Agarwood is a highly sought-after resinous wood for use in medicine, incense, and perfume production. However, the process of agarwood formation is slow. In this study, the induction of agarwood formation in three-year-old Aquilaria sinensis “Qinan” trees through treatment with ethephon, hydrogen peroxide, sodium chloride, distilled water, and wounding was investigated. The results showed that the starch content significantly decreased and that the soluble sugar content significantly increased during the process of agarwood formation, with no significant difference between the different treatment groups. The net photosynthetic rate significantly decreased. Except for the sodium chloride treatment, the total antioxidant capacity and the contents of flavonoids and phenols significantly increased during the process of agarwood formation. The essential oil yield of the ethephon and hydrogen peroxide treatment groups was significantly higher than that of the other treatment groups, with the highest essential oil yield in the ethephon treatment group. Compared to the control group, salt treatment produced the lowest essential oil yield of agarwood. The results indicate that appropriate concentrations of ethephon and hydrogen peroxide can promote the formation of agarwood in A. sinensis “Qinan”.