Chanson International Holding Announces Fiscal Year 2025 Financial Results

URUMQI, China, April 20, 2026 /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, 2025.

Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "In fiscal year 2025, we delivered revenue of approximately $18.3 million and improved profitability, with gross profit increasing by 14.2% year over year and gross margin expanding to 45.0%. This performance reflects the impact of our product marketing and cost control measures, as well as improved inventory management through enhanced customer traffic forecasting.

"Looking ahead, we remain focused on driving growth and improving profitability. We plan to continue optimizing marketing initiatives, strengthening our product innovation capabilities with a focus on healthy and nutritious products, and enhancing customer engagement through both in-store experiences and online channels. We also expect to further improve margins by maintaining strict cost discipline and leveraging data-driven inventory and demand forecasting. We believe our strategic initiatives position us well to capture growth opportunities and create long-term value for our shareholders."

Fiscal Year 2025 Financial Highlights

Fiscal Year 2025 Financial Results

Revenue

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

United States Stores

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.

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: [email protected]

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: [email protected]

CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31,

2025

2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

8,644,357

12,102,763

Accounts receivable

1,738,052

991,467

Inventories

830,597

738,773

Long term loan to a third-party, current

—

2,000,000

Prepaid expenses and other current assets

972,787

2,595,417

12,185,793

18,428,420

NON-CURRENT ASSETS:

Operating lease right-of-use assets

8,297,961

11,021,615

Property and equipment, net

7,063,992

4,444,473

Intangible assets, net

226,250

262,500

Long term security deposits

776,419

944,170

Long term debt investments

53,138,801

6,359,014

Long term prepaid expenses

296,575

315,642

69,799,998

23,347,414

TOTAL ASSETS

81,985,791

41,775,834

LIABILITIES

CURRENT LIABILITIES:

Short-term bank loans

428,844

1,507,159

Current portion of long-term bank loans

371,665

—

Accounts payable

3,779,261

2,127,740

Due to a related party

6,753

772,489

Taxes payable

249,300

48,712

Deferred revenue

7,670,555

6,697,964

Operating lease liabilities, current

1,777,697

2,325,390

Other current liabilities

823,821

662,963

15,107,896

14,142,417

NON-CURRENT LIABILITIES

Operating lease liabilities, non-current

6,021,153

9,207,971

Long-term bank loans

4,645,810

—

10,666,963

9,207,971

TOTAL LIABILITIES

25,774,859

23,350,388

COMMITMENTS AND CONTINGENCIES (Note 15)

SHAREHOLDERS' EQUITY

Ordinary shares, $0.0001 par value, 4,125,000,000 shares authorized; 38,978,780

shares and 341,247 shares issued and outstanding as of December 31, 2025 and

2024, respectively: *

Class A ordinary share, $0.0001 par value, 4,110,000,000 shares authorized;

38,907,905 shares and 270,372 shares issued and outstanding as of December 31,

2025 and 2024, respectively

3,890

Class B ordinary share, $0.0001 par value, 15,000,000 shares authorized; 70,875

shares issued and outstanding as of December 31, 2025 and 2024, respectively

Additional paid-in capital

54,658,128

17,751,857

Statutory reserve

740,816

661,924

Retained earnings

499,986

391,338

Accumulated other comprehensive income (loss)

308,105

(379,707)

TOTAL SHAREHOLDERS' EQUITY

56,210,932

18,425,446

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

81,985,791

41,775,834

* Retrospectively restated for effect of the reverse split on August 18, 2025 and the Share Capital Reduction and

Reorganization on March 13, 2026

CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Years Ended December 31,

2025

2024

2023

REVENUE

18,268,894

18,227,537

17,252,662

COST OF REVENUE

10,050,891

11,033,219

9,105,337

GROSS PROFIT

8,218,003

7,194,318

8,147,325

OPERATING EXPENSES

Selling expenses

6,261,580

4,757,279

4,882,958

General and administrative expenses

3,843,548

2,966,659

3,874,868

Total operating expenses

10,105,128

7,723,938

8,757,826

LOSS FROM OPERATIONS

(1,887,125)

(529,620)

(610,501)

OTHER (EXPENSE) INCOME

Interest (expense) income, net

(188,327)

(50,928)

35,505

Other income, net

871,967

687,492

193,425

Interest income from long term debt investments

1,465,180

723,945

534,575

Total other income, net

2,148,820

1,360,509

763,505

PROFIT BEFORE INCOME TAX EXPENSE

261,695

830,889

153,004

INCOME TAX EXPENSE

(74,155)

(74,604)

(119,416)

NET INCOME

187,540

756,285

33,588

Foreign currency translation gain (loss)

687,812

(284,189)

(130,778)

TOTAL COMPREHENSIVE INCOME (LOSS)

875,352

472,096

(97,190)

Earnings per ordinary share - basic and diluted

0.03

3.68

0.23

Weighted average shares - basic and diluted *

5,369,346

205,296

144,217

* Retrospectively restated for effect of the reverse split on August 18, 2025.

CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31,

2025

2024

2023

Cash flows from operating activities:

Net income

187,540

756,285

33,588

Adjustments to reconcile net income to net cash provided by (used

in) operating activities:

Amortization of operating lease right-of-use assets

1,872,139

2,639,094

2,628,985

Depreciation and amortization

889,722

823,869

831,820

Write off of bad debts

500,000

Loss (gain) on disposal of property and equipment

78,845

(152,517)

4,982

Impairment loss on property and equipment

272,350

Accrued interest income from long term debt investment

(1,465,180)

(723,945)

(534,575)

Interest income from loan to a third-party

(90,986)

(66,822)

Changes in operating assets and liabilities:

Accounts receivable

(686,449)

959,859

(766,760)

Inventories

(62,191)

(32,001)

(45,821)

Prepaid expenses and other current assets

1,665,322

2,552,891

(3,573,002)

Long term security deposits

184,296

(58,209)

57,185

Long term prepaid expenses

31,637

(180,281)

(34,010)

Accounts payable

1,235,783

265,315

530,195

Taxes payable

198,040

(46,790)

(31,943)

Deferred revenue

665,495

(179,643)

307,169

Other current liabilities

135,994

(25,902)

(292,138)

Operating lease liabilities

(2,566,126)

(2,969,001)

(2,275,056)

Net cash provided by (used in) operating activities

2,864,867

3,538,038

(2,953,853)

Cash flows from investing activities:

Purchase of property and equipment

(2,396,274)

(583,313)

(773,964)

Purchase of intangible assets

(150,000)

Proceeds from disposal of property and equipment

35,562

444

Payment made for long term debt investments

(46,126,988)

(6,000,000)

Interest income received from long term debt investment

1,203,810

899,507

Advance of loans to third parties

(3,900,000)

Repayment from loans to third parties

1,500,000

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 (used in) provided by investing activities

(45,819,452)

1,909,460

(10,463,416)

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 the Equity Security Units, net of issuance costs

6,910,134

Proceeds from sales of ordinary shares, net of issuance costs

30,000,000

5,938,994

Proceeds from short-term bank loans

417,388

2,225,715

2,685,588

Repayments of short-term bank loans

(1,530,421)

(3,338,573)

(424,040)

Proceeds from long-term bank loans

5,036,477

Repayments of long-term bank loans

(153,043)

(Payments made to) advances received from a related party

(1,595,404)

524,610

(1,892,423)

Payments made for deferred offering costs

(340,469)

Net cash provided by financing activities

39,085,131

5,350,746

12,059,025

Effect of exchange rate fluctuation on cash and cash equivalents

411,048

(176,783)

(75,924)

Net (decrease) increase in cash and cash equivalents

(3,458,406)

10,621,461

(1,434,168)

Cash and cash equivalents, beginning of year

12,102,763

1,481,302

2,915,470

Cash and cash equivalents, end of year

8,644,357

12,102,763

1,481,302

Supplemental cash flow information

Cash paid for income taxes

29,053

45,128

92,409

Cash paid for interest

181,157

141,106

32,444

Non-cash operating, investing and financing activities

Property and equipment acquired from a related party through settlement

of amounts due from the related party (non-cash transaction)

962,896

Reduction of right-of-use assets and operating lease obligations due to

early termination or modification of lease agreement

4,208,435

2,519,354

Right of use assets obtained in exchange for operating lease liabilities

3,423,624

2,719,792

1,676,362

Deferred IPO cost offset with additional paid-in capital

1,095,872

Intangible assets acquired by prepayment

140,000

SOURCE Chanson International Holding