AiXin Life International Reports Increased Net Loss and Revenue Decline for Q3 2024

AiXin Life International, Inc. reported a net loss of $546,186 for the three months ended September 30, 2024, compared to a loss of $438,156 for the same period in 2023. For the nine months ended September 30, 2024, the company experienced a net loss of $1,326,569, an increase from the $1,065,486 loss reported in the prior year. Total revenue for the third quarter was $936,406, down 12% from $1,066,919 in the same quarter of 2023. The decline in revenue was attributed to decreased sales in direct sales, pharmacy, and manufacturing segments, partially offset by a 13% increase in hotel revenue.

The company's financial performance showed a decrease in total revenue for the nine-month period as well, with figures dropping to $3,120,615 from $3,297,689 in 2023, marking a 5% decline. The direct sales segment saw a significant drop of 41%, with revenues falling to $625,132 from $1,064,668. The pharmacy segment also reported a decrease, generating $764,495 compared to $802,118 in the previous year. However, the manufacturing segment, Runcangsheng, reported a substantial increase in revenue, rising to $1,265,565 from $538,494, driven by increased visibility and demand for Chinese herbal products.

Operationally, AiXin Life's total assets increased to $5,648,576 as of September 30, 2024, up from $4,842,358 at the end of 2023. The company reported a working capital deficit of $4,885,121, compared to $4,467,006 at the end of the previous year. The total liabilities also rose to $8,651,256, reflecting an increase in accounts payable and accrued liabilities. The company’s cash and cash equivalents improved to $568,318 from $443,758, primarily due to increased financing activities.

Strategically, AiXin Life has been focusing on expanding its market presence and product offerings. The company operates 26 pharmacies and has made significant acquisitions in the health and nutritional sectors, including the purchase of Runcangsheng, which has enhanced its vertical integration capabilities. Despite the challenges faced in the current economic climate, management is optimistic about future growth opportunities, particularly in the healthcare market in China. The company plans to explore additional acquisitions and product line expansions to strengthen its market position.

Looking ahead, AiXin Life acknowledges the uncertainties posed by global events and economic conditions that could impact its operations. The management has outlined a liquidity plan aimed at achieving positive cash flow through cost reductions and higher-margin product sales. However, the company has expressed concerns regarding its ability to continue as a going concern if it fails to implement its liquidity strategies effectively.