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BIMI Holdings Inc. (BIMI)·Q3 2023 Earnings Summary

Executive Summary

  • Q3 2023 revenue was $2.523M, down 48.9% year over year (vs $4.932M in Q3 2022) and down 54.6% sequentially from an estimated $5.558M in Q2 (derived from six-month revenue less Q1), as the company continued to separate held-for-sale hospital operations and relied more on wholesale and healthcare products .
  • EPS was $(0.51) (basic/diluted), with continuing-operations EPS of $(0.49); net loss was $3.134M as operating expenses outpaced a thin gross margin in the quarter .
  • Gross margin compressed to ~4.6% from ~14.3% YoY (gross profit $0.115M vs $0.703M) as mix shifted and Q3 revenue/light gross profit weighed on results; nine-month performance reflects strong Phenix Bio contribution ($5.32M revenue) but quarterly variability remains high .
  • No Q3 earnings call transcript was available and Wall Street consensus estimates via S&P Global were unavailable (likely no coverage); management commentary emphasized Phenix partnerships (China Duty Free Group, ASEAN distributor with $5M annual minimum), which are potential catalysts if execution sustains .

What Went Well and What Went Wrong

What Went Well

  • Phenix expansion: Strategic partnership with China Duty Free Group to distribute Phenix supplements across its duty-free network in China for one year, broadening reach and brand presence . Management: “This partnership represents a significant opportunity... to leverage CDFG’s extensive distribution network” — CEO Tiewei Song .
  • ASEAN growth channel: Exclusive distributor appointment (Hao Mu Pte. Ltd.) across ASEAN with a $5M annual minimum purchase requirement, setting a tangible volume threshold to anchor regional scale .
  • Working capital and liquidity trajectory: Positive working capital of $4.209M and cash of $0.994M at quarter-end, improving from negative working capital at year-end 2022; nine-month segment data show healthcare products generating $3.737M segment profit, offsetting wholesale losses .

What Went Wrong

  • Revenue contraction and margin pressure: Q3 revenue fell 48.9% YoY and ~54.6% QoQ (derived) with gross profit of $0.115M, constraining operating leverage and resulting in a $3.150M operating loss .
  • Governance/controls overhang: The company disclosed multiple restatements (2021, 2022, and earlier quarters) and noted steps to improve internal controls, which can weigh on investor confidence .
  • Listing compliance risk: Nasdaq notification for 10-Q delinquency during Q3 (subsequently filed), highlighting execution and reporting timeliness risk .

Financial Results

Quarterly Comparison (prior quarter vs current)

MetricQ2 2023Q3 2023
Revenue ($USD)$5,557,666 (calculated: six months $8,755,303 minus Q1 $3,197,637) $2,523,193
Gross Profit ($USD)N/A (not disclosed)$115,155
EPS (Basic & Diluted) ($USD)N/A (not disclosed) $(0.51)$
Net Income (Loss) ($USD)N/A (not disclosed)$(3,250,790)$ total; $(3,134,072)$ continuing ops

Year-over-Year Comparison (Q3 2022 vs Q3 2023)

MetricQ3 2022Q3 2023
Revenue ($USD)$4,932,479 $2,523,193
Gross Profit ($USD)$703,163 $115,155
EPS (Basic & Diluted) ($USD)$(0.11)$ $(0.51)$
Net Income (Loss) ($USD)$(3,885,055)$ total; $(3,099,662)$ continuing ops $(3,250,790)$ total; $(3,134,072)$ continuing ops

Margins (derived from reported revenue and gross profit)

MetricQ3 2022Q3 2023
Gross Margin (%)14.3% (703,163 / 4,932,479) 4.6% (115,155 / 2,523,193)

Segment Breakdown (YTD through Q3 2023)

SegmentRevenue ($USD)Cost of Revenues ($USD)Segment Profit (Loss) ($USD)
Retail Pharmacy$467,280 $28,182 $(244,266)$
Wholesale Medical Devices$1,399,622 $1,464,530 $(152,435)$
Wholesale Pharmaceuticals$4,091,936 $3,877,363 $(2,651,051)$
Healthcare Products (Phenix)$5,319,658 $1,213,495 $3,737,249

KPIs and Balance Sheet Highlights

KPIQ3 2023
Cash and Cash Equivalents ($USD)$994,131
Working Capital ($USD)$4,208,695
Accounts Receivable, Net ($USD)$4,115,964
Inventory, Net ($USD)$7,086,791
Allowance for Doubtful Accounts ($USD)$3,903,371
Major Customer ConcentrationCustomer A: $5,308,005 (47.06% of revenue)
Major Vendor ConcentrationVendor A: $1,284,554 (21.33% of purchases)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNone providedNone providedMaintained: No formal guidance
Margins, OpEx, OI&E, Tax RateFY/QuarterNone providedNone providedMaintained: No formal guidance

No formal financial guidance was issued in Q3 materials.

Earnings Call Themes & Trends

No Q3 2023 earnings call transcript was available for BIMI.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Product performance (Phenix)Q1: Initial contribution from Phenix; Q2: 52% gross margin for six months driven by Phenix Continued expansion via CDFG and ASEAN distributor Positive expansion; execution progress
Regional trendsBuilding ASEAN presence via exclusive distributor (Sept) ASEAN plan affirmed; China duty-free footprint added Broadening APAC distribution
Regulatory/legal/complianceNasdaq delinquency letter on 10-Q filing (Aug) Q3 10-Q filed (Dec); restatement disclosures continued Improving filings; control remediation underway
Corporate structure/portfolioHospitals classified as held-for-sale; disposal plan Held-for-sale treatment continues; discontinued ops losses persist Portfolio simplification ongoing
Internal controls/restatementsHighlighted restatements and remediation plans Reinforced commitment to new consulting support Remediation in process

Management Commentary

  • “We are delighted with the initial contribution from Phenix Bio Inc., and we look forward to its continued positive impact on our revenue stream.” — CEO Tiewei Song (Q1 press release) .
  • “We are delighted with the initial success achieved by Phenix Bio Inc.” — CEO Tiewei Song (Q2 press release) .
  • On CDFG partnership: “This partnership represents a significant opportunity for our company to leverage CDFG’s extensive distribution network.” — CEO Tiewei Song .

Q&A Highlights

No Q3 2023 earnings call transcript or Q&A was available.

Estimates Context

  • We attempted to retrieve Wall Street consensus estimates via S&P Global, but coverage/mapping appears unavailable for BIMI; therefore no consensus EPS or revenue benchmarks were accessible for Q3 2023. This limits beat/miss analysis for the quarter. [Attempted via S&P Global; mapping unavailable]

Key Takeaways for Investors

  • Revenue volatility and margin compression in Q3 underscore execution risk as the company transitions away from hospital operations; near-term focus is on scaling Phenix and stabilizing wholesale profitability .
  • Phenix’s distribution partnerships (CDFG in China and ASEAN exclusive distributor with a $5M minimum) create tangible growth vectors; monitor sell-through/renewals and whether minimums are met to validate durability .
  • Concentration risk is material: a single customer comprised 47% of nine-month revenue, and one vendor 21% of purchases; diversification and contract terms are critical to reduce fragility .
  • Governance and reporting overhangs remain: restatements and prior Nasdaq deficiency notifications require continued improvement in internal controls; successful remediation could support re-rating .
  • Liquidity and working capital improved vs year-end 2022, but operating losses persist; watch cash generation from Phenix and receivable collections (allowance rose to $3.9M) to sustain operations without dilutive financing .
  • Without Street coverage, the stock may trade on company press flow and filings; catalysts include proof of ASEAN $5M minimum purchases, CDFG distribution traction, completion of hospital disposals, and internal control updates .
  • Short-term: cautious stance until margin stabilization; medium-term: thesis hinges on Phenix’s ability to drive profitable growth and the company’s progress on controls and portfolio simplification .