China Continental Reclassifies Year-End Results

Apr 12, 2001, 01:00 ET from China Continental, Inc.

    HONG KONG, April 12 /PRNewswire/ --
 China Continental, Inc. (OTC Bulletin Board:   CHCL) ("CCI"), today announces
 reclassification of financial results for the year ended December 31, 2000 to
 reflect discontinued operations.  Gross revenues, associated costs and
 expenses of the Company's turnkey manufacturing business, Danbury Inc., have
 been reclassified as discontinued operations.  Due to the disposal of certain
 subsidiaries, the income statement for 1998 and 1999 have been restated for
 discontinued operations.  Net income remains the same.
 
     About China Continental, Inc.
     China Continental, Inc., has traded on the OTC Bulletin Board market since
 1995.  The Company's focus is on animal and agricultural genetics and water
 resources to meet the demand of the growing population in China.  Activities
 are centralized in the Inner Mongolia Province of China at its farm, Dongwu,
 covering an area of 406 square kilometers.  The Company's planned products and
 services are generally divided into three main categories: (i) sale of
 breeding livestock, semen and embryos, and services to contract breeders and
 growers; (ii) the planting, harvesting and sale of forage grass; and (iii) the
 sale of potable water, starting in 2002.
 
                               (tables to follow)
 
                    CHINA CONTINENTAL, INC. AND SUBSIDIARIES
 
                       CONSOLIDATED STATEMENTS OF INCOME
 
     US$ 000 (except per share amounts)             Year Ended      Year Ended
                                                  Dec. 31, 2000   Dec. 31, 1999
 
     Total sales                                        5,873              0
     Cost of sale                                          46              0
     Gross profit                                       5,828              0
     Depreciation of fixed assets                      (2,405)             0
     Selling and administrative expenses                 (393)             0
     Other income (expenses) net                           51              0
     Income from continuing operations                  3,081              0
     Discontinued operations                            5,505         16,805
     Net gain on disposal of subsidiaries              17,609         11,431
     Net income                                        26,195         28,236
     Net income per share                               $0.26          $0.37
 
     Weighted average shares outstanding              102,230         75,904
     Shares outstanding                               230,000         99,000
 
                        CONSOLIDATED BALANCE SHEET DATA
 
     US$ 000                                      Year ended       Year ended
                                                 Dec. 31, 2000    Dec. 31, 1999
 
     Working capital (deficit)                         11,991        (14,678)
     Total Assets                                     204,384        188,941
     Long-term Liabilities                                  0          1,245
     Shareholders Equity                              203,058        164,737
 
 

SOURCE China Continental, Inc.
    HONG KONG, April 12 /PRNewswire/ --
 China Continental, Inc. (OTC Bulletin Board:   CHCL) ("CCI"), today announces
 reclassification of financial results for the year ended December 31, 2000 to
 reflect discontinued operations.  Gross revenues, associated costs and
 expenses of the Company's turnkey manufacturing business, Danbury Inc., have
 been reclassified as discontinued operations.  Due to the disposal of certain
 subsidiaries, the income statement for 1998 and 1999 have been restated for
 discontinued operations.  Net income remains the same.
 
     About China Continental, Inc.
     China Continental, Inc., has traded on the OTC Bulletin Board market since
 1995.  The Company's focus is on animal and agricultural genetics and water
 resources to meet the demand of the growing population in China.  Activities
 are centralized in the Inner Mongolia Province of China at its farm, Dongwu,
 covering an area of 406 square kilometers.  The Company's planned products and
 services are generally divided into three main categories: (i) sale of
 breeding livestock, semen and embryos, and services to contract breeders and
 growers; (ii) the planting, harvesting and sale of forage grass; and (iii) the
 sale of potable water, starting in 2002.
 
                               (tables to follow)
 
                    CHINA CONTINENTAL, INC. AND SUBSIDIARIES
 
                       CONSOLIDATED STATEMENTS OF INCOME
 
     US$ 000 (except per share amounts)             Year Ended      Year Ended
                                                  Dec. 31, 2000   Dec. 31, 1999
 
     Total sales                                        5,873              0
     Cost of sale                                          46              0
     Gross profit                                       5,828              0
     Depreciation of fixed assets                      (2,405)             0
     Selling and administrative expenses                 (393)             0
     Other income (expenses) net                           51              0
     Income from continuing operations                  3,081              0
     Discontinued operations                            5,505         16,805
     Net gain on disposal of subsidiaries              17,609         11,431
     Net income                                        26,195         28,236
     Net income per share                               $0.26          $0.37
 
     Weighted average shares outstanding              102,230         75,904
     Shares outstanding                               230,000         99,000
 
                        CONSOLIDATED BALANCE SHEET DATA
 
     US$ 000                                      Year ended       Year ended
                                                 Dec. 31, 2000    Dec. 31, 1999
 
     Working capital (deficit)                         11,991        (14,678)
     Total Assets                                     204,384        188,941
     Long-term Liabilities                                  0          1,245
     Shareholders Equity                              203,058        164,737
 
 SOURCE  China Continental, Inc.