HARBIN, China, April 1, 2009 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, which recently announced a letter of intent to acquire forest in southwestern China and its intent to supply landscape plants and trees to large scale urban development projects within that region, today provided the market with additional insight into its revised business model by its CEO, Mr. Yuan Tian.
"Given the current economic slowdown and the depressed prices for logs, we see the opportunity to transplant landscape plants and trees in Yunnan Province as an excellent way to add long-term value for our shareholders by creating another revenue source for our company. Even once the global economy recovers, I anticipate that China's forest authorities will be more supportive of businesses that promote their express national goals to increase forest coverage than producers of logs.
"Not only is there significant demand in the region for landscape plants and trees due to the urban development, the region allows us to replant with faster growing species for a faster return on investment," said Mr. Tian.
Commenting on the Company's revised business model, Mr. Tian stated, "We will make closing the Yunnan Province forest LOI a priority in order to begin pruning plants and trees for landscape transplanting as soon as the weather permits in May. They are currently completing construction of a road to connect their base of operations to the main highways into Kunming city.
"In the meantime, we will continue to seek to expand our forest holdings through purchases of individual forest user right certificates. Currently we own user right certificates representing 1,561 hectares of forest in Heilongjiang Province and have LOIs for additional 1,166 hectares there. In Yunnan Province, our latest forest LOI represents 1,333 hectares of forest."
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.
Forward Looking Statement:
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.