Chanson International Holding Announces Fiscal Year 2025 Financial Results

Total revenue increased by 0.2% to $18.3 million in fiscal year 2025, from $18.2 million in fiscal year 2024. The increase in revenue was due to increased revenue from our stores in China (the "China Stores"), which was partially offset by decreased revenue from our stores in the United States (the "United States Stores").

China Stores

• Revenue from the China Stores increased by 1.3% to $16.4 million in fiscal year 2025, from $16.1 million in fiscal year 2024. The increase was mainly due to the increased revenue from other products, which was partially offset by the decrease in revenue from bakery products.
• Revenue from bakery products decreased by 1.1% to $14.6 million in fiscal year 2025, from $14.8 million in fiscal year 2024. The decrease was mainly due to the challenging economic environment, cautious consumer spending, and shifts in consumer spending patterns, such as the transition from in-store consumption to online consumption during fiscal year 2025.
• Revenue from other products increased by 28.5% to $1.7 million in fiscal year 2025, from $1.3 million in fiscal year 2024. The increase was due to increased revenue from seasonal products, which was partially offset by decreased revenue from beverage products. Revenue from seasonal products increased by $0.5 million, or 52.8%, from $1.0 million in fiscal year 2024 to $1.5 million in fiscal year 2025. The Company established a Product Planning and Promotion Department staffed with dedicated professionals, which has effectively enhanced the marketing and promotion of seasonal products, and the Company received more seasonal products purchase orders. Revenue from beverage products decreased by $0.1 million, or 35.2%, from $0.4 million in fiscal year 2024 to $0.2 million in fiscal year 2025. The opening of new stores by several well-known coffee chain brands in Xinjiang, offering products at low prices to gain market share, provided customers with more choices and contributed to a decline in beverage product revenue from the China Stores. As of December 31, 2025, two coffee bakery stores were closed, one in fiscal year 2024 and another in the first half of fiscal year 2025.

United States Stores

• Revenue from the United States Stores decreased by 8.4% to $1.9 million in fiscal year 2025, from $2.1 million in fiscal year 2024. The decrease was mainly due to decreased revenue from bakery products and eat-in services, which was partially offset by the increased revenue from beverage products.
• Revenue from bakery products decreased by 50.4% to $0.3 million in fiscal year 2025, from $0.5 million in fiscal year 2024. The decrease was due to the decreased revenue from Chanson 23rd Street LLC ("Chanson 23rd Street") of approximately $0.2 million and Chanson 1293 3rd Ave LLC ("Chanson 3rd Ave") of approximately $21,000. Facing increased competition from competitors operating in the same area, Chanson 23rd Street suspended its business operation of bakery products 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 2040 Broadway LLC ("Chanson Broadway") of approximately $10,000 as the Company 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 increased by 17.6% to $1.5 million in fiscal year 2025, from $1.3 million in fiscal year 2024. The increase in revenue of beverage products was due to an approximately $0.3 million revenue increase from Chanson 23rd Street and Chanson Broadway. During fiscal year 2025, the Company launched several new types of cocktail products with a variety of new flavors and styles, and implemented the performance-enhancing measures as mentioned above, which led to an increase in private event bookings. The increase in revenue of beverage products was partially offset by the decreased revenue from Chanson 3rd Ave resulting from the suspension of business operation as mentioned above.
• Revenue from eat-in services decreased by 47.6% to $0.2 million in fiscal year 2025, from $0.3 million in fiscal year 2024. As mentioned above, Chanson 3rd Ave suspended all business operations in January 2025, hence, revenue from eat-in services decreased in fiscal year 2025.

Gross Profit and Gross Margin

Gross profit increased by 14.2%, to $8.2 million in fiscal year 2025, from $7.2 million in fiscal year 2024. The increase was mainly attributable to the overall increase in revenue. Gross margin increased by 5.5 percentage points to 45.0% in fiscal year 2025 from 39.5% in fiscal year 2024.

Operating Expenses

Operating expenses were $10.1 million in fiscal year 2025, compared to $7.7 million in fiscal year 2024.

• Selling expenses increased by 31.6%, to $6.3 million in fiscal year 2025, from $4.8 million in fiscal year 2024. The increase was primarily attributable to (i) an increase in rental expenses, renovation expenses and electricity expenses of $0.8 million, as nine stores have been opened in the fiscal year 2025; (ii) an increase in salaries and welfare benefit expenses of $0.6 million, as the China Stores hired additional sales staff for the new stores; and (iii) an increase in online platform service fees of $0.1 million, resulting from the increased online sales on the third-party platform in fiscal year 2025.
• General and administrative expenses increased by 29.6%, to $3.8 million in fiscal year 2025 from $3.0 million in fiscal year 2024. The increase was primarily due to an increase in allowance for credit losses of $0.5 million. The increase was also attributable to the increased audit, legal and professional service fees due to issuance of additional equity security in fiscal year 2025.

Net Income

Net income was $0.2 million in fiscal year 2025, compared to $0.8 million in fiscal year 2024.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share in fiscal year 2025 was $0.03 based on 5,369,346 weighted average shares, compared to $3.68 in fiscal year 2024 based on 205,296 weighted average shares, in each case retrospectively restated for effect of the reverse share split on August 18, 2025.

Balance Sheet

As of December 31, 2025, the Company had cash and cash equivalents of $8.6 million, compared to $12.1 million as of December 31, 2024.

Cash Flow

Net cash provided by operating activities was $2.9 million in fiscal year 2025, compared to $3.5 million in fiscal year 2024.

Net cash used in investing activities was $45.8 million in fiscal year 2025, compared to net cash provided by investing activities of $1.9 million in fiscal year 2024.

Net cash provided by financing activities was $39.1 million in fiscal year 2025, compared to $5.4 million in fiscal year 2024.

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 63 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

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SOURCE Chanson International Holding