China America Holdings Begins Test Production at Its Newly Constructed Chemical Production Facility in Tianjin
11:07a ET April 15, 2010 (Market Wire)
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. [B]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."
China America Holdings Provides Financial Outlook for 2010, Sees Company Reaching Profitability as End Markets Improve
7:00a ET May 4, 2010 (Market Wire)
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."
