Company overview

Most of Chanson International Holding’s revenue comes from its directly operated George●Chanson stores in Xinjiang, where customers buy bread, cakes and pastries. A central factory in Urumqi supplies most bakery products to these stores, making continued factory supply important to the business. Its smaller New York City business uses the Patisserie Chanson and Chanson brands and earns mainly from beverages, alongside bakery sales and dining services.

The holding company’s access to much of this business rests on contracts rather than ownership. The UFG Entities generate more than half of revenue, but Chanson owns no equity in them. They pay its subsidiary Xinjiang United Family under exclusive service agreements, and the holding company relies on dividends from that subsidiary. This payment path depends on enforceable agreements and the operating entities maintaining required food permits. Chinese rules also limit dividends to accumulated profits after required reserves and can restrict transfers abroad.

Chanson also invests capital to earn contractual returns, so it is not solely a store business. Its debt investments are concentrated with Worthy Credit Limited, Shenzhen Yongdahui Trading Co., Ltd. and Beijing Zhixuan Tiangong Technology Development Co., Ltd. Worthy Credit uses the funds for loans to housing mortgage applicants; the other arrangements provide agreed returns on invested funds. Income and repayment depend on these counterparties performing their obligations.