SOURCE: Jeantex Group, Inc.

May 03, 2006 15:16 ET

Jeantex Group Files Form 10KSB for FY 2005

LOS ANGELES, CA -- (MARKET WIRE) -- May 3, 2006 -- Jeantex Group, Inc. (OTC BB: JNTXE), a company engaged in the design, development, manufacturing, and marketing of consumer products for the apparel markets worldwide, today commented on financial results for the fiscal year ended December 31, 2005.

The Company had $1,335,659 revenues for the year ended December 31, 2005, which only included the operation of Jeantex, Inc. from June 30, 2005 through December 31, 2005, and no revenue during the year ended December 31, 2004. Figures for the year ended December 31, 2004 were restated to reflect the divestiture of Lexor International, Inc., which was completed on March 31, 2005. Cost of goods sold for the year ended December 31, 2005 was $689,677, compared to none in the same period ended December 31, 2004. Gross profit for the year ended December 31, 2005 was $645,982 or 48.36%, compared to none in the same period ended December 31, 2004, as a result of the restatement of the discontinued business of Lexor International, Inc., which operated a pedicure spa business at that time.

The Company incurred total operating expenses of $8,522,785 for the year ended December 31, 2005, as compared to none for the year ended December 31, 2004. The increase in operating expenses was primarily due to the increase in general and administration expenses, including non-recurring non-cash compensations for consulting and restructuring expenses in the amount of $7,435,260 during the current fiscal year.

The Company had a loss from operations of $7,876,803 for the year ended December 31, 2005, as compared to a loss from operations of $0 for the year ended December 31, 2004. This was mainly due to the increase in professional services, including one-time non-cash compensations for consulting and restructuring expenses, as well as general and administrative expenses.

The Company had a net loss of $7,862,094 from operations for the year ended December 31, 2005, as compared to a net loss of $0 for the year ended December 31, 2004. Taking into account the discontinued operations of Lexor International, Inc., net loss for FY 2005 was $6,476,914, or ($0.18) per share, based on the basic and diluted weighted average number of common shares outstanding for the year ended December 31, 2005, as compared to that of ($0.17) for the year ended December 31, 2004.

The Company's net financial results for FY 2005 were primarily due to one-time non-cash restructuring charges, which will not recur as the Company focuses on its new core business. The Company currently has net operating loss carry-forwards aggregating approximately $9,990,000, which will expire through 2025

The Company has been informed by NASDAQ that the letter "E" will be removed from the stock symbol on Thursday May 4, 2006.

About Jeantex Group, Inc.

Jeantex Group, Inc. (http://www.jeantexgroup.com), through its wholly owned subsidiary Jeantex, Inc., engages in the design, development, manufacturing, and marketing of consumer products for the apparel markets worldwide. The Company manufactures and markets new lines of uniquely designed premium jeans, T-Shirts, and accessories under the "Bone People" name and is a majority owner of Yves Castaldi Corp. (http://www.yvescastaldi.com), which designs high-end fashion collections under the 'Just Yves,' 'I Generation,' 'Instinct Yves,' and 'Yves Castaldi Raw Denim' brands.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

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