Ziyang Ceramics Corp - FORM 8-K/A - EX-99.2 - UNAUDITED PRO FORMA BALANCE SHEET AS OF SEPTEMBER 30, 2010 AND UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2010 AND THE YEAR ENDED DECEMBER 31, 2009. - July 7, 2011

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8-K/A - CHINA AMERICA HOLDINGS, INC. FORM 8-K/A DATED JULY 7, 2011 - Ziyang Ceramics Corpcaah8-k.htm
EX-10.1 - LEASE AGREEMENT DATED JANUARY 30, 2006 BETWEEN ZHUCHENG CITY, LUBIAO TOWN, WEST LUBIAO VILLAGE AND ZIYANG CERAMICS CO., LTD. - Ziyang Ceramics Corpexh10-1.htm
EX-10.5 - OPTION AGREEMENT DATED JUNE 29, 2011 BETWEEN BEST ALLIANCE WORLDWIDE INVESTMENTS LIMITED AND CERTAIN SHAREHOLDERS OF ZIYANG CERAMICS COMPANY LIMITED . - Ziyang Ceramics Corpexh-opt.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS OF ZIYANG CERAMICS COMPANY LIMITED AS OF DECEMBER 31, 2009 AND 2008 AND UNAUDITED FINANCIAL STATEMENTS OF SHAOXING HIGH SCHOOL AS OF SEPTEMBER 30, 2010 AND 2009. - Ziyang Ceramics Corpexh99-1.htm
EX-10.7 - 3% CONVERTIBLE PROMISSORY NOTE DATED JUNE 30, 2011 BETWEEN CHINA AMERICA HOLDINGS, INC. AND BEST ALLIANCE WORLDWIDE INVESTMENTS LIMITED. - Ziyang Ceramics Corpexh10-7.htm
EX-10.4 - SHARE TRANSFER AGREEMENT DATED JUNE 29, 2011 BETWEEN THE SHAREHOLDERS OF ZIYANG CERAMICS COMPANY LIMITED AND CHINA ZIYANG TECHNOLOGY CO., LTD. - Ziyang Ceramics Corpexh-sta.htm
EX-10.6 - SHARE EXCHANGE AGREEMENT DATED JUNE 30, 2011 BETWEEN CHINA AMERICA HOLDINGS, INC., CHINA ZIYANG TECHNOLOGY CO., LIMITED., AND BEST ALLIANCE WORLDWIDE INVESTMENTS LIMITED. - Ziyang Ceramics Corpexh-sea.htm
EX-10.8 - 3% CONVERTIBLE PROMISSORY NOTE DATED JUNE 30, 2011 BETWEEN CHINA AMERICA HOLDINGS, INC., CHINA DIRECT INVESTMENTS, INC. AND CAPITAL ONE RESOURCES, LTD - Ziyang Ceramics Corpexh10-8.htm
EX-10.3 - CONSULTING AGREEMENT DATED JUNE 13, 2011 BETWEEN CHINA AMERICA HOLDINGS, INC. AND CHINA DIRECT INVESTMENTS, INC. AND CAPITAL ONE RESOURCE CO., LTD. - Ziyang Ceramics Corpexh-con.htm
EX-10.2 - LEASE AGREEMENT DATED NOVEMBER 1, 2010 BETWEEN ZHUCHENG CITY, HUANGHUA TOWN, ZUPANSAN VILLAGE AND ZIYANG CERAMICS CO., LTD. - Ziyang Ceramics Corpexh10-2.htm
 
Exhibit 99.2
 
The following unaudited pro forma financial statements of China America Holdings, Inc., (“CAAH”) are based on, and should be read in conjunction with:

1.
CAAH’s audited financial statements for the fiscal year ended September 30, 2011, its unaudited financial statements for the quarters ended December 31, 2010 and 2009 and March 31, 2011 and the related notes thereto, which are incorporated by reference into this Current Report on Form 8-K;

2.
The audited financial statements of Zhucheng Ziyang Ceramic Co., Ltd, (“Ziyang”) for the years ended December 31, 2010 and 2009, the unaudited financial statements of Ziyang, for the three months ended March 31, 2011 and the "Management's Discussing and Analysis of Financial Condition and Results of Operations" for such periods, all of which appear elsewhere in this report.

The pro forma financial statements give effect to the reverse acquisition of CAAH and the consolidation of Ziyang as a wholly owned subsidiary, as well as the additional shares of common stock and convertible notes payable issued in conjunction with the reverse acquisition, as if the transaction had taken place on the date or at the beginning of the periods presented. The convertible notes payable were accounted for as equity in accordance with ASC 505 as they provide for automatic conversion into our common shares upon completion of the 400 to 1 reverse share split.

In addition, CAAH completed the sale of its only operational subsidiary, Aohong Chemical Co., Ltd, on June 10, 2011, rendering CAAH a shell company in accordance with SEC regulation AB. To provide more meaningful information reflecting the financial positions and results of operations of the shell company, the pro forma financial statements give effect to the sale of the discontinued operations, as if the transaction had taken place on the date or at the beginning of the periods presented.

In June 2011, shareholders of Ziyang formed China Ziyang Technology (“CZT”) under the laws of Hong Kong. On June 29, 2011, CZT acquired 100% of the equity interest in Ziyang from its shareholders for a consideration of RMB 50 million (approximately $7,692,000). On a consolidated basis, CZT’s financials were eliminated due to common ownership with Ziyang.

The unaudited pro forma financial statements of CAAH are for informational purposes only, are not indications of future performance, and should not be considered indicative of actual results that would have been achieved had the recapitalization transactions actually been consummated on the date or at the beginning of the periods presented.
 
 
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CHINA AMERICA HOLDINGS, INC. AND SUBSIDIARIES
  
UNAUDITED PROFORMA CONSOLIDATED BALANCE SHEET
  
March 31, 2011
  
                                   
   
China America Holdings Historical
    
Sale of CAAH Discontinued Operations
      
Ziyang Ceramic Historical
    
Pro Forma Adjustments
      
Pro Forma Consolidated
  
                                   
ASSETS
                                  
CURRENT ASSETS:
                                  
Cash
   $ 9,558             $ 6,007,343             $ 6,016,901  
Notes receivable
           $ 1,728,340  
(c )
                     1,728,340  
Accounts receivable
                       315,757               315,757  
Inventories, net
                       2,706,745               2,706,745  
Loan receivable
                       3,206,058               3,206,058  
Prepaid expenses and other assets
                       362,024               362,024  
Assets of discontinued operations
     38,192,385       (38,192,385 )                       -  
Total current assets
     38,201,943       (36,464,045 )       12,597,927               14,335,825  
                                           
Restricted cash
                       549,610               549,610  
Property and equipment, net
                       10,436,041               10,436,041  
Intangible assets, net
                       2,768,156               2,768,156  
Other long term assets
                       160,651               160,651  
                                           
Total assets
   $ 38,201,943     $ (36,464,045 )     $ 26,512,385     $ -       $ 28,250,283  
                                             
LIABILITIES AND SHAREHOLDERS' EQUITY
                                            
CURRENT LIABILITIES:
                                            
Loans payable - short term
                     $ 7,404,467               $ 7,404,467  
Notes payable
   $ 1,780,000     $ (1,780,000 )
(c )
     549,610                 549,610  
Notes payable-related party
     554,000                         500,000  
(e)
     1,054,000  
Accounts payable and accrued expenses
     92,586                 1,636,968                 1,729,554  
Other payables
                       881,342                 881,342  
Advance from customers
                       198,025                 198,025  
Dividend payable
                       3,053,388                 3,053,388  
Taxes payable
                       442,721                 442,721  
Due to related parties
     397,063                                   397,063  
Derivative Liability
     53,437                                   53,437  
Liabilities of discontinued operations
     27,788,227       (27,788,227 )                         -  
Total current liabilities
     30,665,313       (29,568,227 )       14,166,521       500,000         15,763,607  
                                             
Loans payable - long term
                       229,004                 229,004  
                                             
          Total Liabilities
     30,665,313       (29,568,227 )       14,395,525       500,000         15,992,611  
                                             
SHAREHOLDERS' EQUITY:
                                            
China America Holdings, Inc. shareholders' equity
                                            
Common stock
     192,711                       $ 236,014  
(a)
     428,725  
Additional paid-in capital
     20,566,787                 7,294,797       (20,854,700 )
(b)
     7,006,884  
Statutory reserves
     792,352       (792,352 )
(d)
     2,106,043                 2,106,043  
(Accumulated deficit ) Retained earning
     (20,884,101 )     765,415  
(d)
     2,125,797       20,118,686  
(b)
     2,125,797  
Accumulated other comprehensive income
     736,044       (736,044 )
(d)
     590,223                 590,223  
Total China America Holdings, Inc. shareholders' equity
     1,403,793       (762,981 )       12,116,860       (500,000 )       12,257,672  
Noncontrolling interest
     6,132,837       (6,132,837 )
(d)
                       -  
Total shareholders' equity
     7,536,630       (6,895,818 )       12,116,860       (500,000 )       12,257,672  
Total liabilities and equity
   $ 38,201,943     $ (36,464,045 )     $ 26,512,385     $ -       $ 28,250,283  


 
- 2 -
 
 
(a)
Denoted 236,013,800 shares of CAAH common stock issued to the former shareholders of Ziyang Ceramic at par value of $0.001.
(b)
Denoted: 1) 236,013,800 shares of CAAH common stock issued to Best Alliance Worldwide Investments, Limited ("BAW"), valued at $0.018 per share based on the closing price at the acquisition date of June 30, 2011.
               2) promissary notes convertible to 7,369,966 shares of CAAH common stock after giving effect to a 400 to 1 reverse stock split issued to BAW, deemed as temporary equity in accordance with ASC 505 as the terms provides for automatic conversion upon completion of the 400 to 1 reverse split. The promissory notes bear the nominal amounts of $14,739,932;
               3) promissary note convertible to 1,538,223 shares of CAAH common stock after giving effect to a 400 to 1 reverse stock split issued to consultants, deemed as temporary equity in accordance with ASC 505 as the terms provides for automatic conversion upon completion of the 400 to 1 reverse split. The promissory note is valued at $0.018 per share based on the closing price at the acquisition date of June 30, 2011;
               4) $500,000 as portion of the consulting fee to be paid to consultants; and
               5) elimination of CAAH shareholders' equity (excluding common stock)
(c )
The sale price of the discontinued operations was $3,508,340, settled through forgiveness of a note payable China America Holdings, Inc owed the purchaser of $1,780,000 and receipt of a note receivable of $1,728,340 the purchaser tendered to China America Holdings, Inc.
(d)
Denoted the elimination of equity items associated with the subsidiary sold and related loss from disposition of the subsidiary
(e)
Denoted the $500,000 consulting fee in the form of cash to be paid to consultants for services provided in conjunction with the acquisition.
 
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CHINA AMERICA HOLDNGS, INC. AND SUBSIDIARIES
  
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
  
YEAR ENDED DECEMBER 31, 2010
  
                               
   
China America Holdings
Historical
    
Sale of CAAH Discontinued Operations
      
Ziyang Ceramic
Historical
    
Pro Forma
Adjustments
      
Pro Forma
Consolidated
  
                                   
Net revenues
                 $ 31,101,051             $ 31,101,051  
Cost of sales
                   20,234,098               20,234,098  
Gross profit
                   10,866,953               10,866,953  
                                       
Operating expenses:
                                      
Selling expenses
                   171,631               171,631  
Consulting expense-related party
   $ 538,825                               538,825  
General and administrative
     143,662               1,646,333               1,789,995  
Total operating expenses
     682,487               1,817,964       -         2,500,451  
                                           
Income (loss) from continuing operations
     (682,487 )             9,048,989       -         8,366,502  
                                           
Other income (expenses):
                                          
Interest expense
                     (327,187 )               (327,187 )
Interest expense-related party
     (18,905 )                               (18,905 )
Other income (expenses)
     (105,806 )             (939 )               (106,745 )
Gain on change in fair value of derivative liability
     129,313                                 129,313  
Total other income (expenses)
     4,602               (328,126 )     -         (323,524 )
Net income (loss) from continuing operations before income taxes
     (677,885 )             8,720,863       -         8,042,978  
                                           
Discontinued operations:
                                          
Income from discontinued operations
     1,710,546     $ (1,710,546 )
(a)
                       -  
Loss on disposal of discontinued operations
     (2,902,212 )     2,902,212  
(a)
                       -  
Total (loss) income from discontinued operations
     (1,191,666 )     1,191,666                           -  
(Loss) income before income taxes
     (1,869,551 )     1,191,666         8,720,863                 8,042,978  
Income taxes
     (520,630 )     520,630  
(a)
     (1,452,993 )               (1,452,993 )
Net (loss) income
     (2,390,181 )     1,712,296         7,267,870       -         6,589,985  
Income attributable to noncontrolling interest
     (522,611 )     522,611  
(a)
                       -  
Net (loss) income attributable to China America Holdings, Inc.
   $ (2,912,792 )   $ 2,234,907       $ 7,267,870     $ -       $ 6,589,985  
                                             
Basic and diluted income (loss) per common share
                                            
Income (loss) from continuing operation
   $ (0.00 )   $ 0.00               $ 0.00       $ 0.00  
Income (loss) from discontinued operations
   $ 0.99     $ 1.01               $ 1.00       $ 0.00  
    $ 0.98     $ 1.01               $ 1.00       $ 0.00  
Weighted common shares outstanding- basic and diluted
     168,823,503       168,823,503                 3,799,289,400  
(b)
     3,968,112,903  
 
(a)
Denoted the elimination of results of operations derived from discontinued operations.
(b)
Denoted the shares of China America Holdings, Inc common stock issued in conjunction with the reverse acquisition, among which 3,184,000,200 shares were issued to the formor owners of Ziyang Ceramic Co., Ltd, and 615,289,200 shares were issued to consultants.

 
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CHINA AMERICA HOLDNGS, INC. AND SUBSIDIARIES
  
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
  
THREE MONTHS ENDED MARCH 31, 2011
  
   
     
China America Holdings Historical
     Sale of CAAH Discontinued Operations        
Ziyang Ceramic Historical
      
Pro Forma Adjustments
        
Pro Forma Consolidated
  
                                   
Net revenues
                 $ 7,483,617             $ 7,483,617  
Cost of sales
                   4,843,704               4,843,704  
Gross profit
                   2,639,913               2,639,913  
                                       
Operating expenses:
                                      
Selling expenses
                   49,256               49,256  
Consulting expense-related party
   $ 34,400                               34,400  
General and administrative
     19,875               473,684       -         493,559  
Total operating expenses
     54,275               522,940       -         577,215  
                                           
Income (loss) from continuing operations
     (54,275 )             2,116,973       -         2,062,698  
                                           
Other income (expenses):
                                          
Interest expense
                     (29,149 )               (29,149 )
Interest expense-related party
     (5,267 )                               (5,267 )
Other income (expenses)
     -               (38 )               (38 )
Gain on change in fair value of derivative liability
     6,608                                 6,608  
Total other income (expenses)
     1,341               (29,187 )     -         (27,846 )
Net income (loss) from continuing operations before income taxes
     (52,934 )             2,087,786       -         2,034,852  
                                           
Discontinued operations:
                                          
Income from discontinued operations
     565,259     $ (565,259 )  
(a)
                       -  
Loss on disposal of discontinued operations
     (316,997 )     316,997    
(a)
                       -  
Total income from discontinued operations
     248,262       (248,262 )                         -  
Income before income taxes
     195,328       (248,262 )       2,087,786                 2,034,852  
Income taxes
                       (353,178 )               (353,178 )
Net income
     195,328       (248,262 )       1,734,608       -         1,681,674  
Income attributable to noncontrolling interest
     (248,262 )     248,262   (a)                       -  
Net (loss) income attributable to China America Holdings, Inc.
   $ (52,934 )   $ -       $ 1,734,608     $ -       $ 1,681,674  
                                             
Basic and diluted income (loss) per common share
                                            
Income (loss) from continuing operation
   $ (0.00 )   $ 0.00               $ 0.00       $ 0.00  
Income (loss) from discontinued operations
   $ 1.00     $ 1.00               $ 0.00       $ 0.00  
    $ 1.00     $ 1.00               $ -       $ 0.00  
Weighted common shares outstanding- basic and diluted
     191,542,253       191,542,253                 3,799,289,400  
(b)
     3,990,831,653  
 
(a)
Denoted the elimination of results of operations derived from discontinued operations.
(b)
Denoted the shares of China America Holdings, Inc common stock issued in conjunction with the reverse acquisition, among which 3,184,000,200 shares were issued to the formor owners of Ziyang Ceramic Co., Ltd, and 615,289,200 shares were issued to consultants.



 
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