China America Holdings, Inc. (CAAH.OB) reported a major upswing in revenue as it announced 2008 financial results. CAH is a holding company that holds 56% of its subsidiary, Shanghai Aohong Chemical Co., Ltd., and the increase was primarily due to the first full year of operating results from this subsidiary. Shanghai Aohong is a distributor of assorted liquid coolants, used primarily as refrigerants in air conditioning systems for automobiles, as well as residential and commercial air conditioning systems. Shanghai Aohong also manufactures steel non-refillable cylinders.
Revenues for 2008 increased to $34.97 million, compared to $16.20 million in 2007. In 2007, China America Holdings recognized only 6 months of revenue from Shanghai Aohong, as opposed to a full year of revenue in 2008. However, although income from operations in 2008 increased to $860,000, compared to a loss of ($406,000) in 2007, the company recorded a net loss for 2008 of ($561,000) after including a loss from its discontinued Biometric segment, a step which the company believes will substantially reduce overhead in 2009 and beyond. The overall results represent a significant improvement over the loss of $1.11 million reported in fiscal year 2007.
Mr. Shaoyin Wang, CEO of China America Holdings, commented on the positive news, â€œWe are very pleased with the overall results in our fiscal year 2008. We believe the performance of our Aohong subsidiary demonstrates that our growth strategy in China has improved our results significantly and we continue to look for opportunistic acquisition targets. Aohong’s strong performance in fiscal 2008 has allowed us to reduce our net loss by 50% as compared to the previous year and generate income from operations. We look forward to further improvement and growth for our operations in China as we seek to further reduce our general and administrative expenses. We remain committed to our growth strategy in China and are working diligently to grow our company for the benefit of our shareholders.â€
Shareholder equity for China America Holdings as of December 31, 2008, was $3.72 million, with 135.8 million shares outstanding.