Oak Woods Acquisition Corporation Reports Q2 2025 Financial Results with $100,648 Net Loss

Oak Woods Acquisition Corporation has reported its financial results for the second quarter of 2025, revealing a net loss of $100,648 for the three months ending June 30, 2025, compared to a loss of $191,805 during the same period in 2024. For the first half of 2025, the company recorded a net loss of $148,435, which is a significant increase from the $48,301 loss reported in the first half of 2024. The company's operating expenses for the second quarter were $532,920, down from $984,711 in the prior year, while interest income from investments held in the Trust Account amounted to $430,564, compared to $793,781 in the previous year.

The company’s total assets as of June 30, 2025, were reported at $42,581,597, a decrease from $48,434,004 at the end of 2024. This decline is primarily attributed to a reduction in investments held in the Trust Account, which decreased from $48,084,367 to $42,361,047. The company also experienced an increase in current liabilities, which rose to $6,554,934 from $4,392,751, largely due to an increase in promissory notes to related parties and accrued expenses.

In terms of strategic developments, Oak Woods Acquisition Corporation 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 subject to various conditions and is expected to be completed by March 28, 2026, following several extensions approved by shareholders. The company has made deposits totaling $1,035,000 into the Trust Account to facilitate these extensions. As of June 30, 2025, the company had 3,577,425 Class A ordinary shares subject to possible redemption, valued at $42,361,047.

Operationally, the company has not yet commenced any revenue-generating activities, as it is focused on finalizing the merger. The company’s cash position remains low, with only $25 available outside the Trust Account, reflecting a working capital deficit of $6,506,884. The company has indicated that it may need to secure additional financing to meet its operational needs and complete the merger. The management has expressed uncertainty regarding its ability to continue as a going concern if it cannot raise the necessary capital.

Looking ahead, Oak Woods Acquisition Corporation is focused on completing its merger with Huajin and is actively seeking to address its liquidity challenges. The company has acknowledged the potential impact of geopolitical events on its operations and the broader market, which could affect its ability to finalize the merger. The management remains committed to executing its business strategy while navigating these challenges.