Eternal Technologies Group Reports Profitable Year and Record Annual Revenue for
the Calendar Year
- - Cash Position increased from $16,302,464 to $27,473,354 for the current Year
End
HOUSTON-- May 13, 2005 -- Eternal Technologies Group, Inc. today reported
revenue for the year ended December 31, 2004 of $16,834,759 as compared to
$15,495,966 for the same period in the previous year. Net income applicable to
common stockholders for the year ended December 31, 2004 was $4,232,862, or
$0.14 per share, compared to net income applicable to common stockholders for
the previous year of $6,410,853, or $0.24 per share.
The balance sheet at December 31, 2004 included cash of $27 million, total
assets of $40,482,265 and total liabilities of $2,242,426.
Revenues increased by $1,338,793 or 9% to $16,834,759 for the year ended
December 31, 2004 from $15,495,966 for the year ended December 31, 2003. The
increase was primarily due to an increase in the sales of rolled mutton of
$3,436,012, dairy cattle embryo transfers of $2,951,807, and the sale of live
sheep of $92,723. These increases were partially offset by a decrease of
$668,795 in the sale of lamb meat, $4,450,602 in sheep embryo transfers and
$22,352 in the sale of sheep embryos.
The decrease in net income was primarily attributable to an increase in cost of
sales increased by $3,754,932 or 57% to $10,305,514 for the year ended December
31, 2004 from $6,550,582 for the year ended December 31, 2003. The decrease in
gross profit is attributable to a reduction in sheep embryo transfers which has
a higher profit margin and an increase in the sale of sheep meat and cattle
embryo transfers which has a lower gross profit margin. Gross profit as a
percent of sales decreased by 19.0% to 38.7% for the year ended December 31,
2004 from 57.7% for the year ended December 31, 2003.
Mr. JiJun Wu, Chairman of Eternal Technologies Group Inc. commented, "We are
very honored to report another successful year for Eternal. Despite our
disappointment with the circumstances surrounding the acquisition and then
ultimate rescission of E-Sea, we have increased our cash position to $27,473,354
while reporting record revenues for the year."
About Eternal Technologies
Eternal is a major agricultural genetics and biopharmaceutical R&D firm
operating in China with the support of the Chinese Government. Eternal's animal
breeding division has a strong asset base, cash position and net income. Eternal
has become one of China's leading institutions for biopharmaceutical and biotech
research, pure breed cultivation and breed stock production. The Company has
secured a key market niche by commercializing gene engineering technologies and
providing superior breeding stock, allowing China's citizens the ability to
improve their living standards. With the world's largest population, a
double-digit national growth rate and entry into the WTO, Eternal Technologies
has a playing field set for tremendous opportunity. As a prominent player in the
agricultural genetics industry, cash in the bank and an untapped market, Eternal
has the potential to become a major player in China's national growth.
The information contained in this press release should be read only in
connection with the company's Year End Report filed on Form 10-KSB for the year
ended December 31, 2004. Statements contained in this release, which are not
historical facts, may be considered "forward-looking statements" under the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
based on current expectations and the current economic environment. We caution
the reader that such forward-looking statements are not guarantees of future
performance. Unknown risk, uncertainties as well as other uncontrollable or
unknown factors could cause actual results to materially differ from the
results, performance or expectations expressed or implied by such
forward-looking statements.
Contact:
Contact:
Kenneth Maciora
Empire Relations Group Inc.
(516) 750-9719
Km@empirerelations.com or empirerelations@aol.com