SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[X] Quarterly report pursuant to section 13 or 15(d) of the Securities
    Exchange Act of 1934

    For the quarter period ended March 31, 2004
                                 --------------

[ ] Transition report pursuant to section 13 or 15(d) of the Securities
    Exchange Act of 1934

    For the transition period from ___________ to _____________

                        CHINA RESOURCES DEVELOPMENT, INC.
               (Exact Name of registrant as Specified in Charter)

         Nevada                          0-26046                 87-0263643
(State or other Jurisdiction      (Commission File Number)    (IRS Employer
      of incorporation)                                      Identification No.)

                     Room 2105, West Tower, Shun Tak Centre,
                  200 Connaught Road C., Sheung Wan, Hong Kong
                          Telephone: 011-852-2810-7205
                        (Address and telephone number of
                          principal executive offices)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 requirements
for the past 90 days.

                           Yes     [X]       No [ ]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 1,143,823 shares of common
stock, $0.001 par value, as of May 14, 2004.



<PAGE>

FORWARD-LOOKING STATEMENTS

      This report contains statements that constitute forward-looking
statements. Those statements appear in a number of places in this report and
include, without limitation, statements regarding the intent, belief and current
expectations of the Company, its directors or its officers with respect to the
Company's policies regarding investments, dispositions, financings, conflicts of
interest and other matters; and trends affecting the Company's financial
condition or results of operations. Any such forward-looking statement is not a
guarantee of future performance and involves risks and uncertainties, and actual
results may differ materially from those in the forward-looking statement as a
result of various factors. The accompanying information contained in this
report, including without limitation the information set forth above and the
information set forth under the heading, "Management's Discussion and Analysis
or Plan of Operation," identifies important factors that could cause such
differences. With respect to any such forward-looking statement that includes a
statement of its underlying assumptions or bases, the Company cautions that,
while it believes such assumptions or bases to be reasonable and has formed them
in good faith, assumed facts or bases almost always vary from actual results,
and the differences between assumed facts or bases and actual results can be
material depending on the circumstances. When, in any forward-looking statement,
the Company, or its management, expresses an expectation or belief as to future
results, that expectation or belief is expressed in good faith and is believed
to have a reasonable basis, but there can be no assurance that the stated
expectation or belief will result or be achieved or accomplished.

                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

               CHINA RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
                         COMPREHENSIVE LOSS (UNAUDITED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
             (Amounts in thousands, except share and per share data)

                                             Three Months Ended March 31,
                                       ---------------------------------------
                                         2004            2003           2004
                                       ---------       -------       ---------
                                          RMB            RMB            US$

NET SALES                                    417           444              50

COST OF SALES                               (231)         (444)            (28)
                                       ---------       -------       ---------
GROSS PROFIT                                 186            --              22

DEPRECIATION                                 (58)          (34)             (7)

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES                 (1,683)       (1,935)           (203)

INTEREST INCOME                               31           171               4

OTHER (EXPENSE)/INCOME, NET                  376           (56)             45
                                       ---------       -------       ---------
LOSS FROM CONTINUING
 OPERATIONS                               (1,148)       (1,854)           (139)

DISCONTINUED OPERATIONS
 Income from operations of
  discontinued supermarket
  segment and loss from
  Xubu operations                             --          (583)             --
                                       ---------       -------       ---------
NET LOSS                                  (1,148)       (2,437)           (139)
                                       ---------       -------       ---------
Other comprehensive loss:
 Foreign currency
  translation adjustments                     (4)           --              --
                                       ---------       -------       ---------
COMPREHENSIVE LOSS                        (1,152)       (2,437)           (139)
                                      ==========      ========      ==========
LOSS PER SHARE: basic and diluted
 Continuing operations                     (1.01)        (2.21)          (0.12)
 Discontinued operations                      --         (0.70)             --
                                       ---------       -------       ---------
                                           (1.01)        (2.91)          (0.12)
                                      ==========      ========      ==========
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING                 1,143,823       837,823       1,143,823
                                      ==========      ========      ==========

See notes to condensed consolidated financial statements.


                                       3
<PAGE>
               CHINA RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2004 AND DECEMBER 31, 2003
             (Amounts in thousands, except share and per share data)
<TABLE>
<CAPTION>
                                                              March 31,    December 31,        March 31,
                                                                   2004            2003             2004
                                                              ---------       ---------         --------
                                                                    RMB             RMB              US$
                                                  Notes     (Unaudited)          (Note)      (Unaudited)
<S>                                               <C>         <C>             <C>               <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                       9,718          10,472            1,174
  Trading securities                                                 54             598                7
  Trade receivables                                                 302             722               36
  Other receivables, deposits and prepayments                     1,444             182              174
  Short term loans receivable                                       742           1,060               90
  Assets held for sale                              2                --           2,088               --
                                                              ---------       ---------         --------
TOTAL CURRENT ASSETS                                             12,260          15,122            1,481
PROPERTY AND EQUIPMENT                              3             1,208           1,266              146
INVESTMENTS                                                      44,000          44,000            5,314
GOODWILL                                                          6,296           6,296              760
                                                              ---------       ---------         --------
TOTAL ASSETS                                                     63,764          66,684            7,701
                                                              =========       =========         ========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                                   74             467                9
  Other payables and accrued liabilities            4             2,070           2,641              250
  Amount due to an officer                                        1,697           1,603              205
  Current portion of capital lease                                  154             151               19
  Amounts due to related companies                                  296             296               35
  Liabilities related to assets held for sale       2                --             857               --
                                                              ---------       ---------         --------
TOTAL CURRENT LIABILITIES                                         4,291           6,015              518
Capital lease, net of current portion                               277             321               34
                                                              ---------       ---------         --------
TOTAL LIABILITIES                                                 4,568           6,336              552
                                                              ---------       ---------         --------

SHAREHOLDERS' EQUITY
  Preferred stock, authorized -
    10,000,000 shares
      Series B preferred stock, US$0.001 par value:
        Authorized - 320,000 shares
        Issued and outstanding - 320,000 shares
          in 2004 and 2003                                            3               3               --
  Common stock, US$0.001 par value:
   Authorized - 200,000,000 shares
   Issued and outstanding - 1,143,823 shares
     in 2004 and 2003                                                 9               9                1
Additional paid-in capital                                      181,681         181,681           21,942
Reserves                                                         28,028          28,028            3,385
Accumulated deficit                                           (150,677)       (149,529)         (18,198)
Accumulated other comprehensive income                              152             156               19
                                                              ---------       ---------         --------
TOTAL SHAREHOLDERS' EQUITY                                       59,196          60,348            7,149
                                                              ---------       ---------         --------

TOTAL LIABILITIES AND SHAREHOLDERS'
  EQUITY                                                         63,764          66,684            7,701
                                                              =========       =========         ========
</TABLE>

Note: The balance sheet at December 31, 2003 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by accounting principles generally accepted in the United
States of America for complete financial statements.

See notes to condensed consolidated financial statements.

                                       4
<PAGE>
               CHINA RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                             (Amounts in thousands)
<TABLE>
<CAPTION>
                                                         Three months ended March 31,
                                                        -----------------------------
                                                         2004        2003       2004
                                                        -------      -----     ------
                                                          RMB         RMB        US$
<S>                                                      <C>           <C>       <C>
Net cash (used in)/provided by operating activities      (1,031)       595       (124)
                                                        -------      -----     ------
INVESTING ACTIVITIES
  Repayment of principal of capital leases                  (41)        --         (5)
  Repayment of short term loans from third parties          318         --         38
                                                        -------      -----     ------
Net cash provided by investing activities                   277         --         33
                                                        -------      -----     ------

Net cash provided by discontinued operations                 --        350         --
                                                        -------      -----     ------

NET (DECREASE)/INCREASE IN CASH AND CASH
   EQUIVALENTS                                             (754)       945        (91)

Cash and cash equivalents, at beginning of period        10,472      2,238      1,265
                                                        -------      -----     ------
Cash and cash equivalents, at end of period               9,718      3,183      1,174
                                                        =======      =====     ======
</TABLE>

See notes to condensed consolidated financial statements.

                                       5
<PAGE>
               CHINA RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                  (Amounts in thousands, except per share data)

1.       BASIS OF PRESENTATION

         The accompanying unaudited condensed consolidated financial statements
         have been prepared in accordance with accounting principles generally
         accepted in the United States of America for interim financial
         information and with the instructions to Form 10-QSB and Item 310(b) of
         Regulation S-B. Accordingly, they do not include all of the information
         and footnotes required by accounting principles generally accepted in
         the United States of America for complete financial statements. In the
         opinion of management, all adjustments (consisting of normal recurring
         accruals) considered necessary for a fair presentation have been
         included. Operating results for the three-month period ended March 31,
         2004, are not necessarily indicative of the results that may be
         expected for the year ending December 31, 2004.

         The balance sheet at December 31, 2003 has been derived from the
         audited financial statements at that date but does not include all of
         the information and footnotes required by accounting principles
         generally accepted in the United States of America for complete
         financial statements. For further information, refer to the
         consolidated financial statements and footnotes thereto included in the
         Company's annual report on Form 10-KSB for the year ended December 31,
         2003.

         For the convenience of the reader, amounts in Renminbi ("RMB") have
         been translated into United States dollars ("US$") at the rate of
         US$1.00 = RMB8.28 quoted by the People's Bank of China as at March 31,
         2004. No representation is made that the RMB amounts could have been,
         or could be, converted into US$ at that rate.

         Certain comparative amounts have been reclassified to conform with the
         current period classifications.

2.       DISPOSITION OF ASSETS

         On February 10, 2004, the Registrant's wholly-owned subsidiary, Hainan
         Cihui Industrial Co. Ltd. ("HARC"), disposed of its 100% equity
         interest in Shenzhen Xubu Investment Co. Ltd. ("Xubu") to an
         unaffiliated third party for total consideration of RMB17,256
         (US$2,084) (the "Purchase Consideration"). The Purchase Consideration
         was offset by capital in the amount of RMB16,026 (US$1,935) that had
         been withdrawn from Xubu by HARC. The net Purchase Consideration of
         RMB1,231 (US$149) was received by the Company on May 5, 2004. The
         assets and liabilities of Xubu have been classified as held for sale as
         of December 31, 2003 and consisted of fixed assets of RMB1,102
         (US$133), cash of RMB812 (US$98), other receivables of RMB174 (US$21)
         and other payables of RMB857 (US$103). The results of operations of
         Xubu have been retroactively restated as discontinued operations.
         Revenues from discontinued Xubu operations were nil for the three
         months ended March 31, 2004 and 2003. Losses before income taxes from
         discontinued operations were nil and RMB583 (US$70) for the three
         months ended March 31, 2004 and 2003, respectively.

                                       6
<PAGE>

3. PROPERTY AND EQUIPMENT

                                                      March 31,  December 31,
                                                         2004        2003
                                                      ---------  ------------
                                                         RMB         RMB
         At cost:
           Buildings                                      509         509
           Machinery, equipment and motor vehicles      1,050       1,050
                                                       ------      ------
                                                        1,559       1,559

         Accumulated depreciation                        (351)       (293)
                                                       ------      ------
                                                        1,208       1,266
                                                       ======      ======

         As at March 31, 2004, property and equipment included a leased motor
         vehicle with cost and accumulated depreciation of RMB959 (US$116) and
         RMB194 (US$23), respectively.

4.       OTHER PAYABLES AND ACCRUED LIABILITIES

                                                      March 31,  December 31,
                                                         2004        2003
                                                      ---------  ------------
                                                         RMB         RMB

         Other payables                                 1,557       1,668
         Accrued liabilities                              513         973
                                                        -----       -----
                                                        2,070       2,641
                                                        =====       =====

5.       TRADING SECURITIES

         Included in other income/(expenses) for the three months ended March
         31, 2004 and 2003 are unrealized losses on trading securities of nil
         and RMB151 (US$18), respectively.

                                       7
<PAGE>

6. SEGMENT FINANCIAL INFORMATION

                                                      Three months ended
                                                           March 31,
                                                      ------------------
                                                       2004        2003
                                                      ------      ------
                                                       RMB         RMB
         Net sales:
            Advertising:
              Net sales to unaffiliated customers        417          --
            Copper:
              Net sales to unaffiliated customers         --         444
                                                      ------      ------
         Total consolidated net sales                    417         444
                                                      ======      ======

         Segment profit:
            Advertising                                  154          --
            Copper                                        --          --
                                                      ------      ------
         Total segment profit                            154          --

         Reconciling items:
            Corporate expenses                        (1,333)     (2,025)
            Interest income                               31         171
                                                      ------      ------
         Total consolidated loss from
            continuing operations                     (1,148)     (1,854)
                                                      ======      ======

                                                     March 31,  December 31,
                                                       2004       2003
                                                      ------     ------
                                                       RMB        RMB
         Segment assets:
            Advertising                                  407         779
            Copper                                     2,046         942
                                                      ------      ------
         Total segment assets                          2,453       1,721

         Reconciling items:
            Corporate assets                          17,311      20,963
            Investments                               44,000      44,000
                                                      ------      ------
         Total consolidated assets                    63,764      66,684
                                                      ======      ======

                                       8
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

         NET SALES AND GROSS PROFIT

         Sales for the three months ended March 31, 2003 represented trading of
copper of RMB444,000 (US$54,000) with zero gross profit margin. Sales for the
three months ended March 31, 2004 represented revenues from advertising and
public relations services of RMB417,000 (US$50,000) with gross profit margin of
45%. Net sales from supermarket operations included in discontinued operations
totaled RMB1,758,000 (US$212,000) for the three months ended March 31, 2003.
Profit from discontinued supermarket operations was reported net of income tax
expense, if any.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

         Selling, general and administrative expenses decreased by RMB252,000
(US$30,000) or 13% to RMB1,683,000 (US$203,000) for the three months ended March
31, 2004 from RMB1,935,000 (US$234,000) for the three months ended March 31,
2003. The decrease was primarily attributable to the write off of VAT
receivables of RMB389,000 (US$47,000) in the first quarter of 2003.

         INTEREST INCOME, NET

         Interest income decreased by RMB140,000 (US$17,000) or 82% to RMB31,000
(US$4,000) for the three months ended March 31, 2004 from RMB171,000 (US$21,000)
for the three months ended March 31, 2003. The decrease was primarily due to the
decrease in short term loans to unaffiliated third parties.

         OTHER (EXPENSE)/INCOME, NET

         Other (expense)/income, net for the three months ended March 31, 2003
and 2004 primarily consisted of a net gain/(loss) on trading of marketable
securities of (RMB59,000) (US$7,000) and RMB376,000 (US$46,000), respectively.

         INCOME TAXES

         It is management's intention to reinvest all income attributable to the
Company earned by its operations outside the US. Accordingly, no US corporation
income taxes are included in these consolidated financial statements.

         Under the current laws of the BVI, dividends and capital gains arising
from the Company's investments in the BVI are not subject to income taxes and no
withholding tax is imposed on payments of dividends to the Company.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's primary liquidity needs are to fund operating expenses
and to expand business operations. The Company has financed its working capital
requirements primarily through internally generated cash.

         Net cash used in operating activities for the three months ended March
31, 2004 was approximately RMB1,031,000 (US$124,000), as compared to net cash
provided by operating activities of RMB595,000 (US$72,000) for the corresponding
period in 2003. Net cash inflows/outflows from the Company's operating
activities are attributable to the Company's net loss and changes in operating
assets and liabilities. Net cash provided by investing activities for the three
months ended March 31, 2004 was primarily attributable to repayments of short
term loans from third parties.

                                       9
<PAGE>

         The following summarizes the Company's financial condition and
liquidity at the dates indicated:

                                   March 31, 2004           December 31, 2003
                                   --------------           -----------------

Current ratio                                2.8x                        2.5x
Working capital                         7,969,000                   9,107,000
Ratio of long-term debt to
   total shareholders' equity               0.05x                       0.05x

         The Company has the following contractual obligations and commercial
commitments as at March 31, 2004:

                         Total            < 1 year          2-5 years
                         -----            --------          ---------

Operating leases        56,000              48,000              8,000
Capital lease          431,000             154,000            277,000

         Except as disclosed above, there have been no other significant changes
in financial condition and liquidity since the fiscal year ended December 31,
2003. The Company believes that internally generated funds will be sufficient to
satisfy its anticipated working capital needs for at least the next twelve
months.

OFF BALANCE SHEET ARRANGEMENTS

         The Company has no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
investors.

FACTORS RELATING TO FORWARD-LOOKING STATEMENTS

         Factors that could cause our actual results of operations to differ
materially from those contained in forward looking statements include the
following:

RISKS ASSOCIATED WITH FOREIGN OPERATIONS

o        Our principal subsidiaries operate in the People's Republic of China,
         and are, by law, subject to administrative review by various national,
         provincial and local agencies of the Chinese government - governmental
         oversight and/or changes to existing rules and regulations could
         adversely affect our results of operations.

o        The Company's operations and financial results could be adversely
         affected by economic conditions and changes in the policies of the PRC
         government, such as changes in laws and regulations (or the
         interpretation thereof), including measures which may be introduced to
         regulate or stimulate the rate of economic growth. There can be no
         assurance that these measures will be successful.

o        The PRC does not have a comprehensive system of laws and enforcement of
         existing laws may be uncertain and sporadic, and the implementation and
         interpretation thereof inconsistent. Even where adequate law exists in
         the PRC, it may be difficult to obtain swift and equitable enforcement
         of such law, or to obtain enforcement of a judgment by a court of
         another jurisdiction. Decided legal cases are without binding legal
         effect, although judges are often guided by prior decisions. The
         interpretation of PRC laws may be subject to policy changes reflecting
         domestic political changes, and new laws, changes to existing laws and
         the pre-emption of local regulations by national laws may adversely
         affect foreign investors. The activities of the Company's subsidiaries
         in China are subject to PRC regulations governing PRC companies. In
         particular, the realization of the Company's future plans in China will
         also be subject to PRC government approvals.

o        The Company's revenues and expenses are mainly denominated in HK$ and
         US$. The Company and its subsidiaries do not have material market risk
         with respect to currency fluctuation as HK$ is linked to US$. As the
         reporting currency of the Company's consolidated financial statements
         is in RMB, translation difference may arise on consolidation. The
         Company may also suffer exchange loss when it converts RMB to other
         currencies, such as the Hong Kong Dollar or United States Dollar.

                                       10
<PAGE>

o        The Company's interest income is sensitive to changes in the general
         level of HK$ and US$ interest rates. In this regard, changes in HK$ and
         US$ interest rates affect the interest earned on the Company's cash
         equivalents. At March 31, 2004, the Company's cash equivalents are
         primarily HK$ or US$ deposits with financial institutions, bearing
         market interest rates without fixed term.

o        While we are a Nevada corporation, our officers and directors are
         non-residents of the United States, our assets are located in the PRC
         and our operations are conducted in the PRC; therefore, it may not be
         possible to effect service of process on such persons in the United
         States, and it may be difficult to enforce any judgments rendered
         against us or them.

GENERAL RISKS OF OPERATIONS

o        Unless we are able to reduce expenses, increase our profit margins
         and/or acquire profitable operations, we will likely continue to incur
         losses and investors in our shares may be unable to recoup their
         investment.

o        We intend to investigate and evaluate potential investment
         opportunities, including acquisition candidates; however, we may be
         unable to acquire business operations that prove to be profitable; we
         will continue to incur administrative and professional expenses in
         connection with our evaluation and acquisition of business operations,
         without corresponding revenues from those operations prior to
         acquisition.

o        At March 31, 2004, the Company had short-term investments in trading
         securities in the Hong Kong stock market with a total market value of
         RMB54,000 (US$7,000). These investments expose the Company to market
         risks that may cause the future value of these investments to be lower
         than the original cost of such investments.

o        The market for our Common Stock is not active and the limited trading
         volume in our shares could result in substantial market volatility in
         the price for our shares.

o        We do not intend to pay dividends for the foreseeable future - we
         intend to reinvest earnings from operations, if any, back into our
         operations. The payment of dividends is subject to numerous
         restrictions imposed under PRC law.

                                       11
<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

         On May 14, 2004, the Company's management concluded its evaluation of
the effectiveness of the design and operation of the Company's disclosure
controls and procedures. Disclosure controls and procedures are controls and
procedures designed to reasonably assure that information required to be
disclosed in our reports filed under the Securities Exchange Act of 1934, such
as this Annual Report, is recorded, processed, summarized and reported within
the time periods prescribed by SEC rules and regulations, and to reasonably
assure that such information is accumulated and communicated to our management,
including the Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure.

         The Company's management, including the Chief Executive Officer and
Chief Financial Officer, does not expect that our disclosure controls and
procedures will prevent all error and all fraud. A control system, no matter how
well designed and operated, can provide only reasonable, not absolute, assurance
that the control system's objectives will be met. Further, the design of a
control system must reflect the fact that there are resource constraints, and
the benefits of controls must be considered relative to their costs. Because of
the inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, have been detected. These inherent limitations include the realities that
judgments in decision-making can be faulty, and that breakdowns can occur
because of simple error or mistake. The design of any system of controls is
based in part upon certain assumptions about the likelihood of future events,
and there can be no assurance that any design will succeed in achieving its
stated goals under all potential future conditions.

         As of the evaluation date, the Company's Chief Executive Officer and
its Chief Financial Officer concluded that the Company maintains disclosure
controls and procedures that are effective in providing reasonable assurance
that information required to be disclosed in the Company's reports under the
Exchange Act is recorded, processed, summarized and reported within the time
periods prescribed by SEC rules and regulations, and that such information is
accumulated and communicated to the Company's management, including its Chief
Executive Officer and its Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure.

         There have been no significant changes in the Company's internal
controls or in other factors that could significantly affect these controls
subsequent to the evaluation date.

                                       12
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS:

         On June 17, 2003, Billion Luck Company Limited, initiated a lawsuit in
the High Court of the Hong Kong Special Administrative Region, Court of First
Instance (the "High Court"), under the caption "Billion Luck Company Limited and
Lee Kwong Yin." Billion Luck sought to recover approximately RMB2,667,000
(US$322,085), plus interest at the rate of 10% from May 27, 2003, arising out of
the defendant's default under a loan agreement and related promissory note in
favor of Billion Luck. The defendant failed to file a defense to the action and
Billion Luck sought a judgment by default. On August 12, 2003, the High Court
adjudged that the defendant pay to Billion Luck approximately US$322,085 due to
the defendant's default under the loan agreement and promissory note. On
November 12, 2003, a bankruptcy petition against Lee Kwong Yin was filed with
the High Court based on his failure to satisfy a Statutory Demand served upon
him on August 27, 2003. On March 1, 2004, the High Court ordered that a
bankruptcy order be granted against Lee Kwong Yin. The Company is unable to
predict whether it will be able to collect upon the award of the Court.

ITEM 2.  CHANGES IN SECURITIES:

         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 AND REPORTS ON FORM 8-K:

10.1     Purchase and Sale Agreement dated February 10, 2004 between HARC and
         Su Wei Min re: disposition of Shenzhen Xubu Investment Co., Ltd.(1)

10.2     Purchase and Sale Agreement dated February 10, 2004 between Li Fei Lie
         and Su Wei Min re: disposition of Shenzhen Xubu Investment Co. Ltd.(2)

31.1     CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
         of 2002.

31.2     CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
         of 2002.

32.1     CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
         of 2002.

32.2     CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
         of 2002.

-----------------
(1)      Incorporated by reference to Exhibit 10.18 to the registrant's Current
         Report on Form 8-K filed February 25, 2004.
(2)      Incorporated by reference to Exhibit 10.19 to the registrant's Current
         Report on Form 8-K filed February 25, 2004.

         During the three months ended March 31, 2004, the Company filed one
current report on Form 8-K on February 10, 2004, to report, under Item 2, the
disposal of the 100% equity interest in Xubu for net consideration of
Rmb1,230,090 (US$148,562) and, under Item 7, pro forma financial information
required by Regulation S-X.

                                       13
<PAGE>

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                    CHINA RESOURCES DEVELOPMENT, INC.





May 14, 2004                        By:/s/ Ching Lung Po
                                       --------------------------------------
                                       Ching Lung Po, Chief Executive Officer



                                    By:/s/ Tam Cheuk Ho
                                       -------------------------------------
                                       Tam Cheuk Ho, Chief Financial Officer

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