Until May 31,2008, FTCS holds forestry assets including 123,102mu of forest land, 492,943m³of wood storage volume，and 8311830pieces of bamboo in Taining county, Fujian Province, and the average storage volume is around 6.46cubic meter per mu.

Forestry resource of CFI：

FTCS managed123,102 mu of forest land from 2006 to May 2008 by means of purchase and trusteeship, where plants most

grown-up woods, and the wood storage volume as below：

FTCS gains much more additional value and profits due to its forestry acquisition at lower price and ensure the supply volume to the market and gain the appreciation of asset of forest volume and raise the forest resource.

The fair values of the Biological Assets of FTCS at 31 May 2008 estimated by Jones Lang LaSalle Sallmanns Limited are RMB253,482,000, together with the values of forestry land use rights, the combined values are RMB262,498,000.

2、fast-growth forest plantation

The fast-growth forest business is the essential point on the company business, which forms the entire forest industrial chain, and realizes the constant development plan of CFI.

The planting cycle of fast-growth forest：

Fast-growth forest business improves the efficiency of forest land, as well as the quality of wood products, moreover, it does help to protect the ecological commonweal forest and our green environment.

CFI has made close co-operation with forestry research institute and forestry university for a long time in the research and development of fast-growth forest, such as seed selection, cultivation, fertilizing, anti-winterkill, anti-insect pest, and heavy harvest, which has been used in the practical operation.