{"url_path":"/sec/nwgl/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 **","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-04-27","source_url":"https://www.sec.gov/Archives/edgar/data/1948294/0001493152-26-019023-index.html","accession_number":"0001493152-26-019023","cik":"0001948294","ticker":"NWGL","issuer_name":"CL Workshop Group Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1948294/0001493152-26-019023-index.html","primary_entity_key":"0001948294","primary_entity_name":"CL Workshop Group Ltd"},"word_count":19257,"has_tables":true,"body_markdown":"**ITEM\n19.**\n**EXHIBITS**\n\n \n\n**Exhibit\nNo.**\n\n \n\n**Description\nof Exhibit**\n\n1.1\n \n[Second Amended and Restated Memorandum and Articles of Association of the Company (incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 6-K filed with the Securities and Exchange Commission on November 12, 2025).](https://www.sec.gov/Archives/edgar/data/1948294/000149315225021796/ex99-4.htm)\n\n2.1\n \n[Form of Deposit Agreement, among the Registrant, the depositary and the holders and beneficial owners of American Depositary Shares issued thereunder (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form F-1 (Registration No. 333-271425) filed with the Securities and Exchange Commission on August 4, 2023).](https://www.sec.gov/Archives/edgar/data/1948294/000149315223026740/ex4-1.htm)\n\n2.2\n \n[Specimen American Depositary Receipt (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form F-1 (Registration No. 333-271425) filed with the Securities and Exchange Commission on August 4, 2023).](https://www.sec.gov/Archives/edgar/data/1948294/000149315223026740/ex4-1.htm)\n\n4.1*\n \n[Employment Agreement between Liying Wang and the registrant for the appointment of Director and Chief Executive Officer dated November 3, 2025.](ex4-1.htm)\n\n4.2*\n \n[Employment Agreement between Hong Wang and the registrant for the appointment of Director and Chief Financial Officer dated November 3, 2025.](ex4-2.htm)\n\n4.3\n \n[Form of Independent Director Agreement (incorporated by reference to Exhibit 10.5 to the Company’s Registration Statement on Form F-1 (Registration No. 333-271425) filed with the Securities and Exchange Commission on August 4, 2023).](https://www.sec.gov/Archives/edgar/data/1948294/000149315223026740/ex10-5.htm)\n\n4.4*\n \n[Sale and Purchase Agreement regarding the disposal on June 30, 2025](ex4-4.htm)\n\n8.1*\n \n[List of subsidiaries of the Registrant](ex8-1.htm)\n\n10.1\n \n[Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 6-K filed with the Securities and Exchange Commission on January 2, 2026).](https://www.sec.gov/Archives/edgar/data/1948294/000149315226000032/ex10-1.htm)\n\n11.1\n \n[Code of Business Conduct and Ethics of the Registrant (incorporated by reference to Exhibit 99.1 to the Company’s Registration Statement on Form F-1 (Registration No. 333-271425) filed with the Securities and Exchange Commission on August 4, 2023).](https://www.sec.gov/Archives/edgar/data/1948294/000149315223026740/ex99-1.htm)\n\n11.2*\n \n[Insider Trading Policy](ex11-2.htm)\n\n12.1*\n \n[CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex12-1.htm)\n\n12.2*\n \n[CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex12-2.htm)\n\n13.1*\n \n[CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex13-1.htm)\n\n13.2*\n \n[CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex13-2.htm)\n\n97*\n \n[Clawback Policy](ex97.htm)\n\n101.INS*\n \nInline\nXBRL Instance Document.\n\n101.SCH*\n \nInline\nXBRL Taxonomy Extension Schema Document\n\n101.CAL*\n \nInline\nXBRL Taxonomy Extension Calculation Linkbase Document\n\n101.DEF*\n \nInline\nXBRL Taxonomy Extension Definition Linkbase Document\n\n101.LAB*\n \nInline\nXBRL Taxonomy Extension Label Linkbase Document\n\n101.PRE*\n \nInline\nXBRL Taxonomy Extension Presentation Linkbase Document\n\n104*\n \nCover\nPage Interactive Data File (embedded within the Inline XBRL document)\n\n \n\n*\nFiled\nwith this annual report on Form 20-F\n\n \n\n77\n\n \n\n \n\n**SIGNATURES**\n\n \n\nThe\nregistrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized\nthe undersigned to sign this annual report on its behalf.\n\n \n\n \nCL\nWorkshop Group Limited\n\n \n \n \n\n \nBy:\n*/s/\nLiying Wang*\n\n \nName:\n\nLiying\nWang\n\n \nTitle:\nChief\nExecutive Officer\n\n \n\nDate:\nApril 23, 2026\n\n \n\n78\n\n \n\n** **\n\n**CL\nWORKSHOP GROUP LIMITED**\n\n \n\n**INDEX\nTO THE CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n \n**Page(s)**\n\n[Report of Independent Registered Public Accounting Firm](#sd_001) (PCAOB ID No. 1171)\nF-2\n\n[Consolidated Statement of Financial Position as of December 31, 2025 and 2024](#sd_002)\nF-3\n\n[Consolidated Statement of Profit or Loss and Other Comprehensive Income for the years ended December 31, 2025, 2024 and 2023](#sd_003)\nF-4\n\n[Consolidated Statement of Changes in Equity for the years ended December 31, 2025, 2024 and 2023](#sd_004)\nF-5\n\n[Consolidated Statement of Cash Flows for the years ended December 31, 2025, 2024 and 2023](#sd_005)\nF-6\n\n[Notes to Consolidated Financial Statements](#sd_006)\nF-7\n\n \n\nF-1\n\n \n\n \n\n**REPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n \n\nTo:\nThe\nBoard of Directors and Shareholders of\n\n \n\nCL\nWorkshop Group Limited\n\n \n\n**Opinion\non the Financial Statements**\n\n \n\nWe\nhave audited the accompanying consolidated statement of financial position of CL Workshop Group Limited and its subsidiaries (the “Company”)\nas of December 31, 2025, and 2024, and the related consolidated statements of profit or loss and other comprehensive income, changes\nin equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively\nreferred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial\nposition of the Company as of December 31, 2025, and 2024 and the results of its operations and its cash flows for each of the years\nin the three-year period ended December 31, 2025, in conformity with International Financial Reporting Standards.\n\n \n\n**Substantial\nDoubt about the Company’s Ability to Continue as a Going Concern**\n\n \n\nThe\naccompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As described\nin Note 2 to the consolidated financial statements, the Company has a net loss and negative operating cash-flows that raises doubt about\nits ability to continue as a going concern. Management’s plans in regarding to these matters are also described in Note 2. The\nconsolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion\nis not modified with respect to this matter.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board\n(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities\nlaws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error\nor fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits\nprovide a reasonable basis for our opinion.\n\n \n\n/s/\nWWC, P.C.\n\nWWC,\nP.C.\n\nCertified\nPublic Accountants\n\nPCAOB\nID No. 1171\n\n \n\nWe\nhave served as the Company’s auditor since 2022.\n\n \n\nSan\nMateo, California\n\nApril\n23, 2026\n\n \n\nF-2\n\n \n\n \n\n**CL\nWORKSHOP GROUP LIMITED AND ITS SUBSIDIARIES\nCONSOLIDATED STATEMENT OF FINANCIAL POSITION\nAS OF DECEMBER 31, 2025 AND 2024**\n\n \n\n  \nNote  \n2025  \n2024 \n\n  \n   \nUSD  \nUSD \n\n  \n   \n   \n  \n\nASSETS \n    \n    \n   \n\n  \n    \n    \n   \n\nNon-current assets \n    \n    \n   \n\nProperty, plant and equipment, net \n 4  \n 449,589  \n 3,404,826 \n\nRight-of-use assets, net \n 5  \n 85,134  \n 549,688 \n\nIntangible assets, net \n 6  \n -  \n 15,918,759 \n\nTotal non-current assets \n    \n 534,723  \n 19,873,273 \n\n  \n    \n    \n   \n\nCurrent assets \n    \n    \n   \n\nInventories \n 7  \n 2,484,290  \n 6,427,227 \n\nPrepayments \n 8  \n 5,168,362  \n 6,292,489 \n\nTrade and other receivables, net \n 9  \n 4,256,030  \n 4,166,506 \n\nPrepaid income tax \n    \n 74,972  \n 492,623 \n\nRestricted bank deposits \n 10  \n 253,188  \n 592,652 \n\nCash and bank balances \n 10  \n 966,807  \n 2,963,301 \n\nAsset classified as held for sale \n 29  \n 640,000  \n - \n\nTotal current assets \n    \n 13,843,649  \n 20,934,798 \n\n  \n    \n    \n   \n\nTotal assets \n    \n 14,378,372  \n 40,808,071 \n\n  \n    \n    \n   \n\nLIABILITIES AND EQUITY \n    \n    \n   \n\n  \n    \n    \n   \n\nCurrent liabilities \n    \n    \n   \n\nTrade and other payables \n 11  \n 3,955,210  \n 3,416,269 \n\nContract liabilities \n 12  \n 258,096  \n 2,774,460 \n\nBank borrowings \n 13(a) \n 5,622,926  \n 10,313,887 \n\nOther borrowings \n 13(b)/23 \n 356,431  \n 1,130,141 \n\nAmounts due to an ultimate beneficial shareholder \n 14/ 23  \n 310,696  \n 1,142,024 \n\nLease liabilities \n 15  \n 40,057  \n 121,335 \n\nIncome tax payable \n    \n 10,385  \n - \n\nTotal current liabilities \n    \n 10,553,801  \n 18,898,116 \n\n  \n    \n    \n   \n\nNet current assets \n    \n 3,289,848  \n 2,036,682 \n\n  \n    \n    \n   \n\nNon-current liabilities \n    \n    \n   \n\nBank borrowings \n 13(a) \n -  \n 39,103 \n\nAmounts due to an ultimate beneficial shareholder \n 14/ 23  \n -  \n 12,300,650 \n\nLease liabilities \n 15  \n 53,720  \n 462,110 \n\nTotal non-current liabilities \n    \n 53,720  \n 12,801,863 \n\n  \n    \n    \n   \n\nTotal liabilities \n    \n 10,607,521  \n 31,699,979 \n\n  \n    \n    \n   \n\nCapital and reserves \n    \n    \n   \n\nShare capital \n 16  \n 132,425  \n 132,425 \n\nCapital reserves \n    \n 30,052,790  \n 30,052,790 \n\nAccumulated comprehensive losses \n    \n (26,414,364) \n (21,077,123)\n\nTotal equity \n    \n 3,770,851  \n 9,108,092 \n\n  \n    \n    \n   \n\nTotal liabilities and equity \n    \n 14,378,372  \n 40,808,071 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-3\n\n \n\n \n\n**CL\nWORKSHOP GROUP LIMITED AND ITS SUBSIDIARIES**\n\n**CONSOLIDATED\nSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME**\n\n**FOR\nTHE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023**\n\n \n\n  \nNote  \n2025  \n2024  \n2023 \n\n  \n   \nUSD  \nUSD  \nUSD \n\n  \n    \n    \n    \n   \n\nRevenue \n 17  \n 14,584,171  \n 16,340,575  \n 17,673,473 \n\nCost of revenue \n    \n (13,183,875) \n (10,901,474) \n (10,514,343)\n\nGross profit \n    \n 1,400,296  \n 5,439,101  \n 7,159,130 \n\nNet foreign exchange (losses) gains \n    \n (28,858) \n (252,703) \n 10,291 \n\nOther income (losses), net \n 18  \n 67,792  \n (9,916) \n 19,550 \n\nImpairment loss (recognized on) reversal of financial asset and prepayment \n    \n (3,003,244) \n 182,659  \n (179,849)\n\nSelling and distribution expenses \n    \n (884,579) \n (3,297,035) \n (3,740,081)\n\nAdministrative expenses \n    \n (3,416,160) \n (2,381,439) \n (2,682,693)\n\nFinance income \n    \n 3,254  \n 13,361  \n 23,239 \n\nFinance costs \n 19  \n (503,286) \n (705,355) \n (1,362,668)\n\nLoss before income tax \n 20  \n (6,364,785) \n (1,011,327) \n (753,081)\n\nIncome tax (expenses) credits \n 21  \n (51,950) \n 73,515  \n 48,771 \n\nLoss from continuing operations \n    \n (6,416,735) \n (937,812) \n (704,310)\n\n  \n    \n    \n    \n   \n\nDiscontinued operations: \n    \n    \n    \n   \n\nNet loss from discontinued operations \n 28  \n (5,872,785) \n (7,790,717) \n (11,229,018)\n\nNet gain on sale of discontinued operations, net of applicable income tax \n 28  \n 6,433,304  \n -  \n - \n\nNet profit (loss) from discontinued operations \n    \n 560,519  \n (7,790,717) \n (11,229,018)\n\n  \n    \n    \n    \n   \n\nNet loss for the year \n    \n (5,856,216) \n (8,728,529) \n (11,933,328)\n\n  \n    \n    \n    \n   \n\nOther comprehensive income (loss): \n    \n    \n    \n   \n\nExchange difference arising from translation\nof foreign operations \n    \n 569,489  \n (223,777) \n 433,199 \n\nRelease of exchange reserve upon disposal of a subsidiary group \n    \n (50,514) \n (121,290) \n 2,076 \n\nOther comprehensive income (loss) \n    \n 518,975  \n (345,067) \n 435,275 \n\nTotal comprehensive loss for the year \n    \n (5,337,241) \n (9,073,596) \n (11,498,053)\n\n**LOSS PER SHARE – BASIC AND DILUTED (1)** \n    \n (0.04) \n (0.07) \n (0.11)\n\n**LOSS PER SHARE FROM CONTINUING OPERATION – BASIC AND DILUTED (1)** \n    \n (0.05) \n (0.01) \n (0.01)\n\n  \n    \n    \n    \n   \n\n**LOSS PER ADS – BASIC AND DILUTED (1)** \n    \n (0.35) \n (0.53) \n (0.85)\n\n**LOSS PER ADS FROM CONTINUING OPERATION – BASIC AND DILUTED (1)** \n    \n (0.39) \n (0.06) \n (0.05)\n\nLOSS PER SHARE \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nWeighted average number of ordinary shares used in computing basic and diluted loss per share/ADS (1) \n    \n 132,425,321  \n 132,425,321  \n 111,911,839 \n\n \n\nNotes:\n\n \n\n(1)\nEach\nADS represents eight Class A ordinary shares.\n\n \n\nF-4\n\n \n\n** **\n\n**CL\nWORKSHOP GROUP LIMITED AND ITS SUBSIDIARIES**\n\n**CONSOLIDATED\nSTATEMENT OF CHANGES IN EQUITY**\n\n** **\n\n  \nNote  \nShare capital  \nShare premium  \nStatutory Surplus reserve  \nOther reserve  \nTotal capital reserve  \nAccumulated other comprehensive losses  \nAccumulated (losses) profits  \nTotal accumulated comprehensive losses  \nTotal \n\n  \n   \n   \nCapital reserves  \nAccumulated comprehensive losses \n\n  \nNote  \nShare capital  \nShare premium  \nStatutory Surplus reserve  \nOther reserve  \nTotal capital reserve  \nAccumulated other comprehensive losses  \nAccumulated (losses) profits  \nTotal accumulated comprehensive losses  \nTotal \n\n  \n   \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n   \n   \n   \n   \n   \n   \n   \n  \n\nBalance at January 1, 2023 \n    \n 105,263  \n 12,834,431  \n 1,860  \n 55,596  \n 12,891,887  \n (863,669) \n 358,195  \n (505,474) \n 12,491,676 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nIssue of new shares \n 16  \n 27,162  \n 17,160,903  \n -  \n -  \n 17,160,903  \n -  \n -  \n -  \n 17,188,065 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nExchange difference arising from translation of foreign operations \n    \n -  \n -  \n -  \n -  \n -  \n 435,275  \n -  \n 435,275  \n 435,275 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nLoss for the year \n    \n -  \n -  \n -  \n -  \n -  \n -  \n (11,933,328) \n (11,933,328) \n (11,933,328)\n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nBalance at December 31, 2023 and January 1, 2024 \n    \n 132,425  \n 29,995,334  \n 1,860  \n 55,596  \n 30,052,790  \n (428,394) \n (11,575,133) \n (12,003,527) \n 18,181,688 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nExchange difference arising from translation of foreign operations \n    \n -  \n -  \n -  \n -  \n -  \n (345,067) \n -  \n (345,067) \n (345,067)\n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nLoss for the year \n    \n -  \n -  \n -  \n -  \n -  \n -  \n (8,728,529) \n (8,728,529) \n (8,728,529)\n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nBalance at December 31, 2024 and January 1, 2025 \n    \n 132,425  \n 29,995,334  \n 1,860  \n 55,596  \n 30,052,790  \n (773,461) \n (20,303,662) \n (21,077,123) \n 9,108,092 \n\nBalance \n    \n 132,425  \n 29,995,334  \n 1,860  \n 55,596  \n 30,052,790  \n (773,461) \n (20,303,662) \n (21,077,123) \n 9,108,092 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nExchange difference arising from translation of foreign operations \n    \n -  \n -  \n -  \n -  \n -  \n 518,975  \n -  \n 518,975  \n 518,975 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nLoss for the year \n    \n -  \n -  \n -  \n -  \n -  \n -  \n (5,856,216) \n (5,856,216) \n (5,856,216)\n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nBalance at December 31, 2025 \n    \n 132,425  \n 29,995,334  \n 1,860  \n 55,596  \n 30,052,790  \n (254,486) \n (26,159,878) \n (26,414,364) \n 3,770,851 \n\nBalance  \n    \n 132,425  \n 29,995,334  \n 1,860  \n 55,596  \n 30,052,790  \n (254,486) \n (26,159,878) \n (26,414,364) \n 3,770,851 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-5\n\n \n\n \n\n**CL\nWORKSHOP GROUP LIMITED AND ITS SUBSIDIARIES**\n\n**CONSOLIDATED\nSTATEMENT OF CASH FLOWS**\n\n**FOR\nTHE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023**\n\n \n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nOperating activities \n    \n    \n   \n\nLoss before income tax \n (6,364,785) \n (1,011,327) \n (753,081)\n\nAdjustments for: \n    \n    \n   \n\nProvision (reversal of) for allowance for expected credit losses on financial assets \n 985,619  \n (182,659) \n 179,849 \n\nImpairment on prepayment \n 2,017,624  \n -  \n - \n\nWrite-down of non-current asset held for sale \n 394,785  \n -  \n - \n\nWrite-down of inventories \n 241,503  \n 112,712  \n - \n\nDepreciation of property, plant and equipment \n 130,586  \n 38,520  \n 59,271 \n\nDepreciation of right-of-use asset \n 41,325  \n 39,693  \n 67,984 \n\nGain on lease modification \n -  \n -  \n (703)\n\n(Gain) loss on disposal of property, plant and equipment \n (62,693) \n (93) \n 18,873 \n\nInterest expenses \n 427,744  \n 603,984  \n 1,263,110 \n\nInterest income \n (3,254) \n (13,361) \n (23,239)\n\nOperating cash flows before movements in working capital \n (2,191,546) \n (412,532) \n 812,064 \n\nDecrease (increase) in inventories \n 638,508  \n 1,006,456  \n (476,154)\n\n(Increase) decrease in prepayments, trade and other receivables \n (5,490,387) \n 2,291,280  \n 512,825 \n\nIncrease (decrease) in trade and other payables \n 2,155,609  \n (875,877) \n (320,385)\n\nIncrease (decrease) in contract liabilities \n 90,587  \n 2,108,527  \n (134,269)\n\nCash (used in) generated from operations \n (4,797,229) \n 4,117,854  \n 394,080 \n\nIncome tax (paid) refunded \n (24,705) \n 48,621  \n (181,123)\n\nNet cash (used in) generated from continuing operation \n (4,821,934) \n 4,166,475  \n 212,957 \n\nNet cash generated from (used in) discontinued operation \n 3,915,067  \n (1,847,214) \n (452,185)\n\nNet cash (used in) generated from operating activities \n (906,867) \n 2,319,261  \n (239,228)\n\n  \n    \n    \n   \n\nInvesting activities \n    \n    \n   \n\nInterest received \n 3,254  \n 13,361  \n 23,239 \n\nPurchases of property, plant, and equipment \n (52,541) \n (1,393) \n (1,589)\n\nProceeds from disposal of property, plant and equipment \n 8,862  \n 93  \n - \n\nDecrease (increase) in restricted bank deposits \n 339,464  \n 35,504  \n (24,815)\n\nNet cash generated from (used in) continuing operation \n 299,039  \n 47,565  \n (3,165)\n\nNet cash used in discontinued operation \n (241,020) \n (752,366) \n (1,150,104)\n\nNet cash generated from (used in) investing activities \n 58,019  \n (704,801) \n (1,153,269)\n\n  \n    \n    \n   \n\nFinancing activities \n    \n    \n   \n\nAdvances from an ultimate beneficial shareholder \n 845,804  \n 1,430,102  \n 2,556,416 \n\nRepayments to an ultimate beneficial shareholder \n (1,058,866) \n (942,902) \n (6,302,442)\n\nProceeds from bank borrowings \n 17,720,505  \n 25,974,854  \n 19,445,302 \n\nRepayments of bank borrowings \n (21,399,521) \n (27,144,846) \n (20,925,687)\n\nProceeds from other borrowings \n 3,331,307  \n 963,547  \n 663,211 \n\nRepayments of other borrowings \n (287,302) \n (498,220) \n - \n\nRepayments of lease liabilities \n (42,173) \n (38,504) \n (74,247)\n\nProceeds from issue of shares, net of expenses \n -  \n -  \n 5,092,321 \n\nInterest paid \n (427,744) \n (603,984) \n (1,263,110)\n\nNet cash used in continuing operation \n (1,317,990) \n (859,953) \n (808,236)\n\nNet cash (used in) generated from discontinued operation \n (927,075) \n (1,185,033) \n 521,411 \n\nNet cash used in financing activities \n (2,245,065) \n (2,044,986) \n (286,825)\n\n  \n    \n    \n   \n\nNet decrease in cash and cash equivalents \n (3,093,913) \n (430,526) \n (1,679,322)\n\nCash and bank balances at beginning of year \n 2,963,301  \n 3,979,416  \n 5,082,587 \n\nEffect of foreign exchange rate changes \n 1,097,419  \n (585,589) \n 576,151 \n\nCash and bank balances at end of year \n 966,807  \n 2,963,301  \n 3,979,416 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-6\n\n \n\n \n\n**CL\nWORKSHOP GROUP LIMITED AND ITS SUBSIDIARIES**\n\n**NOTES\nTO THE CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n**1**\n**ORGANIZATION\nAND PRINCIPAL ACTIVITIES**\n\n \n\n**Organization\nand reorganization**\n\n \n\nCL\nWorkshop Group Limited (the “Company” or the “Group”) was incorporated in the British Virgin Islands on September\n22, 2011. The registered office of the Company is 4th Floor, Water’s Edge Building, Meridian Plaza, Road Town, Tortola,\nVG1110, British Virgin Islands. The principal place of business of the Company is Avenida da Amizade n.o1287, Chong Fok Centro Comercial,\n13 E Macau S.A.R.\n\n \n\nPursuant\nto a proposal approved at the annual general meeting of the Company held on December 16, 2025, the shareholders have approved the Company’s\nname be changed from “Nature Wood Group Limited” to “CL Workshop Group Limited” and the Company’s foreign\nname is to be changed from “大自然林業集團有限公司” to\n“刺梨工坊公司”. The change has become effective on December 18, 2025.\n\n \n\nThe\nGroup’s principal subsidiaries, as of the date of this report, are set out below:\n\n SCHEDULE OF PRINCIPAL SUBSIDIARIES\n\nPercentage of effective ownership\n\nName \nDate of\nincorporation \nDecember 31,\n\n2025 \nDecember 31,\n\n2024  \n\n**Place of**\n\n**incorporation**\n \nPrincipal\nactivities\n\n  \n  \n% \n%  \n  \n \n\nSwift Top Capital Resources Limited \nNovember 20, 2012 \n100 \n 100  \nHong Kong \nTrading of logs\n\nParquet Nature (France) S.A.R.L. \nAugust 21, 2012 \n100 \n 100  \nFrance \nTrading of logs\n\nChoi Chon Investment Company Limited \nMarch 12, 2015 \n100 \n 100  \nMacau \nTrading of wood products\n\nSouth American Wood S.A.C. \nDecember 16, 2019 \n100 \n 100  \nPeru \nTrading of wood products\n\nNature Carbon Peru S.A.C. \nMay 6, 2025 \n100 \n -  \nPeru \nTrading of wood products\n\n \n\n**Principal\nactivities**\n\n \n\nThe\nCompany is an investment holding company. The principal activities of the Company are conducted through its subsidiaries which are in\nthe business of trading of wood products and logs. The Company is headquartered in Macau and conducts its primary operations through\nits significant direct and indirectly held subsidiaries that are incorporated and domiciled in Peru, France, Macau and Hong Kong.\n\n \n\n**2**\n**SUMMARY\nOF MATERIAL ACCOUNTING POLICY INFORMATION**\n\n \n\n**BASIS\nOF ACCOUNTING** - The consolidated financial statements have been prepared in accordance with the historical cost basis, except as\ndisclosed in the accounting policies below, and in accordance with International Financial Reporting Standards (or “IFRSs”)\nas issued by the International Accounting Standards Board (the “IASB”).\n\n \n\nHistorical\ncost is generally based on the fair value of the consideration given in exchange for goods and services.\n\n \n\nF-7\n\n \n\n \n\nFair\nvalue is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants\nat the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating\nthe fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants\nwould take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement\nand/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions\nthat are within the scope of IFRS 2 *Share-based Payment*, leasing transactions that are accounted for in accordance with IFRS 16\n*Leases*, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS\n2 *Inventories* or value in use in IAS 36 *Impairment of Assets*.\n\n \n\nIn\naddition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which\nthe inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety,\nwhich are described as follows:\n\n \n\n \n●\nLevel\n1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement\ndate;\n\n \n \n \n\n \n●\nLevel\n2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly\nor indirectly; and\n\n \n \n \n\n \n●\nLevel\n3 inputs are unobservable inputs for the asset or liability.\n\n \n\n**ADOPTION\nOF NEW AND REVISED STANDARDS** – The Group has applied the following amendments to IFRSs issued by the IASB to these consolidated\nfinancial statements for the current accounting period:\n\n \n\n \n●\nAmendments\nto IAS 21, *The Effects of Changes in Foreign Exchange Rates*- *Lack of Exchangeability*\n\n \n\nThe\ngroup has adopted the amendments to IAS 21 for the first time in the current year. The amendments specify how to assess whether a currency\nis exchangeable, and how to determine the exchange rate when it is not.\n\n \n\nAt\nthe date of authorization of these consolidated financial statements, the management determined that the adoption of the above amendments\nto IFRS have not had any material impact on the consolidated financial statements of the Group in the period of their initial adoption.\n\n \n\n**NEW\nAND REVISED IFRS STANDARDS IN ISSUE BUT NOT YET EFFECTIVE** – At the date of authorization of these consolidated financial statements,\nthe Group has not adopted the following new and revised IFRSs and amendments to IFRS that have been issued but are not yet effective\nto them.\n\n \n\n \n●\nAmendments\nto IFRS 9 and IFRS 7, *Amendments to the Classification and Measurement of Financial Instruments*\n\n \n\n \n\n●\nAnnual\nImprovements to IFRS Accounting Standards – Volume 11, *Amendments to IFRS 1 First-time Adoption of International Financial\nReporting Standards, IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7, IFRS 9 Financial\nInstruments, IFRS 10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows*\n\n \n●\nAmendments\nto IFRS 9 and IFRS 7, *Contracts Referencing Nature-dependent Electricity*\n\n \n●\nAmendments\nto IFRS 18, *Presentation and Disclosures in Financial Statements*\n\n \n●\nAmendments\nto IFRS 19, *Subsidiaries without Public Accountability: Disclosures*\n\n \n\nThe\nCompany do not expect that the adoption of the standards listed above will have a material impact on the consolidated financial statements\nof the group in future periods.\n\n \n\nThe\npreparation of these consolidated financial statements in conformity with IFRS requires management to exercise its judgement in the process\nof applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions.\nThe areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the consolidated\nfinancial statements are disclosed in Note 3.\n\n \n\nF-8\n\n \n\n \n\n**GOING\nCONCERN AND MANAGEMENT’S PLAN**\n\n \n\nThe\nGroup incurred a net loss of USD 5,856,216 and net operating cash outflows of USD 906,867 for the year ended December 31, 2025.\n\n \n\nThe\nGroup has developed plans to address these conditions and to meet its cash requirements for the 12-month period from the reporting date.\nThese plans include improving liquidity through cost control measures, revenue growth initiatives, obtaining financing from banks, controlling\nshareholders or investors, and enhancing operational efficiency through cost reduction and process standardization. The Group’s\nability to continue as a going concern is dependent upon the successful execution of these plans, particularly obtaining the necessary\nfinancing.\n\n \n\nThese\nconditions indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue\nas a going concern. The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will\nbe able to realise its assets and discharge its liabilities in the normal course of business.\n\n \n\n**BASIS\nOF CONSOLIDATION**\n\n \n\nThe\nGroup consolidates the accounts of its subsidiaries and eliminates all significant intercompany balances and transactions in its consolidated\nfinancial statements.\n\n \n\nSubsidiary\ncorporations are all entities (including structured entities) over which the Group has control. The Group controls an entity when the\nGroup is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns\nthrough its power over the entity. Subsidiary corporations are fully consolidated from the date on which control is transferred to the\nGroup. They are deconsolidated from the date on that control ceases.\n\n \n\nIn\npreparing the consolidated financial statements, transactions, balances, and unrealized gains on transactions between group entities\nare eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred\nasset. Accounting policies of subsidiary corporations have been changed where necessary to ensure consistency with the policies adopted\nby the Group.\n\n \n\nAcquisition\nof entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the consolidated\nfinancial statements of the Company are a continuation of the acquired entities and is accounted for as follows:\n\n \n\n \n(i)\nThe\nresults of entities are presented as if the internal reorganization occurred from the beginning of the earliest period presented\nin the consolidated financial statements;\n\n \n \n \n\n \n(ii)\nThe\nCompany will consolidate the assets and liabilities of the acquired entities at the pre-combination carrying amounts. No adjustments\nare made to reflect fair values, or recognize any new assets or liabilities, at the date of the internal reorganization that would\notherwise be done under the acquisition method; and\n\n \n \n \n\n \n(iii)\nNo\nnew goodwill is recognized as a result of the internal reorganization. The only goodwill that is recognized is the existing goodwill\nrelating to the combining entities. Any difference between the consideration paid/transferred and the equity acquired is reflected\nwithin equity as merger reserve or deficit.\n\n \n\n**FINANCIAL\nASSETS**\n\n \n\n \n*(a)*\n*Classification\nand measurement*\n\n \n\nThe\nGroup reclassifies debt instruments when and only when its business model for managing those assets changes.\n\n \n\n*At\nsubsequent measurement - Debt instrument -*Debt instruments mainly comprise of trade and other receivables (excluding prepayments),\nrestricted bank deposits, cash and bank balances.\n\n \n\nDebt\ninstruments that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and\ninterest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not\npart of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these\nfinancial assets is included in interest income using the effective interest rate method.\n\n \n\nF-9\n\n \n\n \n\n \n*(b)*\n*Impairment*\n\n \n\nThe\nGroup recognizes a loss allowance for ECL on financial assets which are subject to impairment assessment under IFRS 9. The amount of\nECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.\nThe Group always recognizes lifetime ECL for accounts receivables. The ECL on these financial assets are estimated using a provision\nmatrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic\nconditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time\nvalue of money where appropriate. For all other financial instruments, the Group measures the loss allowance equal to 12-month ECL, unless\nwhen there has a significant increase in credit risk since initial recognition, the Group recognizes lifetime ECL. The assessment of\nwhether lifetime ECL should be recognized is based on significant increase in the likelihood or risk of a default occurring since initial\nrecognition.\n\n \n\n*Significant\nincrease in credit risk*\n\n \n\nIn\nassessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring\non the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date\nof initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable\nand supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking\ninformation considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic\nexpert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organizations, as well as consideration\nof various external sources of actual and forecast economic information that relate to the Group’s operations.\n\n \n\nIn\nparticular, the following information is taken into account when assessing whether credit risk has increased significantly:\n\n \n\n \n●\nan\nactual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;\n\n \n \n \n\n \n●\nsignificant\ndeterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default\nswap prices for the debtor;\n\n \n \n \n\n \n●\nexisting\nor forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the\ndebtor’s ability to meet its debt obligations;\n\n \n \n \n\n \n●\nan\nactual or expected significant deterioration in the operating results of the debtor;\n\n \n \n \n\n \n●\nsignificant\nincreases in credit risk on other financial instruments of the same debtor;\n\n \n \n \n\n \n●\nan\nactual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results\nin a significant decrease in the debtor’s ability to meet its debt obligations.\n\n \n\nIrrespective\nof the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition\nwhen contractual payments are more than 60 days past due, unless the Group has reasonable and supportable information that demonstrates\notherwise.\n\n \n\n \n*(c)*\n*Recognition\nand derecognition*\n\n \n\nRegular\nway purchases and sales of financial assets are recognized on trade date – the date on which the Group commits to purchase or sell\nthe asset.\n\n \n\nFinancial\nassets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the\nGroup has transferred substantially all risks and rewards of ownership.\n\n \n\nOn\ndisposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss.\n\n \n\nF-10\n\n \n\n \n\n**Financial\nliabilities and equity instruments**\n\n \n\n*Classification\nas debt or equity*\n\n \n\nDebt\nand equity instruments issued by a Group entity are classified as either financial liabilities or as equity in accordance with substance\nof the contractual arrangements and the definitions of a financial liability and an equity instrument.\n\n \n\n*Equity\ninstruments*\n\n \n\nAn\nequity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.\nEquity instruments issued by a Group are recognized at the proceeds received, net of direct issue costs.\n\n \n\n*Financial\nliabilities*\n\n \n\nExcept\nfor derivative financial instruments which are stated at fair value through profit or loss, all other financial liabilities are subsequently\nmeasured at amortized cost using the effective interest method.\n\n \n\nConvertible\nbonds\n\n \n\nConvertible\nbonds that can be converted to equity share capital at the option of the holder, where the number of shares that would be issued on conversion\nand the value of the consideration that would be received at that time do not vary, are accounted for as compound financial instruments\nwhich contain a liability component, a derivative component, and an equity component. Convertible bonds issued by the Group that contain\nboth financial liability and equity components are classified separately into respective liability, derivative and equity components\non initial recognition. On initial recognition, the fair value of the liability component is determined using the prevailing market interest\nrate for similar non-convertible debts. The difference between the proceeds of the issue of the convertible bonds and the fair value\nassigned to the liability component, representing the call option for conversion of the convertible bonds into equity, is included in\nequity as convertible bonds reserve. The liability component is subsequently carried at amortized cost using the effective interest method.\nThe equity component will remain in equity until conversion or redemption of the bond. When the convertible bond is converted, the equity\ncomponent of convertible bond and the carrying value of the liability component at the time of conversion are transferred to share capital\nand share premium as consideration for the shares issued. If the bond is redeemed, the convertible bonds reserve is released directly\nto retained profits.\n\n \n\nThe\neffective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over\nthe relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees\nand points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)\nthrough the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized cost of a financial liability.\n\n \n\n*Derecognition\nof financial liabilities*\n\n \n\nThe\nGroup derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The\ndifference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any\nnon-cash assets transferred or liabilities assumed, is recognized in profit or loss.\n\n \n\n*Offsetting\nfinancial instruments*\n\n \n\nFinancial\nassets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset\nand there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.\n\n \n\nF-11\n\n \n\n \n\n**SHARE-BASED\nPAYMENTS**\n\n \n\n*Equity-settled\nshare-based payment transactions*\n\n \n\nShare\noptions granted to employees\n\n \n\nEquity-settled\nshare-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the\ngrant date.\n\n \n\nThe\nfair value of the equity-settled share-based payments determined at the grant date without taking into consideration all non- market\nvesting conditions is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments\nthat will eventually vest, with a corresponding increase in equity (share-based payments reserve). At the end of each reporting period,\nthe Group revises its estimate of the number of equity instruments expected to vest based on assessment of all relevant non-market vesting\nconditions. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense\nreflects the revised estimate, with a corresponding adjustment to the share-based payments reserve. For shares/share options that vest\nimmediately at the date of grant, the fair value of the shares/share options granted is expensed immediately to profit or loss.\n\n \n\nWhen\nshare options are exercised, the amount previously recognized in share-based payments reserve will be transferred to share capital and\nshare premium. When the share options are forfeited after the vesting date or are still not exercised at the expiry date, the amount\npreviously recognized in share-based payments reserve will continue to be held in share-based payments reserve/will be transferred to\nretained earnings.\n\n \n\n When\nshares granted are vested, the amount previously recognized in share-based payments reserve will be transferred to share capital and\nshare premium.\n\n \n\n**PROPERTY,\nPLANT AND EQUIPMENT**\n\n \n\n \n*(a)*\n*Measurement*\n\n \n\n \n*(i)*\n*Property,\nplant and equipment*\n\n \n \n \n\n \n \nProperty*,\nplant*and equipment are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated\nimpairment losses.\n\n \n \n \n\n \n*(ii)*\n*Components\nof costs*\n\n \n \n \n\n \n \nThe\ncost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable\nto bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.\n\n \n\n \n*(b)*\n*Depreciation*\n\n \n\nDepreciation\non other items of property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over\ntheir estimated useful lives as followed;\n\n SCHEDULE OF ESTIMATED USEFUL LIVES\n\nProperties\n \n20\nyears\n\nMachineries\n \n10\nyears\n\nMotor\nvehicles\n \n5\nyears\n\nFurniture\nand fittings\n \n4\n– 5 years\n\nOffice\nequipment\n \n4\n– 5 years\n\nLeasehold\nImprovements\n \n5\nyears\n\n \n\nNo\ndepreciation is charged on freehold lands and construction in progress.\n\n \n\nThe\nresidual values estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate,\nat each balance sheet date. The effects of any revision are recognized in profit or loss when the changes arise.\n\n \n\nF-12\n\n \n\n \n\nCapitalization\nof these costs ceases and the construction in progress is transferred to property, plant and equipment when all of the activities necessary\nto prepare the assets for their intended use are substantially complete. No depreciation is provided in respect of construction in progress.\n\n \n\n \n*(c)*\n*Subsequent\nexpenditure*\n\n \n\nSubsequent\nexpenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when\nit is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured\nreliably. All other repair and maintenance expenses are recognized in profit or loss when incurred.\n\n \n\n \n*(d)*\n*Disposal*\n\n \n\nOn\ndisposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in\nprofit or loss within “Other losses - net”.\n\n \n\n**INTANGIBLE\nASSETS -**Timber concessions and cutting rights with finite useful lives, which give the Group rights to harvest trees in the allocated\nconcession forests in designated areas in Peru.\n\n \n\nIntangible\nassets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at\nthe acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination\nwith finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Timber concessions\nand cutting rights are amortized on a straight-line basis, over the terms of license of respective timber concessions and cutting rights.\n\n \n\nOther\nintangible assets are initially recognized at cost less accumulated amortization and accumulated impairment losses.\n\n \n\nAn\nintangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains and losses\nfrom de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the\nassets, are recognized in profit or loss when the asset is derecognized.\n\n \n\n**IMPAIRMENT\nOF NON-FINANCIAL ASSETS -**Intangible assets and property, plant and equipment are tested for impairment whenever there is any objective\nevidence or indication that these assets may be impaired.\n\n \n\nFor\nthe purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use)\nis determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from\nother assets. If this is the case, the recoverable amount is determined for the Cash Generating units (“CGU”) to which the\nasset belongs.\n\n \n\nIf\nthe recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU)\nis reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment\nloss in profit or loss.\n\n \n\nAn\nimpairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s\nrecoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable\namount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization\nor depreciation) had no impairment loss been recognized for the asset in prior years.\n\n \n\nA\nreversal of impairment loss for an asset other than goodwill is recognized in profit or loss.\n\n \n\n**INVENTORIES**\n\n \n\nInventories\nof manufactured products, logs, timbers, and other raw materials are valued at the lower of weighted average cost and net realizable\nvalue. Processing materials and supplies are valued at the lower of weighted average cost and replacement cost.\n\n \n\nF-13\n\n \n\n \n\n**NON-CURRENT\nASSETS HELD FOR SALE AND DISCONTINUED OPERATION**\n\n \n\nInventories\nof non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.\n\n \n\nNon-current\nassets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing\nuse. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present\ncondition. Management must be committed to the sale which should be expected to qualify for recognition as a completed sale within one\nyear from the date of classification.\n\n \n\nAn\nimpairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised\nfor any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously\nrecognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition.\n\n \n\nA\ndiscontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a\nseparate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of\nbusiness or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations\nare presented separately in the statement of profit or loss.\n\n \n\n**LEASES**\n\n \n\n*When\nthe Group is the lessee*\n\n \n\nAt\nthe inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys\nthe right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required\nwhen the terms and conditions of the contract are changed.\n\n \n\n \n●\nRight-of-use\nassets\n\n \n\nThe\nGroup recognizes a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets\nare measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the\ncommencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been\nobtained are added to the carrying amount of the right- of-use assets.\n\n \n\nThe\nright-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of\nthe useful life of the right-of-use asset or the end of the lease term.\n\n \n\n \n●\nLease\nliabilities\n\n \n\nThe\ninitial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in\nthe lease if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing\nrate.\n\n \n\nLease\npayments include the following:\n\n \n\n \n-\nFixed\npayment (including in-substance fixed payments), less any lease incentives receivables;\n\n \n-\nVariable\nlease payment that are based on an index or rate, initially measured using the index or rate as at the commencement date;\n\n \n-\nAmount\nexpected to be payable under residual value guarantees;\n\n \n-\nThe\nexercise price of a purchase option if is reasonably certain to exercise the option; and\n\n \n-\nPayment\nof penalties for terminating the lease, if the lease term reflects the Group exercising that option.\n\n \n\nFor\ncontracts that contain both lease and non-lease components, the Group allocates the consideration to each lease component on the basis\nof the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-lease component\nfor property leases and account these as one single lease component.\n\n \n\nF-14\n\n \n\n \n\nLease\nliability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when:\n\n \n\n \n-\nThere\nis a change in future lease payments arising from changes in an index or rate;\n\n \n-\nThere\nis a change in the Group’s assessment of whether it will exercise an extension option; or\n\n \n-\nThere\nis modification in the scope or the consideration of the lease that was not part of the original term.\n\n \n\nLease\nliability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying\namount of the right-of-use asset has been reduced to zero.\n\n \n\n \n●\nShort-term\nand low-value leases\n\n \n\nThe\nGroup has elected to not recognized right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months\nor less and leases of low value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis\nover the lease term.\n\n \n\n \n●\nVariable\nlease payments\n\n \n\nVariable\nlease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease\nliability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments.\n\n \n\n**EMPLOYEE\nBENEFITS -**Employee benefits are recognized as an expense unless the cost qualifies to be capitalized as an asset.\n\n \n\n \n*(a)*\n*Defined\ncontribution plans*\n\n \n\nDefined\ncontribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the\nCentral Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions\nhave been paid.\n\n \n\n \n*(b)*\n*Employee\nleave entitlement*\n\n \n\nEmployee\nentitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual\nleave as a result of services rendered by employees up to the balance sheet date.\n\n \n\n**PROVISIONS\n-**Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable\nthat the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.\n\n \n\nThe\namount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the\nreporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the\ncash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.\n\n \n\nWhen\nsome or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is\nrecognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured\nreliably.\n\n \n\n**REVENUE\nRECOGNITION -**Revenue is recognized to depict the transfer of promised services to clients at an amount that reflects the consideration\nto which an entity expects to be entitled in exchange for those services. Specifically, the Company uses a five-step approach to recognize\nrevenue:\n\n \n\n \n●\nStep\n1: Identify the contract(s) with a client\n\n \n \n \n\n \n●\nStep\n2: Identify the performance obligations in the contract\n\n \n \n \n\n \n●\nStep\n3: Determine the transaction price\n\n \n\nF-15\n\n \n\n \n\n \n●\nStep\n4: Allocate the transaction price to the performance obligations in the contract\n\n \n \n \n\n \n●\nStep\n5: Recognize revenue when (or as) the Company satisfies a performance obligation\n\n \n\nThe\nCompany recognizes revenue when (or as) a performance obligation is satisfied, i.e., when “control” of the services underlying\nthe particular performance obligations is transferred to clients.\n\n \n\nA\nperformance obligation represents a service (or a bundle of services) that is distinct or a series of distinct services that are substantially\nthe same.\n\n \n\nControl\nis transferred overtime and revenue is recognized overtime by reference to the progress towards complete satisfaction of the relevant\nperformance obligation if one of the following criteria is met:\n\n \n\n \n●\nthe\nclient simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs;\n\n \n \n \n\n \n●\nthe\nCompany’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or\n\n \n \n \n\n \n●\nthe\nCompany’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right\nto payment for performance completed to date.\n\n \n\nOtherwise,\nrevenue is recognized at a point in time when the customer obtains control of the distinct service.\n\n \n\nAdvance\npayments received from clients are recognized as contract liabilities as the Group has not yet satisfied its performance obligation.\nContract liabilities are recognized as revenue when the Group satisfied its performance obligation. The Group may receive payment for\nservice prior to, or after it satisfies the performance obligation under a service agreement.\n\n \n\n**Income\nfrom sales of logs and manufactured wood products**\n\n \n\nRevenue\nfrom logs and wood products is recognized at a point in time when the goods are delivered and transferred to customers, being at the\npoint that the customer obtains the control of the goods (for export sales, it would be under the shipping terms of either Freight On\nBoard (“FOB”) or Cost, insurance, and freight (“CIF”); for local sales, it would be recognized upon delivery\nis made to customer’s designated receiving location) and the Group has presented right of payment and collection of the consideration\nis probable.\n\n \n\nThe\nGroup receives certain portion of the contract value as deposits from customers or receipts in advance from customers when they sign\nthe sale and purchase agreement.\n\n \n\nDeposits\nreceived on logs and wood products prior to the date of revenue recognition are recorded as contract liabilities under current liabilities.\n\n \n\nThe\nmanagement of the Group considers that there are no sales return and warranty policies for our international business.\n\n \n\n**GOVERNMENT\nGRANTS AND SUBSIDIES** - Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance\nthat the grant will be received and the Group will comply with all the attached conditions.\n\n \n\nGovernment\ngrants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to\ncompensate, on a systematic basis. Government grants relating to expenses are shown separately as other income.\n\n \n\nGrants\nrelated to assets are presented as deferred income under trade and other payables.\n\n \n\n**SHARE\nCAPITAL -**Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares\nare deducted against the capital reserves account.\n\n \n\nF-16\n\n \n\n \n\n**INCOME\nTAX** - Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax\nauthorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Management periodically\nevaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and\nconsiders whether it is probable that a tax authority will accept an uncertain tax treatment. The Group measures its tax balances either\nbased on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the\nuncertainty.\n\n \n\nDeferred\nincome tax is recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts\nin the consolidated financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset\nor liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time\nof the transaction.\n\n \n\nA\ndeferred income tax liability is recognized on temporary differences arising on investments in subsidiaries, associates and joint ventures,\nexcept where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary\ndifference will not reverse in the foreseeable future.\n\n \n\nA\ndeferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which\nthe deductible temporary differences and tax losses can be utilized.\n\n \n\nDeferred\nincome tax is measured:\n\n \n\n \n(i)\nat\nthe tax rates that are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability\nis settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date; and\n\n \n \n \n\n \n(ii)\nbased\non the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to recover or settle\nthe carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is\npresumed to be recovered entirely through sale.\n\n \n\nCurrent\nand deferred income taxes are recognized as income or expense in profit or loss, except to the extent that the tax arises from a business\ncombination or a transaction which is recognized directly in equity. Deferred tax arising from a business combination is adjusted against\ngoodwill on acquisition.\n\n \n\nThe\nGroup accounts for investment tax credits (for example, productivity and innovation credit) similar to accounting for other tax credits\nwhere a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be\navailable against which the unused tax credits can be utilized.\n\n \n\n**FOREIGN\nCURRENCY TRANSACTIONS**\n\n \n\n \n*(a)*\n*Functional\nand presentation currency*\n\n \n\nItems\nincluded in the financial statements of each entity in the Group are measured using the currency of the primary economic environment\nin which the entity operates (“functional currency”). The financial statements are presented in US Dollar (“USD”),\nHong Kong Dollar (“HKD”), China Yuan (“CNY”), Euro (“EUR”), Peruvian Sol (“PEN”) which\nis the functional currency of the Group and the Company.\n\n \n\nThe\nvalue of foreign currencies including, may fluctuate against the USD. Any significant variations of the aforementioned currencies relative\nto the USD may materially affect the Company’s financial condition in terms of reporting in USD. The following table outlines the\ncurrency exchange rates that were used in preparing the accompanying consolidated financial statements:\n\n SCHEDULE OF CURRENCY EXCHANGE RATE\n\n  \nDecember 31, \n\n  \n2025  \n2024  \n2023 \n\nHKD to USD Year End \n 0.129  \n 0.129  \n 0.128 \n\nHKD to USD Average Rate \n 0.129  \n 0.129  \n 0.128 \n\nCNY to USD Year End \n 0.142  \n 0.139  \n 0.141 \n\nCNY to USD Average Rate \n 0.141  \n 0.139  \n 0.141 \n\nEUR to USD Year End \n 1.172  \n 1.047  \n 1.110 \n\nEUR to USD Average Rate \n 1.160  \n 1.059  \n 1.099 \n\nPEN to USD Year End \n 0.297  \n 0.266  \n 0.270 \n\nPEN to USD Average Rate \n 0.281  \n 0.266  \n 0.268 \n\n \n\nF-17\n\n \n\n \n\n \n*(b)*\n*Transactions\nand balances*\n\n \n\nTransactions\nin a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the\nexchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and\nfrom the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date\nare recognized in profit or loss. Monetary items include primarily financial assets (other than equity investments), contract assets\nand financial liabilities. However, in the consolidated financial statements, currency translation differences arising from borrowings\nin foreign currencies and net investment in foreign operations, are recognized in other comprehensive income and accumulated in the currency\ntranslation reserve.\n\n \n\nWhen\na foreign operation is disposed of or any loan forming part of the net investment of the foreign operation is repaid, a proportionate\nshare of the accumulated currency translation differences is reclassified to profit or loss, as part of the gain or loss on disposal.\n\n \n\nNon-monetary\nitems measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined.\n\n \n\n \n*(c)*\n*Translation\nof Group entities’ financial statements*\n\n \n\nThe\nresults and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a\nfunctional currency different from the presentation currency are translated into the presentation currency as follows:\n\n \n\n \n(i)\nassets\nand liabilities are translated at the closing exchange rates at the reporting date;\n\n \n \n \n\n \n(ii)\nincome\nand expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect\nof the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the\ndates of the transactions); and\n\n \n \n \n\n \n(iii)\nall\nresulting currency translation differences are recognized in other comprehensive income and accumulated in the currency translation\nreserve. These currency translation differences are reclassified to profit or loss on disposal or partial disposal with loss of control\nof the foreign operation.\n\n \n\nGoodwill\nand fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operations\nand translated at the closing rates at the reporting date.\n\n \n\n**RELATED\nPARTIES**\n\n \n\n \n(a)\nA\nperson, or a close member of that person’s family, is related to the group if that person:\n\n \n\n \n(i)\nhas\ncontrol or joint control over the group;\n\n \n \n \n\n \n(ii)\nhas\nsignificant influence over the group; or\n\n \n \n \n\n \n(iii)\nis\na member of the key management personnel of the group or the group’s parent.\n\n \n\n \n(b)\nAn\nentity is related to the group if any of the following conditions applies:\n\n \n\n \n(i)\nThe\nentity and the group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to\nthe others).\n\n \n \n \n\n \n(ii)\nOne\nentity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the\nother entity is a member).\n\n \n \n \n\n \n(iii)\nBoth\nentities are joint ventures of the same third party.\n\n \n \n \n\n \n(iv)\nOne\nentity is a joint venture of a third entity and the other entity is an associate of the third entity.\n\n \n \n \n\n \n(v)\nThe\nentity is a post-employment benefit plan for the benefit of of either the group or an entity related to the group.\n\n \n \n \n\n \n(vi)\nThe\nentity is controlled or jointly controlled by a person identified in (a).\n\n \n\nF-18\n\n \n\n \n\n \n(vii)\nA\nperson identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity\n(or of a parent of the entity).\n\n \n \n \n\n \n(viii)\nThe\nentity, or any member of a group of which it is a part, provides key management personnel services to the group or to the group’s\nparent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that\nperson in their dealings with the entity.\n\n \n\n**EARNINGS\nPER SHARE** - The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated\nby dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted-average number of ordinary shares\noutstanding during the year, adjusted for own shares held, if any. Diluted earnings per share is determined by adjusting the profit or\nloss attributable to ordinary shareholders and the weighted-average number of ordinary shares outstanding, adjusted for own shares held,\nif any, for the effects of all dilutive potential ordinary shares.\n\n \n\n**SEGMENT\nREPORTING**– Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are\nidentified from the financial information provided regularly to the group’s most senior executive management for the purposes of\nallocating resources to, and assessing the performance of, the group’s various lines of business and geographical locations.\n\n \n\nIndividually\nmaterial operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics\nand are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers,\nthe methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments\nwhich are not individually material may be aggregated if they share a majority of these criteria.\n\n \n\n \n\n**3**\n**CRITICAL\nACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY**\n\n \n\nIn\nthe application of the Group’s accounting policies, which are described in Note 2 to the consolidated financial statements, management\nis required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent\nfrom other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered\nto be relevant. Actual results may differ from these estimates.\n\n \n\nThe\nestimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period\nin which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods.\n\n \n\n**Critical\njudgements in applying the Group’s accounting policies**\n\n \n\nThere\nare no critical judgements, apart from those involving estimation (see below) that the management has made in the process of applying\nthe Group’s accounting policy and that has the most significant effect on the amounts recognized in the consolidated financial\nstatements.\n\n \n\n**Key\nsources of estimation uncertainty**\n\n \n\nThe\nkey assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a\nsignificant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are\ndisclosed below:\n\n \n\n*Impairment\nof property, plant and equipment (Note 4) and intangible assets (Note 6)*\n\n \n\nDetermining\nan appropriate amount of an impairment requires an estimation of recoverable amounts of relevant property, plant and equipment and intangible\nassets or the respective cash-generating units (“CGU”) to which the property, plant and equipment and intangible assets belong,\nwhich is the higher of value in use and fair value less cost of disposal. If there is any indication that an asset may be impaired, the\nrecoverable amount shall be estimated for individual asset. If it is not possible to estimate the recoverable amount of the individual\nasset, the Group shall determine the recoverable amount of the CGU to which the asset belongs. The value in use calculation requires\nthe Group to estimate the future cash flows expected to arise from the relevant assets or the CGU and a suitable discount rate in order\nto calculate the present value. The discount rate represents rate that reflects current market assessments of time value of money and\nthe risks specific to the asset or the CGU for which the future cash flow estimates have not been adjusted. Where the actual future cash\nflows are less than expected or there is a downward revision of future estimated cash flows due to unfavourable changes in facts and\ncircumstances, an additional impairment loss may arise.\n\n \n\nF-19\n\n \n\n \n\n*Write-down\nof inventories (Note 7)*\n\n \n\nThe\nCompany performs regular reviews of the carrying amounts of inventories with reference to aged inventories analysis, projections of expected\nfuture saleability of goods and, management experience and judgement. Based on this review, a write-down of inventories will be made\nwhen the estimated net realizable value of inventories decline below their carrying amounts. Due to changes in market environment, actual\nsaleability of goods may be different from estimation and the consolidated statement of profit or loss in future accounting periods could\nbe affected by differences in their estimation.\n\n \n\n**4**\n**PROPERTY,\nPLANT AND EQUIPMENT, NET**\n\n SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT\n\n  \nFreehold land  \nProperties  \nLeasehold Improvements  \nConstruction in progress  \nMachineries  \nFurniture and fittings  \nMotor vehicles  \nOffice equipment  \nTotal \n\n  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD \n\nCost: \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nAt January 1, 2024 \n 1,546,665  \n 3,332,290  \n 24,223  \n -  \n 4,516,645  \n 43,437  \n 1,220,857  \n 63,160  \n 10,747,277 \n\nAdditions \n 888,605  \n 123,642  \n -  \n 8,420  \n 27,566  \n 2,136  \n 2,007  \n 2,383  \n 1,054,759 \n\nTransfer \n -  \n 8,420  \n -  \n (8,420) \n -  \n -  \n -  \n -  \n - \n\nDisposals \n -  \n -  \n -  \n -  \n -  \n -  \n (3,201) \n (617) \n (3,818)\n\nDisposal of subsidiaries \n -) \n -) \n -  \n -) \n -) \n -) \n -) \n -) \n -)\n\nExchange difference \n -  \n -  \n (356) \n -  \n (94) \n -  \n (6,420) \n (1,120) \n (7,990)\n\nAt December 31, 2024 and January 1, 2025 \n 2,435,270  \n 3,464,352  \n 23,867  \n -  \n 4,544,117  \n 45,573  \n 1,213,243  \n 63,806  \n 11,790,228 \n\nAdditions \n -  \n -  \n -  \n 110,426  \n 311,710  \n -  \n 102,782  \n 1,525  \n 526,443 \n\nReclassified as held for sale \n (888,605) \n (158,033) \n -  \n -  \n -  \n -  \n -  \n -  \n (1,046,638)\n\nDisposals \n -  \n -  \n -  \n -  \n (764,667) \n (23,967) \n (258,800) \n (3,864) \n (1,051,298)\n\nDisposal of subsidiaries \n (1,546,665) \n (3,306,319) \n -  \n (110,426) \n (3,519,604) \n (21,606) \n (351,169) \n (28,461) \n (8,884,250)\n\nExchange difference \n -  \n -  \n 542  \n -  \n 191  \n -  \n 12,374  \n 2,118  \n 15,225 \n\nAt December 31, 2025 \n -  \n -  \n 24,409  \n -  \n 571,747  \n -  \n 718,430  \n 35,124  \n 1,349,710 \n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nAccumulated depreciation: \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nAt January 1, 2024 \n -  \n (519,149) \n (21,147) \n -  \n (1,836,502) \n (20,653) \n (491,362) \n (51,755) \n (2,940,568)\n\nCharge for the year \n -  \n (16,940) \n (3,089) \n -  \n (162,400) \n (5,268) \n (220,604) \n (5,721) \n (414,022)\n\nEliminated upon disposals \n -  \n -  \n -  \n -  \n -  \n -  \n 2,347  \n 617  \n 2,964 \n\nDisposal of subsidiaries \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n - \n\nReclassified as held for sale \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n - \n\nExchange difference \n -  \n -  \n 369  \n -  \n (39) \n -  \n 4,509  \n 1,059  \n 5,898 \n\nAt December 31, 2024 and January 1, 2025 \n -  \n (536,089) \n (23,867) \n -  \n (1,998,941) \n (25,921) \n (705,110) \n (55,800) \n (3,345,728)\n\nCharge for the year \n -  \n (8,253) \n -  \n -  \n (47,840) \n (6,223) \n (82,967) \n (2,458) \n (147,741)\n\nEliminated upon disposals \n -  \n -  \n -  \n -  \n 513,971  \n 14,739  \n 211,514  \n 3,025  \n 743,249 \n\nDisposal of subsidiaries \n -  \n 532,489  \n -  \n -  \n 1,487,768  \n 17,405  \n 168,359  \n 24,480  \n 2,230,501 \n\nReclassified as held for sale \n -  \n 11,853  \n -  \n -  \n -  \n -  \n -  \n -  \n 11,853 \n\nExchange difference \n -  \n -  \n (542) \n -  \n (189) \n -  \n (9,902) \n (2,036) \n (12,669)\n\nAt December 31, 2025 \n -  \n -  \n (24,409) \n -  \n (45,231) \n -  \n (418,106) \n (32,789) \n (520,535)\n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nAccumulated impairment: \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nAt January 1, 2024 \n -  \n (2,575,694) \n -  \n -  \n (1,668,994) \n -  \n -  \n -  \n (4,244,688)\n\nBeginning balance \n -  \n (2,575,694) \n -  \n -  \n (1,668,994) \n -  \n -  \n -  \n (4,244,688)\n\nCharge for the year \n -  \n (202,663) \n -  \n -  \n (407,965) \n (4,306) \n (176,313) \n (3,739) \n (794,986)\n\nDisposal of subsidiaries \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n - \n\nAt December 31, 2024 and January 1, 2025 \n -  \n (2,778,357) \n -  \n -  \n (2,076,959) \n (4,306) \n (176,313) \n (3,739) \n (5,039,674)\n\nBeginning balance \n -  \n (2,778,357) \n -  \n -  \n (2,076,959) \n (4,306) \n (176,313) \n (3,739) \n (5,039,674)\n\nCharge for the year \n (543,035) \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n (543,035)\n\nDisposal of subsidiaries \n 543,035  \n 2,778,357  \n -  \n -  \n 1,791,218  \n 4,306  \n 82,468  \n 3,739  \n 5,203,123 \n\nAt December 31, 2025 \n -  \n -  \n -  \n -  \n (285,741) \n -  \n (93,845) \n -  \n (379,586)\n\nEnding balance \n -  \n -  \n -  \n -  \n (285,741) \n -  \n (93,845) \n -  \n (379,586)\n\n  \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nNet book value: \n    \n    \n    \n    \n    \n    \n    \n    \n   \n\nAt December 31, 2024 \n 2,435,270  \n 149,906  \n -  \n -  \n 468,217  \n 15,346  \n 331,820  \n 4,267  \n 3,404,826 \n\nAt December 31, 2025 \n -  \n -  \n -  \n -  \n 240,775  \n -  \n 206,479  \n 2,335  \n 449,589 \n\nEnding balance \n -  \n -  \n -  \n -  \n 240,775  \n -  \n 206,479  \n 2,335  \n 449,589 \n\n \n\nF-20\n\n \n\n \n\n**Impairment\nassessment**\n\n \n\nDuring\nthe reporting period and the last reporting period, certain subsidiaries operating in Peru represented Manufacturing Segment have been\nseverely affected by unfavorable market conditions arising in the construction and home improvement sector, which indicates that the\nproperty, plant and equipment of these subsidiaries may have impaired. The directors of the Company have therefore performed an impairment\nassessment on the property, plant and equipment of these subsidiaries at December 31, 2025 and 2024 respectively. As a result of the\nimpairment assessment, an impairment loss of USD543,035 was recognized in profit or loss during the reporting period (2024: USD794,986).\nThe recoverable amount of the relevant assets has been determined on the basis of the fair value less cost of disposal, by reference\nto market evidence of recent transactions for similar assets.\n\n \n\n**5**\n**RIGHT-OF-USE-ASSETS,\nNET**\n\n SCHEDULE OF RIGHT OF USE ASSETS\n\n  \n\n**Leased**\n\n**Properties**\n \n\n  \nUSD \n\nAt January 1, 2024 \n 189,009 \n\nAddition \n 458,237 \n\nLease modification \n (10,459)\n\nDepreciation charge for the year \n (83,314)\n\nDisposal of subsidiaries \n -)\n\nExchange difference \n (3,785)\n\nAt December 31, 2024 and January 1, 2025 \n 549,688 \n\nDepreciation charge for the year \n (87,149)\n\nDisposal of subsidiaries \n (381,864)\n\nExchange difference \n 4,459 \n\nAt December 31, 2025 \n 85,134 \n\n \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nExpense relating to short-term lease and other leases with lease terms end within 12 months \n 5,328  \n 30,965 \n\nTotal cash outflow for leases \n 106,071  \n 77,751 \n\n \n\nFor\nboth years, the Group leased offices for its operations. Lease contracts are entered into fixed terms from 5 year to 9 years (2024: 3\nyear to 9 years). No extension options are available for all leases. Lease terms are negotiated on an individual basis and contain wide\nrange of different terms and conditions. In determining the lease term and assessing the length of the non-cancellable period, the Group\napplies the definition of a contract and determines the period for which the contract is enforceable.\n\n \n\nAll\nleases are operating leases.\n\n \n\nF-21\n\n \n\n \n\n**6**\n**INTANGIBLE\nASSETS, NET**\n\n \n\nThe\nGroup currently owns certain natural forest concessions and cutting rights for the exploitation of timbers on parcels of land in Peru,\nwhich are subject to compliance of certain laws and regulations in Peru. The timber concessions and cutting rights have finite useful\nlives ranging from 23 to 40 years.\n\n SCHEDULE OF INTANGIBLE ASSETS\n\n  \nTimber concession and cutting rights  \nOthers  \nTotal \n\n  \nUSD  \nUSD  \nUSD \n\nCost: \n    \n    \n   \n\nAt January 1, 2024, December 31, 2024 and January 1, 2025 \n 25,939,922  \n 58,226  \n 25,998,148 \n\nCharge for the year \n    \n    \n   \n\nCharge for the year \n    \n    \n   \n\nExchange difference \n    \n    \n   \n\nDisposal of subsidiaries \n (25,939,922) \n (58,226) \n (25,998,148)\n\nDisposal of subsidiaries \n    \n    \n   \n\nAt December 31, 2025 \n -  \n -  \n - \n\n  \n    \n    \n   \n\nAccumulated amortization: \n    \n    \n   \n\nAt January 1, 2024 \n (5,451,285) \n (29,924) \n (5,481,209)\n\nCharge for the year \n (948,112) \n (6,486) \n (954,598)\n\nExchange difference \n -  \n (160) \n (160)\n\nAt December 31, 2024 and January 1, 2025 \n (6,399,397) \n (36,570) \n (6,435,967)\n\nCharge for the year \n (381,029) \n (4,297) \n (385,326)\n\nDisposal of subsidiaries \n 6,780,426  \n 40,867  \n 6,821,293 \n\nAt December 31, 2025 \n -  \n -  \n - \n\n  \n    \n    \n   \n\nAccumulated impairment: \n    \n    \n   \n\nAt January 1, 2024 \n -  \n -  \n - \n\nCharge for the year \n (3,643,422) \n -  \n (3,643,422)\n\nAt December 31, 2024 and January 1, 2025 \n (3,643,422) \n -  \n (3,643,422)\n\nIntangible assets, Beginning balance \n (3,643,422) \n -  \n (3,643,422)\n\nCharge for the year \n (4,022,938) \n -  \n (4,022,938)\n\nDisposal of subsidiaries \n 7,666,360  \n -  \n 7,666,360 \n\nAt December 31, 2025 \n -  \n -  \n - \n\nIntangible assets, Ending balance \n -  \n -  \n - \n\n  \n    \n    \n   \n\nNet book value: \n    \n    \n   \n\nAt December 31, 2024 \n 15,897,103  \n 21,656  \n 15,918,759 \n\nAt December 31, 2025 \n -  \n -  \n - \n\nIntangible assets, Ending balance \n -  \n -  \n - \n\n \n\n \n\n**7**\n**INVENTORIES**\n\n SCHEDULE OF INVENTORIES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nRaw materials \n -  \n 80,893 \n\nWork in progress \n -  \n 382,982 \n\nFinished goods \n 2,256,352  \n 5,652,593 \n\nSpare parts for production \n 227,938  \n 310,759 \n\nTotal \n 2,484,290  \n 6,427,227 \n\n \n\nNote:\nProvision for impairment of inventories amounted to USD354,215 as at December 31, 2025 (2024: USD1,385,512), of which USD241,503 (2024:\nUSD1,060,259) were recognised as an expense during the year ended December 31, 2025.\n\n \n\nF-22\n\n \n\n \n\n**8**\n**PREPAYMENTS**\n\n SUMMARY OF CURRENT AND NON-CURRENT PREPAYMENTS\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nAdvance payments made for: \n    \n   \n\nPurchase of flooring and decking products (Note 1) \n 4,809,834  \n 3,529,149 \n\nPurchase of logs (Note 2) \n 147,536  \n 257,458 \n\nHarvesting work in concessions and wood processing services (Note 3) \n -  \n 1,704,695 \n\nHarvesting cost (Note 4) \n -  \n 400,860 \n\nOthers (Note 5) \n 210,992  \n 400,327 \n\nTotal \n 5,168,362  \n 6,292,489 \n\nLess: Amounts to be utilized within 12 months shown under current assets \n (5,168,362) \n (6,292,489)\n\nAmounts to be utilized after 12 months shown under non-current assets \n -  \n - \n\n \n\n**Notes:**\n\n \n\n \n1.\nIncluded\nin the prepayments, USD4.8 million (2024: USD3.5 million) was advanced for the purchase of flooring and decking products in order\nto secure our supply chain of wood products to our customers.\n\n \n \n \n\n \n2.\nIncluded\nin the prepayments, USD0.1 million (2024: USD0.3 million) was advanced for the purchase of logs in Peru to secure the raw materials\nsupply for our wood processing for production. Provision for impairment of prepayments amounted to USD17,794 for the year ended December\n31, 2025.\n\n \n \n \n\n \n3.\nIncluded\nin the prepayments, nil (2024: USD1.7 million) was advanced for harvesting work in our timber concessions and wood processing services.\nProvision for impairment of prepayments amounted to USD1.8 million for the year ended December 31, 2025 (2024: USD35,465).\n\n \n \n \n\n \n4.\nIncluded\nin the prepayments, nil (2024: USD0.4 million) was the harvesting cost to be transferred to inventories upon the receipt of logs.\nProvision for impairment of prepayments amounted to nil as at December 31, 2025 (2024: USD624,423)\n\n \n \n \n\n \n5.\nRemaining\namounts of the prepayments were advance payments made to Group’s operating expenses. Provision for impairment of prepayments\namounted to USD230,485 for the year ended December 31, 2025.\n\n \n\n \n\n**9**\n**TRADE\nAND OTHER RECEIVABLES, NET**\n\n SCHEDULE OF TRADE AND OTHER RECEIVABLES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nTrade receivables – contracts with customers \n 3,015,429  \n 1,638,529 \n\nLess: Allowance for credit losses \n (893,848) \n (167,177)\n\nTrade receivables, net \n 2,121,581  \n 1,471,352 \n\n  \n    \n   \n\nOther receivables \n 2,296,947  \n 2,695,154 \n\nLess: Allowance for credit losses \n (162,498) \n - \n\nOther receivables, net \n 2,134,449  \n 2,695,154 \n\nTotal \n 4,256,030  \n 4,166,506 \n\n  \n    \n   \n\nMovement in the above allowance for credit losses of trade receivables: \n    \n   \n\nBeginning balance \n 167,177  \n 483,153 \n\nDisposal of subsidiaries \n (80,865) \n - \n\nCharged (Credited) for the year \n 807,536  \n (315,976)\n\nEnding balance \n 893,848  \n 167,177 \n\n  \n    \n   \n\nMovement in the above allowance for credit losses of other receivables: \n    \n   \n\nBeginning balance \n -  \n - \n\nDisposal of subsidiaries \n (589,907) \n   \n\nCharged (Credited) for the year \n 752,405  \n - \n\nEnding balance \n 162,498  \n - \n\n \n\nF-23\n\n \n\n \n\nThe\nnormal credit period for customers is ranging from 30 to 90 days. No interest is charged on the outstanding balances.\n\n SCHEDULE\nOF CREDIT PERIOD FOR CUSTOMERS\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nNot past due \n 2,366  \n 136,006 \n\nPast due \n 3,013,063  \n 1,502,523 \n\nGross trade receivables \n 3,013,063  \n 1,502,523 \n\nLess: Allowance for credit losses \n (893,848) \n (167,177)\n\nNet trade receivables \n 2,121,581  \n 1,471,352 \n\n \n\nThe\nfollowing is an aged analysis of trade receivables, net of allowance for credit losses, presented based on past due date:\n\n SCHEDULE\nOF AGED ANALYSIS OF TRADE RECEIVABLES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\n< 30 days \n 1,301,733  \n 90,551 \n\n31 days to 60 days \n 114,081  \n 192,595 \n\n61 days to 90 days \n 75,978  \n 29,999 \n\n91 days to 180 days \n 310,093  \n 417,648 \n\n181 days to 365 days \n 317,330  \n 604,553 \n\nMore than 1 year \n -  \n - \n\nTotal \n 2,119,215  \n 1,335,346 \n\n \n\nAs\nat December 31, 2025, included in the Group’s trade receivables balance are debtors with aggregate carrying amount of USD2,119,215\n(2024: USD1,335,346) which are past due as at the reporting date. Out of the past due balances, USD627,423 (2024: USD1,022,201) has been\npast due 91 days or more and is not considered as in default because subsequent settlements were made from these debtors.\n\n \n\nDetails\nof impairment assessment of trade and other receivables are set out in note 24.\n\n \n\n**10**\n**RESTRICTED\nBANK DEPOSITS AND CASH AND BANK BALANCES**\n\n SCHEDULE\nOF RESTRICTED BANK DEPOSITS CASH AND BANK BALANCES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nRestricted bank deposits \n 253,188  \n 592,652 \n\nCash and bank balances \n 966,807  \n 2,963,301 \n\nTotal \n 1,219,995  \n 3,555,953 \n\n \n\nRestricted\nbank deposits are pledged to banks as security deposits for the auction of logs.\n\n \n\nDetails\nof impairment assessment of restricted bank deposits, and cash and bank balances are set out in note 24.\n\n \n\n**11**\n**TRADE\nAND OTHER PAYABLES**\n\n SCHEDULE OF TRADE AND OTHER PAYABLES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nTrade payables \n 2,805,764  \n 1,841,297 \n\nOther payables \n 358,789  \n 778,114 \n\nAccruals \n 790,657  \n 796,858 \n\nTotal \n 3,955,210  \n 3,416,269 \n\n \n\nOther\npayables and accruals consist mainly of staff salaries, audit fees and other costs of non-trade nature.\n\n \n\nF-24\n\n \n\n \n\n**12**\n**CONTRACT\nLIABILITIES**\n\n SCHEDULE OF CONTRACT LIABILITIES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nContract liabilities \n 258,096  \n 2,774,460 \n\n \n\nContract\nliabilities represent the Group’s obligation to transfer of product to customers for which the Group has received advance payments\nfrom customers. Contract liabilities amounted to USD2,516,364 as at January 1, 2025 have been recognised as revenue for the years ended\nDecember 31, 2025.\n\n \n\nContract\nliabilities relate to advances collected from customers but goods have yet to be delivered. These will be recognized as revenue once\ncontrol of the goods has been transferred to customers. Management expects that all the unsatisfied performance obligation as at the\nend of the reporting period may be recognized as revenue within the next twelve months from balance sheet date. The decrease in contract\nliabilities reflects revenue recognition during the period and lower advance deposits received.\n\n \n\n**13**\n**BANK\nBORROWINGS AND OTHER BORROWINGS**\n\n SCHEDULE OF BANK AND OTHER BORROWINGS\n\n  \n  \n2025  \n2024 \n\n  \n  \nUSD  \nUSD \n\n  \n  \n   \n  \n\n(a)\nBank borrowings (Note (i)) \n   \n  \n\n \nBank overdrafts - variable rate \n$1,371,598  \n$1,505,771 \n\n  \nBank borrowings - fixed rate \n 2,121,080  \n 6,713,288 \n\n  \nBank borrowings - variable rate \n 2,130,248  \n 2,133,931 \n\n  \n  \n 5,622,926  \n 10,352,990 \n\n  \n  \n    \n   \n\n  \nSecured bank borrowings (Note (ii)) \n 5,622,926  \n 10,085,523 \n\n  \nUnsecured bank borrowings \n -  \n 267,467 \n\n  \nTotal \n 5,622,926  \n 10,352,990 \n\n  \n  \n    \n   \n\n  \nThe carrying amounts of the above borrowings are repayable: \n    \n   \n\n  \nWithin one year \n 5,622,926  \n 10,313,887 \n\n  \nWithin a period of more than one year but not exceeding two years \n -  \n 39,103 \n\n  \nTotal \n 5,622,926  \n 10,352,990 \n\n  \n  \n    \n   \n\n  \nLess: Amounts due within one year shown under current liabilities: \n (5,622,926) \n (10,313,887)\n\n  \nAmounts shown under non-current liabilities: \n -  \n 39,103 \n\n  \n  \n    \n   \n\n(b) \nOther borrowings (Note (iii)) \n    \n   \n\n  \nUnsecured other borrowings - related parties - fixed rate (Note 23) \n -  \n 425,255 \n\n  \nUnsecured other borrowings - fixed rate \n 356,431  \n 704,886 \n\n  \nTotal \n 356,431  \n 1,130,141 \n\n \n\nNote:\n\n \n\n \n(i)\nBank\nborrowings carry a weighted average effective interest rate at 4% (2024: 5%).\n\n \n(ii)\nSecured\nbank borrowings were pledged by the personal guarantee and the private real estate properties owned by our former shareholders.\n\n \n(iii)\nIncluded\nin other borrowings, an aggregate loan balance from related parties of nil (2024: USD425,255) was unsecured, interest-free or interest\nbearing at nil (2024: 8% p.a.). A principal amount of USD356,431 (2024: USD704,886) was unsecured, interest bearing at 3.6% p.a.\n(2024: interest free or interest bearing at 6% to 7.2% p.a). All these balances were repayable within one year after the end of the\nreporting period.\n\n \n\n \n\n**14**\n**AMOUNTS\nDUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER**\n\n SCHEDULE\nOF AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nDue within one year \n 310,696  \n 1,142,024 \n\nDue after one year \n -  \n 12,300,650 \n\nTotal \n 310,696  \n 13,442,674 \n\n \n\nAs\nat December 31, 2025, all amounts are unsecured, interest free and repayable on demand.\n\n \n\nF-25\n\n \n\n \n\n**15**\n**LEASE\nLIABILITIES**\n\n SCHEDULE\nOF LEASE LIABILITIES\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nWithin one year \n 40,057  \n 121,335 \n\nWithin a period of more than one year but not more than two years \n 29,535  \n 127,261 \n\nWithin a period of more than two years but not more than five years \n 24,185  \n 334,849 \n\nLease liabilities gross \n 93,777  \n 583,445 \n\nLess: Amount due for settlement with 12 months shown under current liabilities \n (40,057) \n (121,335)\n\nAmount due for settlement after 12 months shown under non-current liabilities \n 53,720  \n 462,110 \n\n \n\nThe\nweighted average incremental borrowing rates applied to lease liabilities range from 3% to 5% per annum (2024: 3% to 9% per annum).\n\n \n\nLease\nobligations that are denominated in currencies other than the functional currencies of the relevant group entities are set out below:\n\n SCHEDULE OF LEASE OBLIGATIONS\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nEUR \n 11,773  \n 25,658 \n\nCNY \n 82,005  \n 105,205 \n\nLease\nObligations \n 82,005  \n 105,205 \n\n \n\n \n\n**16**\n**SHARE\nCAPITAL**\n\n SCHEDULE OF SHARE CAPITAL\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nPaid up capital: \n    \n   \n\n  \n    \n   \n\nAt January 1 and December 31 \n 132,425  \n 132,425 \n\n132,425,321 ordinary shares (2024: 132,425,321 ordinary shares): \n    \n   \n\nAt January 1 and December 31 \n 132,425  \n 132,425 \n\nPaid up capital \n 132,425  \n 132,425 \n\n \n\nAs\nof December 31, 2025, the Company is authorized to issue a maximum of 8,000,000,000 shares and paid up 132,425,321 ordinary shares with\na par value of USD0.001. The currently issued 132,425,321 Ordinary Shares be and are re-designated and re-classified into (i) 92,932,850\nClass B Ordinary Shares with 50 votes per share and (ii) 39,492,471 Class A Ordinary Shares with 1 vote per share. The remaining authorized\nbut unissued 7,867,574,679 Ordinary Shares be and are re-designated and re-classified into (i) 7,480,507,529 Class A Ordinary Shares\nand (ii) 387,067,150 Class B Ordinary Shares.\n\n \n\nAs\nof December 31, 2024, the Company is authorized to issue a maximum of 200,000,000 shares and paid up 132,425,321 ordinary shares with\na par value of USD0.001. Each paid up ordinary share carries one vote and carry a right to dividends as and when declared by the Company.\n\n \n\nDetails\nof share option scheme issued by the Group is described in note 22.\n\n \n\n**17**\n**REVENUE\nAND SEGMENT INFORMATION**\n\n \n\nThe\nGroup is currently organized into two operating divisions – Direct Purchase and Original Design Manufacturer (“ODM”)\nServices, and Manufacturing segments. These segments are the basis on which the Group reports its primary segment information to the\nchief operating decision marker. The business nature of each segment is disclosed as follows:\n\n \n\n**Direct\nPurchase and ODM Segment** – being the business of sourcing of live wood and owning designed design on wood products for sales\nto end customers.\n\n \n\nF-26\n\n \n\n \n\n**Manufacturing\nSegment** – being the business with involvement in manufacturing of decking, flooring or sawn timbers.\n\n \n\nSegment\ninformation of these businesses is presented below:\n\n \n\n \n(a)\nReconciliation\nof the reportable segment revenue, profit or loss\n\n SCHEDULE OF REVENUE AND SEGMENT INFORMATION\n\n  \nDirect\n\nPurchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nFor the year ended December 31, 2025 \n\n  \nDirect\n\nPurchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\nLogs \n 5,632,281  \n      -  \n -  \n 5,632,281 \n\nFlooring \n 7,524,361  \n -  \n -  \n 7,524,361 \n\nDecking \n 1,157,385  \n -  \n -  \n 1,157,385 \n\nSawn timber \n 270,144  \n -  \n -  \n 270,144 \n\nRevenue from external customers and segment revenue \n 14,584,171  \n -  \n -  \n 14,584,171 \n\n  \n    \n    \n    \n   \n\nInterest income \n 3,214  \n -  \n 40  \n 3,254 \n\nInterest expenses \n 500,970  \n -  \n 2,316  \n 503,286 \n\nDepreciation/amortization \n 170,961  \n -  \n 950  \n 171,911 \n\nReportable segment results \n (5,532,383) \n -  \n (832,402) \n (6,364,785)\n\n \n\n  \nDirect\n\nPurchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nFor the year ended December 31, 2024 \n\n  \nDirect\n\nPurchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\nLogs \n 12,160,350  \n      -  \n -  \n 12,160,350 \n\nFlooring \n 745,270  \n -  \n -  \n 745,270 \n\nDecking \n 3,375,933  \n -  \n -  \n 3,375,933 \n\nSawn timber \n 52,862  \n -  \n -  \n 52,862 \n\nCarbon credits \n 6,260  \n -  \n -  \n 6,260 \n\nRevenue from external customers and segment revenue \n 16,340,575  \n -  \n -  \n 16,340,575 \n\n  \n    \n    \n    \n   \n\nInterest income \n 13,173  \n -  \n 188  \n 13,361 \n\nInterest expenses \n 601,703  \n -  \n 2,280  \n 705,355 \n\nDepreciation/amortization \n 73,465  \n -  \n 4,748  \n 78,213 \n\nReportable segment results \n (8,090) \n -  \n (1,003,237) \n (1,011,327)\n\n \n\nF-27\n\n \n\n \n\n  \nDirect Purchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nFor the year ended December 31, 2023 \n\n  \nDirect Purchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\nLogs \n 10,024,248  \n      -  \n -  \n 10,024,248 \n\nFlooring \n 2,124,022  \n -  \n -  \n 2,124,022 \n\nDecking \n 5,393,401  \n -  \n -  \n 5,393,401 \n\nSawn timber \n 131,800  \n -  \n -  \n 131,800 \n\nRevenue from external customers and segment revenue \n 17,673,471  \n -  \n -  \n 17,673,471 \n\n  \n    \n    \n    \n   \n\nInterest income \n 19,402  \n -  \n 3,837  \n 23,239 \n\nInterest expenses \n 575,742  \n -  \n 687,367  \n 1,263,110 \n\nDepreciation/amortization \n 118,514  \n -  \n 8,741  \n 127,255 \n\nReportable segment results \n (207,401) \n -  \n (545,680) \n (753,081)\n\n \n\n SCHEDULE OF REPORTABLE SEGMENT ASSETS AND LIABILITIES\n\n \n(b)\nReconciliation\nof the reportable segment assets and liabilities\n\n \n\n  \nDirect Purchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nAs at December 31, 2025 \n\n  \nDirect Purchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\nReportable segment assets \n 14,035,272  \n       -  \n 343,100  \n 14,378,372 \n\n  \n    \n    \n    \n   \n\nReportable segment liabilities \n (9,290,872) \n -  \n (1,316,649) \n (10,607,521)\n\n \n\n  \nDirect Purchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nAs at December 31, 2024 \n\n  \nDirect Purchase\nand ODM  \nManufacturing  \nUnallocated  \nTotal reportable\nsegment \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\nReportable segment assets \n 12,143,525  \n 28,500,105  \n 164,441  \n 40,808,071 \n\n  \n    \n    \n    \n   \n\nReportable segment liabilities \n (14,420,451) \n (15,186,711) \n (2,092,817) \n (31,699,979)\n\n \n\n \n(c)\nDisaggregation\nof revenue from contracts with customers\n\n \n\nF-28\n\n \n\n \n\nIn\nthe following table, revenue is disaggregated by the geographical locations of customers and by the timing of revenue recognition.\n\n SCHEDULE OF REVENUES BY GEOGRAPHICAL LOCATIONS\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nGeographical locations: \n    \n    \n   \n\nChina \n 6,503,329  \n 7,650,663  \n 10,303,013 \n\nEurope \n 1,968,041  \n 4,091,360  \n 6,036,052 \n\nSouth America \n 16,089  \n -  \n 895,851 \n\nNorth America \n 317,137  \n 514,777  \n 43,036 \n\nAsia \n 5,531,033  \n 4,056,712  \n 395,521 \n\nAfrica \n 248,542  \n 27,063  \n - \n\nTotal \n 14,584,171  \n 16,340,575  \n 17,673,473 \n\n  \n    \n    \n   \n\nTiming of revenue recognition: \n    \n    \n   \n\nAt a point in time \n 14,584,171  \n 16,340,575  \n 17,673,473 \n\n \n\nInformation\nabout major customers is disclosed in note 24 (e).\n\n \n\n**18**\n**OTHER\nINCOME (EXPENSE), NET**\n\n SCHEDULE OF OTHER INCOME, NET\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nGain (loss) on disposal of property, plant and equipment \n 62,692  \n 93  \n (18,873)\n\nGain on lease modification \n -  \n -  \n 703 \n\nOthers \n 5,100  \n (10,009) \n 37,720 \n\nTotal \n 67,792  \n (9,916) \n 19,550 \n\n \n\n \n\n**19**\n**FINANCE\nCOSTS**\n\n SCHEDULE OF FINANCE COSTS\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nInterest expenses on bank borrowings \n 333,166  \n 495,174  \n 372,828 \n\nInterest expenses on other borrowings \n 71,681  \n 30,461  \n 4,638 \n\nInterest expenses on shareholder loans \n 18,999  \n 73,102  \n 197,066 \n\nInterest expenses on convertible bonds \n -  \n -  \n 684,163 \n\nInterest expenses on lease liabilities \n 3,898  \n 5,247  \n 4,415 \n\nBank charges \n 75,542  \n 101,371  \n 99,558 \n\nTotal \n 503,286  \n 705,355  \n 1,362,668 \n\n \n\n \n\nF-29\n\n \n\n \n\n**20**\n**LOSS\nBEFORE INCOME TAX**\n\n \n\nLoss\nbefore income tax is arrived at after charging:\n\n SCHEDULE OF (LOSS) PROFIT BEFORE INCOME TAX\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nCost of revenue \n 13,183,875  \n 10,901,474  \n 10,514,343 \n\nDepreciation expenses of: \n    \n    \n   \n\n- Property, plant and equipment \n 130,120  \n 38,520  \n 59,271 \n\n- Right-of-use assets \n 41,325  \n 39,693  \n 67,984 \n\nProvision for (reversal of) allowance for expected credit losses on trade receivables \n 823,121  \n (182,659) \n 179,849 \n\nProvision for allowance for expected credit losses on other receivables \n 162,498  \n -  \n - \n\nWrite-down of inventories \n 241,503  \n 112,712  \n - \n\nAuditor’s remuneration \n 186,725  \n 149,008  \n 173,092 \n\nEmployee benefits expenses (including directors’ remuneration): \n    \n    \n   \n\n- Salaries and allowances \n 1,757,829  \n 1,766,362  \n 2,084,660 \n\n- Pension scheme contribution \n 149,172  \n 189,713  \n 264,116 \n\n \n\n \n\n**21**\n**INCOME\nTAX (CREDITS) EXPENSES**\n\n \n\n**British\nVirgin Islands**\n\n \n\nThe\nCompany and our subsidiaries incorporated in British Virgin Islands currently enjoy permanent income tax holidays; accordingly, the Company\nand our subsidiaries incorporated in the British Virgin Islands do not accrue for income taxes.\n\n \n\n**Peru**\n\n \n\nOur\nsubsidiaries incorporated in Peru are considered as Peru tax residents under Peru tax laws; accordingly, they are subject to corporate\nincome tax on their taxable income under Peru tax laws at statutory tax rates ranging from 5% to 29.5% (2024: 5% to 29.5%, 2023: 5% to\n29.5%), depending on the city where the subsidiaries are situated and operated.\n\n \n\n**France**\n\n \n\nOur\nsubsidiary incorporated in France is considered as France tax resident under France tax laws; accordingly, it is subject to corporate\nincome tax on their taxable income under France tax laws at a statutory tax rate of 25% (2024: 25.0%, 2023: 25.0%).\n\n \n\n**China**\n\n \n\nOur\nsubsidiary incorporated in China is considered as China tax resident under China tax laws; accordingly, it is subject to corporate income\ntax on their taxable income under China tax laws at a statutory tax rate of 25% (2024: 25%, 2023: 25%).\n\n \n\n**Macau**\n\n \n\nOur\nsubsidiary incorporated in Macau is considered as Macau tax resident under Macau tax laws; accordingly, it is subject to corporate income\ntax on their taxable income under Macau tax laws at a statutory tax rate of 12% (2024: 12%, 2023: 12%).\n\n \n\n**Hong\nKong**\n\n \n\nOur\nsubsidiary incorporated in Hong Kong is subject to corporate income tax on their taxable income under Hong Kong tax laws at a statutory\ntax rate of 16.5% (2024: 16.5%, 2023: 16.5%).\n\n \n\nF-30\n\n \n\n \n\nThe\nincome tax provision consists of the following components:\n\n SCHEDULE OF INCOME TAX PROVISION\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nCurrent tax \n 17,968  \n 16,308  \n 19,720 \n\nUnder (Over) provision of tax in prior years \n 33,982  \n (89,823) \n (68,491)\n\nTotal \n 51,950  \n (73,515) \n (48,771)\n\n \n\nThe\nincome tax expenses (credits) for the years can be reconciled to the loss before income tax per the consolidated statement of profit\nor loss as follows:\n\n SCHEDULE OF INCOME TAX (CREDITS) EXPENSES RECONCILED TO (LOSS) PROFIT BEFORE INCOME TAX\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nLoss before income tax \n (6,364,785) \n (1,011,327) \n (753,081)\n\n  \n    \n    \n   \n\nTax at the respective income tax rates \n (1,437,512) \n (39,596) \n 170,905 \n\nTax effect of expenses not deductible for tax purpose \n 1,541,308  \n 70,985  \n 191,697 \n\nTax effect of income not taxable for tax purpose \n (121,785) \n (15,081) \n (342,882)\n\nUnder (Over) provision in respect of prior years \n (33,962) \n (89,823) \n (68,491)\n\nTotal \n 51,950  \n (73,515) \n (48,771)\n\n \n\nAs\nat 31 December 2025, the Group has unused tax losses of approximately USD1,163,254 (2024: USD321,102) that can be carried forward against\nfuture taxable profits, the Group did not recognize deferred tax assets as the realization of the related tax benefit may not be probable.\nIncluded in unrecognised tax losses are losses of USD319,970 (2024: USD16,096) that will expire within 5 year. Other losses may be carried\nforward indefinitely.\n\n \n\n**22**\n**SHARE-BASED\nPAYMENTS TRANSACTIONS**\n\n \n\n**Equity-settled\nshare option scheme of the Company**\n\n \n\nThe\nCompany’s share option scheme (the “Scheme”) was adopted pursuant to an ordinary resolution of the shareholders passed\non September 1, 2019 for the primary purpose of providing incentives to directors and eligible employees and will expire on the date\nof the listing of shares of the Company. Under the Scheme, the directors of the Company may grant options to eligible employees, including\ndirectors of the Company and its subsidiaries, to subscribe for shares in the Company.\n\n \n\nAt\nDecember 31, 2025, the number of shares in respect of which options had been granted and remained outstanding under the Scheme was 1,880,000\n(2024: 6,387,000), representing 1% (2024: 5%) of the shares of the Company in issue. The total number of shares in respect of which options\nmay be granted under the Scheme is not permitted to exceed 10% of the shares of the Company in issue at any point in time, without prior\napproval from the Company’s shareholders. The number of shares issued and to be issued in respect of which options granted and\nmay be granted to any individual in any one year is not permitted to exceed 1% of the shares of the Company in issue at any point in\ntime, without prior approval from the Company’s shareholders.\n\n \n\nOptions\ngranted must be taken up within 1 month of the date of grant, upon payment of HK$1 per option. Options may be exercised at any time from\nthe date of grant of the share option to the 10th anniversary of the date of grant. The exercise price is HK$4.661 per share\n(equivalent to HK$37.288 per ADS).\n\n \n\na)\nDetails of specific categories of options are as follows:\n\n SCHEDULE OF SPECIFIC CATEGORIES OF OPTIONS\n\nDate\nof grant\n \nVesting\nperiod\n \nExercise\nperiod\n \nExercise\nPrice\n \nExercise\ndates\n\nSeptember\n30, 2019\n \nVested\nupon grant date\n \nSeptember\n30, 2019–September 29, 2029\n \nHK$4.661\nper share\n \nNot\nyet exercised\n\n \n \n \n \n \n \n \n \n \n\nAugust\n18, 2020\n \nVested\nupon grant date\n \nAugust\n18, 2020 – August 17, 2030\n \nHK$4.661\nper share\n \nNot\nyet exercised\n\n \n\nF-31\n\n \n\n \n\nb)\nThe following table discloses movements of the Scheme during the year:\n\n SCHEDULE OF MOVEMENTS OF THE SCHEME\n\nOption grant date \nOutstanding at January 1, 2025  \nGranted during year  \nExercised during year  \nForfeited during year  \nExpired during year  \nOutstanding at December 31, 2025 \n\nSeptember 30, 2019 \n 6,387,000  \n    -  \n    -  \n (4,507,000) \n    -  \n 1,880,000 \n\nExercisable at the end of the year \n 6,387,000  \n    \n    \n    \n    \n 1,880,000 \n\n  \n    \n    \n    \n    \n    \n   \n\nWeighted average exercise price \nHK$4.661  \n -  \n -  \n -  \n -  \nHK$4.661 \n\n \n\nThe\nfollowing table discloses movements of the Scheme during the prior year:\n\n \n\nOption grant\ndate \nOutstanding\nat January 1, 2024  \nGranted\nduring year  \nExercised\nduring year  \nForfeited\nduring year  \nExpired\nduring year  \nOutstanding\nat December 31, 2024 \n\nSeptember 30, 2019 \n 6,597,000  \n    -  \n    -  \n (210,000) \n -  \n 6,387,000 \n\nAugust 18, 2020 \n 1,203,000  \n -  \n -  \n (1,203,000) \n -  \n - \n\n  \n 7,800,000  \n -  \n -  \n (1,413,000) \n -  \n 6,387,000 \n\nExercisable at the end of\nthe year \n    \n    \n    \n    \n    \n 6,387,000 \n\n  \n    \n    \n    \n    \n    \n   \n\nWeighted average exercise\nprice \nHK$4.661  \n -  \n -  \n -  \n -  \nHK$4.661 \n\n \n\nIn\nrespect of the share options exercised during the year, the weighted average share price at the dates of exercise was HK$4.661 (2024:\nHK$4.661).\n\n \n\n \nc)\nDuring\nthe year ended December 31, 2021, options were granted on 18 August 2020. The estimated fair values of the options granted on this\ndate is HK$0.\n\n \n \n \n\n \nd)\nThese\nfair values were calculated using Hull-White Enhanced Model. The inputs into the model on option grant dates were as follows:\n\n SCHEDULE OF MEASUREMENT OF FAIR VALUE SHARE OPTIONS GRANTED\n\nUnderlying stock price \nHK$0.235 \n\nExercise price \nHK$4.661 \n\nExpected volatility \n 2.86 \n\nExpected life \n 10\nyears \n\nRisk-free rate \n 1.20%\n\nExpected dividend yield \n - \n\n \n\n \ne)\nExpected\nvolatility was determined by using the historical volatility of the comparable companies adopted by the independent valuation expert.\nThe expected life used in the model has not been adjusted which is based on the exercise period as specified under the terms and\nconditions of the share options.\n\n \n \n \n\n \nf)\nThe\nGroup did not recognize any share-based payment expense in relation to share options granted by the Company because assessed option\nvalue by the independent valuation expert on grant date is zero.\n\n \n\n \n\n**23**\n**SIGNIFICANT\nRELATED PARTY TRANSACTIONS**\n\n \n\nRelated\ncompanies in these consolidated financial statements refer to members of the ultimate holding company’s group of companies.\n\n \n\nSome\nof the Company’s transactions and arrangements are between members of the group and the effect of these on the basis determined\nbetween the parties is reflected in these consolidated financial statements. The intercompany balances are unsecured, interest-free and\nrepayable on demand, unless otherwise stated.\n\n \n\nSome\nof the group’s transactions and arrangements are with related parties and the effect of these on the basis determined between the\nparties is reflected in these consolidated financial statements. The balances are unsecured, interest-free and repayable on demand unless\notherwise stated.\n\n \n\nF-32\n\n \n\n \n\n**Balances\ndue to related parties**\n\n SCHEDULE OF BALANCE DUE TO RELATED PARTIES\n\n  \n  \n  \n2025  \n2024 \n\nName \nRelationship \nNature \nUSD  \nUSD \n\nTUTU Business Services Limited\n(BVI) \nControlling Shareholder \nAmounts due to an ultimate beneficial shareholder \n 289,029  \n - \n\n  \n  \n  \n    \n   \n\nMs. Liying Wang \nUltimate beneficial shareholder \nAmounts due to an ultimate beneficial shareholder \n 21,667  \n - \n\n  \n  \n  \n    \n   \n\n  \n  \nAmounts due to an ultimate beneficial shareholder \n 310,696  \n - \n\n  \n  \n  \n    \n   \n\nMr. Hok Pan Se \nNote (i) \nNon-trade payables \n    \n   \n\n  \n  \nLong-term loans (Note 14) \n -  \n 12,300,650 \n\n  \n  \nShort-term loans (Note 14) \n -  \n 1,142,024 \n\n  \n  \n  \n    \n   \n\n  \n  \nAmounts due to an ultimate beneficial shareholder \n -  \n 13,442,674 \n\n  \n  \n  \n    \n   \n\nMr. Ka Wai Se \nNote (ii) \nOther borrowings (Note 13(b)) \n -  \n 183,066 \n\n  \n  \n  \n    \n   \n\nMr. Ka Chun Se \nNote (iii) \nOther borrowings (Note 13(b)) \n -  \n 242,189 \n\n  \n  \n  \n    \n   \n\nProwood (Cambodia) Flooring Co., Ltd \nNote (iv) \nContract liabilities \n -  \n 1,500,000 \n\n  \n  \n  \n    \n   \n\nNature Flooring Industries Inc \nNote (v) \n Contract liabilities \n -  \n 509,042 \n\n  \n  \n  \n    \n   \n\nKunshan Yingyi Trading Limited \nNote (vi) \nContract liabilities \n -  \n 139,113 \n\n \n\n(i)Mr.\nHok Pan Se ceases to be ultimate beneficial shareholder from October 2025 after completed\nthe transfer of the company’s share to the new ultimate beneficial shareholder and\nno control or significant influence remain over the company after the completion of transaction.\n\n(ii)Mr.\nKa Wai Se ceases to be related party from October 2025 after the former ultimate beneficial\nholder completed the transfer of the company’s share to the new ultimate beneficial\nshareholder and no control or significant influence remain by the former ultimate beneficial\nholder over the company after the completion of transaction.\n\n(iii)Mr.\nKa Chun Se ceases to be related party from October 2025 after the former ultimate beneficial\nholder completed the transfer of the company’s share to the new ultimate beneficial\nshareholder and no control or significant influence remain by the former ultimate beneficial\nholder over the company after the completion of transaction.\n\n(iv)Prowood\n(Cambodia) Flooring Co., Ltd ceases to be related party from October 2025 after the former\nultimate beneficial holder completed the transfer of the company’s share to the new\nultimate beneficial shareholder and no control or significant influence remain by the former\nultimate beneficial holder over the company after the completion of transaction.\n\n(v)Nature\nFlooring Industries Inc ceases to be related party from October 2025 after the former ultimate\nbeneficial holder completed the transfer of the company’s share to the new ultimate\nbeneficial shareholder and no control or significant influence remain by the former ultimate\nbeneficial holder over the company after the completion of transaction.\n\n(vi)Kunshan\nYingyi Trading Limited ceases to be related party from October 2025 after the former ultimate\nbeneficial holder completed the transfer of the company’s share to the new ultimate\nbeneficial shareholder and no control or significant influence remain by the former ultimate\nbeneficial holder over the company after the completion of transaction.\n\n \n\nThe\nCompany did not have any outstanding to any officers or directors as of December 31, 2025 and 2024, and it does not expect to provide\nlong terms loans or credit facilities to officers and directors.\n\n \n\nF-33\n\n \n\n \n\n**Transactions\nwith related parties**\n\n \n\nThe\nfollowing table represents the significant related party transactions for the years ended December 31, 2025, 2024 and 2023.\n\n SCHEDULE OF RELATED PARTY TRANSACTION  \n\n  \n  \n2025  \n2024  \n2023 \n\nName \nNature \nUSD  \nUSD  \nUSD \n\nMr. Hok Pan Se(i) \nInterest expense on shareholder loans \n 18,999  \n 73,102  \n 197,066 \n\nMr. Hok Pan Se(i) \nInterest expense on convertible bonds \n -  \n -  \n 71,865 \n\nFo Shan Sunde Daziran Investment Management Limited(ii)  \nLease payments made \n -  \n -  \n 55,263 \n\nFo Shan Sunde Changcheng Management Limited(iii) \nLease payments made \n -  \n 20,535  \n 6,523 \n\nNature Flooring Industries Inc(iv) \nRevenue \n 24,077  \n -  \n - \n\nProwood (Cambodia) Flooring Co., Ltd(v) \nRevenue \n 4,889,874  \n -  \n - \n\nTaizhou Nature Home Furnishings Co., Ltd (vi) \nRevenue \n 21,820  \n -  \n - \n\n \n\n(i)Mr.\nHok Pan Se ceases to be ultimate beneficial shareholder from October 2025 after completed\nthe transfer of the company’s share to the new ultimate beneficial shareholder and\nno control or significant influence remain over the company after the completion of transaction.\n\n(ii)Fo\nShan Sunde Daziran Investment Management Limited ceases to be related party from October\n2025 after the former ultimate beneficial holder completed the transfer of the company’s\nshare to the new ultimate beneficial shareholder and no control or significant influence\nremain by the former ultimate beneficial holder over the company after the completion of\ntransaction.\n\n(iii)Fo\nShan Sunde Changcheng Management Limited ceases to be related party from September 2024 after\nthe former ultimate beneficial shareholder lose the control over this related company.\n\n(iv)Nature\nFlooring Industries Inc ceases to be related party from October 2025 after the former ultimate\nbeneficial holder completed the transfer of the company’s share to the new ultimate\nbeneficial shareholder and no control or significant influence remain by the former ultimate\nbeneficial holder over the company after the completion of transaction.\n\n(v)Prowood\n(Cambodia) Flooring Co., Ltd ceases to be related party from October 2025 after the former\nultimate beneficial holder completed the transfer of the company’s share to the new\nultimate beneficial shareholder and no control or significant influence remain by the former\nultimate beneficial holder over the company after the completion of transaction.\n\n(vi)Taizhou\nNature Home Furnishings Co., Ltd ceases to be related party from October 2025 after the former\nultimate beneficial holder completed the transfer of the company’s share to the new\nultimate beneficial shareholder and no control or significant influence remain by the former\nultimate beneficial holder over the company after the completion of transaction.\n\n \n\n \n\n**24**\n**FINANCIAL\nINSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT**\n\n \n\n \na)\n*Categories\nof financial instruments*\n\n \n\nThe\nfollowing table sets out the financial instruments as at the end of the reporting period:\n\n SCHEDULE\nOF FINANCIAL INSTRUMENTS\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nFinancial assets \n    \n   \n\nAt amortized cost \n 5,476,025  \n 7,722,459 \n\nFinancial\nassets at amortized cost \n 5,476,025  \n 7,722,459 \n\n  \n    \n   \n\nFinancial liabilities \n    \n   \n\nAt amortized cost \n (9,548,383) \n (28,128,661)\n\nFinancial\nliabilities at amortized cost \n (9,548,383) \n (28,128,661)\n\n \n\nF-34\n\n \n\n \n\n \nb)\n*Financial\ninstruments subject to offsetting, enforceable master netting arrangements and similar agreements*\n\n \n\nThe\nGroup does not have any financial instruments which are subject to enforceable master netting arrangements or similar netting agreements.\n\n \n\n \nc)\n*Financial\nrisk management policies and objectives*\n\n \n\nThe\nmanagement of the Group monitors and manages the financial risks relating to the operations of the Group to ensure appropriate measures\nare implemented in a timely and effective manner. These risks include market risk (including currency risk and interest rate risk), credit\nrisk and liquidity risk.\n\n \n\n \n(i)\n*Market\nrisk management*\n\n \n\nThe\nGroup activities are exposed primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Management\nmonitors risks associated with changes in foreign currency exchanges rates and interest rates and will consider appropriate measures\nshould the need arise.\n\n \n\nThere\nhas been no significant change to the Group’s exposure to market risk or the manner in which it manages and measures the risk.\n\n \n\n \n(ii)\n*Foreign\ncurrency risk management*\n\n \n\nThe\nGroup also transacts business in foreign currencies other than its functional currencies, as further disclosed below, and is therefore\nexposed to foreign exchange risk.\n\n \n\nThe\ncurrency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currencies\nare as follows:\n\n SCHEDULE\nOF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN CURRENCIES\n\n  \nAssets  \nLiabilities \n\n  \n2025  \n2024  \n2025  \n2024 \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\nHKD \n 933,919  \n 638,471  \n 3,959,501  \n 5,408,928 \n\nEUR \n 1,800,135  \n 3,253,699  \n 3,936,467  \n 6,668,340 \n\nCNY \n 199,339  \n 149,711  \n 471,019  \n 108,961 \n\nPEN \n 208,705  \n 839,614  \n 82,937  \n 659,893 \n\nMOP \n 552  \n 511  \n -  \n 96,141 \n\n \n\n*Foreign\ncurrency sensitivity*\n\n \n\nThe\nfollowing table details the sensitivity to a 5% increase and decrease in the related foreign currencies against the functional currency\n(“USD”) with all the other variables held constant. 5% is the sensitivity rate used when reporting foreign currency risk\ninternally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates.\nThe sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period\nend for a 5% change in foreign currency rates.\n\n SCHEDULE\nOF SENSITIVITY CHANGE IN FOREIGN CURRENCIES RISK\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\nHKD \n (151,279) \n (238,523) \n (244,716)\n\nEUR \n (106,817) \n (170,732) \n (48,365)\n\nCNY \n (13,584) \n 2,038  \n (3,686)\n\nPEN \n 6,288  \n 8,986  \n (48,904)\n\nMOP \n 28  \n (4,782) \n (765)\n\nIncrease (decrease) in foreign currency sensitivity \n 28  \n (4,782) \n (765)\n\n \n\nF-35\n\n \n\n \n\n \n(iii)\n*Interest\nrate risk management*\n\n \n\nThe\nGroup is exposed to cash flow interest rate risk as the Group has bank loans which are interest bearing. The interest rates and terms\nof repayment of the loans are disclosed in the Note 13 to the consolidated financial statements. The Group currently does not have an\ninterest rate hedging policy.\n\n \n\n*Interest\nrate sensitivity analysis*\n\n \n\nThe\nsensitivity analysis below has been determined based on the exposure to interest rate for non-derivative instruments at the end of the\nreporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel\nand represents management’s assessment of the reasonably possible change in interest rates.\n\n \n\nIf\ninterest rates on loans had been 50 basis points higher/lower and all other variables were held constant, the Group’s (loss) profit\nfor the year would decrease/increase by approximately USD17,509 (2024: USD18,199, 2023: USD21,687).\n\n \n\nThe\nshareholder’s loans of the Group are carried at fixed interest rate and thus exposed the Group to fair value interest rate risk.\nAccordingly, no sensitivity analysis is performed.\n\n \n\n \n(iv)\n*Credit\nrisk and impairment assessment*\n\n \n\nCredit\nrisk refers to the risk that the Group’s counterparties default on their contractual obligations resulting in financial losses\nto the Group. The Group’s credit risk exposures are primarily attributable to trade receivables, other receivables, restricted\nbank deposits, and cash and bank balances. The Group does not hold any collateral or other credit enhancements to cover its credit risks\nassociated with its financial assets.\n\n \n\nIn\norder to minimize credit risk, the Group has delegated its finance team to develop and maintain the Group’s credit risk grading\nto categorize exposures according to their degree of risk of default. The finance team uses publicly available financial information\nand the Group’s own historical repayment records to rate its major customers and debtors. The Group’s exposure and the credit\nratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved\ncounterparties.\n\n \n\n*Trade\nreceivables*\n\n \n\nBefore\naccepting any new customer, the Group uses an internal credit scoring system to assess the potential customer’s credit quality\nand defines credit limits by customer. Limits and scoring attributed to customers are reviewed regularly. Other monitoring procedures\nare in place to ensure that follow-up action is taken to recover overdue debts. In this regard, the management considers that the Group’s\ncredit risk is significantly reduced.\n\n \n\nThe\nGroup has concentration of credit risk as 64.3% (2024: 67.4%, 2023: 55.2%) and 89.2% (2024: 89.1%, 2023: 89.9%) of the total trade receivables\nwas due from the Group’s largest customer and the five largest customers respectively. In order to minimize the credit risk, the\nmanagement of the Group has delegated a team responsible for determination of credit limits and credit approvals.\n\n \n\nIn\naddition, the Group performs impairment assessment under ECL model on trade receivables individually. Impairment of USD807,536 (2024:\nUSD315,976 reversed, 2023: USD253,459 recognized) is recognized during the year. Details of the quantitative disclosures are set out\nbelow in this note.\n\n \n\n*Other\nreceivables*\n\n \n\nFor\nother receivables, the management makes periodic individual assessment on the recoverability of other receivables based on historical\nsettlement records, past experience, and also quantitative and qualitative information that is reasonable and supportive forward-looking\ninformation. The management believes that there is no significant increase in credit risk of these amounts since initial recognition\nand the Group provided impairment based on 12m ECL. For the years ended December 31, 2025 and 2024, the Group assessed the ECL for other\nreceivables and deposits, USD162,498 allowance (2024: nil) is recognized during the year.\n\n \n\nF-36\n\n \n\n \n\n*Restricted\nbank deposits/ cash and bank balances*\n\n \n\nCredit\nrisk on restricted bank deposits/ cash and bank balances is limited because the counterparties are reputable banks with high credit ratings\nassigned by international credit agencies. The Group assessed 12m ECL for restricted bank deposits/ cash and bank balances by reference\nto information relating to probability of default and loss given default of the respective credit rating grades published by external\ncredit rating agencies. Based on the average loss rates, the 12m ECL on pledged bank deposits/restricted bank deposits/bank balances\nis considered to be insignificant and therefore no loss allowance was recognized.\n\n \n\nThe\nGroup’s internal credit risk grading framework comprises the following categories:\n\n SCHEDULE\nOF INTERNAL CREDIT RISK GRADING \n\n**Category**\n \n**Description**\n \n\n \n\n**Trade\nreceivables**\n\n \n**Other\nfinancial assets**\n\nLow\nrisk\n \nThe\ncounterparty has a low risk of default and does not have any past-due amounts\n \nLifetime\nECL – not credit- impaired\n \n12-month\nECL\n\nWatch\nlist\n \nDebtor\nfrequently repays after due dates but usually settle in full\n \nLifetime\nECL – not credit- impaired\n \n12-month\nECL\n\nDoubtful\n \nThere\nhave been significant increases in credit risk since initial recognition through information developed internally or external resources\n \n\n \n\nLifetime\nECL – not credit-impaired\n\n \nLifetime\nECL - not credit-impaired\n\nLoss\n \nThere\nis evidence indicating the asset is credit impaired\n \nLifetime\nECL – credit-impaired\n \nLifetime\nECL - credit impaired\n\nWrite-off\n \nThere\nis evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery\n \n\n \n\nAmount\nis written off\n\n \nAmount\nis written off\n\n \n\nThe\ntables below detail the credit risk exposures of the Group’s financial assets, including trade receivables, other receivables,\nrestricted bank deposits, and cash and bank balances, which are subject to ECL assessment:\n\n SCHEDULE\nOF CREDIT RISK\n\n  \n   \n  \n  \n  \n2025  \n2024 \n\n  \nNote  \n\n**External**\n\n**credit**\n\n**rating**\n \n\n**Internal credit**\n\n**rating**\n \n\n**12m or**\n\n**lifetime ECL**\n \nGross carrying amount  \nAllowance for credit losses  \n\n**Gross carrying**\n\n**amount**\n  \nAllowance for credit losses \n\nFinancial assets at amortized costs \nUSD  \nUSD  \nUSD  \nUSD \n\nTrade receivables – contract with customers \n 9  \nN/A \nLow \nLifetime ECL \n 2,366  \n (47) \n 136,006  \n - \n\n  \n    \n  \nWatch list \nLifetime ECL \n 2,517,075  \n (397,813) \n 1,405,627  \n (70,281)\n\n  \n    \n  \nDoubtful \nLifetime ECL \n 396,070  \n (396,070) \n 96,896  \n (96,896)\n\n  \n    \n  \nLoss \nLifetime ECL \n 99,918  \n (99,918) \n -  \n - \n\n  \n    \n  \n  \n  \n 3,015,429  \n (893,848) \n 1,638,529  \n (167,177)\n\n  \n    \n  \n  \n  \n    \n    \n    \n   \n\nOther receivables \n 9  \nN/A \nLow \n12-month ECL \n 2,134,449  \n -  \n 2,695,154  \n - \n\n  \n    \n  \nLoss \nLifetime ECL \n 162,498  \n (162,498) \n -  \n - \n\n  \n    \n  \n  \n  \n 2,296,947  \n (162,498) \n 2,695,154  \n - \n\n  \n    \n  \n  \n  \n    \n    \n    \n   \n\nRestricted bank deposits \n    \nAA \nN/A \n12-month ECL \n 253,188  \n -  \n 592,652  \n - \n\n  \n    \n  \n  \n  \n    \n    \n    \n   \n\nCash and bank balances \n    \nAA+ \nN/A \n12-month ECL \n 966,807  \n -  \n 2,963,301  \n - \n\n \n\nF-37\n\n \n\n \n\nNote:\nFor trade receivables, the Group has applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime ECL. Except\nfor debtors with credit-impaired balances which are assessed individually, the Group determines the ECL on these items grouped by past\ndue status for trade receivables. When there are indicators that the relevant trade receivables may be credit impaired, the relevant\namounts will be assessed for ECL individually.\n\n \n\nThe\nGroup uses aging to assess the impairment for its customers in relation to its operation because these customers consist of a large number\nof customers with common risk characteristics that are representative of the customers’ abilities to pay all amounts due in accordance\nwith the contractual terms. Based on the Group’s assessment of historical credit loss experience of the existing debtors and all\navailable forward looking information, the Group does not consider that default occurs for those contractual payments that are more than\n90 days past due.\n\n \n\nThe\nGroup used estimated loss rates based on aging for classes with different credit risk characteristics and exposures, and the estimated\nloss rates are estimated based on historical observed default rates over the expected life of the debtors and are adjusted for forward-looking\ninformation that is available without undue cost or effort. The grouping is regularly reviewed by management to ensure relevant information\nabout specific debtors is updated.\n\n \n\n \n(v)\n*Liquidity\nrisk management*\n\n \n\nLiquidity\nrisk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds.\n\n \n\nIn\nassessing our liquidity, we monitor and analyze our cash on-hand and our operating expenditure commitments. Our liquidity needs are to\nmeet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through\ncash flows from operations, equity financing, and short-term borrowing from banks and third parties.\n\n \n\nAs\nof December 31, 2025, our cash and bank balances amounted to approximately USD1.0 million (2024: USD3.0 million), and our current assets\nwere approximately USD13.8 million (2024: USD20.9 million), and our current liabilities were approximately USD10.6 million (2024: USD18.9\nmillion). Based on the above considerations, management is of the opinion that the Company has sufficient funds to meet its working capital\nrequirements and debt obligations, for at least the next 12 months from the consolidated financial statement filing date. However, there\nis no assurance that management will be successful in their plans. There are several factors that could potentially arise that could\nundermine the Company’s plans, such as changes in the demand for its services, economic conditions, its operating results not continuing\nto deteriorate and its bank and shareholders being able to provide continued financial support.\n\n \n\nThe\nGroup maintains sufficient cash and cash equivalent, and internally generated cash flows to finance their activities.\n\n \n\nF-38\n\n \n\n* *\n\n*Liquidity\nrisk analyses*\n\n \n\nNon-derivative\nfinancial liabilities\n\n \n\nThe\nfollowing table details the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based\non the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table\nincludes both interest and principal cash flows.\n\n SCHEDULE OF REMAINING CONTRACTUAL MATURITY FOR NON-DERIVATIVE FINANCIAL LIABILITIES\n\n  \nOn\ndemand or\nwithin 1 year  \n1 to 2\nyears  \n2 to 5\nyears  \nTotal \n\n  \nUSD  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n   \n  \n\n2025 \n    \n    \n    \n   \n\nTrade payables \n 2,805,764  \n -  \n -  \n 2,805,764 \n\nOther payables \n 358,789  \n -  \n -  \n 358,789 \n\nBank borrowings \n 5,622,926  \n -  \n -  \n 5,622,926 \n\nOther borrowings \n 356,431  \n -  \n -  \n 356,431 \n\nAmounts due to an ultimate beneficial shareholder \n 310,696  \n -  \n -  \n 310,696 \n\nLease liabilities \n 42,358  \n 30,742  \n 24,492  \n 97,592 \n\nTotal \n 9,496,964  \n 30,742  \n 24,492  \n 9,552,198 \n\n  \n    \n    \n    \n   \n\n2024 \n    \n    \n    \n   \n\nTrade payables \n 1,841,297  \n -  \n -  \n 1,841,297 \n\nOther payables \n 778,114  \n -  \n -  \n 778,114 \n\nBank borrowings \n 10,313,887  \n 39,103  \n -  \n 10,352,990 \n\nOther borrowings \n 1,130,141  \n -  \n -  \n 1,130,141 \n\nAmounts due to an ultimate beneficial shareholder \n 1,142,024  \n 12,300,650  \n -  \n 13,442,674 \n\nLease liabilities \n 163,912  \n 160,407  \n 374,008  \n 698,327 \n\nTotal \n 15,369,375  \n 12,500,160  \n 374,008  \n 28,243,543 \n\n \n\n \n(vi)\n*Fair\nvalue of financial assets and financial liabilities*\n\n \n\nThe\nmanagement considers that the carrying amounts of Group’s financial assets and financial liabilities approximate their respective\nfair values due to the relatively short-term maturity of these financial instruments. The fair values of other classes of financial assets\nand liabilities are disclosed in the respective notes to financial statements.\n\n \n\n \n(d)\n*Capital\nrisk management policies and objectives*\n\n \n\nThe\nmanagement manages its capital to ensure that the Group will be able to continue as a going concern in order to provide returns for shareholders\nand benefits for other stakeholders and to maintain an optimal capital structure to reduce cost of capital.\n\n \n\nThe\ncapital structure of the Company consists of equity attributable to owners of the Company, comprising issued capital and retained earnings\nas disclosed in the notes to consolidated financial statements.\n\n \n\nManagement\nmonitors capital based on debt-to-equity ratio. The debt-to-equity ratio is calculated as total debt divided by total equity. Total debt\nis calculated as borrowings plus trade and other payables.\n\n SCHEDULE\nOF DEBT TO EQUITY RATIO\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nTotal debts \n 10,607,521  \n 31,699,979 \n\nTotal equity \n 3,770,851  \n 9,108,092 \n\n  \n    \n   \n\nDebt-to-equity % \n 281  \n 348 \n\n \n\nF-39\n\n \n\n \n\nThe\nGroup is not subject to externally imposed capital requirements for the years ended December 31, 2025 and 2024.\n\n \n\nThe\nGroup’s overall strategy remains unchanged from prior year.\n\n \n\n \n(e)\n*Concentrations*\n\n \n\nFinancial\ninstruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts\ncredit evaluations of their customers, and generally do not require collateral or other security from them. The Group evaluates their\ncollection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts\nperiodic reviews of the financial condition and payment practices of their customers to minimize collection risk on accounts receivable.\n\n \n\nThe\nfollowing table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue:\n\n SCHEDULE\nOF CONCENTRATIONS\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \n%  \nUSD  \n%  \nUSD  \n% \n\n  \n   \n   \n   \n   \n   \n  \n\nAmount of the Group’s revenue: \n 14,584,171  \n 100.0  \n 16,340,575  \n 100.0  \n 17,673,473  \n 100.0 \n\nCustomer A \n 5,498,478  \n 37.7  \n -  \n -  \n -  \n - \n\nCustomer B \n 2,166,542  \n 14.9  \n 2,311,102  \n 14.1  \n -  \n - \n\nCustomer C \n -  \n -  \n 3,738,420  \n 22.9  \n 352,182  \n 2.0 \n\nCustomer D \n 540,511  \n 3.7  \n 2,965,123  \n 18.1  \n 569,270  \n 3.2 \n\nCustomer E \n -  \n -  \n -  \n -  \n 7,188,782  \n 40.7 \n\nCustomer F \n -  \n -  \n -  \n -  \n 2,445,840  \n 13.8 \n\n \n\nThe\nfollowing table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable:\n\n \n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \n%  \nUSD  \n%  \nUSD  \n% \n\n  \n   \n   \n   \n   \n   \n  \n\nAmount of the Group’s accounts receivable: \n 3,015,429  \n 100.0  \n 1,638,529  \n 100.0  \n 4,963,636  \n 100.0 \n\nCustomer A \n 1,939,732  \n 64.3  \n 1,104,043  \n 67.4  \n -  \n - \n\nCustomer B \n 449,169  \n 14.9  \n -  \n -  \n -  \n - \n\nCustomer C \n 88,353  \n 2.9  \n 169,616  \n 10.4  \n 13,962  \n 0.3 \n\nCustomer D \n -  \n -  \n -  \n -  \n 2,738,407  \n 55.2 \n\nCustomer E \n -  \n -  \n -  \n -  \n 1,105,487  \n 22.3 \n\n \n\n \n\nF-40\n\n \n\n \n\n**25**\n**RECONCILIATIONS\nOF LIABILITIES ARISING FROM FINANCING ACTIVITIES**\n\n SCHEDULE\nOF RECONCILIATIONS OF LIABILITIES FROM FINANCING ACTIVITIES\n\n  \nAt beginning of year  \nNew leases entered  \nAdvance receipts  \nRepayments made  \nDiscontinued operation and reclassification  \nInterest expenses  \nExchange difference  \nAt end of year \n\n  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD  \nUSD \n\n2025 \n    \n    \n    \n    \n    \n    \n    \n   \n\nBank borrowings \n 10,352,990  \n -  \n 17,720,505  \n (21,732,687) \n (1,567,467) \n 333,166  \n 516,419  \n 5,622,926 \n\nOther borrowings \n 1,130,141  \n -  \n 3,331,307  \n (358,983) \n (3,731,483) \n 71,681  \n (86,232) \n 356,431 \n\nAmounts due to an ultimate beneficial shareholder \n 13,442,674  \n -  \n 845,805  \n (1,077,865) \n (12,911,963) \n 18,999  \n (6,954) \n 310,696 \n\nLease liabilities \n 583,445  \n -  \n -  \n (46,071) \n (452,582) \n 3,898  \n 5,087  \n 93,777 \n\n  \n 25,509,250  \n -  \n 21,897,617  \n (23,215,606) \n (18,663,495) \n 427,744  \n 428,320  \n 6,383,830 \n\n  \n    \n    \n    \n    \n    \n    \n    \n   \n\n2024 \n    \n    \n    \n    \n    \n    \n    \n   \n\nBank borrowings \n 12,819,230  \n -  \n 31,774,854  \n (34,685,698) \n -  \n 707,746  \n (263,142) \n 10,352,990 \n\nOther borrowings \n 664,479  \n -  \n 963,547  \n (528,681) \n -  \n 30,461  \n 335  \n 1,130,141 \n\nAmounts due to an ultimate beneficial shareholder \n 17,322,288  \n -  \n 1,524,747  \n (5,482,537)* \n -  \n 73,102  \n 5,074  \n 13,442,674 \n\nLease liabilities \n 198,268  \n 447,141  \n -  \n (77,751) \n -  \n 19,955  \n (4,168) \n 583,445 \n\n  \n 31,004,265  \n 447,141  \n 34,263,148  \n (40,774,667) \n -  \n 831,264  \n (261,901) \n 25,509,250 \n\n \n\n*included receivables\nof $4,466,533 offsetting against the amount due to an ultimate beneficial shareholder\n\n \n\n \n\n**26**\n**COMMITMENTS\nAND CONTINGENCIES**\n\n \n\n*Capital\nCommitment*\n\n \n\nThe\nGroup has the following capital commitments at the end of the reporting period:\n\n SCHEDULE\nOF CAPITAL COMMITMENT \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nContracted, but not provided for: \n    \n   \n\nProperty, plant and equipment \n -  \n 42,140 \n\n \n\n*Contingencies*\n\n \n\nIn\nthe ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and\na variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable,\nand the amount of the loss is reasonably estimable. In the opinion of management, there were no material pending or threatened claims\nand litigation as of December 31, 2025 and through the issuance date of these consolidated financial statements.\n\n \n\nF-41\n\n \n\n \n\n**27**\n**SUBSEQUENT\nEVENTS**\n\n \n\nThe\nGroup evaluated all events and transactions that occurred after December 31, 2025 up through April 23, 2026, which is the date that these\nconsolidated financial statements are available for distribution.\n\n \n\nCL\nWorkshop Group Limited 2026 Equity Incentive Plan was adopted on January 1, 2026, to promote long-term success, attract and retain key\nmanagement employees, directors, and consultants, and align interests of such service providers with those of the shareholders. The Plan\nallows various equity grants.\n\n \n\nOn\nMarch, 2026, the Company completed the sale of an office in Peru that had been classified as held for sale as at December 31, 2025. The\nsale was completed for total consideration of $640,000.\n\n \n\nOther\nthan the events disclosed above, no other material subsequent events have occurred that would require recognition or disclosure in the\nCompany’s consolidated financial statements.\n\n \n\n**28**\n**DISCONTINUED\nOPERATIONS AND DISPOSAL OF SUBSIDIARY**\n\n \n\nOn\nJune 30, 2025, the group entered into a sale agreement to dispose of Peru Forestry Management Co, Limited and its subsidiaries, which\ncarried out all of the group’s manufacturing operations. The disposal was effected in order to allow the Group to concentrate its\nresources on exploring new opportunities and new product mix. After completion of the Disposal, the Group will continue to focus on trading\nof wood products and exploring new opportunities. The disposal was completed on June 30, 2025, on which date control of Peru Forestry\nManagement Co, Limited and its subsidiaries passed to the acquirer. Details of the assets and liabilities disposed of, and the calculation\nof the profit or loss on disposal, are disclosed below.\n\n \n\nThe\nresults of the discontinued operations, which have been included in the profit for the year, were as follows:\n\n SCHEDULE\nOF INCOME STATEMENT OF DISCONTINUED OPERATIONS\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\n  \n   \n   \n  \n\nRevenue \n 785,639  \n 5,198,772  \n 7,783,302 \n\nExpense \n (6,658,423) \n (12,989,489) \n (19,006,403)\n\nLoss before income tax \n (5,872,784) \n (7,790,717) \n (11,223,101)\n\nIncome tax expense \n -  \n -  \n (5,917)\n\nNet gain on sale of discontinued operations, net of applicable income tax \n 6,433,304  \n -  \n - \n\nNet gains (losses) attributable to discontinued operations (attributable to owners of the parent entity) \n 560,519  \n (7,790,717) \n (11,229,018)\n\n  \n    \n    \n   \n\nExchange difference arising from translation of discontinued operations \n (50,514) \n (121,290) \n 2,076 \n\nOther comprehensive (expenses) income from discontinued operations \n (50,514) \n (121,290) \n 2,076 \n\n  \n    \n    \n   \n\nEARNING (LOSS) PER SHARE FROM DISCONTINUED OPERATION – BASIC AND DILUTED \n 0.00  \n (0.06) \n (0.10)\n\n  \n    \n    \n   \n\n**EARNING (LOSS) PER ADS FROM DISCONTINUED OPERATION – BASIC AND DILUTED (1)** \n 0.03  \n (0.47) \n (0.80)\n\n \n\nNotes:\n\n \n\n(1)\nEach\nADS represents eight Class A ordinary shares.\n\n \n\nF-42\n\n \n\n \n\nThe\ncash flow information presented below are for the six months ended June 30, 2025 and the year ended 31 December 2024 and 2023\n\n SCHEDULE\nOF CASHFLOW STATEMENT OF DISCONTINUED OPERATIONS\n\n  \n2025  \n2024  \n2023 \n\n  \nUSD  \nUSD  \nUSD \n\nNet cash inflow (outflow) from operating activities \n 3,915,067  \n (1,847,214) \n (452,185)\n\nNet cash outflow from investing activities \n (241,020) \n (752,366) \n (1,150,104)\n\nNet cash (outflow) inflow from financing activities \n (927,075) \n (1,185,033) \n 521,411 \n\nNet increase (decrease) in cash generated by the discontinued operations \n 2,746,972  \n (3,784,613) \n (1,080,878)\n\n \n\nA\ngain of $6,433,304 arose on the disposal of Peru Forestry Management Co, Limited and its subsidiaries, being the difference between the\nproceeds of disposal and the carrying amount of the subsidiary’s net assets.\n\n \n\nIn\naddition, on June 30, 2025 the board resolved to dispose of the group’s manufacturing operations and negotiations with interested\nparty have subsequently taken place. The disposal is consistent with the group’s long-term policy to focus its activities on the\ngroup’s other businesses. These operations, which are expected to be sold on the same date. The net assets of Peru Forestry Management\nCo, Limited and its subsidiaries at the date of disposal were as follows:\n\n SCHEDULE\nOF CONSIDERATION TRANSFERRED\n\n  \nAs at the date of disposal \n\n  \nUSD \n\nNet liabilities disposed of \n (6,433,303)\n\nGain on disposal \n 6,433,304 \n\nTotal consideration \n 1 \n\n  \n   \n\nSatisfied by: \n   \n\nCash \n 1 \n\nTotal consideration transferred \n 1 \n\n \n\nThe\ngain on disposal is included in the profit for the year from discontinued operations.\n\n \n\n**29**\n**NON-CURRNET\nASSET HELD FOR SALE**\n\n \n\nAssets\nclassified as held for sales:\n\n SCHEDULE\nOF ASSETS HELD FOR SALE\n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nNon-current assets held for sales: \n    \n   \n\nLand and property \n 640,000  \n - \n\nTotal \n 640,000  \n - \n\n* *\n\n*Land\nand property held for sale*\n\n \n\nIn\nDecember 2025, the director of the company decided to sell a land and property which was originally acquired for an office in Peru operation.\nThe transaction was completed in March 2026.\n\n \n\n*Non-recurring\nfair value measurement*\n\n \n\nLand\nand property classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value\nless cost to sell at the time of the reclassification, resulting in the recognition of a write-down of $394,786 as administrative expenses\nin the statement of profit or loss. The fair value of the land and property was determined using the quoted market price approach. This\nis a level 1 measurement under the fair value hierarchy.\n\n \n\nF-43"}