Able View Global Inc.

Able View Global Inc. operates as a holding company incorporated in the Cayman Islands, conducting its primary operations through subsidiaries in mainland China and Hong Kong. The company positions itself as one of the largest comprehensive brand management partners for international beauty and personal care brands in China, holding a market share of 16.5% in beauty and personal care cross-border brand management and 38.1% in functional beauty and personal care brand management in 2022, as measured by gross merchandise value (GMV) ⁴. Its mission is to facilitate the entry, growth, and success of global brands in the complex Chinese market by offering end-to-end brand management capabilities.

The core business model of Able View involves generating revenue from product sales by distributing and selling cross-border products from various global brand owners to Chinese consumers. The company acts as a supplier, purchasing goods from brand partners and reselling them either directly through its own online e-commerce stores and offline counters, or indirectly through various distribution channels. These channels include mainstream horizontal online marketplaces like Tmall.com and JD.com, specialized vertical online marketplaces such as Ali Health and Vipshop, social e-commerce platforms like Douyin, Kuaishou, Xiaohongshu, and WeChat, and a wide array of online and offline independent sellers like Watsons. The company assumes inventory ownership and associated risks for the products it sells. Additionally, Able View generates revenue from providing operation services for online stores owned by its customers, covering marketing, promotion, warehouse management, logistics, and customer relationship services.

The company's product and service lines are primarily focused on the beauty and personal care segments, with a particular emphasis on functional products, including dermo-cosmetics and functional personal care products. Able View manages a portfolio of 10 brands as of December 31, 2025, down from 15 brands in both 2024 and 2023. These brands originate from countries such as the United States, France, and Japan, including well-known international brands like Clarins and PAT. The company's revenue streams are categorized into sales of cosmetics and other beauty products, and the provision of operation services. For the year ended December 31, 2025, net revenue from product sales was $96.565 million ⁵, while revenue from the provision of operation services was $8.638 million ⁶.

For the fiscal year ended December 31, 2025, Able View reported total revenue of $105.203 million ⁷, a decrease from $126.762 million ⁸ in 2024 and $129.276 million ⁹ in 2023. Total cost of revenue for 2025 was $93.290 million ¹⁰, resulting in a gross profit of $11.913 million ¹¹. The gross margin from continuing operations remained stable at 11% ¹² in both 2025 and 2024, a significant decline from 23% ¹³ in 2023. Operating expenses totaled $12.399 million ¹⁴, leading to an operating loss of $0.487 million ¹⁵. The company reported a net income of $0.820 million ¹⁶ for 2025, a notable improvement from a net loss of $7.419 million ¹⁷ in 2024, but a decrease from a net income of $9.750 million ¹⁸ in 2023. Cash and cash equivalents from continuing operations stood at $9.010 million ¹⁹ as of December 31, 2025, down from $15.192 million ²⁰ in 2024. Total current liabilities were $19.772 million ²¹ and total non-current liabilities were $7.006 million ²² as of December 31, 2025. The company had short-term loans of $9.259 million ²³ and long-term borrowings of $2.181 million ²⁴ as of the same date.

Year-over-year, total revenue from continuing operations decreased by $21.559 million ²⁵, or 17% ²⁶, from 2024 to 2025. This was primarily driven by a $25.438 million ²⁷ decrease in sales of beauty and personal care products, partially offset by a $3.879 million ²⁸ increase in revenue from the provision of operation services. The gross margin remained flat at 11% ¹² in 2025 compared to 2024, but significantly lower than 23% ¹³ in 2023, primarily due to a downward macroeconomic environment and a $1.3 million ²⁹ inventory write-down in 2024. Selling and marketing expenses decreased by $3.181 million ³⁰, or 29% ³¹, from 2024 to 2025, mainly due to a $2.795 million ³² reduction in promotion and advertising expenses as the company shifted towards higher-ROI digital channels. General and administrative expenses increased by $0.872 million ³³ in 2025, primarily due to higher professional expenses related to legal proceedings and public relations. Net cash used in operating activities from continuing operations was $3.632 million ³⁴ in 2025, compared to $3.728 million ³⁵ in 2024 and $25.475 million ³⁶ provided in 2023.

A significant operational development during the period was the disposal of Shanghai Jingyue Trading Co., Ltd. on June 27, 2025, for zero consideration. This strategic decision aimed to streamline operations and reallocate resources to the core brand management business, as Shanghai Jingyue had experienced declining sales and adverse brand perception. The disposal resulted in a net increase in income tax expense of $301,704 ³⁷, included in net income from discontinued operations. In September 2024, the company issued convertible notes in an aggregate principal amount of $5.0 million ³⁸ to three non-U.S. investors, with an 8% ³⁹ annual interest rate and a three-year ⁴⁰ maturity. These notes were converted into 7,751,939 ⁴¹ Class B Ordinary Shares and 7,751,939 ⁴² Conversion Warrants at a conversion price of $0.645 ⁴³ per share on November 25, 2024, with the Conversion Warrants having since expired.

Able View plans to expand its brand portfolio and product offerings by engaging new products, brands, and markets, while simultaneously strengthening relationships with existing brand partners. The company intends to strictly select quality brands targeting functional beauty and personal care needs in China and leverage its existing marketing and distribution experience to expand into broader segments of the healthcare market, specifically OTC and wellness brands. Furthermore, Able View seeks opportunities to cooperate with leading global brand management groups to utilize its expertise in the Chinese market.

The company aims to expand its distribution channel coverage to capture growth opportunities in China's vast and diverse consumer market, particularly focusing on emerging online and offline retail channels and direct-to-customer (DTC) channels in medium and smaller cities. This expansion is expected to lead to improved revenue and income for both Able View and its brand partners. The company is actively recruiting and training professionals to build capabilities for these emerging channels.

A key strategic initiative is to elevate "to-Customer" (to-C) cross-border products to "to-Business" (to-B) cross-border products. While to-C allows brands to gradually develop in China, the to-B model offers greater sales volume and revenue potential due to lower variable costs and a better purchasing experience for end customers, despite a more complex and time-consuming regulatory process for approvals. Able View is currently in the process of transitioning several products under two managed brands to the to-B cross-border mode, including initiating compliance processes with the China National Medical Products Administration (NMPA). The company expects to continue this transition for more managed products and brands.

Able View intends to further invest in data analytics and digital management systems. This includes utilizing more third-party tools, consulting firms, and technology partners, as well as hiring additional talent for its data analytics team, which currently consists of 5 employees ⁴⁴. The company plans to establish in-house R&D teams to develop digital management systems to streamline external tools, improve daily operational efficiency, and create innovative digital content. These digitization efforts are expected to enhance brand management processes, broaden access to brand partners and consumers, extract market insights, and improve internal management efficiency.

The company also plans to pursue selective investment and acquisition opportunities to strengthen its brand portfolio and overall business model, leveraging its seven years of experience and knowledge in the cross-border brand management space. As of December 31, 2025, Able View did not have direct ownership of specific brands or brand operating rights in China, but believes its accumulated experience enables it to value, select, acquire, and manage proprietary brands.

Able View faces significant risks related to its operations in China, including evolving PRC laws and regulations concerning overseas listings, cybersecurity, and data privacy, which could limit its ability to offer securities or cause their value to decline. The company is highly dependent on the growth of the e-commerce market in China, and any slowdown or increased in-house e-commerce capabilities by brand partners could adversely affect demand for its services. Customer concentration is a risk, with the top brand partner, Clarins, contributing over 10% ⁴⁵ of the company's revenue in 2025, and the non-renewal of contracts with key brand partners could materially impact results. Non-compete provisions in some contracts restrict the company's ability to work with competitors, potentially limiting business expansion. Failure to meet sales volume targets in contractual arrangements could lead to unilateral termination by brand partners. The company's substantial short-term indebtedness of approximately $9.3 million ⁴⁶ and long-term indebtedness of approximately $6.9 million ⁴⁷ as of December 31, 2025, relative to a net income of approximately $0.8 million ¹⁶, could impair its ability to refinance debt or obtain additional financing. Ineffective management of accounts receivable, which had turnover days of 48 days ⁴⁸ in 2025, or inventory, with turnover days of 20 days ⁴⁹ in 2025, could materially affect liquidity and financial condition. The company does not maintain business interruption or product liability insurance, exposing it to significant costs and business disruption from natural disasters, health epidemics, or product claims. Heightened international tensions, particularly between the U.S. and China, and resulting trade policy changes, including tariffs such as the 145% ⁵⁰ tariff on Chinese imports imposed by the Trump administration in April 2025, could materially and adversely affect business and financial condition. The company also faces uncertainties regarding its classification as a resident enterprise for PRC tax purposes, which could subject its global income to a 25% ⁵¹ PRC enterprise income tax rate. Furthermore, the company identified a material weakness in its internal control over financial reporting as of December 31, 2025, due to a lack of sufficient financial reporting and accounting personnel with appropriate U.S. GAAP and SEC reporting knowledge.

Management emphasizes Able View's position as a leading comprehensive brand management partner for international beauty and personal care brands in China, highlighting its market share of 16.5% in beauty and personal care cross-border brand management and 38.1% in functional beauty and personal care brand management in 2022 ⁴. The overall tone suggests a focus on strategic adaptation and growth within the complex Chinese market. Key strategic priorities include expanding the brand portfolio and product offerings, particularly in functional beauty and personal care, and leveraging existing experience to enter broader healthcare segments. Management also prioritizes expanding distribution channel coverage, especially in emerging online and offline retail and DTC channels, to tap into unmet demand across China's diverse consumer landscape. A significant strategic shift involves elevating "to-Customer" cross-border products to "to-Business" cross-border products to achieve greater sales volume and revenue potential, with several products already undergoing the compliance process for this transition. Furthermore, management is committed to further investing in data analytics and digital management systems, including establishing in-house R&D teams, to improve operational efficiency, extract market insights, and broaden access to brand partners and consumers. Finally, the company plans to pursue selective investment and acquisition opportunities to strengthen its brand portfolio and overall business model.