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SINO-FOREST CORPORATION
 
As a leading, foreign-owned, commercial forestry operator in China, Sino-Forest operates in ten key provinces in China, with over 2,000 full-time employees, managing approximately 327,000 hectares of plantation trees as at June 30, 2008. We continuously increase our plantation portfolio, our plantation yield and our range of 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 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, foreign-owned, commercial plantation operator in the PRC;
One of the top suppliers of commercial wood fibre in China;
13-year track record of strong growth and profitability;
Expert in operating China’s commercial forestry plantation and sustainable development;
Strong brand name and established relationship with local forestry bureaus;
Listed on the Toronto Stock Exchange, access to international capital; and
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:

Our Strategic Goal

At our Annual Shareholders Meeting held in June 2006, Sino-Forest’s management unveiled its primary strategic goal to increase our wood fibre output from 8 million cubic meters m3 to 15-20 million m3 by 2010. This goal is challenging but realistic, given our proven track record and competitive strengths.

Our Strategies

Our thirteen-year track record demonstrates our successful strategy of building up a strong, viable business. In order to achieve our long-term goals, we must be at the forefront of our industry – moving into inner and northern PRC Provinces to lock in strategic locations and seize opportunities for diversification and growth. We have developed the following strategies:

focus on acquiring additional forestry plantation trees and access to long-term supply of wood fibre in promising Chinese markets;
continue to improve the yields at our plantations by investing in research and development;
practice sustainable forestry management;
leverage on 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

our leading market position as a foreign-owned, commercial plantation operator in the PRC;
plantations strategically located, mainly in southern China;
extensive forestry and management expertise; e.g. the Gaoyao plantation in Guangdong Province first Forest Stewardship Council Certification (FSC) for a commercial plantation;
strong research and development expertise, and systematically applies silviculture techniques to maximize annual yield at its plantations; and
strong brand and reputation, established relationships with local forestry bureaus and local communities in the PRC.

 


Established in 1994, Sino-Forest has demonstrated 13-year strong track record of growth and prosperity.

Our strategic goal is aligned with China’s 11th Five-year Plan whereby the central government has pledged to reduce poverty in rural areas and improve community livelihoods by accelerating regional economic development in inner and northern regions of the country.
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