Executive Summary

Revenue rose to $5.02M (+131.6% YoY) with gross margin expanding to 29% (from 27%), and net loss narrowed to $2.74M; diluted EPS was $(0.27) .
Growth was driven by a $2.07M increase in medical device sales and $0.88M increase in medical services (three hospitals acquired in May 2021), partially offset by higher operating expenses .
Liquidity tightened: cash fell to $1.61M and working capital was negative $1.36M as of March 31, 2022, versus cash of $4.80M and negative working capital of $0.93M at year-end 2021 .
Prior quarter context: Q3 2021 revenue was $13.78M with 14.7% gross margin and $(0.06) diluted EPS, reflecting much larger wholesale pharmaceuticals volumes; Q1 2022 improved margins but is seasonally/scope smaller on revenue .

What Went Well and What Went Wrong

What Went Well
- Efficiency efforts expanded gross margin to 29% (from 27% YoY); management emphasized continued focus on compliance, risk management, service quality, and brand awareness: “Our effort to improve efficiency have resulted in increased revenues and gross margins for the first quarter of 2022…” .
- Medical devices demand strengthened (+$2.07M YoY), and medical services growth (+$0.88M) reflects contribution from acquired hospitals .
- Segment margin mix improved YoY: medical services gross margin rose to 61.52% (from 9.32%); retail pharmacy margin to 38.31% (from 17.17%) .
What Went Wrong
- Operating expenses climbed to $4.02M (+5% YoY), including $1.40M in executive salaries, pressuring profitability despite gross margin gains .
- Interest and other expenses increased to $161K (vs. $31K YoY), mainly from bank loans tied to Guanzan Group, Zhuoda, and Zhongshan, weighing on net results .
- Liquidity/working capital constraints worsened: cash decreased to $1.61M and negative working capital expanded to $1.36M, limiting flexibility .

Financial Results

Metric	Q1 2021	Q3 2021	Q1 2022
Revenue ($USD)	$2.17M	$13.78M	$5.02M
Gross Profit ($USD)	$0.59M	$2.03M	$1.46M
Gross Margin (%)	27.32%	14.70%	29.00%
Operating Expenses ($USD)	$3.83M	$3.57M	$4.02M
Loss from Operations ($USD)	$(3.24)M	$(1.55)M	$(2.56)M
Net Loss ($USD)	$(3.29)M	$(1.71)M	$(2.74)M
Diluted EPS ($USD)	$(0.20)	$(0.06)	$(0.27)

Segment margin profile (gross margin %):

Segment	Q1 2021	Q1 2022
Wholesale Pharmaceuticals	36.21%	12.70%
Wholesale Medical Devices	52.73%	14.13%
Medical Services	9.32%	61.52%
Retail Pharmacy	17.17%	38.31%

Liquidity KPIs:

Metric	Dec 31, 2021	Mar 31, 2022
Cash and Equivalents ($USD)	$4.80M	$1.61M
Working Capital ($USD)	$(0.93)M	$(1.36)M

Drivers and cost structure insights:

Device sales +$2.07M; medical services +$0.88M drove YoY revenue increase .
Other expense rose to $161K (interest, FX, other) vs. $31K YoY, linked to specific bank loans at subsidiaries .
Executive salary accruals ($1.40M) materially contributed to OpEx in the quarter .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 2022	N/A	No quantitative guidance disclosed in Q1 2022 press release	Maintained: N/A
Margins	FY/Q1 2022	N/A	No quantitative guidance disclosed in Q1 2022 press release	Maintained: N/A
OpEx	FY/Q1 2022	N/A	No quantitative guidance disclosed in Q1 2022 press release	Maintained: N/A
Tax rate	FY/Q1 2022	N/A	No quantitative guidance disclosed in Q1 2022 press release	Maintained: N/A

Note: Company did not provide formal numeric guidance in the Q1 2022 press release .

Earnings Call Themes & Trends

(No Q1 2022 earnings call transcript found for BIMI during the period searched; table reflects press release narratives.)

Topic	Previous Mentions (Q3 2021)	Previous Mentions (FY 2021 release)	Current Period (Q1 2022)	Trend
Technology initiatives (telehealth)	Plan to partner with hospitals and expand access; focus on quality care	“Enhance our smart hospital brand… cloud-based telehealth platform and medical talent pool program”	Emphasis on efficiency, compliance, risk management; brand awareness	Building towards smart hospital/telehealth; operational execution theme persistent
Macro/COVID impact	Prior growth driven despite pandemic; going-concern considerations discussed	Significant goodwill impairments due to COVID-related lockdowns impacting hospital performance targets	Demand improved in devices; services contribution from acquired hospitals	From impairment-driven reset (FY21) to operational stabilization and margin improvement
Segment performance	Strong wholesale pharma revenue; low segment margin in pharma (-4.2% GP in Q3) offset by services margin 58.1%	2021 GP margin mix: services 57.3%, pharma 2.7% due to product mix shift	Services margin 61.5%; retail 38.3%; devices 14.1%; pharma 12.7%	Mix shifting towards higher-margin services; pharma margin still low vs 2020
Regulatory/listing risk	NASDAQ listing requirements referenced in safe harbor	Continued listing and going concern risks flagged	Continued references to compliance and risk management	Ongoing focus on compliance/listing stability

Management Commentary

“Our effort to improve efficiency have resulted in increased revenues and gross margins for the first quarter of 2022. As we move forward, we will continue to enhance compliance and risk management, and continue to improve service quality and brand awareness” — CEO Tiewei Song .
“Our newly-acquired businesses were severely impacted by COVID-19 and local lockdowns which caused the significant impairment charges in 2021… we plan to enhance our smart hospital brand… cloud-based telehealth platform and a medical talent pool program” — CEO Tiewei Song .

Q&A Highlights

No Q1 2022 earnings call transcript was available during the period searched; no Q&A themes identified (we searched for BIMI earnings call transcripts and found none for Q1 2022) [Search attempt returned no BIMI results].

Estimates Context

Wall Street consensus (S&P Global) for BIMI Q1 2022 EPS and revenue was unavailable due to missing CIQ mapping when retrieving estimates. Results could not be compared to consensus using S&P Global in this instance (GetEstimates error: missing CIQ mapping for BIMI).

Key Takeaways for Investors

Margin Improvement Amid Smaller Scale: Q1 gross margin improved to 29% and net loss narrowed, supported by device demand and hospital services; watch sustainability of segment mix and margins as scale fluctuates .
Liquidity Tightness: Cash declined to $1.61M and negative working capital widened to $1.36M; near-term financing and working capital management are critical risk factors .
Cost Discipline vs. Executive Compensation: OpEx increased to $4.02M with $1.40M executive salaries; margin gains must offset higher fixed overhead to drive breakeven .
Segment Strategy: Services’ high margins (61.5%) suggest prioritizing hospital operations optimization; pharma margins remain low (12.7%) vs. prior periods due to product mix; monitor mix shifts and procurement strategy .
Post-2021 Impairment Reset: FY21 impairments reflected COVID-related underperformance; management’s smart hospital/telehealth initiatives aim to rebuild earnings power; track integration benefits and telehealth deployment milestones .
Sequential Volatility: Q3 2021 revenue ($13.78M) underscores variability tied to wholesale segments; Q1 2022 shows margin resilience at lower revenue; anticipate quarter-to-quarter swings as business mix evolves .
Catalysts: Evidence of sustained services margin, device demand continuation, improved cash generation, and any clarity on guidance could drive sentiment; conversely, financing constraints or further impairments would be negative .

BIMI Holdings Inc. (BIMI)·Q1 2022 Earnings Summary