2007-04-03 06:30 ET - News Release
BEIJING, April 3, 2007 (PRIME NEWSWIRE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) announced the signing of a contract with a major Chinese steel products company, as the fifth partner company in its private-to-public program. As reported by the Chinese company, fiscal year 2006 showed revenues of approximately $45 million, net income of $6 million, and net assets of $22 million. The Company reported annual revenue growth in excess of 20% for the past three years.
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As part of its suite of services for its steel products partner, Genesis has engaged a Certified Public Accounting firm in Beijing to perform the pre-audit and a Shanghai-based law firm to complete the requisite legal work. Upon completion of this stage of the process, the Company will engage a U.S. auditing firm to conduct a U.S. GAAP audit. The entire private-to-public program, under the "umbrella" subsidiary Genesis Equity Partners (GEP), is estimated to require 6 to 9 months, after which Genesis should earn a significant equity stake in the newly established public company, as it did with Lotus Pharmaceuticals, Inc. (OTCBB:LTUS) last year.
Dr. Shaohua Tan, who negotiated the contract with the steel products company, serves as the Genesis Director at its Beijing executive offices. Dr. Tan commented: "The GEP private-to-public program is a challenging process, requiring committed Chinese partners and experienced U.S. guidance. Coupling Genesis\' skill base with exciting, high-growth Chinese companies can produce benefits for all parties.
"We now have five partner companies in various stages of our program. With the exception of our newest partner, each of these partners has a U.S. corporate identity: (1) Lotus Pharmaceuticals, (2) Gold Horse International, (3) China Environmental Technologies, and (4) Oriental Health Beverages.
"Our fifth partner company, the steel products enterprise, is larger than previous clients and offers Genesis a compelling opportunity for shareholder value creation. With China\'s unrelenting growth and construction, our steel products partner is well poised for a bright future. We shall report as this company moves through the GEP program, as we will with Gold Horse and our two other identified partner companies. We anticipate signing additional partner companies in the near future," Dr. Tan concluded.
About Genesis Technology Group, Inc.
Genesis Technology Group, Inc. (d/b/a Genesis China and GTEC) is a U.S. public company that earns, enhances and markets equity positions in small to mid-sized Chinese enterprises. Commitment, dedication, and expertise are the key components to the Genesis "Mission Statement." It has created a successful profit center by incubating Chinese companies in a wide range of sectors, creating so-coined "partner companies." Genesis makes a long-term commitment with management consultation, board of directors composition, creation and implementation of successful business models, which include expansion of markets in China and abroad. To help drive the success and profitability of these operations, Genesis provides resources and proficiency to maximize partners\' leadership potential in China and attempts to increase high-margin, predictable earnings. For more information, visit http://www.Genesis-China.net.
Safe Harbor Statement and Disclaimer
Certain statements set forth in this press release constitute "forward-looking statements". Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply Future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company\'s actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company\'s ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company\'s limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company\'s business and financial results is included in the Company\'s filings, available via the United States Securities and Exchange Commission. The capital and growth program, the Company\'s central profit center, has specific risks and liabilities. Followers of our business model must understand that, until the Chinese partner company officially reaches public company status and files its initial Form 8-K, a high degree of risk exists that the partner may not ever attain that status. While receipt of a significant equity position in these companies is contractual, Genesis still recognizes that such compensation is conditional on performance and specific deliverables.
CONTACT: Genesis Technology Group, Inc.
Kenneth L. Clinton, President
Fax: (561) 988-9890
7900 Glades Road, Suite 420
Boca Raton, Florida 33434
United States of America