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.
Guangxi Fenglin Wood Industry Group Co LtdOrdered to return ~27 million yuan in tax refunds due to non-qualifying VAT preferential policy, adding to prior tax repayments exceeding 91 million yuan.
