The Monitor's letter to E&Y on November 28, 2012 states:

The two subsidiaries that were wound up were Sino-Panel (Luzhai) Co., Ltd. and Sino-
Panel (Beihai) Development Co., Ltd. Both of those subsidiaries related to Sino-Forest’s
manufacturing business (which accounts for less than 1% of Sino-Forest’s overall
reported net income for 2011). Both of these entities as well as the manufacturing
business overall reported a loss for 2011.

 

2011 was a tough year for many Chinese companies, reporting a loss for 2011 does not mean that the subsidiaries are worthless. Allen Chan has vision and Sino-Forest has strategically invested.

 

Here are information I found about the two subsidiaries being wound up:

 

Sino-Panel (Luzhai) Co bought 12 hectares industrial land for 12 million yuan in 2008 for 50 years of usage; the market price for the land in June 2011 is  1.6 million per hectare, up 60%;

 

2012-12-14 news report:

http://www.cqn.com.cn/news/xfpd/ccgg/dfcc/2012/653785.html

On June 2012, the Quality Supervision Bureau has inspected products randomly selected from 134 manufactures of wood-base products, and Sino-Panel (Luzhai) Co's products are qualified.

 

Sino-Forest invested totally $82 million in the building of Sino-Panel (Beihai), here is the website with photos of the buildings:

http://www.sinopanel.com/BHP/

 

And here is Stora Enso's commercial for its Project, telling people why Beihai, Guangxi:

https://docs.google.com/viewer?a=v&q=cache:_pFCJNziMlgJ:extra.storaenso.com/content/tigerfinal.pdf+industrial+area+guangxi+beihai+china&hl=en&gl=ca&pid=bl&srcid=ADGEESiY5A0ZkbvcGAefXIk6K1806SvpOXB_RBfA28zs3J2Bc1D0TuALmMDLTaCd-MlmY2hE6DoyoWkLdB_CMFWYDNGKF1z_VVoFlCFq3X_hajlfmtnPaT6g-NajXM-dTTjh9DcaMHlC&sig=AHIEtbR-yzYH5k1jqh-4lOJU5hBFo34p_w