BNSO Bonso Electronics International Inc

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For March 30, 2020

Commission File Number: 0-17601

BONSO ELECTRONICS INTERNATIONAL INC.

(Exact name of Registrant as specified in its charter)

British Virgin Islands

(Jurisdiction of incorporation or organization)

Unit 1404, 14/F, Cheuk Nang Centre,

9 Hillwood Road, Tsimshatsui

Kowloon, Hong Kong

(Address of principal executive offices)

Albert So, Chief Financial Officer and Secretary

Tel: (852) 2605-5822 Fax: (852) 2691-1724

Email: albert@bonso.com

Unit 1404, 14/F, Cheuk Nang Centre,

9 Hillwood Road, Tsimshatsui

Kowloon, Hong Kong

(Name, Telephone, email and/or fax number and address of Company Contact Person)

[Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.]

Form 20-F ___X__ Form 40-F ______

[Indicate by check mark whether the Registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]

Yes _____ No ___X__

TABLE OF CONTENTS

REPORT FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2019 ON FORM 6-K

99.1 Press Release disclosing Results of Operations dated March 30, 2020.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and pet electronics products.

During the six-month period ended September 30, 2019, our net revenue decreased approximately $1,222,000, or 21.7%, as compared to the six-month period ended September 30, 2018. The primary reason for the decrease in net revenue was the decreased overall demand for our electronic products during the period and a decline in rental income after the lease of our Shenzhen factory was terminated. We recognized a net loss of approximately $588,000 for the six-month period ended September 30, 2019, as compared to a net loss of approximately $88,000 during the six-month period ended September 30, 2018.

On March 30, 2020, the Company issued a press release disclosing its results of operations for the six-month period ended September 30, 2019. A copy of this press release is attached to this Form 6-K as exhibit 99.1.

Results of Operations

Six-Month Period Ended September 30, 2019 Compared to the Six-Month Period Ended September 30, 2018

Net Revenue. During the six-month period ended September 30, 2019, our net revenue decreased 21.7%, or approximately $1,222,000, from approximately $5,631,000 for the six-month period ended September 30, 2018 to approximately $4,409,000. The decreased revenue was primarily the result of a decrease in overall demand for our products and a decline in rental income after the lease of our Shenzhen factory was terminated.

Cost of Revenue. During the six-month period ended September 30, 2019, cost of revenue decreased to approximately $3,448,000 from approximately $3,602,000 during the six-month period ended September 30, 2018, a decrease of approximately $154,000, or 4.3%. As a percentage of revenue, the cost of revenue increased from 64.0% to 78.2%. The increase was primarily the result of the decline in rental income during the six-month period ended September 30, 2019 after the lease of our Shenzhen factory was terminated, while there were similar level of maintenance and depreciation costs for the Shenzhen factory in both periods.

Gross Margin. As a result of the factors noted above, gross margin decreased by $1,068,000 from $2,029,000 in the six months ended September 30, 2018 to $961,000 during the six months ended September 30, 2019. As a percentage of revenue, gross margin declined to 21.8% during the six-month period ended September 30, 2019 as compared to 36.0% during the same period in the prior year.

Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased by 2.0%, or approximately $41,000, from approximately $2,099,000 for the six-month period ended September 30, 2018 to approximately $2,058,000 for the six-month period ended September 30, 2019. As a percentage of Net Revenue, selling, general and administrative expenses were 37.3% during the six months ended September 30, 2018, compared to 46.7% for the six months ended September 30, 2019. The decrease of $41,000 was primarily the result of reduced salary and related costs during the six-month period ended September 30, 2019, compared to the same period in the prior year.

Other Income, Net. Other income, net increased approximately $66,000, or 412.5%, from approximately $16,000 for the six-month period ended September 30, 2018 to approximately $82,000 for the six-month period ended September 30, 2019. The increase was a result of increased gain from investment in marketable securities during the six-month period ended September 30, 2019.

Loss From Operations. As a result of the above changes, the loss from operations was approximately $1,015,000 for the six-month period ended September 30, 2019, compared to a loss from operations of approximately $54,000 for the six-month period ended September 30, 2018, an increase of approximately $961,000.

Non-operating (Expenses) / Income, Net. Non-operating (expenses) / income, net increased from a loss of approximately $34,000 for the six-month period ended September 30, 2018 to a gain of approximately $427,000 for the six-month period ended September 30, 2019. The increase in net non-operating income was primarily the result of increased interest income and foreign exchange gain during the six-month period ended September 30, 2019. The increase in interest income was the result of increased amounts on fixed deposit with banks during the six-month period ended September 30, 2019.

Net Loss. As a result of the above changes, net loss increased from a net loss of approximately $88,000 for the six-month period ended September 30, 2018 to a net loss of approximately $588,000 for the six-month period ended September 30, 2019, an increase of approximately $500,000.

Foreign Currency Translation Adjustments, Net of Tax.  Foreign currency translation adjustments, net of tax decreased from a loss of approximately $1,424,000 for the six-month period ended September 30, 2018 to a loss of approximately $1,166,000 for the six-month period ended September 30, 2019, a decrease of approximately $258,000.  The loss was primarily attributable to the result of the revaluation of assets denominated in Chinese Yuan (“CNY”) due to different CNY/USD exchange rates at the balance sheet dates of March 31, 2019 and September 30, 2019.

Comprehensive Loss.  As a result of the factors described above, comprehensive loss increased from a loss of approximately $1,512,000 for the six-month period ended September 30, 2018, to a loss of approximately $1,754,000 for the six-month period ended September 30, 2019.

Liquidity and Capital Resources

We have financed our growth and cash needs to date primarily from internally generated funds and bank debt. We do not use off-balance sheet financing arrangements, such as securitization of receivables or obtaining access to assets through special purpose entities, as sources of liquidity. Our primary uses of cash have been to fund operations, expansions and upgrades of our manufacturing facilities.

As of September 30, 2019, we had approximately $7,000,000 in cash and cash equivalents as compared to approximately $7,527,000 as of March 31, 2019. At September 30, 2019, working capital was approximately $5,350,000, compared to approximately $6,249,000 at March 31, 2019. The decrease was the result of loss generated from operations, during the six-month period ended September 30, 2019.

We believe that our cash flows from operations, our current cash balance and funds available under our working capital and credit facilities will be sufficient to meet our working capital needs and planned capital expenditures for the next twelve months.

During the six-month period ended September 30, 2019, the Company has purchased 25,853 shares of its common stock under the share repurchase program. As of September 30, 2019, the Company (through its subsidiary) had repurchased an aggregate of 932,719 shares of its common stock. The Company may from time to time repurchase additional shares of its Common Stock under this program. 

Exhibits

99.1       Press Release disclosing Results of Operations dated March 30, 2020.

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