[For Immediate Release]
China Wood Optimization Announces 2016 First Quarterly Results
Net Profit Surges More Than Three Times
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Higher Average Selling Price of All Products
Notably Improves Gross Profit Margin
(Hong Kong, 11 May 2016) – China Wood Optimization (Holding) Limited (“China Wood Optimization”
or the “Group,” stock code: 8099), an advanced new technology group engaged in processing,
manufacturing and sales of wood products, today announced its first quarterly results of FY2016 with
notable growth in revenue, gross profit margin and net profit.
The Group recorded a marked increase in its revenue of approximately 82.1% to about RMB167.2 million
for the three months ended 31 March 2016 (“2016Q1” or “review period”), mainly attributable to the
substantial rise in revenue of less-shaved processed wood panels. During the period, there was a general
increase in the average selling price (ASP) across all product segments, among which the ASP of
less-shaved processed wood panels increased by around 6.5% to about RMB3,418 per cubic meter,
boosting the Group’s overall gross profit margin by 8.9 percentage point to 26.2%. The Group’s profit
attributable to equity shareholders grew around 3.2 times to approximately RMB25.0 million during the
review period.
Processed wood panels
Processed wood panels are the Group’s principal products which are generally used to produce floor
planks, doors and furniture. The Group believes that focusing on production and sales of less-shaved
processed wood panels could enhance production efficiency, reduce unit cost of sales, shorten inventory
turnover days, increase sales volume and improve its price advantage. The sales and marketing activities
conducted in the previous years have significantly increased the demand of less-shaved processed wood
panels during the period, driving the overall sales of the Group’s processed wood panels up year-on-year
by 79.3% to 47,028 cubic meters and resulting in a revenue growth of around 87.5% to RMB162.8 million
accordingly.
Processed finger joint wood panels
Cut-offs and small pieces produced during the trimming of processed wood panels are pressed and
further processed before lamination to form processed finger joint wood panels. Processed finger joint
wood panels are in the form of standard-sized boards and are generally used to produce wooden furniture,
doors and window frames. During the period, the Group continued to reduce the sales of processed finger
joint wood panels and focus on the sales of less-shaved processed wood panels, so as to more efficiently
utilize its capacity. Therefore, the sales of processed finger joint wood panels during the review period
was reduced to 1,010 cubic meters and the revenue was RMB4.4 million.
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China Wood Optimization 2016 Q1 Profit Surges More Than Three Times
11 May 2016
Ms. Yim Tsun, Chairlady of China Wood Optimization, said, “Through the participation in major
exhibitions and other sales promotions during previous years, the Group’s processed wood products,
especially less-shaved processed wood panels, have gained widespread recognition in the market. Thus,
it has become easier for salespersons to introduce our products to potential customers. During the period
under review, about 20 new customers had placed sales orders to the Group. Besides, following the
commencement of operation of the new factory in Huai’an, the Group’s annual production capacity is
expected to increase to about 300,000 cubic meters, allowing us to accept more sales orders in 2016. At
the same time, the Group has strived for breakthroughs in R&D. During the review period, we carried out
research and development on the use of impregnation fluid on different tree species of poplars.
Furthermore, we have embarked on research on enhancing properties such as waterproof, bending
strength and elasticity of poplar wood which is expected to further enhance the quality and variety of the
Group’s products.”
Ever since its establishment, China Wood Optimization has shouldered the mission of “cherishing the
fascinating virgin forest” and continued its efforts to reduce its carbon footprint to protect the environment,
creating a green and sustainable environment. The Group has kept in mind its mission of protecting the
environment while developing its fast-growing businesses. Last month, the Group garnered “Social
Caring Awards for Green Excellence” at the Nobel Laureate Series: Future Leadership Summit cum
Social Caring Pledge Scheme Awards Presentation Ceremony in recognition of its outstanding
contributions in environmental protection.
- End About China Wood Optimization (Holding) Limited (stock code: 8099)
The Group is principally engaged in the processing, manufacturing and sales of processed wood products,
by employing its self-developed wood processing procedure. The Group’s processed wood products are
broadly divided into two categories, namely processed wood panels and processed finger joint wood
panels. The Group’s wood processing procedure can improve the hardness, shrinkage and swelling rate,
density, deformation resistance, cracking resistance, anti-corrosiveness, bending strength and elasticity
of poplar wood. Its processed wood products can be used as substitutes of natural solid woods. The
Group’s products are widely used to make furniture and indoor furnishing materials. Customers of the
Group mainly include manufacturers of floor planks, furniture, doors and window frames and wholesalers
of wooden panels.
Media Enquiry:
Strategic Financial Relations Limited
Veron Ng
Angelus Lau
Antonio Yu
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