Oak Woods Acquisition Corporation Reports Decrease in Net Income and Total Assets for Fiscal Year 2024

Oak Woods Acquisition Corporation has reported its financial performance for the fiscal year ending December 31, 2024, revealing a net income of $191,545, a decrease from the previous year's net income of $1,308,097. The company generated interest income of $2,940,555 from investments held in its Trust Account, which was partially offset by formation and operating costs totaling $2,746,762. The company has not yet commenced any operations related to a business combination, as it is still in the process of finalizing its merger with Huajin (China) Holdings Limited.

Compared to the previous fiscal year, Oak Woods experienced a significant decline in total assets, which decreased from $61,199,425 in 2023 to $48,434,004 in 2024. This decline was primarily due to a reduction in cash and investments held in the Trust Account, which fell from $60,765,154 to $48,084,367. The company also reported a working capital deficit of $4,388,114 as of December 31, 2024, indicating challenges in meeting its short-term obligations.

Strategically, Oak Woods has made significant progress in its proposed merger with Huajin, entering into a Merger Agreement on August 11, 2023. The agreement has undergone several amendments to extend the deadline for completing the business combination, with the latest extension allowing until September 28, 2025. The company has also secured a deposit of $330,969 from Huajin to facilitate the merger process. However, the company has faced challenges, including the redemption of 1,492,646 Class A ordinary shares at a price of $11.20 per share, which resulted in a cash outflow of $16,541,342 from the Trust Account.

Operationally, Oak Woods has not generated any revenue since its inception and has incurred losses primarily due to formation and operating costs. The company has a limited employee base, with only one executive officer, Lixin Zheng, serving as both CEO and CFO. The company’s outlook remains uncertain, as it must complete its business combination by the extended deadline or face liquidation. Management has indicated that it may need to raise additional capital to fund operations and complete the merger, raising concerns about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty.