Chanson International Holding Announces Fiscal Year 2024 Financial Results
PR Newswire
URUMQI, China, April 4, 2025
URUMQI, China, April 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 financial results for the fiscal year ended December 31, 2024.
Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "In 2024, our revenue experienced a moderate growth, with our stores in China achieving steady sales expansion, particularly in bakery products. Revenue from bakery products in China increased by 18.0%, contributing over 80% to our total revenue. This growth was driven by our continued store expansion in China, with 15 new bakery stores opening in 2024. We are pleased with our annual performance, which reflects our disciplined execution of business strategies and operational adaptability. Notably, we achieved a significant increase in net income, rising from $0.03 million to $0.8 million in fiscal year 2024, while maintaining a solid gross margin of approximately 40%.
Despite the complex macroeconomic environment--marked by uncertainties such as slower economic recovery and shifts in consumption patterns, which impacted the sales of seasonal products and beverages, we have navigated these uncertainties. Our strategic initiatives, including targeted promotions tailored to price-sensitive consumers, contributed to resilient revenue growth and market share expansion. In response to evolving consumer trends, we have diversified our product offerings by introducing freshly brewed coffee, further strengthen our market position.
Looking ahead, we remain confident in our long-term growth and expansion, supported by well-defined strategies and strong execution, which we believe will continue to create greater value for our shareholders and stakeholders."
Fiscal Year 2024 Financial Highlights
-- Total revenue was $18.2 million, an increase of 5.7% from $17.3
million in fiscal year 2023.
-- Gross profit was $7.2 million, compared to $8.1 million in fiscal year
2023.
-- Gross margin was 39.5%, compared to 47.2% in fiscal year 2023.
-- Net income was $0.76 million, increased from $0.03 million in fiscal year
2023.
-- Basic and diluted earnings per share were $0.05, increased from $0.003 in
fiscal year 2023.
Fiscal Year 2024 Financial Results
Revenue
Total revenue increased by 5.7% to $18.2 million in fiscal year 2024, from $17.3 million in fiscal year 2023. The increase in the revenue was due to increased revenue from stores in China ("China Stores"), which was partially offset by decreased revenue from stores in the United States ("United States Stores").
China Stores
-- Revenue from China Stores increased by 12.8% to $16.1 million in fiscal
year 2024, from $14.3 million in fiscal year 2023. The increase was
mainly due to the increased revenue from bakery products, which was
partially offset by the decrease revenue from other products.
-- Revenue from bakery products increased by 18.0% to $14.8 million in
fiscal year 2024, from $12.5 million in fiscal year 2023. The increase
was mainly attributed to the increased revenue generated by the newly
opened bakery stores, as fifteen bakery stores were opened during the
year ended December 31, 2024. Furthermore, China Stores have focused more
on increasing their market share and there have been increased promotion
activities and price discounts given to the customers, which attracted
more customers to make purchases in the fiscal year 2024.
-- Revenue from other products decreased by 24.3% to $1.3 million in fiscal
year 2024, from $1.8 million in fiscal year 2023, due to decreased
revenue from seasonal products as well as from beverage products. Revenue
from seasonal products decreased by 25.3% to $1.0 million in fiscal year
2024, from $1.3 million in fiscal year 2023, due to the consumption
downgrade during the fiscal year 2024. Revenue from beverage products
decreased by 21.7% to $0.4 million in fiscal year 2024, from 0.5 million
in fiscal year 2023, mainly due to the decreased revenue from one of the
Company's popular coffee bakery stores of approximately $144,000.However,
the decrease in revenue from beverage products was partially offset by
the increased revenue from freshly brewed coffee products, as the China
Stores are focusing on expanding the business of coffee beverages and
more coffee bakery stores were opened in fiscal year 2024.
United States Stores
-- Revenue from United States Stores decreased by 29.1% to $2.1 million in
fiscal year 2024, from $2.9 million in fiscal year 2023. The decrease was
mainly due to decreased revenue from beverage products and eat-in
services, which was partially offset by the increased revenue from bakery
products.
-- Revenue from bakery products increased by 13.8% to $0.5 million in fiscal
year 2024, from $0.4 million in fiscal year 2023. The increase was due to
the increased revenue from bakery products of approximately $183,000,
generated by Chanson 23rd Street and Chanson Broadway. During fiscal year
2024, the Company upgraded the bakery products, making the products more
appealing to the customers. In addition, as Chanson Broadway opened in
July 2023, twelve months revenue were recognized in fiscal year 2024, as
compared to only six months revenue were recognized in fiscal year 2023.
-- Revenue from beverage products decreased by 25.0% to $1.3 million in
fiscal year 2024, from $1.7 million in fiscal year 2023, primarily due to
the closure of Chanson Greenwich. The decrease was also attributable to
increased competition from competitors operating in the same area. After
the cocktail bars of the United States Stores launched several new types
of cocktail products with new flavors and styles, such products became
popular among customers and the cocktail bars were often fully booked by
reservation. However, during the year ended December 31, 2024, the
Company's competitors operating in the same area also launched many types
of attractive cocktail products, offering customers more choices and
resulting in revenue from beverage products being adversely affected.
-- Revenue from eat-in services decreased by 61.9% to $0.3 million in fiscal
year 2024, from $0.8 million in fiscal year 2023. The decrease was mainly
due to the decreased revenue from Chanson Greenwich of approximately
$436,000 as a result of the closure of its business as mentioned above.
Moreover, the decrease was due to the decreased revenue from Chanson 23rd
Street of approximately $158,000, as Chanson 23rd Street adjusted its
menu items and customers were adjusting to the new products. Additionally,
the interior design of Chanson 23rd Street was outdated, which made it
harder to attract customer visits. The decrease in revenue from eat-in
services was partially offset by the increased revenue from eat-in
services of approximately $104,000, generated by Chanson 3rd Ave and
Chanson Broadway.
Gross Profit and Gross Margin
Gross profit decreased by 11.7%, to $7.2 million in fiscal year 2024, from $8.1 million in fiscal year 2023. The decrease was mainly attributable to the increase in revenue from China Stores, and partially offset by the decrease in revenue from the United States Stores. Gross margin decreased by 7.7 percentage points to 39.5% in fiscal year 2024 from 47.2% in fiscal year 2023.
Operating Expenses
Operating expenses were $7.7 million in fiscal year 2024, compared to $8.8 million in fiscal year 2023.
-- Selling expenses decreased by 2.6%, to $4.8 million in fiscal year 2024,
from $4.9 million in fiscal year 2023. The decrease was mainly due to the
decreased selling expenses of approximately $245,000 incurred by Chanson
Greenwich, as Chanson Greenwich was closed in the second half of fiscal
year 2023. The decrease was also due to the decreased salary and social
security expenses of approximately $293,000 from the China Stores as a
result of streamlining of headcount to improve the operating efficiency
during fiscal year 2024.
-- General and administrative expenses decreased by 23.4%, to $3.0
million in fiscal year 2024 from $3.9 million in fiscal year 2023. The
decrease was primarily due to the decreased general and administrative
expenses of approximately $659,000 incurred by Chanson Greenwich as
result of its closure as mentioned above. The decrease was also
attributable to the decreased fees paid for professional services such as
financial consulting services in fiscal year 2024.
Net Income
Net income in fiscal year 2024 was $0.8 million, compared to $0.03 million in fiscal year 2023.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share in fiscal year 2024 was $0.05, compared to $0.003 in fiscal year 2023.
Balance Sheet
As of December 31, 2024, the Company had cash and cash equivalents of $12.1 million, compared to $1.5 million as of December 31, 2023.
Cash Flow
Net cash provided by operating activities was $3.5 million in fiscal year 2024, compared to net cash used in operating activities of $3.0 million in fiscal year 2023.
Net cash provided by investing activities was $1.9 million in fiscal year 2024, compared to net cash used in investing activities $10.5 million in fiscal year 2023.
Net cash provided by financing activities was $5.4 million in fiscal year 2024, compared to $12.1 million in fiscal year 2023.
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 55 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 SEC.
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
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
--------------- ---------------
2024 2023
--------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 12,102,763 $ 1,481,302
Accounts receivable 991,467 1,995,067
Inventories 738,773 723,905
Long term loan to a third-party,
current 2,000,000 -
Prepaid expenses and other current
assets 2,595,417 5,134,173
----------- -----------
18,428,420 9,334,447
----------- -----------
NON-CURRENT ASSETS:
Operating lease right-of-use assets 11,021,615 13,059,561
Property and equipment, net 4,444,473 5,462,063
Intangible assets, net 262,500 150,000
Long term security deposits 944,170 894,715
Prepayment for the software, equipment
and product development - 790,000
Long term debt investment 6,359,014 6,534,575
Long term loan to a third-party - 2,066,822
Long term prepaid expenses 315,642 142,113
----------- -----------
23,347,414 29,099,849
----------- -----------
TOTAL ASSETS $ 41,775,834 $ 38,434,296
=========== ===========
LIABILITIES
CURRENT LIABILITIES:
Short-term bank loans $ 1,507,159 $ 2,683,692
Accounts payable 2,127,740 1,919,189
Due to a related party 772,489 48,042
Taxes payable 48,712 96,176
Deferred revenue 6,697,964 7,085,696
Operating lease liabilities, current 2,325,390 2,198,192
Other current liabilities 662,963 697,702
----------- -----------
14,142,417 14,728,689
----------- -----------
NON-CURRENT LIABILITIES
Operating lease liabilities,
non-current 9,207,971 11,691,251
----------- -----------
9,207,971 11,691,251
----------- -----------
TOTAL LIABILITIES 23,350,388 26,419,940
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Ordinary shares, $0.001 par value,
5,000,000,000 shares authorized;
27,299,707 shares and 12,425,319
shares issued and outstanding as of
December 31, 2024 and 2023,
respectively:*
Class A ordinary share, $0.001 par
value, 4,400,000,000 shares
authorized; 21,629,707 shares and
6,485,319 shares issued and
outstanding as of December 31, 2024
and 2023, respectively 21,629 6,485
Class B ordinary share, $0.001 par
value, 600,000,000 shares authorized;
5,670,000 and 5,940,000 shares issued
and outstanding as of December 31,
2024 and 2023, respectively 5,670 5,940
Additional paid-in capital 17,724,592 11,800,472
Statutory reserve 661,924 447,231
Retained earnings (accumulated deficit) 391,338 (150,254)
Accumulated other comprehensive loss (379,707) (95,518)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 18,425,446 12,014,356
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 41,775,834 $ 38,434,296
=========== ===========
* Retrospectively restated for effect of
the authorized shares increased on
March 12, 2025.
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31,
2024 2023 2022
---------- ---------- -----------
REVENUE $ 18,227,537 17,252,662 13,272,075
COST OF REVENUE 11,033,219 9,105,337 7,169,404
---------- ----------
GROSS PROFIT 7,194,318 8,147,325 6,102,671
---------- ---------- -----------
OPERATING EXPENSES
Selling expenses 4,757,279 4,882,958 3,697,909
General and administrative
expenses 2,966,659 3,874,868 3,842,787
---------- ----------
Total operating expenses 7,723,938 8,757,826 7,540,696
---------- ---------- -----------
LOSS FROM OPERATIONS (529,620) (610,501) (1,438,025)
---------- ---------- -----------
OTHER INCOME (EXPENSE)
Interest (expense) income, net -50,928 35,505 (35,457)
Other income, net 687,492 193,425 194,824
Interest income from long term
debt investment 723,945 534,575 -
---------- ---------- -----------
Total other income, net 1,360,509 763,505 159,367
---------- ---------- -----------
PROFIT (LOSS) BEFORE INCOME
TAX EXPENSE 830,889 153,004 (1,278,658)
INCOME TAX EXPENSE (74,604) (119,416) (9,547)
NET INCOME (LOSS) 756,285 33,588 (1,288,205)
Foreign currency translation
loss (284,189) (130,778) (369,705)
---------- ---------- -----------
TOTAL COMPREHENSIVE INCOME
(LOSS) $ 472,096 (97,190) (1,657,910)
========== ========== ===========
Earnings (loss) per ordinary
share - basic and diluted $ 0.05 0.003 (0.14)
========== ========== ===========
Weighted average shares -
basic and diluted 16,423,670 11,537,373 9,000,000
========== ========== ===========
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
2024 2023 2022
------------ ------------- ------------
Cash flows from
operating activities:
Net income (loss) $ 756,285 $ 33,588 $(1,288,205)
Adjustments to reconcile
net income (loss) to net
cash provided by (used
in) operating
activities:
Amortization of
operating lease
right-of-use assets 2,639,094 2,628,985 2,533,074
Depreciation and
amortization 823,869 831,820 701,461
(Gain) loss on disposal
of property and
equipment (152,517) 4,982 -
Impairment loss on
property and equipment - 272,350 -
Accrued interest income
from long term debt
investment (723,945) (534,575) -
Interest income from
loan to a third-party (90,986) (66,822) -
Changes in operating
assets and liabilities:
Accounts receivable 959,859 (766,760) (215,847)
Inventories (32,001) (45,821) (206,264)
Prepaid expenses and
other current assets 2,552,891 (3,573,002) (430,717)
Long term security
deposits (58,209) 57,185 84,374
Long term prepaid
expenses (180,281) (34,010) (26,504)
Accounts payable 265,315 530,195 247,015
Taxes payable (46,790) (31,943) 103,212
Deferred revenue (179,643) 307,169 1,411,004
Other current
liabilities (25,902) (292,138) (433,848)
Operating lease
liabilities (2,969,001) (2,275,056) (1,927,407)
Net cash provided by
(used in) operating
activities 3,538,038 (2,953,853) 551,348
----------- ------------ -----------
Cash flows from
investing activities:
Purchase of property and
equipment (583,313) (773,964) (860,034)
Purchase of intangible
assets - (150,000) -
Proceeds from disposal
of property and
equipment 35,562 444 -
Payment made for long
term debt investment - (6,000,000) -
Interest income received
from long term debt
investment 899,507 - -
Advance of loans to
third parties - (3,900,000) -
Repayment from loans to
third parties 907,704 1,150,104 -
Prepayment for the
software, equipment and
product development - (1,190,000) -
Refund of prepayment for
the product
development 650,000 400,000 -
Net cash provided by
(used in) investing
activities 1,909,460 (10,463,416) (860,034)
----------- ------------ -----------
Cash flows from
financing activities:
Gross proceeds from
initial public
offerings - 13,560,000 -
Direct costs disbursed
from initial public
offerings proceeds - (1,529,631) -
Proceeds from sales of
ordinary shares, net of
issuance costs 5,938,994 - -
Proceeds from short-term
bank loans 2,225,715 2,685,588 445,831
Repayments of short-term
bank loans (3,338,573) (424,040) (1,474,129)
Advances received from
(payments made to) a
related party 524,610 (1,892,423) 1,076,717
Payments made for
deferred offering
costs - (340,469) (38,490)
Net cash provided by
financing activities 5,350,746 12,059,025 9,929
----------- ------------ -----------
Effect of exchange rate
fluctuation on cash and
cash equivalents (176,783) (75,924) (682,585)
----------- ------------ -----------
Net increase (decrease)
in cash and cash
equivalents 10,621,461 (1,434,168) (981,342)
Cash and cash
equivalents, beginning
of year 1,481,302 2,915,470 3,896,812
----------- -----------
Cash and cash
equivalents, end of
year $ 12,102,763 $ 1,481,302 $ 2,915,470
=========== ============ ===========
Supplemental cash flow
information
Cash paid for income
taxes $ 45,128 $ 92,409 $ 5,282
=========== ============ ===========
Cash paid for interest $ 141,106 $ 32,444 $ 37,277
=========== ============ ===========
Non-cash operating,
investing and financing
activities
Payable for purchase of
property and equipment $ - $ - $ 463,556
=========== ============ ===========
Reduction of
right-of-use assets and
operating lease
obligations due to
early termination of
lease agreement $ 2,519,354 $ - $ -
=========== ============ ===========
Right of use assets
obtained in exchange
for operating lease
liabilities $ 2,719,792 $ 1,676,362 $ 5,160,825
=========== ============ ===========
Deferred IPO cost offset
with additional paid-in
capital $ - $ 1,095,872 $ -
=========== ============ ===========
Intangible assets
acquired by prepayment $ 140,000 $ - $ -
=========== ============ ===========
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SOURCE Chanson International Holding
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April 04, 2025 16:05 ET (20:05 GMT)
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