Recent developments include governance changes, capital restructuring, new store openings, and a public offering.

• Chanson International Holding held key shareholder meetings in early 2026, approving governance changes [N1].
• The company opened new stores in Urumqi and Kashgar, enhancing culinary experiences in Xinjiang tourist destinations in mid-2025 [N3].
• In June 2025, the company announced an $8 million best-efforts public offering [N4].
• The company’s shares were noted among premarket gainers and losers in August 2025 [N2].

The company’s expansion of store locations in key tourist destinations in Xinjiang and continued product innovation support revenue growth. The successful completion of an $8 million public offering and share capital restructuring provide financial flexibility. The company’s focus on improving operating efficiency and cost control measures, including inventory management and sales promotions, contribute to gross margin improvements. The controlling shareholder’s financial support enhances liquidity stability. The company’s presence in both China and the U.S. markets offers geographic diversification potential.

The company faces risks from economic downturns and cautious consumer spending, which have led to slight decreases in bakery product revenue and shifts toward online consumption. Operating expenses, particularly SG&A, have increased significantly, resulting in operating losses. Geographic concentration in Xinjiang and New York City exposes the company to regional risks. Regulatory restrictions on asset transfers from PRC subsidiaries may constrain liquidity. Competition from online brands and other bakery operators may pressure pricing and margins. Uncertainties in tax residency status and related tax implications could affect financial outcomes.

Chanson International Holding’s moat is supported by its established brand presence in the Xinjiang region of China and select U.S. markets, with a network of 66 stores as of 2025. The company’s customer loyalty program and diversified product offerings, including bakery and seasonal products, contribute to customer retention. However, the company faces competition from online and offline bakery brands, economic pressures affecting consumer spending, and geographic concentration risks. Its ability to manage costs, maintain product quality, and expand store presence are key factors in sustaining its competitive position.

• Economic and Consumer Spending Risks: The company’s revenue is sensitive to economic conditions and consumer confidence, particularly in China, where slower post-COVID-19 recovery and cautious spending have impacted sales.
• Geographic Concentration: Operations are concentrated in Xinjiang, China, and New York City, exposing the company to regional risks including economic, political, and competitive factors.
• Regulatory and Tax Risks: Uncertainties regarding PRC tax residency status and related withholding taxes could have adverse financial effects. PRC regulations restrict asset transfers from subsidiaries to the holding company, affecting liquidity.
• Competitive Pressures: The company faces competition from online and offline bakery brands, which may impact pricing, market share, and margins.
• Liquidity and Capital Structure: The company has a current ratio below 1.0 and negative working capital, with reliance on shareholder support and equity financing to meet capital needs.

• Chanson International Holding operates bakery and related food product stores primarily in China (Xinjiang region) and the U.S. (New York City).
• As of December 31, 2025, the company managed 63 stores in China and 3 stores in the U.S.
• Revenue for the fiscal year ended December 31, 2025 was approximately $18.27 million, with net income of about $187,540 and basic/diluted EPS of $0.03 per share.
• The company’s gross margin was 45.0% for 2025, with gross profit of $8.22 million.
• Operating expenses increased significantly in 2025, with selling expenses at $6.26 million and general and administrative expenses at $3.84 million, leading to an operating loss of $1.89 million.
• Other income and interest income from long-term debt investments contributed positively, totaling about $2.15 million in 2025.
• Liquidity as of December 31, 2025 included cash and cash equivalents of approximately $8.64 million, current assets of $12.19 million, and current liabilities of $15.11 million, resulting in a current ratio of 0.81 and a cash ratio of 0.57.
• The company completed a share capital reduction and reorganization in early 2026, approved by the Cayman Islands Registrar, adjusting par value and authorized shares.
• Recent business developments include opening new stores in Urumqi and Kashgar, Xinjiang, enhancing culinary experiences in tourist destinations.
• The company announced an $8 million best-efforts public offering in June 2025.
• Key shareholder meetings were held in early 2026, approving governance changes.
• The company’s revenue is influenced by store expansion, comparable store sales, product mix, and market competition, with noted challenges from economic conditions and consumer spending patterns.
• The company operates a customer loyalty program with membership cards and cash vouchers, recognized as deferred revenue until redemption.
• The company’s main operations and financials are denominated in RMB, with currency exchange risks noted due to conversion to USD for U.S. trading.
• The company’s PRC subsidiary and VIEs face restrictions on transferring net assets to the holding company, affecting liquidity management.
• The company’s financial statements are prepared under U.S. GAAP and filed as Form 20-F with the SEC.
• The company’s controlling shareholder has pledged financial support for at least 12 months from the 2025 financial statement issuance.
• The company’s business faces risks from competition, economic conditions, pricing pressures, and regulatory environment in China and the U.S.