BIMI International Medical Inc. (BIMI) experiences a decline of 43.89% in the aftermarket. However, the last trading session closed at $2.21 with an increase of 225%.
Acquisition of Chongqing Zhuoda Pharmaceutical Co., Ltd.
On 14th September 2021, BIMI announced that it has made a Purchase Agreement to Acquire Chongqing Zhuoda Pharmaceutical Co., Ltd. The acquisition of Zhuoda represents a once-in-a-lifetime possibility for BIMI and the shareholders to broaden the product coverage. The company is convinced that this purchase will add long-term value to the consumers while also promoting the company’s long-term growth.
Moreover, BIMI is enthusiastic about the anticipated acquisition of Zhuoda. Zhuoda has formed long-term strategic partnerships with 14 local hospitals, accounting for the majority of East Chongqing’s grade A tertiary institutions. Last but not least, it will also help BIMI to expand its local market significantly.
Appointment of Chief Financial Officer
BIMI reported the appointment of Amy Xue as the Company’s new Chief Financial Officer on 9th July 2021. Xue is an accomplished senior financial professional with a CPA and ACCA certification. She was CFO of iFresh, Inc. from March 2020 to June 2021 before joining BIMI as Chief Financial Officer.
Moreover, she is the Audit Committee Chairwoman at MingZhu Logistics Holdings Limited since September 2020. She has also worked as the CFO of Goldenbridge Acquisition Ltd. since March 2020. Lastly, Xue was the CFO of XT Energy Group, Inc where she was in charge of the company’s interactions with the Securities and Exchange Commission (SEC), investors, and the preparation of quarterly financial reports.
First Quarter 2021 results
BIMI released the first quarter of 2021 results on 24th May 2021. Revenues were $2.17 million for the three months ended March 31, 2021. However, the revenue climbed by $1.75 million owing mostly to $1.10 million in wholesale pharmaceutical sales and $0.70 million in medical services. Moreover, revenue from the wholesale medical devices division was $0.06 million and $0.25 million, respectively. The drop is mostly due to low demand for medical products in the first quarter.
Not only this but the cost of revenues was $1.58 million and $0.33 million, respectively. Furthermore, BIMI reported an obsolescence loss of $0.03 million on inventories. The drop in inventory availability is due to the expiration of merchandise kept for sale by Dalian’s Boqi pharmacies owing to the COVID-19 pandemic’s lockdown policy.