Guangxi Fenglin Wood reports wider loss in Q3 amid revenue drop

Guangxi Fenglin Wood Industry Group Co. Ltd. reported a net loss attributable to shareholders of RMB -12,749,197.82 for the third quarter of 2025, with total revenue reaching RMB 478,352,781.85, a 12.37% decrease from the prior year. For the nine-month period ending September 30, 2025, the company posted a net loss attributable to shareholders of RMB -59,349,428.46, with total operating revenue at RMB 1,261,320,920.95, representing a 16.61% decrease compared to the same period in 2024.

The company attributes the improved performance in the current quarter, with a narrower loss compared to the previous year, primarily to increased sales volume of timber products, which rose by 6,808 mu, boosting gross profit. Additionally, research and development expenses decreased due to project progress. However, the cumulative nine-month performance was impacted by overcapacity in the domestic artificial board market, leading to increased competition, lower sales volumes, and reduced prices. The company also implemented strategic downtime to manage inventory, incurring higher associated losses.

Despite the challenges, cash flow from operating activities for the nine months significantly increased to RMB 249,270,935.07. This improvement is linked to optimized production and procurement planning, which led to a substantial reduction in inventory levels of artificial boards and raw materials, thereby decreasing working capital requirements.