MWYN

Marwynn is an $18M micro-cap holding company (formed Feb 2024, IPO'd at $4.00 in March 2025, now $1.06) that distributes imported Asian food/beverages via FuAn and imported kitchen cabinetry via Grand Forest. The FY2025 numbers describe a business that broke, not one that stumbled: revenue fell 6.8% to $11.1M while the company swung from +$998K net income in FY2024 to a -$4.40M loss, with operating income of -$4.37M (-39.3% operating margin) and, most damning, operating cash flow of -$5.27M against just $1.26M of cash on hand. That is well under a year of runway at the FY2025 burn rate, and it comes immediately after raising ~$8.2M gross in the IPO — the cash is largely gone. ROE is -88.5% and retained earnings have turned negative (-$3.98M).

The filing explains the collapse and warns it is ongoing. Management states the company 'has temporarily paused certain imports from China' in response to new tariffs, with a supply chain that 'relies heavily on international suppliers, primarily located in Asia' (China, Vietnam). For an import-distribution business, pausing your primary sourcing lane is a direct hit to the top line — and the MD&A flags rising cost of goods, that they 'do not currently hedge' commodity/input costs, and that diversifying suppliers means 'increased procurement and logistics costs.' The 42.3% gross margin is unusually high for wholesale groceries and looks fragile against this tariff pressure; even holding it, the cost base already produces a -39.6% net margin.