Fenglin Wood Industry Group guarantees subsidiary debt, addresses performance

Guangxi Fenglin Wood Industry Group will provide a guarantee of 1,700 million yuan for its wholly-owned subsidiary, Guangxi Baise Fenglin Artificial Board Co., Ltd. for the period from August 26, 2025, to August 25, 2026. This brings the total actual guarantee provided to Baise Fenglin to 15,200 million yuan. This action is part of the company’s strategy to support its subsidiary’s operational needs and is within the 600 million yuan annual guarantee limit approved by shareholders for 2025. Baise Fenglin's financial health, with assets of 579,992,318.41 yuan and net profit of 15,148,647.71 yuan for January-June 2025, indicates sound management.

Separately, the company held its 2025 half-year performance briefing on August 26, 2025, addressing various investor queries. Key discussions included a significant improvement in operating cash flow to 153 million yuan, driven by enhanced cash flow management and sales collection. The company also elaborated on its research and development initiatives, particularly in AI-driven smart manufacturing and supply chain optimization.

Looking ahead, the company plans to leverage the opening of the Pinglu Canal in late 2026 to enhance logistics efficiency for its Guangxi base, aiming to expand into ASEAN and other emerging markets. Despite a reported 19% decrease in revenue and a shift from profit to loss in the first half of 2025 due to market oversupply, the company is implementing strategies to improve sales, increase R&D investment for product upgrades, and enhance operational efficiency.