China Wood Optimization (Holding) Limited announced its 1Q 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 RMB 167.2 million ($21.5 million) for the three months ended 31 March 2016, 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 RMB 3.418 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 RMB 25 million ($3.2 million) during the review period.
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.”
China Wood Optimization (Holding) Limited is principally engaged in the processing, manufacturing and sales of processed wood products, by employing its self-developed wood processing procedure.