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In line with the requirement of national economic system reform and government function transformation, approved by the former State Economic Commission, a state-owned forest farm development company was set up in 1988, which was directly under the administration of the former Ministry of Forestrywith parts of the business from the Afforestation Department in the former Ministry of Forestry. Over the years, due to the expansion of business scope and theincrease of subsidiary companies, in 1993, the Company was registered in the State Administration for Industry and Commerce and changed its name toChina National State Forest Farm Development Corporation (hereinafter referred to as "Corporation"). At the outset of its founding, the main task of the corporation was to engaging in the cultivation, development and utilization of state-owned forest resources of state-owned forest farms on a nationwide basis, and collaborated withsome of the provincial (municipal) forestry departments (bureaus) to establish bases of fast-growing and high-yielding forests, commercial timber forests and young and middle-aged forest tending.

In 1999, according to thespirit of the “Notice of the General Office of the Central Committee of the CPC and the State Council General Office on the Disconnection ofCentral Party and Government Agencies from the Management of Economic Entity and Government-run Enterprises”, and in accordance with the implementation suggestions on the classification of its enterprises by the State Forestry Administration, the Corporation disconnected from the State Forestry Administration, and thus was incorporated into the China Forestry Group Corporation, as the secondary legal person unit ofthe group.

With more than 20 years of operation, the corporationnow has developed into a large and medium-sized state-owned forestry enterprise with its major business of forest cultivation baseestablishment, supplemented by domestic and foreign trade.

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