Dragon-Tex (Group) Limited

Dragon-Tex (Group) Limited

March 03, 2005 18:11 ET

Dragon-Tex Announces Quarterly Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DRAGON-TEX (GROUP) LIMITED

TSX VENTURE SYMBOL: DTX

MARCH 3, 2005 - 18:11 ET

Dragon-Tex Announces Quarterly Results

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - Dragon-Tex (Group)
Limited ("Dragon-Tex" or "Corporation") (TSX VENTURE:DTX) announces the
financial results for the third quarter ending December 31, 2004. As the
result of the events that happened with the Corporation's wholly owned
Hong Kong subsidiary, South Champ Trading Limited ("South Champ"), and
that were announced in the Corporation's earlier news releases, the
Corporation has decided to write off its investment in South Champ. This
write off amounts to $6,225,977, which includes the cost of the
acquisition of South Champ valued at $3,182,936. With this write off,
the net loss for the 3rd quarter is $6,250,659. The loss per share on a
non-diluted basis is $0.354 and $0.322 on a diluted basis. The deficit
at the end of the quarter is $4,179,656. The Board of Directors of the
Corporation has taken measures to enable the Corporation to cancel a
number of shares held by certain original shareholders of South Champ.
If and when these shares are cancelled, the cost of the acquisition of
South Champ will be reduced accordingly.

The Corporation also announces that Vincent S.T. Lau has been appointed
the President and C.E.O of the Corporation on an interim basis. Mr. Lau
was a former director of the Corporation.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Dragon-Tex (Group) Limited
    Alan Chan
    Director and Secretary
    (403) 229-2337
    (403) 228-3013 (FAX)
    Email: alanchan@telusplanet.net
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.