SOURCE: China America Holdings, Inc.

May 04, 2010 07:00 ET

China America Holdings Provides Financial Outlook for 2010, Sees Company Reaching Profitability as End Markets Improve

SHANGHAI, CHINA--(Marketwire - May 4, 2010) -  China America Holdings, Inc. (OTCBB: CAAH), a holding company with a 56% equity ownership of its China-based subsidiary Shanghai AoHong Chemical Co., Ltd. ("Shanghai Aohong"), announced its financial outlook for its fiscal year 2010 ending September 30, 2010.

As a result of overall improvement in the Chinese economy, and continued growth of the middle class in China, the market demand for our refrigerant products has been rising significantly. Additionally, management sees the first 8,000 metric tons of processing capacity at its newly constructed production facility in Tianjin will begin generating revenue in the second half of 2010 and when fully operational, it will be capable of adding additional revenue into 2011 and beyond.

Taking these factors into consideration, management sees a significant improvement in its overall operations for the remainder of fiscal 2010. Management sees revenue at its Shanghai Aohong subsidiary exceeding $50 million for the fiscal year of 2010 with net income of $1.5 million. At the holding company level, accounting for its 56% ownership of Shanghai Aohong, management also expects overall net income to range between $500,000 and $700,000.

Mr. Shaoyin Wang, CEO of China America Holdings, commented, "We continue to see strong sales momentum in our 2nd quarter as compared to the same period a year ago, and we believe our business is benefiting from a number of macro-economic factors. As we look out into 2010 and beyond we see continued improvements as China begins to mandate the use of environmentally friendly refrigerants macro environmental factors. Our facilities in Shanghai and Tianjin are already geared for this transition which we believe will provide us with a significant advantage over our competitors further fueling our growth and overall margins into 2011. We are very excited about our company's prospects for growth for the remainder of fiscal 2010, and are committed to increasing our top and bottom line for the benefit of our shareholders."

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

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