China Health Resources Achieves Dragonhead Enterprise Status

Immediate application for tax exemptions is expected to improve margins

Oct 18, 2011, 06:00 ET from China Health Resource, Inc.

SUINING, China, Oct. 18, 2011 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB:CHRI) through its subsidiaries, is the sole provider of GAP quality Dahurian Angelica Root (DAR) in the People's Republic of China (PRC), under the registered Trademark Chuan Baizhi™ (DAR).Today China Health Resource announces that it is the recipient of the Provincial Key Dragonhead Enterprise and has been added to the 6th group of Provincial Key Dragonhead Enterprises. The Company has submitted for tax exempt status, a specific government-sponsored incentive program available to Dragonhead Enterprises.  

"We are very excited about this achievement and we expect that a favorable tax exemption will provide further improvements to our present strong margins" said Mr. Weihai Liu, CFO of CHRI. The company recently reported net margins of 21% in 2nd Quarter 2011, a considerable improvement from 16% from the same period in 2010. Corresponding net profits of $1,703,951 for the 2nd Quarter of 2011 versus $313,855 for the same period 2010, represent a 443% improvement.

The Dragonhead Enterprise classification in the PRC is a most prestigious recognition awarded by the government to companies considered to be leaders in their industry sectors. It provides certain tax exemptions and other financial support for companies of such exceptional merit and identifies them as local corporate leaders, creating a positive image as they do business within their community.

The title of 6th group Key Provincial Dragonhead Enterprise given to CHRI is effective from August 2011 to August 2013. Dragonhead Enterprises are regularly monitored and companies which fail to maintain certain requirements and standards are subject to revocation of this coveted status. "Naturally, CHRI will take all steps necessary to preserve this hard earned commendation" added Mr. Jiayin Wang, CEO of CHRI.

"This prestigious status and the objective it implies, is consistent with CHRI's vision of promoting quality standards in the DAR and Traditional Chinese Medicine (TCM) industry. "We strive to achieve consistently high quality standards, as the quality of our products is our leading competitive advantage" emphasized Mr. Wang.  

"CHRI welcomes the rigor imposed by the Dragonhead Enterprise requirements of maintaining and increasing high levels of performance in the TCM industry and for DAR. It allows us to set CHRI clearly apart from other competing companies, and give added value to our products in the market place. It also allows us to command a higher price resulting in higher margins compared to other non-GAP DAR and other herbs" said Mr. Jiayin Wang as CEO of CHRI.

About CHRI

China Health Resource, Inc. engages in the development, manufacturing, processing, marketing and sale of Dahurian Angelica Root (DAR) and is the only 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 pustules. 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.