SOURCE: Dragon International Group Corp.

September 18, 2006 09:25 ET

Dragon International Group Announces Growth Strategy and Financial Forecast for 2007 and 2008

NINGBO, CHINA -- (MARKET WIRE) -- September 18, 2006 -- Dragon International Group Corp. (OTCBB: DRGG), one of China's leading manufacturers and distributors of specialty paper products and packing materials, today announced its growth plan and financial forecast for its next two fiscal years, ending June 30, 2007 and 2008. The Company's management anticipates the next two years' growth to be a combination of internal operations continuing to expand at a rapid rate and accretive acquisitions. Management forecasts revenues of $35 million and $57 million, anticipated to result in $2.17 million and $4.42 million of net income for each of 2007 and 2008, respectively.

Mr. David Wu, Chairman and CEO of Dragon International Group, stated, "Our current businesses offer opportunities to expand our existing product lines by introducing innovative solutions for our customers, as well as growing the customer base for our current products. We also expect to make acquisitions that we believe create high-margin revenue opportunities, as exemplified by our acquisition of Shanghai Jinkui. Shanghai Jinkui allows us to expand with several new products addressing the needs of the food and pharmaceutical packaging industries, industries where we did not previously have meaningful sales. There are numerous other acquisition candidates that are highly complementary to our existing businesses, so we expect to be able to make a number of opportunistic acquisitions over the next 2 years."

International trading is expected to account for the largest proportion of Dragon's revenues, with forecasted revenues of $15 million and $25 million over the next two fiscal years, and net income of $200K and $350K. Manufacturing is projected to produce 2007 revenues of $7.5 million, growing to $10 million in 2008, while generating net income margins of 8% to 10%. Shanghai Jinkui, anticipated to be Dragon's highest margin business, is forecast to generate $6.25 million in 2007 revenues, doubling to $12.5 million in 2008. In addition to 100% anticipated growth, Shanghai Jinkui is forecast to generate net income margins of 20% per annum, resulting in net income of $1.25 million in 2007, and $2.5 million in 2008.

Included in Dragon's forecast are additional acquisitions, anticipated to account for $6.25 million of revenues in 2007, and $10 million of revenues in 2008. Acquisitions are expected to add $600K to net income in 2007, increasing to $1 million of net income in 2008.

Mr. Wu concluded, "We are optimistic about our prospect in the next fiscal two years. Our goal is to improve our leading position in the production and distribution of specialty packaging industry in China. We believe we are well-positioned to grow our business substantially in the coming fiscal years, and remain extremely excited about the possible returns for our shareholders, which also includes every member of senior management."

About Dragon International Group Corp.

Dragon International Group Corp. (OTCBB: DRGG) is one of leading China's manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world's largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.

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. 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, including the Company's ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission at http://www.sec.gov.

Contact Information

  • Contact:
    Andrew Brown
    ROI Group Associates, Inc.
    Tel: 212-495-0202
    Email: abrown@roiny.com