中國農林低碳控股有限公司 China Agroforestry Low-Carbon Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) (Stock Code: 01069)
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 中國農林低碳控股有限公司 China Agroforestry Low-Carbon Holdings Limited (Incorporated in the Cayman Islands with limited liability) (stock code: 01069) UPDATE ON BUSINESS DEVELOPMENT Introduction This is a voluntary announcement made by the board (the “Board”) of directors (the “Directors”) of China Agroforestry Low-Carbon Holdings Limited (the “Company”, together with its subsidiaries, the “Group”) in relation to the update of business development of the Group. Forestry Timber Business Reference is made to the announcement of the Company dated 24 July 2013 in relation to the Strategic Cooperation Framework Agreement entered into between the Company and the People’s Government of Jiange County (劍閣縣人民政府) in Sichuan Province, the People’s Republic of China (the “PRC”). Pursuant to Strategic Cooperation Framework Agreement, among others, the Company will conditionally invest by phases in sustainable forest management on more than 400,000 mu forestry land in Jiange County and receive a harvest quota of not less than 60,000 cubic metres per annum. In addition, the Company will invest in low carbon industry engaging in research and development of biomass fuel produced by intensive timber processing and forestry waste. The Company intends to invest in reconstruction of low-function forests projects in Jiange forest in 2014. Biomass Fuel Business The Board further announces that the first phase of biomass fuel base located in the Jiange County, with the designed capacity of 30,000 to 40,000 tons per year, has formally put into production on 9 January 2014. According to the research conducted by the Company’s operation team, the market of biomass fuel 1 in the neighbourhood of Jiange County (such as Guangyuan and Mianyang) is still in the start-up stage, and the demand is still undergoing expansion. The current selling price of similar products in the PRC is approximately RMB900 to 1,000 per ton. The Company will strive to continue to expand the production capacity further in 2014. Research and Development in Areas of Biomass Materials and Biofuels Reference is made to the announcement of the Company dated 23 September 2013. The Company and the Central South University of Forestry and Technology (中南林業科技大學) (the “University”) entered into the Strategic Cooperation Agreement on 18 September 2013, pursuant to which, among others, the Company and the University agreed to form a strategic alliance for the joint research and development in the areas of biomass materials and biofuels. With this strategic move, the Company is considering expanding its business in the low carbon agriculture and forestry projects in Hunan Province and Guangdong Province in the PRC. The Company will further update the shareholders and potential investors as and when appropriate. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company. By order of the Board China Agroforestry Low-Carbon Holdings Limited Lei Zuliang Chairman and Executive Director Shenzhen, the PRC, 17 January 2014 As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Lei Zuliang, Mr. Long Weihua and Mr. Cai Shuiyong; one non-executive Director, namely Professor Liu Zhikun; and three independent non-executive Directors, namely, Ms. Tian Guangmei, Mr. Zhou Wei and Mr. Liang Guoxin. 2.