Statistics show that there is a total forest area of 174.9092 million hectares with the forest coverage rate of 18.21%, total stumpage reserves of 13.618 billion cubic meters, and forest reserves of 12.456 billion cubic meters in China.

Age group of forest resources

During the first six months of 2006, the total afforestation area of 2.709 million hectares (4,064 mu) was completed, accounting for 54.46% of the yearly planned, of which key forest projects area was 1.2392 million hectares, accounting for 45.74% of the total new afforestation area.

In the first half of 2006, total 21.8869 million cubic meters of timber was produced in China, an increase of 1.82% over the same period in 2005. The output of artificial plywood was 28.3246 million cubic meters. Total forestry production value reached RMB 381.408 billion, increasing by 33.28% over the previous year.

The facts that GDP has grown at an average annual rate of 8% and annually increasing population is 11 million as well as new purchasing capacity is RMB 63 billion have brought about increasingly more high-end consumers and further enhanced urbanization. Meanwhile, real estate industry has become one of China's pillar industries, which will rapidly stimulate the wood floor consumption in the city. It is expected that the next decade will be the golden period of wood flooring industry's development.

China's forest coverage rate is equivalent to 61.52% of the world average, ranking 130th in the world. The per capita forest area is 0.132 hectares, less than one-fourth of the world average, and per capita forest reserves 9.42 cubic meters, less than one-sixth of the world's average. Therefore, China still is a forest resource-scarce country in respect of per capita forest resources. Along with the deepening of economic development, China's forest reserves would be a major bottleneck in the building materials sector.

At present, China forestry investors have shown a trend of diversification with substantially rising of non-public sector and increasingly large scale of operation. It is estimated that the national forest output value will amount to RMB 1.2 trillion in 2010, and a relatively developed forestry system will take shape characterized by impressive scale, rich variety, optimal layout, high-quality & effectiveness as well as strong competitiveness.

Table of content

2 The forestry develop gradually 
2.1 The sales volume of forestry related industries continue to grow over the previous years.
2.1.1 The timber furniture industry keeps expanding.
2.1.2 Forestry manufacturing develops rapidly.
2.1.3 The output of forestry products is increasing steadily.
2.2 The price of forestry products is rising continuously.

3 Analysis on a leading forest enterprise：JiLin Forest Industry Group Co., Ltd. 

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