📰 What This Document Is 📄

This document is a press release (SEC Form 6-K) announcing Chanson International Holding’s financial results for the fiscal year ended December 31, 2025. A 6-K filing is typically used to report material events that happen between quarterly filings. In simple terms, this document tells investors how the company performed over the entire past year and gives a detailed breakdown of the numbers.

👉 This is the definitive source for Chanson’s financial health in 2025, showing both key performance indicators (KPIs) and detailed balance sheet mechanics.

🏢 What The Company Does 🥐

Chanson International Holding is a food retailer specializing in bakery, seasonal, and beverage products. Founded in 2009, the company operates through chain stores and digital platforms in China and the United States. Their mission is to create a comfortable environment while serving fresh, healthy, and nutritious food, often through their dedicated in-store pastry and eat-in services.

• Operational Scale: As of December 31, 2025, the company managed 63 stores in China and three stores in New York City.
• Revenue Streams: The company sells packaged bakery goods, made-in-store pastries, and a range of beverage products.
• Geographic Footprint: Chanson directly operates stores in Xinjiang, China, and New York, United States.

📊 Fiscal Year 2025 Financial Highlights ✨

The financial highlights give readers a quick, at-a-glance summary of the company's major financial changes. While total revenue saw only a minimal increase, management highlighted that improving profitability and cost management were key successes for the year.

• Total Revenue: $18.3 million in FY 2025, up 0.2% from $18.2 million in FY 2024.
  • Why it matters: The near-flat revenue suggests that while the company is active, overall sales growth was extremely challenging across both major markets.
• Gross Profit: $8.2 million in FY 2025, marking a significant increase of 14.2% from $7.2 million in FY 2024.
  • Why it matters: The substantial jump in gross profit is the most positive signal, showing that the cost of goods sold increased slower than sales, indicating better inventory and pricing power.
• Gross Margin: Expanded to 45.0% in FY 2025, up from 39.5% in FY 2024.
  • Why it matters: Gross margin measures how much profit is left after paying for the actual goods sold. An increase means the company is managing its supply chain and cost of goods effectively.
• Net Income & EPS: Net income was $0.2 million in FY 2025, compared to $0.8 million in FY 2024. Basic and diluted Earnings per share (EPS) were $0.03, significantly lower than $3.68 in FY 2024.
  • Why it matters: Despite the profit margin improvements, the overall profit and EPS decreased substantially year-over-year, suggesting rising overhead costs are negatively impacting the bottom line.

🎤 Management's Outlook and Strategy 📈

Management provided an optimistic view, focusing on how past efforts and planned strategies will drive future growth and improve margins. They emphasize a disciplined approach to spending and product development.

• Growth Focus: Mr. Gang Li, Chairman and CEO, stated, "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."
  • Why it matters: This shows a strategic pivot toward high-value, health-conscious products and a balanced focus between physical stores and digital sales.
• Margin Improvement: The CEO also stated the company expects to "further improve margins by maintaining strict cost discipline and leveraging data-driven inventory and demand forecasting."
  • Why it matters: This commitment signals that cost control is a primary strategic goal, aiming to make the profitable use of every dollar spent.

🥐 China Store Revenue Details 🇨🇳

The China operations generated the majority of the company's revenue, but revenue sources were highly mixed. While the overall revenue grew, the traditional bakery product segment saw a decline.

• China Stores Revenue: Increased by 1.3% to $16.4 million in FY 2025 (from $16.1 million in FY 2024).
  • Observation: The increase was driven by various factors, though challenges were also noted.
• Bakery Products: Revenue decreased by 1.1% to $14.6 million in FY 2025 (from $14.8 million in FY 2024).
  • Context: This decline was attributed to the challenging economic environment and shifts in consumer habits, particularly the move from in-store to online consumption.
• Seasonal Products: Revenue increased strongly by 28.5% to $1.7 million in FY 2025 (from $1.3 million in FY 2024).
  • Insight: This significant growth, which includes a 52.8% increase in revenue from seasonal products, suggests the new Product Planning and Promotion Department is effective in capitalizing on high-demand, limited-time offerings.
• Beverage Products: Revenue decreased by $0.1 million, or 35.2%, to $0.2 million in FY 2025.
  • Risk Factor: The filing notes that the opening of low-priced coffee chains in Xinjiang contributed to this decline, indicating increased local competition.

🇺🇸 United States Store Revenue Details 🗽

The US market presented a mixed picture, marked by major operational changes and a significant dip in traditional bakery sales.

• US Stores Revenue: Decreased by 8.4% to $1.9 million in FY 2025 (from $2.1 million in FY 2024).
• Bakery Products: Experienced a severe drop, declining by 50.4% to $0.3 million in FY 2025 (from $0.5 million in FY 2024).
  • Operational Changes: This decline was linked to the suspension of operations at two key locations: Chanson 23rd Street LLC (suspended in April 2025) and Chanson 1293 3rd Ave LLC (suspended in January 2025).
• Beverage Products: Showed robust growth, increasing by 17.6% to $1.5 million in FY 2025 (from $1.3 million in FY 2024).
  • Mitigation: This growth was supported by launching new cocktail products and implementing "performance-enhancing measures" (like extending hours and promotions).
• Eat-in Services: Dropped significantly by 47.6% to $0.2 million in FY 2025 (from $0.3 million in FY 2024$).
  • Reason: This was directly tied to the suspension of business at Chanson 3rd Ave.

💲 Operating Expenses Breakdown 📉

Operating expenses increased markedly in FY 2025 compared to FY 2024. While increased costs are expected when growing, the cost increases here highlight structural changes and increased overhead.

• Total Operating Expenses: Increased to $10.1 million in FY 2025 (from $7.7 million in FY 2024).
• Selling Expenses: Increased by 31.6% to $6.3 million (up from $4.8 million).
  • Causes: This increase is primarily due to opening nine new stores, which led to higher rental, renovation, and electricity expenses, plus hiring additional staff in China Stores.
• General and Administrative (G&A) Expenses: Increased by 29.6% to $3.8 million (up from $3.0 million).
  • Causes: The main drivers were an increase in the allowance for credit losses of $0.5 million and higher audit/legal/professional fees due to the issuance of additional equity securities.

🏛️ Balance Sheet Snapshot (As of December 31) 💰

The balance sheet reveals significant shifts in the company’s assets and liabilities over the year, most notably a sharp decrease in available cash.

• Total Assets: Increased dramatically to $81.99 million in FY 2025 (up from $41.78 million in FY 2024).
  • Key Drivers: This growth was primarily fueled by increases in long-term debt investments ($53.14 million vs. $6.36 million) and Property and Equipment, which rose to $7.06 million.
• Cash and Cash Equivalents: Decreased substantially to $8.64 million in FY 2025 (down from $12.10 million in FY 2024).
  • Implication: This suggests the company spent cash on major investments (investing activities) or debt repayment, outpacing its operational cash generation.
• Liabilities: Total liabilities were $25.77 million in FY 2025, down slightly from $23.35 million in FY 2024.
  • Noteworthy Decrease: The "Current portion of long-term bank loans" was $371,665 in 2025, compared to zero in 2024, indicating a structured repayment of short-term debt.
• Shareholders' Equity: Increased significantly to $56.21 million in FY 2025 (up from $18.43 million in FY 2024).
  • Insight: This substantial jump, despite the lower net income, is largely due to the increases in Additional Paid-in Capital and Retained Earnings, reflecting capital raises or retained profits.

💰 Cash Flow Story (Operations, Investing, & Financing) 💸

The cash flow statements provide the most detailed view of how the cash moved, separating it into three buckets: Operations (running the business), Investing (buying assets), and Financing (dealing with debt/equity).

• Operating Cash Flow (OCF): Net cash provided by operations was $2.86 million in FY 2025 (down from $3.54 million in FY 2024).
  • Observation: Although the company is generating less operational cash, it is still a net positive, confirming the core business can cover its day-to-day running costs.
• Investing Activities (Casting Cash): This was the biggest outflow, using $45.82 million in FY 2025 (compared to providing $1.91 million in FY 2024).
  • Usage: The large negative figure signals massive spending, particularly a payment of $46.13 million for long-term debt investments and substantial expenditures on property and intangible assets.
• Financing Activities: The company provided $39.09 million in FY 2025 (up from $5.35 million in FY 2024).
  • Source: This cash was mainly generated through proceeds from sales of ordinary shares and a large inflow from long-term bank loans. This reveals a major capital raise effort.

💡 Corporate Governance and Reporting Details 📋

The filing included detailed information on the share structure and the accounting adjustments made for investors, which is important context for understanding the main financials.

• Stock Structure: The company has multiple classes of ordinary shares (Class A, Class B, etc.).
  • Key Action: The financials were retrospectively restated for the effect of a reverse split on August 18, 2025, and a Share Capital Reduction on March 13, 2026.
  • Why it matters: These corporate actions affect how the reported earnings per share (EPS) are calculated and can confuse readers who do not account for the restatements.

📞 Contact Information for Investors 🧑‍💼

If readers want follow-up information, the filing provides clear contacts for the Investor Relations Department.

• Chanson International Holding IR Department:
  • Email: [email protected]
• Ascent Investor Relations LLC:
  • Name: Tina Xiao
  • Phone: +1-646-932-7242
  • Email: [email protected]

🧠 The Analogy 🧭

Imagine Chanson is a popular local bakery. In 2024, they relied heavily on cash from selling bread in the physical store (the initial $12.1 million cash stash). In 2025, they took on a huge debt loan and sold new shares (the $39 million cash inflow) to afford massive investments—like buying new equipment and expanding their corporate structure (the $45 million cash outflow). While their immediate bakery sales revenue was relatively flat, they successfully expanded their "corporate self" and secured funding, positioning themselves for bigger growth, even if their operational cash got temporarily drained.

🧩 Final Takeaway ✨

Chanson demonstrated effective cost management, significantly improving its gross profit margin (45.0%), signaling strong operational efficiency. However, the simultaneous massive spending on investments and the resulting decrease in cash reserves suggest the company is in a highly capital-intensive phase of strategic expansion.