Good News??? Probably so.
Monday March 17 9:22 AM EDT
China Resources Announces Corporate Restructuring -
Company Expects To Report Year-end Results April 1 -
HONG KONG--(BUSINESS WIRE)--March 17, 1997-- China Resources Development Inc , a
leading natural rubber and agricultural products distributor based in the People's Republic of China
(PRC), today announced the completion of a corporate restructuring at its 56%-owned subsidiary,
Hainan Agricultural Resources Company Limited (HARC), designed to streamline its existing
management structure, reduce overhead through the elimination of duplicative functions, improve
overall operating efficiency and ultimately enhance profitability.
The Company expects that this restructuring plan will:
-- Reduce selling and administrative expenses as redundant
positions are cut; -- Improve corporate liquidity as non-core assets are sold,
allowing management to focus its efforts on boosting
profitability of its core businesses and exploring complementary
alliances and acquisitions; -- Simplify HARC's management structure through its
consolidation into a few trading divisions.
The Company expects that initial benefits from the restructuring will be reflected in its 1996 fourth
quarter results, which are scheduled to be reported on April 1, 1997. Because of the complex
auditing process that the Company's auditors (Ernst and Young - Hong Kong) undertake, which
includes the conversion of the entire year's financial results from Chinese accounting standards to
U.S. GAAP (Generally Accepted Accounting Principles), in addition to the filing of a comprehensive
10-K with the Securities and
Exchange Commission (SEC), China Resources expects that the entire legally-allotted time for
reporting its results will be required.
China Resources Development management also announced that it will conduct a conference call to
discuss its fourth quarter and year-end results with shareholders, analysts and investment managers
following the release of its results on April 1.
Except for the historical information in this press release, it includes forward-looking statements that
involve risks and uncertainties, including, but not limited to the impact of weather, competitive
pressures from within the natural rubber industry, quarterly fluctuations in results, the management of
growth, market dynamics and other risks detailed from time to time in the Company's Securities and
Exchange Commission filings. Actual results may differ materially from management expectations.
China Resources Development, Inc., with offices in Hong Kong and the Hainan Province in the
PRC, through a subsidiary, owns a 56% interest in Hainan Agricultural Resources Co. Ltd.
(HARC). HARC markets and distributes dry, natural rubber, liquid latex and other agricultural
products, and procures production materials and supplies for major customers. The Hainan Province
supplies over 60% of the PRC's natural rubber production.
CONTACT: China Resources Development, Inc.
Edward Wong
Financial Controller
011/852/28107205 or fc@chrb.com
or
Joseph N. Jaffoni, Robert L. Rinderman
Jaffoni & Collins Incorporated
212/505-3015 or jci ir@aol.com |
