SUINING, China, November 21, 2011 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB: CHRI), through its wholly owned subsidiary Suining Yinfa DAR Industrial Co, Ltd (Yinfa), announces it has started the GAP standard project for Gastrodiae ("TianMa"). Gastrodiae or TianMa is a natural ingredient used in the treatment of hypertension, and as an ingredient to eliminate headaches and to improve circulation. This represents another step in CHRI's increased participation in the growing TCM pharmaceutical market. TCM is a standard of medical practice in China and growing as an alternative medical and pharmaceutical industry worldwide.
CHRI, known for setting the first standard in pharmaceutical GAP standard for Dahurian Angelica Root (DAR), a key ingredient in pharmaceutical grade TCM products, added Gastrodiae to its product line through an exclusive wholesale agreement early this year. "We expect Gastrodiae to generate an estimated 100 million RMB (approximately US$15 million) of annual revenue for CHRI as part of our product line. Revenue is expected to increase significantly after the GAP standard for Pingwu TianMa is completed due to the increased market price differential of PingWu TianMa, a price range from 250 RMB (US$40) per Kilogram (lower grade) to over 1,000 RMB (US$159) per Kilogram, in today's market. In addition, we expect that the benefits of our newly awarded Dragonhead Enterprise status will improve our already good margins toward TianMa, enabling us to realize significantly reduced taxation in this new product line," said Mr. Weihai Liu, CFO of CHRI.
Jinming Zhang, Deputy Party Secretary of Mianyang City (the 2nd largest city in the Province of Sichuan), and Tao Zhou, Party Secretary of Pingwu County, accompanied by Jiayin Wang, Chairman and CEO of CHRI, inspected the Pingwu Gastrodiae ("TianMa") facilities to witness the progress of the TianMa GAP project.
Pingwu TianMa industrialization project is one of the first nationwide TCM industrialization projects and therefore is one of Sichuan Province's key scientific projects and related to China's 5-Year plan. China considers healthcare for its increasingly aging population a high priority as reflected in its 11th 5-Year Plan.
The active ingredient in the TianMa's from Pingwu ("Pingwu TianMa") is of higher concentration than other varieties of TianMa and as such it provides a higher pharmaceutical value in the market. "We expect that with GAP development of Pingwu TianMa, CHRI will command a leading position in the pharmaceutical grade for Gastrodiae by setting new standards," says Jiayin Wang.
Mr. Weihai Liu, CFO of CHRI puts TCM products growth prospects in the following perspective saying "We see the market for TCM products growing at a pace faster than the average rate of the entire pharmaceutical industry. TCM products are considered to be of more natural organic nature than synthetic drug products and with less side effects according to alternative medical experts."
"And while China has the largest TCM demand at present, TCM as an alternative medicine has been growing in industrialized economies like Britain, France and the USA. The USA alone has over 20,000 TCM practitioners and more than 400 companies specializing in the sale of TCM products and, since 2006, Britain and France are reported to have more than 5,000 clinics of TCM. Xinhua News Agency reported that in 2006, China exported TCM products to 164 countries and regions around the world, with export earnings reaching an all-time high of US$830 million representing a 14.5 percent increase from the previous year. This export growth continues today and the macro trend is most favorable for CHRI as we set GAP standards for high grade pharmaceutical TCM products that can command higher margins with consistent quality under our protected brand," adds Liu.
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
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