URUMQI, China, Sept. 4, 2025 /PRNewswire/ -- Chanson International Holding (Nasdaq: CHSN) (the "Company" or "Chanson"), a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States, today announced its unaudited financial results for the six months ended June 30, 2025.
Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "In the first half of fiscal year 2025, despite facing various challenges, we have shown resilience and adaptability in a dynamic market. With the revenue growth we achieved, we have successfully maintained our gross margins at above 40%, by enforcing cost control measures and enhancing operating efficiency. Additionally, with an increased cash reserve as of June 30, 2025, we are in a solid position to manage market uncertainties. As we move forward, we remain confident in our long-term growth strategy and execution capabilities. Our expansion initiatives in both the United States and China are expected to remain a key focus of our growth. We aim to further drive revenue by attracting new customers and encouraging repeat business from existing ones. We aim to achieve these results by strengthening opportunistic purchasing, optimizing inventory management, maintaining strong store conditions, and effectively marketing both current and new product offerings. We believe that those efforts will help us navigate short-term headwinds and support long-term growth in the near future."
First Half of Fiscal Year 2025 Financial Summary
-- Total revenue was $8.7 million, compared to $7.5 million for the same
period of last year.
-- Gross profit was $3.9 million, compared to $3.1 million for the same
period of last year.
-- Gross margin was 44.5%, compared to 41.5% for the same period of last
year.
-- Net loss was $1.0 million, compared to net income of $0.02 million for
the same period of last year.
-- Basic and diluted loss per share were $2.87, compared to basic and
diluted earnings per share $0.15 for the same period of last year.
First Half of Fiscal Year 2025 Financial Results
Revenue
Total revenue was $8.7 million for the six months ended June 30, 2025, which increased by 15.2%, from $7.5 million for the same period of last year. The increase in revenue was due to increased revenue from the stores in China (the "China Stores"), which was partially offset by decreased revenue from the stores in the United States (the "United States Stores").
China Stores
Revenue from the China Stores was $7.8 million for the six months ended June 30, 2025, which increased by $1.3 million or 19.7%, from $6.5 million for the same period of last year. The increase was mainly due to the increased revenue from bakery products as well as from other products.
-- Revenue from bakery products was $7.2 million for the six months ended
June 30, 2025, which increased by 20.8%, from $5.9 million for the same
period of last year. The increase was mainly attributed to the increased
revenue generated by the newly opened bakery stores, as nineteen bakery
stores have been opened since the second half of fiscal year 2024.
-- Revenue from other products was $0.63 million for the six months ended
June 30, 2025, which increased by 8.5%, from $0.58 million for the same
period of last year. The increase was mainly due to increased revenue
from seasonal products, which was partially offset by decreased revenue
from beverage products. Revenue from seasonal products was $0.51 million
for the six months ended June 30, 2025, which increased by 39.0% from
$0.36 million for the same period of last year. The increase was due to
increased revenue from group purchases from corporate customers of the
China Stores, as we offered more sales promotions and price discounts to
attract more customers and received more group purchases orders. Revenue
from beverage products was $0.12 million for the six months ended June
30, 2025, a decrease by 42.9% from $0.22 million for the same period of
last year. The opening of new stores by several well-known coffee chain
brands in Xinjiang, offering products at very low prices to gain market
share, provided customers with more choices and contributed to a decline
in beverage product revenue at our China Stores. As of June 30 2025, two
coffee bakery stores were closed, one in fiscal year 2024 and another in
the six months ended June 30, 2025.
United States Stores
Revenue from the U.S. Stores was $0.9 million for the six months ended June 30, 2025, which decreased by 13.2% from $1.0 million for the same period of last year. The decrease was mainly due to decreased revenue from bakery products and eat-in services, which was partially offset by the slightly increased revenue from beverage products.
-- Revenue from bakery products was $0.22 million for the six months ended
June 30, 2025, which decreased by 10.1% from $0.24 million for the same
period of last year. The decrease was due to the decreased revenue from
Chanson 23rd Street LLC ("Chanson 23rd Street") and Chanson 1293 3rd Ave
LLC ("Chanson 3rd Ave"). Facing increased competition from competitors
operating in the same area, Chanson 23rd Street suspended its business
operation of bakery products and eat-in services in April 2025 and
Chanson 3rd Ave suspended all business operation in January 2025. However,
the decrease in revenue from bakery products was partially offset by the
increased revenue from Chanson Broadway as we implemented a series of
performance-enhancing measures, including extending business hours,
optimizing the products mix and offering more sales promotions and price
discounts to attract more customers.
-- Revenue from beverage products remained relatively stable at $0.64
million for the six months ended June 30, 2025, with a slight increase by
1.9% from $0.63 million for the same period of last year. The increase
was due to the increased revenue of beverage products generated by
Chanson Broadway, resulting from implementation of the
performance-enhancing measures as mentioned above. The increase was
partially offset by the decreased revenue from Chanson 23rd Street,
primarily attributable to increased competition from competitors
operating in the same area, as well as the decreased revenue from Chanson
3rd Ave resulting from the suspension of business operation as mentioned
above.
-- Revenue from eat-in services was $0.05 million for the six months ended
June 30, 2025, which decreased by 72.9% from $0.17 million for the same
period of last year. As mentioned above, Chanson 23rd Street suspended
its business operation of bakery products and eat-in services in April
2025 and Chanson 3rd Ave suspended all business operation in January
2025, hence, revenue from eat-in services decreased for the six months
ended June 30, 2025.
Gross Profit and Gross Margin
Gross profit was $3.9 million for the six months ended June 30, 2025, which increased by 23.6% from $3.1 million for the same period of last year. Gross margin was 44.5% for the six months ended June 30, 2025, which increased by 3.0 percentage points from 41.5% for the same period of last year.
Operating Expenses
Operating expenses were $5.1 million for the six months ended June 30, 2025, compared to $3.7 million for the same period of last year.
-- Selling expenses were $2.8 million for the six months ended June 30,
2025, which increased by 26.3%, from $2.2 million for the same period of
last year, mainly due to an increase in selling expenses of $0.6 million
from the China Stores. The increase in the China Stores was primarily
attributable to (i) an increase in salaries and welfare benefit expenses
of $0.21 million, as the China Stores hired additional sales staff for
the new stores; (ii) an increase in online platform service fees of $0.14
million, resulting from the increased online sales on the third-party
platform during the six months ended June 30, 2025; and (iii) an increase
in rental expenses, renovation expenses and electricity expenses of $0.08
million, as twenty-three stores have been opened since the second half of
fiscal year 2024.
-- General and administrative expenses were $2.2 million for the six months
ended June 30, 2025, which increased by 53.7 % from $1.5 million for the
same period of last year. The increase was primarily due to an
increase in allowance for credit losses of $0.5 million. On April 3,
2023, we entered a loan agreement with Liberty Asset Management Capital
Limited (the "Borrower") to lend the Borrower $2.0 million for two years,
with a maturity date of April 3, 2025. Due to the Borrower's financial
distress, we collected $1.5 million upon maturity of the loan, and the
remaining balance of 0.5 million was charged off and recognized as the
bad debt written-off. The increase in general and administrative expenses
was also attributable to the increased audit, legal and professional
service fees due to issuance of additional equity security during the six
months ended June 30, 2025.
Net Income (Loss)
Net loss was $1.0 million for the six months ended June 30, 2025, compared to net income of $0.02 million for the same period of last year.
Basic and Diluted Earnings (Loss) per Share
Basic and diluted loss per share were $2.87 for the six months ended June 30, 2025, compared to basic and diluted earnings per share of $0.15 for the same period of last year.
Balance Sheet
As of June 30, 2025, the Company had cash of $22.1 million, compared to $12.1 million as of December 31, 2024.
Cash Flow
Net cash used in operating activities was $0.4 million for the six months ended June 30, 2025, compared to net cash provided by $0.8 million for the same period of last year.
Net cash provided by investing activities was $1.5 million for the six months ended June 30, 2025, compared to $1.4 million for the same period of last year.
Net cash provided by financing activities was $8.6 million for the six months ended June 30, 2025, compared to $0.4 million for the same period of last year.
About Chanson International Holding
Founded in 2009, Chanson International Holding is a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States. Headquartered in Urumqi, China, Chanson directly operates stores in Xinjiang, China and New York, United States. Chanson currently manages 60 stores in China, and three stores in New York City while selling on digital platforms and third-party online food ordering platforms. Chanson offers not only packaged bakery products but also made-in-store pastries and eat-in services, serving freshly prepared bakery products and extensive beverage products. Chanson aims to make healthy, nutritious, and ready-to-eat food through advanced facilities based on in-depth industry research, while creating a comfortable and distinguishable store environment for customers. Chanson's dedicated and highly-experienced product development teams constantly create new products that reflect market trends to meet customer demand. For more information, please visit the Company's website: http://ir.chanson-international.net/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.
For investor and media inquiries, please contact:
Chanson International Holding
Investor Relations Department
Email: IR@chansoninternational.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2025 2024
----------- ---------------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $22,092,155 $ 12,102,763
Accounts receivable 2,412,842 991,467
Inventories 712,040 738,773
Long term loan to a third-party, current - 2,000,000
Prepaid expenses and other current assets 2,255,097 2,595,417
27,472,134 18,428,420
---------- -----------
NON-CURRENT ASSETS:
Operating lease right-of-use assets 11,207,618 11,021,615
Property and equipment, net 5,322,405 4,444,473
Intangible assets, net 244,375 262,500
Long term security deposits 681,011 944,170
Long term debt investment 6,359,014 6,359,014
Long term prepaid expenses 275,949 315,642
24,090,372 23,347,414
---------- -----------
TOTAL ASSETS $51,562,506 $ 41,775,834
========== ===========
LIABILITIES
CURRENT LIABILITIES:
Short-term bank loans $ 418,576 $ 1,507,159
Current portion of long-term bank loans 306,956 -
Accounts payable 2,443,259 2,127,740
Due to a related party 2,811 772,489
Taxes payable 174,290 48,712
Deferred revenue 7,228,151 6,697,964
Operating lease liabilities, current 2,221,418 2,325,390
Other current liabilities 929,801 662,963
13,725,262 14,142,417
---------- -----------
NON-CURRENT LIABILITIES
Operating lease liabilities, non-current 9,135,236 9,207,971
Long-term bank loans 4,157,853 -
13,293,089 9,207,971
---------- -----------
TOTAL LIABILITIES 27,018,351 23,350,388
---------- -----------
COMMITMENTS AND CONTINGENCIES (Note 15)
SHAREHOLDERS' EQUITY
Ordinary shares, $0.08 par value,
62,500,000 shares authorized; 643,411
shares and 341,247 shares issued and
outstanding as of June 30, 2025 and
December 31, 2024, respectively:*
Class A ordinary share, $0.08 par value,
55,000,000 shares authorized; 572,536
shares and 270,372 shares issued and
outstanding as of June 30, 2025 and
December 31, 2024, respectively 45,802 21,629
Class B ordinary share, $0.08 par value,
7,500,000 shares authorized; 70,875 shares
issued and outstanding as of June 30, 2025
and December 31, 2024, respectively 5,670 5,670
Additional paid-in capital 24,610,553 17,724,592
Statutory reserve 661,924 661,924
(Accumulated deficit) retained earnings (657,455) 391,338
Accumulated other comprehensive loss (122,339) (379,707)
TOTAL SHAREHOLDERS' EQUITY 24,544,155 18,425,446
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $51,562,506 $ 41,775,834
========== ===========
* Retrospectively restated for effect of the reverse split on August 18,
2025
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE (LOSS) INCOME
For the Six Months Ended June 30,
2025 2024
------------------ -------------
REVENUE $ 8,688,208 $ 7,542,682
COST OF REVENUE 4,822,856 4,415,407
GROSS PROFIT 3,865,352 3,127,275
------------------ -------------
OPERATING EXPENSES
Selling expenses 2,817,128 2,230,905
General and administrative
expenses 2,238,769 1,456,499
Total operating expenses 5,055,897 3,687,404
------------------ -------------
LOSS FROM OPERATIONS (1,190,545) (560,129)
------------------ -------------
OTHER INCOME (EXPENSE)
Interest expense, net (78,343) (25,278)
Other (expense) income, net (76,487) 314,670
Interest income from long term
debt investment 359,014 359,014
------------------ -------------
Total other income, net 204,184 648,406
------------------ -------------
(LOSS) PROFIT BEFORE INCOME TAX
EXPENSE (986,361) 88,277
INCOME TAX EXPENSE (62,432) (64,865)
NET (LOSS) INCOME (1,048,793) 23,412
Foreign currency translation gain 257,368 16,207
------------------ -------------
TOTAL COMPREHENSIVE (LOSS) INCOME $ (791,425) $ 39,619
================== =============
(Loss) earnings per ordinary
share - basic and diluted $ (2.87) $ 0.15
================== =============
Weighted average shares - basic
and diluted * 365,523 155,316
================== =============
* Retrospectively restated for effect of the reverse split on August 18,
2025
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30,
2025 2024
-------------------- ----------------
Cash flows from operating
activities:
Net (loss) income $ (1,048,793) $ 23,412
Adjustments to reconcile net
(loss) income to net cash (used
in) provided by operating
activities:
Amortization of operating lease
right-of-use assets 1,277,452 1,697,141
Depreciation and amortization 392,976 445,787
Write off of bad debts 500,000 -
Loss on disposal of property and
equipment 77,505 -
Accrued interest income from long
term debt investment (359,014) (359,014)
Interest income from loan to a
third-party - (44,877)
Changes in operating assets and
liabilities:
Accounts receivable (1,387,301) (40,507)
Inventories 37,621 (65,027)
Prepaid expenses and other
current assets 372,248 286,121
Long term security deposits 269,171 49,350
Long term prepaid expenses 44,851 32,953
Accounts payable 277,671 213,875
Taxes payable 124,895 (19,020)
Deferred revenue 403,151 299,816
Other current liabilities 255,300 (79,738)
Operating lease liabilities (1,628,032) (1,634,128)
Net cash (used in) provided by
operating activities (390,299) 806,144
---------------- ---------------
Cash flows from investing
activities:
Purchase of property and
equipment (310,368) (34,268)
Proceeds from disposal of
property and equipment - 34,562
Interest income received from
long term debt investment 359,014 534,575
Repayment from loans to third
parties 1,500,000 862,088
Net cash provided by investing
activities 1,548,646 1,396,957
---------------- ---------------
Cash flows from financing
activities:
Proceeds from sales of the Equity
Security Units, net of issuance
costs 6,910,134 -
Proceeds from short-term bank
loans 413,658 422,095
Repayments of short-term bank
loans (1,516,747) -
Proceeds from long-term bank
loans 4,412,355 -
Payments made to a related party (1,640,710) (56,298)
Net cash provided by financing
activities 8,578,690 365,797
---------------- ---------------
Effect of exchange rate fluctuation
on cash and cash equivalents 252,355 57,630
---------------- ---------------
Net increase in cash and cash
equivalents 9,989,392 2,626,528
Cash and cash equivalents,
beginning of period 12,102,763 1,481,302
---------------- ---------------
Cash and cash equivalents, end of
period $ 22,092,155 $ 4,107,830
================ ===============
Supplemental cash flow
information
Cash paid for income taxes $ 14,995 $ 40,889
================ ===============
Cash paid for interest $ 74,745 $ 68,450
================ ===============
Non-cash operating, investing and
financing activities
Property and equipment acquired
in settlement of the amount due
from a related party $ 954,293 $ -
================ ===============
Reduction of right-of-use assets
and operating lease obligations
due to early termination of
lease agreement $ 270,532 $ 60,277
================ ===============
Right of use assets obtained in
exchange for operating lease
liabilities $ 1,560,535 $ 1,697,141
================ ===============
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SOURCE Chanson International Holding
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September 04, 2025 16:30 ET (20:30 GMT)