SOURCE: Dragon Capital Group Corp

August 29, 2006 08:30 ET

Dragon Capital Group Posts Financial Performance for the First Six Months of 2006

Revenues Increase to $18.1 Million

SHANGHAI, CHINA -- (MARKET WIRE) -- August 29, 2006 -- Dragon Capital Group Corp (PINKSHEETS: DRGV), a holding company of emerging technology companies in China, today announced its financial results (unaudited) for the first six months ended June 30, 2006.

The Company recorded revenues of approximately $18.1 million for the first six months of 2006. Income from operations was approximately $578,896 for the first six months of 2006. Net Income was approximately $298,455. Shareholder equity increased to $5,513,760. For more details about DRGV's financial performance, please review our financial statements at http://www.pinksheets.com/quote/finance.jsp?symbol=DRGV.

Since we acquired Shanghai Longri and Shanghai Huici effective on May 1, 2006, only two months financial performance from both companies has been consolidated into our six-month financial statements. The pro-forma revenues for the six months ended June 30, 2006 were approximately $23.265 million with $634,621 in pro-forma net income. The pro-forma revenues for the three months ended June 30, 2006 were approximately $15.58 million with $401,155 in pro-forma net income.

Lawrence Wang, CEO of Dragon Capital, stated, "We are very pleased with our financial performance in the second quarter for 2006. While we expect to maintain our recent growth in revenues and earnings in our core businesses, we will continue to evaluate new acquisition candidates. Our growth strategy will include internal as well as external growth through acquisitions in the coming fiscal quarters. Management is optimistic about our prospects, as we expect to substantially increase our sales and profit margins in all of our subsidiaries in the coming fiscal years. We believe we have laid solid foundation for years to grow."

About Dragon Capital Group Corp

Dragon Capital Group Corp (PINKSHEETS: DRGV) is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. DRGV functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access to capital, merger & acquisition, business valuation, and revenue growth strategies. DRGV has developed a portfolio of high-tech companies operating in China. For more information about DRGV, please visit http://www.dragoncapital.us

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the word expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.

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