Bonso Reports Half Year Results
Bonso Electronics International (NASDAQ: BNSO) reported a net loss of $2.10 million for the six months ended September 30, 2021, compared to a net income of $0.20 million in the same period last year. Net revenue dropped by 26.1% to $6.0 million due to decreased sales of pet electronic products, attributed to increased competition. The company faces delays in governmental approvals for redeveloping its Shenzhen factory, impacting project timelines. Bonso continues efforts to expand its product line and regain market share.
- Plans to manufacture new pet electronic products to increase sales.
- Continuing to work with development partners to obtain necessary approvals.
- Reported a net loss of $2.10 million, a decrease from the previous net income.
- Net revenue decreased by 26.1% from $8.1 million to $6.0 million.
- Competition leading to lower selling prices and sales volume.
- Delays in factory redevelopment due to government approval holdups.
HONG KONG, Feb. 24, 2022 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (NASDAQ: BNSO) today announced its unaudited results for the six-month period ended September 30, 2021.
Bonso reported a net loss for the six-month period ended September 30, 2021, of
Mr. Andrew So, President and CEO stated: “Our net revenue during the six-month period ended September 30, 2021, decreased as a result of decreased sales of pet electronic products through online sales channels. Due to competition from other similar products, both selling price and sales volume decreased. We continue to manufacture new pet electronic products and purchase other related products to increase our sales and market share.”
Furthermore, Mr. So stated: “The required government approvals for the redevelopment of our old factory site in Shenzhen have been delayed due to the pandemic. Further, we believe the recent liquidity problems of several of China’s largest property developers have contributed to governmental delays across the property development sector. We are working with our development partner to obtain the remaining governmental approvals for the redevelopment of the Shenzhen factory. The redevelopment project has been delayed, and this will affect the timing on completion of the project.”
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles, and markets a comprehensive line of electronic scales, weighing instruments and pet electronics products. Bonso products are manufactured in the People's Republic of China for customers primarily located in North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and just-in-time delivery. Bonso also independently designs and develops electronic products for private label markets. Bonso rents factory space and equipment to third parties and is also continuing the process to obtain the necessary approvals to redevelop the land upon which its Shenzhen factory is located. For further information, visit the Company's web site at http://www.bonso.com.
This news release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phrases as "should," "intends," "is subject to," "expects," "will," "continue," "anticipate," "estimated," "projected," "may," "I or we believe," "future prospects," "our strategy," or similar expressions. Forward-looking statements made in this press release that relate to the redevelopment of our old Shenzhen factory involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update "forward-looking" statements.
-- Tables to Follow –
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
| March 31, | September 30, | |||
| 2021 | 2021 | |||
| $ in thousands | $ in thousands | |||
| (Audited) | (Unaudited) | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 10,060 | 7,575 | ||
| Trade receivables, net | 1,279 | 1,665 | ||
| Other receivables, deposits and prepayments | 466 | 883 | ||
| Inventories, net | 1,097 | 1,959 | ||
| Income tax recoverable | 5 | 5 | ||
| Financial instruments at fair value | 504 | 608 | ||
| Total current assets | 13,411 | 12,695 | ||
| Investment in life settlement contracts | 163 | 165 | ||
| Financial instruments at amortized cost | 523 | - | ||
| Other intangible assets | 1,813 | 1,674 | ||
| Deferred tax asset | 779 | 779 | ||
| Right-of-use assets | 232 | 179 | ||
| Property, plant and equipment, net | 9,500 | 9,421 | ||
| Total assets | 26,421 | 24,913 | ||
| Liabilities and stockholders’ equity | ||||
| Current liabilities | ||||
| Notes payable - secured | 25 | 62 | ||
| Bank loans - secured | 967 | 524 | ||
| Accounts payable | 572 | 1,806 | ||
| Contract liabilities | 317 | 317 | ||
| Accrued charges and deposits | 3,165 | 3,292 | ||
| Refund liabilities | 29 | 29 | ||
| Payable to affiliated party | 79 | - | ||
| Income tax payable | 165 | 165 | ||
| Lease liabilities | 105 | 106 | ||
| Total current liabilities | 5,424 | 6,301 | ||
| Lease liabilities, non-current | 127 | 73 | ||
| Long-term deposit received | 701 | 701 | ||
| Long-term loan | 2,773 | 2,841 | ||
| Total liabilities | 9,025 | 9,916 | ||
| Stockholders’ equity | ||||
| Common stock par value | ||||
| - authorized shares - 23,333,334 | ||||
| - issued shares: Mar 31, 2021 - 5,828,205; Sep 30, 2021 - 5,828,205 | 17 | 17 | ||
| outstanding shares: Mar 31, 2021 - 4,857,187; Sep 30, 2021 - 4,857,187 | ||||
| Additional paid-in capital | 22,795 | 22,795 | ||
| Treasury stock at cost: Mar 31, 2021 - 971,018; Sep 30, 2021 - 971,018 | (3,082 | ) | (3,082 | ) |
| Accumulated deficit | (4,323 | ) | (6,437 | ) |
| Accumulated other comprehensive income | 1,989 | 1,704 | ||
| 17,396 | 14,997 | |||
| Total liabilities and stockholders’ equity | 26,421 | 24,913 | ||
Unaudited Consolidated Statements of Operations and Comprehensive Loss
(Expressed in United States Dollars)
| Six months ended September 30, 2020 | Six months ended September 30, 2021 | ||||
| $ in thousands | $ in thousands | ||||
| (unaudited) | (unaudited) | ||||
| Net revenue | 8,124 | 6,006 | |||
| Cost of revenue | (3,054 | ) | (3,353 | ) | |
| Gross profit | 5,070 | 2,653 | |||
| Selling, general and administrative expenses | (4,592 | ) | (4,736 | ) | |
| Other income, net | 40 | 151 | |||
| Income / (loss) from operations | 518 | (1,932 | ) | ||
| Non-operating expenses, net | (317 | ) | (182 | ) | |
| Income / (loss) before income taxes | 201 | (2,114 | ) | ||
| Income tax expense | - | - | |||
| Net income / (loss) | 201 | (2,114 | ) | ||
| Other comprehensive income / (loss), net of tax: | |||||
| Foreign currency translation adjustments, net of tax | 859 | (285 | ) | ||
| Comprehensive income / (loss) | 1,060 | (2,399 | ) | ||
| Earnings / (loss) per share | |||||
| Weighted average number of shares outstanding | 4,896,845 | 4,857,187 | |||
| Diluted weighted average number of shares outstanding | 5,091,440 | 4,857,187 | |||
| Earnings / (loss) per common share (in U.S.Dollars) | 0.04 | (0.44 | ) | ||
| Earnings / (loss) per common share (in U.S.Dollars) - assuming dilution | 0.04 | (0.44 | ) | ||
FAQ
What were Bonso Electronics' financial results for the six months ending September 30, 2021?
How did Bonso Electronics' revenue change compared to the previous year?
What factors contributed to Bonso Electronics' financial losses?
What issues is Bonso Electronics facing with its Shenzhen factory?
