AiXin Life International, Inc.

What they do

AiXin Life is a Colorado holding company that operates in China through its subsidiaries. It develops, manufactures, markets, and sells premium healthcare, nutritional products, and wellness supplements, including herbs, traditional Chinese remedies, weight management products, probiotics, foods, and drinks. The company uses a diversified omni-channel model: it sells through company-owned pharmacies (currently 8 locations), a direct marketing team that organizes entertainment-style events, and online activities. It also provides marketing and distribution services to other healthcare product manufacturers and suppliers.

Revenue drivers

• Direct marketing and events — AixinZhonghong sells nutritional products through a direct marketing team and at large-scale entertainment style events; this is a primary revenue channel, though specific segment revenues are not disclosed in the excerpts.
• Company-owned pharmacies — The company operates eight pharmacies in Chengdu, acquired in September 2021, which distribute its products and serve as learning centers; these contribute retail revenue.
• Wholesale and manufacturing via Yunnan Runcangsheng — Acquired in September 2022, this subsidiary engages in R&D, manufacturing, and wholesale distribution of health products from a 2,946 sq meter facility; it has more than 30 brand names and its products are distributed through the company's channels.
• Marketing services for other manufacturers — AixinZhonghong also provides marketing and distribution services to other manufacturers and suppliers of healthcare products, generating fees or markups.

Recent performance

For fiscal 2025, annual revenue fell to $1.5M from $3.8M in 2024, while net loss improved slightly to $2.0M from $2.8M. Quarterly revenue declined throughout 2025: Q1 2025 $398,831, Q2 $460,929, Q3 $301,979, Q4 $327,688. The company used $2.0M in operating cash flow in 2025, and at December 31, 2025, cash was only $20,751 against total liabilities of $9.8M and a shareholders' deficit of $6.6M. The 10-Q for September 30, 2025 showed similar trends, with cash of $19,113 and a working capital deficit of $7,476,418 (as of Q3). Management has noted substantial doubt about the company's ability to continue as a going concern.

Strategy

The company intends to expand its chain of pharmacies and use them as part of its overall marketing strategy, educating employees on product benefits to work closely with clients. It continues to leverage the Yunnan Runcangsheng production facility and more than 30 brand names to distribute products through its channels. In February 2024, it leased an 18,000 sq meter hotel in Chengdu to potentially support operations or events. Management states it will seek additional opportunities to profit from China's growing healthcare market, including expanding product lines through internal research, acquiring complementary products and additional pharmacies, and possibly operating nursing homes or clinics.

Risks

• Going concern risk — The company has incurred net losses and used net cash in operations in 2025 and 2024, had a working capital deficit of $7.5M as of December 31, 2025, and management has raised substantial doubt about its ability to continue as a going concern.
• Intense competition — The health and wellness product market in China is highly fragmented and competitive, with competitors including large pharmaceutical and food companies that have greater market presence, name recognition, and financial resources.
• Reliance on related-party funding — The balance sheet shows significant due to related parties ($5.46M at September 30, 2025) and related-party receivables, indicating dependence on related-party support that may not be sustained.
• Restatement and auditor changes — The company had several 8-K filings in 2025 indicating previously issued financials were not reliable and changed accountants twice, which may affect investor confidence and access to capital.

Outlook

Management does not provide a specific revenue or profitability outlook in the provided excerpts. They emphasize the need to consistently increase revenues and generate positive cash flows to fund operations, and acknowledge dependence on further debt or equity financings. The company plans to continue its pharmacy expansion and explore new healthcare opportunities, but faces substantial uncertainty about its ability to continue as a going concern. The go-forward trajectory is uncertain given the declining revenue trend and liquidity constraints.