Executive Summary

Q2 2022 revenue was $4.93M, down sharply year-over-year from $9.26M on reduced pharmaceutical sales, with net loss of $4.15M and EPS of $(0.18) .
Operating expenses rose to $3.50M (vs. $2.12M YoY) driven by stock payments to CEO/COO; other expense spiked to $1.86M largely from convertible note amortization and PRC bank interest .
Management reiterated a focus on high-margin offerings and operational efficiency to build a foundation for free cash flow generation, but provided no formal guidance .
Prior quarter (Q1 2022) showed revenue of $5.02M and EPS $(0.27), with management noting efficiency gains and margin improvement; 2021 was heavily impacted by COVID-related impairment charges .

What Went Well and What Went Wrong

Management emphasized focusing on differentiated, high-value components to drive “high gross margins” and laying a “long-term foundation for best-in-class operations [and] significant free cash flow generation” .
Q1 2022 narrative highlighted “increased revenues and gross margins” from efficiency improvements and demand for medical devices; medical services revenue benefited from hospitals acquired in 2021 .
Liquidity improved: cash rose to $5.03M with positive working capital of $4.63M as of June 30, 2022 (vs. $4.80M cash and negative working capital of $0.93M at Dec 31, 2021) .

Q2 2022 revenue fell to $4.93M from $9.26M YoY; H1 revenue decreased by $1.48M YoY, “mainly due to the decrease in pharmaceutical sales of $3,615,357” .
Operating expenses increased 26% in H1, with ~$1.2M tied to stock payments to CEO/COO; other expense rose materially due to $1.54M amortization of convertible notes and $219K PRC bank interest .
Continued net losses: Q2 net loss from continuing operations was $(4.15)M; management again cited COVID-19 and macro environment pressures impacting segments .

Metric	Q2 2021	Q1 2022	Q2 2022
Revenue ($USD)	$9,256,987	$5,019,748	$4,927,361
Cost of Revenues ($USD)	$7,292,152	$3,561,278	$3,701,901
Gross Profit ($USD)	$1,964,835	$1,458,470	$1,225,460
Sales & Marketing ($USD)	$774,378	$754,880	$704,528
General & Administrative ($USD)	$1,340,901	$3,260,289	$2,799,827
Total Operating Expenses ($USD)	$2,115,279	$4,015,169	$3,504,355
Loss from Operations ($USD)	$(150,444)	$(2,556,699)	$(2,278,895)
Other Expense, net ($USD)	$(112,040)	$(161,200)	$(1,859,239)
Net Loss ($USD)	$(275,739)	$(2,740,480)	$(4,146,344)
Basic & Diluted EPS ($)	$(0.06)	$(0.27)	$(0.18)
Weighted Avg Shares	4,741,407	10,087,665	22,859,264

Segment KPIs (Gross Profit Margin %):

H1 2022 vs H1 2021: Wholesale Pharma 27% vs 11.3%; Wholesale Medical Devices 20% vs 23.9%; Medical Services 61.52% vs 9.32%; Retail Pharmacy 5% vs 18.9% .
Q1 2022 vs Q1 2021: Wholesale Pharma 12.70% vs 36.21%; Medical Devices 14.13% vs 52.73%; Medical Services 61.52% vs 9.32%; Retail Pharmacy 38.31% vs 17.17% .

Balance Sheet/Liquidity:

Cash: $5,034,331 (Jun 30, 2022) vs $4,797,849 (Dec 31, 2021) .
Working Capital: $4,631,671 (positive) at Jun 30, 2022 vs $(932,493) at Dec 31, 2021 .
Convertible Promissory Notes (current): $6,320,075 (Jun 30, 2022) .

BIMI did not provide formal quantitative guidance in the Q2 2022 press release.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	None disclosed	None disclosed	Maintained (no guidance)
Margins	FY/Quarter	None disclosed	None disclosed	Maintained (no guidance)
OpEx	FY/Quarter	None disclosed	None disclosed	Maintained (no guidance)
EPS	FY/Quarter	None disclosed	None disclosed	Maintained (no guidance)

No earnings call transcript was available in our document repository for Q2 2022. Narrative below reflects management statements from press releases.

Topic	Previous Mentions (Q4 2021 / Q1 2022)	Current Period (Q2 2022)	Trend
COVID-19/macro impact	2021 results heavily affected; significant goodwill impairments due to pandemic and lockdowns	Continued acknowledgment of COVID-19 and challenging macro environment	Persistent headwind
Margin focus	Q1: “increased revenues and gross margins” from efficiency gains	Emphasis on “high value components” to achieve “high gross margins”	Ongoing strategic priority
Smart hospital/telehealth	Plan to enhance smart hospital brand; cloud-based telehealth platform and medical talent pool program	Continued focus on operating framework, innovation, and scaling services	Building capabilities
Regulatory/listing	Risk factor referencing NASDAQ continued listing requirements	Safe harbor reiterates listing requirement risks	Monitoring required
Segment mix	Q1 devices demand; medical services revenues from acquired hospitals	H1 margins strongest in medical services; retail pharmacy margins weak	Shift toward services margin strength

“We concentrate on the most differentiated, high value components across all our business segments — with the goal to achieve to high gross margins… [and] believe these initiatives will establish a long-term foundation for best-in-class operations, gross margins, significant free cash flow generation” — CEO Tiewei Song, Q2 2022 press release .
“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” — CEO Tiewei Song, Q1 2022 press release .
“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… such as a cloud-based telehealth platform and a medical talent pool program” — CEO Tiewei Song, FY2021 press release .

No Q2 2022 earnings call transcript was available; no Q&A details could be reviewed [ListDocuments result: 0 earnings-call-transcript for BIMI; press releases provide narrative only] .

S&P Global consensus estimates for Q2 2022 were unavailable due to missing CIQ mapping for BIMI; therefore, comparison versus Street was not possible [SpgiEstimatesError].
Given the magnitude of other expense (convertible note amortization) and higher OpEx from stock payments, sell-side models may need to incorporate higher non-operating charges and share-based compensation headwinds if they recur .

Revenue pressure continues: Q2 revenue fell to $4.93M vs $9.26M YoY; pharma sales decline was the principal driver of H1 revenue weakness .
Loss dynamics skewed by financing costs: $1.86M Q2 other expense net, including $1.54M amortization of convertible notes and $219K PRC interest, materially deepened the loss .
Cost discipline needed: OpEx rose YoY; ~$1.2M stock payments to CEO/COO impacted H1 expense base and diluted margins .
Margin strategy anchored in services: H1 segment margins strongest in medical services (61.52%); retail pharmacy margins weak (5%) — mix shift toward higher-margin services could support future gross margins .
Liquidity improved: cash at $5.03M and positive working capital at $4.63M by 6/30/22, providing near-term flexibility despite ongoing losses .
Capital structure watchlist: $6.32M current convertible notes and recurring amortization expense warrant monitoring for dilution/interest burden .
No formal guidance: Position sizing should reflect execution risk and macro/COVID sensitivity; catalysts hinge on operational efficiency gains, segment mix, and reduced financing-related charges .