Sino-Forest On Track with Operations and First Quarter Reporting; Not Aware of Any Reason for Share Price Decline

TORONTO, May 25, 2011 /CNW/ - Sino-Forest Corporation ("Sino-Forest") (TSX:TRE), a leading, commercial forest plantation operator in China, announced today that it is on track with achieving its operating goals and reporting its first-quarter 2011 results on time as previously announced.

Sino-Forest Chairman and CEO, Allen Chan, said, "Our management team is not aware of any operating or financial matters that should cause investors any concern about our first quarter results to be released on June 14, 2011. We have a 16-year track record of outstanding operating and financial performance and our corporate governance and transparency is of the highest standards. We see no reason justifying the company's recent share price decline."

Sino-Forest continues to acquire fibre plantations under existing long-term purchase agreements and enter into long-term land lease agreements for replanting. With all the required financial and human resources, the company is on target with executing its six existing master agreements, which cover approximately 1.3 million hectares of officially designated commercial plantation land. In the first three months of 2011, Sino-Forest has sold approximately 2.5 million cubic metres of fibre, at an average selling price of approximately $89 per cubic metre. This represents an increase of 32% and 6% respectively over the prior years' period.

On May 13, 2011, Sino-Forest announced that it intends to report its first quarter 2011 results for the first time under International Financial Reporting Standards ("IFRS") on June 14. As is required for all publicly accountable enterprises in Canada, Sino-Forest has adopted IFRS, which replaces Canadian Generally Accepted Accounting Principles ("GAAP") effective January 1, 2011. The Canadian Securities Administrators have granted a 30-day extension to all issuers filing their first IFRS interim financial report.

About Sino-Forest Corporation

Sino-Forest Corporation is a leading commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong Kong-listed investment holding company (HKSE: 00094) with operations based in Suriname, South America and New Zealand. The company is involved in responsible and sustainable log harvesting, lumber processing and sales and marketing of logs and lumber products to China and other countries around the world. Sino-Forest's common shares are listed on the Toronto Stock Exchange under the symbol TRE since 1995. Learn more at www.sinoforest.com.

 

Please note: This press release contains projections and forward-looking statements regarding future events. Such forward-looking statements are not guarantees of future performance of the Company and are subject to risks and uncertainties that could cause actual results and company plans and objectives to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but not limited to, changes in China and international economies; changes in currency exchange rates; changes in worldwide demand for the Company's products; changes in worldwide production and production capacity in the forest products industry; competitive pricing pressures for the Company's products and changes in wood and timber costs.


 

 

 

SOURCE Sino-Forest Corporation

For further information:

SINO-FOREST CORPORATION      

Toronto
Dave Horsley
Senior Vice President & Chief Financial Officer
Tel:        +905 281 8889 Email:    davehorsley@sinoforest.com
   
Hong Kong
Louisa Wong Senior Manager, Investor Communications & Relations
Tel:       +852 2514-2109
Email:   louisa-wong@sinoforest.com

 

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Sino-Forest Corporation

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