Mar 18, 2008. /Lesprom.com/. Sino-Forest announced its annual and 4Q 2007 financial results. In 2007, net income, before an impairment charge of $21 million on the write-down of certain manufacturing assets in Gaoyao and Heilongjiang, was $173 million ($1.03 per share), compared to $114 million ($0.82 per share) in 2006. Net income in the 4Q 2007 before impairment charge was $68 million ($0.37 per share), compared with $43 million ($0.30 per share) in the 4Q 2006. Allen Chan, Chairman and CEO of Sino-Forest Corporation, said, "Our growth rates and financial results were stellar in 2007 despite continuing losses in certain manufacturing facilities. Not withstanding these losses, 2007 earnings per share increased 11% to 90 cents compared to 2006." Chan added, "To support our rapid growth, we completed two equity offerings last year, which raised approximately $400 million to fund the expansion of our plantation and manufacturing operations, and we signed two long-term timber acquisition agreements in Yunnan and Guangxi. In tandem, we have been working on ramping up and strengthening infrastructure for our integrated operations in the south-western region of China." Gross profit increased 39% to $243 million in 2007 and 20% to $98 million in the 4Q compared to a year ago. Overall gross profit margin increased 3 percentage-points to 34% last year and decreased 4 percentage-points to 32% in the fourth quarter, mainly due to the lower overall average yield of trees sold and to increased production costs at manufacturing facilities, compared to fourth quarter of 2006. Revenue from the sales of wood logs increased 553% to $3 million in 2007, which was attributable to higher logs sales from Inner Mongolia. During the 3Q 2007, revenue from wood chip sales and commission were reclassified as discontinued operations within the consolidated financial statements in accordance with Section 3475 of the CICA Handbook. Sino-Forest Corporation is a commercial forestry plantation operator in China. The Canadian company started its operations in 1994 and was the first foreign and privately managed operator involved in forest products in China.