UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________



FORM 10-KSB/A

Amendment No. 1

_____________________



x
        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934




For the fiscal year ended December31, 2007




o
        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934




For the transition period fromto




Commission File Number: 000-50029



CHINA HEALTH RESOURCE, INC.

f/k/a/ VOICE DIARY 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

Sui Ning, Si Chuan Province, P.R. China

(Address of Principal Executive Offices)



+(86-825) 239-1788

(Issuers Telephone Number)



_____________________

Securities registered pursuant to Section12(b) of the Act:



Title of each class
        Name of each exchange on which registeredNone
        Not Applicable










---



Securities registered pursuant to Section12(g) of the Act:

Common Stock, Class A & Class B, $.01 par value

_____________________



Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.o



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    YesoNox



Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15 (d) of the Exchange Act during the past 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.YesxNoo



Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of the registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.x



The Registrants revenues for its fiscal year ended December 31, 2007 were $725,529.



The aggregate market value of the voting and non-voting common equity held by non-affiliates of the issuer computed by reference to the close price of $.011 reported by brokers, as of April 14, 2008, was approximately $901,636.



At April 14, 2008, the registrant had outstanding 104,288,894 shares of par value $.01 Class A Common Stock, of which approximately 81,966,906 shares were held by non-affiliates, and 2,000 shares of par value $.01 Class B Common Stock, of which none was held by non-affiliates.





Transitional Small Business Disclosure Format (check one):    YesoNox





DOCUMENTS INCORPORATED BY REFERENCE:



None.



- 2 -






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EXPLANATORY NOTE



In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the Exchange Act), we are filing this abbreviated Amendment No. 1 to the Annual Report on Form 10-KSB (this Form 10-KSB/A No. 1) of China Health Resource, Inc. f/k/a Voice Diary Inc. (the Company) for the fiscal year ended December 31, 2007, previously filed with the Securities and Exchange Commission (the SEC) on April 14, 2008 (the 2007 Form 10-KSB), to effect the amendments described below:



(a)Part II, Item 7 - Financial Statements. The Report of Independent Registered Public Accountant has been amended to cover the consolidated balance sheet for fiscal year 2006. The Consolidated Statement of Equity (Deficit) for fiscal year 2007 and related footnotes have also been revised to reflect the recapitalization effected in such year;



(b)Part II, Item 8A - Controls and Procedures. This Item has been amended to provide a complete report on managements assessment of internal control over financial reporting in accordance with Item 308T(a) of Regulation S-B, portions of which were inadvertently omitted from the Companys original filing of the 2007 Form 10-KSB. In addition, in light of such inadvertent omission, the Company has amended its disclosure contained in the second paragraph of such Item relating to the effectiveness of its disclosure controls and procedures; and



(c)Part III, Item 13 - Exhibits. We have revised the certifications contained in Exhibits 31.1 and 31.2 to include the complete information required by Item 601(b)(31) of Regulation S-B, which was inadvertently omitted in the 2007 Form 10-KSB.



In addition, as required by Rule 12b-15 under the Exchange Act, new certifications by the Companys Principal Executive Officer and our Principal Financial and Accounting Officer (the Certifying Officers) are being filed as exhibits to this Form 10-KSB/A No. 1.



Except for the amendment described above, this Form 10-KSB/A No. 1 does not revise, update, or in any way affect any information or disclosure contained in the 2007 Form 10-KSB and we have not updated the disclosures contained herein to reflect events that occurred at a later date. Accordingly, this Form 10-KSB/A No. 1 should be read in conjunction with our SEC filings made subsequent to the 2007 Form 10-KSB.



Part II, Item 7 - Financial Statements.



Item 7 - Financial Statements of the 2007 Form 10-KSB and related footnotes are hereby amended and restated to read in its entirety as follows:



The consolidated financial statements include the accounts of Yin Fa, our wholly owned subsidiary. The following selected financial data for the years ended December 31, 2007 and 2006 is derived from our consolidated financial statements, and should be read in conjunction with the consolidated financial statements and related notes presented as a separate section commencing on page F-1.



- 3 -






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December31,2007
        
        
        2006Balance SheetTotal Assets
        
        $
        3,941,487
        
        
        $
        1,649,617Total Liabilities
        
        
        978,935
        
        
        
        1,295,742Total Stockholders Equity
        
        
        2,962,552
        
        
        
        353,875Total Liabilities and Stockholders Equity
        
        
        3,941,487
        
        
        
        1,649,617Statements of OperationsFor years endedDecember31,2007
        
        
        2006Revenue
        
        $
        725,529
        
        
        $
        1,038,528Operating Expenses
        
        
        724,453
        
        
        
        775,148Other Income
        
        
        230,225
        
        
        
        205,777Net Loss
        
        
        (226,048
        )
        
        
        (303,694
        )Net Loss per Common Share
        
        
        **
        
        
        
        **Weighted Average Common Shares Outstanding
        
        
        64,879,283
        
        
        
        18,204,056




- 4 -






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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors and Stockholders of China Health Resource, Inc.

(f/k/a Voice Diary Inc.) and Subsidiary



We have audited the accompanying balance sheets of China Health Resource, Inc. (f/k/a Voice Diary Inc.) and Subsidiary (a Delaware corporation) as of December 31, 2007 and 2006 and related statements of operations, stockholders deficit, and cash flows for the years ending December 31, 2007 and 2006. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.



We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.



In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of China Health Resource, Inc. and Subsidiary as of December 31, 2007 and 2006 and the results of its operations and its cash flows for years ended December 31, 2007 and 2006 in conformity with accounting principles generally accepted in the United States of America.



The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses and has yet to generate an internal cash flow that raises substantial doubt about its ability to continue as a going concern. Managements plans in regard to these matters are described in Note I. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



/s/ Lake & Associates, CPAs LLC

Lake & Associates, CPAs LLC

Boca Raton, Florida

April 10, 2008 except for Note O



Except for Footnote O, which was dated November 7, 2008



F-1






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China Health Resource, Inc. and SubsidiaryConsolidated Balance SheetsAs of December 31, 2007 and 2006ASSETS
        
        2007
        2006CURRENT ASSETSCash and Cash Equivalents
        $           36,127
        $         179,868Accounts Receivable
        460,414
        388,079Note Receivable-Related Party
        628,390
        192,093Employee Advances
        7,197
        -Prepaid Expenses
        2,143,827
        351,343Inventory
        61,918
        6,104TOTAL CURRENT ASSETS
        3,337,873
        1,117,487FIXED ASSETSProperty, Plant, and Equipment
        717,831
        586,508Accumulated Depreciation
        (114,217)
        (54,379)TOTAL NET FIXED ASSETS
        603,614
        532,129TOTAL ASSETS
        $     3,941,487
        $      1,649,617LIABILITIES AND EQUITYCURRENT LIABILITIESAccounts Payable and Accrued Liabilities
        $       207,957
        $         893,208Other Payables
        -
        12,806Due to Shareholder
        83,258
        -Taxes Payable
        98,996
        3,061Notes Payable - Current Portion
        588,724
        185,471TOTAL CURRENT LIABILITIES
        978,935
        1,094,546LONG-TERM LIABILITIESNotes Payable
        -
        201,196TOTAL LONG-TERM LIABILITIES
        -
        201,196TOTAL LIABILITIES
        978,935
        1,295,742STOCKHOLDERS EQUITY (DEFICIT)Common Stock Class A ( 500,000,000 Shares Authorized,99,288,894 Issued and Outstanding, par value $0.01)
        992,889
        318,018Common Stock Class B ( 8,344 shares
authorized,2,000 Issued and Outstanding, par value $0.01)
        20
        20Additional Paid in Capital
        2,195,468
        96,439Accumulated Other Comprehensive Income
        76,117
        15,292Retained Earnings (Deficit)
        (301,942)
        (75,894)TOTAL STOCKHOLDERS EQUITY (DEFICIT)
        2,962,552
        353,875TOTAL LIABILITIES AND EQUITY
        $     3,941,487
        $      1,649,617The accompanying notes are an integral part of these financial statements.






F-2






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China Health Resource, Inc. and SubsidiaryConsolidated Statement of OperationsFor the Years Ended December 31, 2007 and 20062007
        
        
        2006REVENUESSales
        
        $
        725,529
        
        
        $
        1,038,528Cost of Sales
        
        
        401,480
        
        
        
        769,852GROSS PROFIT
        
        
        324,049
        
        
        
        268,676OPERATING EXPENSESSelling, General, and Administrative
        
        
        663,448
        
        
        
        721,465Interest Expense
        
        
        37,743
        
        
        
        25,081Distribution Costs
        
        
        23,262
        
        
        
        28,602TOTAL OPERATING EXPENSES
        
        
        724,453
        
        
        
        775,148OPERATING INCOME (LOSS)
        
        
        (400,404
        )
        
        
        (506,472
        )OTHER INCOME / (EXPENSES)Non-Operating Expenses
        
        
        -
        
        
        
        (1,241
        )Government Grants
        
        
        230,225
        
        
        
        207,018TOTAL OTHER INCOME / (EXPENSE)
        
        
        230,225
        
        
        
        205,777NET INCOME (LOSS) BEFORE TAXES
        
        
        (170,179
        )
        
        
        (300,695
        )INCOME TAX EXPENSE
        
        
        55,869
        
        
        
        2,999NET INCOME (LOSS) FROM CONTINUED OPERATIONS
        
        
        (226,048
        )
        
        
        (303,694
        )INCOME FROM DISCONTINUED OPERATIONS
        
        
        -
        
        
        
        148,461NET INCOME (LOSS)
        
        
        (226,048
        )
        
        
        (155,233
        )OTHER COMPREHENSIVE INCOME (LOSS)Foreign Currency Translation (Loss) Gain
        
        
        60,825
        
        
        
        14,306COMPREHENSIVE INCOME (LOSS)
        
        $
        (165,223
        )
        
        $
        (140,927
        )WEIGHTED AVERAGE COMMON SHARES OUTSTANDINGBasic and Fully Diluted
        
        
        64,879,283
        
        
        
        18,204,056NET LOSS PER COMMON SHARE
        
        
        **
        
        
        
        **** Less than $.01The accompanying notes are an integral part of these financial statements.






F-3






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China Health Resource, Inc. and SubsidiaryConsolidated Statement of Cash FlowsFor the Years Ended December 31, 2007 and 20062007
        
        
        2006CASH FLOWS FROM OPERATING ACTIVITIES:Net Income After Income Tax
        
        $
        (226,048
        )
        
        $
        (155,233
        )Adjustments to Reconcile Net Income toNet Cash Used in Operating Activities
        
        
        -
        
        
        
        -Non-Cash Adjustment for Retained Earnings Due to Reverse
Merger
        
        
        -
        
        
        
        80,325Common Stock Issued for Services
        
        
        2,074,346
        
        
        
        -Waiver of Subscription Receivable
        
        
        -
        
        
        
        10,000Depreciation
        
        
        59,838
        
        
        
        54,379Accounts Receivable
        
        
        (72,335
        )
        
        
        (382,763
        )Employee Advances
        
        
        (7,197
        )
        
        
        -Prepaid Expenses
        
        
        (1,792,484
        )
        
        
        (351,342
        )Inventory
        
        
        (55,814
        )
        
        
        (6,104
        )Accounts Payable and Accrued Liabilities
        
        
        (14,303
        )
        
        
        646,512Other Payable
        
        
        (12,806
        )
        
        
        (7,389
        )Tax Payable
        
        
        95,934
        
        
        
        3,060NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
        
        
        49,131
        
        
        
        (108,555
        )CASH FLOWS FROM INVESTING ACTIVITIES:Issuance of Note Receivable
        
        
        (436,297
        )
        
        
        (192,093
        )Proceeds from Notes Receivable
        
        
        433
        
        
        
        -Reverse merger with Yin Fa
        
        
        -
        
        
        
        453,091Purchase of Property, Plant, and Equipment
        
        
        (131,323
        )
        
        
        (586,508
        )NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
        
        
        (567,187
        )
        
        
        (325,510
        )CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from Issuance of Short-Term Note
        
        
        219,040
        
        
        
        12,806Proceeds from Shareholder Loan
        
        
        83,258
        
        
        
        -Retirement of Common Stock
        
        
        -
        
        
        
        (74,000
        )Proceeds from Issuance of Common Stock
        
        
        -
        
        
        
        264,000Note Payable from Related Party
        
        
        11,192
        
        
        
        386,666NET CASH PROVIDED BY FINANCING ACTIVITIES
        
        
        313,490
        
        
        
        589,472FOREIGN CURRENCY TRANSLATION
        
        
        60,825
        
        
        
        14,306NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
        
        
        (143,741
        )
        
        
        169,713CASH AND CASH EQUIVALENTS:Beginning of Period
        
        
        179,868
        
        
        
        10,155End of Period
        
        $
        36,127
        
        
        $
        179,868SUPPLEMENTAL CASH FLOW INFORMATION:Common Stock Issued for
Settlement of Certain Accounts Payable
        
        $
        699,554
        
        
        $
        -Common Stock Issued for Services
        
        $
        2,074,346
        
        
        $
        -The accompanying notes are an integral part of these financial statements.






F-4






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China Health Resource, Inc. and SubsidiaryConsolidated Statement of Equity (Deficit)For the Years Ended December 31, 2007 and 2006Common StockClass AShares
        
        
        
        par value0.01
        
        
        Class BShares
        
        
        
        par value0.01
        
        
        Additional Paid-inCapital
        
        
        SubscriptionReceivable
        
        
        RetainedEarnings(Deficit)
        
        
        AccumulatedOtherComprehensiveIncome
        
        
        Total






Balances, December 31, 2005
        
        $
        12,022,977
        
        
        $
        120,230
        
        
        $
        744
        
        
        $
        7
        
        
        $
        2,724,551
        
        
        $
        (10,000)
        
        
        $
        (3,073,401)
        
        
        $
        -
        
        
        $
        (238,613)Waiver of subscription receivables
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        10,000
        
        
        
        -
        
        
        
        -
        
        
        
        10,000Issuance in connection with reverse merger-Yin Fa
        
        
        7,977,023
        
        
        
        79,770
        
        
        
        2,000
        
        
        
        20
        
        
        
        184,210
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        264,000Retired to treasury
        
        
        -
        
        
        
        -
        
        
        
        (744
        )
        
        
        (7
        )
        
        
        (73,994
        )
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        (74,001
        )Reverse merger with Yin Fa
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        453,091
        
        
        
        -
        
        
        
        79,339
        
        
        
        986
        
        
        
        533,416Effect of 11.1:1 reverse split
        
        
        (18,198,198
        )
        
        
        (181,982
        )
        
        
        -
        
        
        
        -
        
        
        
        181,982
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        0Issuance in connection with reverse merger-Yin Fa
        
        
        30,000,000
        
        
        
        300,000
        
        
        
        -
        
        
        
        -
        
        
        
        (300,000
        )
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -Recapitalization
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (3,073,401
        )
        
        
        
        
        
        
        3,073,401Net Income (Loss) for the year
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        (155,233
        )
        
        
        -
        
        
        
        (155,233
        )Other comprehensive income
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        14,306
        
        
        
        14,306Balances, December 31, 2006
        
        $
        31,801,802
        
        
        $
        318,018
        
        
        $
        2,000
        
        
        $
        20
        
        
        $
        96,439
        
        
        $
        -
        
        
        $
        (75,894)
        
        
        $
        15,292
        
        
        $
        353,875Issuance for services rendered
        
        
        6,500,000
        
        
        
        65,000
        
        
        
        -
        
        
        
        -
        
        
        
        634,554
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        699,554Issuance for services rendered
        
        
        1,000,000
        
        
        
        10,000
        
        
        
        -
        
        
        
        -
        
        
        
        41,225
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        51,225


| | F-5
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Issuance of stock due to conversion
        
        
        10,342,593
        
        
        
        103,426
        
        
        
        (2,000
        )
        
        
        (20
        )
        
        
        (103,406
        )
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -Issuance for services
        
        
        -
        
        
        
        -
        
        
        
        2,000
        
        
        
        20
        
        
        
        2,023,101
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        2,023,1211:2 Forward stock split
        
        
        49,644,447
        
        
        
        496,445
        
        
        
        -
        
        
        
        -
        
        
        
        (496,445
        )
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -Net Income (Loss) for the period
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        (226,048
        )
        
        
        -
        
        
        
        (226,048
        )Other comprehensive income
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        
        -
        
        
        60,825
        
        
        
        60,825Balances, December 31, 2007
        
        $
        99,288,842
        
        
        $
        992,889
        
        
        $
        2,000
        
        
        $
        20
        
        
        $
        2,195,408
        
        
        $
        -
        
        
        $
        (301,942)
        
        
        $
        76,117
        
        
        $
        2,962,552The accompanying notes are an integral part of these financial statements.


| | F-6
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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Business Activity

China Health Resource, Inc., 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 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..



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.



The Plan of Exchange was consummated on August 22, 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 recapitalization by the accounting acquirer and as a re-organization by the accounting acquiree.



Accordingly, the consolidated financial statements include the 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.




Yin Fa was founded on April 24, 2001 in China. The 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.



A GAP certificate means that the planning, quality, and manufacturing of DAR meet a high and certifiable standard. The GAP certificate is in the name of Sichuan and the Company manages the processing and sales of DAR.

| | F-7
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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD)



CHRI and its wholly owned subsidiary Yin Fa are hereafter referred to as (the Company).



Basis of Presentation

The financial statements included herein were prepared under the accrual basis of accounting.



Cash and Cash Equivalents

For purposes of the Consolidated Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.



Managements Use of Estimates

The preparation of consolidated financial statements in 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.



Revenue Recognition

Revenue is recognized at the time the product is delivered and title has passed to the customer. Cash discounts are recognized as an expense in the period in which it actually occurs. Sales allowances are recorded as a reduction of revenue in the period in which they occur. Revenue is presented net of returns.



Comprehensive Income (Loss)

The Company adopted Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) No. 130,Reporting Comprehensive Income,which establishes standards for the reporting and display of comprehensive income and its components in the consolidated financial statements.



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 share capital and retained earnings are translated at exchange rates prevailing at the time of the transactions. 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 foreign currencies translation adjustments are included as a separate component of accumulated other comprehensive income.



Companys Future Operations Are Dependent on Foreign Operations

The Companys future operations and earnings will depend on the results of the Companys operations in China. There can be no assurance that the Company will be able to successfully conduct such operations, and a failure to do so would have a material adverse effect on the Companys financial position, results of operations, and cash flows.



Also, the success of the Companys operations will be subject 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





| | F-8
| | ---





---



CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD)



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.



Inventory

Inventory includes raw material, package material, low-value 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. Low-value consumables are amortized at 50% of the amount upon application and amortized an additional 50% upon obsolescence.



Property, Plant, and Equipment

Property, plant, and equipment are recorded 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.



Depreciation 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:





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


| | Building | Straight-line for 20 years with a 5% salvage value
| | -------- | --------------------------------------------------



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 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.



Income Taxes

Income taxes are provided in accordance with Statement of Financial Accounting Standards (SFAS) No. 109,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.



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. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.





| | F-9
| | ---





---



CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD)



Fair Value of Financial Instruments

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.



Accounts Receivable

Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts. In determining the collectablility of the account, historical trends are evaluated and specific customer issues are reviewed to arrive at appropriate allowances.



Impairment of Long-Lived Assets

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.



Stock-Based Compensation

Employee stock-based compensation is accounted for in accordance with Accounting Principles Board Opinion No. 25,Accounting for Stock Issued to Employees(APB 25) and the FASB interpretations thereof. Pursuant to those accounting pronouncements, compensation is recorded for share options granted to employees at the date of grant based on the 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 fair value of the compensation in accordance with SFAS No. 123R,Accounting 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 necessary computations, 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 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.



Recently Issued Accounting Pronouncements

In February 2007, the FASB issued Statement of Financial Accounting Standard No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS No. 159). This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Companies should report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. This statement is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007. The Company is currently assessing the potential impact, if any, for the adoption of SFAS No.159 on its consolidated financial statements.





| | F-10
| | ----





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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD)



In December 2007, the FASB issued two new statements: (a.) SFAS No. 141(revised 2007),Business Combinations, and (b.) No. 160,Noncontrolling Interests in Consolidated Financial Statements.These statements are effective for fiscal years beginning after December 15, 2008 and the application of these standards will improve, simplify and converge internationally the accounting for business combinations and the reporting of noncontrolling interests in consolidated financial statements. The Company is in the process of evaluating the impact, if any, on SFAS 141 (R) and SFAS 160 and does not anticipate that the adoption of these standards will have any impact on its consolidated financial statements.



(a.)  SFAS No. 141 (R) requires an acquiring entity in a business combination to: (i) recognize all (and only) the assets acquired and the liabilities assumed in the transaction, (ii) establish an acquisition-date fair value as the measurement objective for all assets acquired and the liabilities assumed, and (iii) disclose to investors and other users all of the information they will need to evaluate and understand the nature of, and the financial effect of, the business combination, and, (iv) recognize and measure the goodwill acquired in the business combination or a gain from a bargain purchase.



(b.)  SFAS No. 160 will improve the relevance, comparability and transparency of financial information provided to investors by requiring all entities to: (i) report noncontrolling (minority) interests in subsidiaries in the same manner, as equity but separate from the parents equity, in consolidated finan



NOTE B - SUPPLEMENTAL CASH FLOW INFORMATION



Supplemental disclosures of cash flow information for the period ended December 31, 2007 and 2006 is summarized as follows:



Cash paid during the period ended December 31, 2007 and 2006 for interest and income taxes:







2007
        2006


Income Taxes
        $
        -0-
        -0-


|Interest | $ | -0- | -0-
|-------- | - | --- | ---



NOTE C - SEGMENT REPORTING



In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131,Disclosures about Segments of an Enterprise and Related Information.



This statement requires companies to report information about operating segments in interim and annual consolidated financial statements. It also requires segment disclosures about products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable operating segments as of December 31, 2007 and 2006.



NOTE D - NOTE RECEIVABLE



As of December 31, 2006, the Company has a note receivable from a related-party with a total balance due of $192,093. The note is due on May 29, 2007 with interest at 6.12%.









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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE D - NOTE RECEIVABLE (CONTD)



As of December 31, 2007, the Company has a note receivable from a related-party with a total balance due of $191,660. The note is due on May 29, 2007 with interest at 6.12%.



As of December 31, 2007, the Company has a note receivable from a related-party with a total balance due of $436,730. The note is due on December 31, 2008.



NOTE E - NOTES PAYABLE - CURRENT AND LONG-TERM



As of December 31, 2007 and 2006, notes payable consist of the following:







Secured note payable to an unrelated party.

Bearing 6.3 % interest Principal payments due

2007
        2006




Unsecured note payable unrelated party

Bearing 10.925 % interest Principal payment due

12/31/2008 one payment of $ 198,270
        $
        198,270
        370,940




Unsecured note payable unrelated party

09/20/2008
        $
        219,040
        -0-


10/31/2008



Bearing 2.4 % interest Principal payments due
        $
        171,414
        -0-




Future payments on note due as follow:



TOTAL
        $
        588,724
        370,940


Before December 31, 2008
        588,724
        198,270




NOTE F - COMMITMENTS



The Company leases its warehouse for approximately $1,478 per year, which expires March 14, 2008.



TOTAL
        $588,724
        $198,270




The Company leases farm land of approximately 861,000 sq feet from a cooperative of farmers. The lease expires in December 2017. Total Rent Expense for December 31, 2007 was $6,455.





Future annual lease payments are as follows:March 15, 2007 to March 14,
2008
        
        $
        1,478TOTAL
        
        $
        1,478






Future annual lease payments are as follows:Year Ending December 31, 2008
        
        $
        6,4552009
        
        
        6,455


| | F-12
| | ----





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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE F  COMMITMENTS(CONTD)









2010
        
        
        6,4552011
        
        
        6,4552012
        
        
        6,4552013 and beyond
        
        
        32,275TOTAL
        
        $
        64,550




The Company leases its office space of approximately 3,600 sq feet for sales and marketing. The lease commences in July 2007 and expires in June 2027. Total Rent Expense for the year ended December 31, 2007 was $34,719.



|Future annual lease payments are as follows: |  |   |          
|-------------------------------------------- |  | - | ---------
|                                             |  |   |          
|                                             |  |   |          
|Year Ending December 31, 2008                |  | $ | 46,292   
|2009                                         |  |   | 46,292   
|2010                                         |  |   | 46,292   
|2011                                         |  |   | 53,785   
|2012                                         |  |   | 62,750   
|...                                          |  |   |          
|TOTAL                                        |  | $ | 1,999,975



NOTE G - RELATED-PARTY TRANSACTIONS



The former shareholders of the Company were Sichuan Suining Yingfa Resource Development Group Co., Ltd., Suining Yingfa Construction Materials Company Ltd, and Sichuan Yingfa Resource Development Co., Ltd. (the Yingfa group). According to the Temporary Resolution of the Shareholders Meeting of the Company held on January 20, 2006, the Company has had a capital restructuring as mentioned in Note L. Related-party transactions between the Company and Yingfa group from 2004 to January 20, 2006 are listed below:



The GAP certificate is owned by the Yingfa Group, namely Sichuan Yingfa Resource Development Co., Ltd. GAP is a quality standard for agricultural products such as DAR. The GAP certificate means high and certifiable standard. The Company is the virtual manufacturer and seller of DAR.



The Company trademark for its Bailing Capsules is Zhiwang which Sichuan owns and has applied for registration. Sichuan is waiting for approval by State Industrial and Commercial Administration General Bureau Trademark Bureau.



The office building was purchased from the Yingfa group. The land use right of the building was transferred from the Yingfa group to the Company.



Government grants and loans were obtained by the Yingfa group.



As of December 31, 2006, the Company has a note receivable from a related-party with a total balance due of $192,093. The note is due on May 29, 2007 with interest at 6.12%.





| | F-13
| | ----





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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE G - RELATED-PARTY TRANSACTIONS (CONTD)



As of December 31, 2007, the Company has a note receivable from a related-party with a total balance due of $191,660. The note is due on May 29, 2007 with interest at 6.12%.



As of December 31, 2007, the Company has a note receivable from a related-party with a total balance due of $436,730. The note is due on December 31, 2008.



On August 15, 2007, the Companys Board of Directors approved to pay for the total rent of a 20-year leasing property by the issuance of 2,000 shares of Class B Common Stock to Lian, Xiao Jian, the owner of a property. Pursuant to the terms and conditions of the Contract of Lease Property, dated June 29, 2007, the total payment of the rent for 20 years leasing period is $2,023,121 and the leasing property is approximately 3,600 square feet. The lease commences in July 2007 and expires in June 2027. Total rent expense for the year ended December 31, 2007 was $23,146.



NOTE H -COMPREHENSIVE INCOME



Statement of Financial Accounting Standards (SFAS) No. 130,Reporting Comprehensive Income,establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying statement of changes in stockholders equity consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. For the years ended December 31, 2007 and 2006, total comprehensive income was $60,825 and $14,306, respectively.



NOTE I - GOING CONCERN



As shown in the accompanying audited financial statements, the Company has a deficit book value and a negative cash flow from operations that have placed substantial doubt as to whether the Company can continue as a going concern. The ability of the Company to continue as a going concern is dependent on developing operations, increasing revenues, and obtaining new capital. Management has enacted a plan to raise capital and increase sales.



NOTE J - INCOME TAXES



Due to operating losses, there was no provision for current federal or state income taxes for the year ended December 31, 2007.



Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.



The Companys deferred tax asset at December 31, 2007 consists of net operating loss carry-forward calculated using prevailing PRC tax rates equating to approximately $85,000 less a valuation allowance in the amount of $85,000. Because of the Companys lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased (decreased) by approximately $85,000 compared to the same period in 2006 due to reorganization.









---



CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE J - INCOME TAXES (CONTD)



Utilization of the net operating losses may be subject to certain annual limitations due to changes in control. This may result in the expiration of net operating losses before full utilization.



The Companys total deferred tax asset as of December 31, 2007 is as follows:





|                                  |  | 2007 |         |   | 2006 |  
|--------------------------------- |  | ---- | ------- | - | ---- | -
|                                  |  |      |         |   |      |  
|Net operating loss
carry-forwards |  | $    | 85,000  |   |      | $
|Valuation Allowance               |  |      | (85,000 | ) |      |  
|                                  |  |      |         |   |      |  
|                                  |  | $    | -0-     |   |      | $
|Prevailing PRC tax rate           |  |      | 15      | % |      |  



The Company is subject to income taxes on an entity basis, on income arising in, or derived from the tax jurisdiction in which it is domiciled and operates. The corporate has no income taxes accrued as of December 31, 2007 due to operating losses.



The Company is subject to income taxes on an entity basis, on income arising in, or derived from the tax jurisdiction in which it is domiciled and operates. The corporate income taxes accrued as of December 31, 2006 were $2,999.



Plant and equipment, net as of December 31, 2007 and 2006 consists of the following:





|                                 | 2007           |  | 2006          
|-------------------------------- | -------------- |  | --------------
|Building                         | $     400,995  |  | $      400,995
|Furniture, fixture and equipment | 316,836        |  | 185,475       
|                                 | 717,831        |  | 586,470       
|Less: accumulated depreciation   | (114,217)      |  | (54,379)      
|Plant and equipment, net         | $      603,614 |  | $      532,091



Depreciation expense for the year ended December 31, 2007 and 2006 respectively was $59,838 and $6,427.



NOTE L -EQUITY TRANSACTIONS



On July 10, 2006, the Company issued 7,977,023 new shares of Class A Common Stock and 2,000 new shares of Class B Common Stock in exchange for a payment of $264,000 in cash, in reliance upon exemptions from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the Act), pursuant to Section 4(2) of the Act and Rule 506 promulgated there under.



On August 22, 2006, Arie Hinkis, the former president of the Company, returned 744 shares of Class B Common Stock against payment of $74,000 and settlement of all unpaid salaries and severance pay to Mr.





| | F-15
| | ----





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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE L -EQUITY TRANSACTIONS (CONTD)



Hinkis in the amount of $100,000, both amounts will be taken from the payment made to VDYI for the aforesaid issued shares.



On November 10, 2006, the Company issued 333,000,000 new shares of Class A Common Stock (the effect of 30,000,000 shares after consideration of the proposed 11.1:1 reverse split), to the Yin Fa shareholders pursuant to Regulation S under the Securities Act of 1933, as amended, in exchange for all of their shares of registered capital of Yin Fa, pursuant to the Plan of Exchange, dated June 13, 2006.



On January 10, 2007, the Company issued 6,500,000 shares of Class A Common stock for payment of consulting services to several companies and individuals. The fair value of this stock issuance was determined using the fair value of the Companys common stock on the grant date or the specific terms of the applicable consulting agreements and booked pro rata due to the service periods. The Company calculated a stock-based compensation cost of total $699,554 and recognized $212,896 for the year ended December 31, 2007. As of December 31, 2007, a deferred compensation is amounted to $143,852 and amortized on the straight-line method over the contract periods.



On February 2, 2007, the Company issued 1,000,000 shares of Class A Common stock for payment of consulting services to Greentree Financial Group, Inc. for services in connection with general management consulting and advisory services.



The fair value of this stock issuance was determined using the fair value of the Companys common stock on the grant date or the specific terms of the applicable consulting agreements and booked pro rata due to the service periods. The Company calculated a stock-based compensation cost of total $51,225 and recognized $51,225 for the year ended December 31, 2007.



On June 8, 2007, Deng Shu Lan, the former president of Yin Fa, resigned from all positions in Yin Fa. Pursuant to an oral termination agreement, Deng Shu Lan transferred Zheng Zhimin, the new Vice President of Yin Fa, 2,000 shares of Class B Common stock of the Company, which were converted into 10,342,593 Class A Common Stock on July 9, 2007.



On July 23, 2007, the Company effected a forward stock split of the Companys Class A Common Stock, pursuant to the Delaware General Corporation Law, no dissenters rights under the Delaware General Corporation Law are afforded to the Companys stockholders as a result of the adoption of this resolution, exchanging one (1) existing shares of Class A Common Stock for two (2) shares of post forward split Class A Common Stock. The number of outstanding shares of the Companys Class A common stock was increased from 49,644,447 to 99,288,894 shares and par value of its Class A common stock was unchanged at $0.01.



On August 15, 2007, the Companys Board of Directors approved to pay for the total rent of a 20-year leasing property by the issuance of 2,000 shares of Class B Common Stock to Lian, Xiao Jian, the owner of a property. Pursuant to the terms and conditions of the Contract of Lease Property, dated June 29, 2007, the total payment of the rent for 20 years leasing period is $2,023,121 and the leasing property is approximately 3,600 square feet. The lease commences in July 2007 and expires in June 2027. Total rent expense for the year ended December 31, 2007 was $23,146.





| | F-16
| | ----





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CHINA HEALTH RESOURCE, INC. AND SUBSIDIARY

NOTES TO AUDITED FINANCIAL STATEMENTS

For the Years Ended December 31, 2007 and 2006

NOTE M - REVERSE STOCK SPLITS



A common stock reverse split of 11.1 for 1 was effective October 1, 2006. All common stock amounts in the accompanying financial statements issued on or before the date of the reverse stock split have been restated retroactively to reflect this capitalization change.



NOTE N SUBSEQUENT EVENT



On February 5, 2008, the Company issued 5,000,000 shares of Class A Common stock for payment of consulting services to a company. The fair value of this stock issuance was determined using the fair value of the Companys common stock on the grant date or the specific terms of the applicable consulting agreements and will be booked pro rata due to the service periods.



NOTE O - SUBSEQUENT DISCOVERY OF ERROR



On November 7, 2008 the Company discovered an error in its financial statements. The Company was required to reset its historical equity as of the result of the reverse merger that occurred during 2006.





| | F-17
| | ----





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Part II, Item 8A - 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 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 is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and that it is accumulated and communicated to our management, including the Certified Officers, as appropriate to allow timely decisions regarding required disclosure.



In light of the amendments required to the Companys original filing of its 2007 Form 10-KSB, our Certifying Officers have concluded that such disclosure controls and procedures were not wholly effective as of December 31, 2007. In reaching this conclusion, the Certifying Officers noted the inadvertent omissions necessitating this amendment to our 2007 Form 10-KSB. We have remedied this deficiency in our disclosure controls and procedures by implementing additional controls and procedures designed to ensure completeness and more effective control over disclosures.



Managements Report on Internal Control Over Financial Reporting.



Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act for the Company. Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements under all potential conditions. Therefore, effective internal control over financial reporting provides only reasonable, and not absolute, assurance that a restatement of our financial statements would be prevented or detected.



Under the supervision and with the participation of our management, including our Certifying Officers, we conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2007. The assessment was based on the criteria established in theInternal Control  Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concluded that our internal controls over financial reporting are effective and provide a reasonable assurance of achieving their objective as of December 31, 2007.



Changes in Internal Control Over Financial Reporting.



There were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Managements report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Commission that permit us to provide only managements report in this annual report.







---



Part III, Item 13 - Exhibits.



(a)  Financial Statements.



1.  The following financial statements of the Company are included in Part II, Item 7:





Report of independent Registered Public Accounting Firm
        F-1


Balance Sheet-December 31, 2007
        F-2


Statements of Operations - For years ended December 31, 2007 and 2006
        F-3


Statements of Cash Flows - For years ended December 31, 2007 and 2006
        F-4


Statements of Stockholders Equity - For years ended December 31, 2007 and 2006
        F-5 to F-6


| | Notes to Financial Statements | F-7 to F-17
| | ----------------------------- | -----------



2.  Exhibits





14.1.
        Code of Ethics*


31.1.
        Rule 13a-14(a)/15d-14(a) Certifications of Chief Executive Officer


31.2.
        Rule 13a-14(a)/15d-14(a) Certifications of Chief Financial Officer


32.1.
        Section 1350 Certifications of Chief Executive Officer


32.2.
        Section 1350 Certifications of Chief Financial Officer




|* | Incorporated by reference to Exhibit 14.1 to the Companys Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006.
|- | ------------------------------------------------------------------------------------------------------------------------------------



(b)  Reports on Form 8-K



1.  On February 6, 2007, we filed a current report on Form 8-K to announce the change of its certifying accountant.



2.  On March 6, 2007, we filed a current report on Form 8-K to announce that we entered into an Exclusive Import-Export Agency Agreement with DongUi Cosmetics Co. (DongUi), a corporation organized and existing under the laws of the Republic of Korea (South Korea), for business development in South Korea.



3.  On April 20, 2007, we filed a current report on Form 8-K to announce that we entered into an Exclusive Agency Agreement with Chengdu Derentang Pharmaceutical Ltd.(Derentang), a corporation organized and existing under the laws of the Peoples Republic of China, for the sales of DAR.



4.  On June 21, 2007, we filed a current report on Form 8-K to announce that we executed a 1 for 2 forward stock split of our Class A Common Stock, which took effective at July 23, 2007.



5.  On July 23, 2007, we filed a current report on Form 8-K to announce the resignation of Deng, Shu Lan, the former president of Yin Fa, and the stock transfer for the 2,000 shares of our Class B Common Stock.



6.  On August 31, 2007, we filed a current report on Form 8-K to announce the issuance of 2,000 shares of Class B Common Stock for the rental payment of a 20-year leasing property.







---



SIGNATURES



In accordance with Section 13 or 15(d) 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., f/k/a VOICE DIARY INC.







Dated: November 12, 2008
        By:/s/ Chen, Jiang________________________


Chen, Jiang


Chief Executive Officer and Director(Principal Executive Officer)









Dated: November 12, 2008
        By:/s/ Zhou Yi________________________


Zhou, Yi


Chief Financial Officer and Director(Principal Financial and Accounting Officer)









Dated: November 12, 2008
        By:/s/ Wang, Jiayin________________________


Wang, JiayinPresident and Director









Dated: November 12, 2008
        By:/s/ Wang, Bing________________________


Wang, BingDirector









Dated: November ___, 2008
        By: ________________________


Wang, Gewei


| | Director
| | --------









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EXHIBIT INDEX







Exhibit No.
        Description


14.1
        Code of Ethics*


31.1
        Certification of Chief Executive Officer


31.2
        Certification of Chief Financial Officer


32.1
        Section 1350 Certifications of Chief Executive Officer


32.2
        Section 1350 Certifications of Chief Financial Officer




* Incorporated by reference to Exhibit 14.1 to the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006.