SICHUAN, China, Nov. 22, 2011 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB: CHRI), a producer and supplier of Traditional Chinese Medicine (TCM) products, announced robust record breaking quarterly earnings for September 2011. CHRI reported over $9.3 million in revenues and $1.8 million in net income, a 219% increase in revenues and a 141% increase in profits from the third quarter of 2010. This translates to earnings of about $0.03 per share for the first three quarters of 2011. The net earnings performance in the first three quarters has already exceeded the net profit for the entire year of 2010 by 61%.
CHRI has maintained its profitability with a gross profit margin for the first three quarters of 2011 of 30% and net profit margin of 20%, compared to 33% of gross margin and 17% of net profit margin for the first three quarters of 2010.
"CHRI sustained its accelerated growth rate and achieved excellent results in the third quarter this year," noted Jiayin Wang, CHRI's Chairman and CEO. "Orders in the quarter were up more than double comparing to the same period of last year, while net margin increased from 17% to 20%. This order strength is attributed primarily by the newly introduced products including Rhizoma Gastrodiae or "TianMa" (Gastrodiae) in addition to ongoing order of DAR which transforms into strong excellent performance and improved product margins", noted Mr. Jiayin Wang.
"A couple reasons contributed to the strong performance in net earnings for the first nine months of 2011. First, there has been an increase in revenue from a higher volume of sales of raw Dahurian Angelica Root (DAR) and Gastrodiae. Demand for these products has been increasing. Furthermore, our brand and franchise is more recognizable and reputable within the industry. Stronger business relationship has been built up with our current and potential customers. We will continue putting all our effort into our future operation and expect to keep the growth pace in sales and earnings", commented Mr. Wang.
"The industry of TCM in China is growing considerably compared to other segments of the healthcare industry and CHRI provides a much needed standard of quality" said Mr. Wang. "The company has now reached an important milestone as a Dragonhead Enterprise with a valuable franchise to provide the foundation for future growth. We expect Gastrodiae ("TianMa") to be a major contributor to our top and bottom line and we plan to continue to develop other superior products. Our Dragonhead Enterprise status gives us high recognition as a quality company committed to the highest of standards. We believe our GAP standard and committed to quality standard separate us from competitors and our shareholders can depend on our commitment to building a quality company with on-going growth potential", said Mr. Wang.
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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