income taxes of $232,814, or 73.94% for the three months ended September 30, 2019 as compare to the same period of 2018, and a decrease in loss before income taxed of $498,058, or 20.15% for the nine months ended September 30, 2019 as compare to the same period of 2018.Net LossAs a result of the factors mentioned above, the Company incurred a net loss for the three and nine months ended September 30, 2019 of $547,689 and $1,973,382, as compared to a net loss of $314,891 and $2,471,554 for the corresponding periods in 2018, an increase in net loss of $232,798, or 73.93% for the three months ended September 30, 2019 as compared to the same period of 2018, and a decrease in net loss of $498,172, or 20.16% for the nine months ended September 30, 2019 as compared to the same period of 2018. The fluctuation in net loss reflect changes in the gross profit and operation expenses for the three and nine months ended September 30, 2019 as discussed above.Liquidity And Capital ResourcesAs of September 30, 2019, we had $65,354 in cash and cash equivalents and had a working capital deficit of ($9,344,148), compared with $17,860 in cash and cash equivalents and a working capital deficit of ($10,458,105) at December 31, 2018.Net cash used in operating activities was $935,967 during the nine months ended September 30, 2019 compared to $738,511 provided by operating activities during the comparable period in 2018. Net cash used in investing activities was $571,101 during the nine months ended September 30, 2019 compared to $1,441 provided by investing activities for the comparable period in 2018, mainly related to a related party loan receivable. Net cash provided by financing activities was $1,588,992 during the nine months ended September 30, 2019, mainly related to loans from and advances by our affiliates to support our daily operations, compared to $811,413 used in financing activities during the comparable period in 2018.About NF Energy Saving Corporation
NF Energy Saving Corporation (NASDAQ: BIMI) is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services to clients. In February 2019, the Board of Directors of the company was reorganized following efforts led by Mr. Yongquan Bi, the company’s new Chairman, with a renewed focus on the health industry.
Safe Harbor Statement
The statements contained herein that are not historical facts are considered “forward-looking statements.” Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, statements regarding the efficacy of investment in research and development are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the effect of political, economic, and market conditions and geopolitical events; legislative and regulatory changes that affect our business; the availability of funds and working capital; the actions and initiatives of current and potential competitors; investor sentiment; and our reputation. We do not undertake any responsibility to publicly release any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report. Additionally, we do not undertake any responsibility to update you on the occurrence of any unanticipated events, which may cause actual results to differ from those expressed or implied by any forward-looking statements. The factors discussed herein are expressed from time to time in our filings with the Securities and Exchange Commission available at http://www.sec.gov.
IR Contact:
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: BIMI@dgipl.com


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