SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549




                                   FORM 10-Q/A




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

         For the quarter period ended September 30, 2001
                                      ------------------

[ ]      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                 87-02623643
(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: 837,823 shares of common stock,
$0.001 par value, as of November 14, 2001.



<PAGE>

                                   CONVENTIONS

         Unless otherwise specified, all references in this report to "U.S.
Dollars," "Dollars," "US$," or "$" are to United States dollars; all references
to "Hong Kong Dollars" or "HK$" are to Hong Kong dollars; and all references to
"Renminbi" or "RMB" or "Yuan" are to Renminbi Yuan, which is the lawful currency
of the People's Republic of China ("China" or "PRC"). The Company and Billion
Luck maintain their accounts in U.S. Dollars and Hong Kong Dollars,
respectively. HARC and its subsidiaries maintain their accounts in Renminbi. The
financial statements of the Company and its subsidiaries are prepared in
Renminbi. Translations of amounts from Renminbi to U.S. Dollars and from Hong
Kong Dollars to U.S. Dollars are for the convenience of the reader. Unless
otherwise indicated, any translations from Renminbi to U.S. Dollars or from U.S.
Dollars to Renminbi have been made at the single rate of exchange as quoted by
the People's Bank of China (the "PBOC Rate") on September 30, 2001, which was
approximately U.S.$1.00 = Rmb8.28. Translations from Hong Kong Dollars to U.S.
Dollars have been made at the single rate of exchange as quoted by the Hongkong
and Shanghai Banking Corporation Limited on September 30, 2001, which was
approximately US$1.00 = HK$7.80. The Renminbi is not freely convertible into
foreign currencies and the quotation of exchange rates does not imply
convertibility of Renminbi into U.S. Dollars or other currencies. All foreign
exchange transactions take place either through the Bank of China or other banks
authorized to buy and sell foreign currencies at the exchange rates quoted by
the People's Bank of China. No representation is made that the Renminbi or U.S.
Dollar amounts referred to herein could have been or could be converted into
U.S. Dollars or Renminbi, as the case may be, at the PBOC Rate or at all.

         References to "Billion Luck" are to Billion Luck Company Ltd., a
British Virgin Islands company, which is a wholly-owned subsidiary of the
Company.

         References to "Company" are to China Resources Development, Inc., and
include, unless the context requires otherwise, the operations of its
subsidiaries (all as hereinafter defined).

         References to "Farming Bureau" are to the Hainan Agricultural
Reclamation General Company, a division of the Ministry of Agriculture, the PRC
government agency responsible for matters relating to agriculture.

         References to "Hainan" are to Hainan Province of the PRC.

         References to "HARC" are to Hainan Zhongwei Agricultural Resources
Company Limited, a company organized in the PRC, whose capital is owned 95% by
Billion Luck and 5% by the Company.

         References to the "PRC" or "China" include all territory claimed by or
under the control of the Central Government, except Hong Kong, Macau, and
Taiwan.



                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

               CHINA RESOURCES DEVELOPMENT, INC., AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
     FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
             (Amounts in thousands, except share and per share data)
<TABLE>
<CAPTION>

                                    Three Months Ended September 30    Nine Months Ended September 30
                                    -------------------------------    -------------------------------
                                      2001        2000       2001        2001       2000         2001
                                    --------    --------   --------    --------   --------    --------
                                      RMB          RMB         US$        RMB        RMB          US$
<S>                                    <C>         <C>          <C>       <C>        <C>         <C>
NET SALES                              2,750       1,445        332       8,777      3,876       1,060

COST OF SALES                         (2,483)     (1,135)      (300)     (7,831)    (3,146)       (946)
                                    --------    --------   --------    --------   --------    --------
GROSS PROFIT                             267         310         32         946        730         114

DEPRECIATION                            (249)       (234)       (30)       (654)      (785)        (79)

AMORTIZATION                          (1,550)     (1,337)      (187)     (5,078)    (1,337)       (613)

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES             (4,007)     (4,408)      (484)    (12,128)   (12,491)     (1,465)

FINANCIAL INCOME/
  (EXPENSES), NET                        308      (3,088)        37         856        619         103

OTHER INCOME/(EXPENSES), NET          (1,003)       (136)      (121)     (7,188)    10,392        (868)
                                    --------    --------   --------    --------   --------    --------
LOSS FROM CONTINUING
  OPERATIONS BEFORE INCOME
  TAXES                               (6,234)     (8,893)      (753)    (23,246)    (2,872)     (2,808)

INCOME TAXES                              --         (79)        --      (1,262)    (1,849)       (152)
                                    --------    --------   --------    --------   --------    --------
LOSS FROM CONTINUING
  OPERATIONS BEFORE
  MINORITY INTERESTS                  (6,234)     (8,972)      (753)    (24,508)    (4,721)     (2,960)

MINORITY INTERESTS                        --         191         --       1,198     (3,704)        145
                                    --------    --------   --------    --------   --------    --------
LOSS FROM CONTINUING
  OPERATIONS                          (6,234)     (8,781)      (753)    (23,310)    (8,425)     (2,815)

DISCONTINUED OPERATIONS
  Loss on continuing operations of
  discontinued timber segment             --         (32)        --         (24)      (435)         (3)
                                    --------    --------   --------    --------   --------    --------
NET LOSS                              (6,234)     (8,813)      (753)    (23,334)    (8,860)     (2,818)
                                    ========    ========   ========    ========   ========    ========
BASIC AND DILUTED LOSS
  PER SHARE
    Continuing operations              (7.44)     (10.86)     (0.90)     (27.82)    (12.66)      (3.36)
    Discontinued operations               --       (0.04)        --       (0.03)     (0.66)         --
                                    --------    --------   --------    --------   --------    --------
NET LOSS PER SHARE
 - BASIC AND DILUTED                   (7.44)     (10.90)     (0.90)     (27.85)    (13.32)      (3.36)
                                    ========    ========   ========    ========   ========    ========
WEIGHTED AVERAGE NUMBER
    OF SHARES OUTSTANDING            837,797     808,516    837,797     837,797    665,296     837,797
                                    ========    ========   ========    ========   ========    ========
</TABLE>

See notes to condensed consolidated financial statements.


                                       3
<PAGE>


               CHINA RESOURCES DEVELOPMENT, INC., AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                 AS OF SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
             (Amounts in thousands, except share and per share data)
<TABLE>
<CAPTION>

                                                                   September 30,      December 31,      September 30,
                                                                       2001               2000               2001
                                                                        RMB                RMB                US$
                                                       Notes        (Unaudited)           (Note)          (Unaudited)
<S>                                                       <C>            <C>               <C>                   <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                             13,173             37,546              1,591
  Marketable securities                                   3              3,239             62,384                391
  Inventories - finished goods                                             597                598                 72
  Other receivables, deposits and prepayments                           10,623             10,585              1,283
  Short term loans receivable                             4             20,140                 --              2,432
  Amount due from Farming Bureau                                            --             13,509                 --
  Amounts due from related companies                                       636                636                 77
  Income taxes recoverable                                                 175                225                 21
  Net assets of discontinued operations                   2                 --              2,388                 --
                                                                      --------           --------           --------
TOTAL CURRENT ASSETS                                                    48,583            127,871              5,867
PROPERTY AND EQUIPMENT                                    5              6,917              9,044                835
PROPERTY, PLANT AND EQUIPMENT OF
  DISCONTINUED OPERATIONS                                 2                 --              4,260                 --
INVESTMENTS                                                            109,615            184,374             13,239
INTANGIBLE ASSETS                                                        4,486              7,860                542
                                                                      --------           --------           --------
TOTAL ASSETS                                                           169,601            333,409             20,483
                                                                      ========           ========           ========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                                         262                269                 31
  Other payables and accrued liabilities                  6              9,430             16,477              1,139
  Margin loan payable                                     7                 --             18,572                 --
  Due to investment adviser                                             12,253             12,253              1,480
  Amount due to Farming Bureau                                             617                 --                 75
  Amounts due to related companies                                         666                666                 80
                                                                      --------           --------           --------
TOTAL CURRENT LIABILITIES                                               23,228             48,237              2,805

MINORITY INTERESTS                                                          --            115,480                 --
                                                                      --------           --------           --------
TOTAL LIABILITIES AND MINORITY INTERESTS                                23,228            163,717              2,805
                                                                      --------           --------           --------

SHAREHOLDERS' EQUITY Common stock, US$0.001 par value:
   Authorized - 200,000,000  shares in 2001 and 2000
   Issued and  outstanding - 837,797  shares in 2001
     and 2000                                                                7                  7                  1
  Preferred stock, authorized -
    10,000,000 shares in 2001 and 2000
      Series B preferred stock, US$0.001 par value:
        Authorized - 320,000 shares in 2001 and 2000
        Issued and outstanding - 320,000 shares
          in 2001 and 2000                                                   3                  3                 --
Additional paid-in capital                                             169,052            169,052             20,417
Reserves                                                                28,028             28,028              3,385
Accumulated deficits                                                   (50,750)           (27,416)            (6,129)
Accumulated other comprehensive income                                      33                 18                  4
                                                                      --------           --------           --------
TOTAL SHAREHOLDERS' EQUITY                                             146,373            169,692             17,678
                                                                      --------           --------           --------

TOTAL LIABILITIES AND SHAREHOLDERS'
  EQUITY                                                               169,601            333,409             20,483
                                                                      ========           ========           ========
</TABLE>

Note: The balance sheet at December 31, 2000 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.

See notes to condensed consolidated financial statements.


                                        4
<PAGE>



               CHINA RESOURCES DEVELOPMENT, INC., AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
                             (Amounts in thousands)

<TABLE>
<CAPTION>

                                                                                                  Accumulated
                                          Series B      Additional                                   other
                             Common       preferred      paid-in                   Accumulated    comprehensive
                              stock         stock        capital      Reserves       deficits        income        Total
                               RMB           RMB           RMB           RMB           RMB            RMB           RMB
<S>                           <C>            <C>         <C>            <C>          <C>                 <C>      <C>
Balance at January
   1, 2001                         7              3       169,052        28,028       (27,416)            18       169,692

Net loss                          --             --            --            --       (23,334)            --       (23,334)
Currency translation
  adjustments                     --             --            --            --            --             15            15
                                                                                                                  --------
Comprehensive loss                                                                                                 (23,319)
                                                                                                                  --------

                            --------       --------      --------      --------      --------       --------      --------
Balance at September
   30, 2001                        7              3       169,052        28,028       (50,750)            33       146,373
                            ========       ========      ========      ========      ========       ========      ========
</TABLE>

See notes to condensed consolidated financial statements.


                                       5
<PAGE>

               CHINA RESOURCES DEVELOPMENT, INC., AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                             (Amounts in thousands)
<TABLE>
<CAPTION>

                                                      Nine months ended September 30,
                                                      -------------------------------
                                                         2001      2000       2001
                                                       -------    -------    -------
                                                         RMB        RMB        US$
<S>                                                    <C>         <C>        <C>
Net cash provided by/(used in) operating activities    (29,957)    46,898     (3,618)

INVESTING ACTIVITIES
  Purchases of property and equipment                     (123)    (2,739)       (15)
  Proceeds from disposal of investments                 59,145        928      7,143
  Proceeds from disposal of property and equipment          --      1,547         --
  Acquisition of additional interest in a subsidiary   (36,478)        --     (4,405)
  Advances of short term loans to third parties        (20,140)        --     (2,433)
                                                       -------    -------    -------
Net cash provided by/(used in) investing activities      2,404       (264)       290
                                                       -------    -------    -------

FINANCING ACTIVITIES
  Advance of short term loan from a third party          3,180         --        384
  Reduction in minority interests                           --     (3,075)        --
                                                       -------    -------    -------
Net cash provided by/(used in) financing activities      3,180     (3,075)       384
                                                       -------    -------    -------

Net cash provided by/(used in) continuing operations   (24,373)    43,559     (2,944)
Net cash used in discontinued operations                    --       (115)        --
                                                       -------    -------    -------
NET INCREASE/(DECREASE) IN CASH AND CASH
   EQUIVALENTS                                         (24,373)    43,444     (2,944)

Cash and cash equivalents, at beginning of period       37,546     38,138      4,535
                                                       -------    -------    -------
Cash and cash equivalents, at end of period             13,173     81,582      1,591
                                                       =======    =======    =======
</TABLE>


See notes to condensed consolidated financial statements.


                                       6
<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 generally accepted accounting
         principles for interim financial information and with the instructions
         to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
         include all of the information and footnotes required by generally
         accepted accounting principles 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 months and nine months
         period ended September 30, 2001, are not necessarily indicative of the
         results that may be expected for the year ending December 31, 2001.

         The balance sheet at December 31, 2000 has been derived from the
         audited financial statements at that date but does not include all of
         the information and footnotes required by generally accepted accounting
         principles 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-K for the year ended
         December 31, 2000.

2.       ACQUISITION AND DISPOSITION OF ASSETS

         On April 30, 2001, the Company's wholly-owned subsidiary, Billion Luck,
         through its nominees, acquired a 39% equity interest in its 61%-owned
         subsidiary, HARC, from the Farming Bureau, for a total consideration of
         RMB129,405 (US$15,629) (the "Purchase Consideration") comprised of
         cash, amount due from Farming Bureau and the Company's interest in
         certain assets described below. Following the acquisition, HARC became
         an indirect wholly-owned subsidiary of the Company. Concurrent with the
         acquisition, HARC entered into several agreements with the Farming
         Bureau to dispose of certain assets, including 24,877,008 shares of
         Hainan Sundiro Motorcycle Co. Ltd., a 13% equity interest in Xilian
         Timber Mill and a 58% equity interest in Hainan Weilin Timber Limited
         Liability Company ("Hainan Weilin"), valued in the aggregate at
         RMB78,800 (US$9,517). The Company ceased timber processing operations
         following disposition of its 58% interest in Hainan Weilin. The Company
         recognized a loss of RMB16,001 (US$1,932) from the above acquisition
         and disposition of assets.

         Net sales of the timber processing operations included in discontinued
         operations totaled RMB1,282 (US$155) and nil for the nine months ended
         September 30, 2000 and 2001, respectively. Loss from discontinued
         operations of timber processing operations of RMB750 (US$91) and RMB41
         (US$5) for the nine months ended September 30, 2000 and 2001,
         respectively, is reported without set-off of any income tax expenses.



                                       7
<PAGE>


         The net assets of the timber processing operations were as follows:

                                                                    December 31,
                                                                           2000
                                                                            RMB

         Current assets                                                   3,043
         Current liabilities                                               (655)
                                                                        -------
         Net current assets of discontinued operations                    2,388
         Property, plant and equipment of discontinued
           operations                                                     4,260
                                                                        -------
         Net assets of discontinued operations                            6,648
                                                                        =======


3.       MARKETABLE SECURITIES

                                                     September 30,  December 31,
                                                              2001        2000
                                                               RMB         RMB

         Trading securities listed on the Hong Kong
           Stock Exchange
             At cost                                         3,748      78,798
             Less: unrealized losses                        (2,614)    (16,414)
                                                           -------     -------
         Fair value                                          1,134      62,384
                                                           -------     -------
         Trading securities listed on the United States
           Stock Exchange
             At cost                                         2,480           -
             Less: unrealized losses                          (375)          -
                                                           -------     -------
         Fair value                                          2,105           -
                                                           -------     -------

                                                             3,239      62,384
                                                           =======     =======

4.       SHORT TERM LOANS RECEIVABLE
         During 2001, the Company advanced short term loans to three
         unaffiliated third parties of RMB5,300, RMB8,480 and RMB6,360 at annual
         interest rates of 8%, 12% and Hong Kong prime lending rate (6% at
         September 30, 2001) plus 2%, respectively. These loans receivable are
         due at various dates through January 2, 2002.


                                       8
<PAGE>



5.       PROPERTY AND EQUIPMENT, NET

                                                   September 30,   December 31,
                                                            2001           2000
                                                             RMB            RMB

         At cost:
           Buildings and leasehold improvements            3,274          4,843
           Machinery, equipment and motor vehicles         4,732          6,336
                                                         -------        -------
                                                           8,006         11,179

         Accumulated depreciation:                        (1,089)        (2,135)
                                                         -------        -------
         Net book value                                    6,917          9,044
                                                         =======        =======

6.       OTHER PAYABLES AND ACCRUED LIABILITIES

                                                   September 30,   December 31,
                                                            2001           2000
                                                             RMB            RMB

         Other payables                                    6,457         10,607
         Accrued liabilities                               2,973          2,688
         Call options written, at fair value
           (premium received RMB3,182)                         -          3,182
                                                         -------        -------
                                                           9,430         16,477
                                                         =======        =======

         During 2001, the Company repaid a RMB6,890 advance from an unaffiliated
         third party and obtained a new advance from another unaffiliated third
         party in the amount of RMB3,180. The RMB3,180 advance is due upon
         demand and bears interest at an annual interest rate of Hong Kong prime
         lending rate (6% at September 30, 2001) plus 2%.

7.       MARGIN LOAN PAYABLE

         The Company had a margin loan payable balance of RMB18,572 as of
         December 31, 2000 which was used to purchase marketable securities
         listed on the Hong Kong Stock Exchange. The margin loan was repaid as
         the securities were sold in the first quarter of 2001.


                                       9
<PAGE>


8.       SEGMENT FINANCIAL INFORMATION
<TABLE>
<CAPTION>

                                                              Three months ended      Nine months ended
                                                                  September 30,          September 30,
                                                                2001        2000       2001        2000
                                                                 RMB         RMB        RMB         RMB
<S>                                                            <C>         <C>        <C>         <C>
         Net sales to external customers:
         Supermarket operations, net sales to
           unaffiliated customers                              1,860       1,445      4,702       3,876
         Natural rubber, net sales to
           unaffiliated customers                                890           -      4,075           -
                                                             -------     -------    --------    -------
         Consolidated net sales from
           continuing operations                               2,750       1,445      8,777       3,876
                                                             =======     =======     ======     =======

         Segment profit/(loss):
           Supermarket operations                                121          71        335          18
           Natural rubber                                       (681)          -     (1,699)          -
                                                             -------     -------    --------    -------
         Total segment income/(loss)                            (560)         71     (1,364)         18

         Reconciling items:
           Corporate expenses                                 (4,952)     (5,709)   (32,186)    (13,828)
           Gain/(loss) on trading of marketable
              securities                                      (1,030)       (168)     6,268      10,318
           Premium earned on written call options                  -           -      3,180           -
           Interest income                                       379         227      1,156       4,800
           Interest expense                                      (71)          -       (300)          -
           Exchange losses, net                                    -     (3,314)          -      (4,180)
                                                             -------     -------    --------    -------
         Consolidated loss from continuing
           operations before income taxes                     (6,234)     (8,893)   (23,246)     (2,872)
                                                             =======     =======    =======     =======

                                                                    September 30,         December 31,
                                                                             2001                 2000
                                                                              RMB                  RMB
         Segment assets:
           Supermarket operations                                          6,763                  6,416
           Natural rubber                                                  5,723                 62,812
                                                                         -------                -------
         Total segment assets                                             12,486                 69,228

         Reconciling items:
            Corporate assets                                              47,500                 79,807
            Investments                                                  109,615                184,374
                                                                         -------                -------
         Total consolidated assets                                       169,601                333,409
                                                                         =======                =======
</TABLE>

         The natural rubber segment's assets decreased by more than RMB57,089 at
         September 30, 2001 as compared to the amount at December 31, 2000
         because the natural rubber segment exchanged certain of its assets as
         part of the consideration for the additional 39% interest in HARC
         acquired by the Company in the second quarter of 2001 (see Note 2).


                                       10
<PAGE>


         The processed timber segment which was reported in the Company's annual
         report on Form 10-K for the year ended December 31, 2000 was
         discontinued in the second quarter of 2001, as a result of the disposal
         of Hainan Weilin as detailed in Note 2.

9.       IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

         In June 2001, the Financial Accounting Standards Board issued
         Statements of Financial Accounting Standards No. 141, Business
         Combinations, and No. 142, Goodwill and Other Intangible Assets,
         effective for fiscal years beginning after December 15, 2001. Under the
         new rules, goodwill and intangible assets deemed to have indefinite
         lives will no longer be amortized but will be subject to annual
         impairment tests in accordance with the Statements. Other intangible
         assets will continue to be amortized over their useful lives.

         The Company will apply the new rules on accounting for goodwill and
         other intangible assets beginning in the first quarter of 2002.
         Application of the nonamortization provisions of the Statement is
         expected to result in an increase in net income of RMB3.4 million
         (RMB4.10 per share) per year. During 2002, the Company will perform the
         first of the required impairment tests of goodwill and indefinite lived
         intangible assets as of January 1, 2002 and has not yet determined what
         the effect of these tests will have on the earnings and financial
         position of the Company.

10.      COMPREHENSIVE LOSS

                                       Three months ended     Nine months ended
                                          September 30,         September 30,
                                        2001        2000      2001        2000
                                         RMB         RMB      RMB         RMB

         Total comprehensive loss     (6,234)     (8,813)   (23,319)     (8,849)
                                      ======      ======     ======       =====


                                       11
<PAGE>



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
        RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

         The following table shows the selected unaudited condensed consolidated
income statement data of the Company and its subsidiaries for the three months
and nine months ended September 30, 2001 and 2000. The data should be read in
conjunction with the unaudited Condensed Consolidated Financial Statements of
the Company and related notes thereto.

         The discussions below are presented in the Company's primary operating
currency, which is the Renminbi Yuan ("RMB"). For information purposes only, the
amounts may be translated into U.S. dollars at an exchange rate of $1.00 =
RMB8.28, which represents the approximate single rate of exchange as quoted by
the People's Bank of China on September 30, 2001. No representation is made that
RMB amounts could have been, or could be, converted into U.S. dollars at that
rate or any other rate.
                                          Three months          Nine months
(Amounts in thousands)                ended September 30,   ended September 30,
                                     --------------------  ---------------------
                                       2001       2000       2001       2000
                                       RMB        RMB        RMB        RMB
                                     -------    -------    -------    -------
Net sales:
   Supermarket operations              1,860      1,445      4,702      3,876
   Natural rubber                        890         --      4,075         --
                                     -------    -------    -------    -------
                                       2,750      1,445      8,777      3,876
                                     -------    -------    -------    -------
Gross profit                             267        310        946        730
Gross profit margin (%)                 9.71      21.45      10.78      18.83
Loss from continuing operations
  before income taxes                 (6,234)    (8,893)   (23,246)    (2,872)
Income taxes                              --        (79)    (1,262)    (1,849)
                                     -------    -------    -------    -------
Loss from continuing operations
  before minority interests           (6,234)    (8,972)   (24,508)    (4,721)
Minority interests                        --        191      1,198     (3,704)
                                     -------    -------    -------    -------
Loss from continuing operations       (6,234)    (8,781)   (23,310)    (8,425)
Discontinued operations
  Loss on continuing operations of
  discontinued timber segment             --        (32)       (24)      (435)
                                     -------    -------    -------    -------
Net loss                              (6,234)    (8,813)   (23,334)    (8,860)
                                     =======    =======    =======    =======

         NET SALES AND GROSS PROFIT

         Supermarket operations were established by the Company in the fourth
quarter of 1999. Net sales from supermarket operations increased by 21.3% from
RMB3.9 million (US$468,000) for the nine months ended September 30, 2000 to
RMB4.7 million (US$568,000) for the nine months ended September 30, 2001. For
the nine months ended September 30, 2001, supermarket operations had gross
profit and gross profit margin of RMB1,121,000 (US$135,000) and 23.8%,
respectively. For the nine months ended September 30, 2000, supermarket
operations had gross profit and gross profit margin of RMB730,000 (US$88,000)
and 18.8%, respectively.

         Net sales from supermarket operations increased by 28.7% from RMB1.4
million (US$174,000) for the third quarter of 2000 to RMB1.9 million
(US$225,000) for the third quarter of 2001. For the third quarter of 2001,
supermarket operations had gross profit and gross profit margin of RMB446,000
(US$54,000) and 24.0%, respectively. For the third quarter of 2000, supermarket
operations had gross profit and gross profit margin of RMB310,000 (US$37,000)



                                       12
<PAGE>

and 21.5%, respectively. The increase in net sales and gross profit margin were
due to increased sales volume resulting from the successful marketing efforts of
the Company and its ability to source less expensive and better quality products
from suppliers.

         Notwithstanding the cessation of natural rubber operations in early
2000, the Company engages in trading of natural rubber occasionally, depending
on market conditions. The Company had sales of RMB4.1 million (US$495,000) and
RMB890,000 (US$107,000) for the nine months and three months ended September 30,
2001, respectively, with gross loss of RMB175,000 (US$21,000) and RMB179,000
(US$22,000) for the nine months and three months ended September 30, 2001,
respectively. As a result of a decline in the natural rubber market in the
second half of 2001, the Company sold all of its rubber inventories in the third
quarter of 2001.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

         The selling, general and administrative expenses for the nine months
ended September 30, 2001 decreased by RMB363,000 (US$44,000) or 2.9% compared to
that for the nine months ended September 30, 2000. The decrease resulted from a
bad debt recovery in the amount of RMB629,000 (US$76,000) in the nine months
ended September 30, 2001. The decrease is offset by increases in legal,
professional and travel expenses incurred in relation to the exploration of
investment opportunities during 2001.

         Selling, general and administrative expenses for the third quarter of
2001 decreased by 9.1% to RMB4.0 million (US$484,000) from RMB4.4 million
(US$532,000) for the third quarter of 2000. The decrease was mainly due to a bad
debt recovery of RMB332,000 (US$40,000) in the third quarter of 2001.

         AMORTIZATION

         Expenses for the three months and nine months ended September 30, 2000
represented amortization of website technology, acquired on June 30, 2000, which
is being recorded on the straight-line basis over two years. Expenses for the
three months and nine months ended September 30, 2001 represented amortization
of the website technology.

         FINANCIAL INCOME, NET

         Net financial income for the nine months ended September 30, 2000 was
RMB619,000 (US$75,000), which was comprised of interest income of RMB4.8 million
(US$580,000) and exchange loss of RMB4.2 million (US$507,000). Net financial
income for the nine months ended September 30, 2001 was RMB856,000 (US$103,000),
which was comprised of interest income of RMB1.2 million (US$145,000) and
interest expenses of RMB300,000 (US$36,000). The decrease in financial income
was mainly attributable to the interest received in the second quarter of 2000
on a RMB45.0 million (US$5.4 million) short-term loan to an unaffiliated third
party, which amounted to RMB4.2 million (US$507,000). The exchange loss incurred
in 2000 arose from the conversion of RMB to Hong Kong dollars. The financial
expenses incurred in the first half of 2001 arose from a margin loan which was
repaid in the first quarter of 2001.

         Net financial expenses for the third quarter of 2000 was RMB3.1 million
(US$374,000), which was comprised of interest income of RMB227,000 (US$27,000)
and exchange loss of RMB3.3 million (US$398,000). Net financial income for the
third quarter of 2001 was RMB308,000 (US$37,000). The increase in financial
income was mainly attributable to the interest received in the third quarter of
2001 on RMB20 million (US$2.4 million) short-term loans to three unaffiliated
third parties.

         OTHER INCOME/(EXPENSES), NET

         Other income for the nine months ended September 30, 2000 represented a
net gain on trading of marketable securities. Other expenses for the nine months
ended September 30, 2001 mainly represented loss on acquisition and disposition
of assets of RMB16.0 million (US$1.9 million) as stated in note 2, a net gain on
trading of marketable securities of RMB6.3 million (US$760,000) and a premium
earned on written call options of RMB3.2 million (US$386,000).


                                       13
<PAGE>

         Other expenses for the third quarter of 2000 and 2001 represented a net
loss on trading of marketable securities.

         INCOME TAXES

         It is management's intention to reinvest all the income attributable to
the Company earned by its operations outside the US. Accordingly, no US federal
and state income taxes have been provided in these consolidated financial
statements.

         Income taxes consist of PRC federal income tax computed at 15% on
assessable income for foreign investment enterprises operating in Hainan.

         DISCONTINUED OPERATIONS

         Discontinued operations represent the operating loss from the
operations of the discontinued processed timber business resulting from the
exchange of the Company's 58% interest in Hainan Weilin Timber Limited Liability
Company as partial consideration for the minority interest of HARC.

         LIQUIDITY AND CAPITAL RESOURCES

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

         The Company had a working capital surplus of approximately RMB25.4
million (US$3.1 million) as of September 30, 2001, compared to that of
approximately RMB79.6 million (US$9.6 million) as of December 31, 2000. The
decrease was mainly attributable to the Company paying approximately RMB36
million (US$4.3 million) cash and foregoing approximately RMB14 million (US$1.7
million) due from the Farming Bureau as partial consideration for the minority
interest of HARC. Net cash used by operating activities for the nine months
ended September 30, 2001 was approximately RMB29.9 million (US$3.6 million), as
compared to net cash provided by operating activities of RMB46.9 million (US$5.7
million) for the corresponding period in 2000. 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 nine months ended September 30, 2001 was mainly attributable
to the cash proceeds from the disposal of marketable securities, net of the cash
consideration paid for the minority interest of HARC as stated above, and net of
loans made to third parties. Net cash provided by financing activities for the
nine months ended September 30, 2001 was attributable to the RMB3 million
(US$0.4 million) advance of short term loan from a third party.

         Except as disclosed above, there has been no other significant change
in financial condition and liquidity since the fiscal year ended December 31,
2000. The Company believes that internally generated funds will be sufficient to
satisfy its anticipated working capital needs for at least the next twelve
months.

MARKET RISK AND RISK MANAGEMENT POLICIES

         All of the Company's sales and purchases are made domestically and are
denominated in RMB. Accordingly, the Company and its subsidiaries do not have
material market risk with respect to currency fluctuation. As the reporting
currency of the Company's consolidated financial statements is also RMB, there
is no significant translation difference arising on consolidation. However, the
Company may suffer exchange loss when it converts RMB to other currencies, such
as Hong Kong Dollar or United States Dollar.


                                       14
<PAGE>

         The Company's interest income is most sensitive to changes in the
general level of RMB interest rates. In this regard, changes in RMB interest
rates affect the interest earned on the Company's cash equivalents. As at
September 30, 2001, the Company's cash equivalents are mainly RMB, Hong Kong
Dollar and United States Dollar deposits with financial institutions, bearing
market interest rates without fixed term.

         As at September 30, 2001, the Company had short-term investments in
marketable securities in the Hong Kong and United States stock markets with a
total market value of RMB3,239,000 (US$391,000). 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.

FINANCIAL POSITION

Marketable Securities
---------------------
Marketable securities decreased by 95% from December 31, 2000 to September 30,
2001 due to the sale of part of the securities in 2001.

Margin Loan Payable
-------------------
The margin loan payable at December 31, 2000 was used to purchase marketable
securities. The margin loan was repaid when the securities were sold in 2001.

Other Payables and Accrued Liabilities
--------------------------------------
In 2001, the Company recognized the call option premium of RMB3.2 million
(US$384,000) included in other payables and accrued liabilities. Also, the
Company repaid a short term loan payable of RMB6.9 million (US$832,000) and had
a short term loan payable of RMB3.0 million (US$362,000) in 2001.


                                       15
<PAGE>



                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS:

         NONE

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

         (a)      None.

         (b)      During the three months ended September 30, 2001, the Company
                  filed no current reports on Form 8-K.



                                       16
<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.




November 19, 2001                 By:/s/ Ching Lung Po
                                     ----------------------------------
                                     Ching Lung Po, Chairman



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




                                       17