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
Revenue was $29.22 million in fiscal year 2025, representing an increase of 36.33% compared to $21.43 million in fiscal year 2024.
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.
Net income was $0.02 million in fiscal year 2025, compared to $1.88 million in fiscal year 2024.
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.
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
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.
Selling expenses were $0.46 million in fiscal year 2025, representing a decrease of 23.76% from $0.61 million in fiscal year 2024. The decrease was mainly due to lower salary expenses resulting from a reduction in headcount, and a decrease in freight expenses.
General and administrative expenses were $1.40 million in fiscal year 2025, representing an increase of 132.97% from $0.60 million in fiscal year 2024. The increase was mainly due to (i) an increase in accounts receivable allowance of approximately $0.17 million; and (ii) an increase in professional fees of $0.44 million in connection with the Company's IPO in July 2025.
Research and development expenses were $0.65 million in fiscal year 2025, representing an increase of 16.38% from $0.56 million in fiscal year 2024. The increase was primarily attributable to an increase in salaries of the Company's R&D personnel.
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 RelationsEmail: [email protected]
Ascent Investor Relations LLCTina XiaoPhone: +1-646-932-7242Email: [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
