UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

\|X\|	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934: For the Quarterly Period ended: ~~September~~March 3031, ~~2011~~2012
\|_\|	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE EXCHANGE ACT
	For the transition period from to

Commission File Number: 000-50029

CHINA HEALTH RESOURCE, INC.

(Name of Small Business Issuer in its Charter)

Delaware	73-1629948
(State or Other Jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

343 Sui Zhou Zhong Road

Suining, Sichuan Province, P.R. China

(Address of Principal Executive Offices)

+(86-825) 239-1788

(Issuer’s Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes |X| No |_|

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes |X| No |_|

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer \|_\|	Accelerated filer \|_\|
Non-accelerated filer \|_\|	Smaller Reporting Company \|X\|

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes |_| No |X|

Number of shares outstanding of each of the issuer’s classes of common equity, as ofMarch ~~September~~ 30, ~~2011~~2012: 175,~~935~~435,953 shares of Common Stock of par value US $0.001

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

The discussion contained in this 10-Q under the Securities Exchange Act of 1934, as amended, contains forward-looking statements that involve risks and uncertainties. The issuer’s actual results could differ significantly from those discussed herein. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as “anticipate,” “expect,” “intend,” “plan,” “will,” “we believe,” “the Company believes,” “management believes” and similar language, including those set forth in the discussions under “Notes to Financial Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as those discussed elsewhere in this Form 10-Q. We base our forward-looking statements on information currently available to us, and we assume no obligation to update them. Statements contained in this Form 10-Q that are not historical facts are forward-looking statements that are subject to the “safe harbor” created by the Private Securities Litigation Reform Act of 1995.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
		Page
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	18
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	2524
ITEM 4.	CONTROLS AND PROCEDURES	25
ITEM 4T.	CONTROLS AND PROCEDURES	24
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	2625
ITEM 1A.	RISK FACTORS AFFECTING FUTURE RESULTS	2625
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	2625
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	2625
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	2625
ITEM 5.	OTHER INFORMATION	2625
ITEM 6.	EXHIBITS	2625
SIGNATURES		26
INDEX TO EXHIBITS		27

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

		Page
ITEM 1.	FINANCIAL STATEMENTS	3
	Index to Financial Statements	3
	Unaudited Consolidated Balance Sheets as of September 30, 2011 and December 31, 2010	4
	Unaudited Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011	4
	Unaudited Consolidated Statements of Operations for the Three and Nine Months ended June 30, 2011 and 2010	5
	Unaudited Consolidated Statements of Operations for the Three Months ended March 31, 2012 and 2011	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2011 and 2010	6
	Unaudited Consolidated Statements of Cash Flows for the Three Months ended March 31, 2012 and 2011	6
	Notes to Unaudited Consolidated Financial Statements for the Nine Months ended September 30, 2011 and 2010	7
	Notes to Unaudited Consolidated Financial Statements for the Three Months ended March 31, 2012 and 2011	7

These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the period ended ~~Nine~~ Three Months ended ~~September~~March 3031, ~~2011~~2012 are not necessarily indicative of the results that can be expected for the full year.

China Health Resource, Inc. and ~~Subsidiary~~Subsidiaries

~~Unaudited Condensed~~ Consolidated Balance Sheets

As of ~~September~~March 3031, ~~2011~~2012 and December 31, ~~2010~~ 2011

	September 30, 2011			December 31, 2010
ASSETS	March 31, 2012			December 31, 2011
				(Audited)
CURRENT ASSETS				(Audited)
ASSETS
Cash and Cash Equivalents	$	674,811		$	241,755
CURRENT ASSETS
Accounts Receivable		5,208,028			5,386,455
Cash and Cash Equivalents	$	147,632		$	90,306
Advances to suppliers		134,241			32,231
Accounts Receivable		3,847,158			1,701,812
Bad Debt Provision
Advances to Suppliers		689			491
Prepayment for land usage		3,523,823			3,520,131
Prepaid Expenses		2,254,324			2,453,892
Deferred Inventory Cost		3,961,277			3,079,930
Inventory		41,~~652~~437,~~887~~071			~~653~~1,~~695~~276,462
TOTAL CURRENT ASSETS		1014,~~902~~939,~~690~~252			413,~~900~~536,~~196~~964
FIXED ASSETS
Property, Plant, and Equipment		1,~~038~~042,~~583~~380			~~991~~1,~~883~~043,867
Accumulated Depreciation		(~~208~~227,~~325~~197	)		(~~163~~212,~~928~~526	)
TOTAL NET FIXED ASSETS		~~830~~815,~~258~~182			~~827~~831,~~955~~341
TOTAL ASSETS	$	1115,~~732~~754,~~948~~434		$	514,~~728~~368,~~151~~305
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts Payable and Accrued Liabilities	$	~~682~~832,~~179~~433		$	~~436~~875,~~015~~080
Other Payables		~~192~~162,~~875~~817			~~110~~201,~~516~~271
Due to Shareholder		376,457			376,457
Taxes Payable		~~636~~623,~~195~~312			—21,200
Notes Payable		~~944~~730,~~153~~820			~~905~~1,~~974~~206,177
Convertible debt		—			~~80,000~~
TOTAL CURRENT LIABILITIES		2,~~831~~725,~~859~~838			12,~~908~~680,~~962~~185
TOTAL LIABILITIES		2,~~831~~725,~~859~~838			12,~~908~~680,~~962~~185
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock Class A ( 500,000,000 shares authorized, 175,935,953 and 159,935,953 issued and outstanding, par value $0.001)		175,936			159,936
Common stock Class A ( 500,000,000 shares authorized,177,435,953 and 159,935,953 issued and outstanding, par value $0.001)		177,436			177,436
Preferred Stock (50,000,000 shares authorized, 0 issued and outstanding)		—			—
Preferred Stock (50,000,000 shares authorized,0 issued and outstanding)		-			-
Additional paid in capital		1,~~662~~736,~~018~~497			1,~~274~~728,~~144~~539
Accumulated other comprehensive income		~~539~~677,~~292~~301			~~235~~661,~~737~~313
Retained earnings (deficit)		610,~~523~~437,~~843~~362			29,~~149~~120,~~372~~832
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)		813,~~901~~028,~~089~~596			311,~~819~~688,~~189~~120
TOTAL LIABILITIES AND EQUITY	$	1115,~~732~~754,~~948~~434		$	514,~~728~~368,~~151~~305

The accompanying notes are an integral part of these financial statements.

China Health Resource, Inc. and ~~Subsidiary~~Subsidiaries

Unaudited ~~Condensed~~ Consolidated Statement of Operations

For the Three ~~and Nine~~ Months ~~Ended September~~ended 30March 31, ~~2011~~2012 ~~and 2010~~

For the 3 months ended

For the 9 months ended

For the three months ended

September 30, 2011

September 30, 2010

September 30, 2011

September 30, 2010

March 31, 2012

March 31, 2011

REVENUES

Sales

98,~~334~~955,~~201~~361

24,~~925~~378,~~676~~311

~~21,747,210~~

~~6,425,332~~

Cost of Sales

6,~~747~~972,~~669~~090

12,~~435~~882,~~436~~178

~~15,203,872~~

~~4,288,820~~

GROSS PROFIT

21,~~586~~983,~~532~~271

1,~~490~~496,~~240~~133

~~6,543,338~~

~~2,136,512~~

OPERATING EXPENSES

Selling, General, and Administrative

~~156~~199,~~479~~805

~~382~~280,~~200~~672

~~610,410~~

~~531,098~~

Interest Expense

922,~~969~~248

159,~~772~~328

~~28,834~~

~~24,645~~

TOTAL OPERATING EXPENSES

~~166~~222,~~448~~053

~~397~~290,~~973~~000

~~639,244~~

~~555,743~~

OPERATING INCOME (LOSS)

21,~~420~~761,~~084~~218

1,~~092~~206,~~267~~133

~~5,904,094~~

~~1,580,769~~

OTHER INCOME / (EXPENSES)

Other

(~~474~~1

)

~~(484~~

)

~~2,022~~

TOTAL OTHER INCOME / (EXPENSE)

(~~474~~1

)

~~(484~~

)

~~2,022~~

NET INCOME (LOSS) BEFORE TAXES

21,~~419~~761,~~610~~217

1,~~092~~206,~~272~~133

~~5,903,610~~

~~1,582,791~~

INCOME TAX EXPENSE

~~608~~444,~~697~~687

~~340~~346,~~002~~526

~~1,529,139~~

~~463,585~~

NET INCOME (LOSS)

1,~~810~~316,~~913~~530

~~752~~859,~~270~~607

~~4,374,471~~

~~1,119,207~~

OTHER COMPREHENSIVE INCOME (LOSS)

Foreign Currency Translation (Loss) Gain

~~163~~15,~~461~~988

4051,~~270~~854

~~303,555~~

~~54,810~~

COMPREHENSIVE INCOME (LOSS)

1,~~974~~332,~~374~~518

~~792~~911,~~540~~461

~~4,678,026~~

~~1,174,017~~

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

Basic

~~174~~171,~~935~~327,~~953~~620

~~150~~164,~~132~~602,~~031~~620

~~169,447,064~~

~~144,903,273~~

Fully diluted

~~174~~171,~~935~~327,~~953~~620

~~150~~164,~~132~~602,~~031~~620

~~169,447,064~~

~~144,903,273~~

NET INCOME (LOSS) PER COMMON SHARE

Basic

0.01

**0.04

~~0.03~~

Fully diluted

0.01

**0.04

~~0.03~~

The accompanying notes are an integral part of these financial statements.

** Less than $.015

~~The accompanying notes are an integral part of~~China ~~these~~Health ~~financial~~Resource, ~~statements~~Inc. and Subsidiaries

5Unaudited Consolidated Statement of Cash Flows

~~China~~For the ~~Health~~Three ~~Resource,~~Months ~~Inc.~~ended ~~and~~March ~~Subsidiary~~31, 2012

Unaudited Condensed Consolidated Statement of Cash Flows

	For the three months ended
	March 31, 2012			March 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	1,316,530		$	859,607
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation		14,416			9,486
Stock-based compensation		7,958			7,958
Accounts receivable		183,666			270,537
Employee Advances and Other Receivable		(101,750	)		(250,357	)
Prepayment for land usage and inventory		(876,169	)
Inventory		(158,917	)		(1,132,473	)
Accounts payable and accrued liabilities		(22,046	)		175,500
Other payable		(38,580	)		20,348
Others		2,576			2,468
Tax payable		579,718			329,138
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		907,402			292,212

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment		-			-
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			-

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term-note payable		-			-
Payments to short-term-note payable		(475,564	)		-
NET CASH PROVIDED BY FINANCING ACTIVITIES		(475,564	)

FOREIGN CURRENCY TRANSLATION		1,218			2,132

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		433,056			294,344

CASH AND CASH EQUIVALENTS:
Beginning of period		241,755			90,306
End of period	$	674,811		$	384,650


The accompanying notes are an integral part of these financial statements.

~~For the Nine Months Ended September 30, 2011 and 2010~~6

	For the 9 months ended
	September 30, 2011			September 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	4,374,471		$	1,119,207
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation		36,645			23,590
Stock-based compensation		23,874			138,000
Accounts receivable		(2,026,942	)		(512,384	)
Employee Advances and Other Receivable		(173	)		15,437
Prepaid Expenses		296,155			—
Inventory		(3,882,223	)		(1,166,089	)
Accounts payable and accrued liabilities		533,276			130,534
Other payable		75,953			(5,529	)
Others		7,268			—
Tax payable		626,112			509,155
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		64,416			251,921
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment		(12,058	)		—
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(12,058	)		—
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on short-term-note payable		—			(235,008	)
Proceed from short-term-note payable		—			—
NET CASH PROVIDED BY FINANCING ACTIVITIES		—			(235,008	)
FOREIGN CURRENCY TRANSLATION		4,968			4,663
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		57,326			21,576
CASH AND CASH EQUIVALENTS:
Beginning of period		90,306			18,211
End of period	$	147,632		$	39,787
SUPPLEMENTAL CASH FLOW INFORMATION:
Non-cash financing activity:
Common stock issued for settlement of CEO performance bonus payable	$	300,000		$	—
Common stock issued for settlement of convertible debt	$	80,000		$	—
Inventory received in exchange for Note Receivable	$	—		$	350,384

1. ORGANIZATION AND BUSINESS BACKGROUND

~~The~~China Health ~~accompanying~~Resource ~~notes~~Inc., ~~are~~f/k/a Voice Diary Inc. (the “Company” or “CHRI”) was incorporated in the State of Delaware on February 26, 2002. In June and July 2002, the Company acquired approximately 99% of the outstanding shares of Voice Diary Ltd., an ~~integral~~Israeli ~~part~~corporation (“VDL”), through the exchange of ~~these~~shares ~~financial~~of ~~statements~~the Company with former shareholders of the Subsidiary. VDL was disposed of on August 22, 2006 pursuant to the agreement between the Company, VDL and Arie Hinkis, the former president of the Company. On May 21, 2007, the Company changed its name to “China Health Resource Inc.”.

On June 13, 2006, CHRI (“acquiree”) executed a Plan of Exchange with Sui Ning Shi Yin Fa Bai Zhi Chan Ye You Xian Gong Si, a corporation organized and existing under the laws of the Peoples’ Republic of China (“Yin Fa” or ‘acquirer”), the shareholders of Yin Fa (the “Yin Fa Shareholders”) and the Majority Shareholder of the CHRI, pursuant to which six simultaneous transactions were consummated at closing, as follows: (1) settlement of the liabilities of CHRI, (2) a deposit of 7,977,023 (pre-split) new shares of Class A Common Stock and 2,000 new shares of Class B Common Stock via hand delivery by Mr. Hinkis in exchange for a payment of $264,000 in cash , (3) a deposit of 1,305,000 (pre-split) shares of Class A Common Stock via hand delivery by Mr. Hinkis in exchange for a payment of $136,000 in cash, (4) the issuance of 30,000,000 (post-split) investment shares of Class A Common Stock of the Registrant to the Yin Fa shareholders pursuant to Regulation S under the Securities Act of 1933, as amended, in exchange for all of the shares of registered capital of Yin Fa, (5) vending out the CHRI subsidiary after closing, and (6) retirement of 744 shares of Class B Common Stock owned Mr. Hinkis at closing against payment of $74,000 and settlement of all unpaid salaries and severance pay to Mr. Hinkis in the amount of $100,000, of which both amounts was taken from the payment made to CHRI for the issued shares.

~~China~~The Plan ~~Health~~of ~~Resource~~Exchange was consummated on August 22, ~~Inc~~2006; as a result, Yin Fa became a wholly-owned subsidiary of CHRI. The transaction was treated for accounting purposes as a capital transaction and ~~Subsidiary~~recapitalization by the accounting acquirer and as a re-organization by the accounting acquiree.

~~Notes~~Accordingly, the toconsolidated ~~Unaudited~~financial ~~Condensed~~statements ~~Consolidated Financial~~include ~~Statements~~the following:

For the Nine Months Ended September 30, 2011 and 2010

	(1)	The balance sheet consists of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost.
	(2)	The statement of operations includes the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the merger.

Yin Fa was founded on April 24, 2001 in China. The main business plan includes the manufacturing, processing, and sales of Dahurian Angelica Root (~~Expressed~~DAR) and its related products. DAR is one of the major herbs used in ~~USD~~Chinese traditional medicines. In 2004 and 2005, the company and Sichuan Yingfa Resource Development Co., Ltd., (Sichuan) began the process of applying for Good Agricultural Practice of Medical Plants and Animals (GAP) for DAR. The project passed the inspection of the State Food and Drug Administration (SFDA), and the SFDA made the final, official announcement on February 26, 2006.

1A GAP certificate means that the planning, quality, and manufacturing of DAR meet a high and certifiable standard. ~~BASIS~~ The GAP OFcertificate ~~PRESENTATION~~is in the name of Sichuan and the company manages the processing and sales of DAR.

~~The accompanying unaudited condensed consolidated~~In ~~financial~~2011, ~~statements~~Suining ~~have~~Yinfa ~~been~~DAR ~~prepared~~Industrial inCo, ~~accordance~~Ltd. ~~with~~had ~~both~~invested ~~generally~~95,223 ~~accepted~~USD ~~accounting principles for interim financial information~~(600,000 ~~and~~RMB) ~~the instructions~~ to ~~Form~~establish ~~10-Q~~an ~~and~~agricultural ~~Article~~planting ~~8 of Regulation S-X. Accordingly, they do not include all of the information~~business ~~and~~entity ~~footnotes~~called ~~required~~Suining byYinfa ~~generally~~DAR ~~accepted~~Planting ~~accounting~~Co, ~~principles for complete financial statements~~Ltd. ~~The~~This ~~accompanying~~Yinfa ~~unaudited condensed~~DAR ~~consolidated~~Planting ~~financial~~Company ~~statements~~is ~~reflect~~in ~~all~~process ~~adjustments (consisting~~ of ~~normal~~obtaining ~~recurring~~business ~~accruals)~~approval and ~~that~~certificate ~~are,~~from indifferent ~~the opinion~~government ~~of management~~departments, ~~considered~~and ~~necessary~~no ~~for~~business aactivity ~~fair~~has ~~presentation of the results for the interim periods presented~~occurred. ~~Interim results are not necessarily indicative of results for a full year.~~

~~The unaudited condensed consolidated financial~~CHRI ~~statements~~ and ~~related~~its ~~disclosures~~wholly ~~have~~owned ~~been~~subsidiaries, ~~prepared~~Suining ~~with~~Yinfa ~~the~~DAR ~~presumption~~Industrial ~~that~~Co, ~~users of the interim financial information have read or have access to the Company’s annual audited consolidated financial statements for the preceding fiscal year~~Ltd. ~~Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements~~ and ~~the~~Suining ~~related~~Yinfa ~~notes~~DAR ~~for~~Planting ~~the~~Co, ~~years ended December 31~~Ltd, ~~2010~~are ~~and~~hereafter referred ~~2009~~to ~~thereto~~as ~~contained in~~ (the ~~Annual Report on Form 10-K for the year ended December 31, 2010~~“Company”).

~~2. ORGANIZATION AND BUSINESS BACKGROUND~~7

~~China Health Resource Inc~~2.~~, f/k/a Voice Diary~~ SUMMARY ~~Inc.~~OF ~~(the~~SIGNIFICANT ~~“Company”~~ACCOUNTING or “CHRI”) was incorporated in the State of Delaware on February 26, 2002. In June and July 2002, the Company acquired approximately 99% of the outstanding shares of Voice Diary Ltd., an Israeli corporation (“VDL”), through the exchange of shares of the Company with former shareholders of the Subsidiary. VDL was disposed of on August 22, 2006 pursuant to the agreement between the Company, VDL and Arie Hinkis, the former president of the Company. On May 21, 2007, the Company changed its name to “China Health Resource Inc.”.POLICIES

~~On June 13, 2006, CHRI (“acquiree”)~~Basis ~~executed a Plan~~ of Exchange with Sui Ning Shi Yin Fa Bai Zhi Chan Ye You Xian Gong Si, a corporation organized and existing under the laws of the Peoples’ Republic of China (“Yin Fa” or ‘acquirer”), the shareholders of Yin Fa (the “Yin Fa Shareholders”) and the Majority Shareholder of the CHRI, pursuant to which six simultaneous transactions were consummated at closing, as follows: (1) settlement of the liabilities of CHRI, (2) a deposit of 7,977,023 (pre-split) new shares of Class A Common Stock and 2,000 new shares of Class B Common Stock via hand delivery by Mr. Hinkis in exchange for a payment of $264,000 in cash , (3) a deposit of 1,305,000 (pre-split) shares of Class A Common Stock via hand delivery by Mr. Hinkis in exchange for a payment of $136,000 in cash, (4) the issuance of 30,000,000 (post-split) investment shares of Class A Common Stock of the Registrant to the Yin Fa shareholders pursuant to Regulation S under the Securities Act of 1933, as amended, in exchange for all of the shares of registered capital of Yin Fa, (5) vending out the CHRI subsidiary after closing, and (6) retirement of 744 shares of Class B Common Stock owned Mr. Hinkis at closing against payment of $74,000 and settlement of all unpaid salaries and severance pay to Mr. Hinkis in the amount of $100,000, of which both amounts was taken from the payment made to CHRI for the issued shares.Presentation

~~The Plan of Exchange was consummated on August~~These ~~22,~~accompanying ~~2006;~~consolidated asfinancial astatements ~~result,~~have ~~Yin~~been Faprepared ~~became~~in aaccordance ~~wholly-owned~~with ~~subsidiary~~generally ofaccepted ~~CHRI. The transaction was treated for~~ accounting ~~purposes as~~principles ain ~~capital transaction and recapitalization by~~ the ~~accounting~~United ~~acquirer~~States ~~and~~of ~~as a re-organization by the accounting acquiree~~America.

~~Accordingly, the consolidated financial statements~~Basis ~~include~~of ~~the~~Consolidation ~~following:~~

	(1)	The balance sheet consists of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost.
	(2)	The statement of operations includes the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the merger.

The consolidated financial statements include the financial statements of the Company and its subsidiaries.

7All significant inter-company balances and transactions within the Company and subsidiary have been eliminated upon consolidation.

~~China Health Resource, Inc.~~ Cash and ~~Subsidiary~~Cash Equivalents

~~Notes~~For purposes toof ~~Unaudited~~the ~~Condensed~~ Consolidated Statement of Cash Flows, the Company considers liquid investments with an original maturity of three ~~Financial~~months ~~Statements~~or less to be cash equivalents.

~~For the Nine Months Ended September 30, 2011~~Management’s ~~and~~Use ~~2010~~of Estimates

~~(Expressed~~The preparation of consolidated financial statements in ~~USD)~~conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

~~Yin Fa was founded on April 24, 2001 in China. The~~Revenue main business plan includes the manufacturing, processing, and sales of Dahurian Angelica Root (DAR) and its related products. DAR is one of the major herbs used in Chinese traditional medicines. In 2004 and 2005, the company and Sichuan Yingfa Resource Development Co., Ltd., (Sichuan) began the process of applying for Good Agricultural Practice of Medical Plants and Animals (GAP) for DAR. The project passed the inspection of the State Food and Drug Administration (SFDA), and the SFDA made the final, official announcement on February 26, 2006. Recognition

ARevenue is ~~GAP~~recognized ~~certificate~~at ~~means~~the ~~that~~time the ~~planning, quality,~~product is delivered and ~~manufacturing~~title ofhas ~~DAR~~passed ~~meet~~to athe ~~high~~customer. ~~and~~Cash ~~certifiable~~discounts ~~standard. The~~are ~~GAP~~recognized ~~certificate~~as isan expense in the ~~name~~period in which it actually occurs. Sales allowances are recorded as a reduction of ~~Sichuan and~~revenue in the ~~company~~period ~~manages~~in which ~~the~~they ~~processing~~occur. ~~and~~Revenue ~~sales~~is presented net of ~~DAR~~returns.

~~CHRI and its wholly owned subsidiary Yin Fa~~Comprehensive ~~are~~Income ~~hereafter referred to as~~ (~~the “Company”~~Loss).

3The Company adopted Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) No. ~~SUMMARY~~ OF130 ~~SIGNIFICANT~~(FASB ~~ACCOUNTING~~ASC ~~POLICIES~~220), “Reporting Comprehensive Income,” which establishes standards for the reporting and display of comprehensive income and its components in the consolidated financial statements.

~~Basis of Presentation~~Foreign Currencies

Assets and liabilities denominated in respective functional currencies are translated into United States Dollars at the exchange rate as of the balance sheet date. The ~~financial~~share ~~statements~~capital ~~included~~and ~~herein~~retained ~~were~~earnings are translated at exchange rates prevailing at ~~prepared~~the ~~under~~time of the ~~accrual~~transactions. ~~basis~~Revenues, costs, and expenses denominated in respective functional currencies are translated into United States Dollars at the weighted average exchange rate for the period. The effects of ~~accounting~~foreign currencies translation adjustments are included as a separate component of accumulated other comprehensive income.

~~Cash~~Company’s Future ~~and~~Operations ~~Cash~~Are ~~Equivalents~~Dependent on Foreign Operations

~~For~~The Company’s ~~purposes~~future operations and earnings will depend on the results of the ~~Consolidated~~Company’s ~~Statement~~operations in China. There can ofbe ~~Cash~~no ~~Flows,~~assurance that the Company ~~considers~~will ~~liquid~~be ~~investments~~able ~~with~~to ansuccessfully ~~original~~conduct ~~maturity~~such ofoperations, ~~three~~and ~~months~~a orfailure ~~less~~ to bedo so would have a material adverse effect on the Company’s financial position, results of operations, and cash ~~equivalents~~flows.

~~Management’s Use of Estimates~~8

~~The~~Also, the ~~preparation~~success of ~~consolidated~~the ~~financial~~Company’s ~~statements in~~operations ~~conformity~~will ~~with~~be ~~accounting~~subject ~~principles~~to ~~generally~~numerous ~~accepted~~contingencies, insome ~~the~~of ~~United~~which ~~States~~are ofbeyond ~~America~~management’s control. ~~requires~~These ~~management~~contingencies toinclude ~~make~~general ~~estimates~~and regional economic conditions, prices for the Company’s products, competition, and ~~assumptions~~changes ~~that~~in ~~affect~~regulation. Since the ~~reported~~Company ~~amounts~~is ofdependent ~~assets~~on ~~and~~international ~~liabilities~~operations, ~~and~~specifically ~~disclosures~~those ofin ~~contingent~~China, ~~assets~~the Company will be subject to various additional political, economic, and ~~liabilities~~other uncertainties. Among other risks, the Company’s operations atwill be subject to the ~~date~~risks of ~~consolidated~~restrictions ~~financial~~on ~~statements~~transfer ~~and~~of ~~the~~funds; ~~reported~~export ~~amounts~~duties, ofquotas, ~~revenues~~and embargoes; domestic and ~~expenses~~international customs ~~during~~and ~~the~~tariffs; ~~reporting~~changing ~~period. Actual~~taxation ~~results~~policies; ~~could~~foreign ~~differ~~exchange ~~from~~restrictions; ~~those~~and ~~estimates~~political conditions and governmental regulations.

~~Revenue Recognition~~Accounts Receivable

~~Revenue~~Accounts receivable isare ~~recognized~~stated at ~~the~~estimated ~~time~~net ~~the~~realizable ~~product~~value. Accounts receivable are comprised of balances due from customers isnet ~~delivered~~of ~~and~~estimated ~~title~~allowances ~~has~~for ~~passed~~uncollectible toaccounts. In determining the ~~customer.~~collectability ~~Cash~~of ~~discounts~~the account, historical trends are ~~recognized~~evaluated asand anspecific ~~expense~~customer inissues ~~the~~are ~~period~~reviewed into arrive at appropriate allowance which itis ~~actually occurs~~90 days. ~~Sales~~ ~~allowances~~Bad ~~are~~debt ~~recorded~~provision is asmade aif ~~reduction~~fail ofto ~~revenue~~collect inthe balance after the allowance period. inAnd ~~which~~the ~~they~~uncollectable ~~occur.~~amount ~~Revenue~~last ismore ~~presented~~than one year, it will ~~net~~automatically ofaccount ~~returns~~for bad debt.

~~Comprehensive Income (Loss)~~Inventory

Inventory includes raw material, package material, low-value consumables and merchandise. The Company ~~adopted~~adopts ~~Financial~~perpetual ~~Accounting~~inventory ~~Standards~~system ~~Board~~and ~~Statement~~inventories ofare ~~Financial~~recorded ~~Accounting~~at ~~Standards~~actual ~~(SFAS) No~~cost. Raw ~~130~~material, ~~(FASB~~package ~~ASC~~material ~~220),~~and ~~“Reporting~~merchandise ~~Comprehensive~~are ~~Income,” which~~priced ~~establishes~~at ~~standards~~cost ~~for~~upon acquisition, and with the ~~reporting~~weighted average method upon issuance and ~~display~~shipment. Low-value consumables are amortized at 50% of ~~comprehensive~~the amount ~~income~~upon application and ~~its~~amortized ~~components~~an inadditional ~~the~~50% ~~consolidated~~upon ~~financial statements~~obsolescence.

~~Foreign~~Property, Plant, ~~Currencies~~and Equipment

~~Assets~~Property, plant, and ~~liabilities~~equipment ~~denominated in respective functional currencies~~ are ~~translated~~recorded ~~into United States Dollars~~ at ~~the~~cost, ~~exchange~~less ~~rate~~accumulated asdepreciation ofand ~~the balance sheet date~~impairment. ~~The share~~Repairs ~~capital~~ and ~~retained~~maintenance ~~earnings~~expenditures, which are ~~translated~~not atconsidered ~~exchange~~improvements ~~rates~~and ~~prevailing~~do atnot extend the ~~time~~useful life of ~~the transactions. Revenues~~property, ~~costs~~plant, and ~~expenses~~equipment, ~~denominated~~are inexpensed ~~respective~~as ~~functional~~incurred. The ~~currencies~~cost ~~are~~and ~~translated~~related ~~into~~accumulated ~~United~~depreciation, ~~States~~applicable ~~Dollars~~to atsold ~~the~~or ~~weighted~~no ~~average exchange~~longer ~~rate~~in ~~for~~service ~~the~~property, ~~period.~~plant, ~~The~~and ~~effects~~equipment, ofare eliminated ~~foreign~~from ~~currencies~~the ~~translation~~accounts ~~adjustments~~and ~~are~~any ~~included~~gain asor aloss ~~separate~~is ~~component~~included ~~of accumulated~~in ~~other~~the ~~comprehensive~~statement ~~income~~of operations.

8Depreciation is calculated to write-off the cost or basis of the property, plant, and equipment over their estimated useful lives for the date on which they become fully operational and after taking into account their estimated residual values (salvage value), using the straight-line method, at the following rates per year:

China Health Resource, Inc. and Subsidiary

	Equipment	Straight-line for 5 to 20 years with a 3% salvage value
	Building	Straight-line for 20 years with a 5% salvage value

~~Notes~~The Company recognizes an impairment loss on property, plant, and equipment when evidence, such as the sum of expected future cash flows (undiscounted and without interest charges), indicates that future operations will not produce sufficient revenue to ~~Unaudited~~cover the ~~Condensed~~related ~~Consolidated~~future costs, including depreciation, and when the carrying amount of the asset cannot be realized through sale. Measurement ~~Financial~~of ~~Statements~~the impairment loss is based on the fair value of the assets.

~~For the Nine Months Ended September 30, 2011~~Income ~~and 2010~~Taxes

~~(Expressed~~Income taxes are provided in ~~USD~~accordance with Statement of Financial Accounting Standards (SFAS) No. 109 (FASB ASC 740), “Accounting for Income Taxes.” A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards.

~~Company’s Future Operations Are Dependent on Foreign Operations~~9

~~The~~Deferred tax ~~Company’s~~assets ~~future~~are ~~operations~~reduced ~~and~~by ~~earnings will~~a ~~depend~~valuation onallowance when, in the ~~results~~opinion of ~~the~~management, ~~Company’s~~it ~~operations~~is inmore ~~China.~~likely ~~There~~than ~~can~~not bethat, noand ~~assurance~~some portion ~~that~~or the ~~Company~~entire ~~will~~deferred betax ~~able to~~asset ~~successfully~~will ~~conduct~~not ~~such~~be ~~operations,~~realized. Deferred tax assets and aliabilities ~~failure~~are toadjusted dofor the soeffect ~~would~~of ~~have~~changes ain ~~material~~tax ~~adverse~~laws ~~effect~~and rates on the ~~Company’s~~date ~~financial position, results~~ of ~~operations, and cash flows~~enactment.

~~Also, the success of the Company’s operations~~Earnings ~~will~~(Loss) bePer ~~subject~~Common to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, prices for the Company’s products, competition, and changes in regulation. Since the Company is dependent on international operations, specifically those in China, the Company will be subject to various additional political, economic, and other uncertainties. Among other risks, the Company’s operations will be subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations.Share

~~Accounts~~Basic earnings ~~Receivable~~(loss) per share are computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period.

~~Accounts receivable are stated at estimated~~Fair ~~net~~Value ~~realizable value. Accounts receivable are comprised~~ of ~~balances~~Financial due from customers net of estimated allowances for uncollectible accounts. In determining the collectability of the account, historical trends are evaluated and specific customer issues are reviewed to arrive at appropriate allowance which is 90 days. Bad debt provision is made if fail to collect the balance after the allowance period. And the uncollectable amount last more than one year, it will automatically account for bad debt.Instruments

~~Inventory~~The carrying amounts reported in the consolidated balance sheet for cash, accounts receivable, accounts payable, and loans payable approximate fair value based on the short-term maturity of these instruments. The carrying value of the Company’s long-term debt approximated its fair value based on the current market conditions for similar debt instruments.

~~Inventory includes raw material, package material,~~Impairment ~~low-value~~of consumables and merchandise. The Company adopts perpetual inventory system and inventories are recorded at actual cost. Raw material, package material and merchandise are priced at cost upon acquisition, and with the weighted average method upon issuance and shipment. LowLong-~~value~~Lived ~~consumables are amortized at 50% of the amount upon application and amortized an additional 50% upon obsolescence.~~Assets

~~Property,~~The Company ~~Plant~~evaluated the recoverability of its property and equipment, and ~~Equipment~~other assets in accordance with Statements of Financial Accounting Standards (SFAS) No. 121, “Accounting for the Impairment of Long-Lived Assets to be Disposed of,” which requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds the estimated future undiscounted cash flows attributable to such assets or the business to which such intangible assets relate.

~~Property, plant, and equipment are recorded~~Stock-Based at cost, less accumulated depreciation and impairment. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of property, plant, and equipment, are expensed as incurred. The cost and related accumulated depreciation, applicable to sold or no longer in service property, plant, and equipment, are eliminated from the accounts and any gain or loss is included in the statement of operations.Compensation

~~Depreciation~~Employee stock-based compensation is ~~calculated~~accounted for in accordance with Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to ~~write-off~~Employees” (“APB 25”) and the FASB interpretations thereof. Pursuant to those accounting ~~cost~~pronouncements, orcompensation ~~basis~~is recorded for share options granted to employees at the date of grant based on the ~~property~~difference between the exercise price of the options and the market value of the underlying shares at that date. Due to the terms of the grants, the ~~plant~~fair value of the compensation in accordance with SFAS No. 123R, ~~and~~"Accounting ~~equipment~~for ~~over~~Stock-Based ~~their~~Compensation" approximates ~~estimated~~the ~~useful~~values ~~lives~~computed in accordance with APB No. 25. Stock-based compensation to non-employees is accounted for in accordance with SFAS No. 123R. Under both accounting pronouncements, as part of the ~~date~~necessary oncomputations, management is required to estimate the fair value of the underlying shares. Fair value has generally been determined by management, as the price at which the ~~they~~Company's ~~become~~shares ~~fully~~were ~~operational~~issued at the most recent prior placement of the Company's Common Stock. Since the Company was approved ~~and~~for ~~after~~listing ~~taking~~on ~~into~~the ~~account~~Over ~~their~~the ~~estimated~~Counter ~~residual~~Bulletin ~~values~~Board ~~(salvage~~- fair value), ~~using~~is determined according to stock market price. The timing of the grant and ~~straight~~measurement of stock-~~line~~based ~~method,~~awards atwill not have a material effect on the ~~following~~Company's results of operations and financial position. Since ~~rates~~no ~~per~~stock-based ~~year:~~awards exist.

	Equipment	Straight-line for 5 to 20 years with a 3% salvage value
	Building	Straight-line for 20 years with a 5% salvage value

Subsequent Events

~~The~~SFAS No. 165 ~~Company~~established ~~recognizes~~general anstandards ~~impairment~~of ~~loss~~accounting ~~on property,~~for ~~plant,~~ and ~~equipment~~disclosure ~~when~~of ~~evidence,~~events ~~such~~that asoccur after the ~~sum~~balance ofsheet ~~expected~~date, but ~~future~~before ~~cash~~the ~~flows~~financial statements are issued or available to be issued (~~undiscounted~~“subsequent ~~and~~events”). ~~without~~An ~~interest~~entity is required ~~charges),~~to ~~indicates~~disclose ~~that~~the ~~future~~date ~~operations~~through ~~will~~which ~~not~~subsequent ~~produce~~events ~~sufficient~~have ~~revenue~~been toevaluated ~~cover~~and the ~~related~~basis ~~future~~for ~~costs,~~that ~~including~~date. ~~depreciation~~For public entities, this ~~and~~is ~~when~~the date the ~~carrying~~financial ~~amount~~statements are issued. SFAS No. 165 does not apply to subsequent events or transactions that are within the scope of other GAAP and did not result in significant changes in the ~~asset~~subsequent ~~cannot~~events bereported ~~realized~~by ~~through~~the ~~sale~~Company. ~~Measurement~~ ofSFAS No. 165 ~~the~~became ~~impairment~~effective ~~loss~~for isinterim ~~based~~or annual periods ending after June 15, 2009 and did not impact the Company’s onfinancial statements. The Company evaluated for subsequent events through the ~~fair~~issuance ~~value~~date of the ~~assets~~Company’s financial statements.

910

~~China~~Recently Issued ~~Health~~Accounting ~~Resource, Inc. and Subsidiary~~Pronouncements

~~Notes~~The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to ~~Unaudited~~cause ~~Condensed~~a ~~Consolidated~~material impact on its consolidated financial condition or the consolidated ~~Financial~~results ~~Statements~~of its operations.

~~For~~In May ~~the~~2011, ~~Nine~~FASB ~~Months~~issued ~~Ended~~Accounting ~~September~~Standards 30Update No. 2011-04, “Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”). ASU 2011-04 changes the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and ~~2010~~for disclosing information about fair value measurements to ensure consistency between U.S. GAAP and IFRS. ASU 2011-04 also expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. This new guidance is to be applied prospectively. The Company anticipates that the adoption of this standard will not materially expand its financial statement note disclosures.

In June 2011, FASB issued ASU No. 2011-05, “Comprehensive Income (~~Expressed~~ASC inTopic ~~USD~~220): Presentation of Comprehensive Income” (“ASU 2011-05”), which amends current comprehensive income guidance. This accounting update eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity. Instead, the Company must report comprehensive income in either a single continuous statement of comprehensive income which contains two sections, net income and other comprehensive income, or in two separate but consecutive statements. ASU 2011-05 will be effective for public companies during the interim and annual periods beginning after December 15, 2011, with early adoption permitted. The Company is reviewing ASU 2011-05 to ascertain its impact on the Company’s financial position, results of operations or cash flows as it only requires a change in the format of the current presentation.

~~Income~~In September ~~Taxes~~2011, the FASB issued ASU 2011-08 which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for goodwill impairment. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The revised standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. We do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial condition.

~~Income~~In December ~~taxes~~2011, ~~are~~FASB ~~provided~~issued inAccounting ~~accordance~~Standards ~~with~~Update 2011-11, “Balance Sheet - Disclosures about Offsetting Assets and ~~Statement~~Liabilities” to enhance disclosure requirements relating to the offsetting of ~~Financial~~assets ~~Accounting~~and ~~Standards~~liabilities ~~(SFAS)~~on Noan entity's balance sheet. ~~109~~The ~~(FASB~~update ~~ASC~~requires ~~740),~~enhanced ~~“Accounting~~disclosures ~~for~~regarding ~~Income~~assets ~~Taxes.” A~~and liabilities that are presented net or gross in the statement ~~deferred~~of ~~tax~~financial ~~asset~~position when the right of offset exists, or ~~liability~~that isare ~~recorded~~subject ~~for~~to ~~all~~an ~~temporary~~enforceable ~~differences~~master ~~between~~netting ~~financial~~arrangement. The new disclosure requirements relating to this update are retrospective and ~~tax~~effective ~~reporting~~for annual and ~~net~~interim ~~operating~~periods beginning on or ~~loss~~after ~~carry~~January ~~forwards~~1, 2013. The update only requires additional disclosures, as such, we do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial condition.

~~Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that, and some portion or the entire deferred tax asset will not be realized~~3. ~~Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates~~ SUPPLEMENTAL onCASH ~~the~~FLOW ~~date of enactment.~~INFORMATION

~~Fair~~Supplemental disclosures ~~Value~~ of ~~Financial~~cash ~~Instruments~~flow information for the period ended March 31, 2012 and 2011 are summarized as follows:

~~The~~Cash ~~carrying~~paid during ~~amounts reported in~~ the ~~consolidated balance~~three ~~sheet~~month ~~for~~periods ~~cash,~~ended ~~accounts~~March ~~receivable~~31, ~~accounts~~2012 ~~payable,~~ and ~~loans~~2011 payable approximate fair value based on the short-term maturity of these instruments. The carrying value of the Company’s long-term debt approximated its fair value based on the current market conditions for ~~similar~~interest ~~debt~~and ~~instruments.~~income taxes:

Impairment of Long-Lived Assets

	March 31, 2012		March 31, 2011
Income Taxes		-		1,038,578
Interest		22,226		18,222

The Company evaluated the recoverability of its property and equipment, and other assets in accordance with Statements of Financial Accounting Standards (SFAS) No. 121, “Accounting for the Impairment of Long-Lived Assets to be Disposed of,” which requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds the estimated future undiscounted cash flows attributable to such assets or the business to which such intangible assets relate.11

~~Stock-Based~~4. ACCOUNTS ~~Compensation~~RECEIVABLE

~~Employee~~The ~~stock-based compensation is accounted~~majority ~~for~~of ~~in accordance with Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”) and~~ the ~~FASB~~Company’s ~~interpretations~~sales ~~thereof.~~are ~~Pursuant to those accounting pronouncements, compensation is recorded for share options granted to employees at the date of grant based~~ on ~~the~~open ~~difference~~credit ~~between~~terms ~~the exercise price of the options~~ and ~~the~~ ~~market~~in ~~value~~accordance ofwith ~~the underlying shares at that date. Due to the~~ terms ofspecified ~~the~~in ~~grants,~~ the ~~fair~~contracts ~~value~~governing of the ~~compensation in accordance~~relevant ~~with SFAS No~~transactions. ~~123R,~~Accounts ~~"Accounting~~receivable for Stock-Based Compensation" approximates the values computed in accordance with APB No. 25. Stock-based compensation to non-employees is accounted for in accordance with SFAS No. 123R. Under both accounting pronouncements, as ~~part~~ of ~~the~~March ~~necessary computations~~31, ~~management~~2012 isand ~~required~~December ~~to estimate the fair value of the underlying shares. Fair value has generally been determined by management~~31, as2011 ~~the~~consist ~~price at which the Company's shares were issued at the most recent prior placement~~ of the Company's Common Stock. Since the Company was approved for listing on the Over the Counter Bulletin Board - fair value is determined according to stock market price. The timing of the grant and measurement of stock-based awards will not have a material effect on the Company's results of operations and financial position. Since no stock-based awards exist.following:

Subsequent Events

	March 31, 2012		December 31, 2011
Accounts receivable, gross	$	5,208,028	$	5,386,455
Less: allowance for doubtful accounts		-		-
Account receivable, net		5,208,028		5,386,455

~~SFAS No. 165 established general standards~~All ofaccounts ~~accounting~~receivables ~~for and disclosure of events that occur after the balance sheet date, but before the financial statements~~ are ~~issued or~~aging ~~available~~within to30 ~~be issued (“subsequent events”)~~days. An entity is required to disclose the date through which subsequent events have been evaluated and the basis for that date. For public entities, this is the date the financial statements are issued. SFAS No~~. 165~~ ~~does~~provision ~~not apply to subsequent events or transactions that are within the scope~~ of ~~other~~bad ~~GAAP~~debt ~~and~~was ~~did~~accrued ~~not~~as result in significant changes in the subsequent events reported by the Company. SFAS No. 165 became effective for interim or annual periods ending after June 15, 2009 and did not impact the Company’s financial statements. The Company evaluated for subsequent events through the issuance date of ~~the Company’s financial statements~~year-end.

105. INVENTORIES

~~China~~Inventories as ~~Health~~of ~~Resource~~March 31, ~~Inc.~~2012 and ~~Subsidiary~~December 31, 2011 consist of the following:

Notes to Unaudited Condensed Consolidated Financial Statements

	March 31, 2012		December 31, 2011
Raw materials	$	1,437,071	$	1,276,462
Low value consumables		-		-
Finished goods		-		-
	$	1,437,071	$	1,276,462

~~For~~As of March 31, 2012 and December 31, 2011, 95% of the ~~Nine~~total ~~Months~~inventory ~~Ended~~is ~~September~~accounted 30by DAR and 5% for other TCM herbs. And no provision for obsolete inventories was recorded by the Company. The large amount of raw material are due to more TCM business started, larger volume demand of DAR, and higher purchasing than previous year. The company has largely increased its inventory in current period to take advantage of the increasing market demand. Low value consumables are the materials for the process of finished goods. Due to the different outsourcing process adopted for the same period in 2011, the processing party is having all the materials and ~~2010~~processing cost in its total fees. The finished goods, Bailing Capsules, had been changed to process by order due to the upgrade of the sales strategy.

~~(Expressed~~6. DEFERRED inINVENTORY ~~USD)~~COSTS

~~Recently~~The deferred ~~Issued~~inventory ~~Accounting~~costs ~~Pronouncements~~represented prepayment to suppliers for future inventory delivery. As of March 31, 2012 and December 31, 2011, the balances of deferred inventory costs are $3,961,277 and 3,079,930 respectively. These costs will be transferred to inventories at the time of inventory delivery.

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its consolidated financial condition or the consolidated results of its operations.12

~~In May 2011, FASB issued Accounting Standards Update No~~7. ~~2011-04, “Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and~~ ~~Disclosure~~ PREPAYMENT ~~Requirements~~FOR inLAND U.S. GAAP and IFRSs” (“ASU 2011-04”). ASU 2011-04 changes the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements to ensure consistency between U.S. GAAP and IFRS. ASU 2011-04 also expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. This new guidance is to be applied prospectively. The Company anticipates that the adoption of this standard will not materially expand its financial statement note disclosures.USAGE

In ~~June 2011, FASB issued ASU No. 2011-05,~~ ~~“Comprehensive~~November ~~Income (ASC Topic 220): Presentation of Comprehensive Income” (“ASU~~ 2011~~-05”)~~, ~~which~~ ~~amends current comprehensive income guidance. This accounting update eliminates~~ the ~~option~~company toentered ~~present~~land ~~the~~usage ~~components of~~agreement ~~other~~with ~~comprehensive~~12 ~~income~~local asvillage ~~part~~unions offor ~~the~~future ~~statement~~raw ofmaterial ~~shareholders’~~DAR ~~equity~~production. ~~Instead,~~ ~~the Company must report comprehensive~~Prepayment ~~income~~for inland ~~either~~usage aas ~~single continuous statement~~ of ~~comprehensive~~March ~~income which contains two sections~~31, ~~net~~2012 ~~income~~ and ~~other comprehensive income, or in two separate but consecutive statements. ASU 2011-05 will be effective for public companies during the interim and annual periods beginning after~~ December ~~15,~~ ~~2011~~31, ~~with early adoption permitted. The Company is reviewing ASU~~ 2011~~-05~~ toconsist ~~ascertain its impact on the Company’s financial position, results~~ of ~~operations or cash flows as it only requires a change in~~ the ~~format of the current presentation.~~following:

4. SUPPLEMENTAL CASH FLOW INFORMATION

	March 31, 2012		December 31, 2011
DAR production villages	$	3,523,823	$	3,520,131
Total		3,523,823		3,520,131

~~Supplemental disclosures of cash flow information~~8. ~~for~~ PROPERTY, ~~the~~PLANT ~~period~~AND ~~ended September 30~~EQUIPMENT, ~~2011 and 2010 are summarized as follows:~~NET

~~Cash~~Property, plant ~~paid~~and ~~during~~equipment, ~~the~~net ~~nine~~as ~~month~~of ~~period~~March ~~ended September 30~~31, ~~2011~~2012 and ~~2010~~December ~~for~~31, ~~interest~~2011 ~~and~~consists ~~income~~of ~~taxes~~the following:

	September 30, 2011			September 30, 2010
	March 31, 2012			December 31, 2011
Income Taxes		926,344			463,585
Property, plant and equipment		1,042,380			1,043,867
Interest		28,834			24,645
Less: accumulated depreciation		(227,198	)		(212,526	)
Property, plant and equipment, net	$	815,182		$	831,341

59. ACCOUNTS ~~RECEIVABLE~~PAYABLE AND ACCRUED LIABILITIES

~~The majority of the Company’s sales are~~Accounts onpayable ~~open credit terms~~ and inaccrued ~~accordance~~liabilities ~~with terms specified in the contracts governing the relevant transactions. Accounts receivable~~ as of ~~September~~March 3031, ~~2011~~2012 and December 31, ~~2010~~2011 consist of the following:

	September 30, 2011		December 31, 2010
	March 31, 2012		December 31, 2011
Accounts receivable, gross	$	3,847,158	$	1,071,812
Accounts payable		750,264		824,824
Less: allowance for doubtful accounts		—		—
Accrued liabilities		82,169		50,256
Account receivable, net		3,847,158		1,071,812
Total accounts payable and accrued liabilities	$	832,433	$	875,080

~~All~~Accrued liabilities ~~accounts~~include ~~receivables~~accrued ~~are~~wage ~~aging~~payable, ~~within~~accrued ~~30 days.~~welfare Sopayable, noother ~~provision~~taxes orpayable, ~~bad~~and ~~debt~~receipt ~~needs~~in ~~to be accrual~~advance.

1110. NOTES PAYABLE – CURRENT

~~China~~As ~~Health~~of March ~~Resource~~31, ~~Inc.~~2012 and ~~Subsidiary~~December 31, 2011, notes payable consist of the following:

Notes to Unaudited Condensed Consolidated Financial Statements

	March 31, 2012		December 31, 2011
Secured bank loan to an unrelated party. Bearing 6.475% interest Principal payments due 11/03/2012		476,621		476,122
Secured bank loan to an unrelated party. Bearing 6.875% interest Principal payments due 10/12/2012		254,199		253,932
Non-secured note payable to a related party, bearing no interest Principal payments due 12/28/2012		-		476,123

Total	$	730,820	$	1,206,177

~~For the Nine Months Ended September 30, 2011 and 2010~~13

~~(Expressed~~11. OTHER ~~in USD)~~PAYABLE

~~6. ADVANCES~~As TOof March ~~SUPPLIERS~~31, 2012 and December 31, 2011, notes payable consist of the following:

Due to the high demand of DAR product, the company advances money to third party suppliers to secure more DAR supply. These advances bear no interest and will be applied as the payment when purchases are received. The balance of advances to suppliers as of September 30, 2011 and December 31, 2010 are $689 and $491, respectively.

	March 31, 2012		December 31, 2011
Labor union fee	$	8,240	$	7,251
Pension fund		63,923		51,699
Social insurance		29,351		139,763
Risk Fund		159		159
Other		61,144		2,399
TOTAL	$	162,817	$	201,271

712. ~~INVENTORIES~~ CONVERTIBLE DEBT

~~Inventories~~On July as1, 2010, the company issued a convertible note in amount of $80,000 for the consulting services rendered by a consultant. Pursuant to the agreement, the note bears 1% annual interest and convertible at $0.008 per share after September 301, ~~2011~~2010 per all outstanding principal amount and ~~December~~accrued interest and fees. In January, 2011, partial amount ($56,000) of convertible note was 31converted into 7, ~~2010~~000,000 ~~consist~~shares. The remaining balance of ~~the~~convertible ~~following:~~debt was $24,000, which was converted into 3,000,000 shares on May 4, 2011. There was no balance of convertible debt as of March 31, 2012.

	September 30, 2011		December 31, 2010
Raw materials	$	4,652,887	$	653,695
Low value consumables		0		0
Finished goods		0		0
	$	4,652,887	$	653,695

13. INCOME TAXES

~~As of September 30, 2011 and December 31, 2010,~~The noCompany ~~provision~~conducts ~~for~~all ~~obsolete~~its ~~inventories~~operating ~~was~~business ~~recorded~~through byits ~~the~~subsidiaries ~~Company~~in China. The ~~large~~subsidiaries ~~amount of raw material~~ are ~~due~~governed toby ~~more~~the ~~TCM~~income ~~business~~tax ~~started,~~laws ~~larger volume demand~~ of ~~DAR,~~the PRC and ~~higher~~do ~~purchasing~~not ~~than~~have ~~previous~~any ~~year.~~deferred ~~The~~tax ~~company~~assets ~~has~~or ~~largely~~deferred ~~increased~~tax ~~its~~liabilities ~~inventory in~~under ~~current~~the ~~quarter~~income totax ~~take~~laws ~~advantage~~ of the ~~increasing~~PRC ~~market~~because there ~~demand. Low value consumables~~ are ~~the~~no ~~materials~~temporary ~~for~~differences ~~the~~between ~~process~~financial ~~of finished~~statement ~~goods.~~carrying ~~Due~~amounts toand the ~~different~~tax ~~outsourcing~~bases ~~process~~of ~~adopted~~existing ~~for~~assets ~~the~~and ~~same~~liabilities. The ~~period~~Company inby ~~2010,~~itself ~~the~~does ~~processing~~not ~~party~~have isany ~~having~~business ~~all the~~operating ~~materials~~activities ~~and processing cost~~ in ~~its~~the ~~total~~United ~~fees.~~States ~~The~~and ~~finished~~is ~~goods,~~therefore ~~Bailing~~not ~~Capsules,~~subject ~~had been changed~~ to ~~process by order~~United ~~due~~States toincome ~~the upgrade of the sales strategy~~tax.

8The Company’s subsidiaries are governed by the Income Tax Law of the People’s Republic of China (PRC) concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws (the Income Tax Laws). ~~PREPAID~~ Beginning January 1, 2008, ~~EXPENSES~~the new Enterprise Income Tax (“EIT”) law has replaced the previous laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The new standard EIT rate of 25% has replaced the 33% rate previously applicable to both DEs and FIEs.

~~Prepaid~~Prior to ~~expenses~~2008, asunder the Chinese Income Tax Laws, FIEs generally were subject to an income tax at an effective rate of ~~September~~33% (30,% ~~2011~~state income ~~and~~taxes plus 3% local income taxes) on income as reported in their statutory financial statements after appropriate tax adjustments ~~December~~unless 31the enterprise was located in specially designated regions for which more favorable effective tax rates apply. Beginning January 1, ~~2010~~2008, ~~consist~~China ofhas unified the ~~following:~~corporate income tax rate on foreign invested enterprises and domestic enterprises. The unified corporate income tax rate is 25%.

		September 30, 2011				December 31, 2010
Prepaid expenses		$	2,254,324			$	2,453,892

The Company generated substantially its net income from its PRC operation and has recorded income tax provision for the three months ended March 31, 2012 and March 31, 2011.

~~All prepaid expenses are paid to the contracting farmers as part of the raw material DAR purchasing amount.~~14

~~9. Note~~The ~~Receivable~~components of (loss) income before income taxes separating U.S. and PRC operations are as follows:

For the first three quarters of 2011, there were no new issue related to or belong to note receivable.

	March 31, 2012			March 31, 2011
Loss subject to U.S. operation	$	(17,458	)	$	(178,149	)
Income (loss) subject to PRC operation		1,778,675			1,384,282
Income (loss) before income taxes	$	1,761,217		$	1,206,133

~~10. PROPERTY,~~United States ~~PLANT~~of ~~AND EQUIPMENT, NET~~America

~~Property,~~The Company ~~plant~~is ~~and~~registered ~~equipment,~~in ~~net~~the asState of ~~September~~Delaware ~~30,~~and ~~2011~~is ~~and December~~subject ~~31,~~to ~~2010~~United ~~consists~~States of ~~the~~America ~~following:~~tax law.

	September 30, 2011			December 31, 2010
Property, plant and equipment		1,038,583			991,883
Less: accumulated depreciation		(208,325	)		(163,928	)
Property, plant and equipment, net	$	830,258		$	827,956

For the three month period ended March 31, 2012, the U.S. operation had $17,458 of net operating losses available for federal tax purposes, which are available to offset future taxable income. The net operating loss carry forwards begin to expire in 2030. The Company has provided for a full valuation allowance for any future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

12The PRC

~~China~~The reconciliation ~~Health~~of ~~Resource~~income tax rate to the effective income tax rate based on income before income taxes stated in the consolidated statement of operations for the three month period ended March 31, ~~Inc.~~2012 and ~~Subsidiary~~March 31, 2011 is as follows:

Notes to Unaudited Condensed Consolidated Financial Statements

	March 31, 2012			March 31, 2011

Income (loss) before income taxes	$	1,778,675		$	1,384,282
Statutory income tax rate		25	%		25	%
		444,669			346,070
Expenses not deductible for tax purposes:		18			456
- Provisions		-			-
Income tax expense	$	444,687		$	346,526

~~For~~The following table reconciles the ~~Nine~~U.S. ~~Months~~statutory ~~Ended~~rate ~~September~~to ~~30,~~the ~~2011 and~~Company’s ~~2010~~effective tax rate:

(Expressed in USD)

	March 31, 2012			March 31, 2011
U.S. Statutory rate		34	%		34	%
Foreign income not recognized in USA		(34	)		(34	)
China income taxes		25			25

Total provision for income taxes	$	25		$	25

11The Company applies FASB ASC 740-10, “Accounting for Income Taxes”, which requires recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. ~~ACCOUNTS~~ ~~PAYABLE~~Provision ~~AND~~for ~~ACCRUED~~income ~~LIABILITIES~~taxes consist of taxes currently due plus deferred taxes. Because the Company has no operations within the United States, there is no provision for US income taxes and there are no deferred tax amounts as of the three months period ended March 31, 2012 and March 31, 2011.

~~Accounts payable and accrued liabilities as of September 30, 2011 and December 31, 2010 consist of the following:~~15

	September 30, 2011		December 31, 2010
Accounts payable		310,332		421,258
Accrued liabilities		371,847		14,757
Total accounts payable and accrued liabilities	$	682,179	$	436,015

The charge for taxation is based on the results for the period as adjusted for items that are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized.

~~Accrued~~Deferred taxes ~~liabilities~~are ~~include~~calculated ~~accrued~~at ~~wage~~the ~~payable~~tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred taxes are charged or credited in the income statement, ~~accrued~~except ~~welfare~~when they relate to items credited or charged ~~payable~~directly to equity, ~~other~~in which case the deferred taxes ~~payable,~~are also recorded in equity. Deferred tax assets and ~~receipt~~liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. The Company adopted FASB Interpretation 48, “Accounting for Uncertainty in ~~advance~~Income Taxes” (“FIN 48”), as of January 1, 2007. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption of FIN 48 had no affect on the Company’s financial

1214. ~~NOTES~~ MAJOR ~~PAYABLE~~CUSTOMER/VENDOR -AND ~~CURRENT~~ CONCENTRATION

As(a) ofSale ~~September 30, 2011 and December 31, 2010, notes payable consist of the following:~~breakdown

	September 30, 2011		December 31, 2010
Secured note payable to an unrelated party, bearing 8.6625 % interest Principal payments due 12/26/2011	$	472,076		452,987
Non-secured note payable to a related party, bearing 6.95% interest Principal payments due 10/28/2011		472,077		452,987
TOTAL	$	944,153		905,974

For the three month period ended March 31, 2012, 100% of the Company’s assets were located in the PRC and 100% of the Company’s revenues were derived from customers located in the PRC.

13All customers are all non-related parties, mostly located in Sichuan province or southern China. ~~OTHER~~ ~~PAYABLE~~The sole business relationship with Yinfa is to purchase raw DAR, other TCM, or Yishen Capsule. For the three months ended March 31, 2012, 38% of the total revenue is contributed by DAR, 38% of the total revenue is contributed by other TCM, and 24% of total revenue is contributed by Yishen Capsule.

As(b) ofCredit ~~September 30, 2011 and December 31, 2010, notes payable consist of the following:~~risk

	September 30, 2011		December 31, 2010
Labor union fee	$	7,189	$	6,898
Pension fund		44,210		22,263
Social insurance		141,319		81,204
Risk Fund		157		151
TOTAL	$	192,875	$	110,516

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company performs ongoing credit evaluations of its customers' financial condition, but does not require collateral to support such receivables.

1315. Stockholders’ equity

~~China~~Effective August ~~Health~~20, ~~Resource~~2010, ~~Inc~~the Company’s Board of Directors appointed Mr. ~~and~~Jiayin ~~Subsidiary~~Wang Chief Executive Officer of the Company. The Board of Directors has approved the following compensation for Mr. Wang in his capacity as the Company’s Chief Executive Officer:

~~Notes~~(a) no toannual ~~Unaudited~~base ~~Condensed~~salary ~~Consolidated~~will be paid until such time as the Company achieves $1,000,000 in annual net income, whereupon Mr. Wang ~~Financial~~will ~~Statements~~receive an annual base salary of based upon the Company’s market capitalization and fair market rate of a public company chief executive officer;

~~For~~(b) A signing bonus totaling $50,000, payable on August 20, 2010 in shares of the ~~Nine~~Company's ~~Months~~Class ~~Ended~~A ~~September~~common 30stock (the "Common Stock") based on a price per share of $0.00782, ~~2011~~the average of the closing prices of the Common Stock as quoted on the OTC ~~and~~Bulletin ~~2010~~Board for the five (5) trading days ending on such date. Mr. Wang received 6,393,862 shares of Common Stock as a signing bonus which shares are not registered under the U.S. Securities Act of 1933, as amended (the "1933 Act");

~~(Expressed in USD)~~16

14c) A grant of stock options to purchase 6,000,000 shares of Common Stock at an exercise price of $0. ~~CONVERTIBLE~~02 ~~DEBT~~per share, vesting over 18 months in equal monthly installments. The stock options were granted pursuant to the Company’s 2009 Omnibus Incentive Plan and have a grant date of August 20, 2010; and

On July 1, 2010, the company issued a convertible note in amount of $80,000 for the consulting services rendered by a consultant. Pursuant to the agreement, the note bears 1% annual interest and convertible at $0.008 per share after September 1, 2010 per all outstanding principal amount and accrued interest and fees. In January, 2011, partial amount (~~$56,000~~d) Performance ofbonuses ~~convertible~~payable ~~note~~in ~~was converted into 7, 000,000~~ shares. ~~The remaining balance~~ of ~~convertible~~the ~~debt~~Common ~~was~~Stock ~~$24,000,~~ (which ~~was~~shares ~~converted~~will ~~into~~not ~~3,000,000~~registered ~~shares~~under onthe ~~May~~1933 4,Act) ~~2011.~~based ~~There~~upon ~~was no~~milestones ~~balance~~and ofterms ~~convertible debt~~ as ~~of September 30, 2011.~~follows:

15i. ~~INCOME~~ ~~TAXES~~If the Company achieves $500,000 in net income for the three-month period ended September 30, 2010 as shown in the Company's financial statements contained in the Quarterly Report on Form 10-Q for such period, Mr. Wang will receive a bonus of $40,000 payable in shares of Common Stock valued at $0.02 per share.

~~The Company conducts all its operating business through its subsidiaries in China~~ii. ~~The~~If ~~subsidiaries are governed by~~ the ~~income~~Company ~~tax~~achieves ~~laws~~$1,000,000 ofin ~~the~~net ~~PRC and do not have any deferred tax assets or deferred tax liabilities under the~~ income ~~tax~~for ~~laws of~~ the ~~PRC~~six-month ~~because~~period ~~there~~ended ~~are~~December no31, ~~temporary~~2010, ~~differences~~Mr. ~~between financial~~Wang ~~statement~~will ~~carrying~~receive ~~amounts~~a ~~and~~bonus ~~the tax bases~~ of ~~existing~~$100,000 ~~assets~~payable ~~and liabilities. The Company by itself does not have any business operating activities~~ in ~~the~~shares ~~United~~of ~~States~~Common ~~and~~Stock isvalued ~~therefore~~at ~~not~~$0.05 ~~subject~~per ~~to United States income tax~~share.

~~The~~iii. ~~Company’s~~If ~~subsidiaries are governed by~~ the ~~Income~~Company ~~Tax~~achieves ~~Law~~$1,500,000 ofin ~~the~~net ~~People’s Republic of China (PRC) concerning Foreign Investment Enterprises and Foreign Enterprises and various local~~ income ~~tax~~for ~~laws (~~the ~~Income~~nine-month ~~Tax~~period ~~Laws).~~ended ~~Beginning~~March ~~January 1~~31, ~~2008~~2011, ~~the~~Mr. ~~new~~Wang ~~Enterprise~~will ~~Income~~receive ~~Tax~~a ~~(“EIT”) law~~bonus ~~has~~of ~~replaced~~$160,000 ~~the~~payable ~~previous~~in ~~laws~~shares ~~for~~of ~~Domestic~~Common ~~Enterprises~~Stock ~~(“DEs”)~~valued ~~and~~at ~~Foreign Invested Enterprises (“FIEs”)~~$0. ~~The~~08 ~~new~~per ~~standard EIT rate of 25% has replaced the 33% rate previously applicable to both DEs and FIEs~~share.

~~Prior to 2008, under the Chinese Income Tax~~Mr. ~~Laws,~~Wang ~~FIEs~~will ~~generally~~also ~~were~~be ~~subject~~eligible to anreceive ~~income~~periodic ~~tax~~stock atgrants anand ~~effective~~participate ~~rate of 33% (30% state income taxes plus 3% local income taxes) on income as reported~~ in ~~their statutory financial statements after appropriate tax adjustments unless~~ the ~~enterprise~~Company's ~~was~~incentive ~~located in~~plans ~~specially~~and ~~designated~~benefit ~~regions~~ plans for which ~~more~~he ~~favorable~~is ~~effective tax rates apply~~eligible. ~~Beginning January 1, 2008, China has unified the corporate income tax rate on foreign invested enterprises and domestic enterprises. The unified corporate income tax rate is 25%.~~

~~The~~In recognition of Mr. Wang's contributions to the Company's ~~generated~~achievement ~~substantially~~of ~~its~~various ~~net~~corporate and financial milestones, effective ~~income~~August ~~from~~20, ~~its~~2010, ~~PRC~~the ~~operation~~Board ~~and~~of ~~has~~Directors ~~recorded~~approved ~~income~~a ~~tax~~bonus ~~provision~~for Mr. Wang in the amount of $88,000 payable in shares of Common Stock based on a price per share of $0.00782, the average of the closing prices of the Common Stock as quoted on the OTC Bulletin Board for the ~~nine~~five ~~months~~(5) ~~ended~~trading ~~September~~days 30ending on such date. Mr. Wang received 11,253,197 ~~2011~~shares ~~and~~of ~~2010~~Common Stock that are not registered under the 1933 Act under this bonus.

~~The~~For the ~~components~~year ended December 31, 2010, total 17,647,059 shares of ~~(loss)~~Common ~~income~~Stock ~~before~~in ~~income~~amount of $138,000 was issued and recognized as share-based ~~taxes~~compensation. ~~separating~~$7,958 Uwas recognized as option expenses for vested option as of December 31, 2010.S. ~~and~~The ~~PRC~~company ~~operations~~has ~~are~~also accrued $140,000 expenses relating to CEO’s performance bonus as ~~follows:~~of December 31, 2010.

	September 30, 2011			September 30, 2010
Loss subject to U.S. operation	$	(212,947	)	$	(272,000	)
Income (loss) subject to PRC operation		6,116,557			1,854,791
Income (loss) before income taxes	$	5,903,610		$	1,582,791

On July 15, 2011, the Company issued 6,000,000 shares of common stock to Jiayin Wang to settle his performance bonuses payable accrued pursuant to his employment offer letter signed August 20, 2010 (see above (d) i, ii, and iii). Jiayin Wang has achieved the milestones pursuant to the employment offer letter and therefore was awarded accordingly.

~~United~~On October ~~States~~30, 2011, the Company entered an investment banking service agreement with a third party and issued 1,500,000 shares of comment ~~America~~stock for the service rendered. These common stocks were valued and recorded at market price ($0.02 per share) at the issuance.

~~The~~For the ~~Company~~year isended ~~registered~~December in31, 2011, the ~~State~~company ofrecognized ~~Delaware and~~$31,831 isas ~~subject~~option toexpenses ~~United~~for ~~States~~vested ofoption ~~America~~(see ~~tax~~above ~~law~~(c) ) .

For the ~~nine~~year ~~months~~ ended ~~September~~December 3031, 2011, the ~~U.S.~~company ~~operation~~recognized ~~had~~ $~~212~~30,~~947~~063 ofimputed ~~net~~interest ~~operating~~expense ~~losses~~from ~~available~~non-interest ~~for~~bearing ~~federal tax purposes, which are available to offset future~~shareholder’s ~~taxable~~loan ~~income. The~~(see ~~net~~note ~~operating~~10) ~~loss~~as ~~carry~~additional ~~forwards begin to expire~~ paid-in ~~2030. The~~capital ~~Company has provided for a full valuation allowance for any future tax benefits~~ from ~~the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future~~shareholder.

14For the 3 months ended March 31, 2012, the company recognized $7,958 as option expenses for vested option.

~~China Health Resource, Inc. and Subsidiary~~17

~~Notes to Unaudited Condensed Consolidated~~16. ~~Financial~~ COMMITMENT ~~Statements~~AND CONTINGENCIES

~~For~~On November 3, 2011, the ~~Nine~~Company’s ~~Months~~wholly ~~Ended~~owned ~~September~~subsidiary 30Suining Yinfa DAR Industrial Co, ~~2011~~Ltd. received 7 separated purchasing ~~and~~letters ~~2010~~of intent totaling of over 7.5 million USD with the time period from November 4, 2011 to November 3, 2012

~~(Expressed~~The Company inrented ~~USD~~land (note 7) and warehouse space under a non-cancelable operating lease agreement. Based on the current rental lease agreement, the future five years minimum rental payments required as of December 31 are as follows:

The PRC

Year ended December 31	Lease payment
2012	1,320,050
2013	1,765,346
2014	1,770,642
2015	1,775,954
2016	1,781,282
Total	8,413,274

~~The reconciliation of income tax rate to the~~ITEM ~~effective~~2. MANAGEMENT’S ~~income~~DISCUSSION ~~tax~~AND ~~rate~~ANALYSIS ~~based~~OF onFINANCIAL ~~income~~CONDITION ~~before~~AND ~~income~~RESULTS ~~taxes~~OF ~~stated in the consolidated statement of operations for the nine months ended September 30, 2011 and September 30, 2010 is as follows:~~OPERATIONS

	September 30, 2011			September 30, 2010
Income (loss) before income taxes	$	6,116,557		$	1,854,791
Statutory income tax rate		25	%		25	%
		1,529,139			463,585
Expenses not deductible for tax purposes:
- Provisions		—			—
Effect of tax losses		—			—
Income tax expense	$	1,529,139		$	463,585

The following discussion should be read in conjunction with the Company’s unaudited consolidated financial statements and notes thereto included in Item 1 of this report and is qualified in its entirety by the foregoing.

~~The following table reconciles the U.S. statutory~~Forward ~~rate~~Looking ~~to the Company’s effective tax rate:~~Statements

	September 30, 2011			September 30, 2010
U.S. Statutory rate		34	%		34	%
Foreign income not recognized in USA		(34	)		(34	)
China income taxes		25			25
Total provision for income taxes	$	25		$	25

Certain statements in this report, including statements of our expectations, intentions, plans and beliefs, including those contained in or implied by “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the Notes to Consolidated Financial Statements, are “forward-looking statements”, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are subject to certain events, risks and uncertainties that may be outside our control. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “will”, and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements. These forward-looking statements include statements of management's plans and objectives for our future operations and statements of future economic performance, information regarding our expansion and possible results from expansion, our expected growth, our capital budget and future capital requirements, the availability of funds and our ability to meet future capital needs, and the assumptions described in this report underlying such forward-looking statements. Actual results and developments could differ materially from those expressed in or implied by such statements due to a number of factors, including, without limitation, those described in the context of such forward-looking statements, our expansion and acquisition strategy, our ability to achieve operating efficiencies, our ability to successfully develop, manufacture and deliver Dahurian Angelica Root and related products on a timely basis and in the prescribed condition, evolving standards in the Traditional Chinese Medicine industry, domestic and international regulatory matters, general economic and business conditions, the strength and financial resources of our competitors, our ability to raise sufficient capital in order to effectuate our business plan, our ability to find and retain skilled personnel and key executives, the political and economic climate in which we conduct operations and the risk factors described from time to time in our other documents and reports filed with the Securities and Exchange Commission (the “Commission”).

The Company applies FASB ASC 740-10, “Accounting for Income Taxes”, which requires recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consist of taxes currently due plus deferred taxes. Because the Company has no operations within the United States, there is no provision for US income taxes and there are no deferred tax amounts as of nine months ended September 30, 2011 and September 30, 2010.General

~~The~~All ~~charge~~references in ~~for~~this ~~taxation~~Quarterly isReport ~~based~~ on ~~the~~Form ~~results for the year as adjusted for items that are non~~10-~~assessable~~Q orto ~~disallowed.~~the It“Company,” is“CHRI,” ~~calculated~~the ~~using~~“Registrant,” ~~tax rates that have been enacted~~“we,” “us” or ~~substantively~~“our” ~~enacted~~are byto ~~the~~China ~~balance~~Health ~~sheet~~Resource, ~~date~~Inc., ~~Deferred~~a ~~taxes~~Delaware ~~are~~corporation. These ~~accounted~~terms ~~for~~also refer, ~~using~~where ~~the~~context ~~balance~~requires, ~~sheet~~to ~~liability~~our ~~method~~subsidiary ~~in respect~~corporation, ofSuining ~~temporary~~Shi ~~differences~~Yinfa ~~arising~~Bai ~~from~~Zhi ~~differences~~Chan ~~between~~Ye ~~the~~You ~~carrying~~Xian ~~amount~~Gong ofSi, ~~assets~~a ~~and liabilities in the financial~~corporation ~~statements~~organized and ~~the~~existing ~~corresponding~~under ~~tax basis used in~~ the ~~computation~~laws of ~~assessable~~the ~~tax~~Peoples’ ~~profit.~~Republic Inof ~~principle,~~China ~~deferred tax liabilities are recognized for all taxable temporary differences~~(“Yinfa”), ~~and~~acquired ~~deferred~~in ~~tax~~August ~~assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized~~2006.

Deferred taxes are calculated at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred taxes are charged or credited in the income statement, except when they relate to items credited or charged directly to equity, in which case the deferred taxes are also recorded in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. The Company adopted FASB Interpretation 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), as of January 1, 2007. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption of FIN 48 had no effect on the Company’s financial statements.18

15We were incorporated in the State of Delaware on February 26, 2002. On June 13, 2006, we, as the acquirer, executed a Plan of Exchange with Yinfa (acquiree), the shareholders of Yinfa and the Company’s then majority shareholders, pursuant to which we issued 30,000,000 (pre-forward split) new shares of our Class A Common Stock to the Yinfa shareholders in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, in reliance upon Regulation S thereunder, in exchange for all of the shares of registered capital of Yinfa making Yinfa our wholly-owned subsidiary. Yinfa was founded on April 24, 2001, with registered capital of US $125,500 (RMB 1,000,000) and total assets of US $1,475,795. Yinfa’s business incorporates a self-owned production base and a network of DAR (as defined below) associates, farmers and research and development affiliates. The transaction was treated for accounting purposes as a capital transaction and recapitalization by the accounting acquirer and as a re-organization by the accounting acquiree. We changed our name to China Health Resource, Inc. to more accurately reflect our business operations.

~~China Health Resource, Inc. and Subsidiary~~Our Business

~~Notes~~Our core business is pharmaceuticals. Our subsidiary Yinfa is a Chinese pharmaceutical company focused on producing, processing, and commercializing traditional Chinese medicine (“TCM”) products to ~~Unaudited~~pharmaceutical ~~Condensed~~manufacturers ~~Consolidated~~and wholesale markets. One of ~~Financial~~our ~~Statements~~products, Dahurian Angelica Root (“DAR”) is a popular herb employed extensively as an ingredient in food, medicine and cosmetics for the treatment of pain, swelling and pustule.. Our products are cultivated in areas where unique local climates and soil properties result in the finest quality.

~~For~~In May 2005, we applied for and obtained Good Agricultural Practice (“GAP”) certification for DAR, in partnership with Sichuan Yinfa Resource Development Group Co. Ltd., (“Yinfa Resource”). The standards which must be met to obtain GAP certification include the ~~Nine~~study ~~Months~~of ~~Ended~~our ~~September~~environment 30quality including water and soil samples, ~~2011~~seed quality, use of pesticides, and ~~2010~~use of fertilizers. These standards were approved by the Chinese State Food and Drug Administration (the “SFDA”). Our GAP farm production base includes approximately 133,334 square meters of experimental planting fields, and 1,333,340 square meters of contracted farm production bases, all of which passed inspection by the SFDA on February 26, 2006. The GAP standards are inspected annually. The GAP certificate has been issued in name of our partner, Yinfa Resource. Our exclusive GAP certification for DAR demonstrates the high quality standards of our DAR and DAR-related products.

In 2007, the Company achieved a cooperation with the Sichuan Province Suining City DAR Association (~~Expressed~~“Association”) inand ~~USD~~received the exclusive rights to the “Sichuan Angelica” certified trademark from the Chinese State Administration of Industry and Commerce through December 13, 2016. As holder of the rights to the trademark, the Company is receives a management fee of 1RMB (or approximately US $0.14) per kilogram of DAR (including packaging fees) from any user of the trademark, of which 60% may be used by Yinfa for further development and investment of its DAR business and the remaining 40% is paid for related expenses. In addition, the Company receives 100% of the revenue stream from the use of the DAR trademark through December 13, 2016 and 95% of the revenue stream thereafter. There are approximately 235 regional certification trademarks in China, including 65 for natural resources, of which over 20 are for natural herb resources. In addition to the DAR Association, in 2010, Yinfa received the exclusive license to use and manage the “Sichuan Angelica” trademark by the General Administration of Quality Supervision, Inspection and Quarantine of People’s Republic of China.

16Currently, raw-DAR in both its original root form and processed form (both sliced and powder) is one of our major products and it is sold to pharmaceutical manufacturers (80%) or wholesalers (20%). ~~MAJOR~~ Our DAR-related product offerings also include Yisheng Capsule, which ~~CUSTOMER/VENDOR~~has ~~AND~~been ~~CONCENTRATION~~certified by the SFDA, and sold to regional distributors throughout China.

In addition, in 2011 the Company has added Rhizoma Gastrodia (a“Gastrodia”) ~~Sale~~ ~~breakdown~~along with various other raw TCM products to the Company’s product offering. Gastrodia, along with various other raw TCM products are sold to pharmaceutical manufacturers (80%) or wholesalers (20%). With the expansion of TCM to markets in the United States and other countries, we expect to continue to identify unique TCM products of the highest quality to add to our markets.

~~For the nine months ended September 30, 2011, 100% of the Company’s assets were located in the PRC and 100% of the Company’s revenues were derived from customers located in the PRC.~~19

~~All~~We ~~customers~~believe our ~~are~~business ~~all~~model ~~non-related~~will ~~parties, mostly~~help ~~located~~facilitate inthe ~~Sichuan~~process ~~province~~of orgrowing ~~southern~~and ~~China.~~commercializing ~~The~~all ~~sole~~of ~~business~~our ~~relationship~~products with ~~Yinfa~~through isresearch toand development ~~purchase~~of ~~raw~~added ~~DAR,~~uses ~~other~~of ~~TCM, or~~our ~~Yishen~~products ~~Capsule.~~in ~~For~~a ~~the~~range ~~nine~~of ~~months ended September 30~~foods, ~~2011,~~medicines ~~42%~~and ofcosmetics ~~the~~to ~~total~~increase ~~revenue~~our isrevenues ~~contributed~~and byenhance ~~DAR,~~shareholder value. ~~40%~~These ofopportunities ~~the~~may ~~total revenue~~include, isbut ~~contributed~~are bynot ~~other~~limited ~~TCM~~to, ~~and~~acquisitions ~~18%~~or licensing of ~~total~~additional ~~revenue~~products isin ~~contributed~~synergistic or ~~byYishen~~complementary ~~Capsule~~industries.

~~(b) Credit risk~~Seasonality

~~Financial~~The ~~instruments~~planting of ~~that~~DAR ~~potentially~~is subject ~~the~~ ~~Company~~ to ~~significant~~seasonal ~~concentrations~~fluctuations. ofDAR ~~credit~~is ~~risk~~planted ~~consist~~during ~~principally~~the ofwinter ~~cash~~months and ~~trade~~is ~~accounts~~suitable ~~receivable.~~for harvest in the summer. The ~~Company~~prime season for harvest is typically from July through November, subject to climate conditions. As a result, we typically ~~performs~~enter ~~ongoing~~into ~~credit~~contracts ~~evaluations~~with farmers during the first quarter of ~~its~~the ~~customers'~~fiscal ~~financial~~year ~~condition~~for the purchase of raw DAR, ~~but~~and ~~does~~purchase ~~not~~raw ~~require~~DAR from ~~collateral~~farmers during the third and forth quarters. We then process the harvested DAR and sell products to ~~support~~our ~~such~~customers ~~receivables~~throughout the year. Therefore, our revenues occur throughout the year.

~~17. Share-based~~Critical ~~compensation~~Accounting Policies

~~Effective August 20, 2010, the Company’s~~Revenue Board of Directors appointed Mr. Jiayin Wang Chief Executive Officer of the Company. The Board of Directors has approved the following compensation for Mr. Wang in his capacity as the Company’s Chief Executive Officer: recognition

Our revenue recognition policies are in accordance with Staff Accounting Bulletin No. 104. Sales revenue is recognized when all of the following have occurred: (ai) nopersuasive ~~annual~~evidence ~~base~~of ~~salary~~an ~~will~~arrangement beexists, ~~paid~~(ii) ~~until such~~delivery ~~time~~has asoccurred ~~the~~or ~~Company~~services ~~achieves~~have $1been rendered,~~000,000~~ in(iii) the ~~annual~~price ~~net~~is ~~income~~fixed or determinable, ~~whereupon~~and ~~Mr.~~(iv) ~~Wang~~the ~~will~~ability ~~receive~~to ancollect ~~annual~~is ~~base~~reasonably ~~salary~~assured. ofThese ~~based upon~~criteria ~~the~~are ~~Company’s~~generally ~~market~~satisfied at ~~capitalization~~the ~~and~~time ~~fair~~of ~~market~~shipment ~~rate~~when risk of aloss ~~public~~and ~~company~~title ~~chief~~passes ~~executive~~to ~~officer;~~the customer.

~~(b)~~We Arecognize revenue ~~signing~~when ~~bonus~~the ~~totaling~~goods ~~$50,000,~~are ~~payable on~~delivered ~~August~~and ~~20,~~title ~~2010~~has inpassed. ~~shares~~Sales ofrevenue represents the ~~Company's~~invoiced ~~Class~~value Aof ~~common~~goods, ~~stock~~net ~~(the~~of ~~"Common~~a ~~Stock"~~value-added tax (“VAT”). ~~based~~All onof aour ~~price~~products ~~per~~that ~~share~~are ~~of $0.00782,~~sold in the ~~average~~PRC ofare ~~the~~subject ~~closing~~to ~~prices~~a ofChinese ~~the~~value-added ~~Common~~tax ~~Stock~~at asa ~~quoted~~rate onof 17% of the ~~OTC~~gross ~~Bulletin~~sales ~~Board~~price ~~for~~or ~~the~~at ~~five~~a ~~(5)~~rate ~~trading~~approved ~~days ending~~by onthe ~~such~~Chinese ~~date~~local government. ~~Mr.~~ ~~Wang~~This ~~received~~VAT ~~6,393,862~~may ~~shares~~be ofoffset ~~Common~~by ~~Stock~~the asVAT apaid ~~signing~~by ~~bonus~~us ~~which~~on raw ~~shares~~materials ~~are~~and ~~not~~other ~~registered under~~materials ~~the~~included ~~U.S.~~in ~~Securities~~the ~~Act~~cost of ~~1933,~~producing astheir ~~amended~~finished ~~(the "1933 Act");~~product.

c) A grant of stock options to purchase 6,000,000 shares of Common Stock at an exercise price of $0.02 per share, vesting over 18 months in equal monthly installments. The stock options were granted pursuant to the Company’s 2009 Omnibus Incentive Plan and have a grant date of August 20, 2010; andInventory

~~(d)~~Inventory includes ~~Performance~~raw ~~bonuses~~material, ~~payable~~package inmaterial, ~~shares~~low-value ofconsumables and merchandise. We have adopted a perpetual inventory system and ~~the~~inventories ~~Common~~are ~~Stock~~recorded ~~(which~~at ~~shares~~actual ~~will~~cost. ~~not~~Raw ~~registered~~material, ~~under~~package material and merchandise are priced at cost upon acquisition, and with the ~~1933~~weighted ~~Act)~~average ~~based~~method upon ~~milestones~~issuance and ~~terms~~shipment. asLow-value ~~follows:~~consumables are amortized at 50% of the amount upon application and amortized an additional 50% upon obsolescence.

~~i. If the Company achieves $500~~Property,~~000 in net income for the three-month period ended September 30~~ Plant, ~~2010~~and as shown in the Company's financial statements contained in the Quarterly Report on Form 10-Q for such period, Mr. Wang will receive a bonus of $40,000 payable in shares of Common Stock valued at $0.02 per share.Equipment

~~ii.~~Property, plant, Ifand ~~the~~equipment ~~Company~~are ~~achieves~~recorded $1at cost,~~000~~ less accumulated depreciation and impairment. Repairs and maintenance expenditures,~~000~~ which inare ~~net~~not ~~income~~considered ~~for~~improvements and do not extend the ~~six-month~~useful ~~period~~life ~~ended~~of ~~December~~property, 31plant, ~~2010~~and equipment, ~~Mr.~~are ~~Wang~~expensed ~~will~~as ~~receive~~incurred. The acost ~~bonus~~and ofrelated ~~$100~~accumulated depreciation,~~000~~ ~~payable~~applicable to sold or no longer in ~~shares~~service ofproperty, ~~Common~~plant, ~~Stock~~and ~~valued~~equipment, atare eliminated ~~$0.05~~from ~~per~~the ~~share~~accounts and any gain or loss is included in the statement of operations.

~~iii.~~Depreciation is Ifcalculated to write-off the ~~Company~~cost ~~achieves~~or $1basis of the property,~~500~~ plant,~~000~~ inand ~~net~~equipment ~~income~~over their estimated useful lives for the ~~nine-month~~date on ~~period~~which ~~ended~~they ~~March~~become ~~31,~~fully ~~2011,~~operational ~~Mr.~~and ~~Wang~~after ~~will~~taking ~~receive~~into aaccount ~~bonus~~their ofestimated ~~$160,000~~residual ~~payable~~values in(salvage ~~shares~~value), ofusing ~~Common~~the straight-line ~~Stock~~method, ~~valued~~ at ~~$0.08~~the following rates per ~~share.~~year:

Mr. Wang will also be eligible to receive periodic stock grants and participate in the Company's incentive plans and benefit plans for which he is eligible.

Equipment:	Straight-line for 5 to 20 years with a 0% salvage value
Building:	Straight-line for 20 years with a 5% salvage value
Useful life of land	Straight-line for 15 years with a 5% salvage value

1620

~~China~~We ~~Health~~recognize an ~~Resource~~impairment loss on property, ~~Inc.~~plant, and ~~Subsidiary~~equipment when evidence, such as the sum of expected future cash flows (undiscounted and without interest charges), indicates that future operations will not produce sufficient revenue to cover the related future costs, including depreciation, and when the carrying amount of the asset cannot be realized through sale. Measurement of the impairment loss is based on the fair value of the assets.

~~Notes to Unaudited Condensed Consolidated~~FASB ~~Financial~~Accounting ~~Statements~~Standards Codification

~~For~~(Accounting Standards ~~the~~Update ~~Nine~~(“ASU”) ~~Months Ended September 30, 2011 and 2010~~2009-01)

In June 2009, FASB approved the FASB Accounting Standards Codification (~~Expressed~~“the inCodification”) ~~USD~~as the single source of authoritative nongovernmental GAAP. All existing accounting standard documents, such as FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other related literature, excluding guidance from the Securities and Exchange Commission (“SEC”), have been superseded by the Codification. All other non-grandfathered, non-SEC accounting literature not included in the Codification has become non-authoritative. The Codification did not change GAAP, but instead introduced a new structure that combines all authoritative standards into a comprehensive, topically organized online database. The Codification is effective for interim or annual periods ending after September 15, 2009, and impacts the Company’s financial statements as all future references to authoritative accounting literature will be referenced in accordance with the Codification. There have been no changes to the content of the Company’s financial statements or disclosures as a result of implementing the Codification during the quarter ended June 30, 2010.

InAs ~~recognition~~a result of ~~Mr. Wang's contributions to~~ the Company'’s ~~achievement~~implementation of ~~various~~the ~~corporate~~Codification ~~and~~during ~~financial~~the ~~milestones,~~quarter ~~effective~~ended ~~August~~June 2030, 2010, ~~the~~previous ~~Board~~references ofto ~~Directors~~new ~~approved~~accounting astandards ~~bonus~~and ~~for~~literature ~~Mr.~~are ~~Wang~~no inlonger applicable. In the ~~amount~~current ofquarter ~~$88,000~~financial ~~payable in shares of Common Stock based on a price per share of $0.00782~~statements, the ~~average of~~Company ~~the~~will ~~closing~~provide reference ~~prices~~to ofboth ~~the~~new ~~Common~~and ~~Stock~~old asguidance ~~quoted~~to onassist ~~the~~in ~~OTC~~understanding ~~Bulletin Board for~~ the ~~five~~impacts ~~(5)~~of ~~trading~~recently ~~days~~adopted ~~ending~~accounting onliterature, ~~such date.~~ particularly ~~Mr.~~for ~~Wang~~guidance ~~received~~adopted ~~11,253,197~~since ~~shares~~the beginning of ~~Common~~the ~~Stock~~current ~~that~~fiscal ~~are~~year ~~not~~but ~~registered~~prior ~~under~~to the ~~1933 Act under this bonus~~Codification.

~~The company also recognized $23,874 as option~~Results ~~expenses~~of ~~for~~Operations ~~vested option (see above (c) )~~ for the 9Three ~~months~~Months ~~ended~~Ended ~~September~~March 3031, 2011.

~~On July 15, 2011, the Company issued 6,000,000~~Balance shares of common stock to Jiayin Wang to settle his performance bonuses payable accrued pursuant to his employment offer letter signed August 20, 2010 (see above (d) i, ii, and iii). Jiayin Wang has achieved the milestones pursuant to the employment offer letter and therefore was awarded accordingly.Sheet

18Our total assets for the three months ended March 31, 2012 were US $15,741,354 compared to the three months ended March 31, 2011 were US $7,184,478. ~~SUBSEQUENT~~ Total liabilities increased to US $2,725,838 for the three months ended March 31, 2012 from US $2,389,870 for the ~~EVENTS~~three months ended March 31, 2011, principally due to an increase of cash and cash equivalents, accounts receivable, prepaid expenses, inventory, accounts payable, notes payable, taxes payable.

On November 3, 2011, the Company’s wholly owned subsidiary Suining Yinfa DAR Industrial Co, Ltd. received 7 separated purchasing letters of intent totaling of over 7.5 million USD with the time period from November 4, 2011 to November 3, 2012

Balance Sheet	March 31, 2012		March 31, 2011
Total Assets	$	15,754,434	$	7,184,478
Total Liabilities		2,725,838		2,389,870
Net Assets	$	13,028,596	$	4,794,608

17Results of Operations

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Profit/Loss	For the Three Months Ended
	March 31, 2012			March 31, 2011
Operating Income (Loss)	$	1,761,218		$	1,206,133
Net Income (Loss) Before Tax		1,761,217			1,206,133
Corp. Income Tax		(444,687	)		(346,526	)
Net Income (Loss)	$	1,316,530		$	859,607

~~Forward Looking Statements~~Revenues

~~Certain~~Our ~~statements in this report, including~~revenues ~~statements~~for ofthe ~~our~~three ~~expectations,~~months ~~intentions,~~ended ~~plans~~March ~~and beliefs~~31, ~~including~~2012 ~~those~~were ~~contained~~US in$ or$8,955,361, ~~implied~~an byincrease ~~“Management's Discussion and Analysis~~ of ~~Financial~~105% ~~Condition~~over ~~and~~revenues ~~Results~~ of ~~Operations”~~US ~~and the Notes to Consolidated Financial Statements~~$4, ~~are “forward-looking statements”~~378,311 ~~within~~for the ~~meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),~~three ~~that~~months ~~are~~ended ~~subject~~March ~~to certain events~~31, ~~risks and uncertainties that may be outside our control~~2011. The ~~words~~increase ~~“believe”, “expect”,~~in ~~“anticipate”,~~sales ~~“optimistic”,~~revenues ~~“intend”,~~was ~~“will”,~~due ~~and~~primarily ~~similar expressions identify forward-looking statements. Readers are cautioned not~~ to ~~place~~an ~~undue~~increase ~~reliance~~in onthe ~~these~~volume ~~forward-looking~~of ~~statements~~sales, ~~which~~ ~~speak only as of~~ the ~~date on which they are made. We undertake no obligation to update or revise any forward-looking statements.~~increase ~~These forward-looking statements include statements~~ of ~~management's~~unit ~~plans~~sales ~~and~~price ~~objectives for our future operations and statements~~ of ~~future~~Yishen ~~economic performance~~capsule, ~~information regarding our expansion~~ and ~~possible~~sales ~~results~~of ~~from~~other ~~expansion,~~TCM ~~our~~received ~~expected~~during ~~growth, our capital budget and future capital requirements,~~ the ~~availability~~three ofmonths ~~funds~~ended ~~and~~March ~~our ability to meet future capital needs~~31, ~~and the assumptions described in this report underlying such forward-looking statements~~2012. ~~Actual~~Most ~~results and developments could differ materially from those expressed in or implied by such statements due to a number~~ of ~~factors, including, without limitation, those described~~the inrevenue ~~the~~growth ~~context~~was ofattributable ~~such forward-looking statements, our expansion and acquisition strategy, our ability~~ to ~~achieve~~increased ~~operating~~volume ~~efficiencies, our~~sales ~~ability to successfully develop, manufacture and deliver Dahurian Angelica Root and related products on a timely basis and~~ in ~~the~~raw ~~prescribed~~DAR ~~condition, evolving standards in the Traditional Chinese Medicine industry, domestic~~ and ~~international~~other ~~regulatory matters,~~TCM ~~general~~herbs. ~~economic~~Our ~~and~~sales ~~business~~arrangements ~~conditions,~~are ~~the~~not ~~strength and financial resources of our competitors, our ability to raise~~subject ~~sufficient capital in order~~ to ~~effectuate~~any ~~our~~warranties. ~~business~~In ~~plan,~~this ~~our ability to find and retain skilled personnel and key executives~~period, ~~the~~ ~~political~~TCM ~~and~~prices ~~economic~~including ~~climate~~DAR inretail ~~which~~prices wedecreased ~~conduct~~slightly ~~operations~~due ~~and the risk factors described from time~~ to ~~time in our other documents and reports filed with~~ the ~~Securities~~macro ~~and~~TCM ~~Exchange~~market ~~Commission (the “Commission”)~~condition.

~~General~~Cost of Sales; Gross Profit

~~All~~Cost ~~references~~of sales inare ~~this~~expenses ~~Quarterly~~directly ~~Report~~related onto manufacturing and selling our products, including costs of raw materials purchased from ~~Form~~farmers, ~~10-Q~~product todelivery and direct labor cost. The cost of sales for the ~~“Company~~three months ended March 31,” ~~“CHRI~~2012 were US $6,”972,090, representing an increase of 142% over the ~~“Registrant~~cost of sales of US $2,”882,178 ~~“we~~for the three months ended March 31,” ~~“us”~~2011. orThe increased ~~“our”~~costs ~~are~~of sales and comparatively lower gross profit rate for the three months ended March 31, 2012 were principally due to ~~China~~the costs ~~Health~~related ~~Resource~~to the increase of sales volume of other TCM products. For the three months ended March 31, ~~Inc~~2012, rising DAR costs could not be passed on to consumers. This higher retail price resulted in higher cost of goods margins. From the beginning of the year 2010, drought hit many production places of DAR, resulting in a ~~Delaware~~price ~~corporation. These~~increase ~~terms~~for ~~also~~raw ~~refer~~DAR. Also, ~~where~~we ~~context~~had to purchase ~~requires,~~additional raw DAR due to ~~our~~the ~~subsidiary~~increased ~~corporation~~demand, ~~Suining~~and ~~Shi~~with ~~Yinfa~~shortage ~~Bai~~of ~~Zhi~~supply ~~Chan~~in Yethe ~~You~~market, ~~Xian~~the ~~Gong~~result Siwas an increased cost of sales for the three months ended March 31, 2012. The reason we can keep our cost of goods sold for raw DAR was favorably impacted by a ~~corporation~~strengthened ~~organized~~relationship with the local government and ~~existing under~~the DAR Association, which increased our advantage in the ~~laws~~supply chain of DAR. The other reason is because the ~~Peoples’~~Company ~~Republic~~elected to make prepaid deposits to secure exclusivity of ~~China~~the ~~(“Yinfa”),~~DAR ~~acquired~~harvest from DAR farmers in ~~August~~larger ~~2006~~volume.

WeGross profit ~~were~~for ~~incorporated in~~ the ~~State~~three ofmonths ~~Delaware on~~ended ~~February~~March 2631, ~~2002. In~~2012 ~~June~~increased ~~and~~by ~~July 2002, we acquired~~ approximately 9933% of the outstanding shares of Voice Diary Ltd., an Israeli corporation (“VDL”), through an exchange of shares of the Company with shareholders of VDL. On June 13, 2006, we, as the acquirer, executed a Plan of Exchange with Yinfa (acquiree), the shareholders of Yinfa and the Company’s then majority shareholders, pursuant to which we issued 30,000,000 (post-split) new shares of our Class A Common Stock to the Yinfa shareholders in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, in reliance upon Regulation S thereunder, in exchange for all of their shares of registered capital of Yinfa. As a result, Yinfa became our wholly-owned subsidiary. Yinfa was founded on April 24, 2001, with registered capital of US $~~125,500 (RMB~~ 1,~~000~~983,~~000) and~~271 ~~total~~from ~~assets of~~ US $1,~~475~~496,~~795. Yinfa’s~~133 ~~business~~for ~~incorporates~~the ~~a self-owned production base and a network of~~three ~~DAR~~months ~~(as~~ended ~~defined~~March ~~below) associates~~31, ~~farmers and research and development affiliates~~2011. ~~The~~Gross ~~transaction~~profit ~~was~~margin ~~treated~~ for ~~accounting~~ ~~purposes as a capital transaction and recapitalization by~~ the ~~accounting~~three ~~acquirer~~months ~~and~~ended asMarch a31, ~~re-organization~~2012 bywas ~~the accounting acquiree. We disposed of VDL on August~~ 22,% ~~2006~~compared ~~pursuant~~ to ~~the~~34% ~~agreement~~for ~~between~~ the ~~Company,~~three months ~~VDL~~ended ~~and~~March ~~Arie Hinkis~~31, ~~our~~ ~~former president~~2011. On ~~May~~This ~~21,~~was ~~2007,~~primarily wedue ~~changed our name~~ to ~~China~~the ~~Health~~product ~~Resource, Inc~~mix. ~~to more accurately reflect our business operations.~~

18Operating Expenses

~~Our~~The ~~Business~~operating expenses for the three months ended March 31, 2012 were US $222,053, representing a decrease of 23% over operating expenses of US $290,000 for the three months ended March 31, 2011. The interest costs for the three months ended March 31, 2012 were US $22,248, representing an increase of 139% over interest costs of US $9,328 for the three months ended March 31, 2011. The operating expenses included selling, general and administrative (“SG&A”) expense and interest cost. SG&A expenses decreased overall to US $199,805 for the three months ended March 31, 2012 compared to US $280,672 for the three months ended March 31, 2011. The decrease of SG&A expenses for the recent quarter is primarily due to last year’s CEO incentive plan, and some one-time expenses or expenses paid semi-annually such as Yinfa’s legal consulting fee, auditing fee, agency fee, maintenance fee.

~~Since the completion of the Plan of Exchange~~Other ~~with~~Comprehensive Yinfa, our core business has been in pharmaceuticals and the continued operations of Yinfa. Yinfa is a Chinese pharmaceutical company focused on producing, processing and commercializing Dahurian Angelica Root (“DAR”), a popular Traditional Chinese Medicine (“TCM”) herb employed extensively as an ingredient in food, medicine and cosmetics. The Suining district in China’s Sichuan Province is the major planting and production area in China for DAR as a result of the unique and ideal local climate and soil properties. Over 70% of DAR for general use and 100% of DAR for pharmaceutical use in China is produced in Suining. We have partnered with Chengdu University of Traditional Chinese Medicine for scientific development and technical support. Our business strategy involves continued development in research and development (“R&D”) base fields, retaining experienced DAR farmers, using scientific methods to develop new drugs , and leveraging the DAR Association (this association explained below) for DAR production and competitive market advantage. Besides the producing and sales of DAR, we also make further processing of DAR due to its functions in expelling wind (in TCM terminology, which describes wind-cold exterior syndrome manifested by headache, supraobital pain and nasal obstruction), detoxification, anti-inflammatory and pain relieving. The Company currently offers the following products:Income/Expense

~~1. Yishen~~For ~~Capsule:~~ the ~~Yishen~~three ~~Capsule~~months isended aMarch ~~TCM~~31, ~~health care product~~2012, ~~with~~we ~~Sichuan~~had ~~DAR~~a astotal ~~main~~Other ~~ingredient~~Comprehensive ~~together~~Income ~~with~~of ~~other~~US ~~TCM herbs~~$15, ~~such as Panax quinquefolius (commonly known as Ginseng)~~988, ~~Rhizoma~~compared ~~gastrodiae~~to ~~(commonly~~other comprehensive ~~known~~income asof ~~Tian~~US ~~ma)~~$51,854 ~~Eriobotrya~~for ~~japonica~~the ~~(commonly known~~three asmonths ~~loquat~~ended orMarch ~~medlar)~~31, ~~etc~~2011. This ~~Yishen Capsule~~ is ~~effective~~primarily inrelated ~~treating~~to ~~weariness,~~foreign ~~caused by hypoxia (hypoxia is a pathological~~currency ~~condition~~translation inbetween ~~which~~RMB ~~the~~and ~~body is deprived of adequate oxygen supply)~~USD.

2. Bailing Capsule: the Bailing Capsule is made from Sichuan DAR (main ingredient), Glossy ganoderma (Glossy ganoderma helps to strengthen blood function and improve leukocyte level. Also, it is highly effective for strengthening body's own anticancer activity), Coix seed (Coix seeds stimulate the digestive and cardiovascular systems, are anti-inflammatory, and induce diuresis. Coix seeds are also used to treat the symptoms of diarrhea and arthritis), Chrysanthemum (which has properties of anti-HIV-1, antibacterial and antimycotic), etc. The production process includes raw ingredient selecting, drying, raw ingredient crushing, raw ingredient mixing, sterilizing, filling and packaging. It is a good medicine for healing exogenous headaches, migraine headaches, vascular headache to name a few.22

~~3. Zhiyuan~~Impact ~~Fragrant~~of Bag: In this fragrant bag, the Sichuan DAR, together with Rhizoma atractylodis, Patchouli, Borneol, Rhizoma ligustici wallichii, Chinese cinnamon, chrysanthemum, Eupatorium fortunei Turcz. and peppermint, can be effective in cleansing, refreshing, and strengthening the immune system with its aroma-therapy properties. This fragrant bag, a further developed health care product originated from the traditional fragrant bag, is effective in anti-flu and anti-carsickness. 4. Kimchee Mate: This Kimchee Mate, with Sichuan DAR as main ingredient, is produced in modernized, high-temperature sterilization and vacuum packing. Kimchee Mate is used for making kimchee, and helps make the kimchee more fragrant and crisp.Inflation

OnWe ~~February 26, 2006, Sichuan Yinfa Resource~~believe ~~Development~~that ~~Co.,~~inflation ~~Ltd~~has ~~(“Yinfa~~had ~~Resource”),~~a ansignificant ~~affiliate~~effect ~~company,~~on ~~successfully~~operations ~~obtained~~for the ~~Good~~three ~~Agricultural~~months ~~Practice of~~ended ~~Medical~~March ~~Plants~~31, ~~and Animals (“GAP”) certification for DAR~~2012. The ~~standards~~inflation ~~which~~rate ~~must~~in bethe Sichuan ~~met~~Province tohas ~~obtain~~been ~~certification include~~lower than the ~~inspections~~average ofnational ~~our~~inflation ~~environmental~~rate ~~quality,~~for ~~seed quality~~China. However, ~~and~~the ~~strict~~beginning ~~monitoring~~ of ~~chemical~~the ~~residue levels from pesticides~~year ~~and~~2010 ~~fertilizers.~~was ~~These~~impacted ~~standards were adopted~~ by ~~the~~drought ~~Chinese~~that ~~State~~hit ~~Food~~many ~~and~~production ~~Drug~~places ~~Administration~~of ~~(the “SFDA”). On January 1~~DAR, ~~2007,~~resulting ~~Yinfa~~in ~~Resource entered into, with Yinfa,~~ a ~~contract~~price increase for ~~the~~raw ~~exclusive right of using the~~ DAR. ~~GAP~~We ~~certificate~~believe ~~from January~~this 1,is ~~2007~~a toshort-term ~~December~~impact ~~31,~~on ~~2017~~inflation. ~~Our~~Also, ~~R&D~~significant ~~Fields~~increases ~~for~~in ~~GAP~~inflation ~~production~~throughout ~~involves~~China ~~approximately~~have ~~133,334~~raised ~~square~~retail ~~meters~~prices of ~~R&D planting~~DAR, ~~fields~~and ~~farmed~~most ~~directly~~TCM byproducts ~~Yinfa,~~in ~~and~~general. ~~1,333,340~~But ~~square~~in ~~meters~~the offirst ~~fields~~quarter ~~farmed~~of ~~under~~2012, the ~~instructions~~china’s ~~and~~TCM ~~directions~~market ofis ~~Yinfa,~~in ~~all of~~a ~~which~~relatively ~~passed~~stable ~~inspection~~condition, and bysome of the ~~SFDA~~TCMs ~~and~~appear ~~meet~~to ~~the~~have ~~specifications~~a ~~for~~decrease ~~GAP~~in price. In ~~order~~We toalso ~~expand~~believe ~~production~~that ~~and~~we ~~meet~~can ~~the DAR~~offset ~~demand~~any ininflationary ~~market,~~increases ~~Yinfa increased,~~ in ~~December~~the cost ~~2008,~~of ~~fields~~sales ~~farmed~~by ~~under~~continuing ~~the~~to ~~instructions~~increase ~~and~~our ~~directions~~sales of ~~Yinfa~~DAR byand ~~2,141,544 square~~other ~~meters,~~TCM ~~with~~in ~~such~~response ~~fields~~to ofcontinued ademand ~~total~~and ~~3,474,884~~by ~~square~~improving ~~meters~~operating efficiencies.

19Taxes

~~In December 14, 2006, Sichuan Province Suining~~According ~~City~~to ~~DAR Association (“Association”) successfully obtained~~ the ~~“Suining~~Corporate ~~Sichuan~~Income ~~Angelica”~~Tax ~~certified~~Law ~~trademark issued by the China State Administration~~ of ~~Industry and Commerce through December 13~~China, ~~2016,~~companies ~~and~~without isany ~~renewable.~~tax ~~Yinfa~~abatement ~~signed~~programs ~~an agreement~~are ~~with~~charged ~~the~~at ~~Association,~~a in25% ~~which~~income ~~Yinfa~~tax ~~has exclusive rights to use and benefit from the trademark~~rate. The ~~significance of~~ ~~the~~income ~~trademark~~tax isfor ~~that it is commonly known that~~ the ~~best~~three ~~quality~~months ~~DAR~~ended ~~comes~~March ~~from Suining~~31, ~~Sichuan.~~2012 ~~There~~were ~~are~~US ~~approximately 235 regional certification trademarks like these in China~~$444,687, ~~including~~an 65increase ~~for natural resources,~~ of ~~which~~28% ~~over~~compare 20to ~~are~~income ~~for~~tax ~~natural~~of ~~herb~~US ~~resources~~$346,526 ~~which shows that these trademarks~~ for ~~natural~~the ~~resources~~three ~~are~~months ~~difficult~~ended toMarch ~~obtain~~31, 2011. ~~The~~For ~~development~~the ofthree ~~Suining~~months ~~Sichuan~~ended ~~DAR~~March ~~with~~31, ~~GAP standard~~2012, iswe ~~supported~~accrued byincome ~~the~~taxes ~~National Scientific and Technical Supporting Program~~ of ~~the~~US ~~Ministry of Science and Technology of~~$623,312. ~~PRC;~~For ~~and also~~ the ~~National~~three ~~Scientific~~months ~~and~~ended ~~Technical~~March ~~Supporting~~31, ~~Program~~2011, ofwe ~~Sichuan~~accrued ~~Provincial~~income ~~Science~~taxes ~~and Technology Department~~ of ~~PRC~~US $21,200.

~~The price of raw DAR depends on supply and~~Net demand. As our business grows, we intend to further expand the Suining Sichuan DAR trademark, which is the highest quality DAR available grown within GAP standards and is most ideal for pharmaceutical use.Income

We ~~believe~~had net ~~our~~income ~~business~~for ~~model~~the ~~will~~three ~~help~~months ~~facilitate the~~ended ~~process~~March of31, ~~growing~~2012 ~~and~~of ~~commercializing~~US ~~DAR~~$1,316,530, ~~research~~an ~~and~~increase ~~development,~~of ~~sales~~53% ~~and~~compared ~~marketing.~~to ~~Our~~a ~~current~~net ~~DAR-related~~income ~~products include~~for the ~~Bailing~~three months ~~Capsule,~~ended ~~Yisheng~~March ~~Capsule~~31, ~~Kimchee-Mate~~2011 ~~and~~of ~~Fragrant~~US ~~Bag~~$859,607. ~~all~~The ofimprovement ~~which~~in ~~have~~our ~~been~~net ~~certified~~income byfor the ~~SFDA~~three ~~and~~months ~~are being~~ended ~~sold~~March ~~into~~31, ~~the~~2012 ~~market~~is ~~via~~attributable principally ~~regional distributors throughout China. We will continue~~ to ~~explore~~increased ~~the~~sales ~~development~~revenue and ~~addition of~~a ~~DAR~~foreign ~~products~~currency intranslation again ~~range~~between ofthe ~~foods,~~RMB ~~medicines~~ and ~~cosmetics~~U.S. Indollar. ~~addition,~~The ~~we continue to consider and explore opportunities to~~increased ~~expand~~sales ~~our~~revenue ~~current~~is ~~asset~~primary ~~base~~due ~~and product offerings~~ to ~~increase~~increased ~~our~~volume ~~revenues.~~sales ~~These~~in ~~opportunities~~raw ~~may~~DAR ~~include, but are not limited to, acquisitions or licensing of additional products~~ and ~~the partnership or merger of Yinfa with~~ other ~~Chinese companies in synergistic or complementary industries~~products.

~~Seasonality~~We are working to strengthen our internal management processes and to grow our sales revenues, while maintaining an efficient cost structure. However, there can be no assurance that we will achieve or maintain continuing profitability, or that revenue growth will continue in the future.

~~The planting of DAR is subject to seasonal~~Liquidity ~~fluctuations. DAR is planted during the winter months~~ and isCapital suitable for harvest in the summer. The prime season for harvest is typically from July through November, subject to climate conditions. As a result, we typically enter into contracts with farmers during the first quarter of the fiscal year for the purchase of raw DAR, and purchase raw DAR from farmers during the third and forth quarters. We then process the harvested DAR and sell products to our customers throughout the year. Therefore, our revenues occur throughout the year. Resources

~~Critical~~Net ~~Accounting~~cash flow ~~Policies~~from operating activities was US $907,402 for the three months ended March 31, 2012, compared to cash flow of US $292,212 from operating activities for the three months ended March 31, 2011. This was due to an increase of net profit of US $1,316,530 for the three months ended March 31, 2012 from a net income of US $859,607 for the three months ended March 31, 2011. Net expenditures for inventory were US $158,917 for the three months ended March 31, 2012 compared to US $1,132,473 for the three months ended March 31, 2011. There was a decrease of US $ 183,666 in accounts receivable to US $5,208,028 for the three months ended March 31, 2012 from an inflow of US $270,537 for the three months ended March 31, 2011. Accounts payable and accrued liabilities decreased to US $832,433 for the three months ended March 31, 2012 from US $875,080 for the three months ended March 31, 2011. Taxes Payable increased to US $623,312 for the three months ended March 31, 2012 from US $21,200 for the three months ended March 31, 2011.

~~Revenue~~The ~~recognition~~was no net cash flow in investing activities for the three months ended March 31, 2012, compared to net cash flow of US $0 from investing activities for the three months ended March 31, 2011.

~~Our revenue recognition policies are in accordance~~There ~~with~~was ~~Staff~~a ~~Accounting~~cash ~~Bulletin~~outflow ~~No.~~related ~~104.~~to ~~Sales~~Financing ~~revenue~~Activities isfor ~~recognized~~US ~~when~~$475,564 ~~all~~for of the ~~following~~three ~~have~~months ~~occurred:~~ended ~~(i)~~March ~~persuasive evidence of an arrangement exists~~31st, ~~(ii)~~2012 ~~delivery~~compared to ~~has~~US$0 ~~occurred~~net orcash ~~services~~flows ~~have~~used ~~been~~in ~~rendered,~~financing ~~(iii)~~activities for the ~~price~~three ismonths ~~fixed~~ended orMarch ~~determinable~~31, ~~and~~ ~~(iv) the ability to collect is reasonably assured~~2011. ~~These~~This ~~criteria~~was ~~are~~attributable ~~generally~~to ~~satisfied at~~ the ~~time of shipment when risk~~payment ofrelated ~~loss and title passes~~ to ~~the~~short-term ~~customer~~notes payable.

We recognize revenue when the goods are delivered and title has passed. Sales revenue represents the invoiced value of goods, net of a value-added tax (“VAT”). All of our products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price or at a rate approved by the Chinese local government. This VAT may be offset by the VAT paid by us on raw materials and other materials included in the cost of producing their finished product.23

~~Inventory~~Overall, we have funded our cash needs from inception through March 31, 2012 with a series of debt and equity transactions, primarily with related parties. If we are unable to receive additional cash from our related parties, we may need to rely on financing from outside sources through debt or equity transactions. Our related parties are under no legal obligation to provide us with capital infusions. Failure to obtain such financing could have a material adverse effect on operations and financial condition.

~~Inventory~~We ~~includes~~had cash ~~raw~~of ~~material~~US $674,811 ~~package~~on ~~material~~hand for the three months ended March 31, ~~low-value~~ ~~consumables~~2012, ~~and~~an ~~merchandise.~~increase Weof ~~have~~US ~~adopted~~$433,056 afrom ~~perpetual~~the ~~inventory~~beginning ~~system~~of the year and ~~inventories~~attributable ~~are~~in ~~recorded~~substantial atpart ~~actual~~to ~~cost~~an increase in cash inflow from operations. ~~Raw~~ ~~material~~Currently, ~~package~~we ~~material~~have ~~and~~enough ~~merchandise~~capital ~~are~~to ~~priced~~fund our atoperations ~~cost~~because ~~upon~~we ~~acquisition,~~have ~~and~~a ~~with~~sizable ~~the~~accounts ~~weighted~~receivable ~~average~~to ~~method~~fund ~~upon~~operations. ~~issuance~~A significant part of accounts receivable was paid off and ~~shipment~~our new accounts receivable has been added with new customers. ~~Low-value~~The ~~consumables~~Company ~~are~~expects ~~amortized~~to atreceive ~~50%~~these offunds on time. But if accounts receivable cannot be collected timely, we may not be able to sustain our capital needs. Therefore, we will strengthen the ~~amount~~management ~~upon~~toward ~~application~~accounts ~~and~~receivable ~~amortized~~to anquicken ~~additional~~the ~~50%~~collection ~~upon~~of ~~obsolescence~~such accounts receivable.

20On a long-term basis, our liquidity is dependent on continuation and expansion of our operations, receipt of revenues, and additional infusions of capital and debt financing. Our current capital and revenues are insufficient to fund such expansion. Modifications to our business plans may require additional capital for us to operate. For example, if we are unable to raise additional capital in the future we may need to curtail our number of product offers or limit our marketing efforts to the most profitable geographical areas. This may result in lower revenues and market share for us. In addition, there can be no assurance that additional capital will be available to us when needed or available on terms favorable to us.

~~Property~~Demand for our products and services will be dependent on, ~~Plant~~among other things, market acceptance of our products, the Chinese TCM in general, and ~~Equipment~~general economic conditions, which are cyclical in nature. Inasmuch as a major portion of our activities is the receipt of revenues from the sales of our products, our business operations may be adversely affected by our competitors and prolonged recessionary periods.

~~Property,~~Our ~~plant,~~success will ~~and~~be ~~equipment~~dependent ~~are~~upon ~~recorded at~~implementing ~~cost,~~our ~~less~~plan ~~accumulated~~of ~~depreciation~~operations and ~~impairment.~~the ~~Repairs~~risks ~~and~~associated ~~maintenance~~with ~~expenditures,~~our ~~which~~business ~~are~~plans. ~~not~~We ~~considered~~manage ~~improvements~~the processing and doDAR ~~not~~distribution ~~extend~~business ~~the~~to ~~useful~~retail ~~life~~consumers ~~of property, plant,~~ and ~~equipment,~~wholesale ~~are expensed as incurred~~buyers. ~~The~~We ~~cost~~plan ~~and related accumulated depreciation, applicable~~ to ~~sold~~strengthen orour noposition ~~longer~~ in ~~service~~these ~~property,~~markets ~~plant,~~ and to ~~equipment,~~expand ~~are~~our ~~eliminated~~operations ~~from~~through ~~the~~aggressively ~~accounts~~marketing ~~and~~our ~~any gain~~products orand ~~loss~~our ~~is included in the statement of operations~~concept.

~~Depreciation is calculated to write~~Off-~~off the~~Balance ~~cost~~Sheet or basis of the property, plant, and equipment over their estimated useful lives for the date on which they become fully operational and after taking into account their estimated residual values (salvage value), using the straight-line method, at the following rates per year:Arrangements

Equipment:	Straight-line for 5 to 20 years with a 0% salvage value
Building:	Straight-line for 20 years with a 5% salvage value
Useful life of land	Straight-line for 15 years with a 5% salvage value

For the three months ended March 31, 2012, we did not have any off-balance sheet arrangements.

~~We recognize an impairment loss on property,~~ITEM plant, and equipment when evidence, such as the sum of expected future cash flows (undiscounted and without interest charges), indicates that future operations will not produce sufficient revenue to cover the related future costs, including depreciation, and when the carrying amount of the asset cannot be realized through sale3. QUANTITATIVE ~~Measurement~~AND ofQUALITATIVE ~~the~~DISCLOSURES ~~impairment~~ABOUT ~~loss~~MARKET ~~is based on the fair value of the assets.~~RISK

~~FASB~~The ~~Accounting~~information to ~~Standards~~be ~~Codification~~reported under this Item is not required of smaller reporting companies.

~~(Accounting~~ITEM 4. CONTROLS ~~Standards~~AND ~~Update (“ASU”) 2009-01)~~PROCEDURES

~~In June 2009, FASB approved the FASB Accounting~~Disclosure ~~Standards~~Controls Codification (“the Codification”) as the single source of authoritative nongovernmental GAAP. All existing accounting standard documents, such as FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and ~~other~~ related literature, excluding guidance from the Securities and Exchange Commission (“SEC”), have been superseded by the Codification. All other non-grandfathered, non-SEC accounting literature not included in the Codification has become non-authoritative. The Codification did not change GAAP, but instead introduced a new structure that combines all authoritative standards into a comprehensive, topically organized online database. The Codification is effective for interim or annual periods ending after September 15, 2009, and impacts the Company’s financial statements as all future references to authoritative accounting literature will be referenced in accordance with the Codification. There have been no changes to the content of the Company’s financial statements or disclosures as a result of implementing the Codification during the quarter ended June 30, 2010.Procedures

AsWe amaintain disclosure ~~result~~controls ofand ~~the~~procedures ~~Company’s~~designed ~~implementation of~~to ~~the~~ensure ~~Codification~~that ~~during~~information ~~the~~required ~~quarter~~to ~~ended~~be ~~June~~disclosed ~~30,~~in ~~2010,~~reports ~~previous~~filed ~~references~~under tothe ~~new~~Exchange Act ~~accounting~~is ~~standards~~recorded, processed, summarized and ~~literature~~reported ~~are no~~within ~~longer~~the ~~applicable~~specified time periods. InOur ~~the~~Chief ~~current~~Executive ~~quarter~~Officer and ~~financial~~our ~~statements~~Chief Financial Officer (collectively, the ~~Company~~“Certifying ~~will~~Officers”) ~~provide~~are ~~reference~~responsible tofor ~~both~~maintaining ~~new~~our disclosure controls and procedures. The controls and procedures established by us are designed to provide reasonable assurance ~~old~~that ~~guidance~~information required to ~~assist~~be indisclosed ~~understanding~~by the ~~impacts~~issuer ofin ~~recently~~the ~~adopted~~reports ~~accounting~~that ~~literature,~~it ~~particularly~~files ~~for~~or ~~guidance~~submits ~~adopted since~~under the ~~beginning~~Exchange ofAct ~~the~~are ~~current~~recorded, processed, ~~fiscal~~summarized ~~year~~and ~~but~~reported ~~prior~~within tothe time periods specified in the ~~Codification~~Commission’s rules and forms.

~~Results of Operations for the Nine months Ended September 30, 2011~~24

~~Balance~~During the ~~Sheet~~first quarter of 2012, our Certifying Officers evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on the evaluation, the Certifying Officers concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including the Certifying Officers, as appropriate to allow timely decisions regarding required disclosure.

~~Our total assets for the nine months ended~~Changes ~~September~~in ~~30,~~Internal ~~2011~~Control ~~were~~Over USFinancial $11,732,948 compared to the nine months ended September 30, 2010 were US $3,918,587. Total liabilities increased to US $2,831,859 for the nine months ended September 30, 2011 from US $1,719,219 for the nine months ended September 30, 2010, principally due to an increase of cash and cash equivalents, accounts receivable, prepaid expenses, inventory, accounts payable, notes payable, taxes payable.Reporting

Balance Sheet	September 30, 2011		September 30, 2010
Total Assets	$	11,732,948	$	3,981,587
Total Liabilities		2,831,859		1,719,219
Net Assets	$	8,901,089	$	2,199,368

There was no change in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. We are aware that any system of controls, however well designed and operated, can only provide reasonable, and not absolute, assurance that the objectives of the system are met, and that maintenance of disclosure controls and procedures is an ongoing process that may change over time.

21PART II. OTHER INFORMATION

~~Results~~ITEM 1. LEGAL ~~of Operations~~PROCEEDINGS

Profit/Loss	For the Nine Months Ended
	September 30, 2011		September 30, 2010
Operating Income (Loss)	$	5,904,094	$	1,580,769
Net Income (Loss) Before Tax		5,903,610		1,582,791
Corp. Income Tax		1,529,139		463,585
Net Income (Loss)	$	4,374,471	$	1,119,207

None.

~~Revenues~~ITEM 1A. RISK FACTORS

~~Our revenues for the nine months ended September 30, 2011 were US $ $21,747,210, an increase of 238% over revenues of US $6,425,332 for the nine months ended September 30, 2010.~~ The ~~revenues for the three months ended September 30, 2011 were US $9,334,201, representing an increase of 219% over revenues of~~information ~~US $2,925,676 for the three months ended September 30, 2010. The increase in sales revenues was due primarily~~ to anbe ~~increase~~reported ~~in the~~under ~~volume~~this ofItem ~~sales,~~is the increase of unit sales price of Yishen capsule, and sales of other TCM received during the nine months ended September 30, 2011. Most of the revenue growth was attributable to increased volume sales in raw DAR and other TCM herbs. Our sales arrangements are not ~~subject~~required tofor ~~any~~smaller ~~warranties.~~reporting ~~In this period, TCM prices including DAR retail prices decreased slightly due to the macro TCM market condition~~companies.

~~Cost~~ITEM 2. UNREGISTERED ofSALES ~~Sales;~~OF ~~Gross~~EQUITY ~~Profit~~AND USE OF PROCEEDS

~~Cost of sales are expenses directly related to manufacturing and selling our products, including costs of raw materials purchased from farmers, product delivery and direct labor cost~~None. The cost of sales for the three months ended September 30, 2011 were US $6,747,669, representing an increase of 370% over the cost of sales of US $1,435,436 for the three months ended September 30, 2010. Our cost of sales for nine months ended September 30, 2011 was US $15,203,872, or approximately 70% of revenues, compared to US $4,288,820, or approximately 67% of revenues for the nine months ended September 30, 2010. The increased costs of sales and comparatively lower gross profit rate for the nine months ended September 30, 2011 were principally due to the costs related to the increase of sales volume. For the nine months ended September 30, 2010, rising DAR costs could not be passed on to consumers, but for the nine months ended September 30, 2011, retail DAR prices increased along with the retail prices in the TCM industry in general due to inflation. This higher retail price resulted in higher cost of goods margins. From the beginning of the year 2010, drought hit many production places of DAR, resulting in a price increase for raw DAR. Also, we had to purchase additional raw DAR due to the increased demand, and with shortage of supply in the market, the result was an increased cost of sales for the nine months ended September 30, 2011. For the first quarter of 2011, the reason we can keep our cost of goods sold for raw DAR was favorably impacted by a strengthened relationship with the local government and the DAR Association, which increased our advantage in the supply chain of DAR. The other reason is because the Company elected to make prepaid deposits to secure exclusivity of the DAR harvest from DAR farmers in larger volume.

~~Gross profit for the nine months ended September~~ITEM ~~30, 2011 increased by approximately 206% to US $6,543,338 from US $2,136,512 for the nine months ended September 30, 2010~~3. DEFAULTS ~~The gross~~UPON ~~profit~~SENIOR for the three months ended September 30, 2011 were US $2,586,532, representing an increase of 74% over gross profit of US $1,490,247 for the three months ended September 30, 2010.Gross profit margin for the nine months ended September 30, 2011 was 30% compared to 33% for the nine months ended September 30, 2010. This was primarily due to the retail prices of DAR slightly decreased due to macro TCM market condition and increased volume demand of DAR and other TCM herbs.SECURITIES

22None.

~~Operating~~ITEM 4. SUBMISSION ~~Expenses~~OF MATTERS TO A VOTE OF SECURITY HOLDERS

The operating expenses for the nine months ended September 30, 2011 were US $639,244, representing an increase of 15% over operating expenses of US $555,743 for the nine months ended September 30, 2010None. The operating expenses for the three months ended September 30, 2011 were US $166,448, representing a decrease of 58% over operating expenses of US $397,973 for the three months ended September 30, 2010.The SG&A expenses for the three months ended September 30, 2011 were US $156,479, representing an decrease of 59% over SG&A expenses of US $382,200 for the three months ended September 30, 2010. And the interest costs for the three months ended September 30, 2011 were US $9,969, representing a decrease of 37% over interest costs of US $15,772 for the three months ended September 30, 2010. The operating expenses included selling, general and administrative (“SG&A”) expense and interest cost. SG&A expenses increased overall to US $610,410 for the nine months ended September 30, 2011 compare to US $531,098 for the nine months ended September 30, 2010.The increase of SG&A is primarily due to an increase in fees and expenses producing and distributing product, which was a result of higher volume of DAR, Yishen Capsule, and other TCM sales. Selling expense for the nine months ended September 30, 2011 decreased to US $36,755 compared to US $78,228 for the nine months ended September 30, 2010. This decrease is primarily due to the change of transportation and delivery cost policy. The decrease of G&A expenses for the recent quarter is primarily due to last year’s CEO incentive plan, and some one-time expenses or expenses paid semi-annually such as Yinfa’s legal consulting fee, auditing fee, agency fee, maintenance fee. The interest cost for the nine months ended September 30, 2011 increased to US $28,834 compared to US $24,645 for the nine months ended September 30, 2010 due to an increase in the Company’s indebtedness.

~~Other~~ITEM 5. OTHER ~~Income/Expense~~INFORMATION

~~For the nine months ended September 30, 2011, we had a total Other Income of US $(484), compared to other income of US $2,022 for the nine months ended September 30, 2010~~None. The other income for the three months ended September 30, 2011 were US $(484), representing a decrease of 9576% over operating expenses of US $5 for the three months ended September 30, 2010.The decrease in total other income was due primarily to the refund of the rent and maintenance to a third party in the third quarter of 2011.

~~Impact of Inflation~~ITEM 6. EXHIBITS

~~We believe that inflation has had a significant~~(1) Exhibits: ~~effect~~Exhibits onrequired ~~operations~~to ~~for~~be ~~the~~attached ~~nine~~by ~~months~~Item ~~ended~~601 ~~September~~of ~~30,~~Regulation ~~2011.~~S-K ~~The~~are ~~inflation~~listed ~~rate~~ in the ~~Sichuan~~Index ~~Province~~to ~~has~~Exhibits ~~been~~following ~~lower than~~ the ~~average~~signature ~~national inflation rate for China. However, the beginning of the year 2010 was impacted by drought that~~page ~~hit many production places~~ of ~~DAR, resulting in a price increase for raw DAR. We believe~~ this isForm ~~a short~~10-~~term impact on inflation. Also~~Q, ~~significant~~which ~~increases in inflation throughout China have raised retail prices of DAR, and most TCM products in general. But in the third quarter of 2011, the china’s TCM market~~ is inincorporated aherein ~~relatively stable condition, and some of the TCMs appear to have a decrease in price. We also believe that we can offset any inflationary increases in the cost of sales~~ by ~~continuing to increase our sales of DAR and other TCM in response to continued demand and by improving operating efficiencies~~reference.

~~Taxes~~25

According to the Corporate Income Tax Law of China, companies without any tax abatement programs are charged at a 25% income tax rate. The income tax for the three months ended September 30, 2011 were US $608,697, an increase of 79% compare to income tax of US $340,002 for the three months ended September 30, 2010. For the nine months ended September 30, 2011, we accrued income taxes of US $1,529,139. For the nine months ended September 30, 2010, we accrued income taxes of US $463,585.SIGNATURES

~~Net~~In ~~Income~~accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

We had net income for the three months ended September 30, 2011 of US $1,810,913, an increase of 141% compared to a net income for the three months ended September 30, 2010 of US $752,270. The net income for the nine months ended September 30, 2011 were US $4,374,471, an increase of 291% compared to a net income for the nine months ended September 30, 2010 of US $1,119,207. The improvement in our net income for the nine months ended September 30, 2011 is attributable principally to increased sales revenue and a foreign currency translation gain between the RMB and U.S. dollar of US $303,555. The increased sales revenue is primary due to increased volume sales in raw DAR and other products.

	CHINA HEALTH RESOURCE, INC.


Dated: 17, 2012	By: /s/ Wang, Jiayin
	Wang, Jiayin
	Chief Executive Officer and Director
	(Principal Executive Officer)



Dated: 17, 2012	By: /s/ Liu, Weihai
	Liu, Weihai
	Chief Financial Officer and Director (Principal Financial Officer)

2326

~~We are working to strengthen our internal management~~INDEX ~~processes~~TO and to grow our sales revenues, while maintaining an efficient cost structure. However, there can be no assurance that we will achieve or maintain continuing profitability, or that revenue growth will continue in the future.EXHIBITS

Liquidity and Capital Resources

Exhibit No.	Description	Incorporated Herein by Reference to	Filed Herewith

31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		X

31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		X

32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		X
			X
101.INS	XBRL Instance Document

101.SCH	XBRL Taxonomy Extension Schema Document		X

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document		X

101.LAB	XBRL Taxonomy Extension Label Linkbase Document		X

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document		X

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document		X

Net cash flow from operating activities was US $64,416 for the nine months ended September 30, 2011, compared to net negative cash flow of US $251,921 from operating activities for the nine months ended September 30, 2010. This was due to an increase of net profit of US $4,374,471 for the nine months ended September 30, 2011 from a net income of US $1,119,207 for the nine months ended September 30, 2010. Net expenditures for inventory were US $3,882,223 for the nine months ended September 30, 2011 compared to US $1,166,089 for the nine months ended September 30, 2010. This was also due to an increase of accounts receivable outflow to US $2,026,942 for the nine months ended September 30, 2011 from an outflow of US $512,384 for the nine months ended September 30, 2010. Accounts payable and accrued liabilities increased to US $533,276 for the nine months ended September 30, 2011 from US $130,534 for the nine months ended September 30, 2010. Taxes Payable increased to US $626,112 for the nine months ended September 30, 2011 from US $509,155 for the nine months ended September 30, 2010.27

Net cash flow used in investing activities was US $12,058 for the nine months ended September 30, 2011, compared to net cash flow of US $0 from operating activities for the nine months ended September 30, 2010. This was due to a purchase of Property Plant and Equipment.

There were no net cash flows provided by or used in financing activities during the nine months ended September 30, 2011 compare to US$235,008 net cash flows used in financing activities for the nine months ended September 30, 2010.

Overall, we have funded our cash needs from inception through September 30, 2011 with a series of debt and equity transactions, primarily with related parties. If we are unable to receive additional cash from our related parties, we may need to rely on financing from outside sources through debt or equity transactions. Our related parties are under no legal obligation to provide us with capital infusions. Failure to obtain such financing could have a material adverse effect on operations and financial condition.

We had cash of US $147,632 on hand for the nine months ended September 30, 2011, an increase of US $90,306 from the beginning of the year and attributable in substantial part to an increase in cash inflow. A significant amount of cash was used to purchase inventory. Currently, we have enough capital to fund our operations because we have a sizable accounts receivable to fund operations. Our accounts receivable increased significantly in this quarter. A significant part of accounts receivable was paid off and our new accounts receivable has been added with new customers. The Company expects to receive these funds on time. But if accounts receivable cannot be collected timely, we may not be able to sustain our capital needs. Therefore, we will strengthen the management toward accounts receivable to quicken the collection of such accounts receivable.

On a long-term basis, our liquidity is dependent on continuation and expansion of our operations, receipt of revenues, and additional infusions of capital and debt financing. Our current capital and revenues are insufficient to fund such expansion. Modifications to our business plans may require additional capital for us to operate. For example, if we are unable to raise additional capital in the future we may need to curtail our number of product offers or limit our marketing efforts to the most profitable geographical areas. This may result in lower revenues and market share for us. In addition, there can be no assurance that additional capital will be available to us when needed or available on terms favorable to us.

Demand for our products and services will be dependent on, among other things, market acceptance of our products, the Chinese TCM in general, and general economic conditions, which are cyclical in nature. Inasmuch as a major portion of our activities is the receipt of revenues from the sales of our products, our business operations may be adversely affected by our competitors and prolonged recessionary periods.

Our success will be dependent upon implementing our plan of operations and the risks associated with our business plans. We manage the processing and DAR distribution business to retail consumers and wholesale buyers. We plan to strengthen our position in these markets and to expand our operations through aggressively marketing our products and our concept.

Off-Balance Sheet Arrangements

For the nine months ended September 30, 2011, we did not have any off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information to be reported under this Item is not required of smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the specified time periods. Our Chief Executive Officer and our Chief Financial Officer (collectively, the “Certifying Officers”) are responsible for maintaining our disclosure controls and procedures. The controls and procedures established by us are designed to provide reasonable assurance that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

During the third quarter of 2011, our Certifying Officers evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on the evaluation, the Certifying Officers concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including the Certifying Officers, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

The information to be reported under this Item is not required for smaller reporting companies.

ITEM 2. UNREGISTERED SALES OF EQUITY AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

(1) Exhibits: Exhibits required to be attached by Item 601 of Regulation S-K are listed in the Index to Exhibits following the signature page of this Form 10-Q, which is incorporated herein by reference.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CHINA HEALTH RESOURCE, INC.
Dated: November 15, 2011	By: /s/ Wang, Jiayin
	Wang, Jiayin
	Chief Executive Officer and Director
	(Principal Executive Officer)
Dated: November 15, 2011	By: /s/ Liu, Weihai
	Liu, Weihai
	Chief Financial Officer and Director (Principal Financial Officer)

INDEX TO EXHIBITS

Exhibit No.	Description	Incorporated Herein by Reference to	Filed Herewith
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		X
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		X
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		X
			X
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document		X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document		X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document		X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document		X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document		X

Large accelerated filer \|_\|	Accelerated filer \|_\|
Non-accelerated filer \|_\|	Smaller Reporting Company \|X\|

Filing Compare · CHINA HEALTH RESOURCE, INC.