China Forestry Holdings Co., Ltd. is an investment holding company. It is an operator of naturally regenerated forests and plantation forests in China. The Company is principally engaged in forest management and sustainable development, and harvesting and sales of timber. It is focused on the development and supply of timber for the manufacturers in the construction, furniture, interior decoration, wood product and paper industries in China. As at 30 June 2009, the Company owned and operated about 171,180 hectares of forests with a stock volume of around 35.5 million cubic meters with Sichuan and Yunnan accounting for approximately 12,447 hectares and 159,333 hectares, respectively. During the year ended December 31, 2009, the Company鈥檚 forest reserves in Yunnan Province had increased by 33% to 212,666 hectares. The Company鈥檚 subsidiaries include Kunming Ultra Big Forestry Resource Development Co., Ltd (Kunming Ultra Big) and Chengdu Yishang Forestry Resource Development Co., Ltd.

China Forestry Holdings Co Ltd has grown to be one of the three largest, privately-held, naturally regenerated and plantation forest operators in China in terms of coverage area of owned forest rights. We commenced operations in 2003 when the Chinese government started to encourage the opening of the forestry industry to the private sector. Since then we have become a major player in the industry, primarily engaged in the management and sustainable development of forests and the harvesting and sale of logs to meet the increasing demand in China.

Our forests are strategically located in Yunnan and Sichuan provinces, which are ranked second and third in terms of forest stock volume, respectively, by the China Forestry Statistical Yearbook 2007. We currently own and operate about 171,780 hectares of forests with a stock volume of around 35.5 million m3 as at 30 June 2009, with forests in Sichuan and Yunnan provinces accounting for approximately 12,447 hectares and 159,333 hectares, respectively.

The major tree species in our forests is Chinese fir, which is prized for its light and durable timber used in building. Birch, beech and Yunnan pine are also planted in our forests. Over 90% of our forests are immediately harvestable.