China Wood International Holding Co., Limited (Stock Code: 1822) has released additional information regarding its previously announced plan to place new shares under a general mandate, originally disclosed on 21 October 2025. The company highlights progress on its food and beverage business segment and provides updates on the intended use of proceeds.
China Wood International raised net proceeds of approximately HK$44.6 million through a 1-for-1 rights issue in March 2025. Of this amount, approximately HK$24.6 million was directed toward the group’s general working capital, while about HK$20.0 million was earmarked for the development of the food and beverage segment. As of the date of the latest announcement, around HK$12.4 million had been deployed for research and development, with HK$7.6 million set to be fully used by the end of March 2026.
Ongoing research efforts focus on four key areas: high-throughput fermentation methods for prebiotics and related ingredients; exploring the relationship between microbiota and health food; genetic testing-based personalized nutrition solutions; and gene-editing technologies to produce hard-to-obtain food components.
The group is evaluating an acquisition of 30% to 40% of a synthetic biology infrastructure provider specializing in strain design and fermentation process development at a potential value ranging from HK$18 million to HK$22 million. This provider reportedly offers comprehensive capabilities in de novo DNA synthesis, enzyme research, and pilot-scale fermentation. Should the transaction proceed, China Wood International intends to nominate up to two directors to the provider’s board and account for the stake as an investment in associate. A total of up to HK$16.27 million from the placing could be allocated for this transaction, with the remainder funded by internal resources.
If the acquisition does not move forward, the group will retain the allocated funds for further development of existing food and beverage research projects. Shareholders and investors are advised to exercise caution when dealing in the company’s securities, as there is no certainty regarding the progress of negotiations.