HARBIN, China, Nov. 30, 2009 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, cited the limited opportunity to generate revenue from its timber holdings during the current global economic slowdown in today announcing a strategic shift in its near term investment criteria.
Current investment candidates will now only be consider if they (1) have operating revenues, (2) are a high growth business (3) are complementary to our timber holdings (3) are committed to sustainable development (4) have significant competitive advantages (5) operate in a high growth market and (6) provide a strategic fit with our objective for a more senior US listing of our shares of common stock.
Commenting on the strategic shift in its near term investment criteria, Mr. Yuan Tian, CEO of CHFY, stated, "Although the current weakness in demand for timber and wood products improves our negotiating position for new timber user right certificates, the current economic environment makes timber harvesting uneconomical. Therefore we have indefinitely postponed applying for harvesting permits to focus on investment with a more profitable rate of return. We are targeting business that are not only complementary to our timber holdings and our sustainable development philosophy but that also enhance our ability to uplist our shares to a more senior exchange."
"We have focused our recent due diligence on investment candidates that would qualify for the requirements of a senior US listing and whose ownership appreciates our management team's experience and objectives in developing a US listed company," 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.
Safe Harbor 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.