Bonso Electronics International, Inc. (NASDAQ: BNSO) today announced its unaudited results for the six-month period ended September 30, 2020.

Bonso reported net income for the six-month period ended September 30, 2020, of $0.20 million, or $0.04 basic and diluted income per share, as compared to a net loss of $0.59 million, or $0.13 basic loss per share, posted during the six-month period ended September 30, 2019. Net revenue for the six-month period ended September 30, 2020, increased 84.3% to $8.1 million from $4.4 million for the six-month period ended September 30, 2019. The increased net income resulted principally from the increase in revenue related to the Company’s pet electronic products for the six-month period ended September 30, 2020.

Mr. Andrew So, President and CEO stated: “Our net revenue during the six-month period ended September 30, 2020 increased as a result of increased sales of pet electronic products mainly through online sales channels. We are delighted to achieve growth from our online sales during the pandemic. However, growth of demand for our products may not sustain due to fierce competition and reduced consumer purchasing power. To continue the growth of our revenue, we have launched electronic bathroom scales and upgraded pet electronic products like ultrasonic dog trainers and nail grinders to be sold online.”

Further, Mr. Andrew So stated: “The Company and its development partner are working closely with the government to obtain the remaining governmental approvals for the redevelopment of the Shenzhen factory. However, there were changes in the local district planning and regulations, and we estimate that it will require approximately another twelve months to obtain the necessary approvals. In the meantime, we have signed a short term lease agreement to lease out part of the existing Shenzhen factory to a third party to gain extra rental income.”

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.

For more information please contact:

Albert SoChief Financial Officer and SecretaryTel: 852 2605 5822Fax: 852 2691 1724SOURCE Bonso Electronics

-- Tables to Follow –

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

  March 31,   September 30,
  2020   2020
  $ in thousands   $ in thousands
  (Audited)   (Unaudited)
Assets      
       
Current assets      
Cash and cash equivalents 9,111   9,634
Trade receivables, net 811   925
Other receivables, deposits and prepayments 692   326
Inventories, net 1,178   1,019
Income tax recoverable 5   5
Financial instruments at fair value 54   132
Total current assets 11,851   12,041
       
Investment in life settlement contracts 158   160
Financial instruments at amortized cost 523   523
Other intangible assets 1,930   1,878
Right-of-use assets 300   266
Property, plant and equipment, net 9,439   9,500
Total assets 24,201   24,368
Liabilities and stockholders’ equity      
       
Current liabilities      
Bank loans - secured 1,937   1,202
Accounts payable 775   656
Contract liabilities 12   0
Accrued charges and deposits 3,174   3,098
Refund liabilities 69   69
Payable to affiliated party 80   0
Lease liabilities 92   98
Total current liabilities 6,139   5,123
       
Lease liabilities, non-current 213   173
Long-term deposit received 647   674
Long-term loan 2,438   2,604
       
Total liabilities 9,437   8,574
Stockholders’ equity      
Common stock par value $0.003 per share      
- authorized shares - 23,333,334      
- issued shares: Mar 31, 2020 - 5,828,205; Sep 30, 2020 - 5,828,205 17   17
outstanding shares: Mar 31, 2020 - 4,906,466; Sep 30, 2020 - 4,892,899      
Additional paid-in capital 22,795   22,795
Treasury stock at cost: Mar 31, 2020 - 921,739; Sep 30, 2020 - 935,306 -2,892   -2,922
Accumulated deficit -6,094   -5,893
Accumulated other comprehensive income 938   1,797
  14,764   15,794
       
Total liabilities and stockholders’ equity 24,201   24,368
       

Unaudited Consolidated Statements of Operations and Comprehensive Loss

(Expressed in United States Dollars)

  Six months ended September 30, 2019   Six months ended September 30, 2020
  $ in thousands   $ in thousands
  (unaudited)   (unaudited)
       
Net revenue 4,409   8,124
Cost of revenue -3,448   -3,054
Gross profit 961   5,070
       
Selling, general and administrative expenses -2,058   -4,592
Other income, net 82   40
(Loss) / income from operations -1,015   518
Non-operating income / (expenses), net 427   -317
(Loss) / income before income taxes -588   201
Income tax expense 0   0
Net (loss) / income -588   201
       
Other comprehensive loss, net of tax:      
Foreign currency translation adjustments, net of tax -1,166   859
Comprehensive (loss) / income -1,754   1,060
       
(Loss) / earnings per share      
       
Weighted average number of shares outstanding 4,644,920   4,896,845
Diluted weighted average number of shares outstanding 4,644,920   5,091,440
       
(Loss) / earnings per common share (in U.S.Dollars) -0.13   0.04
(Loss) / earnings per common share (in U.S.Dollars) - assuming dilution -0.13   0.04