CL Workshop Group's Radical Overhaul Delivers Profit Amidst Turmoil

MACAU – December 29, 2025 – In a dramatic corporate reset, the newly christened CL Workshop Group Limited (Nasdaq: NWGL), formerly Nature Wood Group, has announced a surprising return to profitability for the first half of 2025, even as revenues declined amidst significant global economic headwinds. The announcement caps a tumultuous period of transformation that saw the Macau-based forestry company replace its entire senior leadership, welcome new majority owners, and restructure its share capital to consolidate control under its new management.

The unaudited results for the six months ending June 30, 2025, show a net profit of approximately $0.1 million, a stark reversal from the $0.2 million loss reported for the same period in 2024. This turnaround was achieved despite a 24.8% drop in revenue to $8.9 million. The company attributed the profit primarily to a "gain on disposal of discontinued operation," signaling that strategic cuts, not just operational improvements, were key to the positive bottom line.

A Sweeping Corporate Transformation

The financial report is the first major announcement following a comprehensive overhaul of the company's structure and leadership. The changes began on October 22, 2025, when a group of purchasers, including TUTU Business Services Limited, acquired a controlling stake of 86.82% of the company's shares from the previous owners.

This shift in ownership was swiftly followed by a complete C-suite shakeup. On November 3, 2025, the company saw the resignation of its Chairman, Chief Executive Officer, and Chief Financial Officer, among other key figures. On the same day, a new leadership team was installed, with Ms. Liying WANG appointed as Director and Chief Executive Officer, Ms. Hong WANG as Director and Chief Financial Officer, and Mr. Zhilin CAI as Chief Strategy Officer.

The rebranding was finalized on December 29, 2025, with the company officially changing its name from "Nature Wood Group Limited" to "CL Workshop Group Limited." This new identity marks a definitive break from the past, as the new leadership team charts a different course. Public records and professional networking sites offer limited background on the new principal shareholders and executives, leaving their specific track records and strategic intentions a subject of keen interest for investors and market analysts.

Navigating a Sea of Headwinds

The company's ability to eke out a profit comes against a challenging global backdrop that has battered the forestry and wood products industry. In its report, the firm cited a litany of pressures, including the "global economic downturn following the COVID-19 pandemic, the unfavorable conditions including the Russia-Ukraine war, the Israel-Palestine conflict and the downturn in property market in China."

These factors directly impacted demand and pricing, leading to the significant revenue decline. Revenue from continuing operations, which excludes a discontinued business segment, fell by a more modest 9.9% to $8.1 million. The company noted that the ongoing crisis in China's property sector and persistent US-China tariffs have particularly hampered sales in that key market.

In response, the new leadership has focused aggressively on financial discipline. Selling and distribution expenses were slashed by 26.2% to $1.0 million, a reduction attributed mainly to lower shipping costs that aligned with the drop in revenue. However, administrative expenses surged by 53.8% to $1.5 million, a cost the company stated was "primarily due to the increase in expense for the expansion of the product mix." This suggests the new team is simultaneously cutting costs in established operations while investing heavily in its strategic pivot.

A Strategic Pivot to Carbon and Plywood

At the heart of CL Workshop Group's new strategy is a determined push into new, potentially higher-margin markets to offset the volatility of its traditional wood products business. The company is actively developing two key revenue streams: decorative plywood and a "carbon sink business."

The move into decorative plywood targets the interior decoration and furniture industries, which are seeing growing demand for specialty and sustainably sourced materials. While the broader construction market remains uncertain, particularly in China, the specialty plywood segment can command premium prices and offer insulation from commodity price fluctuations.

More significantly, the company is positioning itself to capitalize on the burgeoning global carbon market. By leveraging its extensive forest assets and expertise in Forest Stewardship Council (FSC) certified management, CL Workshop Group intends to develop and trade carbon credits. The global market for carbon credits generated from agriculture, forestry, and other land use (AFOLU) is projected to grow exponentially, potentially reaching over $100 billion by 2034. As corporations worldwide pursue net-zero commitments, demand for high-quality, nature-based carbon offsets is soaring, creating what the company sees as a "large market opportunity with high margins."

Restructuring for Control and Growth

To empower the new leadership to execute this long-term vision, the company has fundamentally altered its corporate structure. Effective December 29, 2025, CL Workshop Group increased its authorized share capital to a massive 8 billion shares and re-classified them into a dual-class system.

The structure now consists of Class A shares, which carry one vote per share, and Class B shares, which carry 50 votes per share. This arrangement effectively concentrates voting power in the hands of the Class B shareholders, who are presumably the new controlling owners and management team. While such structures can insulate a company from short-term market pressures and hostile takeovers, they are often viewed critically by corporate governance advocates who worry about a lack of accountability to common shareholders.

This move signals a clear intent by the new owners to maintain firm control over the company's strategic direction without the risk of interference from activist investors or the broader market. With the flexibility to issue new shares for future capital raises or acquisitions and a governance structure that entrenches their control, the new leadership of CL Workshop Group has equipped itself with the tools it believes are necessary to navigate the current turbulence and build a business focused on the future of sustainable forestry and environmental markets. The success of this dramatic turnaround will now depend on their ability to execute this ambitious plan.