BEIJING, May 23, 2006 (PRIMEZONE via COMTEX) -- Genesis Technology Group, Inc. (GTEC : genesis technology group inc com
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12:21am 05/23/2006
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GTEC0.18, -0.01, -5.4%) , a Chinese marketing and investment services company, conducted its Annual Shareholders Meeting on Friday, May 19th, at Beijing's China World Hotel. For those shareholders unable to attend, a synopsis follows:
-- The Company is cash flow positive and only growing stronger; its
clients are increasing in numbers and quality. Management remains
confident that the Company continues on the right course, as
profitability and sustainability remain the primary goal. The next
quarterly report should support this commitment.
-- The opportunity for merger has been a key focus since December
2005. Auditing issues, not to mention the expense of an audit has
been a concern for both parties. However, several other merger
opportunities have presented themselves to Genesis, including
another Chinese company that had over $300 million in revenues last
year. Possible merger candidates with Genesis should be nothing
short of enormous, from financial strength, market sector, to
management. Director Shaohua Tan concluded: "We are in an
excellent position. Our Chinese network and our growing financial
strength have provided us with this luxury. Completing a merger
that will enhance our shareholders' position is a top priority.
For good measure, management must revise its previous timeline
forecast."
-- The progress of Gold Horse International and Lotus Pharmaceuticals,
Genesis' equity partners, is excellent. In less than 90 days, both
companies could be trading, thus dramatically increasing the net
asset value of Genesis. Genesis provides a full circle, turn-key
service for partner companies. Genesis could have an admirable
equity position in five to 10 new public companies within the next
nine months in addition to its six current investments. When
partner companies begin to increase in market cap, as anticipated,
the net asset value of Genesis will increase as well. Prospective
investors can invest in Genesis, thus investing in as many as 10
different companies. If investors determine to invest only in
Lotus Pharmaceuticals, for example, Genesis would still receive
direct benefit.
-- From February 1st to the third week of May, the Company increased
in value about 500%. Seldom do public -- especially NASDAQ Bulletin
Board -- companies show straight line growth, as GTEC rose as much
as 1000% during the interim period. Management is unconcerned
about the vagaries of the day-trading market, as it is only
increasingly confident about the Company's successful business
model and future achievements. Management adheres to "let the
market be your guide" and that the long view is the only
significant perspective.
Chairman Gary Wolfson summarized the two hour, bilingual summit: "In our first four years as a listed company, 2006 is, by far, our best year to date. We are confident that our model will only improve, providing an excellent return to shareholders. We could not be more encouraged. We discussed the three major interest points: the Company's performance since February 1st, the status of the avidly discussed merger opportunity, and -- perhaps most important -- what we believe the future holds."
Kenneth Clinton, Genesis President, said: "Our New York auditor completed a 3-week visit to China, and our CFO joined us here now. These companies should be listed companies in the U.S. -- to the benefit of Genesis, Gold Horse and Lotus shareholders -- in 2006. Of course, we expect to announce several new Chinese clients promptly that could, in turn, be trading by year end."
A full power point of the proceedings is available on the company's website at www.genesis-technology.net
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