URUMQI, China, July 24, 2025 (GLOBE NEWSWIRE) -- 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 that its “baking + same-city delivery” and “livestream + interaction” strategy has realized significant growth in online sales. This initiative marks a promising start in Chanson’s expansion in online markets. In 2024, the Company launched its channel on Douyin ...

Core Viewpoint - Univest Securities, LLC announced the closing of a public offering of approximately $8 million for Chanson International Holding, a provider of bakery, seasonal, and beverage products in China and the United States [1][3]. Group 1: Offering Details - The offering consisted of 16,000,000 units priced at $0.50 per unit, each unit comprising one Class A ordinary share or a pre-funded warrant, along with Series A and Series B warrants [2]. - Each Series A and Series B warrant has an exercise price of $0.525 per Class A ordinary share and is exercisable starting from the issuance date until two and a half years after [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to open new stores in China and the U.S., with allocation based on market conditions [3]. Group 3: Company Overview - Chanson International Holding, founded in 2009, operates 63 stores in China and 3 in New York City, offering packaged bakery products, made-in-store pastries, and beverages [7]. - The company focuses on creating healthy, nutritious, and ready-to-eat food through advanced facilities and aims to provide a comfortable store environment for customers [7].

Core Viewpoint - Chanson International Holding has announced a public offering expected to generate approximately $8 million in gross proceeds to fund the expansion of its store network in China and the U.S. [1][3] Group 1: Offering Details - The offering consists of 16,000,000 units priced at $0.50 per unit, each unit includes one Class A ordinary share or a pre-funded warrant, along with Series A and Series B warrants [2] - Each Series A and Series B warrant has an exercise price of $0.525 per Class A ordinary share and can be exercised starting from the issuance date until two and a half years later [2] Group 2: Use of Proceeds - The net proceeds from the offering will be allocated to opening new stores in China and the U.S., with specific allocations depending on market conditions [3] Group 3: Company Overview - Chanson International Holding, founded in 2009, operates bakery, seasonal, and beverage products through its chain stores in China and the U.S., with 63 stores in China and 3 in New York City [5] - The company focuses on providing healthy, nutritious, and ready-to-eat food, utilizing advanced facilities and in-depth industry research to meet customer demand [5]

Core Viewpoint - Chanson International Holding is making significant strides in promoting inclusive hiring and supporting regional development in Xinjiang, China, aligning its business operations with broader goals of common prosperity [1][5]. Group 1: Inclusive Development Initiatives - Chanson has implemented various initiatives to support minority talent, including targeted outreach, inclusive hiring practices, and mentorship programs, facilitating the transition of minorities from traditional agricultural roles to skilled positions in modern industry [2]. - The company has established a support program for former employees wishing to return to their hometowns to start businesses, successfully aiding 23 former employees in launching their own ventures [2]. Group 2: Employee Well-Being - Chanson's commitment to employee well-being includes comprehensive support systems that respect cultural identities and daily needs, such as free dormitories or housing subsidies, culturally appropriate meals, paid annual leave with travel reimbursement, and inclusive celebrations [3]. Group 3: Community Engagement - The company partners with local agricultural producers and handicraft cooperatives to enhance livelihoods within the local supply chain, contributing to economic resilience and shared prosperity in surrounding rural areas [4]. Group 4: Strategic Vision - The Chairman of the Board emphasized that empowering diversity and inclusion is a core aspect of Chanson's long-term strategic plan, aiming to create equal opportunities and foster a more inclusive and resilient future [5]. Group 5: Company Overview - Founded in 2009, Chanson International Holding operates bakery, seasonal, and beverage product stores in China and the United States, managing 63 stores in China and 3 in New York City, while also selling through digital platforms [6].

Core Viewpoint - Chanson International Holding has introduced an optimized blend of natural sweeteners aimed at reducing sugar content in its bakery and beverage products, aligning with the global trend towards healthier, lower-sugar options without sacrificing taste or texture [1][4]. Product Innovation - The new formulation combines Brazzein, a sweet-tasting protein, with Mogroside V from monk fruit, resulting in a better sweetness profile, improved aftertaste control, and enhanced heat stability, while containing zero calories [2]. - This improved formula has been applied to Chanson's products under its flagship coffee brand, Soul ● Song, which has received positive consumer feedback since its launch in July 2024 [3]. Market Expansion Plans - Chanson plans to expand the reformulated products to three stores in New York and over 50 stores in Xinjiang by late 2025, reflecting strong consumer interest in the new sweetener blend [3]. - The company aims to extend its natural sweetener blends into dairy and functional foods and explore partnerships to reach broader markets in North America and Europe [4]. Financial Outlook - Chanson anticipates that these health-focused offerings will contribute significantly to its annual revenue, with a long-term target of potentially exceeding a 30% contribution [4]. Company Overview - Founded in 2009, Chanson International Holding operates bakery and beverage stores in China and the United States, managing 63 stores in China and 3 in New York City, while also selling through digital platforms [5].

Core Viewpoint - Chanson International Holding reported moderate revenue growth in fiscal year 2024, driven primarily by strong performance in its bakery product segment in China, despite challenges in the macroeconomic environment [2][4]. Financial Performance - Total revenue increased by 5.7% to $18.2 million in fiscal year 2024, up from $17.3 million in fiscal year 2023 [4][6]. - Revenue from China Stores rose by 12.8% to $16.1 million, with bakery products contributing significantly to this growth [7]. - Revenue from bakery products in China increased by 18.0% to $14.8 million, attributed to the opening of 15 new bakery stores [7]. - Revenue from United States Stores decreased by 29.1% to $2.1 million, primarily due to declines in beverage products and eat-in services [12]. Profitability Metrics - Gross profit decreased to $7.2 million in fiscal year 2024 from $8.1 million in fiscal year 2023, with a gross margin of 39.5% compared to 47.2% in the previous year [6][8]. - Net income rose significantly to $0.76 million from $0.03 million in fiscal year 2023, with earnings per share increasing to $0.05 from $0.003 [10][14]. Operating Expenses - Operating expenses decreased to $7.7 million in fiscal year 2024 from $8.8 million in fiscal year 2023, reflecting cost management efforts [9][13]. Cash Flow and Balance Sheet - Cash and cash equivalents increased to $12.1 million as of December 31, 2024, compared to $1.5 million at the end of 2023 [15]. - Net cash provided by operating activities was $3.5 million in fiscal year 2024, a turnaround from net cash used in the previous year [16]. Strategic Initiatives - The company has diversified its product offerings by introducing freshly brewed coffee, responding to evolving consumer trends [3]. - Strategic initiatives, including targeted promotions for price-sensitive consumers, have contributed to resilient revenue growth and market share expansion [3].

Revenue and Financial Performance - UFG's revenue accounted for 62%, 54%, and 39% of total revenue for the years ended December 31, 2024, 2023, and 2022, respectively[39]. - For the year ended December 31, 2024, consolidated total revenue reached $18,227,537, an increase from $17,252,662 in 2023, representing a growth of approximately 5.6%[66]. - The cost of revenue for 2024 was $11,033,219, compared to $9,105,337 in 2023, indicating an increase of about 21.1%[66]. - Net income for 2024 was reported at $756,285, a significant recovery from a net loss of $629,740 in 2023[66]. - Income from VIEs for 2024 amounted to $2,060,482, up from $1,765,358 in 2023, reflecting a growth of approximately 16.7%[66]. - Comprehensive income for 2024 was $472,096, a recovery from a comprehensive loss of $97,190 in 2023[66]. - The company has not distributed any earnings or settled amounts owed under the VIE Agreements as of the date of the annual report[55]. VIE Structure and Agreements - Xinjiang United Family controls 52 VIEs through VIE Agreements, consolidating their financial results under U.S. GAAP[38]. - The VIE structure provides contractual exposure to foreign investment in China-based companies, presenting unique risks to investors[27]. - The VIE Agreements allow the company to consolidate the financial results of the VIEs in its financial statements under U.S. GAAP[53]. - The Exclusive Service Agreement allows Xinjiang United Family to collect a service fee equal to the net profit after tax of each UFG Entity[40]. - The term of the Exclusive Service Agreement is 10 years, with automatic renewal unless terminated by Xinjiang United Family[41]. - Under the Call Option Agreement, Xinjiang United Family has the exclusive option to require the UFG Operator to transfer all or part of its assets in the UFG Entity at any time[46]. - The company’s ability to pay dividends in the future will depend on receiving funds from its PRC subsidiary and VIEs in accordance with the VIE Agreements[61]. Risks and Regulatory Environment - The company is subject to risks related to the VIE structure, including potential changes in PRC laws that could affect the validity and enforcement of the VIE Agreements[54]. - The PRC government has implemented measures that could affect the company's operations, including potential changes in tax regulations and capital investment controls[91]. - The amended PRC Company Law, effective July 1, 2024, introduces stricter capital contribution requirements, which may impact the company's financial obligations[93]. - The company's reliance on transfer pricing arrangements with UFG may lead to adverse tax consequences if deemed non-compliant by PRC tax authorities[81]. - The Chinese government has significant oversight and discretion over the operations of the company's PRC subsidiary and VIEs, which may lead to material changes in operations or the value of Class A Ordinary Shares[97]. - Future government actions could limit the company's ability to offer securities to investors, potentially leading to a significant decline in the value of such securities[101]. Operational Challenges - The company has expanded its store network significantly, with multiple locations under the UFG brand[31]. - The operating entities compete in a highly competitive market, with pressure from both existing and new competitors affecting pricing and market share[152]. - The COVID-19 pandemic has adversely impacted the company's financial condition and operations due to government-imposed restrictions and store closures[154]. - The PRC Stores and the U.S. Stores experienced significant operational disruptions due to COVID-19, with all PRC Stores and the central factory closed from October 5, 2022, to November 30, 2022[155]. - The operating entities rely on a limited number of third-party producers, and disruptions in their operations could delay product delivery and harm financial results[166]. Financial Position and Cash Flow - Total assets as of December 31, 2024, were $41,775,834, compared to $23,603,182 in 2023, showing a substantial increase of about 76.8%[68]. - Total liabilities for 2024 were $23,350,388, a decrease from $25,669,681 in 2023, indicating a reduction of approximately 9.0%[68]. - Cash and cash equivalents as of December 31, 2024, totaled $12,102,763, compared to $17,653,086 in 2023, reflecting a decrease of about 31.4%[68]. - The company reported a net cash used in operating activities of $(1,345,862) for the year ended December 31, 2022, highlighting a trend of cash outflows[70]. - The company relies on dividend payments from its PRC subsidiary to meet cash and financing requirements, with current regulations allowing dividends only from accumulated profits[142]. Corporate Governance and Shareholder Structure - Mr. Gang Li, the Chairman, holds approximately 93.80% of the voting rights due to the dual-class structure, owning 2,700,000 Class A Ordinary Shares (12.48%) and 5,670,000 Class B Ordinary Shares (100%)[218]. - The company is classified as a "controlled company" under Nasdaq rules, which may allow it to follow exemptions from certain corporate governance requirements[220]. - The dual-class structure may lead to negative commentary from shareholder advisory firms, potentially affecting the value of Class A Ordinary Shares[219]. - Future issuances of Class B Ordinary Shares may dilute the holdings of Class A Ordinary Shareholders, adversely affecting their market price[218]. Compliance and Legal Risks - The company has identified a material weakness in internal control over financial reporting, which could affect the accuracy of financial statements and investor confidence[216]. - The company may face securities litigation due to market volatility, which could divert resources and adversely affect its business[226]. - The company faces uncertainties regarding indirect transfers of equity interests in PRC resident enterprises by non-PRC holding companies, which may lead to tax obligations[137]. - The company cannot assure timely completion of necessary registrations or government approvals for future loans or capital contributions to its PRC subsidiary, potentially affecting liquidity and business expansion[130].

Core Viewpoint - Chanson International Holding has received a notification from Nasdaq indicating that it no longer meets the minimum bid price requirement for continued listing, with a compliance period until September 8, 2025, to regain compliance [1][2]. Company Overview - Chanson International Holding, founded in 2009, operates bakery, seasonal, and beverage products through its chain stores in China and the United States, with headquarters in Urumqi, China [4]. - The company manages 46 stores in China and three stores in New York City, offering both packaged and made-in-store bakery products along with extensive beverage options [4]. Compliance and Listing Status - The notification from Nasdaq does not immediately affect the trading of Chanson's Class A ordinary shares, and the company has a 180-day compliance period to meet the listing requirements [2]. - If compliance is not achieved within this period, Chanson may be eligible for an additional 180 days, provided it meets other listing standards and intends to cure the deficiency, potentially through a reverse stock split [2][3]. - The company is currently evaluating options to regain compliance and is committed to making reasonable efforts to meet Nasdaq's continued listing requirements [3].

Financial Performance - Revenue for the six months ended June 30, 2024, was $7,542,682, a decrease of 14.4% compared to $8,811,287 for the same period in 2023[8] - Gross profit for the same period was $3,127,275, down 27.8% from $4,332,571 in 2023[8] - Net income for the six months ended June 30, 2024, was $23,412, compared to $284,760 in 2023, reflecting a significant decline[8] - For the six months ended June 30, 2024, net revenue was $4,246,441, a decrease of 6.9% compared to $4,562,762 for the same period in 2023[39] - Net income for the six months ended June 30, 2024, was $552,045, down 54.5% from $1,213,299 in the prior year[39] - Total income before provision for income taxes for the six months ended June 30, 2024, was $88,277, a decrease from $287,640 in 2023[162] Assets and Liabilities - Total assets as of June 30, 2024, increased to $38,723,717 from $38,434,296 as of December 31, 2023[6] - Total liabilities rose to $26,669,742 as of June 30, 2024, compared to $26,419,940 at the end of 2023[6] - As of June 30, 2024, total assets amounted to $15,685,520, an increase of 17.0% from $13,403,468 as of December 31, 2023[41] - Current liabilities increased to $9,092,890 as of June 30, 2024, compared to $7,730,323 as of December 31, 2023, reflecting a rise of 17.6%[41] - The Company had total assets of $21,951,991 as of June 30, 2024, down from $25,479,568 as of December 31, 2023[189] Cash Flow and Liquidity - Cash and cash equivalents increased to $4,107,830 from $1,481,302, indicating improved liquidity[5] - Cash provided by operating activities increased to $806,144 for the period ending June 30, 2024, compared to $610,154 for the same period in 2023, reflecting a growth of about 32.2%[17] - Total cash and cash equivalents increased by $2.6 million to $4.1 million as of June 30, 2024, compared to $1.5 million as of December 31, 2023[110] - The company has not experienced any losses in its cash accounts and believes the risk of bank failure is remote[100] Operating Expenses and Cost Management - Operating expenses decreased to $3,687,404 for the six months ended June 30, 2024, down from $4,218,711 in 2023, showing cost management efforts[8] - The company incurred total operating lease expenses of $1,708,117 for the six months ended June 30, 2024, compared to $1,734,513 for the same period in 2023, a decrease of 1.5%[131] Shareholder and Equity Information - The balance of Class A ordinary shares as of June 30, 2024, was $6,755,319, compared to $6,450,000 as of June 30, 2023, showing an increase of approximately 4.7%[15] - The Company has 44,000,000 authorized Class A Ordinary Shares, with 6,755,319 shares issued and outstanding as of June 30, 2024[178] Taxation and Compliance - The company's subsidiary in the PRC was subject to a 25% income tax rate for the six months ended June 30, 2024, compared to a reduced rate of 5% for the same period in 2023[160] - The company did not generate any assessable profits in Hong Kong for the six months ended June 30, 2024, and thus made no provision for Hong Kong profits tax[157] - The company's deferred tax assets were fully offset by a valuation allowance of $3,182,120 as of June 30, 2024, indicating uncertainty in future earnings[169] Future Outlook and Strategic Initiatives - The company continues to focus on product development and market expansion strategies to enhance future growth prospects[8] - Management anticipates revenue and net income to increase in the second half of fiscal year 2024 compared to the same period last year[111] - The company expects to open five additional stores in the PRC in fiscal year 2024[111] Other Financial Metrics - The company recorded interest income of $44,877 for the six months ended June 30, 2024, compared to $21,452 for the same period in 2023, an increase of 109.5%[123] - Investment income from long-term debt investment was $359,014 for the six months ended June 30, 2024, compared to $171,616 for the same period in 2023, an increase of 109.5%[142]

Core Viewpoint - Chanson International Holding reported a decline in revenue for the first half of fiscal year 2024, but maintained gross margins above 40% through cost control and operational efficiency measures. The company remains optimistic about its long-term growth strategy, focusing on expansion in both the United States and China [2][3]. Financial Summary - Total revenue for the first half of fiscal year 2024 was $7.5 million, a decrease of 14.4% from $8.8 million in the same period last year [3][4]. - Gross profit was $3.1 million, down 27.8% from $4.3 million year-over-year, with a gross margin of 41.5%, down from 49.2% [3][8]. - Net income was $0.02 million, compared to $0.3 million for the same period last year, resulting in basic and diluted earnings per share of $0.002, down from $0.027 [3][10][11]. Revenue Breakdown China Stores - Revenue from China Stores was $6.5 million, a decrease of 7.3% from $7.0 million last year, primarily due to lower sales of bakery products and other items [5]. - Bakery product revenue was $5.9 million, down 7.3% from $6.4 million, attributed to reduced consumer spending and economic pressures [5]. - Revenue from seasonal products decreased by 16.4% to $0.36 million, while beverage product revenue increased by 14.8% to $0.22 million, driven by a focus on coffee beverages [5]. United States Stores - Revenue from U.S. Stores was $1.0 million, a significant decrease of 42.2% from $1.8 million last year, mainly due to lower beverage sales and eat-in services [6]. - Bakery product revenue remained stable at $0.24 million, with a slight increase of 2.6% from $0.23 million, while beverage product revenue fell by 37.2% to $0.6 million [6][7]. Operating Expenses - Total operating expenses were $3.7 million, down from $4.2 million year-over-year. Selling expenses decreased by 8.7% to $2.2 million, while general and administrative expenses fell by 17.9% to $1.5 million [9]. Cash Flow and Balance Sheet - As of June 30, 2024, the company had cash reserves of $4.1 million, up from $1.5 million at the end of 2023 [11]. - Net cash provided by operating activities was $0.8 million, compared to $0.6 million for the same period last year [12]. - The company reported net cash provided by investing activities of $1.4 million, a significant improvement from net cash used of $11.3 million last year [12].