CHRI third quarter revenues increase 219% to $9.3 million

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.