#China #financial results #revenue growth #Ürümqi #Chanson

Chanson International Holding's Financial Results for H1 FY 2025

Chanson International Holding, listed on Nasdaq as CHSN, reported its financial results for the first half of fiscal year 2025. Despite facing multiple hurdles, the company demonstrated resilience and adaptability in an ever-evolving market.

Financial Highlights

For the six months ending June 30, 2025, Chanson recorded total revenue of $8.7 million, marking a 15.2% increase from the previous year's $7.5 million. This improvement can be attributed mainly to the performance of the company's stores in China, which saw a notable surge. Gross profit also reflected an upward trend, reaching $3.9 million, translating to a gross margin of 44.5%, compared to 41.5% during the same period in the previous fiscal year.

While Chanson's Chinese operations thrived, the company reported a net loss of $1.0 million, a shift from the net income of $0.02 million reported for the same period the previous year. Basic and diluted loss per share stood at $2.87, contrasting sharply with $0.15 earnings per share from last year.

Store Performance: China vs. USA

China Stores

The performance of Chanson's stores in China was particularly commendable, generating $7.8 million in revenue for the first half of FY 2025, an increase of 19.7% from the prior year's $6.5 million. This boost in revenue is largely a result of the 20.8% growth in bakery product sales, which accounted for $7.2 million. The company opened nineteen new bakery stores since the latter half of FY 2024, significantly enhancing its product offerings.

Revenue from seasonal products, also a strong contributor, increased by 39.0%, driven by corporate group purchases and successful promotional events. Conversely, revenue from beverage sales fell 42.9%, impacted by aggressive competition from new coffee chain outlets in Xinjiang, which offered lower-priced alternatives.

United States Stores

In contrast, revenue from Chanson's U.S. stores declined by 13.2%, totaling $0.9 million compared to $1.0 million in the same period last year. This decrease was influenced by a decline in bakery product sales and a sharp drop in eat-in services due to related closures of several stores. However, beverage sales in the U.S. saw a slight uptick, thanks to the implementation of performance enhancement measures at existing locations.

Strategic Focus for Future Growth

Chanson's Chairman and CEO, Mr. Gang Li, expressed confidence in the company's adaptability and long-term growth strategy. With increased cash reserves as of June 30, 2025, the company is well-positioned to tackle market uncertainties. Key strategies moving forward include enhancing customer outreach, optimizing inventory management, maintaining excellent store conditions, and effectively marketing current and new product offerings.

By emphasizing these strategies, Chanson aims not only to navigate short-term challenges but also to facilitate robust long-term growth, underlining its commitment to building a sustainable and expanding business.

Conclusion

Overall, Chanson International Holding's first half of fiscal year 2025 highlights its resilience amid market challenges. The company remains steadfast in its pursuit of growth through strategic initiatives and unwavering focus on customer satisfaction and operational efficiency. Investors and stakeholders can remain optimistic about the company's potential as it builds on these foundations for future success.