Genesis Technology Group's First Quarter 2006 "Shows Significant Improvement" and Reaches Breakeven Status and Profitability Forecast
BOCA RATON, Fla., Feb. 22, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC message board, dd, quote, news), a business development and marketing firm that specializes in procuring opportunities in China, released its 10-QSB for the first quarter 2006. The results, in the view of management, have positioned the Company to reach profitability and positive cash flow in the next quarter.
CFO Adam Wasserman reported: "The financial condition of the Company, from the first quarter 2005 to the first quarter 2006, shows significant improvement. For the three months ended December 31, 2005, we reported a net loss of $223,123 or $(0.00) per common shares compared to a net loss of $1,144,716 or $(0.02) per common share for the three months ended December 31, 2004, a decrease of $921,593. For the three months ended December 31, 2005, our total operating expenses decreased by $894,749 compared to the three months ended December 31, 2004.
"This progress positions Genesis to reach profitability with its GEP profit center and other business development contracts showing good promise. In addition, the Company's stock holdings in SunWin (OTCBB:SUWN), Dragon Capital (Pink Sheets:DRGV), and other publicly trading companies have shown positive trends that could move Genesis to profitability and positive cash flow in the 2nd quarter 2006," concluded Mr. Wasserman.
Kenneth Clinton, Company President, who will be departing for China to meet with the previously announced (10-KSB 2005) merger candidate: "We have conducted three productive in-person meetings with our potential merger partner-in Gansu Province in China, in San Francisco and at our Florida headquarters-and we are confident that the March meetings in China could prove conclusive."
Genesis Technology Group Completes Sale of Subsidiary and Receives Over 18.5 Million Shares in Dragon Capital Group
BOCA RATON, Fla., Feb. 14, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC), a business development and marketing firm that specializes in procuring opportunities in China, announced that it has completed the sale of the Company's 80% ownership in Shanghai Chorry Technology Development Company, Limited (formerly known as "Zhaoli") to Dragon Capital Group Corp. (DRGV). The unanimous consent of the Genesis Board of Directors and a majority vote of outstanding shares held by Genesis Shareholders certified the sale.
Dragon Capital issued $500,000 worth of common stock to Genesis as consideration. The acquisition was based on the closing price of DRGV on December 15, 2005 at $0.027, resulting in Genesis obtaining in excess of 18.5 million shares. The average closing price for DRGV for this month through February 10th reached $0.625, giving the stock holdings a current value exceeding $1.15 million.
The details of the sale of the Chorry subsidiary appeared in the Company's 10SBK filed last month, which also reported that any debt related to registered capital, as required by Chinese law, has been contractually assumed by DRVG.
Genesis CEO Gary L. Wolfson said: "Management spent 2005 reorganizing both our business model and operations in China. Our expectations are to reach EBITDA profitability this quarter, and we also expect to reach positive cash flow shortly thereafter. The sale of Chorry was a key goal recognized by management for several compelling reasons. We are confident that completing this sale will prove to be a wise and beneficial decision."
CFO Adam Wasserman, upon returning from Brazil, commented: "We have spent the past several months reviewing in great detail every aspect of our business, and we are extremely excited with the opportunities. We are firm in our commitment to accelerate revenue, while closely managing our cost structure towards reaching profitability. We are confident in our ability to reach these near-term financial goals."
Genesis Equity Partners Acquires Interest in Chinese Real Estate Development Company
BOCA RATON, Fla., Feb. 2, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) announced that its subsidiary, Genesis Equity Partners, LLC, signed a contract with The Jin Ma Group Company, Ltd., a real estate development company in Western China, to globalize its operations in the areas of real estate, construction, and hospitality. To be known as Gold Horse International, Inc., the three divisions reportedly grossed over $20 million in revenues, almost $2 million in net profits in 2005, plus net assets exceeding $10 million. Genesis Equity Partners will receive a significant equity position in Gold Horse and ongoing consulting fees for coordination and oversight of its U.S. business activities.
GEP Director, Dr. Joshua Tan in Beijing, said: "Over the past three months, we screened about 10 Chinese companies, seeking the best candidates that desired to be a public U.S. entity. Gold Horse, named for a famous mountain in Western China, became GEP's top selection. It has excellent management, superior relations with the provincial government, and has consistent and increasing profitability in one of China's most alluring sector, construction and real estate.
"Many of our initial Chinese clients from this program have flourished. Sunwin International Neutraceuticals, Inc. (OTCBB:SUWN) and Telecom Communications (OTCBB:TCOM) experienced tremendous market success. Gold Horse is considerably our best and most exciting client to date," concluded Dr. Tan.
Mr. Yang Liankuan, CEO of The Jin Ma Group, explained: "We are confident that Gold Horse International, comprised of three profitable divisions in high growth industries, will prove appealing to the Western investment community. Genesis provides a program that is superior to others, and Jin Ma appreciates its management having focused exclusively on China for almost 14 years. We met with Dr. Tan in Beijing, and we are confident that Jin Ma will enjoy a long-term, prosperous relationship with Genesis."
Genesis Announces World Bank Group Invests $4.6 Million in New Chinese Distance Learning ProjectGenesis Technology Group, Inc. (OTC BB: GTEC) announced that the World Bank Group has invested $4.6 million in the China Vocational Education Satellite Network, the contract partner to its new subsidiary, Genesis Distance Learning Division (GDLD). Genesis management has estimated that its contract could have a value exceeding $10 million in profits for the Company in an industry estimated to yield billions of dollars globally.
Mr. Hong Kang, Chief Executive Officer of the CVE Satellite Network, commented: "Genesis management, with long-term success in bridging Chinese and Western business interests, should play a key role in our success in the United States. We are confident that Genesis can source our education partners at major U.S. universities, hospitals, and private companies. More than distance learning, we also believe that the CVE programs can result in better understanding and cooperation among peoples in different countries."
GDLD project manager, Ms. KeKe Zhang added: "We are impressed that the World Bank Group, through its International Finance Corporation, has invested $4.6 million in the CVE distance learning program. The confidence of this august body demonstrates the importance of the global education program."
Explains the International Finance Corporation: "The IFC promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives. IFC is a member of the World Bank Group and is headquartered in Washington, D.C." (For more information, see www.ifc.org)
Ms. Zhang continued: "With the backing of the World Bank Group and IFC, the CVE program has moved to a different level. Genesis has been nearly overwhelmed by the interest this distance-learning program has caused, since our initial announcement in early November. The $10 million in profits, forecast over the life of the CVE contract, may prove to be conservative."
Genesis Technology Group Establishes New Subsidiary for China Vocational Education Satellite Network Targeting $10 Million in ProfitsGenesis Technology Group, Inc. (OTC BB: GTEC) announced that it has established the Genesis Distance Learning Division (GDLD) to implement the China Vocational Education Satellite Network's global distance learning program. Genesis management estimates that the contract could have a value exceeding $10 million in profits for the Company in an industry estimated to yield billions of dollars globally.
The GDLD project manager, Ms. KeKe Zhang explained: "China Vocational Education Satellite Network is the premier distance learning platform sponsored by the National Center for Education Development & Research of Ministry of Education of People's Republic of China, owned and operated by Shanghai Aerospace Computer System Engineering Co., Ltd. After we announced our alliance about a week ago, we were inundated with inquiries from one of America's top-ranking graduate business schools, a Fortune 100 company, an accomplished distance learning public company, a respected undergraduate state university, and others.
"Now that we have established GDLD, we have started a search for a qualified General Manager, who is familiar with this burgeoning industry, has a complementary U.S network in the industry, plus can meet the standards of a bi-cultural, bi-lingual executive. We recognize that this is no easy task. By targeting $10 million in profits over the term of the CVE contract will require such leadership," concluded Ms. Zhang.
Mr. Hong Kang, Chief Executive Officer of the CVE Satellite Network, commented: "We selected Genesis because of its management's long-term success in bridging Chinese and Western business interests. We are confident that Genesis can source our educational partners at major U.S. universities, hospitals, and private companies. More than distance learning, we also believe that the CVE programs can result in better understanding and cooperation among peoples in different countries.
"With a curriculum covering medical, management, engineering, spirituality, marketing, accounting, business and finance, and more, CVE will create global classrooms through distance learning programs that target a registered student body numbering in the tens of millions," summarized Mr. Hong.
Genesis Management Posts Letter to Shareholders With Near-Term Profitability as the Major
GoalGenesis Technology Group, Inc. (OTC BB: GTEC) posted on its website a "Letter to Shareholders" that addresses the current state of the Company, with a retrospective, present status, and forecast for the future. The most positive aspect of the communication states that a "transformative merger," still in negotiations, with a major Chinese company could "vault the Company to sustained profitability, with brand recognition that is designed to 'go global'."
As to present action: Disposing of Chorry Technologies, the company's 80% owned subsidiary, is addressed and the Board of Directors holds the position that Chorry has been under performing for a myriad of reasons. The sale would result in the Company receiving $500,000 in common stock from another public company, which operates as a holding company of Chinese enterprises. Management and the Board of Directors strongly believe that this sale would be beneficial to the Company and its shareholders, especially in light of a prospective merger with another major Chinese company.
The letter concludes: "We are moving forward with our plan to integrate all of our operations into an enterprise that will be a premier provider of management services, assisting Chinese companies trying to penetrate US markets, and our outlook for the year is optimistic. We are excited about our growth opportunities and look forward to translating those opportunities into increased shareowner value." The letter in its entirety may be accessed at www.genesis-technology.netAbout Genesis Technology Group, Inc.Genesis Technology Group, Inc. is a business development firm that fosters bilateral commerce between Western and Chinese companies. Genesis has created successful profit centers in product development, manufacturing, distribution, joint ventures and operational services. The Company has fully staffed offices in the United States, Hong Kong and China. Genesis has established effective working relationships with various governmental agencies, public institutions, and private industries in China. For more information, visit www.genesis-technology.netSafe Harbor Statement
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.
