AiXin Life International, Inc. Liquidation Value

AiXin Life International, Inc. (AIXN) is a PRC-based operator across four segments: direct product sales, pharmacy retail, hotel operations, and herbal product manufacture and sale. All assets and revenues are denominated in RMB, with reporting in USD at period-end rate of 6.9931 RMB:USD (vs. 7.2993 at December 31, 2024—a ~4% RMB appreciation that mechanically inflates USD-reported balance sheet items). Under a liquidation lens, recovery to equity is negative and deteriorating materially. MFFAIS CLV and LLV are both reported at -$10.5M; OLV at -$10.0M.

Asset side: Total segment assets declined from $4.4M (December 31, 2024) to $3.2M (December 31, 2025), a 27% contraction in one year. PP&E gross fell from $3.1M to $2.1M, partially explained by a vendor settlement that reduced carrying value by ~$0.48M (equipment that did not meet contractual specs). PP&E net stands at $660K; applying a 50-70% haircut yields $330K–$462K recoverable. Inventory net is $427K (against $504K prior year); 60% haircut yields ~$256K. Intangibles (software, $2.8K net) recover zero. Operating ROU assets of $1.52M carry zero liquidation value—they are a cost, not a recoverable asset. Cash is not separately tagged in XBRL in this filing (TAG_CONTEXT is empty); the prior 10-Q disclosed cash of $19K at September 30, 2025, and the filing notes uninsured deposits were nil, suggesting cash balances at year-end are de minimis. AR includes $319K from related parties controlled by CEO Quanzhong Lin, which commands a steeper discount than arms-length receivables given collectibility risk in a wind-down scenario.

Liability side, held at face value: Due to related parties—predominantly $5.26M owed to CEO Quanzhong Lin personally, plus $368K to director Huiliang Jiao—totals $5.82M at December 31, 2025, nearly doubling from $2.96M at December 31, 2024. This single line item is the dominant liability and is demand-payable with no interest. Accrued payroll and commissions stand at $941K (up from $746K). Operating lease liabilities total $1.46M (up from $1.32M), of which $1.28M is non-current; the hotel lease alone runs ~8.3 years remaining. A new 3-year industrial park lease for the Food Processing Project was signed November 26, 2025 at $44.7K/year, adding incremental commitment. Short-term bank loan: $85.8K added in November 2025 (Bank of Communications, 2.8% annual rate, individual drawdowns not exceeding 12 months). Construction payable collapsed from $1.12M to $41K following the vendor settlement. Total accrued liabilities and other payables fell from $2.58M to $1.55M, partially offsetting the related-party liability surge.

Revenue collapse is severe: full-year 2025 revenue of $1.49M vs. $3.82M in 2024, a 61% decline. All four segments are loss-generating in 2025. Operating loss was $2.52M on $1.49M revenue. The government grant (RMB 8M, 2021 cooperation agreement) has been fully repaid as of December 31, 2025 ($745K repaid in 2025, $167K in 2024), eliminating that liability. A fully-valued deferred tax asset of $1.31M is offset by a full valuation allowance; no tax asset is recoverable. NOL carryforwards of $1.26M (China) expire beginning 2024—a depreciating asset with no liquidation value.

Filing discusses the going-concern trajectory, working capital deficit trajectory, and CEO-funded operations extensively in MD&A but does not separately XBRL-tag the balance sheet line items—TAG_CONTEXT is empty. All balance sheet values referenced above are drawn from narrative disclosure and inline XBRL within the filing body. The absence of any XBRL balance-sheet tags prevents tag-level analysis but the narrative figures are internally consistent. Net equity recovery under liquidation is deeply negative: even before haircuts, face-value liabilities (related party: $5.82M; operating leases: $1.46M; accrued liabilities: $1.55M; taxes: $38K; bank loan: $86K; accounts payable: ~$60K) aggregate to approximately $9.0M against gross tangible assets of roughly $3.7M before haircuts. Post-haircut recoverable assets are well below $2M. Equity recovery to common shareholders is zero.