AiXin Life International Reports $2.77 Million Net Loss for Fiscal Year 2024

AiXin Life International, Inc. reported a net loss of $2.77 million for the fiscal year ending December 31, 2024, an increase of 32% from the previous year's loss of $2.09 million. The company's revenue decreased by 6% to $3.82 million, down from $4.09 million in 2023. This decline was attributed to reduced direct sales and pharmacy sales, as well as a significant drop in hotel revenue, which fell by 51% due to the relocation to a new hotel. However, revenue from its subsidiary, Yunnan Runcangsheng, increased by 139% to $1.91 million, reflecting successful marketing efforts and an expanded customer base.

The company experienced a notable shift in its revenue composition, with Runcangsheng now accounting for 50% of total revenues, compared to just 20% in the previous year. Direct sales revenue plummeted by 57% to $504,097, while pharmacy sales decreased by 12% to $822,958. The hotel segment also faced challenges, generating only $585,634 in revenue, down from $1.19 million in 2023. Operating costs and expenses totaled $6.41 million, slightly lower than the previous year's $6.59 million, but the company still reported a loss from operations of $2.59 million, up from $2.50 million in 2023.

Strategically, AiXin Life has focused on expanding its market presence through acquisitions and operational enhancements. The company completed the acquisition of Yunnan Runcangsheng in September 2022, which has bolstered its manufacturing capabilities and product offerings. Additionally, AiXin Life has been actively seeking to expand its pharmacy network and enhance its marketing strategies, including hosting educational events to promote health and wellness products. The company also entered into a new lease for a hotel in Chengdu, which it plans to utilize for marketing events and employee training.

As of December 31, 2024, AiXin Life reported a working capital deficit of $6.02 million and cash and cash equivalents of $62,310, down from $443,758 the previous year. The company has indicated that it will need to raise additional capital to support its operations and growth plans, which may include loans from related parties and potential equity offerings. The management has expressed confidence in its liquidity plan, which aims to generate positive cash flow through cost reductions and higher-margin product sales.

Looking ahead, AiXin Life acknowledges the challenges posed by the competitive landscape of the health and wellness market in China, as well as the need to adapt to changing consumer preferences. The company remains committed to its strategy of providing high-quality health products and enhancing customer engagement through a diversified omni-channel approach. However, the management has cautioned that achieving profitability will depend on successfully implementing its business strategies and navigating the evolving market conditions.