Guangxi Fenglin Wood Industry Group Co Ltd

Fenglin Group released its 2026 interim report, with net profit attributable to the parent company at negative 108 million yuan, a widening of 61.27 million yuan compared with the same period last year. Total operating revenue was 780 million yuan, down 0.41 percent year-on-year. Net cash outflow from operating activities was 22.34 million yuan, a year-on-year decrease of 175 million yuan. The company's latest asset-liability ratio was 29.28 percent, gross margin was negative 2.49 percent, return on equity was negative 4.61 percent, and diluted earnings per share was negative 0.10 yuan.

Fenglin Group has been ordered by the competent tax authority to return approximately 27 million yuan in tax refunds that did not qualify for the immediate refund upon collection VAT preferential policy. The company received a Tax Matter Notice issued by the Nanning High-tech Industrial Development Zone Tax Branch of the State Taxation Administration on August 14, involving refunds for the period from January 1, 2022 to December 31, 2025. The matter does not involve administrative penalties, and the related financial impact will be recorded in the current profit and loss for 2026. This is the third time this year that Fenglin Group has faced tax repayment pressure. Previously, its subsidiary Qinzhou Fenglin transferred out input VAT of 37.8114 million yuan, and Baise Fenglin paid back taxes of 26.9054 million yuan. The total amount of the three tax matters has exceeded 91 million yuan. The company has been loss-making for two consecutive years, with net profit attributable to the parent company of minus 120 million yuan in 2024 and minus 128 million yuan in 2025. It expects a loss of 90 million to 130 million yuan in the first half of 2026.

Fenglin Group disclosed its earnings forecast, expecting a net loss attributable to shareholders of 90 million to 130 million yuan in the first half of 2026, compared with a loss of 46.6002 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 50 million to 80 million yuan, compared with a loss of 53.5636 million yuan in the same period last year. The company is mainly engaged in the production and sale of particleboard and medium-density fiberboard, as well as afforestation. The change in performance is mainly due to differences in the understanding and application of tax policies between the company and its subsidiaries and the tax authorities. Tax treatment in accordance with relevant requirements reduced the current period's profit by a total of 64.7168 million yuan.