HARBIN, China, Nov. 20, 2009 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today the Company has entered into a letter of intent to acquire the landscape engineering and construction firm Shaan'Xi Province Gaoxin Agriculture and Animal Husbandry Development Holding Co., Ltd., in Xi'An City, Shaan'Xi Province.
Gaoxin provides landscape design, engineering, construction and maintenance services to a target market of universities, parks, municipal spaces, golf course, sports venues, gardens and highways; and maintains a seedling nursery of over three thousand acres. Its staff of 40 employees generated 2008 revenue in excess of RMB 81 million.
Commenting on the Gaoxin LOI, Mr. Yuan Tian, CEO of CHFY, stated, "Management has invested considerable energy and effort to identify an operating business that complements our timber investments. CHFY can provide Gaoxin with access to capital for further development of their seedling business and geographic expansion of their landscape engineering projects. Although the LOI is not legally binding, we see this as a win-win situation for two companies dedicated to the sustainable economic development of China's environment."
"Given the participation of international landscape architects on the Beijing Olympics and the recent international awards received by Chinese landscape projects, we feel this is a prized market with vast potential, and we greatly value Gaoxin's experience in winning contracts in a thriving market complicated by the challenges of sustainable development," said Mr. Tian.
About China Forestry Inc.:
China Forestry Inc. (OTCBB:CHFY) is a timber investment group formed in the People's Republic of China to conform to State laws that prohibit non-PRC ownership of forest lands. The Company's strategy is to capitalize on the Chinese Government's decision to promote sustainable forest management through land tenure reforms that include the transferability of forest user right certificates to PRC entities. The Company's current holdings include ownership of four user right certificates representing 1,561 hectares of State forest assets in China's northeastern Heilongjiang Province, home to China's most valuable timber and one of the most distinctive temperate forests in the world due to its rare biodiversity. For more information, please visit the Company's website at: http://www.chinaforestryinc.com.
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