AiXin Life International, Inc. (OTCQX: AIXN) Announces Completion of Acquisitions and Financial Results for the Third Quarter Ended September 30, 2021
Chengdu, China , Nov. 30, 2021 (GLOBE NEWSWIRE) — Aixin Life International, Inc. (“Aixin” or the “Company”) (OTCQX: AIXN) a company that focuses on providing nutritional products in China as well as advertising and marketing services to distributors, today announced that July 2021 the Company completed the acquisition of a hotel located in the Jinniu District, Chengdu City. The hotel covers more than 8,000 square meters and has a large restaurant that can accommodate 600 people, 6 luxury dining rooms, a 200 square meter music tea house, 13 private tea rooms, 108 guest rooms and other supporting facilities. The Company acquired the hotel through an acquisition of the outstanding equity of Aixin Shangyan Hotel for a purchase price of RMB 7,598,887, or approximately $1.16 million. The Company also announced that it had completed the acquisitions of nine pharmacies located in Chengdu through the acquisition of the outstanding equity of the entities which owned the pharmacies for an aggregate purchase price of RMB 34,635,845, or approximately US$5.31 million.
In addition to announcing the acquisitions, the Company released its quarterly financial results for the third quarter ended September 30, 2021.
Revenue was $812,910 in the three months ended September 30, 2021, compared to $728,896 in the same period of 2020, an increase of $84,014 or 12%. Revenue was $2,363,836 in the nine months ending September 30, 2021, compared to $1,774,139 in the same period of 2020, an increase of $589,697 or 33%. The increase in revenue was mainly due to increased advertising revenue, and revenue from the Company’s hotel and pharmacy divisions. The results of the operations of the hotel and pharmacies are included in financial results since the completion of the acquisitions include financials performance from July to September 2021, respectively. For the third quarter and nine months ended September 30, 2021, the Company had advertising and products revenue of $509,861 and $2,060,787 respectively, pharmacy revenue of $139,947 and $139,947, and hotel revenue of $163,102 and $163,102. For the third quarter and nine months ended September 30, 2020, the Company had $728,896 and $1,774,139 in advertising and products revenue and no revenues from the hotel and pharmacies as these acquisitions were not completed until 2021. The increase in advertising and products revenue reflects an increase in the number of advertising customers during 2021.
Income (loss) from operations was $(93,509) and $319,277 in the three and nine months ended September 30, 2021, respectively, compared to $597,165 and $651,891 in the same periods of 2020, a decrease of $412,786 or 129% for the three months ended September 30, 2021 compared with same period of 2020, and a decrease of $54,726 or 8% for the nine months ended September 30, 2021 compared with same period of 2020. The decrease in income from operations for the three months ended September 30, 2021 was mainly due to decreased advertising revenue and increased operating costs and expenses compared with the same period of 2020. The decrease in income from operations for the nine months ended September 30, 2021 was mainly due to the increased operating costs and expenses, partially offset by the increased revenue.
Mr. Quanzhong Lin, Chairman and CEO of Aixin Life International, Inc., commented: “We are very pleased with the completion of our hotel and pharmacy acquisitions, which will help diversify our businesses by capturing operational synergy via resource sharing. The pharmacies can also supply more health products and provide new channels to sell Aixin’s nutritional products. With the addition of the hotel and pharmacy businesses, our business expansion is expected to accelerate in the coming quarters.”
About Aixin Life International, Inc.
Aixin Life International, Inc., is engaged in providing nutritional products in China and operates hotel and a chain of pharmacies in Sichuan Province. The Company offers nutritional supplements and other health products. The Company sells its products through a variety of advertising and marketing initiatives, including on-line web sales, at exhibition events & conferences, and through its own chain of pharmacy stores. The Company is headquartered in Chengdu, China.
Forward-Looking Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof unless required by applicable laws, regulations or rules.
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