Able View Global Inc (ABLV)

Able View Global Inc: 2024 Annual Financial Report

Report Date: April 30, 2025
Period Covered: Fiscal Year 2024 (ended December 31, 2024)

Executive Summary

Able View Global Inc (Nasdaq: ABLV) reported full‐year 2024 revenue of $128.93 million, down 13.4% from $149.00 million in 2023. Total liabilities fell by 6.8% to $40.54 million as of December 31, 2024 (from $43.49 million in 2023). The Company recorded a net loss of $7.42 million in 2024, compared with net income of $11.69 million in 2023.

Revenue & Profit Analysis

• Revenue breakdown: 96.3% from cosmetic product sales ($124.17 million); 3.7% from operating services ($4.76 million). 98.3% of revenue from third-party channels; 1.7% from related-party sales.
• Gross margin: Declined to 9.2% (2024) from 24.8% (2023), primarily due to a $4.89 million inventory writedown on slow-moving SKUs and higher per-unit purchase costs.
• Operating expenses: Selling & marketing down 17.5% to $14.15 million; G&A roughly flat at $6.48 million; R&D minimal.
• Net result: Net loss of $7.42 million (–5.8% margin) compared with net income of $11.69 million (+7.8% margin) in 2023.

Reasons for 2024 Loss

1. Inventory writedowns on underperforming products during economic slowdown
2. Rising purchase costs that outpaced selling price adjustments
3. Pressure on gross margins amid promotional activity reduction

Balance Sheet Highlights

• Cash & equivalents: $15.33 million
• Accounts receivable: $15.17 million (DSO ~38 days)
• Inventory: $6.61 million (down from $17.43 million)
• Short‐term borrowings: $7.97 million; long‐term debt: $2.18 million
• Current ratio: 2.31x; Debt/Equity: 5.7x

Pros and Cons

Pros:

• Leading omnichannel platform with deep expertise in China’s cross-border beauty market
• Strong network of 300 KOLs, 450 brands, and 750 million consumer reach
• Declining leverage and disciplined expense controls

Cons:

• Loss of profitability in 2024 driven by inventory risks and margin compression
• Dependence on a small number of large customers/brands
• Sensitivity to PRC regulatory changes, currency controls & nonlinear seasonality

Next Steps & Outlook

• Margin recovery plan: Rationalize SKUs, renegotiate supplier terms, implement dynamic pricing
• Service‐line growth: Expand to‐business (B2B) cross-border model and private-label partnerships
• Data & automation: Invest in in-house analytics platform and digital marketing technology

Able View Global enters 2025 with a leaner cost structure, strong cash reserves, and a roadmap to restore margin and return to profitability.

2024 Revenue Breakdown:

• Cosmetic product sales: $124.17 M (96.3%)
• Operating services: $4.76 M (3.7%)
• Third-party sales: $126.71 M (98.3%) vs. related-party: $2.22 M (1.7%)

Accounts Receivable (Dec 31, 2024):

• Third-party DSO: ~38 days (vs. 37 days Dec 2023)

Inventory (Dec 31, 2024):

• $6.61 M (down from $17.43 M Dec 2023) after $4.89 M writedown

Channel Mix (2024 GMV contribution):

• Online flagship stores: 41%
• Horizontal marketplaces (Tmall/JD): 36%
• Vertical marketplaces: 8%
• Social commerce & KOLs: 7%
• Offline & distributors: 8%

Able View Global faces a pivotal inflection in 2025. After a margin-hit loss year in 2024, the Company’s leaner balance sheet—with $15.3 million in cash and 6.8% lower total debt—positions it to execute a margin recovery plan. Key growth levers include scaling B2B cross-border channels, deepening data analytics capabilities for dynamic inventory and pricing, and expanding into adjacent healthcare and wellness verticals. Risks remain in customer concentration, China’s regulatory shifts, and seasonal volatility. But with refined SKU portfolios, tighter supplier negotiation, and prudent expense discipline, Able View is on a trajectory to return to profitability by mid-2025 and deliver stronger cash flow and ROIC in its core beauty segment.