Genesis Technology Group, Inc. newest “partner company” is a steel products company.
The Chinese Steel Products company partnered with Genesis reported for the fiscal year 2006 revenue 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.
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 a U.S. auditing firm will be engaged 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. last year.
The Genesis private-to-public program is a challenging process, requiring committed Chinese partners and experienced U.S. guidance.
There has been a huge demand for safe stocks in China’s strengthening steel industry. The combined net income of 99 large-and medium-sized steel plants in China soared 282 percent to 34.5 billion yuan in the first quarter of this year, according to the China Iron and Steel Association.
China’s April crude steel output hit a monthly record of 40.32 million tons as mills expanded to cash in on high prices at home and abroad, despite Beijing’s efforts to cool down the sector.
Official data showed April crude steel output rose 16.5 percent from a year ago, raising the total for the first four months by 21.2 percent to 155.09 million tonnes, or nearly 34 percent more than Japanese total crude output last year.
Steel products output also jumped 20.9 percent to 46.27 million tons in April. The total for the first four months was up 24.4 percent at 172.21 million tons.
“Steel production is out of control. But the steel-consuming industries are even crazier,” said Li Shijun, deputy secretary general of China Iron and Steel Association.
“The central government wants the steel sector to cool down, but not the local governments … They expand as long as they can make money,” Li told Reuters.
Separate data showed China’s factory output rose by a robust 17.4 percent in April from a year earlier, reflecting rebounding exports and the underlying strength of the world’s fourth-biggest economy.
A senior official from Baosteel, the country’s top steel producer, recently noted: “This year the steel production in China will remain at high levels because some new capacities have come on stream.”
“Both in China and outside, the market is optimistic,” said the official, who declined to be identified.
The strong April output data followed trade data for the month, which showed record steel product exports of 7.16 million tonnes — nearly three times the 2.70 million tonnes a year earlier.
Source: Genesis Technology, China Iron and Steel Association, Reuters News, Wall Street Journal
Genesis Technology Group, Inc.
Boca Corporate Plaza
7900 Glades Road, Suite 420
Boca Raton, FL 33434
Phone: (561) 988-9880
Fax: (561) 988-9890
Email: General Information: info@genesis-china.net
Investor relations: clinton@genesis-china.net
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