BEIJING, Feb. 21, 2007 (PRIME NEWSWIRE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) announced that its Chinese partners, the third and fourth members of its capital and growth expansion program, have completed the pre-audit process conducted by a certified public accounting firm in Beijing. The reports have been conveyed to U.S. auditing firms to commence the next phase, which is intended to result in U.S. public company status, perhaps during calendar year 2007. If completed, Genesis should receive a significant equity position in each new public entity.
The Chinese environmental technologies company, which provides power generation and industrial dyeing enterprises with proprietary cleanup equipment, has formally engaged an auditing firm in New York and a Shanghai-based law firm to handle its in-China legal matters.
Through November 2006, this "green power" company reported unaudited, net profits of about $4 million after taxes, an increase of nearly 100% from fiscal year 2005. Its total assets exceeded $15.5 million, based on information provided by the accounting firm.
The Chinese health foods beverage company completed the pre-audit procedure in February 2007. Now, it is in the process of formally engaging a qualified U.S. auditor. This Chinese company produces a wide array of beverages, including yogurt drinks that presently sell in California, in addition to its 15-province market coverage in China.
Through December 2006, this health foods beverage company reported unaudited, net profits of about $1.4 million. Its total assets exceeded $15 million, based on information provided by the accounting firm.
From his Beijing office, Genesis Director Dr. Shaohua Tan stated: "Additional candidate partner companies are being screened in China by the Genesis team. Our goal is to sign up 4-6 new partners in the next 12-18 months. Each could provide Genesis with substantial profits and assets enhancement.
"However, this is a challenging and risk-laden process. Followers of the Genesis 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 the receipt of such stock is contractual, Genesis still recognizes that such compensation is conditional on performance and specific deliverables," reminded Dr. Tan.
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.
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