Asia PR News

BEIJING, Feb. 27 /Xinhua-PRNewswire-AsiaNet/ –

Citing the impact of a move into new facilities and delays in the timing of
certain orders because of the Beijing Book Fair, Xinhua China Ltd. today
reported a net loss of $2.1 million for its second quarter ended December 31,
2005 on sales of $9.1 million. Results for the six-months included a net loss
of $3.8 million on sales of $25.2 million. The company noted it began
operations on February 1, 2005. As a result, comparative prior year data are
not available.

The company noted gross margin in the second quarter was 11.4 percent.
This compares with gross margin of 10.4 percent in the first quarter. For the
six month period, gross margin was 10.8 percent. The increase was the result
of a higher percentage of sales stemming from non-textbook titles, which carry
a higher margin.

"The second quarter was one of considerable change for Xinhua China," said
Mr. Xianping Wang, president and CEO. "Although we completed consolidation of
four older, less efficient distribution facilities into one larger, more
efficient facility late in the first quarter, that process continued to impact
our operations in the second quarter as the new facility was still being
organized. That move has already begun to yield benefits but it did disrupt
the processing of orders during the early part of the second quarter. As a
result, sales were lower than they would have been under normal conditions.
The fact that we were able to increase our gross margin despite the disruption
is an indication of the strength of demand for books in China and our position
in that market.

"Sales were also affected in the quarter by the timing of the Beijing
International Book Fair, held in early January. A number of orders we would
normally have recorded in the second quarter were pushed into the third
quarter as buyers chose to use the book fair to further refine and confirm the
selections they intended to purchase," Wang added.

Selling general and administrative expenses declined modestly in the
second quarter to $2.1 million from $2.3 million in the first quarter. The
decline is the result of actions taken earlier to modernize the operations,
the company said.

Just after quarter end, Wang said the company completed the first phase of
a financing that will ultimately provide it with an infusion of $4 million in
new capital. He noted that the proceeds from this transaction will be used to
update systems and for general corporate purposes.

"We are continuing to build an organization to meet the growing demand in
China for all types of books," Wang stated. "These steps being taken to
improve the efficiency of our operations are well-documented. Although we
have been in operation for less than a year, those steps are beginning to show
results in the way we conduct our business, from order processing to physical
delivery of the volumes to bookstores," Wang stated.

Wang said Xinhua China and its operating subsidiary, Xinhua Publications
Circulation & Distribution Co., Ltd., are complementing the improvements being
made in the physical distribution process with other measures to stimulate
sales volume. "We have not limited ourselves to operational improvements. We
are also engaged in marketing efforts to help booksellers and publishers gain
exposure for their books. The most significant of these efforts is the
development of Chapter One China, our system that allows buyers of books to
preview the first chapter through an on-line portal before making a purchase
decision. While still in the development stage, Chapter one already has
10,000 titles in its database and the rate at which books are being added is
accelerating. We envision a point in the not too distant future when any book
authorized in China may be previewed through Chapter One China, whether in
Chinese or any other language.

"The Chapter One China system will not only help bookstore operators in
managing their stock, it will eventually help individual consumers make
decisions about books to buy. Further, Chapter One should also be valuable in
helping us capture the growing fulfillment business in China. As on-line
booksellers emerge as a significant force in the Chinese market, they will
need a partner to fill orders they generate. We are uniquely positioned to
capture that business as the holder of the only national license for the
distribution of books and other publications in China," Wang added.

"The outlook for our business remains bright, although some results are
taking longer to achieve than we originally expected. The Chinese economy
continues to be one of the fastest growing in the world. The Chinese people
have greater access to information than ever before, stimulating the demand
for books. The internet is experiencing explosive growth, making purchase of
books, even in the most remote areas, much easier. All of these factors,
along with our proactive marketing through Chapter One and other initiatives,
should be factors in the growth of our book distribution business. It is,
however, important to note that we have still only been engaged for a matter
of months in modernizing a 70 year-old business that was previously run to
achieve political and social objectives," Wang concluded.

About Xinhua China
Xinhua China Ltd. is a US publicly traded holding company that, through
one of its subsidiaries, Xinhua Publications Circulation & Distribution Co.,
Ltd., holds a national license for distribution of books and other
publications in China. Xinhua China is involved in forming strategy,
operating and financing for Xinhua C & D. Xinhua China also interfaces with
the worldwide financial communities to inform them of the combined companies’
goals and developments. For more information, please call Mr. Alex Helmet at
1 800 884-3864 ext. 17 or visit its website at http://www.xinhuachina.com.cn .

Safe Harbor Statement
This news release may include forward-looking statements within the
meaning of section 27a of the UNITED STATES SECURITIES ACT of 1933, as
amended, and section 21e of the UNITED STATES SECURITIES and EXCHANGE ACT of
1934, as amended, with respect to achieving corporate objectives, developing
additional project interests, Xinhua China’s analysis of opportunities in the
acquisition and development of various project interests and certain other
matters. These statements are made under the "safe harbor" provisions of the
United States private securities litigation reform act of 1995 and involve
risks and uncertainties, which could cause actual results to differ materially
from those in the forward-looking statements contained herein.

Xinhua China Ltd.
(formerly Camden Mines Limited)

CONSOLIDATED BALANCE SHEETS
[Basis of presentation and going concern uncertainty]
(Expressed in U.S. dollars)

(Unaudited)

Dec. 31, 2005 Jun. 30, 2005
Assets
Current Assets
Cash $ 3,367,004 $ 1,336,269
Restricted Cash - 362,516
Account Receivable,
including related
party receivables
of $4,282,010
(June 30, 2005 - $5,926,629) 38,696,463 39,166,242
VAT receivable 4,500,038 5,964,445
Inventories 18,333,924 17,445,410
Prepayments 387,910 126,917
Total Current Assets 65,285,339 64,401,799

Property, plant and equipment 26,808,050 26,000,804
National distribution right 6,325,258 6,167,000
Goodwill 6,332,347 6,173,992
Total Assets $ 104,750,994 $ 102,743,595

Liabilities and Shareholder Equity
Current Liabilities
Account payable and accrued
liabilities $ 78,828,539 $ 76,231,392
Due to related parties 20,853,033 1,819,965
Total Current Liabilities 99,681,572 78,051,357
Convertible debenture net
of discount of $1,069,948 180,052 -
Warrants and beneficial
conversion 1,013,460 -
Loans from related parties - 19,514,229
Total Liabilities 100,875,084 97,565,586
Non-controlling interest 5,450,880 4,973,683
Commitments
Shareholders’ Equity (Deficiency)
Common stock, $0.00001 par value,
authorized 500,000,000,
outstanding 61,779,765 618 618
Additional paid-in capital 7,895,697 5,855,525
Accumulated other
comprehensive Income 22,185 53
Accumulated deficit (9,493,470) (5,651,870)
Total Shareholders’ Equity
(Deficiency) (1,574,970) 204,326
Total Liabilities and
Shareholders’ Equity $ 104,750,994 $ 102,743,595

Xinhua China Ltd.
(formerly Camden Mines Limited)

CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in U.S. dollars)
(Unaudited)

3 months Ended 6 months Ended 12 months Ended
Dec. 31, 2005 Dec. 31, 2005 June 30, 2005
Revenue
Sales revenue $ 9,146,838 25,215,829 $ 15,496,537
Cost of sales 8,102,395 22,504,822 13,584,466
Gross profit 1,044,443 2,711,007 1,912,071
Expenses
Selling, general
and administrative 2,110,829 4,402,245 4,211,480

Stock-based compensation 918,550 1,873,763 3,534,507
Total operating expenses 3,029,379 6,276,008 7,745,987

Operating loss before
interest, other income
(expense) and income tax (1,984,936) (3,565,001) (5,833,916)

Interest and other
income 186,591 252,274 66,430
Interest expense (495,743) (785,467) (520,875)

Income tax - - -
Loss before non-controlling
interest (2,294,088) (4,098,194) (6,288,361)

Non-controlling interests
share of loss 168,383 256,594 636,491
Net loss for the
period $ (2,125,705) (3,841,600) $ (5,651,870)

Loss per share - basic
and diluted $ (0.03) (0.06) $ (0.10)

Weighted average number
of shares outstanding
- Basic and diluted 61,779,765 61,779,765 55,733,786

At Xinhua China Ltd.: At The Investor Relations Company:
Alex Helmel Woody Wallace or Michael Arneth
Investor Relations wwallace@tirc.com or marneth@tirc.com
info@xinhuachina.com.cn (847) 296-4200
(604) 681-3864 (800) 884-3864

SOURCE: Xinhua China Ltd.

CONTACT: Alex Helmel of Xinhua China Ltd.,
Investor Relations,
+1-604-681-3864, or
1-800-884-3864;

Woody Wallace,
wwallace@tirc.com, or
Michael Arneth,
marneth@tirc.com,
+1-847-296-4200,
both of The Investor Relations Company

Web Site: http://www.xinhuachina.com.cn