As a leading commercial forest plantation operator in China, Sino-Forest operates in ten key provinces in China, with over 2,500 full-time employees, managing approximately 726,200 hectares of plantation trees as at June 30, 2010. We strive continuously to increase our portfolio of plantations, our productive yield and the range of our forest products and services, while preserving local ecological environments and supporting local employment and community development.

We are uniquely positioned to reap value from China’s vast wood product market potential. The enormous population and the fast-growing economy and middle class of the People’s Republic of China (PRC) are creating strong demand for industrial and consumer wood-based products. We believe that we have the competitive advantages and proven strategies to reach our bold but realistic goals for the future.
 

Sino-Forest at a glance
	Leading commercial forest plantation operator in the PRC with 15 years of established track record of strong growth and profitability;
	Proven ability to acquire fibre and develop fast-growing, high-yielding tree plantations in designated plantation areas;
	Expertise in operating commercial plantations in a sustainable manner; strong research & development capability and advanced silviculture techniques;
	Well established and geographically diversified operations in fast-growing China, which has a chronic wood fibre deficit;
	Strong and respected brand and established business and government relationships in the PRC’s forestry industry;
	Listed on the Toronto Stock Exchange; ready access to capital worldwide;
	Attractive price to earnings ratio.

Sino-Forest Operations

In order to serve China's various wood-based industries, Sino-Forest provides value added forestry products and services along the wood product supply chain.

Our businesses are separated into two main divisions:

• Wood Fibre Operations, where fibre sales and income are generated from the following segments:
  
  • Plantation Fibre
  • Other Fibre - Wood logs
  • Other Fibre - Imported wood products
    
    
• Manufacturing & Other Operations, consist of:
  
  
  • engineered-wood flooring produced in Jiangsu Province and distributed through more than 300 outlets nationwide in the PRC;
     
  • sawn timber produced in Yunnan and Heilongjiang Provinces;
     
  • finger-joint board and block board produced in Hunan Province;
     
  • plywood and veneer products produced in Guangxi Province;
     
  • and greenery and nursery operations based in Jiangsu Province.
    

Our Strategic Goal

Our primary goal is to increase our wood fibre output to 17 million cubic meters ("m³") by 2011. This goal is challenging but realistic, given our proven track record and competitive strengths.

In 2009, we sold 14 million m³ of wood fibre from our plantation operations.

Our Strategies

Our 15-year track record demonstrates the success of our long-term strategy of building a strong, sustainable and viable business. After establishing plantations in strategic locations along the coastal area of southern China in 2006. We expanded our plantations to inner provinces and adopted an integrated plantation model, locking in access to fibre through long-term master agreements. This allows us to better seize market opportunities to diversify and grow our income streams. We execute the following growth strategies:

	focus on acquiring, at fixed prices, long-term access to strategically located plantation trees in promising Chinese markets;
	continue to improve our plantation yields by investing in and applying advanced research and development and silviculture techniques;
	practice sustainable forestry management, strategic government relations, and responsible community involvement (align with China’s three Fs policy – agriculture, farmers and villages);
	leverage our manufacturing and processing facilities to maximize the usage and value of our wood fibre; and
	further broaden our base of investors, and enhance our corporate image and profile.

Our Competitive Advantages

Sino-Forest has developed the following competitive advantages

	a leading market position in PRC’s fast-growing, high-yielding commercial plantation sector;
	A large portfolio of strategically located plantations, mainly in southern and eastern regions of China;
	extensive forestry and management expertise; e.g. the Gaoyao plantation in Guangdong Province was the first commercial plantation to receive Forest Stewardship Council (FSC) certification in China;
	strong research and development capabilities, and systematically applied silviculture techniques that maximize plantation yields; and
	A strong reputation and brand, and established business and government relationships in the forestry sector throughout the PRC.