AiXin Life International, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $398,831, down 53% from $851,559 in the same period of 2024. The company's direct sales, pharmacy operations, hotel revenues, and manufacturing segment all experienced substantial decreases. Direct sales revenue fell by 88% to $20,631, pharmacy revenue dropped 85% to $35,966, hotel revenue decreased by 48% to $80,706, and manufacturing sales declined by 10% to $261,528. The overall loss from operations increased to $682,485, compared to a loss of $621,246 in the previous year.
The company's operating costs and expenses also decreased to $1,081,316 from $1,472,805 in 2024, primarily due to reduced sales. However, the loss before income tax rose to $720,887, reflecting a 20% increase in net loss to $721,708 compared to $603,600 in the prior year. The increase in net loss was attributed to decreased sales and reduced other income, despite lower operating costs.
In terms of operational metrics, AiXin Life's customer engagement and product adoption rates have been adversely affected by economic downturns and increased competition from online shopping, which has led to a decline in physical store sales. The company reported a working capital deficit of $6,708,468 as of March 31, 2025, raising concerns about its ability to continue as a going concern. Cash and cash equivalents increased slightly to $63,109 from $62,310 at the end of 2024, primarily due to financing activities.
Strategically, AiXin Life has been focusing on expanding its product offerings and distribution channels, including the acquisition of pharmacies and a hotel. However, the company has faced challenges in executing its liquidity plan, which includes cost reductions and raising cash through loans and potential equity offerings. Management has expressed uncertainty about the successful implementation of this plan, which is critical for meeting its obligations and supporting business development.
Looking ahead, AiXin Life aims to enhance its market position by improving customer engagement and expanding its product line. The company is exploring opportunities in the healthcare market, including potential acquisitions and the development of new products. However, the ongoing economic challenges and competitive landscape pose significant risks to achieving these objectives and maintaining profitability.
About AiXin Life International, Inc.
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