Contract more forest resources:The Company believes that it is essential to secure more land contracting agreements to operate forest harvest and plantations in the coming years. The demand for wood products will increase significantly over the next few years. This increase in demand will also intensify the competition for forest plantations and may result in price increases. The Company thus considers it an “early mover” advantage to contract as much plantation land as reasonably possible at the current price level for long-term use.

Cover additional steps along the value chain for wood: Taining South Forestry Company currently has covered parts of the value chain for wood. In order to increase its margins, Company intends to cover additional stages of the value chain for harvested trees by enhancing production capacity of Company intends to add 3 production lines, to achieve an annual production capacity of 720 000 pieces

Through Technology cooperation with Center of Chinese fir Research , Fujian Agriculture and Forestry University, Company established Fast-Growing Timber Forest Bases. Benefited from this project, the company could shorten the growth cycle of fir and guarantee the quantity and quality of timber supply.