Forestry

In January 2011, SCHC acquired the forestry business of South China Holdings for HK$23.8m, at par to NAV. The forestry plantation occupies woodland area in Chongqing and Wuhan, China. Up to now, SCHC has already expanded its woodland area to about 241,000 mu.

Leveraging on its multi-year experience of plantation in various provinces in China, SCHC's timely expansion into the forestry business should benefit from the favorable external environment, as the booming Chinese economy, ongoing urbanization and large-scale construction of affordable housing in China should continue to drive demand for logs, and as China continues to implement supportive policies (such as subsidies and preferential tax treatment) towards agriculture and forestry projects.

While the business is still at its initial development stage, the long-term upside potential of this new business could be enormous.

Back To Top
Disclaimer | Online Privacy COPYRIGHT 2018 SOUTH CHINA HOLDINGS COMPANY LIMITED ALL RIGHTS RESERVED