MaxsMaking (MAMK) Registration Filing summary

Company overview and business model

• Manufactures customized consumer goods, focusing on small-batch textile products for B2B and B2C markets, with operations based in China and a holding structure in the BVI.

• Utilizes proprietary ERP, EMS, and CRM systems to enhance production efficiency and order management.

• Main products include bags, aprons, tablecloths, luggage, and other textile goods, serving SMEs, e-commerce sellers, and organizations.

• Emphasizes sustainable materials and production methods, with a strategic goal to be a global leader in customized textile goods.

• Operations are conducted through multiple PRC subsidiaries, with recent corporate restructuring to facilitate international investment.

Financial performance and metrics

• For the fiscal year ended October 31, 2023, revenue was $26.26 million, down 6.76% from the prior year, with net income of $1.98 million, a 22.51% decrease.

• Gross profit margin for FY2023 was 16.04%, slightly down from 16.49% in FY2022.

• For the six months ended April 30, 2024, revenue was $9.73 million, down 36.7% year-over-year, with net income of $0.98 million, a 20.59% decrease.

• Cash and cash equivalents as of April 30, 2024, were $0.23 million, with $3.64 million in short-term loans and $419,049 in long-term loans.

• Accounts receivable as of April 30, 2024, were $8.09 million, and inventories were $2.32 million.

Use of proceeds and capital allocation

• Net proceeds of approximately $8.19 million (at $4.50/share) are planned to be allocated: 45% to production facility construction and equipment, 20% to strategic investments/acquisitions, 15% to new hires, 12% to marketing, and 8% to R&D.

• Proceeds may be transferred to PRC subsidiaries via capital contributions or loans, subject to PRC regulatory requirements.