SUINING, China, October 11, 2011 /PRNewswire-Asia/ -- China Health Resource Inc. (OTCBB code: CHRI) through its wholly owned subsidiary, Suining City Yinfa DAR Industrial Ltd ("Yinfa"), announces that it has reached an agreement in principle with the majority of the DAR farmers in Suining City, Sichuan, PRC for the transferring of rural land and farming facilities to CHRI. The signing is scheduled now to be made official at the forthcoming 2011 DAR Association General Meeting to be held on October 26, 2011. The ceremony will be further sanctioned by the attendance of city government officials who also have assisted in the negotiation process of the multi-party agreement. Deputy General Mayor Yun Liu will be in attendance at the ceremony.
"Central and local government in China have encouraged land transfer rights of the fragmented small farmers to larger companies so that farmers can enjoy a more stable source of income, we are very encouraged by this future agreement," said Mr. Jiayin Wang, Chairman of the DAR Association of Suining City and CEO of CHRI.
"CHRI as the sole owner of pharmaceutical graded DAR GAP standard, with its strong technical force, rich management experience and extensive TCM distribution network, will make every possible effort to complete all agreement details for signing at the 2011 DAR Association General Session. The multi-party agreement will include leasing of rural land to the company and hiring local farmers for planting. We are very appreciative of the local government for facilitating this agreement between DAR farmers and CHRI," added Mr. Wang.
Weihai Liu, CFO of CHRI said: "Through this unique 'enterprise + farmers' business development model, farmers can enjoy a more stable source of income as well as access to sophisticated modern farming technology provided by CHRI and the company benefits by being able to ensure GAP quality standards are better controlled through its supply chain. The agreement will also allow the company to meet certain exemptions in national corporate tax provision of self grown agriculture and contributing to the overall net margin improvement for the company."
About CHRI
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.
