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

May 25, 2011

TORONTO, May 25, 2011 /PRNewswire/ – 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


Source: newswire



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