AiXin Life International, Inc. Annual Report: A Plain-English Summary

This guide breaks down AiXin Life International’s recent performance to help you decide if this company fits your investment goals.

1. What does this company do?

AiXin Life International is a U.S. holding company operating a "wellness conglomerate" in China. They target health-conscious consumers through four main areas:

• Health & Wellness: Developing and selling nutritional supplements and traditional Chinese remedies.
• Retail: Operating pharmacies that double as "learning centers" for health coaching.
• Hospitality: Running hotels that host marketing events and health workshops.
• Marketing: Using a "direct selling" model where customers refer friends and family to the company.

Important Note: You are not buying the Chinese businesses directly. You own shares in a U.S. holding company that controls these businesses through complex contracts. This "Variable Interest Entity" (VIE) structure means you do not legally own the underlying assets. This carries significant legal and jurisdictional risks.

2. Financial Health: Are they making money?

To put it bluntly: No, they are losing money.

The company warns there is "substantial doubt" about its ability to stay in business. Here is the reality:

• Consistent Losses: They lost $2.04 million in 2025. While this is an improvement over their $2.77 million loss in 2024, it remains a major drain.
• Cash Crunch: They are burning through cash. By the end of 2025, they had only $20,751 left, down from $62,310. This tiny balance leaves almost no room for mistakes.
• Debt Issues: They have a "working capital deficit" of over $7.4 million. This means their debts due within one year far exceed their available assets.

Because the business does not generate enough cash, they rely on selling more shares or taking on debt to survive. This results in more shares being issued, which reduces your ownership percentage and dilutes the value of your investment.

3. Major Wins and Challenges

The company is betting its future on a "consultative" sales model, but they face major hurdles:

• Regulatory Risk: China strictly regulates "multi-level marketing" (MLM) and pyramid schemes. If regulators decide the company’s model is too similar to an MLM, they could force the company to shut down.
• Operational Complexity: Managing manufacturing, pharmacies, and hotels is difficult with only 116 employees. This lean team may struggle to maintain quality or grow effectively.
• Product Quality: They rely on outside suppliers for supplements. If a supplier provides poor or contaminated ingredients, the company faces reputation damage, loss of trust, and legal fines.

4. Future Outlook

The company plans to grow by buying more pharmacies and entering the elder-care sector. However, they lack experience in rapid expansion. Given their massive debt, it is unclear how they will fund these projects without issuing more shares and further diluting your stake.

Bottom Line: This is a high-risk, speculative investment. The company is losing money, has almost no cash, and faces a difficult regulatory environment. Unless they become profitable quickly, they will likely struggle to survive.

Decision Tip: Before investing, ask yourself if you are comfortable with the risks of a company that is currently unable to cover its short-term debts and relies on continuous external funding to keep its doors open.