AIXN Revenue Plunges 63% Amid Mounting Losses, Going Concern Doubts

Ticker: AIXN · Form: 10-Q · Filed: Nov 19, 2025 · CIK: 835662

Sentiment: bearish

Topics: 10-Q, Going Concern, Net Loss, Revenue Decline, Working Capital Deficit, Cash Burn, OTC Markets

TL;DR

**AIXN is bleeding cash and its future is highly uncertain; steer clear.**

AI Summary

AiXin Life International, Inc. (AIXN) reported a significant decline in revenue and increased net losses for the nine months ended September 30, 2025. Total revenue plummeted by 62.8% to $1,161,739 from $3,120,615 in the prior year period. The company's net loss widened to $1,413,674 for the nine months ended September 30, 2025, compared to a net loss of $1,326,569 for the same period in 2024. Operating costs and expenses decreased to $3,002,057 from $4,613,269, primarily due to the absence of stock-based compensation in 2025, which was $278,655 in 202024. Cash and equivalents decreased from $62,310 at December 31, 2024, to $19,113 at September 30, 2025, driven by a substantial increase in net cash used in operating activities, which rose to $1,772,076 from $548,130 year-over-year. The company also reported a working capital deficit of $6,765,269 as of September 30, 2025, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing signals deep financial distress for AiXin Life International, Inc., with a dramatic revenue collapse and widening losses. For investors, the 'going concern' warning is a critical red flag, indicating a high risk of insolvency or significant dilution from future equity offerings. Employees face job insecurity as the company struggles to generate positive cash flow. Customers might see disruptions in product availability or service quality if the company's financial health continues to deteriorate. In the competitive health and wellness market, AIXN's struggles could allow rivals to gain market share, further exacerbating its challenges.

Risk Assessment

Risk Level: high — The company incurred a net loss of $1,413,674 for the nine months ended September 30, 2025, and used $1,772,076 in net cash from operating activities during the same period. Furthermore, it has a working capital deficit of $6,765,269 as of September 30, 2025, and cash and equivalents have dwindled to $19,113, all of which raise substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider divesting any holdings in AIXN due to the severe financial deterioration, significant going concern risk, and lack of clear path to profitability. New investors should avoid initiating a position until the company demonstrates a sustained return to revenue growth and positive cash flow from operations.

Financial Highlights

revenue
$1,161,739
net Income
-$1,413,674
eps
-$0.057
cash Position
$19,113
revenue Growth
-62.8%

Key Numbers

Key Players & Entities

FAQ

What is AiXin Life International, Inc.'s current financial health?

AiXin Life International, Inc. is in a precarious financial state, reporting a net loss of $1,413,674 for the nine months ended September 30, 2025, and a working capital deficit of $6,765,269. Its cash and equivalents have fallen to $19,113, indicating severe liquidity challenges.

Why is AiXin Life International, Inc. facing a 'going concern' warning?

The company is facing a 'going concern' warning due to its recurring net losses, significant cash usage in operating activities ($1,772,076 for the nine months ended September 30, 2025), and a substantial working capital deficit of $6,765,269 as of September 30, 2025. These factors collectively raise substantial doubt about its ability to meet its obligations.

How much did AiXin Life International, Inc.'s revenue decrease?

AiXin Life International, Inc.'s total revenue, net, decreased by 62.8% to $1,161,739 for the nine months ended September 30, 2025, down from $3,120,615 for the same period in 2024.

What is AiXin Life International, Inc.'s plan to address its liquidity issues?

AiXin Life International, Inc.'s management plans to gain positive cash-inflow through continuous cost reductions and sales of higher-margin products, and by raising cash through loans from related parties and potential equity offerings.

What were AiXin Life International, Inc.'s cash and equivalents as of September 30, 2025?

As of September 30, 2025, AiXin Life International, Inc. had cash and equivalents of $19,113, a significant decrease from $62,310 at December 31, 2024.

Who is Quanzhong Lin and what is his role at AiXin Life International, Inc.?

Quanzhong Lin is a key figure who purchased 65.0% of AiXin Life International, Inc.'s outstanding shares in 2017 and was the sole stockholder of AiXin (BVI) International Group Co., Ltd. He was also a shareholder in acquired entities like Aixin Shangyan Hotel and Aixintang Pharmacies.

What is the impact of foreign currency translation on AiXin Life International, Inc.?

AiXin Life International, Inc. experienced a foreign currency translation loss of $128,322 for the nine months ended September 30, 2025, contributing to its comprehensive loss.

Has AiXin Life International, Inc. undergone any stock splits recently?

Yes, on February 17, 2023, AiXin Life International, Inc. effected a 1-for-2 reverse stock split, resulting in approximately 24,999,834 shares of outstanding common stock.

What are the main business segments of AiXin Life International, Inc.?

AiXin Life International, Inc., through its subsidiary AiXinZhonghong, develops and distributes nutritional products. It also operates in the hotel sector through Aixin Shangyan Hotel and pharmacy sector through Aixintang Pharmacies.

What is the significance of the 'gain from forgiveness of other payable' for AiXin Life International, Inc.?

AiXin Life International, Inc. recognized a significant 'gain from forgiveness of other payable' of $465,586 for the nine months ended September 30, 2025, which positively impacted its non-operating income, partially offsetting its operational losses.

Risk Factors

Industry Context

AiXin Life International operates in the health and pharmaceutical sector, which is characterized by intense competition, evolving consumer preferences, and stringent regulatory oversight. The industry is sensitive to economic downturns, as consumers may cut back on discretionary health and wellness products. Innovation and effective supply chain management are crucial for success.

Regulatory Implications

Companies in the pharmaceutical and health supplement sector are subject to strict regulations regarding product safety, efficacy, and marketing claims. Non-compliance can lead to significant fines, product recalls, and reputational damage. AiXin Life International must ensure adherence to all relevant PRC and international regulatory standards.

What Investors Should Do

  1. Monitor cash burn and liquidity closely.
  2. Scrutinize revenue drivers and cost structure.
  3. Evaluate the going concern assessment.
  4. Assess management's strategy for turnaround.

Key Dates

Glossary

Working capital deficit
A situation where a company's current liabilities exceed its current assets. It indicates a short-term liquidity problem. (AiXin Life International has a significant working capital deficit of $6,765,269, highlighting severe liquidity issues and raising concerns about its ability to meet short-term obligations.)
Going concern
The assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. Financial statements are prepared on this basis unless there is evidence to the contrary. (The company's financial condition, particularly its working capital deficit and cash burn, has led to substantial doubt about its ability to continue as a going concern, which is a critical warning for investors.)
Stock-based compensation
Compensation provided to employees in the form of stock options or shares, rather than cash. It is recognized as an expense. (The absence of stock-based compensation in the current period ($0 in 2025 vs. $278,655 in 2024) contributed to a decrease in operating expenses, but it masked the underlying deterioration in revenue and cash flow.)
Allowance for doubtful accounts
A contra-asset account that reduces the carrying value of accounts receivable to the amount expected to be collected. It represents an estimate of uncollectible receivables. (The decrease in the allowance for doubtful accounts from $89,935 to $50,013 suggests improved credit risk or collection, but the reversal of bad debts needs to be monitored in light of the overall financial performance.)

Year-Over-Year Comparison

Compared to the prior year period, AiXin Life International has experienced a severe contraction in revenue, down 62.8% to $1,161,739. This has led to a wider net loss of $1,413,674. While operating expenses decreased due to the absence of stock-based compensation, the company's cash position has dwindled significantly to $19,113, and net cash used in operating activities has surged, creating a substantial working capital deficit and raising serious going concern issues not as pronounced in the prior period.

Filing Stats: 4,480 words · 18 min read · ~15 pages · Grade level 16.8 · Accepted 2025-11-19 10:36:06

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information 4 Item 1. Consolidated Financial Statements (Unaudited) 4 Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 4 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 6 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 4.

Controls and Procedures

Controls and Procedures 38

– Other Information

Part II – Other Information 39 Item 1A.

Risk Factors

Risk Factors 39 Item 6. Exhibits 39

Signatures

Signatures 40 2 SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS This report contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "would" and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on forward-looking statements. Forward-looking statements include, among other things, statements relating to: our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding demand for, and market acceptance of, our products; our expectations regarding keeping and strengthening our relationships with merchants, manufacturers and end-users; and general economic and business conditions in the regions where we provide our services. Also, forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report and the documents that we reference and filed as exhibits to the report completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new informa

financial statements, as well as the reported amounts of revenues and expenses during the reporting period

financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 ($ 68,450 ) per bank. Accounts Receivable The Company's policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2025 and December 31, 2024, the bad debt allowance was $ 50,013 and $ 52,669 , respectively. 10 The following table summarizes the activity related to the Company's accounts receivable allowance for doubtful accounts for the nine months ended September 30, 2025 and 2024: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS 2025 2024 For the nine months ended September 30, 2025 2024 Beginning balance $ 52,669 $ 80,640 Provision for (Reversal of) bad debts ( 3,933 ) 8,140 Effect of translation 1,277 1,155 Ending balance $ 50,013 $ 89,935 Inventories Inventories mainly consist of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables, and raw materials. Inventories are valued at the lower of average cost or market, cost being determined on

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