COMMERCE, Calif., April 15, 2026 (GLOBE NEWSWIRE) -- XMax Inc. (NASDAQ: XWIN) (formerly Nova LifeStyle, Inc.), a distributor of contemporary styled residential and commercial furniture and new player in artificial intelligence technologies, today announced financial results for the fiscal year ended December 31, 2025.
Fiscal Year 2025 Financial Highlights
- Net Sales: $16.7 million, up 73% from $9.7 million in fiscal year 2024
- Gross Profit: $4.2 million, representing a 25% gross margin and a decrease from gross profit of $4.25 million and gross margin of 44% for fiscal year 2024
- Net Loss: $(3.4) million, improved from $(5.6) million in fiscal year 2024
- Cash and Cash Equivalents: $6.7 million as of December 31, 2025, compared to $0.2 million at December 31, 2024
- Working Capital: $9.9 million as of December 31, 2025, up from $2.1 million at December 31, 2024
Key Developments
Strategic Expansion into Artificial Intelligence
In March 2026, XMax's Board of Directors approved a strategic expansion into artificial intelligence (AI) while continuing to operate and develop its existing furniture business. The initiative is designed to diversify revenue streams and position the Company for long-term growth amid challenging conditions in the furniture market.
Under the new strategy, the Company plans to enter several high-growth AI segments, including:
- AI software and hardware development
- Cloud and GPU compute infrastructure
- AI model access and orchestration
- Enterprise-focused AI agent deployment
On April 2, 2026, the Company formally established a wholly owned subsidiary, XMax AI Inc. On April 6, 2026, XMax AI Inc. entered into an agreement with CLOUD ALLIANCE INC to develop and deploy a cloud-based AI inference platform to the Amazon Web Services (AWS) cloud environment designated by XMax AI. The platform is designed to support scalable AI application development, multi-model integration, and potential commercial deployment.
Management Commentary
"Fiscal year 2025 marked a transformational period for XMax," said Xiaohua Lu, Chief Executive Officer. "We achieved significant revenue growth of 73% while simultaneously strengthening our balance sheet and positioning the Company for future growth through strategic investments in high-growth technology sectors. Our expansion into artificial intelligence represents a natural evolution of our business strategy, leveraging emerging technologies to create new revenue streams while continuing to serve our core furniture customers."
"Our decision to invest in leading AI and space technology companies through carefully selected funds demonstrates our commitment to long-term value creation for shareholders," Lu continued. "As we move forward, we will continue to strengthen our core furniture operations while building scalable technology-driven business lines with significant commercial potential."
Fiscal Year 2025 Business Review
Revenue Performance
Net sales increased 73% to $16.7 million in fiscal year 2025, driven by:
- 102% increase in average selling prices
- Three largest product categories, including marble slabs (47% of sales), sofas (30% of sales), and coffee tables (5% of sales)
- Increased sales to Hong Kong representing 47.4% of total sales in 2025
Geographic Mix
- North America: $8.7 million (52.1% of sales), down 8% from prior year
- Hong Kong: $7.9 million (47.4% of sales), up 100% from $0 in prior year
- Other Regions: $0.1 million (0.5% of sales)
Balance Sheet and Liquidity
As of December 31, 2025, XMax maintained a strong financial position with:
- Total Assets: $35.5 million, up from $9.9 million at December 31, 2024
- Total Liabilities: $7.6 million, up from $6.8 million at December 31, 2024
- Stockholders' Equity: $28.0 million, up from $3.1 million at December 31, 2024
- Current Ratio: 4.92-to-1, indicating strong short-term liquidity
Fiscal Year 2026 Outlook
Looking ahead, XMax plans to:
- Continue strengthening its core furniture operations as a principal business line;
- Raise and deploy capital into specific AI projects, including software and hardware development, cloud and GPU compute infrastructure, and enterprise AI agent deployment
- Pursue strategic partnerships, joint ventures, or acquisitions in AI and advanced technology sectors;
- Manage capital through prudent investment strategies designed to enhance overall capital efficiency and support long-term shareholder value.
About XMax Inc.
Headquartered in Commerce, California, XMax Inc. (NASDAQ: XWIN), formerly known as Nova LifeStyle, Inc., is a diversified company engaged in the design, sourcing, and distribution of contemporary furniture, as well as the development of artificial intelligence technologies and applications. The Company operates through an established global network of suppliers, distributors, and e-commerce channels, serving a broad customer base. In addition, the Company is expanding into artificial intelligence technologies, including AI software and platform-based services, to support future growth. By leveraging both its core operations and emerging technologies, the Company aims to drive diversification and long-term value creation.
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
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