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Monday, 11 May 2015, 23:00 HKT/SGT

Source: China Wood Optimization (Holding) Limited
China Wood Optimization Announces 2015 First Quarterly Results
Turnover Grows Continuously with Sales of Processed Wood Panels Surges Nearly 60%

HONG KONG, May 11, 2015 - (ACN Newswire) - China Wood Optimization (Holding) Limited ("China Wood Optimization" or the "Group," stock code: 8099) today announced its FY2015 first quarterly results. During the period under review, the Group's turnover continued to grow along with its expanded business.

For the three months ended 31 March 2015 ("2015Q1" or the "review period"), the Group's turnover amounted to approximately RMB91.8 million, increased 12.8% as compared to the corresponding period last year mainly because of the higher contribution from processed wood panels. In order to boost the sales orders from existing and new customers during the slow season of processed wood products (January and February), the Group enhanced product promotion by offering discounts, which also encouraged customers to exhibit their new products made with the Group's processed wood in major exhibitions held this March. This strategy successfully boosted turnover and expanded the customer base, paving the way for future development. During the review period, the Group's profit attributable to equity shareholders was approximately RMB 5.9 million.

Ms. Yim Tsun, Chairlady of China Wood Optimization, said, "Based on the achievement from last year, we have kept abreast with seasonal trends during the first quarter and adjusted the sales strategy to enhance marketing promotion. The measures have helped in achieving satisfactory results in sales even during traditional slow seasons and secured new customers, helping the Group to increase market share and strengthen our brand, thus consolidating our leading presence in the industry."

Processed wood panels
Processed wood panels are the Group's principal products which are generally used to produce floor planks, doors, sound boxes and furniture. With higher profit margins than processed finger joint wood panels, the Group has been actively promoting the sales of processed wood panels, with sales in this segment increasing from around 81.1% in the corresponding period last year to around 94.6% this year. Owing to the well-recognized quality and wide awareness of China Wood's processed wood panels in the market and the marketing promotion conducted by the Group in January and February, sales volume of processed wood panels increased significantly by approximately 58.0% to 26,230 cubic meters compared to last year and sales revenue rose by 31.5% year-on-year to approximately RMB 86.8 million.

Processed Finger Joint Wood Panels
Cut-offs and small pieces produced during the trimming of processed wood panels are pressed and further processed before lamination to form processed finger joint wood panels. Processed finger joint wood panels are in the form of standard-sized boards of wooden panels and are generally used to produce wooden furniture, doors and window frames. To more efficiently utilize production capacity, the Group has reduced the sales of processed finger joint wood panels and focused on processed wood panels as the latter involve fewer procedures. As a result, sales of this segment dropped year-on-year to approximately 1,202 cubic meters and sales revenue amounted to approximately RMB5.4 million.

Looking ahead, China Wood Optimization will continue to increase its production capacity and further promote the market recognition of its processed wood products in the China market. The Group's new production plant in Huai'an, Jiangsu Province will commence production in the fourth quarter of this year thereby expanding the production capacity. Moreover, the Group will keep pursuing R&D in products and technology to expand product application spectrum and improve the quality of processed wood products. Meanwhile, the sales offices in Beijing, Shanghai and Chengdu are expected to better serve its existing customers and secure new customers, leading to an increase in sales volume.

About China Wood Optimization (Holding) Limited

The Group is principally engaged in the processing, manufacturing and sales of processed wood products, by employing its self-developed wood processing procedure. The Group's processed wood products are broadly divided into two categories, namely processed wood panels and processed finger joint wood panels. The Group's wood processing procedure can improve the hardness, shrinkage and swelling rate, density, deformation resistance, cracking resistance, anti-corrosiveness, bending strength and elasticity of poplar wood. Its processed wood products can be used as substitutes of natural solid woods. The Group's products are widely used to make furniture and indoor furnishing materials. Customers of the Group mainly include manufacturers of floor planks, sound box, furniture, doors and window frames and wholesalers of wooden panels.

Strategic Financial Relations Limited
Veron Ng       +852 2864 4831   [email protected]
Angelus Lau    +852 2864 4805   [email protected]
Janet Fong     +852 2864 4817   [email protected]
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May 11, 2015 23:00 HKT/SGT
Source: China Wood Optimization (Holding) Limited

Topic: Press release summary
Sectors: Daily Finance
From the Asia Corporate News Network

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