LAS VEGAS and BEIJING, July 30 /Xinhua-PRNewswire/ -- China Holdings, Inc. (OTC Bulletin Board: CHHL), China-based diversified global asset holding company which engages in multiple China-focused business activities, including pharmaceuticals, real estate, utilities, energy and finance, today announced that the Company, through its wholly-owned subsidiary, China Power, Inc. has executed a definitive agreement to acquire 100% of Hunan Zhangjiajie Chalinhe Electric Power Co., Ltd and its Chalinhe Hydropower Plant, located in the middle reaches of the Lishui River, Hunan Province, China.
Terms and financing for the acquisition are expected to be announced upon closing.
Hunan Zhangjiajie Chalinhe Electric Power Co., Ltd. wholly owns the Chalinhe Hydropower Plant, consisting of a reservoir with a dam 95 meters high and a total land position of 90,064 square meters. Specifications for the dam consist of a dead water level of 77 meters, design flood level of 88.31 meters, check flood level of 92.81 meters and a total power generation capacity of 72,000 kW (4×1.8 ten thousand kW). The first stage of the power station is to be completed in December 2007, when approximately the total installed power production capacity will be 54,000 kW. Annual power generation is expected to be 280 million kilowatt hours (kWh) based on 5,185 annual operation hours. The electricity sale price is RMB 0.316 Yuan/kWh (approximately USD $0.042/kWh) with a sales contract with the China State Grid. In addition, the Chalinhe Hydropower Station has full legal approved CDM rights and full legal rights for development of an additional 18,000 kW capacity to bring the total power generation capacity to 72,000 kW. The total expected current annual power generating capacity is currently 280,000,000 kWh with expected current annual revenues of approximately approximately USD$12 million with expected net income of approximately USD $11 million.
The acquisition transaction is expected to be completed following final legal due diligence of Hunan Zhangjiajie Chalinhe Electric Power Co., Ltd and its Chalinhe Hydropower Plant, including the review of their audited financial statements to ensure they conform to US GAAP rules from the third quarter of 2005 through the second quarter of 2007.
China Holdings, Inc. and its wholly-owned subsidiary: China Power, Inc. engage in business activities and investments in Hydropower Plants, and companies in China, and/or worldwide, and expects to reach a total hydropower capacity from 150,000 kW to 1,000,000 kW annually within the next 1-4 years, primarily through mergers and acquisitions, joint-venture partnerships with hydropower plants and companies in China, and/or worldwide. The Company's Advanced Hydropower Renewable Energy Strategy & Plan is expected to improve the technical, societal, and environmental benefits of hydropower and provide investment and business activities in the cost-competitive hydropower capacity energy supply in China and worldwide, with a focus towards building the Company's long-term shareholder value.
The Company's objective is to achieve long-term capital appreciation through investments in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, and/or worldwide, and/or which derive a significant part of their revenue from China, and/or worldwide.
About Hunan Zhangjiajie Chalinhe Electric Power Co., Ltd and the Chalinhe Hydropower Plant
Hunan Zhangjiajie Chalinhe Electric Power Co., Ltd. was established in 1998 and is located in the Hunan province. The Company has registered capital of approximately USD $15.9 million and its scope of business involves the manufacture and sale of hydroelectricity under the People's Republic of China Laws. The company owns and operates the Chalinhe Hydropower Plant located in the middle reaches of Lishui River, Hunan province, China and is one of 13 step hydropower plants in the current plan for the Lishui River. Chalinhe Hydropower Plant has total power capacity of 72,000 kW (4×1.8 ten thousand kW). The first stage of project is expected be fully completed in approximately December 2007 with the total installed power capacity of 54,000 kW, or an annual power generation of 280 million kWh.
About China Holdings, Inc.
China Holdings, Inc. (OTC Bulletin Board: CHHL) is becoming a leading diversified global asset holding company. The Company and its subsidiaries engage in multiple China-focused business activities including pharmaceutical, real estate, utilities, energy and finance. Its objective is to achieve long- term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, and/or worldwide, and/or which derive a significant part of their revenue from China, and/or worldwide.
The Company has two wholly-owned subsidiaries: (i) China Power, Inc., and (ii) China Health Holdings, Inc. For more information, please see the Company's website at: www.chinaholding.net.
About China Power, Inc.
China Power Inc., a wholly-owned subsidiary of China Holdings, Inc. (OTC Bulletin Board: CHHL), is a development stage company with the goal of becoming a global leading energy holding corporation, that focuses on merger and acquisitions, investments, research and development, construction and operation of energy, and renewable energy, and environment protection projects in China and worldwide. It expects to capture China's growing energy, renewable energy, and environment protection projects domestically and worldwide.
For investor and media inquiries, please contact:
China Holdings, Inc. (OTCBB: CHHL) (Las Vegas, USA)
And Beijing
Julianna Lu
Chief Executive Officer
Tel: +86-10-6586-4770
Fax: +86-10-6586-4790
Mobile: +86-1370-133-1287
Email: info@chinaholding.net and/or lujulianna@yahoo.com
Website: www.chinaholding.net
Investor Relations International (Los Angeles)
Haris Tajyar, Managing Director
And Zachary Bryant, Vice President
Tel: 1-818-382-9700
Email: htajyar@inintl.com
Safe Harbor Statement: To the extent that statements in the press release are not strictly historical, including statements related to the completion of the acquisition, the Company's ability to fund the acquisition, revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, all forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements, which may accompany the forward-looking statements, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. In addition, the company disclaims any obligation to update or correct any forward-looking statements in all of the Company's press releases to reflect events or circumstances after the date hereof.
