SOURCE: Dragon Venture

May 23, 2006 08:00 ET

Dragon Capital Group Announces Financial Performance for First Quarter Ended March 31, 2006

SHANGHAI, CHINA -- (MARKET WIRE) -- May 23, 2006 -- Dragon Capital Group Corp (PINKSHEETS: DRGV), a leading holding company of emerging technology companies in China, today announced its financial performance (un-audited) for first quarter ended March 31, 2006.

Dragon Capital Group achieved consolidated revenues of approximately $7.685 million in sales for the first three months of 2006 with $464,897 in gross profit and $233,466 in net income. The shareholder equity was approximately $3.375 million as of March 31, 2006 with over $1 million in cash.

Lawrence Wang, CEO and Chairman of Dragon Capital, concluded, "As a company, we are very pleased to report the first quarter which resulted in strong revenues despite what is historically a weaker seasonal quarter. We expect to substantially grow our revenues and earnings organically as well as through acquisitions. Presently, we are evaluating two acquisition targets and we plan to consummate two more acquisitions in 2006. We are well positioned to execute on our stated business plan with a talented and experienced management team. We forecast we will generate $40 to $45 million in sales with over $2 million in net income in 2006 without additional acquisitions."

About Dragon Capital Group Corp

Dragon Capital Group Corp (PINKSHEETS: DRGV), formerly Dragon Venture, is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. As China emerges as a growing force on the global stage, DRGV's professionals will provide invaluable services for Western investors seeking to gain access to the Chinese high-tech economy. In addition, 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 of capital, merger & acquisition, business valuation, and revenue growth strategies. DRGV will develop a portfolio of high-tech companies operating in China. Our focus will be on innovative technological applications, which are poised to alter the competitive landscape of the industry. For more information about DRGV, please visit

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 words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or 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. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets.

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