NEW YORK, Dec. 18, 2023 /PRNewswire/ -- Nature Wood Group
Limited ("Nature Wood" or the "Company"), a global leader in
vertically-integrated forestry and FSC business operations,
today disclosed its unaudited financial results for the six months
ended June 30, 2023.
Financial Highlights:
- Total revenue for the first half of 2023 stood at approximately
$15.6 million, marking a decrease of
49.6% from the $31.0 million recorded
in the same period of last year.
- The Company reported a loss of approximately $1.0 million for the period, a significant shift
from the $3.8 million profit reported
in the first half of 2022.
- The cash position at the end of the period was $2.1 million. Additionally, the Company
strengthened its cash balance in the second half by raising a total
of $7.5 million in September through
its IPO, including proceeds from the over-allotment option, before
deductions.
Performance Analysis:
- The reduction in revenue was largely attributed to the global
economic downturn, particularly impacting the home building and
renovation sectors, and the ongoing geopolitical tensions from the
Russian-Ukrainian war.
- Gross profit margin witnessed a decline to 20.6% in the first
half of 2023.
- Selling and distribution expenses saw a decrease of 30.4%,
primarily due to lower shipping costs resulting from the decreased
revenue.
- Basic and diluted Loss Per Share were recorded at approximately
$0.01 for the first half of
2023.
Strategic Initiatives and Future Outlook:
- Nature Wood is actively pursuing new opportunities in the
burgeoning market of carbon credit sales, anticipating this venture
to contribute significantly to future revenues with high
margins.
- "In the face of ongoing global economic challenges and various
geopolitical tensions, including the significant impact of the
Russian-Ukrainian war, our business has continued to encounter
headwinds in the latter half of 2023. These broad economic and
political factors have notably affected demand in the construction
and home renovation markets, which are crucial for our product
line. Consequently, we foresee that these adverse conditions will
significantly impact our financial performance for the second half
of the year," stated Mr. Jianjun
Zeng, Chairman of Nature Wood.
"However, looking beyond the immediate horizon, our long-term
outlook is marked by optimism and confidence. We recognize the
immense potential in our primary markets, underpinned by expanding
middle classes and low consumer debt levels. Our strategic focus on
emerging opportunities, such as the high-margin carbon credit
market, aligns with global trends towards sustainability and
positions us favorably for future growth. We remain steadfast in
our commitment to operational excellence and innovation, ensuring
that Nature Wood is well-equipped to capitalize on the evolving
market dynamics and deliver value to our stakeholders."
Operational Highlights:
- The Company has intensified its focus on streamlining
operations and reducing overhead costs to maintain financial
stability and support future growth.
- Nature Wood continues to leverage its vertically integrated
model to optimize supply chain efficiency and enhance product
quality.
Additional Information:
- The detailed financial statements and analysis can be accessed
in the Company's filings with the SEC and on the Nature Wood
website.
About Nature Wood Group Limited
Nature Wood Group Limited is a global leading
vertically-integrated forestry company that focuses on FSC business
operations, timber and wood products industry. The Company's
operations cover both up-stream forest management and harvesting,
and down-stream wood-processing and distribution. Nature Wood
offers a broad line of products, including logs, decking, flooring,
sawn timber, recycled charcoal, synthesized charcoal, machine-made
charcoal and essential oils, primarily through its sales network in
Europe, South Asia, South
America, North America and
China. The Company is one of the
largest exporters of wood products in Peru, with approximately 615,333 hectares of
forest concessions as of June 30,
2023. In terms of the export value in 2021, the Company is
(i) the second largest wood products export supplier; (ii) the
second largest wood products export supplier certified by the FSC;
and (iii) the largest decking product supplier, in Peru. Nature Wood is also the largest oak
export supplier and the second largest hardwood export supplier, in
France in terms of export volume
in 2021. In addition, we intend to capture the significant growth
in the carbon market through carbon asset development, carbon
trading and other related business by taking the advantage of our
own concession rights reserves and professional FSC forest
management team. For more information, please
visit: www.nature-wood.com.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to,"
and similar statements. Statements that are not historical facts,
including statements about the Company's beliefs, plans, and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in the
Company's filings with the SEC. All information provided in this
press release is as of the date of this press release, and the
Company does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For media enquiries, please contact: Michael Wei,
hwey@horizonconsultancy.co
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