Chanson International Holding Announces Fiscal Year 2023 Financial Results

• Revenue from China Stores increased by 50.8% to $14.3 million in fiscal year 2023 from $9.5 million in fiscal year 2022. The increase was mainly due to the increased revenue from bakery products as well as from other products.
• Revenue from bakery products increased by 44.0% to $12.5 million in fiscal year 2023 from $8.7 million in fiscal year 2022. The increase was mainly because business operations of the China Stores fully recovered from the COVID-19 pandemic during the year ended December 31, 2023.
• Revenue from other products increased by 126.7% to $1.8 million in fiscal year 2023 from $0.8 million in fiscal year 2022, due to increased revenue from seasonal products and beverage products. Revenue from seasonal products increased by 89.1% to $1.3 million in fiscal year 2023, from $0.7 million in fiscal year 2022, mainly due to increased customer orders of seasonal products. As China Stores upgraded packaging for seasonal products, seasonal products were more appealing to customers. Revenue from beverage products significantly increased by 400.4% to $0.5 million in fiscal year 2023, from $0.1 million in fiscal year 2022, mainly due to increased revenue from freshly brewed coffee products, as China Stores are focusing on expanding the coffee beverages business.

United States Stores

• Revenue from United States Stores decreased by 22.3% to $2.9 million in fiscal year 2023 from $3.8 million in fiscal year 2022. The decrease was mainly due to decreased revenue from beverage products, bakery products, and eat-in services.
• Revenue from bakery products decreased by 27.4% to $0.4 million in fiscal year 2023 from $0.6 million in fiscal year 2022. The decrease was primarily due to increased competition from rivals operating in the same area. After the COVID-19 pandemic, many famous bakery brands opened new stores in New York City, offering customers more choices and resulting in revenue from bakery products of Chanson 23rd Street LLC ("Chanson 23rd Street") and Chanson 355 Greenwich LLC ("Chanson Greenwich") being adversely affected. With the increased competition, Chanson Greenwich closed its business operation and in the second half of fiscal year 2023, which resulted in a decrease in revenue from bakery products. The decrease was partially offset by increased revenue from bakery products of approximately $140,000, generated by Chanson 1293 3rd Ave LLC ("Chanson 3rd Ave") and Chanson 2040 Broadway LLC ("Chanson Broadway"), the new stores opened in March 2023 and July 2023, respectively.
• Revenue from beverage products decreased by 16.9% to $1.7 million in fiscal year 2023, from $2.0 million in fiscal year 2022. 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, 2023, our rivals 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. In addition, the decrease in revenue from beverage products was attributable to the closure of Chanson Greenwich as mentioned above.
• Revenue from eat-in services decreased by 29.3% to $0.8 million in fiscal year 2023, from $1.1 million in fiscal year 2022. The decrease was mainly due to the decreased revenue from Chanson Greenwich of approximately $345,000 as a result of the closure of its business as mentioned above. The decrease in revenue from eat-in services was partially offset by the increased revenue from eat-in services of approximately $41,000, generated by the two newly opened stores, Chanson 3rd Ave and Chanson Broadway.

Gross Profit and Gross Margin

Gross profit increased by 33.5%, to $8.1 million in fiscal year 2023, from $6.1 million in fiscal year 2022. Gross margin remained relatively stable with a slight increase by 1.2 percentage points to 47.2% in fiscal year 2023 from 46.0% in fiscal year 2022.

Operating Expenses

Operating expenses were $8.8 million in fiscal year 2023, compared to $7.5 million in fiscal year 2022.

• Selling expenses increased by 32.0%, to $4.9 million in fiscal year 2023, from $3.7 million in fiscal year 2022. The increase was primarily due to the increase in selling expenses of $1.3 million from China Stores, partially offset by the decrease of $0.15 million from the United States Stores. The increase in selling expenses from China Stores was mainly because the business operations in China fully recovered from the negative impact of the COVID-19 pandemic. The increase was also due to the opening of new China Stores in the year ended December 31, 2023. The decrease in selling expenses from the United States Stores was mainly attributable to the increased lease concession of $0.13 million received by Chanson 23rd Street and Chanson Greenwich in the year ended December 31, 2023.
• General and administrative expenses increased by 0.8%, to $3.9 million in fiscal year 2023 from $3.8 million in fiscal year 2022. The increase was primarily due to the increase in general and administrative expenses of $0.4 million incurred by China Stores. The increase in general and administrative expenses from China Stores was primarily because the business operations in China fully recovered from the negative impact of COVID-19 pandemic. The increase was also due to the increased salaries related costs, as more employees were hired for the newly opened stores. The increase was also attributable to the increased consulting and professional service fee as we became a public company upon the completion of initial public offering in the year ended December 31, 2023. The increase was partially offset by the decreased general and administrative expenses of $0.3 million incurred by the United States Stores. The decrease in general and administrative expenses from the United States Stores was primarily due to decreased salary and social security expenses, mainly resulting from optimization of management team of the United States Stores. In addition, the decrease was due to the decreased general and administrative expenses incurred by Chanson Greenwich, as Chanson Greenwich was closed in the second half of fiscal year 2023.

Net Income (Loss)

Net income in fiscal year 2023 was $0.03 million, compared to net loss of $1.3 million in fiscal year 2022.

Basic and Diluted Earnings (Loss) per Share

Basic and diluted earnings per share in fiscal year 2023 was $0.003, compared to basic and diluted loss per share of $0.14 in fiscal year 2022.

Balance Sheet

As of December 31, 2023, the Company had cash and cash equivalents of $1.5 million, compared to $2.9 million as of December 31, 2022.

Cash Flow

Net cash used in operating activities was $3.0 million in fiscal year 2023, compared to net cash provided by operating activities of $0.6 million in fiscal year 2022.

Net cash used in investing activities was $10.5 million in fiscal year 2023, compared to $0.9 million in fiscal year 2022.

Net cash provided by financing activities was $12,059,025 in fiscal year 2023, compared to $9,929 in fiscal year 2022.

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 37 stores in Xinjiang, 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 identify these forward-looking statements by words or phrases 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 Investors 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,
		2023				2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,481,302			$	2,915,470
Accounts receivable			1,995,067				1,260,453
Inventories			723,905				693,506
Deferred offering costs			-				763,611
Prepaid expenses and other current assets			5,134,173				833,238
			9,334,447				6,466,278
NON-CURRENT ASSETS:
Operating lease right-of-use assets			13,059,561				13,921,825
Property and equipment, net			5,462,063				5,871,775
Intangible assets, net			150,000				-
Long term security deposits			894,715				958,320
Prepayment for the software, equipment and product development			790,000				-
Long term debt investment			6,534,575				-
Long term loan to a third-party			2,066,822				-
Long term prepaid expenses			142,113				110,988
			29,099,849				20,862,908
TOTAL ASSETS		$	38,434,296			$	27,329,186
LIABILITIES
CURRENT LIABILITIES:
Short-term bank loans		$	2,683,692			$	434,959
Accounts payable Werbung Mehr Nachrichten zur Chanson International Holding Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:34 - Suneal Sandhu Eilmeldung: Der nächste MicroStrategy? Der Solana-Schachzug dieses Unternehmens ist UMWERFEND 13.12.24 - ARIVA.DE Redaktion Impulse fehlen – S&P 500 fast unverändert (6.052 Pkt.) 13.12.24 - ARIVA.DE Redaktion Broadcom-Aktie heute stark gefragt: Kurs legt deutlich zu (205,6520 €) 1000 EILMELDUNG    Der nächste MicroStrategy? Der Solana-Schachzug dieses Unternehmens ist UMWERFEND weiterlesen» Anzeige wo-site-teaser-box-18830_site-teaser-box_2024-12-14_09%253A00%253A00_2024-12-16_09%253A00%253A59