SOURCE: Dragon Capital Group Corp.

August 20, 2009 08:00 ET

Dragon Capital Group Corp. Reports Financial Results for the First Six Months of 2009

Revenue Reaches $26.9 Million for First Six Months of 2009 Up From $22.3 Million for First Six Months of 2008; Second Quarter 2009 Net Income From Continuing Operations of $124,500 Up From $31,000 in the First Quarter of 2009

SHANGHAI, CHINA--(Marketwire - August 20, 2009) - Dragon Capital Group Corp. (PINKSHEETS: DRGV), a leading holding company of emerging high-tech companies in China, announced today the company's financial results for the second quarter ended June 30, 2009.

Financial Highlights:

Revenue for the second quarter ended June 30, 2009 was $15.0 million, a 27% increase over the $11.8 million recorded in the second quarter of 2008. Cost of goods sold for the second quarter of 2009 were $14.1 million compared to $11.2 million in the second quarter of 2008. Net income from continuing operations for the second quarter of 2009 was $124,500, increasing from the $31,000 recorded in the first quarter of 2009. Net income in the second quarter of 2008 was approximately $215,000. This decrease in net income was largely attributable to an increase in selling expenses as a result of the challenging economic environment.

Six-Month Financial Results

Revenue for the first six months of 2009 reached $26.9 million, increasing by 20% from the $22.3 million recorded in the first six months of 2008. For the first six months of 2009, net income from continuing operations was $155,400 down from $450,800 in the first six months of 2008 and mainly attributed to higher selling expenses in 2009.

Balance Sheet

At June 30, 2009, total assets were $14.6 million compared to $15.9 million at December 31, 2008. At June 30, 2009, shareholder equity was $7.1 million and total current assets were $14.3 million with working capital of approximately $7.8 million.

Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon continues to post increasing sales in this challenging environment. More importantly our profitability has gained momentum from the first quarter of 2009 despite increases in selling expenses. We are committed to achieving continued top line and bottom line growth as we navigate through these challenging economic times. We believe the high-tech industry within China has tremendous growth potential for the future and we remain focused on achieving higher operating efficiencies which we believe can extend our profitability into the coming years. We continue to seek opportunistic acquisitions to grow our business as we work diligently to increase our shareholder value."

About Dragon Capital Group Corporation

Dragon Capital Group Corporation is a holding company serving as a business incubator for emerging Chinese businesses. Dragon currently controls seven subsidiaries operating in high-tech, IT products and services and management consulting. Three of the subsidiaries are growing strong recurring revenue streams from electronics hardware distribution and network integration. The company's other three subsidiaries, still in the emergent stage, are focused on wireless Internet applications, mobile business solutions, software development, enterprise management, computerized automations systems integration and network integration. For more information, visit, http://www.dragoncapital.us.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations, financial performance and, condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the company's reports filed with the Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Contact Information

  • Contact:

    Investor Relations:

    Gary Liu
    Tel: 954-363-7333 ext. 318