Seems the breakout will not gonna happen. I thought some big guys were pushing it up. Anyway, I won't sell at 1.00 level.
HONG KONG--(BUSINESS WIRE)
The board of directors ("Directors") of China Resources Development, Inc. (NASDAQ:CHRB) announced today that Hainan Agricultural Resources Company Ltd. ("HARC"), the Company's 56%-owned subsidiary, has signed a letter of intent with the Hainan Farming Bureau on April 16, 1996, to form and operate a wood processing joint venture on the island of Hainan in the People's Republic of china ("PRC"). The Hainan Farming Bureau is the Chinese shareholder which, along with one of its subsidiary farms, owns the remaining 44% equity interest in HARC. According to the letter of intent, the new joint venture will be 70% owned by HARC and 30% owned by the Hainan Farming Bureau, and the new joint venture company will have a registered capital of Rmb80 million ( (a) US$9,615,000), with HARC contributing Rmb56 million ( (a) US$6,731,000). The new joint venture company will acquire all business and operating assets, and assume certain liabilities, of the existing Sanya Timber Factory (the "Factory").
Sanya Timber Factory is one of the largest enterprises owned by the Hainan Farming Bureau, with a production capacity of 30,000 cubic meters of particle board using recycled rubber trees. If successfully established, the new joint venture comprised of HARC and the Hainan Farming Bureau, which will assume all the business of the Factory, intends to develop a new project -- to produce medium density fiber board. Under the terms of the letter of intent, the investment in the new joint venture company by HARC is conditioned upon a satisfactory due diligence review, conducted by an internationally reputable accounting firm, of the financial results of the Factory for the year ended December 31, 1995, and a minimum post-tax net profit of not less than Rmb15 million ( (a)US$1,803,000) prepared under the generally accepted accounting principles of the United States. Additionally, certain regulatory approvals would be required prior to consummating this transaction.
China Resources Development, Inc., through its majority-owned operating subsidiaries in the PRC, markets and distributes dry, natural rubber and liquid latex throughout China and procures production materials and supplies for the Hainan State Farms as well as other non-affiliated customers in Hainan Province.
CHRB's sales increased by more than 61% from 1992 to 1995, from Rmb1,079 million ( (a) US$130 million) to Rmb1,850 million ( (a) US$222 million). Net income before minority interests increased 48% from Rmb26 million ( (a) US$3,125,000) to Rmb37 million ( (a) US$4,447,000). In 1995, the Company distributed approximately 138,000 tons of natural rubber with a sales value of Rmb1,778 million ( (a) US$214 million). It also did approximately Rmb179 million ( (a) US$22 million) in procurement business.
(a) For the convenience of the reader, translation of Renminbi ("Rmb") to U.S. Dollars has been made at an exchange rate of US$1.00 per Rmb8.32. No representation is made that the Renminbi amounts referred to herein could have been or could be converted into U.S. Dollars at the rate stated.
CONTACT: Corporate Relations Group
Jim Spratt, 800/444-4980
or
China Resources Development Inc., Hong Kong
I.P. Zhang, 011 852 2537-6689
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