SOURCE: China America Holdings, Inc.

April 15, 2010 11:07 ET

China America Holdings Begins Test Production at Its Newly Constructed Chemical Production Facility in Tianjin

SHANGHAI, CHINA--(Marketwire - April 15, 2010) -  China America Holdings, Inc. (OTCBB: CAAH), a holding company operating in China, announced today that its 56% owned China based subsidiary Shanghai AoHong Chemical Co., Ltd. ("Shanghai Aohong") has begun test run production at its newly constructed chemical production facility in Tianjin.

The newly constructed facility is located in Tianjin, approximately 70 miles north of Beijing. The facility is expected to produce approximately 8,000 tons of a mixture of refrigerant chemicals per year, virtually doubling Shanghai Aohong's total annual capacity. At today's prices, management estimates the facility is capable of generating annual revenue of approximately U.S. $22 million.

As previously reported, Shanghai Aohong's business improved substantially in its first fiscal quarter of 2010, ended December 31, 2009. This was due in part to an overall improvement in the Chinese economy as well as management's aggressive pricing strategy as it sought to gain additional customers in fiscal 2009. As the business climate returns to more normalized levels, management believes it will lead to an expanded customer base and stronger growth in the future. Management also believes its expansion into Northern China through the start of operations in Tianjin will significantly improve its overall financial performance in the second half of fiscal 2010.

Commenting on the start of production testing, Mr. Shaoyin Wang, CEO of China America Holdings, commented, "We are excited to begin this business expansion into Northern China as we now look to focus on growing our operations in an improving economic environment. Our Tianjin facility is expected to virtually double our production capacity and provide us with a platform to service the Beijing area. As we see continued improvement in our business segment we intend to aggressively seek to expand through our marketing efforts as well as to seek potential acquisition opportunities to further our growth in the coming years."

About China America Holdings, Inc.
China America Holdings, Inc. (OTCBB: CAAH) is a holding company which owns a 56% stake in Shanghai Aohong Chemical Co., Ltd. based in Shanghai, China. Shanghai Aohong Chemical Co., Ltd. is a distributor of assorted liquid coolants which are utilized in a variety of applications, primarily as refrigerants in air conditioning systems for automobiles, residential and commercial air conditioning systems, and a manufacturer of steel non-refillable cylinders. For more information, please visit http://www.caah.us.

Safe Harbor Statement
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China America Holdings, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, estimates of future revenue and financial performance in the second half of fiscal 2010, our expectations regarding the growth in our customer base and our expectations regarding production capacity and possible acquisitions.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2009.

Contact Information

  • Contact:
    Gary Liu
    U.S. Representative
    954.363.7333 ext. 318