China Growth Development Inc Highlights Second Quarter 2009 Financial Results.

China Growth Development posts .03 EPS for Q2

CITY OF INDUSTRY, Calif. & TAIYUAN, China -- China Growth Development Inc. (OTCBB:CGDI), a Chinese commercial property developer, investor, and operator of commercial property in Shanxi Provence, China, reported financial results for the second quarter ended June 30, 2009 on August 14, 2009.

Second Quarter 2009 Highlights

-- Net revenue increased to 4.18 million, a 12% increase from the second quarter of 2008.

-- Net income rose to $1.67million for the quarter ended June 30, 2009, a 70% increase year-over-year.

-- Earnings per share of $.03 for the quarter on a fully diluted basis as compared to $.02 from the second quarter of previous year.

"We are pleased at our progress and ability to deliver solid results this quarter," stated Mr. Sam Liu, COO of China Growth Development Inc. "Our expansion projects have lead the way to increased revenue, and that is a perfect example of our growth strategy succeeding. We are focused on continuing that strategy of growth via expansion, development, and acquisition throughout the third and fourth quarters of 2009."

Second Quarter 2009 Financial Results

Revenue for the second quarter of 2009 was $4.18 million, a 12 percent increase as compared to $3.74 million for the same period in 2008, largely driven by the expansion of shopping malls and the initialization of their operations. Also, the associated deferred revenue collected previously from commercial tenants started to amortize and recognize over the leasing period. Management service income collected from the new commercial tenants also increased revenue. In addition, management also increased the management service income per square meter at several clothing mall booths at Xicheng Shopping Mall.

Selling, general and administrative expenses were $2.29 million, an 11% decrease from $2.58 million as compared for the same period in 2008. The higher expenses for the quarter ended June 30, 2008 were mainly due to one-time charges incurred in the closing of the reverse acquisition.

Income from continuing operations increased by $1.1 million, from $1.0 million for the quarter ended June 30, 2008 to $2.1 million for the quarter ended June 30, 2009, a 111% increase. Such increase was mainly attributable to increases in net revenue and other income as listed in the quarterly filing.

Income tax expense increased by $447,793 from $22,534 for the quarter ended June 30, 2008 to $447,793 for the quarter ended June 30, 2009. The increase was mainly due to change in the effective tax rate to our operations in PRC, increasing from 2.25% for the second quarter of 2008 to 21.20% for the current quarter, due to the lack of favorable tax policy granted by local governments to the Company.

Net income attributable to the common stockholders was $1,034,313 for the quarter ended June 30, 2009, compared to $608,754, for the quarter ended June 30, 2008, an increase of $425,558 or 70%. The higher net income for the current quarter was attributable to the increased net revenue and other income as described above and in the company's quarterly filing.

Liquidity and Capital Resources

The Company currently generates its cash flow through operations which it believes will be sufficient to sustain current level operations for at least the next twelve months. In 2009, we intend to continue to work to expand our presence in the commercial real estate market, including the potential acquisition of another shopping mall.

To the extent we are successful in growing our business, identifying potential acquisition targets and negotiating the terms of such acquisition, and the purchase price includes a cash component, we plan to use our working capital and the proceeds of any financing to finance such acquisition costs.

2009 - 2010 Outlook

Over the course of the next few years, we intend to grow and expand our commercial real estate business. We currently generate positive cash flow and we expect to acquire an additional 2 shopping centers within the next three years.

Safe Harbor Statement

This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other factors referenced in this and previous filings. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]