Oak Woods Acquisition Corporation Reports Q3 2025 Financial Results with Significant Net Income Decline

Oak Woods Acquisition Corporation has reported its financial results for the third quarter of 2025, revealing a net income of $13,889 for the three months ended September 30, 2025, a significant decrease from the net income of $335,717 reported in the same period of the previous year. For the nine months ended September 30, 2025, the company recorded a net loss of $134,546, compared to a net income of $287,416 for the same period in 2024. The decline in profitability is attributed to increased operating expenses, which totaled $1,508,945 for the nine months ended September 30, 2025, down from $2,106,888 in the prior year.

The company’s total assets decreased to $43.3 million as of September 30, 2025, from $48.4 million at the end of 2024. This decline was primarily driven by a reduction in cash and investments held in the Trust Account, which fell from $48.1 million to $43.3 million. The company’s current liabilities also increased significantly, rising to $7.3 million from $4.4 million, largely due to higher promissory notes and accrued expenses. The accumulated deficit has grown to $9.3 million, up from $6.4 million at the end of the previous fiscal year.

Strategically, Oak Woods is in the process of completing a merger with Huajin (China) Holdings Limited, which was formalized through a Merger Agreement on August 11, 2023. The merger is expected to close subject to certain conditions, and Huajin has made a deposit of $330,969 to facilitate the transaction. The company has also extended its timeline to complete the merger multiple times, with the latest extension allowing until March 28, 2026, to finalize the business combination. This extension was approved during an Extraordinary General Meeting held on October 8, 2025.

Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on the merger process. As of September 30, 2025, Oak Woods had a working capital deficit of $7.3 million, indicating a need for additional financing to support its operations and potential business combination. The company has relied on loans from its sponsor, Whale Bay International Company Limited, to meet its liquidity needs, with outstanding promissory notes totaling $4 million as of the reporting date.

Looking ahead, Oak Woods Acquisition Corporation faces significant challenges, including the need to secure additional capital and successfully complete its merger with Huajin. The company has expressed uncertainty regarding its ability to continue as a going concern if it cannot raise sufficient funds or finalize the merger within the extended timeline. The management has indicated that it will continue to explore financing options and work towards completing the business combination to enhance shareholder value.