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

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

Change

April 30, 2025

April 30, 2024

Country/Region

Sales

As % of

Sales

As % of

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.

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: ir@maxsmaking.com

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: investors@ascent-ir.com

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,

2025

October 31,

2024

(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

A Shares issued and outstanding as of April 30, 2025 and October 31,

2024)

75,750

B Shares (US$0.01 par value; 7,425,000 B Shares authorized, 7,425,000 B

Shares issued and outstanding as of April 30, 2025 and October 31,

2024)

74,250

Additional paid-in capital

1,712,492

Statutory surplus reserve

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

COMPREHENSIVE INCOME

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

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

SOURCE MaxsMaking Inc.