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. (Nasdaq: CHRB CHRB California Horse Racing Board CHRB Community Housing Resource Board (Montana) CHRB Commonwealth Health Research Board ), a leading natural rubber and agricultural products distributor based in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. 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. -0- 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 to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report on April 1, 1997. Because of the complex auditing process that the Company's auditors (Ernst and Young - Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. ) undertake, which includes the conversion of the entire year's financial results from Chinese accounting standards Chinese accounting standards are the accounting rules used in Chinese state owned corporations in mainland China. They are currently being phased out in favour of Generally Accepted Accounting Principles or International Accounting Standards. to U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ), in addition to the filing of a comprehensive 10-K with the Securities and Exchange Commission (SEC), China Resources China Resources (Chinese: 華潤; HKSE: 0291 ) is a group of companies in wide variety of business in Hong Kong and mainland China. Some of its companies use the name the acronym CRC. 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 Edward Wong (born 14 November, 1972 in Washington, D.C.) is an American journalist and a foreign correspondent for The New York Times. He started out as an intern in 1998 and eventually worked at the Metro, Sports, and Business desks. 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 |
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