SINOMAX GROUP (01418.HK): Clarifies Regional Revenue Basis, US End-Market Revenue at About HKD 1.93 Billion in 2025

NewTimeSpace News: On 10 November 2026, Sinomax Group Limited (stock code: 01418) voluntarily published a business update responding to enquiries from certain stakeholders about the basis for classifying revenue by geographic market and the downstream distribution of products sold to customers in the mainland of China and other regions, particularly their subsequent distribution to the United States.

The announcement disclosed that retail sales revenue is classified by the location of the retail stores and consignment counters, while wholesale revenue is classified by the location of the customer as recorded in the billing address on the sales invoice. Sales to customers classified as located in the mainland of China and in other regions, namely Hong Kong, Macau, Vietnam, other North American markets excluding the US and other overseas markets, are therefore attributed to those regions respectively, regardless of whether the customers later sell, ship or distribute the products elsewhere or use them in finished goods.

The Company stated that, based on information available to it and written confirmations from customers, certain customers in the mainland of China or other regions subsequently distributed products purchased from the Group to the US, either in their original form or as finished products. Taking 2025 as an example, reported revenue attributable to the mainland of China was HKD 1,521,556 thousand and to the US HKD 1,550,717 thousand; revenue from products later distributed to the US from the mainland was HKD 162,880 thousand, from other regions to the US HKD 218,976 thousand, and from the mainland to other regions HKD 126,424 thousand. On that basis, mainland revenue less subsequent distribution to the US and other regions was HKD 1,232,252 thousand, while US revenue plus distribution into the US from the mainland and other regions was HKD 1,932,573 thousand. The Company stressed that the supplemental information distinguishes customer location from downstream market, does not reclassify audited regional revenue and does not adjust previously published financial statements.

The Company stated that it has developed US operations since incorporating Sinomax USA Inc. in 2005, covering manufacturing, sales, distribution and customer development; it made an initial investment in MDK Holdings ApS in October 2024 and a further investment in August 2025, acquiring 55% in total and making it a subsidiary engaged mainly in wholesale and retail of health and sleep products in Denmark, the EU and the US, and completed the acquisition of intellectual property relating to the US brand VIBE on 25 November 2025. Including products ultimately distributed to the US, US revenue was about HKD 1,677.1 million in 2024 and HKD 1,932.6 million in 2025, making the US the Group's largest end market in both years. The Company said it remains cautiously optimistic about its US business and will monitor market conditions, tariffs, customer demand and production and logistics costs.