Investing in China — A Simple Formula for Unstoppable Growth
You would not travel to China unprepared nor can you invest there without a guide. Genesis Technology Group has rolled up their sleeves and done the hard work in finding investment companies in China with tremendous growth potential. Genesis has a strong ally in China, Dr. Shaohua Tan. Dr. Tan has spent the last 15 years in China in financing for the telecom industry. This experience provides three critical elements for investment:
1. Experience in high tech;
2. Intense understanding of finance and accounting standards;
3. On the ground, in-country contacts and experience.
Dr. Tan is the guide for GTEC.
Investing in China has many similarities to investing in the United States but it has some treacherous differences! Genesis provides an understanding of these potential investment pitfalls and bridges that divide for the investor. Dr. Tan understands Generally Accepted Accounting Principles required of U.S. companies and the Chinese environment and culture. He has experience in both both the audit and advisory services of the United States and China. It is this experience that makes the difference in company evaluation when Dr. Tan is working with Chinese advisory services managers. In a potential company’s evaluation, senior company managers and audit and assurance managers provide the input for review.
Dr. Tan has had direct exposure to a wide variety of companies and their financial structure. He is fully abreast of international accounting practices, such as the General Accepted Accounting Principles (GAAP) in the US and their implementation and application in Chinese companies. These standards are not currently required of Chinese companies though with Genesis this is an absolute prerequisite. US GAAP is considered to be the holy grail standard in accounting, providing the utmost transparency of financial issues.
The International Accounting Standard Board’s IFRS standards now govern one-third of global market capitalization. “IFRS-lite” will be implemented during 2007; these IFRS standards fall short of GAAP standards! So with a Genesis company an investor has a transparency of financial understanding not normally found in Chinese companies.
Chinese companies traded in the United States are governed by the U.S. Securities and Exchange Commission (SEC). SEC governed companies are subject to strict scrutiny. The SEC brings more actions and imposes much higher penalties — or “high intensity” enforcement — than most other nations. In 2005, the U.S. Securities and Exchange Commission (SEC) imposed $1.8 billion in penalties, a 60-to-1 ratio when compared to the agency’s equivalent in the U.K., the Financial Services Authority (FSA). Genesis guides a company in the strict SEC regulations.
Genesis is in the forefront of industry standards for their Chinese companies in the company’s definition of operating profit, cash flow presentation and clear identification of balance sheet movements in the income statement. From signing a partnership agreement with Genesis to attaining public company status in the U.S., these Chinese partner companies rely on Genesis to oversee all U.S. operations, participate as directors on each board, and serve as an experienced guide through the complex labyrinth of the U.S. capital markets.
Dr. Joshua Tan and Gary Wolfson, CEO in Beijing are pictured below:
Dr. Shaohua (Joshua) Tan, who serves as the unsalaried Senior Director of Genesis has the qualifications in experience in China to oversee these stringent financial standards. He has been instrumental since his initial participation since December 2005, in locating and analyzing the companies chosen by Genesis. Additionally, Dr. Tan is a tenured professor at Peking University educated at Stanford University in the United States with a Ph.D. from the Universiteit Leuven in Belgium. He is considered the country’s leading expert on artificial intelligence.
Dr. Tan was the Founder and CEO of CN2U Technology Ltd. that specialized in financing for telecom service businesses through direct investment. He also served as the M&A Founder and CTO of Aptronix Asia Pacific Electronics Ltd., helping to develop, manufacture and market multimedia communications systems and terminal products. Dr. Tan served as Founder/Chairman of such Chinese technology companies as Beijing CVC Communications Co. Ltd. (now a U.S. public company), Beijing Beida Xi Xin Software Technology Co. Ltd., and others.
Genesis and Dr. Tan understand the financial realities of small companies in China. In a nutshel,l the business environment in China which creates the financial synergies for growth are:
- Market inefficiencies and scarcity of available capital for these companies result in supply-demand imbalance which strongly favors investors
- Investors in Chinese companies can arrange terms that are significantly more lucrative than typical deal terms with comparable companies in other territories
- Much of the potential risk of investment in China can be mitigated through careful deal structuring and insistence on U.S. standards of accounting, reporting and governance
- Relatively modest upfront investment can be leveraged into consistently high returns; Substantial value can be created and captured by sourcing and intelligently structuring transactions
The pharmaceutical sector and the steel industries have tremendous growth opportunities both within China and internationally.
The World Bank yesterday raised its forecast for China’s growth this year to 10.4 per cent from an earlier 9.6 per cent. China’s economy expanded by 10.7 per cent in 2006, its fourth straight year of double-digit growth.
There is no question that world class companies will evolve in China. Genesis Technology Group is searching out these companies and nurturing them to their full potential.
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
Disclosure: Pentony Enterprises LLC has been compensated $3,600 and 265,000 restricted shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. It is the policy of Pentony Enterprises LLC to sell all shares of this and any company featured. Anyone considering any company we feature in consideration for free trading shares should consider this.
Forward Looking Statement: Certain sections of this report may contains forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of revenues, earnings, segment performance, cash flows, contract awards, aircraft production, deliveries and backlog stability. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation:
General and international political and economic conditions; All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the company or any person acting on the company’s behalf are qualified by the cautionary statements in this section. The company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this report.
StockGuru.com is owned and operated by Pentony Enterprises LLC, 9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (469) 252-3030. Web: StockGuru.com. Email: Publisher@stockguru.com.
