MaxsMaking Inc. Reports Fiscal Year 2025 Financial Results

SHANGHAI, 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 business adjustment for our Company amid heightened uncertainty and intensifying competition. Facing a weak and volatile overseas market, we adopted a business strategy to help us maintain stable revenue growth while improving the efficiency of resource allocation for sales and market development.

"In the highly competitive domestic market, we strengthened our sales initiatives to expand our customer base. We implemented a volume-driven strategy supported by penetration pricing and new customer acquisition through relationship-based referrals. These efforts contributed to a 36.33% year-over-year increase in revenue. Importantly, this growth helped offset the temporary slowdown in our overseas business and broadened and diversified our future customer base.

"At the same time, we remained committed to innovation, increasing our research and development ("R&D") spending by 16.38%. This investment reflects our long-term focus on product enhancement and on building sustainable differentiation in the customized consumer goods market.

"Although our profits and margins were temporarily affected by the volume-driven strategy, we believe our business model remains resilient and scalable. Today, we operate with a more diversified market presence, a broader customer base, and an expanding product portfolio. We believe all of these will support our future growth.

"It is also worth noting that our initial public offering (the "IPO") on the Nasdaq in July 2025 provided us access to additional capital and enhanced our presence in global markets. Despite ongoing external challenges and volatility in international trade, we believe our successful IPO has elevated us to a broader platform, enabling us to establish relationships with larger industry players, benefit from collaboration with more elite partners, and embrace further opportunities to support our operations and planned expansion.

"Looking ahead, we believe our strategy and execution will provide a foundation for long-term value. As current disruptions and uncertainties evolve, we expect to continue adapting to market conditions and pursuing growth opportunities as they arise."

Fiscal Year 2025 Financial Summary

Fiscal Year 2025 Financial Results

Revenue

Revenue was $29.22 million in fiscal year 2025, representing an increase of 36.33% from $21.43 million in fiscal year 2024. The increase was primarily attributable to an increase in sales in mainland China of approximately $9.36 million, or 54.13%, partially offset by a decrease of approximately $1.19 million in sales in Asia (excluding mainland China) and a decrease of $0.54 million in sales in Europe. The increase in sales in mainland China was primarily attributed to: (i) the Company's intensified sales efforts in the domestic market, such as offering promotions and active participation in domestic shopping festivals, expansion of its customer base, and implementation of a high-volume, lower-margin sales strategy, which resulted in increased domestic sales revenue; and (ii) the addition of new major clients through referral by the Company's management. The decrease in sales in overseas markets was mainly due to uncertainties in overseas markets, where customers' demand and consumption prospects remained relatively weak.

For the Fiscal Year

Ended

October 31, 2025

For the Fiscal Year

Ended

October 31, 2024

Change

Country/Region

Sales

Amount

As % of

Sales

Amount

As % of

Sales

Amount

Mainland China

26,643,100

91.18

17,285,726

80.65

9,357,374

54.13

Asia (excluding

mainland China)

810,415

2.77

1,998,048

9.32

(1,187,633)

(59.44)

North America

345,277

1.18

276,746

1.29

68,530

24.76

Europe

1,266,824

4.34

1,806,989

8.43

(540,165)

(29.89)

Oceania

41,158

0.14

16,650

0.08

24,508

147.19

South America

62,948

0.22

30,170

0.14

32,778

108.64

Africa

51,124

0.17

19,771

0.09

31,354

158.59

Total

29,220,846

100.00

21,434,100

100.00

7,786,746

36.33

Cost of Revenue

Cost of revenue was $26.61 million in fiscal year 2025, representing an increase of 52.34% from $17.46 million in fiscal year 2024. The increase was due to higher domestic sales volume, which has lower gross profit margins, resulting in cost growth outpacing revenue growth.

Gross Profit and Gross Profit Margin

Gross profit was $2.62 million in fiscal year 2025, compared to $3.97 million in fiscal year 2024.

Gross profit margin was 8.95% in fiscal year 2025, compared to 18.52% in fiscal year 2024. The decline in gross profit margin was primarily attributable to a decrease in overseas sales, which historically generate higher margins. As overseas sales declined, the Company's overall gross profit decreased. In response, the Company intensified its sales efforts in the domestic market and adopted a lower-price, higher-volume strategy, which increased domestic sales but carried a lower margin and further compressed the Company's overall gross profit margin.

Operating Expenses

Operating expenses were $2.51 million in fiscal year 2025, representing an increase of 42.25% from $1.77 million in fiscal year 2024.

Net Income

Net income was $0.02 million in fiscal year 2025, compared to $1.88 million in fiscal year 2024.

Basic and Diluted Earnings per Share

Basic and diluted earnings per A share and B share were $0.00 in fiscal year 2025, compared to $0.25 in fiscal year 2024.

Financial Condition

As of October 31, 2025, the Company had cash of $0.12 million, compared to $0.18 million as of October 31, 2024.

Net cash used in operating activities was $5.29 million in fiscal year 2025, compared to $3.04 million in fiscal year 2024.

Net cash used in investing activities was $56,877 in fiscal year 2025, compared to $18,514 in fiscal year 2024.

Net cash provided by financing activities was $5.30 million in fiscal year 2025, compared to $3.10 million in fiscal year 2024.

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 annual report on Form 20-F for the fiscal year ended October 31, 2025 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.

CONSOLIDATED BALANCE SHEETS

FOR THE FISCAL YEARS ENDED OCTOBER 31, 2025 AND 2024

IN U.S. DOLLARS, EXCEPT SHARE DATA

October 31,

2025

October 31,

2024

ASSETS

Current Assets

Cash

122,381

176,236

Accounts receivable, net

9,877,030

6,188,992

Due from related parties

36,815

—

Inventories

6,504,761

2,633,615

Other receivables and other current assets

5,003,667

7,452,317

Total current assets

21,544,654

16,451,160

Non-Current Assets

Plant and equipment, net

153,271

119,125

Intangible assets, net

6,447

7,433

Right-of-use assets, net

71,482

86,441

Deferred tax assets

66,383

24,538

Deferred offering cost

986,206

Total non-current assets

297,583

1,223,743

Total Assets

21,842,237

17,674,903

LIABILITIES AND EQUITY

Current Liabilities

Short-term loans

1,954,007

2,785,965

Accounts payable

3,243,451

2,127,623

Contract liability

449,306

512,859

Income tax payable

952,041

859,194

Other payables and accrued liabilities

259,345

867,249

Due to related parties

149,757

Lease liabilities-current

13,145

47,895

Current portion of long-term loan

22,573

Total current liabilities

6,893,868

7,350,542

Non-Current Liabilities

Lease liabilities-non current

57,841

—

Non-current portion of long-term loans

2,278,162

2,058,651

Total non-current liabilities

2,336,003

2,058,651

Total liabilities

9,229,871

9,409,193

COMMITMENTS AND CONTINGENCIES (NOTE 17)

Equity

A Shares (US$ 0.01 par value; 9,200,000 A Shares authorized, 7,575,000 A

Shares issued and outstanding as of October 31, 2024 and October 31,

2023)

92,000

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 October 31, 2024 and October 31,

2023)

74,250

Additional paid-in capital

5,972,110

1,712,492

Statutory surplus reserve

788,123

705,396

Retained earnings

5,726,180

5,806,881

Accumulated other comprehensive loss

(368,876)

(421,542)

Total MaxsMaking Inc.'s Equity

12,283,787

7,953,227

Non-Controlling Interests

328,579

312,483

Total equity

12,612,366

8,265,710

Total Liabilities and Equity

21,842,237

17,674,903

MAXSMAKING INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE FISCAL YEARS ENDED OCTOBER 31, 2025, 2024 and 2023

IN U.S. DOLLARS, EXCEPT SHARE DATA

For The Fiscal Years Ended

October 31,

2025

2024

2023

Revenues

29,220,846

21,434,100

26,260,268

Cost of revenues

(26,605,003)

(17,463,856)

(22,048,972)

Gross profit

2,615,843

3,970,244

4,211,296

Operating expenses:

Sales and marketing expenses

(462,285)

(606,352)

(490,221)

General and administrative expenses

(1,399,356)

(600,660)

(571,407)

Research and development expenses

(650,629)

(559,048)

(740,800)

Total operating expenses

(2,512,270)

(1,766,060)

(1,802,428)

Income from operations

103,573

2,204,184

2,408,868

Other (expenses) income, net

Interest expenses

(159,166)

(151,335)

(69,572)

Interest income

223

548

1,158

Other income

85,113

95,767

87,399

Exchange gain (loss)

72,406

17,344

(2,106)

Other expenses

(16,593)

(16,839)

(140,029)

Income before income tax provision

85,556

2,149,669

2,285,718

Income tax expense

(67,434)

(269,003)

(307,441)

Net income

18,122

1,880,666

1,978,277

Less: Net income attributable to non-controlling interest

16,096

67,496

69,006

Net income attributable to MaxsMaking Inc.

2,026

1,813,170

1,909,271

Other comprehensive income

Foreign currency translation adjustment

52,666

36,714

(39,443)

Comprehensive income

70,788

1,917,380

1,938,834

Less: comprehensive income (loss) attributable to non-

controlling interests

832

(839)

(7,775)

Comprehensive (loss) income attributable to

MaxsMaking Inc.

69,956

1,918,219

1,946,609

Weighted Average A Shares Outstanding – Basic and

Diluted

8,092,857

7,575,000

Weighted Average B Shares Outstanding – Basic and

Diluted

7,425,000

Earnings per A Share – basic and diluted

0.00

0.25

0.26

Earnings per B Share – basic and diluted

0.00

0.25

0.27

MAXSMAKING INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE FISCAL YEARS ENDED OCTOBER 31, 2025, 2024 and 2023

IN U.S. DOLLARS, EXCEPT SHARE DATA

For The Fiscal Years Ended

October 31,

2025

2024

2023

Cash Flows from Operating Activities:

Net income

18,122

1,880,666

1,978,277

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation of plant and equipment

30,573

28,548

22,638

Allowance (Reversal of allowance) for expected credit loss

of accounts receivable

173,564

17,064

(23,422)

Amortization of right-of-use assets

138,080

179,858

189,311

Amortization of intangible assets

1,014

1,021

1,032

Accounts receivable

(3,791,371)

168,688

1,895,868

Inventories

(3,817,383)

(412,235)

56,562

Other receivables and other current assets

2,240,000

(4,142,973)

(1,397,468)

Amount due from related party

(36,433)

422

(426)

Deferred tax assets

(41,284)

(19,841)

(2,575)

Operating lease-right of use assets

(122,830)

(45,928)

—

Deferred offering cost

(332,851)

(905,452)

(273,346)

Other non-current assets

—

196,834

178,786

Accounts payable

1,091,381

1,094,933

(4,279,114)

Income tax payable

87,446

283,245

87,502

Contract liability

134,680

(328,693)

164,529

Other payables and accrued liabilities

(928,045)

13,537

(100,599)

Lease liabilities

22,604

(327,396)

(167,614)

Amount due to related party

(153,012)

(720,729)

1,070,112

Net cash used in operating activities

(5,285,745)

(3,038,431)

(599,947)

Cash Flows from Investing Activities:

Purchases of plant and equipment

(56,877)

(18,514)

(73,646)

Collection from loans to third parties

—

810,250

Net cash (used in)generated by investing activities

(56,877)

(18,514)

736,604

Cash Flows from Financing Activities:

Proceeds from issuance of ordinary shares upon the

completion of IPO

5,594,926

—

Capital contributions

—

787,266

—

Proceeds from third party loans

184,559

260,101

71,055

Proceeds from bank borrowings

3,036,036

4,611,529

1,406,889

Repayments of third party loans

(325,058)

(745,156)

—

Repayment of bank borrowings

(3,191,570)

(1,813,680)

(1,806,122)

Net cash provided by(used in) financing activities

5,298,893

3,100,060

(328,178)

Effect of Exchange Rate Changes on Cash

(10,126)

971

3,715

Net (Decrease) Increase in cash

(53,855)

44,086

(187,806)

Cash, Beginning of Year

176,236

132,150

319,956

Cash, End of Year

122,381

176,236

132,150

Supplemental disclosure of cash flow information:

Cash paid for income tax

21,273

5,598

222,026

Cash paid for interest

155,572

151,335

69,572

Supplemental disclosure of cash flow information:

Right-of-use assets obtained in exchange for operating lease

obligation

177,415

66,419

18,639

SOURCE MaxsMaking Inc.