Replies to post #3230 on China Wood, Inc (fka CNWD)

[lattitdude67]

answer # 1 i dont know
answer # 2 expansion... In June 2009, we acquired a land use right of 80 mu (13.2 acres) for a cost of RMB 8.6 million to be used for expanding the Company’s manufacturing facilities in Linyi city. To date, we have paid RMB 2.0 million toward the total cost. The balance of RMB 6.6 million will be paid upon completion of the proposed financing.

6.6 mil RMB = $990,844 USD

other interesting tidbits

We are focused on continuing to grow in the Chinese market and increasing our overseas distribution. We are determined to capitalize on acquisition opportunities that will enable us to expand our manufacturing capabilities and strengthen our distribution channels. Our strategy includes:

· expansion of our plywood business through the acquisition of forest tracts in southern China to secure and stabilize our raw material supply;

increase domestic sales while further expand Australian and New Zealand Markets. We are going to set up in-house direct sales and marketing team and establish more distributions and sales offices in China;

· establishment of regional sales groups to work directly with both our domestic and overseas customers to reduce the Company’s dependency on representative sales agencies;

acquisition of new machinery to boost production capacity; and

·reorganize our marketing department to better service our sales team and clients.

We have contracted with a human resources company, Shandong Lichang, to provide us with plywood production manufacturers and other support positions. The agreement provides that Shandong Lichang will provide up to 800 workers to us each year (450 of which must be provided on or before March 1). We will provide each worker with an employment arrangement and technical training. We have agreed to pay Shandong Lichang 100RMB per month for each worker that we employ. A copy of our agreement with Shandong Lichang is attached hereto as Exhibit 10.8.

page 35. (1) Increase of $733,788 of service fee. This was counted as selling and distribution cost in the previous year. ANY CLUE TO WHAT THIS IS?