Exhibit 99.1

 

BOQI International Medical Inc. Announces Third Quarter 2020 Financial Results

 

NEW YORK, November. X, 2020 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announced its financial results for the third quarter and nine months ended September 30, 2020.

 

“We have made good progress in line with our new business, especially the online-to-offline strategy. We opened our first retail pharmacy store in Chongqing at the end of June 2020, then gradually opened five more stores in the latter part of the third quarter,” said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. “We are also developing our online healthcare platform. We plan to connect the platform with pharmacies, hospitals and other medical institutions to further strengthen our capabilities in online and offline healthcare services.”

 

Revenues

 

Revenues for the three months ended September 30, 2020 and 2019 were $3,091,071 and $208,402, respectively. The Company’s revenues for the three months ended September 30, 2020 were principally attributable to wholesale sales of medical devices and generic drugs by our newly acquired Guanzan Group. The Company’s revenues for the three months ended September 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 we sold in June 2020. Revenues from the wholesale medical devices segment and the wholesale medicine segment for the three months ended September 30, 2020 were $670,296 and $2,391,674, respectively. Revenues from the retail pharmacy segment for the three months ended September 30, 2020 were $29,101.

 

Revenues for the nine months ended September 30, 2020 and 2019 were $7,317,449 and $1,120,804, respectively. The 553% increase in revenues is attributable to the acquisition of the Guanzan Group in late March 2020. Revenues from the wholesale medicine segment for the nine months ended September 30, 2020 were $4,698,985 and revenues from the wholesale medical device segment for the nine months ended September 30, 2020 were $2,567,029. Revenues from the retail pharmacy segment for the nine months ended September 30, 2020 were $42,898.

 

1

 

 

Cost of Revenues

 

Cost of revenues for the three months ended September 30, 2020 and 2019 were $2,833,793 and $281,014, respectively, reflecting the impact of the acquisition of the Guanzan Group. For the three months ended September 30, 2020, the cost of revenues of the wholesale medical devices segment was $586,939. For the three months ended September 30, 2020, the cost of revenues of our wholesale medicine segment was $2,032,947. For the three months ended September 30, 2020, the cost of revenues for retail pharmacy segment was $227,883, which included an inventory impairment charge of $202,981.

  

Cost of revenues for the nine months ended September 30, 2020 and 2019 were $6,240,962 and $1,030,862, respectively. For the nine months ended June 30, 2020, the cost of revenues of our wholesale medical devices segment was $2,051,563. For the nine months ended September 30, 2020, the cost of revenues of our wholesale medicine segment was $3,759,707. For the nine months ended September 30, 2020, cost of revenues of our retail pharmacy segment was $426,293, which included an inventory write-off of $390,923.

 

Gross Profit

 

For the three months ended September 30, 2020, the Company had a gross profit margin of 8.32% compared with a negative gross profit margin of 34.84 % in the quarter ended September 30, 2019. On a sequential basis, gross profit decreased by 14.07% from the second quarter of 2020, due to the decrease in revenues from high gross profit wholesale medical devices segment. The gross profit margin of the wholesale medical devices and wholesale medicine segments for three months ended September 30, 2020 were 12.44% and 15%, respectively. The retail pharmacy segment’s cost of revenues exceeded its revenues by $198,782 in the quarter.

 

For the nine months ended September 30, 2020, the Company had a gross profit margin of 14.71% compared with a gross profit margin of 8.02% in the first nine months of 2019. The improvement in the gross profit margin in the first nine months ended September 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 nine months ended September 30, 2020 were 20.08% and 19.99%, respectively. The retail pharmacy segment’s cost of revenues exceeded its revenues by $383,395 in the nine-month period ended September 30, 2020.

  

2

 

 

Operating Expenses

 

Operating expenses were $1,689,962 for the three months ended September 30, 2020 compared to $359,307 for the same period in 2019, an increase of $1,330,655. The increase is mainly due to the additional amortization of the discounted convertible notes and intangible assets and impairment loss of intangible asset.

 

Operating expenses were $6,579,201 for the nine months ended September 30, 2020 compared to $1,607,763 for the same period in 2019, an increase of $ 4,975,922 or 309%. Operating expenses for the nine months ended September 30, 2020 consist mainly of amortization of the discounted convertible notes, amortization of intangible assets, meeting and promotional expenses, pharmaceutical and medical device industry compliance management expenses, legal fees, convertible note issuance-related costs in the amount of $211,425 and other professional service fees. The Company also reduced the contingent consideration payable to the former shareholders of Lasting (the parent of Boqi Zhengji) by $5,655,709, following a re-evaluation of such commitment.

 

Operating expenses also included a $903,573 impairment loss with respect to the intangible assets recognized in the acquisition of Boqi Zhengji.

 

Other Income

 

For the three months ended September 30, 2020, the Company reported other income of $5,247 and other interest expense of $339,780, as compared to other income of $58,718 and other interest expense of $ 466,582 for the three months ended September 30, 2019.

 

For the nine months ended September 30, 2020, the Company reported other income of $6,973,409 and other interest expense of $717,226 compared to other income of $11,021 and other interest expense of $717,226 in the nine months ended September 30, 2019. Other income in the nine months ended September 30, 2020 includes the gain generated from the disposal of the NF Group.

 

3

 

 

Net Profit (Loss)

 

For the three months ended September 30, 2020, the Company reported a net loss of $1,860,573 compared to a net loss of $547,689 for the same period of 2019. For the nine months ended September 30, 2020, the Company reported a net profit of $611,090 compared to a net loss of $1,973,382 for the same period in 2019.

 

Liquidity and Capital Resources

 

On September 30, 2020, the Company had cash and cash equivalents of $11, 585,325 compared to cash and cash equivalents of $36,363 on December 31, 2019. As of September 30, 2020, the Company had negative working capital of $5,439,912 as compared to negative working capital of $500,765 on December 31, 2019.

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

 

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 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 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.com

 

4

 

 

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   September 30,   December 31, 
   2020   2019 
   (Unaudited)     
ASSETS        
CURRENT ASSETS        
Cash  $11,585,321   $36,363 
Restricted cash   1,365    311 
Accounts receivable, net   3,935,514    24,840 
Advances to suppliers   2,251,811    1,252 
Amount due from related parties   -    1,350 
Inventories, net   4,195,247    707,526 
Prepayments and other receivables   3,495,570    59,333 
Assets from discontinued operations   -    21,218,983 
Total current assets   25,464,828    22,049,958 
           
NON-CURRENT ASSETS          
Deferred tax assets   165,995    - 
Property, plant and equipment, net   854,897    38,641 
Intangible assets, net   642,741    7,973,179 
Goodwill   6,443,170    - 
Total non-current assets   8,106,803    8,011,820 
           
TOTAL ASSETS  $33,571,631   $30,061,778 
           
LIABILITIES AND EQUITY          
CURRENT LIABILITIES          
Short-term loans  $866,297   $- 
Long-term loans due within one year   185,147    - 
Convertible promissory notes, net   3,616,330    107,383 
Derivative liability   1,173,505    1,272,871 
Accounts payable, trade   6,790,000    641,927 
Advances from customers   710,515    67,975 
Amount due to related parties   586,027    305,760 
Taxes payable   308,920    861 
Other payables and accrued liabilities   5,788,175    6,044,378 
Liabilities from discontinued operations   -    13,108,038 
Total current liabilities   20,024,916    21,549,193 
           
Long-term loans - non-current portion   138,632    - 
           
TOTAL LIABILITIES   20,163,548    21,549,193 
           
EQUITY          
Common stock, $0.001 par value; 50,000,000 shares authorized; 10,505,821 and 9,073,289 shares issued and outstanding as of September 30 2020 and December 31, 2019, respectively   10,506    9,073 
Additional paid-in capital   24,081,799    15,643,825 
Statutory reserves   -    2,227,634 
Accumulated deficit   (10,834,660)   (10,881,667)
Accumulated other comprehensive income   26,633    1,683,770 
Total BOQI International Medical Inc.’s equity   13,284,278    8,682,635 
           
NON-CONTROLLING INTERESTS   123,805    (170,050)
           
Total equity   13,408,083    8,512,585 
           
Total liabilities and equity  $33,571,631   $30,061,778 

 

5

 

 

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (GAIN)/LOSS

(UNAUDITED)

 

   For the Three Months Ended
September 30
   For the Nine Months Ended
September 30
 
   2020   2019   2020   2019 
                 
REVENUES   3,091,071    208,402    7,317,449    1,120,804 
                     
COST OF REVENUES   2,833,793    281,014    6,240,962    1,030,862 
                     
GROSS PROFIT/(LOSS)   257,278    (72,612)   1,076,487    89,942 
                     
OPERATING EXPENSES:                    
Sales and marketing   377,977    33,096    1,028,746    119,820 
General and administrative   1,311,985    326,211    5,554,939    1,487,943 
Total operating expenses   1,689,962    359,307    6,583,685    1,607,763 
                     
LOSS FROM OPERATIONS   (1,432,684)   (431,919)   (5,507,198)   (1,517,821)
                     
OTHER INCOME (EXPENSE)                    
Interest expense   (339,780)   (174,488)   (717,226)   (466,582)
Other income   5,247    58,718    6,973,409    11,021 
Total other income (expense), net   (334,533)   (115,770)   6,256,183    (455,561)
                     
INCOME (LOSS) BEFORE INCOME TAXES   (1,767,217)   (547,689)   748,985    (1,973,382)
                     
PROVISION FOR INCOME TAXES   93,356        137,895     
                     
NET INCOME (LOSS)   (1,860,573)   (547,689)   611,090    (1,973,382)
Less: net income (loss) attributable to  non-controlling interest   49,374    (3,220)   75,648    777 
NET INCOME (LOSS) ATTRIBUTE TO BOQI INTERATIONAL MEDICAL INC.  $(1,909,947)  $(544,469)  $535,442   $(1,974,159)
OTHER COMPREHENSIVE INCOME(LOSS)                    
Foreign currency translation adjustment   (108,236)   (271,289)   34,802    (244,964)
TOTAL COMPREHENSIVE INCOME(LOSS)   (1,968,809)   (818,978)   645,892    (2,218,346)
Less: comprehensive income (loss) attributable to non-controlling interests   1,193    (1,260)   (1,408)   3,286 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO BOQI INTERNATIONAL MEDICAL INC.  $(1,970,002)  $(817,718)  $647,300   $(2,221,632)
                     
WEIGHTED AVERAGE NUMBER OF COMMON SHARES                    
Basic and diluted   10,505,821    8,073,289    9,987,848    7,871,824 
                     
INCOME (LOSS) PER SHARE                    
Basic and diluted  $(0.19)  $(0.07)  $0.06   $(0.25)

 

6

 

 

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES

(CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   For the Nine Months Ended September 30, 
   2020   2019 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income (Loss)  $611,090   $(1,973,382)
Adjustments to reconcile net income/(loss) to cash used in operating activities:          
Depreciation and amortization   810,264    716,433 
(Profit) on disposal of property   (6,944,469)   (43,712)
Allowance for doubtful accounts   (263,260)   (75,203)
Amortization of discount of convertible promissory notes   1,950,901    1,239 
Change in derivative liabilities   43,224    2,132 
Impairment loss from construction in progress   -    24,803 
Allowance for inventory provision   390,923    - 
Impairment loss of intangible assets   903,573    - 
           
Change in operating assets and liabilities          
Accounts receivable   (1,284,400)   970,444 
Advances to suppliers   418,847    - 
Inventories   (2,928,419)   (634,860)
Prepayments and other receivables   (1,245,981)   (67,709)
Accounts payable, trade   4,844,674    (284,077)
Advances from customers   (707,586)     
Taxes payable   (9,368)   55,943 
Other payables and accrued liabilities   594,793    371,982 
Net cash used in operating activities   (2,815,194)   (935,967)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Cash received from acquisition of Guanzan Group   95,220    - 
Proceeds from disposal of property, planet, and equipment   -    50,063 
Purchase of property, planet, and equipment   (121,176)   - 
Cash received from sale of NF Group   10,375,444    - 
Repayment from related party loan   -    540,294 
Loan to related party   -    (1,161,458)
Net cash provided by (used in) investing activities   10,349,488    (571,101)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Net proceeds from issuance of convertible promissory notes   3,457,325    - 
Proceeds from short-term loans   27,371    5,835,897 
Repayment of short-term loans   (65,516)   (5,838,815)
Repayment of long-term loans   (48,164)   - 
Amount financed by related parties   173,547    1,591,910 
Net cash provided by financing activities   3,544,563    1,588,992 
           
EFFECT OF EXCHANGE RATE ON CASH   471,155    (33,401)
           
INCREASE IN CASH   11,550,012    48,523 
           
CASH AND CASH EQUIVALENTS, beginning of period   36,674    197,356 
           
CASH AND CASH EQUIVALENTS, end of period  $11,586,686   $245,879 
           
SUPPLEMENTAL CASH FLOW INFORMATION:          
Cash paid for income tax  $42,130   $- 
Cash paid for interest expense, net of capitalized interest  $62,636   $434,198 
           
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES          
Issuance of common shares for the equity acquisition of Chongqing Guanzan Technology Co., Ltd.  $2,717,000   $- 
Goodwill recognized from the equity acquisition of the Boqi Group  $6,443,170   $2,040,000 
Outstanding payment for the equity acquisition of Chongqing Guanzan Technology Co., Ltd.  $4,414,119   $- 
Common shares to be issued upon conversion of convertible promissory notes  $5,160,473   $- 

 

 

7

 


The following information was filed by Nf Energy Saving Corp (BIMI) on Monday, November 16, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Nf Energy Saving Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Nf Energy Saving Corp.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account