#Carbon Market #Macau #Forestry #CL Workshop

CL Workshop Group Limited Announces Interim Results

On December 29, 2025, CL Workshop Group Limited, a leading vertically-integrated forestry company based in Macau, disclosed its unaudited financial results for the first half of 2025. This report comes during challenging times, reflecting both global economic pressures and the company's attempts to navigate through human-made and natural crises.

Financial Overview

CL Workshop reported a revenue of approximately $8.9 million for the six-month period ending June 30, 2025. This figure marks a notable decrease of 24.8% compared to the previous year's revenues of $11.9 million, with $0.8 million coming from a discontinued operation. The downturn in revenue is attributed primarily to unfavorable market conditions exacerbated by geopolitical tensions—such as the ongoing Russia-Ukraine conflict and the crisis in the Chinese real estate market—that have impacted demand for home-building and renovation products across Europe and China.

Despite these challenges, the company managed to turn a slight profit of around $0.1 million for this period, a significant improvement from a loss of $0.2 million in the same timeframe the previous year. This change can be traced back to the gain from the disposal of a discontinued operation, demonstrating CL Workshop's resilience in a tumultuous economic environment.

Major Revenue Influencers

Continuing drops in both market demand and pricing for the company's products have been a significant challenge. The financial strain from the COVID-19 pandemic lingers, and the current geopolitical climate continues to cast a shadow over market stability. Notably, the downturn in the Chinese property sector and the repercussions of escalating US-China trade tensions have caused revenue declines in this market.

On the operational side, CL Workshop has actively been optimizing costs and exploring new revenue streams that include carbon credit income and innovative wood products like decorative plywood. These initiatives demonstrate the company’s strategy to adapt to changing market dynamics and ensure sustainable growth moving forward.

Cost Management

Costs associated with selling and distribution have also seen a positive development, decreasing by 26.2%, from approximately $1.4 million in the first half of 2024 to about $1 million for 2025. This reduction aligns closely with the drop in overall revenue, showcasing the company’s attention to streamlining expenses in response to decreased sales volumes. However, administrative expenses took a different trajectory, rising sharply by 53.8% to approximately $1.5 million during the same period. This increase is largely due to expenses related to expanding the product mix.

Future Outlook

With ongoing tension in global markets, the company recognizes the importance of resilience and adaptability. The leadership is optimistic about future opportunities in the carbon market, leveraging their expertise and existing resources. By focusing on FSC business operations and carbon asset development, CL Workshop aims to position itself as a key player in eco-friendly product offerings.

Board Changes

Further impacting the company’s strategic direction was the substantial transfer of shares that occurred in late 2025. A group of shareholders transferred 86.82% of the company's shares to new purchasers, leading to significant changes in the board of directors, including the resignations and appointments of several top executives. This shakeup could affect the company’s strategy going forward as it aims for competitive advantages in the forestry sector amid fluctuating market conditions.

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