MaxsMaking Inc. Reports First Half of Fiscal Year 2025 Financial Results
SHANGHAI, Oct. 31, 2025 /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 unaudited financial results for the first half of the fiscal year ended April 30, 2025.
First Half of Fiscal Year 2025 Financial Summary
- Revenue was $12.40 million for the first half of fiscal year 2025, representing an increase of 27.43% from $9.73 million for the same period of last year.
- Gross profit was $1.34 million for the first half of fiscal year 2025, compared to $1.98 million for the same period of last year.
- Gross profit margin was 10.82% for the first half of fiscal year 2025, compared to 20.36% for the same period of last year.
- Net income was $0.18 million for the first half of fiscal year 2025, compared to net income of $0.98 million for the same period of last year.
- Basic and diluted earnings per A share were $0.02 for the first half of fiscal year 2025, compared to $0.13 for the same period of last year.
Mr. Xiaozhong Lin, Chairman and Chief Executive Officer of MaxsMaking, remarked: "In the first half of fiscal year 2025, we navigated a shifting business environment by scaling our domestic sales to secure stable revenue growth and strengthened market position, through various proactive initiatives such as trade-fair participation, targeted promotional events, expanded direct marketing and key-customer negotiations, and competitive pricing strategies. At the same time, we continued to diversify into Oceania, South America, and Africa to offset market headwinds in Asia, North America, and Europe. During this period, our total revenue increased by 27.43%, driven by a 51.89% surge in domestic sales and new customer acquisitions from the emerging markets. As global disruptions and uncertainties gradually subside, we believe our solid sales base will support a strong rebound, providing a renewed springboard for future growth.
"During this period, we increased research and development spending by 53.50% to advance production process technologies, customization capabilities. To address rising material, labor and bad-debt costs, we adopted a volume-first strategy to expand market share and better absorb fixed costs. While this temporarily compressed our margins, we view it as a strategic short-term trade-off that does not diminish our underlying profitability potential."
"Furthermore, our successful Nasdaq IPO in July 2025 has strengthened our balance sheet and enhanced our capital resources to pursue additional strategic initiatives and market opportunities. As personalization and customization evolve from niche segments into mainstream consumer trends, we believe that our business is well positioned to leverage flexible pricing, expand value-added services, and enter a virtuous growth cycle, supported by our diversified market reach, growing product suite, accumulated technological expertise, and enhanced capital base."
"Looking ahead, our current strategy, anchored in continuous product and technology innovation, will remain as the foundation for sustainable growth and global expansion, particularly in the North America market. We will continue to invest in R&D while maintaining strict cost-efficiency measures to execute this strategy efficiently, supporting long-term shareholder value, even amid a macroeconomic environment of both headwinds and tailwinds."
First Half of Fiscal Year 2025 Financial Results
Revenue
Revenue was $12.40 million for the first half of fiscal year 2025, representing an increase of 27.43% from $9.73 million for the same period of last year. The increase was primarily attributable to an approximately $3.91 million increase in sales in mainland China, and partially offset by the decrease of approximately $1.18 million in sales in Asia (excluding mainland China). The increase in revenue in mainland China and the decrease in other Asian markets were mainly due to uncertainties in overseas markets, where customers' demand and consumption prospects remained relatively weak, leading the Company to strengthen its domestic sales initiatives, such as increasing participation in trade fairs and promotional events, expanding direct marketing and business negotiations with key customers, and adopting more competitive pricing to strengthen its market position in mainland China.
For the Six Months Ended | For the Six Months Ended | Change | |||||||||||
April 30, 2025 | April 30, 2024 | ||||||||||||
Country/Region | Sales | As % of | Sales | As % of | Amount | % | |||||||
Amount | Sales | Amount | Sales | ||||||||||
Mainland China | $ | 11,459,301 | 92.38 | % | $ | 7,544,314 | 77.50 | % | $ | 3,914,987 | 51.89 | % | |
Asia (excluding mainland China) | 371,784 | 3.00 | % | 1,556,241 | 15.99 | % | (1,184,457) | (76.11) | % | ||||
North America | 59,069 | 0.48 | % | ` | 123,884 | 1.27 | % | (64,815) | (52.32) | % | |||
Europe | 427,115 | 3.44 | % | 499,126 | 5.13 | % | (72,011) | (14.43) | % | ||||
Oceania | 39,715 | 0.32 | % | 7,970 | 0.08 | % | 31,745 | 398.31 | % | ||||
South America | 11,634 | 0.09 | % | 2,468 | 0.03 | % | 9,166 | 371.39 | % | ||||
Africa | 35,616 | 0.29 | % | - | - | % | 35,616 | 100.00 | % | ||||
Total | $ | 12,404,234 | 100 | % | $ | 9,734,003 | 100 | % | $ | 2,670,231 | 27.43 | % | |
Cost of Revenue
Cost of revenue was $11.06 million for the first half of fiscal year 2025, representing an increase of 42.70% from $7.75 million for the same period of last year. The increase was primarily due to the increase in raw material cost and labor cost, as well as the effect of the Company's strategic shift to a volume-driven model, which resulted in higher sales volume and corresponding higher production expenses.
Gross Profit and Gross Profit Margin
Gross profit was $1.34 million for the first half of fiscal year 2025, compared to $1.98 million for the same period of last year.
Gross profit margin was 10.82% for the first half of fiscal year 2025, compared to 20.36% for the same period of last year. The decrease in gross profit margin was primarily due (i) an increase in raw material cost and labor cost, and (ii) the Company's strategic shift toward a volume-driven model, which prioritizes market share growth over near-term margins.
Operating Expenses
Operating expenses were $1.17 million for the first half of fiscal year 2025, representing an increase of 27.01% from $0.92 million for the same period of last year.
- Selling expenses were $0.29 million for the first half of fiscal year 2025, representing a decrease of 4.3% from $0.31 million for the same period of last year. The decrease is mainly due to the reduction in employee salaries.
- General and administrative expenses were $0.42 million for the first half of fiscal year 2025, representing an increase of 32.37% from $0.31 million for the same period of last year. The increase was mainly due to an increase in the bad debt expense of approximately $95,000, as a result of the slow collection of accounts receivables.
- Research and development expenses were $0.46 million for the first half of fiscal year 2025, representing an increase of 53.50% from $0.30 million for the same period of last year. The increase was primarily attributable to the research and development of five projects related to technologies for production processes.
Net Income
Net income was $0.18 million for the first half of fiscal year 2025, compared to $0.98 million for the same period of last year.
Basic and Diluted Earnings per Share
Basic and diluted earnings per A share were $0.02 for the first half of fiscal year 2025, compared to $0.13 for the same period of last year. Basic and diluted earnings per B share were $0.02 for the first half of fiscal year 2025, compared to $0.14 for the same period of last year.
Financial Condition
As of April 30, 2025, the Company had cash of $0.19 million, compared to $0.18 million as of October 31, 2024.
Net cash provided by operating activities was $0.85 million for the first half of fiscal year 2025, compared to net cash used in operating activities of $1.73 million for the same period of last year.
Net cash used in investing activities was $53,810 for the first half of fiscal year 2025, compared to $9,027 for the same period of last year.
Net cash used in financing activities was $0.78 million for the first half of fiscal year 2025, compared to net cash provided by financing activities of $1.83 million for the same period of last year.
Recent Development
On July 8, 2025, the Company completed its initial public offering (the "Offering") of 1,625,000 A shares at a public price of US$4.00 per share. The gross proceeds were US$6.5 million from the Offering, before deducting underwriting discounts and commissions, and other expenses. The Company's A shares began trading on the Nasdaq Capital Market on July 7, 2025, under the ticker symbol "MAMK."
About MaxsMaking Inc.
Founded in 2007 and headquartered in Shanghai, MaxsMaking Inc. specializes in customized consumer goods with a focus on advanced technology and innovation. With production facilities in China's Zhejiang and Henan provinces, the Company integrates digital production, software development, product design, brand management, online sales and international trade to deliver small-batch textile customization services. Its products include backpacks, shopping bags, aprons, and other promotional items. Using sustainable materials and proprietary order management technologies, MaxsMaking delivers high-quality, cost-effective products while emphasizing environmental protection and social responsibility. For more information, please visit the Company's website: https://ir.maxsmaking.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this announcement. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
MaxsMaking Inc.
Investor Relations
Email: [email protected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]
MAXSMAKING INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
AS OF APRIL 30, 2025 (UNAUDITED) AND OCTOBER 31, 2024 | ||||||||
IN U.S. DOLLARS, EXCEPT SHARE DATA | ||||||||
April 30, | October 31, | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 186,007 | $ | 176,236 | ||||
Accounts receivable, net | 6,011,750 | 6,188,992 | ||||||
Due from related parties | 5,554 | - | ||||||
Inventories | 3,528,337 | 2,633,615 | ||||||
Prepayments and other current assets | 6,825,994 | 7,452,317 | ||||||
Total current assets | 16,557,642 | 16,451,160 | ||||||
Non-Current Assets | ||||||||
Property and equipment, net | 120,785 | 119,125 | ||||||
Intangible assets, net | 6,850 | 7,433 | ||||||
Right-of-use assets, net | 117,526 | 86,441 | ||||||
Deferred tax assets | 44,407 | 24,538 | ||||||
Deferred offering cost | 1,058,003 | 986,206 | ||||||
Total non-current assets | 1,347,571 | 1,223,743 | ||||||
Total Assets | $ | 17,905,213 | $ | 17,674,903 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Short-term loans | $ | 2,173,189 | $ | 2,785,965 | ||||
Accounts payable | 2,433,012 | 2,127,623 | ||||||
Contract liability | 459,408 | 512,859 | ||||||
Income tax payable | 892,739 | 859,194 | ||||||
Other payables and accrued liabilities | 932,469 | 867,249 | ||||||
Due to related parties | 737,188 | 149,757 | ||||||
Lease liabilities-current | 97,190 | 47,895 | ||||||
Total current liabilities | 7,725,195 | 7,350,542 | ||||||
Non-Current Liabilities | ||||||||
Lease liabilities-non current | 6,776 | - | ||||||
Long-term loans | 1,840,642 | 2,058,651 | ||||||
Total non-current liabilities | 1,847,418 | 2,058,651 | ||||||
Total liabilities | 9,572,613 | 9,409,193 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 17) | - | |||||||
Equity | ||||||||
A Shares (US$ 0.01 par value; 7,575,000 A Shares authorized, 7,575,000 | 75,750 | 75,750 | ||||||
B Shares (US$0.01 par value; 7,425,000 B Shares authorized, 7,425,000 B | 74,250 | 74,250 | ||||||
Additional paid-in capital | 1,712,492 | 1,712,492 | ||||||
Statutory surplus reserve | 705,396 | 705,396 | ||||||
Retained earnings | 5,972,806 | 5,806,881 | ||||||
Accumulated other comprehensive income | (529,822) | (421,542) | ||||||
Total MaxsMaking Inc.'s Equity | 8,010,872 | 7,953,227 | ||||||
Non-Controlling Interests | 321,728 | 312,483 | ||||||
Total equity | 8,332,600 | 8,265,710 | ||||||
Total Liabilities and Equity | $ | 17,905,213 | $ | 17,674,903 | ||||
MAXSMAKING INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND | ||||||||
FOR THE SIX MONTHS ENDED APRIL 30, 2025 AND 2024 | ||||||||
IN U.S. DOLLARS, EXCEPT SHARE DATA | ||||||||
For The Six Months Ended | ||||||||
April 30, | ||||||||
2025 | 2024 | |||||||
Revenues | $ | 12,404,234 | 9,734,003 | |||||
Cost of revenues | (11,061,783) | (7,751,700) | ||||||
Gross profit | $ | 1,342,451 | 1,982,303 | |||||
Operating expenses: | ||||||||
Sales and marketing expenses | (293,041) | (306,224) | ||||||
General and administrative expenses | (416,039) | (314,290) | ||||||
Research and development expenses | (458,025) | (298,381) | ||||||
Total operating expenses | $ | (1,167,105) | (918,895) | |||||
Income from operations | $ | 175,346 | 1,063,408 | |||||
Other income (expense), net | ||||||||
Interest expenses | (84,275) | (69,615) | ||||||
Interest income | 135 | 326 | ||||||
Other income | 42,771 | 14,848 | ||||||
Exchange gains | 57,949 | 11,614 | ||||||
Other expenses | (17,126) | (11,713) | ||||||
Income before income tax provision | $ | 174,800 | 1,008,868 | |||||
Income tax benefit (expense) | 370 | (25,006) | ||||||
Net income | $ | 175,170 | 983,862 | |||||
Less: Net income attributable to non-controlling interest | 9,245 | 41,455 | ||||||
Net income attributable to MaxsMaking Inc. | 165,925 | 942,407 | ||||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustment | 108,280 | 13,554 | ||||||
Comprehensive income | $ | 283,450 | 997,416 | |||||
Less: comprehensive income (loss) attributable to non-controlling interests | 3,379 | (9,286) | ||||||
Comprehensive income attributable to MaxsMaking Inc. | $ | 280,071 | 1,006,702 | |||||
Weighted Average Shares Outstanding- Diluted | 15,000,000 | 15,000,000 | ||||||
Earnings per A share- basic and diluted | $ | 0.02 | 0.13 | |||||
Earnings per B share- basic and diluted | 0.02 | 0.14 | ||||||
MAXSMAKING INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
FOR THE SIX MONTHS ENDED APRIL 30, 2025 AND 2024 | ||||||||
IN U.S. DOLLARS, EXCEPT SHARE DATA | ||||||||
For The Six Months Ended | ||||||||
April 30, | ||||||||
2025 | 2024 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 175,170 | 983,862 | |||||
Depreciation of property and equipment | 50,879 | 14,133 | ||||||
Allowance for expected credit loss | 119,131 | 8,529 | ||||||
Reversal of expected credit loss | (15,579) | (145) | ||||||
Amortization of right-of-use assets | 26,092 | 90,317 | ||||||
Amortization of intangible assets | 506 | 511 | ||||||
Other current assets and other receivables | (402,681) | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 8,324 | (1,709,906) | ||||||
Inventories | (5,247) | (91,692) | ||||||
Prepayments and other current assets | 951,385 | (245,798) | ||||||
Amount due from related party | (5,569) | 422 | ||||||
Deferred tax assets | (960,210) | 597 | ||||||
Operating lease-right of use assets | (58,178) | (45,183) | ||||||
Deferred financing cost | (938,993) | (646,615) | ||||||
Other current liabilities | 75,276 | - | ||||||
Other non-current assets | - | 50,162 | ||||||
Accounts payable | 328,826 | 425,692 | ||||||
Income tax payable | 42,114 | 22,280 | ||||||
Contract liability | (48,136) | (381,151) | ||||||
Other payables and accrued liabilities | - | 106,249 | ||||||
Lease liabilities | 56,727 | (161,742) | ||||||
Amount due to related party | 1,447,089 | (147,967) | ||||||
Net cash provided by/ (used in) operating activities | 846,926 | (1,727,445) | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property and equipment | (53,810) | (9,027) | ||||||
Net cash used in investing activities | (53,810) | (9,027) | ||||||
Cash Flows from Financing Activities: | ||||||||
Capital contributions | - | 70,305 | ||||||
Proceeds from third parties loans | - | 239,015 | ||||||
Proceeds from bank borrowings | 124,609 | 2,671,579 | ||||||
Repayments of borrowings to third parties | (255,316) | (729,763) | ||||||
Repayment of bank borrowings | (650,735) | (421,828) | ||||||
Net cash (used in)/ provided by financing activities | (781,442) | 1,829,308 | ||||||
Effect of Exchange Rate Changes on Cash | (492) | 1,404 | ||||||
Net Increase in cash | 11,182 | 94,240 | ||||||
Cash, Beginning of Period | 174,825 | 132,150 | ||||||
Cash, End of Period | $ | 186,007 | 226,390 | |||||
Supplemental disclosure of cash flow information: | $ | |||||||
Cash paid for income tax | $ | 10,959 | 2,345 | |||||
Cash paid for interest | $ | 29,403 | 64,902 | |||||
Supplemental disclosure of non-cash flow information: | ||||||||
Right-of-use assets obtained in exchange for operating lease obligation | $ | 56,398 | 125,552 | |||||
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SOURCE MaxsMaking Inc.