SOURCE: Dragon Capital Group Corp.

May 04, 2011 11:03 ET

Dragon Capital Group, Corp. Reports Financial Results for the Full Year of 2010

Revenue of $45.0 Million for the Full Year of 2010 Compared to $54.2 Million for the Full Year of 2009; Net Income for the Full Year of 2010 Improves to $153,000 up From a Net Loss of ($1.4) Million for the Full Year of 2009

SHANGHAI, CHINA--(Marketwire - May 4, 2011) - 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 full year of 2010 ended December 31, 2010.

Financial Highlights:

Revenue for the year ended December 31, 2010 was $45.0 million as compared to $54.2 million recorded in of the same period of 2009. Gross Profit for the year was $2.4 million compared to $3.2 million in the same period of 2009. The decline in revenue was largely attributable to a decrease in sales at our Huice and Longri subsidiaries which service the information technology and networking industries. Net income attributable to Dragon Capital Group for the 2010 year was $153,000 as compared to a net loss of ($1.4) million recorded in the full year of 2009. On an operating basis, the improvement in our net income was a result of a reduction of approximately $550,000 in operating expenses in 2010 as compared to 2009. Additionally in 2009 we recorded an other than temporary impairment loss of $1 million for our investment in marketable securities and a $600,000 loss from the sale of our Fomde subsidiary.

Balance Sheet

At December 31, 2010, total assets were $16.2 million with $15.9 million in current assets. This compares to total assets of $15.2 million with $14.9 million in current assets at December 31, 2009. At December 31, 2010, shareholder equity improved to $8.2 million with working capital of $9.2 million compared to shareholder equity of $7.4 million with working capital of approximately $8.2 million at December 31, 2009.

Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "While we experienced some softness in our networking and information technology subsidiaries in the quarter we remain extremely pleased with our performance for the full year of 2010. Our bottom line results have improved markedly when compared to 2009 and the overall economic environment in China is strengthening. We continue to develop new innovative system software while looking to trim costs and improve our performance as we move forward into 2011."

About Dragon Capital Group Corporation

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



               DRAGON CAPITAL GROUP, CORP. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET
                                (Unaudited)

         ASSETS

                                  December 31,   December, 31
                                      2010           2009
                                 -------------  -------------
CURRENT ASSETS:
    Cash and cash equivalents   $    1,967,299 $    2,236,878
    Accounts receivable, net of
     allowance for doubtful
     accounts
     of $157,358 and $152,912,
     respectively                    5,622,379      5,568,519
    Other receivables                1,386,183      1,179,751
    Inventories                      6,503,954      5,567,730
    Investment in marketable
     securities                        114,800        114,800
    Prepaid taxes                       24,380              -
    Prepaid expenses and other         240,079        190,232
                                    ----------     ----------
        Total Current Assets        15,859,074     14,857,910

DERIVATIVE RECEIVABLE                   54,978         54,978
DUE FROM RELATED PARTY                  73,751         71,667
PROPERTY AND EQUIPMENT - Net           227,507        240,254
                                    ----------     ----------
        Total Assets            $   16,215,310 $   15,224,809
                                    ==========     ==========

        LIABILITIES AND STOCKHOLDERS'EQUITY

CURRENT LIABILITIES:
    Loans payable               $            - $      102,381
    Loans payable-related party         42,000         22,000
    Accounts payable and
     accrued expenses                5,452,973      5,620,321
    Other payable                      970,157        685,206
    Taxes payable                       63,809         60,274
    Advances from customers              1,566          1,521
    Due to related party               110,240        141,031
                                    ----------     ----------
        Total Current
         Liabilities                 6,640,745      6,632,734
                                    ----------     ----------

EQUITY:
Dragon Capital Group, Corp.
    Common Stock ($0.001 Par
     Value; 500,000,000 Shares
     Authorized; 322,735,578 and
     259,644,578 shares issued and
     outstanding at December 30, 2010
     and 2009, respectively)           322,736        259,645
    Additional paid-in capital       5,548,834      5,244,770
    Accumulated retained
     earnings                        1,299,439      1,146,484
    Accumulated comprehensive
     income                          1,022,133        760,092
                                    ----------     ----------
        Total Dragon Capital
         Group, Corp.                8,193,142      7,410,991
                                    ----------     ----------
        Noncontrolling interest      1,381,423      1,058,105
                                    ----------     ----------
          Total Equity               9,574,565      8,592,075
                                    ----------     ----------
             Total Liabilities
              and Equity        $   16,215,310 $   15,224,809
                                    ==========     ==========





               DRAGON CAPITAL GROUP, CORP. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENT OF OPERATIONS
                                (Unaudited)

                                                     For the Year Ended
                                                        December 31,
                                                  -------------------------
                                                      2010         2009
                                                  ------------ ------------
NET REVENUES                                    $  45,011,272 $ 54,215,707
COST OF SALES                                      42,617,037   51,041,779
                                                  ------------ ------------
GROSS PROFIT                                        2,394,235    3,173,928
                                                  ------------ ------------

OPERATING EXPENSES:
     Selling expenses                                 819,880    1,181,686
     Loss on disposition of property and
      equipment                                         1,609            -
     General and administrative                       974,784    1,171,157
                                                  ------------ ------------
        Total Operating Expenses                    1,796,273    2,352,843
                                                  ------------ ------------
INCOME FROM OPERATIONS                                597,962      821,085
                                                  ------------ ------------

OTHER INCOME
     Other income (expense)                              (336)       2,878
     Interest income (expense)                        (17,190)      (7,909)
     Realized loss on other than temporary
      impairment                                            -   (1,005,200)
                                                  ------------ ------------
        Total Other Expense                           (17,526)  (1,010,231)
                                                  ------------ ------------
INCOME BEFORE DISCONTINUED OPERATIONS, INCOME
 TAXES AND NONCONTROLLING INTEREST                    580,436     (189,146)

DISCOUNTINUED OPERATIONS:
     Loss on sale of Fomde subsidiaries                     -     (662,005)
     Gain from discontinued operations                      -        5,603
                                                  ------------ ------------
         Total loss from discontinued operations            -     (656,402)

INCOME BEFORE INCOME TAXES AND NONCONTROLLING
 INTEREST                                             580,436     (845,548)
INCOME TAXES                                         (227,142)    (299,557)
                                                  ------------ ------------
NET INCOME (LOSS)                                     353,294   (1,145,105)
Less: Net income attributable to noncontrolling
 interest                                            (200,339)    (278,352)
                                                  -----------  ------------
NET INCOME (LOSS) ATTRIBUTABLE TO DRAGON CAPITAL
 GROUP, CORP.                                         152,955   (1,423,457)
                                                  ===========  ============

NET INCOME (LOSS)  PER COMMON SHARE:
   Net (loss) income from continuing operations
    and discontinued operations                   $      0.00 $      (0.00)
   Weighted commom shares outstanding - basic and
    diluted                                       300,893,036  259,644,578
                                                 ============= ============

AMOUNTS ATTRIBUTABLE TO DRAGON CAPITAL GROUP,
 CORP.
COMMON SHAREHOLDERS:
   Income from continuing operations, net of tax      152,955     (767,055)
   Loss from discontinued operations, net of tax            -     (656,402)
       Net income (loss)                              152,955   (1,423,457)
                                                  ============ ============




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.

Contact Information

  • Contact:

    Investor Relations:
    Lillian Wong
    Tel: 954-363-7333 ext. 317