Chanson International Holding Announces Fiscal Year 2023 Financial Results
Chanson International Holding (Nasdaq: CHSN) announced its fiscal year 2023 financial results, reporting a 30.0% increase in total revenue to $17.3 million, a 33.5% rise in gross profit to $8.1 million, and a net income of $0.03 million. The company plans to focus on product portfolio development, brand awareness, and customer base expansion in 2024. Despite revenue growth in China Stores, revenue declined in United States Stores due to increased competition. Basic and diluted earnings per share improved to $0.003 from a loss of $0.14 in fiscal year 2022.
30.0% increase in total revenue to $17.3 million in fiscal year 2023.
33.5% rise in gross profit to $8.1 million in fiscal year 2023.
Plans to focus on product portfolio development, brand awareness, and customer base expansion in 2024.
Improved basic and diluted earnings per share to $0.003 from a loss of $0.14 in fiscal year 2022.
Revenue decline in United States Stores due to increased competition.
Net cash used in operating activities of $3.0 million in fiscal year 2023 compared to net cash provided in 2022.
Net cash used in investing activities increased to $10.5 million in fiscal year 2023.
Insights
Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "In 2023, we witnessed growing demand, driven by positive consumer sentiment. This led to a
Fiscal Year 2023 Financial Highlights
- Total revenue was
$17.3 million 30.0% from$13.3 million - Gross profit was
$8.1 million 33.5% from$6.1 million - Gross margin was
47.2% , increased from46.0% in fiscal year 2022. - Net income was
$0.03 million $1.3 million - Basic and diluted earnings per share were
$0.00 3$0.14
Fiscal Year 2023 Financial Results
Revenue
Total revenue increased by
China Stores
- Revenue from China Stores increased by
50.8% to$14.3 million $9.5 million - Revenue from bakery products increased by
44.0% to$12.5 million $8.7 million - Revenue from other products increased by
126.7% to$1.8 million $0.8 million 89.1% to$1.3 million $0.7 million 400.4% to$0.5 million $0.1 million
United States Stores
- Revenue from United States Stores decreased by
22.3% to$2.9 million $3.8 million - Revenue from bakery products decreased by
27.4% to$0.4 million $0.6 million 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 - Revenue from beverage products decreased by
16.9% to$1.7 million $2.0 million - Revenue from eat-in services decreased by
29.3% to$0.8 million $1.1 million $345,000 $41,000
Gross Profit and Gross Margin
Gross profit increased by
Operating Expenses
Operating expenses were
- Selling expenses increased by
32.0% , to$4.9 million $3.7 million $1.3 million $0.15 million 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 - General and administrative expenses increased by
0.8% , to$3.9 million $3.8 million $0.4 million 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
Net Income (Loss)
Net income in fiscal year 2023 was
Basic and Diluted Earnings (Loss) per Share
Basic and diluted earnings per share in fiscal year 2023 was
Balance Sheet
As of December 31, 2023, the Company had cash and cash equivalents of
Cash Flow
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About Chanson International Holding
Founded in 2009, Chanson International Holding is a provider of bakery, seasonal, and beverage products through its chain stores in
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
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 | 1,919,189 | 1,424,766 | ||||||
Due to a related party | 48,042 | 1,798,605 | ||||||
Taxes payable | 96,176 | 130,727 | ||||||
Deferred revenue | 7,085,696 | 6,958,160 | ||||||
Operating lease liabilities, current | 2,198,192 | 1,770,398 | ||||||
Other current liabilities | 697,702 | 1,014,452 | ||||||
14,728,689 | 13,532,067 | |||||||
NON-CURRENT LIABILITIES | ||||||||
Operating lease liabilities, non-current | 11,691,251 | 12,620,070 | ||||||
11,691,251 | 12,620,070 | |||||||
TOTAL LIABILITIES | 26,419,940 | 26,152,137 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, | ||||||||
Class A ordinary share, | 6,485 | 3,060 | ||||||
Class B ordinary share, | 5,940 | 5,940 | ||||||
Additional paid-in capital | 11,800,472 | 869,400 | ||||||
Statutory reserve | 447,231 | 447,231 | ||||||
Accumulated deficit | (150,254) | (183,842) | ||||||
Accumulated other comprehensive (loss) income | (95,518) | 35,260 | ||||||
TOTAL SHAREHOLDERS' EQUITY | 12,014,356 | 1,177,049 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 38,434,296 | $ | 27,329,186 | ||||
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
REVENUE | $ | 17,252,662 | $ | 13,272,075 | $ | 14,690,295 | ||||||
COST OF REVENUE | 9,105,337 | 7,169,404 | 7,759,872 | |||||||||
GROSS PROFIT | 8,147,325 | 6,102,671 | 6,930,423 | |||||||||
OPERATING EXPENSES | ||||||||||||
Selling expenses | 4,882,958 | 3,697,909 | 4,126,126 | |||||||||
General and administrative expenses | 3,874,868 | 3,842,787 | 3,249,181 | |||||||||
Total operating expenses | 8,757,826 | 7,540,696 | 7,375,307 | |||||||||
LOSS FROM OPERATIONS | (610,501) | (1,438,025) | (444,884) | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest income (expense), net | 35,505 | (35,457) | (98,033) | |||||||||
Other income, net | 193,425 | 194,824 | 1,065,963 | |||||||||
Interest income from long term debt investment | 534,575 | - | - | |||||||||
Total other income, net | 763,505 | 159,367 | 967,930 | |||||||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 153,004 | (1,278,658) | 523,046 | |||||||||
INCOME TAX EXPENSE | (119,416) | (9,547) | (16,277) | |||||||||
NET INCOME (LOSS) | 33,588 | (1,288,205) | 506,769 | |||||||||
Foreign currency translation (loss) income | (130,778) | (369,705) | 88,952 | |||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | (97,190) | $ | (1,657,910) | $ | 595,721 | ||||||
Earnings (Loss) per ordinary share - basic and diluted | $ | 0.003 | $ | (0.14) | $ | 0.06 | ||||||
Weighted average shares - basic and diluted | 11,537,373 | 9,000,000 | 9,000,000 | |||||||||
CHANSON INTERNATIONAL HOLDING AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 33,588 | $ | (1,288,205) | $ | 506,769 | ||||||
Adjustments to reconcile net income to net cash (used in) | ||||||||||||
Amortization of operating lease right-of-use assets | 2,628,985 | 2,533,074 | 2,226,128 | |||||||||
Depreciation | 831,820 | 701,461 | 605,253 | |||||||||
Gain on forgiveness of loan under Paycheck Protection Program | - | - | (502,298) | |||||||||
Loss on disposal of property and equipment | 4,982 | - | 27,325 | |||||||||
Impairment loss on property and equipment | 272,350 | - | - | |||||||||
Interest income from long term debt investment | (534,575) | - | - | |||||||||
Interest income from loan to a third-party | (66,822) | - | - | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (766,760) | (215,847) | (397,872) | |||||||||
Inventories | (45,821) | (206,264) | (46,384) | |||||||||
Prepaid expenses and other current assets | (3,573,002) | (430,717) | (175,630) | |||||||||
Long term security deposits | 57,185 | 84,374 | (236,020) | |||||||||
Long term prepaid expenses | (34,010) | (26,504) | 38,476 | |||||||||
Accounts payable | 530,195 | 247,015 | 325,803 | |||||||||
Taxes payable | (31,943) | 103,212 | (26,347) | |||||||||
Deferred revenue | 307,169 | 1,411,004 | 1,252,776 | |||||||||
Other current liabilities | (292,138) | (433,848) | 98,362 | |||||||||
Operating lease liabilities | (2,275,056) | (1,927,407) | (1,918,095) | |||||||||
Net cash (used in) provided by operating activities | (2,953,853) | 551,348 | 1,778,246 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property and equipment | (773,964) | (860,034) | (2,038,054) | |||||||||
Purchase of intangible assets | (150,000) | - | - | |||||||||
Proceeds from disposal property and equipment | 444 | - | 7,133 | |||||||||
Payment made for long term debt investment | (6,000,000) | - | - | |||||||||
Advance of loans to third parties | (3,900,000) | - | (1,550,628) | |||||||||
Repayment from loans to third parties | 1,150,104 | - | 1,550,628 | |||||||||
Prepayment for the software, equipment and product development | (1,190,000) | - | - | |||||||||
Refund of prepayment for the product development | 400,000 | - | - | |||||||||
Net cash used in investing activities | (10,463,416) | (860,034) | (2,030,921) | |||||||||
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 short-term bank loans | 2,685,588 | 445,831 | 1,903,563 | |||||||||
Repayments of short-term bank loans | (424,040) | (1,474,129) | (2,683,814) | |||||||||
Proceeds from long-term bank loan | - | - | 293,007 | |||||||||
Advances received from (payments made to) a related party | (1,892,423) | 1,076,717 | 572,712 | |||||||||
Payments made for deferred offering costs | (340,469) | (38,490) | (263,708) | |||||||||
Net cash provided by (used in) financing activities | 12,059,025 | 9,929 | (178,240) | |||||||||
Effect of exchange rate fluctuation on cash and cash equivalents | (75,924) | (682,585) | 206,659 | |||||||||
Net decrease in cash and cash equivalents | (1,434,168) | (981,342) | (224,256) | |||||||||
Cash and cash equivalents, beginning of year | 2,915,470 | 3,896,812 | 4,121,068 | |||||||||
Cash and cash equivalents, end of year | $ | 1,481,302 | $ | 2,915,470 | $ | 3,896,812 | ||||||
Supplemental cash flow information | ||||||||||||
Cash paid for income taxes | $ | 92,409 | $ | 5,282 | $ | 9,981 | ||||||
Cash paid for interest | $ | 32,444 | $ | 37,277 | $ | 66,688 | ||||||
Non-cash operating, investing and financing activities | ||||||||||||
Payable for purchase of property and equipment | $ | - | $ | 463,556 | $ | 682,618 | ||||||
Right of use assets obtained in exchange for operating lease liabilities | $ | 1,676,362 | $ | 5,160,825 | $ | 2,420,359 | ||||||
PPP loan forgiveness | $ | - | $ | - | $ | 502,298 | ||||||
Deferred IPO cost offset with additional paid-in capital | $ | 1,095,872 | $ | - | $ | - | ||||||
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SOURCE Chanson International Holding
FAQ
What was the total revenue for Chanson International Holding in fiscal year 2023?
Chanson International Holding reported a total revenue of $17.3 million in fiscal year 2023.
What was the net income for Chanson International Holding in fiscal year 2023?
The net income for Chanson International Holding was $0.03 million in fiscal year 2023.
What is the stock symbol of Chanson International Holding?
The stock symbol of Chanson International Holding is CHSN.
What were the basic and diluted earnings per share in fiscal year 2023?
The basic and diluted earnings per share were $0.003 compared to a loss of $0.14 in fiscal year 2022.
