Able View Global Inc.

Able View Global Inc. operates as a comprehensive brand management partner for international beauty and personal care brands in China, generating revenue primarily from product sales by distributing cross-border products to Chinese consumers through various e-commerce platforms and offline channels. The company positions itself as a trusted partner for global brands seeking to enter, grow, and succeed in the complex Chinese market, offering capabilities across the entire brand management value chain, including strategy, branding, digital and social marketing, omni-channel sales, customer service, overseas logistics, warehouse, and fulfillment. Able View holds 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. The company's business model involves purchasing goods from brand partners, whom it regards as suppliers, and reselling them to consumers either directly through its own online e-commerce stores or offline counters, or indirectly through distribution channels including mainstream horizontal online marketplaces, vertical online marketplaces, social e-commerce platforms, and a wide variety of online and offline distributors, dealers, and agents. Able View assumes inventory ownership and associated risks for the products of its brand partners, managing these risks through strict brand and product screening, evaluation procedures, and standard inventory management techniques.

The company's product and service lines are primarily categorized into sales of cosmetics and other beauty products, and the provision of operation services for online stores owned by customers. For the year ended December 31, 2025, net revenue from product sales was $96.6 million ⁵ from continuing operations, while revenue from the provision of operation services was $8.6 million ⁶. In the prior year, December 31, 2024, net revenue from product sales was $122.0 million ⁷ and revenue from operation services was $4.8 million ⁸. For the year ended December 31, 2023, these figures were $124.7 million ⁹ for product sales and $4.5 million ¹⁰ for operation services. The operation services encompass marketing and promotion of cosmetics products, warehouse management, product logistics, and customer relationship services.

Able View's omni-channel distribution capabilities are extensive, covering online flagship e-stores, mainstream horizontal marketplaces like Tmall and JD.com, specialized vertical online marketplaces such as Ali Health and Vipshop, social e-commerce channels including Douyin, Kuaishou, Xiaohongshu, and WeChat, and various other distributors. As of December 31, 2025, the company operates 6 online flagship e-stores ¹¹. In 2025, mainstream horizontal marketplaces accounted for 27% ¹² of total revenues, vertical marketplaces for 6% ¹³, social e-commerce channels for 3% ¹⁴, and offline channels for 4% ¹⁵. Various other distributors constituted the largest portion, at 58% ¹⁶ of total revenues in 2025. The company also maintains brick-and-mortar sales channels, including shopping mall counters and beauty chain stores like KKV and Harmay, and has expanded to five offline channels such as Walmart in 2023.

For the fiscal year ended December 31, 2025, Able View Global Inc. reported total revenue of $105,203,366 ¹⁷ from continuing operations, a decrease from $126,762,314 ¹⁸ in 2024 and $129,276,476 ¹⁹ in 2023. Total cost of revenue for continuing operations was $93,290,366 ²⁰ in 2025, $112,260,018 ²¹ in 2024, and $98,956,303 ²² in 2023. This resulted in a gross profit of $11,913,000 ²³ in 2025, $14,502,296 ²⁴ in 2024, and $30,320,173 ²⁵ in 2023. The gross margin from continuing operations remained stable at 11% ²⁶ in both 2025 and 2024, a significant decline from 23% ²⁷ in 2023. The company reported a loss from operations of $486,613 ²⁸ in 2025, compared to a loss of $206,043 ²⁹ in 2024, and an income of $11,334,389 ³⁰ in 2023. Net loss from continuing operations was $2,767,353 ³¹ in 2025 and $1,146,566 ³² in 2024, contrasting with a net income of $9,407,166 ³³ in 2023. Including discontinued operations, the company reported a net income of $820,018 ³⁴ in 2025, a net loss of $7,419,412 ³⁵ in 2024, and a net income of $9,750,046 ³⁶ in 2023. Cash and cash equivalents from continuing operations stood at $9,010,336 ³⁷ as of December 31, 2025, down from $15,191,995 ³⁸ in 2024. Total current assets were $32,110,432 ³⁹ and total assets were $34,550,271 ⁴⁰ as of December 31, 2025. Total current liabilities were $19,771,916 ⁴¹ and total liabilities were $26,778,062 ⁴². Short-term loans amounted to $9,259,172 ⁴³ and long-term borrowings were $2,180,694 ⁴⁴ as of December 31, 2025.

Year-over-year, total revenue from continuing operations decreased by $21.6 million ⁴⁵, or 17% ⁴⁶, from $126.8 million ¹⁸ in 2024 to $105.2 million ¹⁷ in 2025. This was primarily driven by a $25.4 million ⁴⁷ decrease in sales of beauty and personal care products, partially offset by a $3.9 million ⁴⁸ increase in revenue from the provision of operation services. The gross margin from continuing operations remained stable at 11% ²⁶ in 2025 and 2024, but significantly declined from 23% ²⁷ in 2023, primarily due to the downward macroeconomic environment and a $1.3 million ⁴⁹ inventory write-down in 2024. Selling and marketing expenses decreased by $3.2 million ⁵⁰, or 29% ⁵¹, from $11.0 million ⁵² in 2024 to $7.8 million ⁵³ in 2025, mainly due to a $2.8 million ⁵⁴ reduction in promotion and advertising expenses as the company shifted focus to higher-ROI digital channels and a $0.3 million ⁵⁵ decrease in freight expenses. General and administrative expenses increased by $0.9 million ⁵⁶ in professional expenses and $0.3 million ⁵⁷ in payroll and welfare expenses in 2025 compared to 2024. Net cash used in operating activities from continuing operations was $3,631,932 ⁵⁸ in 2025, compared to $3,727,609 ⁵⁹ in 2024 and cash provided of $25,474,737 ⁶⁰ in 2023.

A significant operational development during the period was the disposal of Shanghai Jingyue Trading Co., Ltd. on June 27, 2025, which was classified as a discontinued operation. This strategic decision aimed to streamline operations and reallocate resources to the core brand management business, as Shanghai Jingyue had experienced declining sales and expected continued deterioration due to adverse brand perception. In connection with this disposal, Able View agreed to purchase inventories with a carrying value of $162,535 ⁶¹ at an original cost of $3,330,617 ⁶², and the buyer waived $4,389,889 ⁶³ of liabilities owed by the company. This disposal resulted in a net increase in income tax expense of $301,704 ⁶⁴ within net income from discontinued operations. The company also issued convertible notes in September 2024 for an aggregate principal amount of $5,000,000 ⁶⁵ (after a 20% original issue discount), which were subsequently converted into 7,751,939 Class B Ordinary Shares ⁶⁶ and 7,751,939 Conversion Warrants ⁶⁷ at a conversion price of $0.645 ⁶⁸ per share on November 25, 2024. All Conversion Warrants have 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 leverage its comprehensive and omni-channel capabilities to scale up business performance in terms of volume and product offerings with controlled costs. Within its current segment, Able View will continue to strictly select quality brands targeting functional beauty and personal care needs of Chinese consumers. The company also plans to horizontally expand its existing marketing and distribution experience to more Over-the-Counter (OTC) and wellness brands in broader segments of the healthcare market. Vertically, Able View seeks opportunities to cooperate with leading global brand management groups to leverage its experience in the China market.

The company aims to expand its distribution channel coverage to capture growth opportunities in China's vast, complex, diverse, and evolving 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. To support this, Able View 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 market exposure, the company believes that some of its managed brands have reached sufficient scale and stability for the to-B mode, which offers greater sales volume and revenue potential due to lower variable costs and a better purchasing experience for end customers. Able View is currently in the process of elevating several products under two managed brands from to-C to to-B, which involves initiating compliance processes with the China National Medical Products Administration (NMPA) for certain product categories like OTC products. The company expects to continue this process with more managed products and brands.

Able View plans to further invest in data analytics and digital management systems to enhance its brand management process, broaden access to more brand partners and consumers, extract market insights, and improve internal management efficiency. This investment will involve utilizing more third-party tools, consulting firms, and technology partners, as well as hiring more talents for its data analytics team, which currently consists of 5 employees ⁶⁹. The company also plans to establish in-house R&D teams to develop digital management systems that streamline external tools and systems, daily operation efficiency, and innovative digital content creation.

The company intends 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. Able View believes direct ownership of specific brands or brand operating rights in China could provide valuable strategic growth opportunities, although it had no such ownership as of December 31, 2025.

Able View believes that its current cash and cash equivalents of $9.0 million ³⁷ and anticipated cash flows from operations will be sufficient to meet its anticipated working capital requirements and capital expenditures for the next 12 months. However, if cash requirements exceed available funds, the company may seek to issue equity or debt securities or obtain credit facilities. The company has not engaged in any research and development activities since its inception ⁷⁰.

Able View Global Inc. faces several material risks, including significant exposure to the growth and stability of the e-commerce market in China, which directly impacts demand for its brand management services. The company is highly dependent on retaining existing brand partners, with contracts typically ranging from 12 to 36 months, and the top brand partner, Clarins, contributed over 10% ⁷¹ of the company's revenue in 2025. Non-compete provisions in some contracts may restrict business expansion, and failure to meet sales volume targets could lead to contract termination. Operational risks include challenges in managing business expansion, maintaining relationships with e-commerce channels (such as Tmall and JD.com, which comprised 29% ⁷² and 21% ⁷³ of total GMV from continuing operations in 2025, respectively), and adapting to rapid changes in channel technologies. The company assumes inventory ownership and risks, with inventories totaling $3.3 million ⁷⁴ as of December 31, 2025, and is susceptible to inventory obsolescence or shortages. Dependence on third-party delivery services and payment processors also poses risks. The company carries a substantial level of indebtedness, with short-term liabilities of approximately $9.3 million ⁴³ and long-term liabilities of approximately $6.9 million ⁷⁵ as of December 31, 2025, relative to a net income of approximately $0.8 million ³⁴ for the twelve months ended on the same date. This indebtedness could reduce funds available for other purposes and impair refinancing ability. Furthermore, the company is exposed to product liability claims as it sells third-party manufactured products and does not maintain product liability insurance.

Significant regulatory and geopolitical risks stem from its primary operations in China. The evolving PRC legal and regulatory landscape, particularly concerning cybersecurity, data privacy, and foreign investment, creates substantial uncertainties. While management believes the company does not currently meet the criteria for mandatory cybersecurity review, interpretations could change. The new Overseas Listing Rules and Archives Rules impose filing and compliance obligations for overseas offerings and listings, with potential fines between RMB 1 million and 10 million (approximately $137,000 ⁷⁶ and $1,370,000 ⁷⁷) for non-compliance. Changes in the "negative list" for foreign investment could restrict the wholesale and retail of cosmetics, impacting Able View's business. Heightened tensions between China and other countries, including the U.S., and the imposition of tariffs (e.g., a 145% ⁷⁸ tariff on Chinese imports by the U.S. as of April 10, 2025), could adversely affect trade, consumer spending, and brand partners' operations in China. Restrictions on currency exchange in China may limit the ability to utilize Renminbi-denominated revenue for operations or dividends outside mainland China. The company also faces uncertainties regarding its classification as a PRC tax resident enterprise, which could subject its global income to a 25% ⁷⁹ PRC enterprise income tax. Lastly, the Holding Foreign Companies Accountable Act (HFCAA) and related regulations pose delisting risks if the PCAOB loses access to inspect the company's auditor, potentially impacting the market price and liquidity of its Class B Ordinary Shares. The company's Class B Ordinary Shares are also subject to Nasdaq's minimum bid price requirement of $1.00 ⁸⁰ per share, and a closing bid price of $0.10 ⁸¹ or less for 10 consecutive trading days could lead to immediate trading suspension and delisting.

Management's message to shareholders emphasizes the company's mission to help global brands enter, grow, and succeed in China by leveraging its comprehensive brand management capabilities across the entire value chain. They highlight Able View's leading position in China's cross-border beauty and personal care brand management, with a market share of 16.5% ⁴ in the overall segment and 38.1% ⁴ in functional beauty and personal care brand management in 2022. Strategic priorities include expanding the brand portfolio and product offerings, with a focus on functional beauty and personal care needs and potential expansion into broader healthcare market segments. The company also plans to expand its distribution channel coverage, particularly in emerging online and offline retail channels and DTC channels in smaller cities, to capture unmet demand. A key strategic shift involves elevating "to-Customer" cross-border products to "to-Business" cross-border products for managed brands that have achieved sufficient scale and stability, aiming for greater sales volume and revenue potential. Furthermore, management intends to invest in data analytics and digital management systems, including establishing in-house R&D teams, to improve operational efficiency and market insights. Finally, the company plans to pursue selective investment and acquisition opportunities to strengthen its brand portfolio and overall business model.