AiXin Life International, Inc. reported its financial results for the second quarter and the first half of 2024, highlighting a mixed performance in revenue and profitability compared to the same periods in 2023. For the three months ended June 30, 2024, total revenue decreased to $1.33 million from $1.48 million, a decline of 10%. The six-month revenue also saw a slight decrease, totaling $2.18 million compared to $2.23 million in the prior year, marking a 2% drop.

The company's sales revenue for the second quarter was $1.21 million, up from $1.09 million in the same quarter of 2023, while the six-month sales revenue increased to $1.91 million from $1.51 million. However, the overall net revenue was impacted by a significant drop in hotel revenue, which fell to $120,097 from $390,530 year-over-year, reflecting a 69% decrease. Direct sales revenue also declined sharply by 48%, from $692,709 to $357,013, attributed to an economic downturn in China and increased raw material costs.

Operating costs and expenses for the second quarter rose slightly to $1.60 million from $1.58 million, leading to a loss from operations of $(268,825), compared to a loss of $(104,768) in the prior year. For the first half of 2024, the loss from operations increased to $(890,071) from $(656,738) in 2023. The net loss for the second quarter was $(176,783), up from $(97,546) in the same quarter of 2023, while the six-month net loss increased to $(780,383) from $(627,330).

The company’s total assets as of June 30, 2024, were $5.51 million, up from $4.84 million at the end of 2023. However, total liabilities also increased to $7.96 million from $6.75 million, resulting in a total stockholders’ deficit of $(2.45 million), compared to $(1.91 million) at the end of 2023. The accumulated deficit grew to $(18.00 million) from $(17.22 million).

Cash and cash equivalents improved to $614,699 as of June 30, 2024, from $443,758 at the end of 2023, primarily due to increased cash inflow from financing activities, which totaled $796,550 for the first half of 2024, compared to $183,977 in the same period of 2023.

Strategically, AiXin Life continues to focus on its core business of developing and distributing nutritional products, with recent acquisitions enhancing its operational capabilities. The company operates in various segments, including direct sales, pharmacy, and hotel operations, although it has recently terminated its lease for the Aixin Shangyan Hotel. The company is also addressing liquidity challenges through cost reductions and potential equity offerings.