MaxsMaking Inc. Reports Fiscal Year 2025 Financial Results Accessibility Statement Skip NavigationSHANGHAI, March 4, 2026 /PRNewswire/ -- MaxsMaking Inc. (Nasdaq: MAMK) ("MaxsMaking" or the "Company"), a manufacturer of customized consumer goods with a focus on advanced technology and innovation, today announced its financial results for the fiscal year ended October 31, 2025.Mr. Xiaozhong Lin, Chairman and Chief Executive Officer of MaxsMaking, commented: "The fiscal year 2025 represented a period of busin ...

Financial Performance - Revenue for the fiscal year ended October 31, 2025, was approximately $29.22 million, representing an increase of $7.79 million or 36.33% compared to $21.43 million in 2024[382]. - Gross profit for the fiscal year ended October 31, 2025, decreased to approximately $2.62 million, a decline of $1.35 million or 34.11% from $3.97 million in 2024, resulting in a gross profit margin of 8.95%[391]. - Net income for the fiscal year ended October 31, 2025, was $18,122, a decrease of $1.86 million or 99.04% compared to $1.88 million in 2024[382]. - The decline in gross profit margin from 18.52% in 2024 to 8.95% in 2025 was attributed to a decrease in overseas sales, which typically generate higher margins[391]. - Net income decreased by approximately 99.04%, from approximately $1.88 million in 2024 to approximately $18.12 thousand in 2025[414]. Sales and Revenue Sources - Sales in mainland China for the fiscal year ended October 31, 2025, were approximately $26.64 million, accounting for 91.18% of total sales, an increase of $9.36 million or 54.13% from 2024[386]. Costs and Expenses - Cost of sales increased by approximately 52.34% from $17.46 million in 2024 to $26.60 million in 2025, primarily due to higher domestic sales volume with lower gross profit margins[389]. - Operating expenses increased by approximately 42.25% from $1.77 million in 2024 to $2.51 million in 2025, driven by higher general and administrative expenses[380]. - Total operating expenses increased by $746,210, or 42.25%, from $1,766,060 in 2024 to $2,512,270 in 2025[394]. - General and administrative expenses rose by approximately $798,696, or 132.97%, from $600,660 in 2024 to $1,399,356 in 2025, primarily due to increased professional fees related to the IPO[401]. - Research and development expenses increased by approximately $91,581, or 16.38%, from $559,048 in 2024 to $650,629 in 2025, mainly due to higher salaries for R&D personnel[403]. Cash Flow and Working Capital - Cash at the end of the year decreased from $176,236 in 2024 to $122,381 in 2025, reflecting a net decrease of $53,855[418]. - Net cash used in operating activities was approximately $5.29 million in 2025, an increase from $3.04 million in 2024, driven by higher inventory costs and accounts receivable[419]. - Total working capital increased from approximately $9.10 million in 2024 to approximately $14.65 million in 2025[417]. - The net cash provided by financing activities for the fiscal year ended October 31, 2025, was approximately $5.30 million, up from $3.10 million in 2024, driven by proceeds from bank loans and the IPO[424][425]. Accounts Receivable and Cash Management - The company reported net accounts receivables of RMB 70.01 million (approximately $9.88 million) as of October 31, 2025, compared to RMB 44.10 million (approximately $6.19 million) in 2024, indicating a significant increase in receivables[438]. - Cash held in accounts managed by online payment platforms increased from RMB 5,730.32 ($0.804 million) in 2024 to RMB 25,545.70 ($3.604 million) in 2025, representing a growth of approximately 345%[437]. - The company expects no significant credit risk associated with its cash and cash equivalents and restricted cash, which are held by major financial institutions in China[436]. Tax and Obligations - Income tax expense decreased by $201,569, or 74.93%, from $269,003 in 2024 to $67,434 in 2025 due to decreased taxable income[413]. - As of October 31, 2025, the company had total contractual obligations of approximately $4.33 million, with $1.95 million in short-term bank loans and $2.07 million in long-term bank loans[427][428]. Business Strategy and Future Outlook - The company aims to enhance its small-batch customization capacity and expand its product offerings to drive customer engagement and loyalty[378]. - The company plans to continue optimizing operating expenses as it scales its business, expecting absolute increases in operating expenses due to hiring more personnel[380]. - The company has not identified any trends or uncertainties that could materially affect its total revenues, profitability, liquidity, or capital resources for the fiscal year ended October 31, 2025[439]. Revenue Recognition and Accounting Policies - The company’s revenue recognition follows ASC 606, with revenue recognized when control of the product is transferred to the customer[442][445]. - The company recognizes revenue when control of the product is transferred to the customer, with revenue reported net of all value-added taxes (VAT)[444]. - The company has assessed the impact of ASC 606 on its revenue recognition and concluded that there were no significant changes in the timing and pattern of revenue recognition for its current revenue streams[443]. - The company grants credit to customers with good credit standing for a maximum of 360 days, with allowances for expected credit losses based on individual account analysis[446]. - Inventories are stated at the lower of cost or net realizable value, with costs calculated using the weighted average method[447]. - The company has a customer warranty of 30 days for defective products, with historical refund claims being immaterial[444].

Core Viewpoint - Trading in MaxsMaking Inc. has been halted by Nasdaq for additional information requested from the company following a previous trading suspension by the SEC [1][2]. Group 1: Trading Suspension Details - The SEC suspended trading in MaxsMaking Inc. from 04:00 on November 17, 2025, to 23:59 on December 1, 2025 [1]. - The last sale price of MaxsMaking Inc. shares was $13.00 prior to the trading halt [1]. Group 2: Nasdaq's Request - Trading will remain halted until MaxsMaking Inc. fully satisfies Nasdaq's request for additional information [2].

Core Viewpoint - MaxsMaking Inc. is addressing a ten-day trading suspension ordered by the SEC due to potential manipulation of its securities, which is set to expire on December 1, 2025 [1][2]. Company Response and Cooperation - The Company is fully cooperating with the SEC's inquiry and related inquiries from other capital markets regulators, including Nasdaq Regulation [3]. - MaxsMaking has hired Jacob Frenkel from Dickinson Wright PLLC to advise on the trading suspension and ensure compliance with securities laws [5]. Company Operations and Commitment - MaxsMaking emphasizes its commitment to compliance and has not engaged in any improper trading activities or paid for promotions of its securities [4][6]. - The Company is focused on building shareholder value and has a history of successful operations, including a Nasdaq IPO in July 2025 [6]. Company Background - Founded in 2007 and headquartered in Shanghai, MaxsMaking specializes in customized consumer goods, integrating various production and sales processes [7]. - The Company utilizes sustainable materials and proprietary technologies to deliver high-quality products while emphasizing environmental protection [8].

Core Viewpoint - Chinese concept stocks experienced significant gains, with notable increases in share prices for several companies, indicating a positive market sentiment towards these stocks [1]. Group 1: Stock Performance - QH (趣活) saw a remarkable increase of 48.14%, closing at 1.2300 with a rise of 0.3997 and a trading volume of 68.9363 million [1]. - GURE (海湾资源) rose by 37.33%, reaching a price of 3.928, with an increase of 1.068 and a trading volume of 5.05 million [1]. - MAMK (好定多) increased by 30.31%, closing at 13.630, with a rise of 3.170 and a trading volume of 1.531 million [1]. - CGTL (创智环球科技) experienced a gain of 15.76%, closing at 0.6369, with an increase of 0.0867 and a trading volume of 0.2207 million [1]. - JWEL (聚好商城) rose by 14.25%, closing at 1.908, with an increase of 0.238 and a trading volume of 0.879 million [1].

Core Insights - MaxsMaking Inc. celebrated its Nasdaq listing with a bell-ringing ceremony on November 5, 2025, marking its emergence as an innovation-focused manufacturer in the global market [1][2] - The company aims to leverage proprietary technologies and sustainable practices to enhance its competitiveness in the customized consumer goods sector, particularly in small-batch textile customization [2][3] Company Overview - Founded in 2007 and headquartered in Shanghai, MaxsMaking specializes in customized consumer goods, integrating digital production, software development, product design, brand management, online sales, and international trade [3] - The company operates production facilities in Zhejiang and Henan provinces, focusing on delivering high-quality, cost-effective products while emphasizing environmental protection and social responsibility [3] Future Outlook - The CEO of MaxsMaking expressed that the Nasdaq listing serves as a springboard for new opportunities, aiming to strengthen the company's potential and lay a foundation for sustainable growth [2] - With rising global consumer demand for personalized products, MaxsMaking plans to capture new market opportunities through its technology and integrated operations [2]

Group 1 - The top five gaining Chinese concept stocks at the close were: Chang'an Energy up 51.53%, Haodingduo up 28.62%, Kaixin Auto up 27.56%, Huhu Technology up 15.51%, and Zhengkang International up 14.12% [1] - Chang'an Energy (PTLE) had a closing price of 0.2820 with a gain of 51.53%, translating to an increase of 0.0959 and a trading volume of 206 million [1] - Haodingduo (MAMK) closed at 7.100, rising by 28.62%, which is an increase of 1.580 with a trading volume of 4.3489 million [1] Group 2 - Kaixin Auto (KXIN) saw a closing price of 1.620, up 27.56%, reflecting an increase of 0.350 and a trading volume of 17.5516 million [1] - Huhu Technology (HUHU) closed at 7.410, gaining 15.51%, which is an increase of 0.995 with a trading volume of 0.5916 million [1] - Zhengkang International (ZKIN) had a closing price of 2.910, up 14.12%, translating to an increase of 0.360 and a trading volume of 0.3609 million [1]

Core Insights - MaxsMaking Inc. reported a total revenue of $12.40 million for the first half of fiscal year 2025, marking a 27.43% increase from $9.73 million in the same period last year, primarily driven by a 51.89% surge in domestic sales in mainland China [5][7][3] - The company has adopted a volume-first strategy to expand market share, which has temporarily compressed margins but is viewed as a strategic short-term trade-off [4][11] - Research and development spending increased by 53.50% to enhance production technologies and customization capabilities [4][17] Financial Performance - Revenue for the first half of fiscal year 2025 was $12.40 million, up 27.43% from $9.73 million in the previous year [5][7] - Gross profit decreased to $1.34 million, with a gross profit margin of 10.82%, down from 20.36% in the same period last year [7][11] - Net income fell to $0.18 million compared to $0.98 million in the same period last year, with basic and diluted earnings per share at $0.02, down from $0.13 [7][14] Cost Structure - Cost of revenue increased by 42.70% to $11.06 million, primarily due to rising raw material and labor costs [9][11] - Operating expenses rose by 27.01% to $1.17 million, driven by increased general and administrative expenses [12][17] Market Strategy - The company is diversifying into emerging markets in Oceania, South America, and Africa to mitigate challenges in Asia, North America, and Europe [3][4] - MaxsMaking's successful IPO in July 2025 has strengthened its balance sheet, providing additional capital for strategic initiatives [4][17] Recent Developments - The company completed its IPO, raising $6.5 million from the sale of 1,625,000 A shares at $4.00 each [17][24] - Cash at the end of the first half of fiscal year 2025 was $0.19 million, with net cash provided by operating activities at $0.85 million [15][22]

Group 1 - The top five gainers among Chinese concept stocks include Kuke Music with a rise of 263.64%, Meiyantang with 34.69%, Wangsu Technology with 33.89%, Jian Yong Biotechnology with 24.46%, and Haodingduo with 13.47% [1] - Kuke Music's latest price is 0.0500, with a gain of 0.0363 and a trading volume of 1840.56 thousand [1] - Meiyantang's latest price is 19.140, with a gain of 4.930 and a trading volume of 10.7747 million [1] - Wangsu Technology's latest price is 8.770, with a gain of 2.220 and a trading volume of 2.6759 million [1] - Jian Yong Biotechnology's latest price is 50.020, with a gain of 9.830 and a trading volume of 10.2408 million [1] - Haodingduo's latest price is 3.960, with a gain of 0.470 and a trading volume of 10.7239 million [1]

Group 1 - The top five Chinese concept stocks that experienced the largest declines in closing prices are: Wisdom Logistics down 71.18%, Haodingduo down 34.97%, Jiuzixineng down 20.83%, Jian Yong Biotechnology down 17.76%, and Shangao Life Sciences down 15.97% [1] - Wisdom Logistics (SLGB) closed at 3.000 with a decrease of 41.18%, translating to a drop of 2.100, with a trading volume of 36.8617 million [1] - Haodingduo (MAMK) closed at 3.440, down 34.97%, which is a decrease of 1.850, with a trading volume of 36.2105 million [1] - Jiuzixineng (JZXN) closed at 0.2881, down 20.83%, reflecting a decrease of 0.0758, with a trading volume of 39.3645 million [1] - Jian Yong Biotechnology (MENS) closed at 50.000, down 17.76%, which is a drop of 10.800, with a trading volume of 27.0842 million [1] - Shangao Life Sciences (TATA) closed at 1.000, down 15.97%, translating to a decrease of 0.190, with a trading volume of 613.22 thousand [1]