China Wood International Holding released its unaudited results for the six months ended 30 June 2026, highlighting a tougher operating climate in China’s property-linked wood sector and an early-stage pivot into functional foods and beverages.

Revenue slipped 19.3 % year on year to HKD 116.10 million, driven by a 25.6 % drop in wood-related turnover to HKD 98.87 million. Food & beverage (F&B) sales rose 59.7 % to HKD 17.23 million but were too small to offset the decline in the core business.

Gross profit eased only 2.4 % to HKD 12.09 million as the group’s blended gross margin improved to 10.4 % (H1-25: 8.6 %), reflecting a greater contribution from the higher-margin F&B segment. Operating loss widened to HKD 9.68 million (H1-25 profit of HKD 0.60 million) after a near fourfold jump in selling and distribution expenses to HKD 6.17 million, largely tied to F&B marketing, and an expansion in R&D spending to HKD 8.87 million. Net loss attributable to shareholders deepened to HKD 11.06 million from HKD 0.93 million.

Cash and cash equivalents stood at HKD 1.50 million at 30 June 2026, up modestly from HKD 1.18 million at year-end 2025, while net current assets declined to HKD 42.36 million (31 Dec 2025: HKD 53.28 million). The group remains ungeared, with no bank or other borrowings on its balance sheet.

Management reiterated strategic diversification to reduce dependence on the cyclical wood market. During the period the company agreed to sell its low-margin pine/fir processing subsidiary, Asia Pacific Forestry Development (HK) Ltd., for HKD 0.10 million, subject to shareholder approval on 2 September 2026. Post-disposal, the wood segment will concentrate on higher-value red mahogany, sandalwood and rosewood products, alongside antique-style furniture.

The fledgling F&B unit, operated via Shenzhen Weijianbao Food Technology, focuses on beauty nutrition, gut microbiome and weight-management products sourced from third-party manufacturers and sold under in-house brands with 18-22 % mark-ups. R&D priorities include high-throughput fermentation and microbiota-targeted functional foods, with new product launches targeted for 2028-29.

In May 2026 shareholders approved a capital reorganisation that reduced the par value of each share from HKD 0.10 to HKD 0.01, creating a HKD 88.82 million credit that was applied to offset accumulated losses. As of 30 June the company had 986.90 million shares in issue. Post-period, a non-underwritten rights issue launched in August seeks up to HKD 77.00 million; 58.8 % of the rights shares were taken up, with the remainder to be placed to independent investors.

The board declared no interim dividend.