Chanson International Holding Announces First Half of Fiscal Year 2024 Financial Results

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].