Bimi International Medical Inc. (BIMI), a company engaged in the retail and wholesale distribution of medical devices, and pharmaceutical and other healthcare products, has soared 69.98% during aftermarket trading sessions. As a consequence, BIMI stock is changing hands at $1.11 at the time of the writing. The increase could be attributed to the announcement of quarterly results by the company. On Monday, BIMI closed the day at $0.65 after gaining an increase of 2.83% during regular trading hours.
Why BIMI Soaring?
On Monday, BIMI released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had cash of $209,803 on 30th September 2021. The revenue generated by the company during the quarter stood at $13.77 million against $3.09 million for the same quarter of 2020. The operating expenses for the period were $3.57 million against $1.68 million for the same period of 2020. The gross profit for the period was $2.02 million against $0.25 million for the same period of 2020. The company suffered a net loss of $1.70 million (or $0.06 per basic and diluted share) against $1.90 million (or $0.19 per basic and diluted share) for the same period of 2020.
Mr Tiewei Song, Chief Executive Officer and President of BIMI, while commenting on the results said that the company has achieved significant revenue growth during the quarter and that the growth was driven by the increase in sales in the pharmaceuticals sector. He further went on to say that looking ahead, the company plans to form partnerships with regionally reputed hospitals, with a goal of making quality healthcare more accessible.
Acquisition of Bengbu Mali Maternity Hospital
On 8th November, BIMI announced that it had signed a Memorandum of Understanding to acquire 100% interest in the Bengbu Mali Maternity Hospital through the company’s common share at the price of $3 per share. Being a professional obstetrics and gynaecology hospital, Bengbu Mali Maternity Hospital provides services to around 0.3 million people annually. The profit of the hospital was $0.21 million in 2019, and it is estimated that it would increase to $0.93 million in 2022.
Future Outlook for BIMI
During the last 6 months, BIMI stock has seen a decline of about 50%. However, the recent positive sentiments have once again made the investors of BIMI confident regarding their investments. It is expected that the current trend would boost the performance of BIMI stock in upcoming times as well.