Hong Kong, - China Forestry Holdings Co., Ltd. ("China Forestry" or the "Company", HKSE: 930), an operator of privately-held and naturally regenerated plantation forest in China, announced the signing of a non-binding letter of intent with the Government of Qiandongnan Perfecture, Guizhou province. Under the agreement, China Forestry will invest in and develop three million mu (approximately 200,000 hectares) of renewable raw material forestry base land, and provide environmentally friendly forestry products processing, wood (bamboo) and seed cultivation, new varieties of polyploidy trees as well as cultivating new varieties of genetically modified trees, and the sales and research and development of related products.
China Forestry's current forest reserves are mainly situated in Sichuan and Yunnan provinces. The confirmation and completion of this partnership will facilitate the Company's strategic expansion to Guizhou province, the optimization of its forest reserves, and the development of its upstream resources business.
Mr. Li Kwok Cheong, Founder and Chairman of China Forestry, said, "Following an investment invitation extended by the Government of the Qiandongnan Perfecture in Guizhou Province to our company in September, I am delighted that the Qiandongnan Government has once again chosen the Company as its partner, making China Forestry the only upstream supplier of this project. This is proof that that our forestry development, seeding and cultivation capabilities are recognized and supported by the provincial government. Support from the Guizhou Provincial Government for this investment is extremely beneficial for the sustainable growth of the business. It is a reflection of China Forestry's improving business prospects and provides support for the Company's future development. "