Two "notice" set limited to the implementation of the two-Fu industrial investment Project

The two "notices" issued in November 2010 in Fujian Province will limit the two projects that the company has not yet implemented, and the performance of its most important subsidiaries in the next 3 years will also be affected. China-FU Industry announced today the announcement of the November 2010 Fujian Provincial Forestry Department issued the "on the moratorium on natural forest harvesting emergency notice," the same month, Fujian Provincial party committee, the provincial government issued the "on speeding up afforestation and afforestation to promote forest Fujian construction notice." According to the spirit of these two "notices", Fujian Province will strictly control the production of low yielding forest from 2011 onwards for three consecutive years. Suspension of natural broad-leaved forest harvesting, suspension of natural coniferous forests are cut, the mountain slope is more than 25 degrees of the general artificial timber forest to promote selective cutting, Fujian province, the total cutting area control in "Eleven-Five" period of annual average cut area of 50% Within。 In view of this, in 2010, the company said that the two projects "Mingxi County Heng Feng Forestry Co., Ltd. 100,000 mu of low quality and lower-yielding forest reconstruction project" and "Longyan Mountain, Fujian province, 100,000 mu of industrial raw materials forest Base construction project" will be subject to certain policy restrictions,　　At present, the company is communicating with forestry management department to further demonstrate the influence of policy factors on the implementation of the two fund-raising projects. According to the China-fu industry last November, the implementation of the plan, the company raised a total of five projects, of which two are proposed to raise funds of 124.608 million yuan and 133.209 million yuan respectively into the "Mingxi County Heng Feng Forestry Limited Liability company 100,000 MU of low quality and lower-yielding forest reconstruction project" and " Fujian Longyan Mountain TianLin Industry Co., Ltd. 100,000 mu of raw material forest base construction project.　　Mingxi County's project is expected to be put into operation in a rotation within the total sales revenue of 504.311 million yuan, the total net profit of 203.49 million yuan; Longyan project is expected to be put into operation after a rotation within the total sales revenue of 518.4 million yuan, net profit amounted to 179.435 million yuan. It is understood that the current two projects involving a total of 257.817 million yuan to raise funds has not been in accordance with the original plan to inject two companies by means of capital increase, but temporarily stored in the capital of the parent company in the Fu industrial households.　　Industry Analysis, if the above two "notice" to the company's investment projects have a greater impact on the future development of the two projects may have variables. In addition to the restrictions on the investment project, the most important forestry subsidiary of Jianou, the forestry company from 2011 to 2013, will also be affected by the above-mentioned documents: first, there are great changes in the way of cutting, the yield of main cutting will be reduced, and the yield of main cutting and thinning can be increased. The second is that the production cost will be improved because of the change of logging mode; Third, the sales income is reduced (the same tree species tending thinning material is lower than the main cutting material); four, forestry companies due to lower sales revenue and higher costs will lead to lower profits; Five is to affect the company in the production of high-density fiberboard raw materials (such as wood) supply,　　The price of raw materials is likely to rise. AccountsBefore, the Sino-Fu industry under the forestry subsidiaries have not officially received the local Forestry management department issued the forest Felling index. The company said that after the logging index is formally issued, the company will make a timely announcement. Responsible Editor: NF045