CHANSON INTERNATIONAL HOLDING (NASDAQ: CHSN)

Introduction

CHANSON INTERNATIONAL HOLDING (ticker: CHSN) is a Cayman Islands-incorporated foreign private issuer that manufactures and retails bakery, seasonal, and beverage products. As of June 13, 2025, its shares traded on the Nasdaq Capital Market at $0.2756, reflecting a decrease of 49.89% on the day, with a trading volume of 1,782,702 shares. The company operates under two primary brands in the People’s Republic of China (PRC) and the United States.

Corporate Structure and Operations

• Headquarters: Urumqi, Xinjiang Uygur Autonomous Region, PRC
• Founded: 2009
• Store Network:
  • 46 chain stores in Xinjiang under the “George’Chanson” and “Soul’Song” brands
  • 4 stores in New York City and sales through digital platforms
• Manufacturing & Supply:
  • Central bakery factory in Urumqi for core products
  • In-store beverage preparation and eat-in services
  • Third-party contract manufacturers for seasonal items
  • Raw materials sourced from established suppliers
• Regulatory Status:
  • Qualifies as an Emerging Growth Company under U.S. securities laws
  • SEC CIK: 0001825349

Recent Developments

• Fiscal Year 2024 Results (announced April 4, 2025):
  • Revenue: $18.2 million (up 5.7% from $17.3 million in 2023)
  • Gross profit: $7.2 million (gross margin 39.5%, compared to 47.2% in 2023)
  • Net income: $0.76 million (increased from $0.03 million in 2023)
  • Basic & diluted EPS: $0.05 (increased from $0.003 in 2023)
• Nasdaq Notice of Deficiency (March 10, 2025):
  • Stock traded below $1.00 per share for 30 consecutive business days
  • 180-day compliance period will end on September 8, 2025; an extension may be available if certain listing standards are met
• IPO Registration:
  • Amendment No. 2 to Form F-1 filed June 9, 2025; registration declared effective June 12, 2025
  • Offering of up to 25 million units (one Class A share plus Series A and B warrants), with an assumed price of $0.50 per unit

Financial and Strategic Analysis

Metric	Value
Market Cap (intraday, June 13)	$7.5 million
52-Week Range	$0.1780 – $15.5500
Trailing P/E (TTM)	11.00
Price/Sales (TTM)	0.50
Price/Book (MRQ)	0.81
Enterprise Value/EBITDA (TTM)	3.67
Profit Margin (TTM)	4.15%
Return on Equity (TTM)	4.97%
Total Cash (MRQ)	$12.1 million
Total Debt/Equity (MRQ)	70.78%

• Revenue Drivers
  • China stores: Revenue increased by 12.8% to $16.1 million; bakery products increased by 18.0%
  • U.S. stores: Revenue decreased by 29.1% to $2.1 million; bakery products increased by 13.8%, offsetting declines in beverages and eat-in services
• Strategic Initiatives
  • Plans to expand the bakery network in Xinjiang and introduce more coffee-bakery concepts
  • Targeted promotions aimed at price-sensitive consumers
  • Commitment to maintaining quality-control measures and food-safety training

Market Position and Industry Context

• Sector: Quick-service bakery and bakery-café operators
• Geographic Focus:
  • PRC: Growth in the Xinjiang region
  • U.S.: Presence primarily in New York City
• Competitive Landscape:
  • Competes with local bakery chains and international café brands
  • Industry trends include healthy and ready-to-eat offerings and specialty coffee
• Scale: Small-cap with approximately $7.5 million in market capitalization; limited trading liquidity

tl;dr

As of June 13, 2025, CHSN shares traded at $0.2756 following a 49.89% drop, prompted by the Nasdaq notice issued on March 10 regarding a minimum $1 bid price requirement by September 8, 2025. Its Form F-1 registration became effective on June 12, 2025, allowing for a potential unit offering. Fiscal year 2024 revenue rose 5.7% to $18.2 million, with net income reaching $0.76 million, supported by growth in bakery sales in China, despite declines in U.S. beverage sales. The company needs to meet compliance with Nasdaq’s listing standards to avoid delisting.