Fenglin Wood Industry's Q3 shows improving gross margin, strategic focus

Guangxi Fenglin Wood Industry Group held its Q3 2025 investor presentation on November 7, 2025, addressing concerns about its financial performance and future outlook. The company reported a reduction in its Q3 single-quarter net loss, with the overall gross profit margin improving from -0.17% in the first half of the year to 2.86%. Despite this improvement, year-to-date net profit still saw a year-on-year decrease. Fenglin Wood Industry plans to enhance profitability through foreign sales expansion, product structure optimization, and cost control.

As of the end of Q3, the company's asset-liability ratio stood at 26.67%, with interest-bearing debt at 14.94%, both considered low for the industry. Operating cash flow improved significantly to 249 million yuan for the first three quarters, with cash and cash equivalents reaching 837 million yuan, indicating solid repayment capabilities. The company attributes this to refined operational strategies, including “production by sales, no inventory, no price wars,” optimizing production and procurement planning, and strengthening accounts receivable management.

Fenglin Wood Industry continues to enhance its market competitiveness by increasing R&D investment in core technologies like formaldehyde-free adhesives and improved board performance. The company is also deepening collaborations with leading home furnishing enterprises to develop customized high-end products and expanding its presence in overseas markets, including Southeast Asia, Northeast Asia, and South America.