China Health Resource Reports on Preliminary Record Fourth Quarter and Year-End 2011 Results; Announces 2012 Earnings Guidance

SICHUAN, China, Feb. 16, 2012 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB: CHRI News), today announced expected earnings for the fourth quarter and year ended December 31, 2011, subject to the completion of an independent audit. The company expects 2011 fourth quarter operating revenues of more than $12.5 million, an $8.5 million or a 218% increase over the same period in 2010. For the year, the company anticipates reporting operating revenues of $34.9 million, a 241% increase over 2010 revenues of $10.2 million.

The company expects 2011 fourth quarter net income to be $2.7 million, or $0.015 per fully diluted common share, compared with $1.6 million or $0.01 per share for the fourth quarter of 2010. For the year, the company anticipates net income to be $6.8 million, or $0.038 per fully diluted common share, compared with a net income of $2.7 million, or $0.02 per share in the previous year.

The growth is attributed to expansion of the TCM product lines particularly its premier TCM herbs such as Gastrodiae ("TianMa") and improvements in sales channel management for markets outside of the Sichuan province combined with consistent cost controls.

"We are extremely pleased with the solid results for the fourth quarter and the year," said Jiayin Wang, President and CEO of CHRI. "These results are a reflection of the hard work and commitment of China Health Resource's employees to execution of our company's goals. Based on the 2011 results as well as our continued implementation of our strategic goals this year, we look forward to a very successful 2012."

2012 Earnings Guidance

China Health Resource has issued earnings guidance for 2012. The company's 2012 earnings are estimated to be in the range of $0.06 and $0.065 per share. The company's earnings forecasts are subject to numerous risks, including those described under 'Forward-Looking Statements' below and under 'Risk Factors' in its annual and quarterly reports.

"Speaking to the company's focus in 2012," Wang added, "we will continue to maintain our leadership in our DAR franchise while we grow our product lines with valuable and high growth products like Gastrodiae. In addition, we will pursue growth opportunities worldwide through acquisition and distribution and grow in areas where we can best serve customers and create value."

China Health Resource will provide more detailed results in its final 2011 fourth quarter and year-end earnings press release and 10-K filing.

About CHRI

China Health Resource, Inc. engages in the development, manufacturing, processing, marketing and sale of raw and pharmaceutical TCM products including Dahurian Angelica Root (DAR) and Rhizoma Gastrodiae and is the only the provider of GAP quality DAR 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.

For more information visit www.chinahealthresource.com.

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.