China Health Resource, Inc. Announces Record 2nd Quarter 2011 Results

SICHUAN, China, Sept. 27, 2011 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB: CHRI), a producer and supplier of Traditional Chinese Medicine (TCM) products, announced robust quarterly earnings for June 2011. CHRI reported over $8 million in revenues and $1.7 million in net income, 443% increase from the second quarter of 2010. This translates to earnings of about $0.02 per share for the first half of 2011. The net earnings performance in the first half fiscal year has nearly matched the net profit for all of 2010.

CHRI's gross profit margin for the first half of 2011 is 32% and net profit margin of 21%, a significant increase compared to 18% of gross margin and 10% of net profit margin for the first half year of 2010.

"CHRI achieved excellent results in the second quarter," noted Jiayin Wang, CHRI's Chairman and Chief Executive Officer. "Orders in the quarter were up nearly 80% with an increased gross and net margin from 18% to 32% and 10% to 21%, respectively. This order strength translated into strong top-line performance and improved product margins which, coupled with a relatively well maintained low cost of operating structure, drove earnings significantly above our expectations", noted Mr. Wang.

"Several reasons contributed to the strong performance in net earnings for the first six months of 2011. First, there has been an increase in revenue from a higher volume of sales of raw Dahurian Angelica Root (DAR). In addition, CHRI has several other new products making strong headway including Rhizoma Gastrodiae, or "TianMa", through exclusive agreements with Chinese suppliers. Demand for these products has been steadily increasing and our brand and franchise is becoming recognized throughout the industry. We expect this growth in sales and earnings to continue", commented Mr. Wang.

CHRI as the only provider of Dahurian Angelica Root (DAR) with a nationally certified standard (GAP) in the People's Republic of China and is committed to setting pharmaceutical grade standards for TCM herbs in its industry, a process the company started in collaboration with top TCM research institutions in China.

"Buyers of our products value the high quality standards that CHRI employs. We look forward to expansion through both continued sales of our existing lines and introduction of new products consistent with our recognized quality standards", added Mr. Wang.

Additional information about China Health Resource, Inc. and the annual report can be found by visiting http://ChinaHealthResource.com under "Investor Relations".

About CHRI

China Health Resource, Inc. engages in the development, manufacturing, processing, marketing and sale of Dahurian Angelica Root (DAR) and is only the provider of GAP quality product in the People's Republic of China under the registered Trademark Chuan Baizhi™. DAR, which is also known as "Bai Zhi" in Mandarin Chinese, is an herb that is employed as an ingredient in medicine, cosmetics and food, as well as used in TCM for the treatment of pain, swelling and pustule. The Company's DAR-related products include the Bailing Capsule, Yisheng Capsule, Kimchee-Mate and Fragrant Bag, all of which are sold through regional distributors. The Company was founded in 2001 and is based in Suining, Sichuan Province

Certain statements in this document regarding financial matters, other than historical facts, and statements of our expectations, intentions, plans and beliefs, constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to certain events, risks and uncertainties that may be outside our control. The words "believe", "expect", "anticipate", "optimistic", "intend", "will", and similar expressions identify forward-looking statements. The company intends that such proclamations about future expectations, including future revenues and earnings, future business expansion plans, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. These and other risks and uncertainties related to our business are described in greater detail in our filings with the Commission. The foregoing information should be read in conjunction with these filings. We disclaim any intention or obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.

SOURCE China Health Resource, Inc.

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