HARBIN, China, Feb. 3, 2009 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today that the Company will begin marketing a large scale urban development project that will require landscape seedlings, plants and trees. The company will target projects in the southern-west city Kunming, its surrounding regions and Dianchi Lake, and will supply landscape plants from forests in Yunnan Province that the company is acquiring through its latest letter of intent.
Commenting on the Company's establishing a transplanting business of landscape plants, Mr. Yuan Tian, CEO of CHFY, stated, "In Kunming city, it is estimated that the annual market demand for forestation seedling is between two million to three million pieces and the demand for landscape plants is between thirty million to fifty million pieces. According to the official document of Strengthening City Forestation and Accelerate Urban Biological Construction, Kunming city plans to construct green plazas in the urban centers on a large scale and is requiring that plant coverage be at least 80%. In addition, Kunming city government plans to construct 40 gardens surrounding the Dianchi Lake, and there are several golf courses and high-grade residence community currently under construction."
"The market price of landscape plants is evaluated by piece and species. For example, the market price for evergreen trees with diameters of 20 centimeters is around US$580 per piece, and the transplantation costs are around US$145 per piece, so the profit of each piece of evergreen tree is around US$435 per piece. For these rare evergreen trees with diameters of 40cm to 60cm, the market price is over US$2,899 per piece.
"In September 2008, the forest company that we are acquiring under our latest LOI undertook a trial operation for one month, and completed the root pruning of over 1,000 pieces of landscape plants. The major species of these landscape plants were evergreen trees that had diameters between twenty centimeters and fifty centimeters and averaged a market price of US$580 per piece. We estimate that we will be able to complete root pruning of 6,000 pieces that will have a market value of over US$3.6 million during our first year of operation," 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.
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.