CL Workshop's Radical Rebirth Amidst Global Forestry Storm

MACAU – December 29, 2025 – In a move signaling a profound strategic pivot, Nature Wood Group Limited has officially been reborn as CL Workshop Group Limited. The name change, effective today, is the capstone on a tumultuous quarter that has seen the vertically-integrated forestry company undergo a complete change in ownership, install a new executive leadership team, and fundamentally restructure its corporate charter, all while navigating severe global economic headwinds.

This radical overhaul follows the release of the company's interim financial results for the first half of 2025, which presented a complex picture of its health. While the company celebrated a return to profitability, a deeper analysis reveals a business grappling with significant operational challenges, prompting a top-to-bottom transformation aimed at forging a new path forward in a volatile market.

A Deceptive Bottom Line

On the surface, CL Workshop's financial report for the six months ending June 30, 2025, showed a positive shift. The company posted a net profit of approximately $0.1 million, a welcome turnaround from the $0.6 million loss reported during the same period in 2024. However, this profit was not a product of a thriving core business. Instead, it was almost entirely attributable to a one-off gain from the disposal of a discontinued operation.

When stripping away this divestiture, the underlying performance reveals the strain the company is under. Total revenue plummeted by 24.8% to $8.9 million from $11.9 million in the first half of 2024. Revenue from continuing operations alone fell by 9.9% to $8.1 million. This decline reflects a sharp drop in demand for its wood products, a trend seen across the industry.

Compounding the revenue challenges, administrative expenses surged by a staggering 53.8%, climbing to $1.5 million. The company attributes this increase to investments made in expanding its product mix, a strategic gamble to find new avenues for growth. While selling and distribution costs decreased in line with falling sales, the ballooning administrative overhead underscores the difficult balancing act of investing for the future while managing present-day losses. This financial reality forms the stark backdrop for the sweeping changes that have redefined the company.

A Sweeping Corporate Overhaul

The transformation of CL Workshop Group has been swift and decisive. The first domino fell on October 22, 2025, when a consortium of new investors, led by the controlling shareholder TUTU Business Services Limited, acquired a commanding 86.82% of the company's outstanding shares. This transaction effectively wiped the slate clean at the ownership level.

Less than two weeks later, on November 3, a new leadership team was installed. Ms. Liying WANG was appointed as the new Chief Executive Officer, joined by Ms. Hong WANG as Chief Financial Officer and Mr. Zhilin CAI as Chief Strategy Officer. Their appointments coincided with the resignations of the previous chairman, CEO, and CFO, marking a complete break from the prior regime.

The final piece of the restructuring puzzle was put in place at the Annual General Meeting on December 16, where shareholders approved the official name change and a significant share reorganization. The company's authorized capital was increased to 8 billion shares, now divided into two classes. The newly created Class B Ordinary Shares carry a weighty 50 votes per share, a classic dual-class structure designed to consolidate control in the hands of the new ownership. This move provides the new leadership with the stability to execute a long-term strategy without being swayed by short-term market pressures, a crucial advantage given the challenges ahead.

Battling Fierce Global Headwinds

The company's struggles and subsequent transformation cannot be viewed in a vacuum. CL Workshop is operating in one of the most challenging global markets for forestry and wood products in recent memory. The revenue decline is a direct symptom of a multi-front crisis impacting the sector.

A global economic downturn has dampened consumer and industrial demand for wood products, while geopolitical conflicts, particularly the war in Ukraine, have severely disrupted global timber supply chains. Sanctions on Russia, a major timber exporter, have tightened the market and created volatility.

Perhaps the most significant factor is the protracted real estate slump in China, a critical market for global timber. With its property market—once nearly a third of its GDP—experiencing 41 consecutive months of falling prices as of this past October, China's appetite for imported softwood lumber has collapsed. Imports have fallen by nearly two-thirds since 2021, sending shockwaves through the supply chains of companies like CL Workshop. While recent government stimulus measures in China aim to revive the sector, any recovery is expected to be slow and arduous.

Forging New Paths to Growth

Faced with this daunting landscape, CL Workshop's new leadership is not standing still. The company is actively pursuing new revenue streams as part of its strategic pivot, focusing on two key areas: decorative plywood and the burgeoning carbon credit market.

The move into decorative plywood is an attempt to diversify its product offerings, though it comes with its own risks. Entering a new market segment during a period of reduced demand in the global construction and home renovation sectors presents a significant challenge.

More ambitious is the company's plan to generate income from carbon credits. The market for forest-based carbon credits—generated by projects that sequester carbon dioxide through activities like reforestation and sustainable forest management—is poised for explosive growth. Projections show the market could swell from $1.3 billion in 2021 to as much as $25 billion by 2030. CL Workshop's long-standing emphasis on Forest Stewardship Council (FSC) certified operations could give it a crucial advantage, as the integrity and credibility of carbon projects are paramount for buyers. By leveraging its forestry assets to participate in carbon markets, the company hopes to tap into a vital new income source that aligns with global sustainability trends, potentially offering a resilient revenue stream independent of the cyclical wood products market.