MaxsMaking Inc. Reports First Half of Fiscal Year 2025 Financial Results

Rhea-AI Summary

MaxsMaking (Nasdaq: MAMK) reported unaudited results for the six months ended April 30, 2025. Revenue rose to $12.40M (+27.43% YoY) driven by a $3.91M increase in mainland China sales. Gross profit fell to $1.34M with margin at 10.82% versus 20.36% a year earlier due to higher material and labor costs and a volume-focused strategy. Net income declined to $0.18M and basic EPS to $0.02. Cash was $0.19M as of April 30, 2025. The company completed a July 2025 IPO, raising gross proceeds of $6.5M to strengthen capital for growth and R&D.

Positive

• Revenue +27.43% to $12.40M for H1 FY2025
• Domestic sales +51.89% (mainland China contribution +$3.91M)
• IPO proceeds $6.5M completed July 8, 2025
• Net cash from operations $0.85M vs used $1.73M prior year

Negative

• Gross margin down from 20.36% to 10.82% (≈952 bps)
• Net income down 81.6% to $0.18M YoY
• Cost of revenue +42.70% to $11.06M
• Cash balance only $0.19M as of April 30, 2025

Insights

Independent Financial Analyst

Revenue rose sharply, but margins and net income compressed; IPO proceeds improved capitalization despite low cash on hand.

Revenue increased to $12.40 million (+27.43%) while gross profit fell to $1.34 million and gross margin dropped to 10.82%, reflecting higher raw-material and labor costs and a deliberate volume-driven pricing strategy. Operating expenses rose, led by a 53.50% increase in R&D to $0.46 million and higher bad-debt expense, which together contributed to net income declining to $0.18 million and EPS falling to $0.02 per A share.

Cash on the balance sheet is modest at $0.19 million, but the completed July 8, 2025 IPO generated gross proceeds of $6.5 million, strengthening the capitalization backdrop; operating cash flow turned positive to $0.85 million for the period. Key near-term dependencies include whether volume-led pricing can regain margin, controllable reduction of bad-debt exposure, and effective deployment of IPO proceeds. Monitor gross-margin recovery, accounts receivable trends and quarterly cash balances over the next 12 months.

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: 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				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				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 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				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.

FAQ

What were MaxsMaking (MAMK) revenue and revenue growth for H1 FY2025?

MaxsMaking reported $12.40M in revenue for H1 FY2025, a 27.43% increase year‑over‑year.

How did MaxsMaking (MAMK) profitability change in the first half of fiscal 2025?

Gross profit fell to $1.34M with margin at 10.82%, and net income declined to $0.18M for H1 FY2025.

What drove MaxsMaking's (MAMK) revenue growth in H1 FY2025?

Revenue growth was mainly from mainland China, which increased by about $3.91M, a 51.89% rise versus prior year.

What capital did MaxsMaking (MAMK) raise via its IPO and when did it occur?

MaxsMaking completed an IPO on July 8, 2025, selling 1,625,000 A shares at $4.00 for gross proceeds of $6.5M.

How did operating cash flow and cash balance look for MaxsMaking (MAMK) in H1 FY2025?

Net cash provided by operations was $0.85M, and cash on hand was $0.19M as of April 30, 2025.

Why did MaxsMaking (MAMK) report lower margins in H1 FY2025?

The company cited higher raw material and labor costs and a strategic shift to a volume‑driven model that compressed near‑term margins.