SOURCE: Golden Autumn Holdings, Inc.

September 17, 2007 11:16 ET

Golden Autumn Holdings, Inc. Announces Fiscal Third Quarter Financial Results

CHENGDU CITY, SICHUAN PROVINCE, CHINA--(Marketwire - September 17, 2007) - On August 20, 2007 Golden Autumn Holdings, Inc. (OTCBB: GAHI) filed its 10Q for the quarter ending 6/30/2007 and the prior periods for its fiscal year beginning 10/01/2006.

Financial highlights of the third quarter ending 6/30/2007 include:

--  Total revenue generated for the quarter was $5.2MM with a net loss of
    $1.5MM prior to a $.2MM gain on foreign exchange translation.
--  The Company's primary business segment - real estate development of
    senior assisted living residential housing - generated income from
    operations of $2.5MM for the quarter.
    

The positive results in the Company's core business are due to the successful completion and selling out of Phases I and II of its initial project, Chengdu Golden Autumn Garden located in Chengdu Province.

The quarterly loss of $1.5MM from operations includes a $2.4MM non-cash and non-recurring write-off from assets that were no longer financially realizable. These assets were historically required to be booked for accounting under GAAP by the company as successor to predecessor entities that were involved in a reorganization from a non-profit quasi-government entity that was privatized and then entered into a sino-US equity joint venture.

Charles Fu, President of Golden Autumn Holdings, commented, "We are very pleased with our third quarter results and believe that they are a reflection of the strong execution of our business plan. We expect that the market for self contained retirement communities in China will continue to grow rapidly and believe that Golden Autumn is uniquely positioned to build upon its leadership in this area."

The Company's original business in the cemetery and funeral products segment continues to generate minimal incremental revenue although the Company forecasts a return to significant revenue and profitability as competition lessens and the availability of new alternative sites decreases.

Commencing with this fiscal year the company has adopted a GAAP method that it believes presents the financial results of operations in a more realistic fashion considering the nature of its business. Accordingly the results reported herein utilize the percentage of completion method for revenue recognition and expense allocation for the timing and realization of these items. Prior to this results were reported on the completed contract method of accounting as prescribed by GAAP.

In continuation of the Company's business plan it has recently purchased additional land in Chengdu for a small-scale senior housing development that it plans to launch in October, 2007. This project will provide revenue until the Company secures financing for its major project planned for Loudai Town in Sichuan Province.

The Company has been able to generate a significant return on investment in its senior housing projects to date through a high turnover of capital, high gross margins and leverage. This experience coupled with market surveys show that realization of its forecasted profit expectations should continue to be met or exceeded.

On August 31, 2007 the Company obtained $1MM cash through the placement of a convertible note with a maturity of one year [see the Company 8K filed on September 7, 2007]. This was done in anticipation of the Company receiving an additional $6MM cash from a proposed private placement of convertible securities. Proceeds from these fundings are intended for the launch of its proposed Loudai Town project. Internal forecasts estimate over $67MM in revenue will be generated by this project over its four-year life from commencement in November 2007.

As the company goes forward it will be seeking projects in other areas of PRC. Given its credibility and past success as the pioneer in this new lifestyle concept for the elderly in self contained communities, the Company is poised to exploit this business opportunity. The Company's valuable in house expertise will be brought to bear to continue its leadership in this burgeoning market.

About Golden Autumn Holdings, Inc.

Golden Autumn Holdings, Inc. (OTCBB: GAHI) is the pioneer and industry leader in China engaged in the business of retirement community development and management. The company develops privately owned, luxury retirement communities/villages and also provides health care, food, entertainment and shopping services to its senior residents via the company's own health care centers, restaurants, entertainment centers and shopping centers. For more information please visit www.goldenautumn.net.

Safe Harbor Statement

Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, the effect of changing economic conditions, competition within the China senior living industry, customer acceptance of products, and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Contacts:

    Charles Fu
    Golden Autumn Holdings, Inc.
    Email Contact
    972-764-5355

    Jim Carini
    Winthorp Financial Communications
    Email Contact
    312-953-8319