FAST NEWS: China Wood posts large profit as trading resumes
The Latest: China Wood International Holding Co. Ltd. (1822.HK) announced on Thursday that it earned a profit of HK$1.2 billion ($153 million) last year, while its revenue rose 122% to HK$323 million.
Looking Up: China Wood conducted a successful restructuring last year, and as a result a court that was overseeing its liquidation after the company experienced earlier financial difficulties believes such a liquidation is no longer necessary.
Take Note: The profit mainly came from sales and cash received as part of the restructuring, which generated approximately HK$1.27 billion.
Digging Deeper: China Wood was established in 2009 and mainly operates wood-related businesses and car rentals, though it is considering exiting the latter. Its shares were suspended earlier this week as the company prepared to announce its latest annual results following a major restructuring last year. In addition to its core business in wood, the company plans to enter the health food and beverage industry in response to rapid growth in demand for such products post-pandemic. It is considering fund-raising to help pay for such efforts after its restructuring.
Market Reaction: China Wood’s stock opened sharply higher on Friday as it resumed trading, rising nearly three times at one point. It closed at HK$0.125, up 257%, by the midday break.
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