China America Holdings, Inc., (OTCBB: CAAH), a holding company operating in both the United States and China announced today the results of operations for the second quarter of 2008 ending June 30, 2008. The Company reports revenue of $10,457,430 in the second quarter of 2008 as compared to $19,673 in the second quarter of 2007.
Net income for the second quarter of 2008 was $233,561 compared to a loss of $(490,080) for the second quarter of 2007. This represents the first quarter of profitability in the history of the company and more importantly since the company’s decision to move forward with its acquisition plan in China which began in 2007. The increase in revenue and profitability for 2008 was mainly attributable to the acquisition of Shanghai Aohong Chemical in 2007. In addition, China America reported its second straight quarter of record revenue. Management expects that the company will continue this trend for the remainder of 2008.
Commenting on the results Dore Perler, CEO of China America Holdings, Inc. stated, “We are extremely pleased to have reached this important milestone in the history of our company. When we embarked on our focused plan forged in early 2007, we were confident and have been tireless in our efforts to reach the goal of profitability in 2008. We are happy to have achieved that goal in this quarter and we expect to attain profitability for the full year. We recognize it is only the first step in building our company for the future. As we continue to expand Aohong and search for additional drivers to fuel continued growth, we remain committed to achieving further improvements in our top and bottom line performance for the benefit of our shareholders.”
About China America Holdings, Inc.
China America Holdings, Inc. (OTCBB:CAAH) is a holding company with operations in the U.S. and China. China America Holdings has two operating divisions.
Shanghai Aohong Chemical Co., Ltd. based in Shanghai, China, 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.shanghaiaohong.com/English/index.asp.
Sense Technologies, Inc., based in Ft. Lauderdale, FL, is a provider of biometric solutions and micro-sensor identification systems. Sense develops products targeting Homeland Security and offers solutions that improve and secure many business, military, and personal processes. Sense owns patents and intellectual property for a MEMS based explosives detection technology licensed through a national government laboratory. For more information about us, please visit our corporate website at http://www.chinaamericaholdings.com.
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, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: our ability to effectively integrate our acquisitions and to manage our growth and our inability to fully realize any anticipated benefits of acquired business; our need for additional financing which we may not be able to obtain on acceptable terms, the dilutive effect additional capital raising efforts in future periods may have on our current shareholders and the increased interest expense in future periods related to additional debt financing; our dependence on certain key personnel; the lack of various legal protections in certain agreements to which we are a party and which are material to our operations which are customarily contained in similar contracts prepared in the United States; our ability to assure that related party transactions are fair to our company; the business operating risks and hazards inherent in the segments we operate in; the effect of changes resulting from the political and economic policies of the Chinese government on our assets and operations located in the PRC; the influence of the Chinese government over the manner in which our Chinese subsidiaries must conduct our business activities; the impact on future inflation in China on economic activity in China; the impact of any recurrence of severe acute respiratory syndrome, or SAR’s, or another widespread public health problem; the limitation on our ability to receive and use our revenues effectively as a result of restrictions on currency exchange in China; our ability to enforce our rights due to policies regarding the regulation of foreign investments in China; our ability to comply with the United States Foreign Corrupt Practices Act which could subject us to penalties and other adverse consequences; and our ability to establish adequate management, legal and financial controls in the PRC.
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 year ended December 31, 2007.
Contacts:
Dore Perler, CEO, 954-726-1422 Ext 101
E-Mail:
dore@senseme.com
