{"url_path":"/sec/aixn/10-k/2026/item-3","section_key":"item-3","section_title":"Item 3 **","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/835662/0001493152-26-023606-index.html","accession_number":"0001493152-26-023606","cik":"0000835662","ticker":"AIXN","issuer_name":"AiXin Life International, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/835662/0001493152-26-023606-index.html","primary_entity_key":"0000835662","primary_entity_name":"AiXin Life International, Inc."},"word_count":371,"has_tables":true,"body_markdown":"**Item\n3**\n**Legal\nProceedings.**\n\n \n\nFrom\ntime to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However,\nlitigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may\nharm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect\non our business, financial condition or operating results.\n\n \n\nIn\nDecember 2020, Jian Yiao (the “Plaintiff”) filed a complaint against Chengdu Aixintang Pharmacy Co., Ltd. (“Aixintang\nPharmacy”) in Zhangjiagang People’s Court in Jiangsu Province. The complaint alleges that Mr. Yiao is entitled to $392,305\n(RMB2,500,000) from Aixintang Pharmacy for breaching a purchase agreement entered in March 2020 (the “Purchase Agreement”).\nAixintang Pharmacy claimed that the Purchase Agreement was the result of a forgery by an employee, and that Aixintang Pharmacy did not\nenter the Purchase Agreement. The Court determined that Aixintang Pharmacy breached the Purchase Agreement by not delivering the products\nordered and ordered Aixintang Pharmacy to pay $392,305 (RMB2,500,000) to the Plaintiff. In December 2020, Aixintang Pharmacy filed a\nmotion in the Jiangsu Suzhou Intermediate People’s Court against the verdict.\n\n \n\nIn\nFebruary 2021, the judge in the Jiangsu Suzhou Intermediate People’s Court denied Aixintang Pharmacy’s motion and upheld\nthe judgment from the first trial. In March 2021, Aixintang Pharmacy filed another motion to the Jiangsu High People’s Court on\nthe basis that the Purchase Agreement was forged. In February 2022, Aixintang Pharmacy filed an appeal in Jiangsu High People’s\nCourt against the judgment reached by Jiangsu Suzhou Intermediate People’s Court in February 2021. In September 2022, the Court\nrejected the Defendant’s motion and upheld the judgment rendered in the second trial.\n\n \n\nOn August 30, 2024, Zhangjiagang People’s Court\nin Jiangsu Province issued a Notice of Case Closure, stating the Judgement for this case was fully executed and the plaintiff has received\nthe full execution amount as of August 30, 2024.\n\n \n\nThe\nincident which is the subject to the above lawsuit occurred before Aixintang Pharmacy was acquired by the Company. In November 2021,\nMr. Lin agreed to indemnify the Company against any losses arising from this legal proceeding."}