Energroup Holdings Corporation (OTC:ENHD)

ENHD to terminate registration.

On August 16, 2010, Ms. Sharon Tang resigned from her position as Chief Financial Officer of Energroup Holdings Corporation, a Nevada corporation (the “Company”) to be effective immediately after the filing of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010.

Ms Shu Wang, who previously served as Chief Financial Officer of the Company, has assumed Ms. Tang’s duties and shall act in the capacity of Interim Chief Financial Officer until a replacement Chief Financial Officer is identified and appointed. The Board of Directors and the Company are actively seeking a permanent replacement for the role of Chief Financial Officer

Due to a shortage in supply, live hog prices rose significantly in 2008. Retail pork prices are an important component of China’s Consumer Price Index (CPI), a key inflation indicator. In order to moderate increases in the CPI and maintain the living standard of its lower-income population, the Chinese government (as it pertains to the pork industry) has implemented a number of policies to encourage pork production. The average pork price has declined somewhat from the first quarter of 2009, mainly because of perceptions arising from the appearance of swine flu in late April and early May. In June 2009, the Chinese government purchased and placed in storage large quantities of pork products in order to adjust the pork price in an effort to cause it to rebound to a reasonable level. As a result of this action, the prices of pork have been rising since July 2009, and have risen to a level higher than the prices seen during the first quarter of 2009. The prices are continuing to trend higher.

We expect that the combined factors of stricter hygiene regulations, increasing competition from well-financed players, and struggling meat suppliers, will induce industry consolidation in the coming years. We believe we are in a strong position to continue to take advantage of the Chinese government’s support for leading pork producers, these market consolidation trends, and the emerging hog supply situation. Management believes that this is a long-term trend.

Management believes that we need to broaden our geographic sales network and diversify our customer base. Our distribution network has been expanded to all three northeastern provinces where we have established our branches in the cities of Harbin and Daqing, Heilongjiang Province, and the City of Changchun, Jilin Province. A broader customer base can not only mitigate our reliance on certain big customers, but also bring us more opportunities. We believe a broader market for our products can increase demand for our products, reduce our vulnerability to market changes, and provide additional areas of growth in the future.

Management presently anticipates continued growth in volume of sales. Nevertheless, our ability to meet increased customer demand and maintain profitability will however continue to depend on factors such as our production capacity, availability of working capital, input costs, as well as the other factors described throughout this report..

Source: 10K

According to Make Good Targets, the EPS growth rate for 2008 will not meet the GeoTeam minimum 30% criteria. This is due to dilution issues  However, EPS growth for 2009, assuming the share structure does not change, is expected to meet the EPS 30% growth criteria.

The GeoTeam is attempting to verify data as it relates to insider ownership and institutional ownership.

Key financial targets with regards to the reverse merger transaction:

In connection with the Share Exchange Agreement, management entered into a 'make good agreement' and has placed 4.0 million of its shares in escrow to secure its obligations to meet specific 'Earnings per Share' targets for 2008 and 2009. If the targets are not achieved, a number of shares derived from a formula will be transferred pro-rata to the investors in the private placement.

Earnings targets:

1. $15.9 million in after-tax net income for 2008. (This would imply Earnings Per Share of .76 )

2. $20.9 million in after-tax net income and fully-diluted earnings per share of $0.99 for 2009,

GeoTeam Note: We are assuming that these targets assume the 2007 tax rate of 7.6%

Earnings targets adjusted for a fully taxed situation:

1. $11.38 million in after-tax net income for 2008. (This would imply Earnings Per Share of .54)

2. $14.96 million in after-tax net income and fully-diluted earnings per share of $0.71 for 2009.

Source SEC form 8-K ( January 7, 2008 )

ENHD is an illiquid stock, with a large bid/ask spread. as the Reverse Merger Shares are still not effective.

Outstanding Shares are approximately 21 million shares.