Agarwood is a dark resinous heartwood that forms in some Aquilaria species when they become infected with a type of mold. Aquilaria Sinensis is one of the Aquilaria species that produce agarwood . It is an evergreen tree native to South China and Hong Kong 's countryparks . It is useful as the resin extracted from the fungus infected wood can be used for making incense and Chinese medicine, its wood for joss sticks and its bark for paper.