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| - Net Profit Surges 1.8 Fold |
HONG KONG, May 13, 2014 - (ACN Newswire) - China Wood Optimization (Holding) Limited ("China Wood Optimization" or the "Group"; stock code: 8099), announced its 2014 first quarterly results after its listing on the Growth Enterprise Market ("GEM") of the Hong Kong Stock Exchange. With its unique self-developed wood processing procedure, the Group was able to deliver encouraging results with surging revenues and net profit.
The Group's turnover surged 29.0% to approximately RMB81.4 million for the three months ended 31 March 2014 ("Q1 2014"), mainly attributable to the increase in the average selling prices of the Group's Processed Wood Products (including Processed Wood Panels and Processed Finger Joint Wood Panels) by around 16.2% during Q1 2014 as compared to Q1 2013 as driven by the increased product quality and market recognition of the Group's products. The Group's gross profit margin also increased from around 22.1% during Q1 2013 to around 29.9% during Q1 2014. Benefitting from these factors, profit attributable to equity shareholders of the Company increased by 1.8 fold with net margin reaching 7.9%.
Processed Wood Panels
The Group's Processed Wood Panels are generally used to produce floor planks and furniture. During the periods under review, turnover from sales of Processed Wood Panels increased substantially by 40.1% to around RMB66.0 million. Following the enhancement of the product quality, the increasing market recognition and market demand, the Group was able to raise the average selling price of this product by around 20% period-on-period.
Processed Finger Joint Wood Panels
Cut-offs and small pieces produced during the trimming process of Processed Wood Panels are laminated, pressed and further processed to form Processed Finger Joint Wood Panels, which are in the form of standard-sized boards of wooden panels and generally used to produce wooden furniture, doors and window frames. Turnover from sales of Processed Finger Joint Wood Panels maintained at RMB15.4 million during the period. The Group was able to raise its average selling price by around 9% due to the enhancement of the product quality.
Thanks to the increasing popularity of the Group's products, the total volume of Processed Wood Products sold rose from about 18,135 m3 in Q1 2013 to about 20,135 m3 in Q1 2014.
Ms. Yim Tsun, Chairlady of China Wood Optimization, said, "We are thrilled to deliver such encouraging results following our listing on the GEM Board of the Hong Kong Stock Exchange. We believe our solid results demonstrate our advanced and unique technology and the large potentials of our Processed Wood Products, which can be used as a substitute of natural solid woods with wide application in the field of furniture making and indoor furnishing. Riding on the platform as a listed company, we will further strengthen our business foundation and promote our products to tap the opportunities brought by the enormous demand of premium wood products in China."
Looking ahead, the Group will continue to expand its production capacity and integrate manufacturing operation to tap the growing demand of wood products in China. Meanwhile, the Group will also invest in R&D and collaborate with research institutes to enhance the core asset of the Group which is its production technologies. The Group plans to improve product quality and features of its existing Processed Wood Products and develop new products to target high margin markets. With unique wood processing technology, it plans to further expand its sales network coverage in China by establishing additional sales offices for promoting the products and boost the revenue.
Contact:
Strategic Financial Relations Limited
Veron Ng, +852 2864 4831, veron.ng@sprg.com.hk
Angelus Lau, +852 2864 4805, angelus.lau@sprg.com.hk
Kate Kwan, +852 2864 4873, kate.kwan@sprg.com.hk
Fax: +852 2527 1196
Topic: Press release summary
Source: China Wood Optimization (Holding) Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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