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XMax Announces Formation of XMax AI Inc. to Execute AI Expansion Strategy

XMax (NASDAQ: XWIN) announced on April 6, 2026 that it formed a wholly owned subsidiary, XMax AI Inc., on April 2, 2026 to execute its AI expansion strategy.

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AI

XMax (NASDAQ: XWIN) announced on April 6, 2026 that it formed a wholly owned subsidiary, XMax AI Inc., on April 2, 2026 to execute its AI expansion strategy. The move is described as the first operational step to build a dedicated platform for AI-related activities while the furniture business remains the core operational base.

Management says the new subsidiary enables scaling AI capabilities and aims to diversify and create sustainable shareholder value.

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Argus Apr 7 session
-0.69% close to close Open Argus
Details

News Market Reaction – XWIN

On Apr 7, the first trading day after this news, XWIN closed 0.69% below the previous close.

Data tracked by StockTitan Argus for the Apr 7 session.

Market Context

This announcement advances XMax’s AI strategy by creating XMax AI Inc. on April 2, 2026, the first o...
Analysis

This announcement advances XMax’s AI strategy by creating XMax AI Inc. on April 2, 2026, the first operational vehicle following the March 24, 2026 AI expansion approval. It adds a new growth vector alongside the legacy furniture business, building on prior strategic moves such as the US$5,000,000 convertible note financing and the US$5.60M SpaceX-linked investment. Investors may watch how AI activities scale within this subsidiary and how capital allocation between segments evolves.

Key Figures

XMax AI Inc. formation date: April 2, 2026 AI strategy approval date: March 24, 2026 SpaceX-related investment: US$5.60 million +5 more
XMax AI Inc. formation date
April 2, 2026
Wholly owned AI subsidiary establishment
AI strategy approval date
March 24, 2026
Board-approved expansion into artificial intelligence
SpaceX-related investment
US$5.60 million
Investment by indirectly wholly owned subsidiary in Preamble Capital I
Interest in Preamble Capital I
99.82%
Stake acquired by XMax’s indirectly wholly owned subsidiary
Fund interest in SpaceX vehicle
39.7%
Interest in fund holding SpaceX Class A and Class C shares
Convertible note principal
US$5,000,000
Convertible promissory note issued on November 18, 2025
Convertible note interest
6% per annum
Interest rate on US$5,000,000 convertible note
Conversion price
US$7.80 per share
Conversion price for the 2025 convertible promissory note

Previous AI Reports

1 past event · Latest: Mar 24
Same Type 1 event
  1. Mar 24

    AI expansion plan

    24h Move
    +1.0%

    Board-approved strategic expansion into artificial intelligence alongside furniture operations.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

artificial intelligence, wholly owned subsidiary, convertible promissory note, Regulation S
4 terms
artificial intelligence technical
"strategic expansion into artificial intelligence (“AI”) as previously announced"
Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.
wholly owned subsidiary financial
"formally established a wholly owned subsidiary, XMax AI Inc., on April 2, 2026"
A wholly owned subsidiary is a company whose entire ownership is held by another company (the parent), so the parent controls decisions, operations, and finances. Think of it as a fully controlled branch that runs as its own legal entity but whose results flow straight into the parent’s financial statements; investors watch these structures because they affect consolidated revenue, risk exposure, and how profits, liabilities, and cash flow are allocated across the corporate group.
convertible promissory note financial
"announced a US$5,000,000 convertible promissory note issued to Billiongold"
A convertible promissory note is a loan a company takes now that can later be turned into shares instead of being repaid in cash. Think of it as lending money with the option to accept ownership in the business down the road; that matters to investors because it affects who gets paid first, how much ownership existing shareholders keep, and the company’s future valuation and cash needs. Terms such as conversion price, interest and maturity determine the financial impact.
Regulation S regulatory
"transaction exempt from registration under Regulation S of the U.S. Securities Act"
Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LOS ANGELES, April 06, 2026 (GLOBE NEWSWIRE) -- XMax Inc (NASDAQ: XWIN, “XMax” or the “Company”) today announced that, further to its Board’s approval of strategic expansion into artificial intelligence (“AI”) as previously announced on March 24, 2026, the Company has formally established a wholly owned subsidiary, XMax AI Inc., on April 2, 2026, marking a significant milestone in the Company’s strategic expansion into the AI area for technology-driven growth.

As previously disclosed, XMax’s Board of Directors approved a strategic initiative to expand into the AI sector. The formation of XMax AI Inc. represents the first operational step in executing this strategy and reflects the Company’s commitment to building a dedicated platform for its AI-related activities.

“The establishment of XMax AI Inc. marks a key execution milestone in our strategic expansion into artificial intelligence,” said Mr. Xiaohua Lu, the Chief Executive Officer of XMax. “While our furniture business continues to provide a strong operational foundation, the launch of this new subsidiary enables us to actively build and scale our AI capabilities. We believe this positions XMax to participate in one of the most dynamic sectors globally, to create diversified and sustainable value for our shareholders.”

About XMax Inc.

Headquartered in Commerce, California, XMax Inc., formerly known as Nova LifeStyle Inc., is a well-established distributor of contemporary styled residential and commercial furniture. The Company monitors popular trends and products to create design elements integrated into product lines for both stand-alone and whole-room furnishing solutions. Through its global network of retailers, e-commerce platforms, and hospitality providers, the Company serves customers worldwide with high-quality furniture products. In addition, the Company is currently expanding into artificial intelligence and advanced technology sectors, positioning itself as a diversified operating platform with both traditional and technology-driven business lines.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to fully resume our operations and remain financially healthy, our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory,” “focus,” “work to,” “attempt,” “pursue,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

Investor Relations Contact

ICR LLC.

XMaxIR@icrinc.com


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did XMax (XWIN) announce about XMax AI Inc. on April 6, 2026?

XMax announced the formation of a wholly owned subsidiary, XMax AI Inc., formed on April 2, 2026. According to the company, this is the first operational step to execute its Board-approved strategic expansion into artificial intelligence and to build a dedicated AI platform.

Why did XMax create XMax AI Inc. and what is its purpose for XWIN shareholders?

XMax created the subsidiary to establish a focused vehicle for AI-related activities and scaling capabilities. According to the company, the objective is to diversify operations beyond furniture and to pursue technology-driven growth to potentially create sustainable value for shareholders.

When was XMax AI Inc. formed and is it wholly owned by XMax (XWIN)?

XMax AI Inc. was formed on April 2, 2026 and is a wholly owned subsidiary of XMax. According to the company, this structure places AI activities under a dedicated entity controlled by XMax to support strategic execution.

Will XMax stop its furniture business after forming XMax AI Inc. (XWIN)?

No, XMax said its furniture business will continue to provide a strong operational foundation. According to the company, the AI subsidiary is intended to supplement and diversify company activities rather than replace the existing furniture operations.

How does XMax describe the strategic significance of XMax AI Inc. for XWIN's growth plans?

XMax describes the subsidiary formation as a key execution milestone in its AI expansion strategy and a platform to build AI capabilities. According to the company, this step signals commitment to participate in a dynamic sector and pursue technology-driven growth.

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