America Great Health Reports Significant Decline in Sales and Increased Net Loss for Quarter Ended March 31, 2026

America Great Health reported a significant decline in financial performance for the three months ended March 31, 2026, with sales totaling $26.1 million, down from $56.1 million in the same period last year. For the nine months ending March 31, 2026, total sales were $258.8 million, compared to $287.2 million for the same period in 2025. The decrease in revenue is attributed primarily to a lack of major wholesale accounts in the U.S. market, which has impacted overall sales volume. The company's gross profit also fell sharply, from $49.8 million to $22.5 million for the quarter, and from $261.7 million to $171.7 million for the nine-month period.

The company's cost of goods sold (COGS) for the three months ended March 31, 2026, was $3.6 million, a decrease from $6.3 million in the prior year, while for the nine months, COGS increased to $87.1 million from $25.5 million. This increase in COGS for the nine-month period is linked to the launch of new products with lower gross profit margins. Operating expenses also decreased, totaling $96.3 million for the quarter and $447.7 million for the nine months, down from $135.1 million and $538.4 million, respectively, primarily due to reduced payroll and professional expenses.

Despite the decline in sales, America Great Health reported a net income of $861,105 for the nine months ended March 31, 2026, a notable improvement from a net loss of $499,046 in the previous year. However, the company recorded a net loss of $166.2 million for the quarter, compared to a loss of $158.4 million in the same quarter of 2025. The increase in net income for the nine-month period was largely due to a non-recurring gain from the extinguishment of debt recognized in the previous quarter.

Operationally, America Great Health has faced challenges, including a significant reduction in cash reserves, which fell to $29.3 million as of March 31, 2026, down from $44.1 million at the end of the previous fiscal year. The company’s total liabilities decreased to $5.0 million from $6.0 million, while shareholders' deficit improved to $4.9 million from $5.7 million. The company continues to rely on short-term loans and advances from its majority shareholder to meet its cash needs.

Looking ahead, America Great Health is focused on raising additional capital to support its operations and achieve profitability. The company acknowledges substantial doubt about its ability to continue as a going concern within the next twelve months, given its recurring net losses and negative working capital. Management is actively seeking to secure funding and improve operational efficiencies to stabilize its financial position.