ABLV

Business Context and Reporting Period

Able View Global Inc. (ABLV) is a Cayman Islands exempted company and a foreign private issuer. It operates as a holding company with its primary business conducted through subsidiaries in the People's Republic of China (PRC) and Hong Kong. The company serves as a comprehensive brand management partner for international beauty and personal care brands, facilitating their entry and growth in the Chinese market through omni-channel sales, marketing, and logistics.

This summary covers the fiscal year ended December 31, 2025, as reported in the Form 20-F Annual Report.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Decline: Total revenue decreased by 17% ($21.6 million) compared to 2024. This was primarily driven by a $25.4 million decrease in product sales due to the cessation of sales for certain branded beauty products and lower customer demand. This was partially offset by a $3.9 million increase in operation service revenue.
• Profitability Shift: The company reported a net loss from continuing operations of $2.8 million in 2025, worsening from a $1.1 million loss in 2024. However, the company reported a net income of $0.8 million for the full year, driven by a $3.6 million gain from discontinued operations.
• Discontinued Operations: In June 2025, the company disposed of its subsidiary, Shanghai Jingyue Trading Co., Ltd., accounting for it as a discontinued operation. This disposal resulted in a significant gain of approximately $4.8 million, which turned the full-year result from a loss to a profit.
• Inventory Reduction: Inventory levels decreased by 47% to $3.3 million in 2025 from $6.3 million in 2024, aligning with the reduction in revenue and sales volume.
• Debt Levels: Short-term loans increased to $9.3 million in 2025 from $8.0 million in 2024. Long-term borrowings remained stable at $2.2 million.

Guidance, Outlook, Risks, and Unusual Items

• Discontinued Operations Impact: The financial results for 2025 are significantly influenced by the disposal of Shanghai Jingyue. Without this one-time gain, the company would have reported a net loss.
• Listing Compliance Risk: The company received a notification from Nasdaq in December 2025 regarding non-compliance with the minimum bid price requirement (shares trading below $1.00 for 30 consecutive days). The company has a 180-day compliance period to regain compliance, or it may face delisting.
• Regulatory Risks (PRC): The company faces significant risks related to PRC regulations, including cybersecurity reviews, data transfer restrictions, and the "Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies." Failure to comply could result in fines, operational restrictions, or delisting.
• Customer Concentration: The company is highly dependent on a few key customers. In 2025, three customers accounted for 59% of total revenue (21%, 19%, and 19% respectively). The loss of any major brand partner could materially impact operations.
• Internal Control Weakness: Management identified a material weakness in internal control over financial reporting due to a lack of sufficient personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements.
• Subsequent Events: In March 2026, shareholders approved a resolution to increase voting rights for Class A shares and a potential reverse stock split (up to 1:200), though these were not effective as of the report issuance date.

Investor Verification Checklist

• Verify Discontinued Operations: Confirm the sustainability of the $3.6 million gain from the Shanghai Jingyue disposal and assess the core profitability of continuing operations, which remain in a loss position.
• Nasdaq Compliance Status: Monitor the company's stock price to ensure it meets the $1.00 minimum bid price requirement to avoid delisting proceedings.
• Customer Concentration: Review the renewal status of contracts with the top three customers, who collectively generated nearly 60% of 2025 revenue.
• Debt Covenants: Assess the company's ability to service its $11.4 million in debt, particularly given the negative cash flow from continuing operations ($3.6 million used).
• PRC Regulatory Filings: Verify the status of any required filings with the China Securities Regulatory Commission (CSRC) and Cybersecurity Administration of China (CAC) to ensure continued listing eligibility.
• Internal Control Remediation: Review the company's progress in hiring qualified personnel and implementing controls to address the identified material weakness in financial reporting.