Dragon Capital Group, Inc. Reports Financial Results for the First Quarter of 2013 Ended March 31, 2013
June 11 2013 - 9:00AM
Marketwired
Dragon Capital Group Corp. (OTC Pink: DRGV), a leading holding
company of emerging high-tech companies in China, announced today
our financial results for the first quarter of 2013 ended March 31,
2013.
Financial Highlights
For the first quarter of 2013, total revenues were $4.3 million
compared to revenues of $5.2 million recorded in the first quarter
of 2012. The decline in revenue was mainly attributable to a shift
in our business mix away from sales of low margin office equipment
at our Shanghai Zhaoli Technology Development Co., Ltd. ("Zhaoli")
and toward our higher margin software subsidiaries. This shift in
our business mix resulted in gross margins improving to 9%, an
increase of 114% compared to gross margins of 4.2% in the first
quarter of 2012. Net income attributable to Dragon Capital Group in
the first quarter of 2013 increased more than tenfold to $94,000
compared to net income of $9,200 recorded in the first quarter of
2012. Earnings per basic and diluted share rounded to$0.00 in both
periods on 492.7 million weighted average shares.
Management continues to see improving performance trends for the
remainder of 2013 through a rebound in sales at Zhaoli as
uncertainties associated with China's governmental succession which
took place in November of 2012 begins to abate as well as new
business coming from our software related subsidiaries. Our 2013
year will include the full marketing launch of the Gas GIS system
from our Shanghai Yazheng Information Technology Company
("Yazheng") subsidiary as well as the first full year of operations
from our Shanghai Zhiye Software Development Company ("Zhiye")
subsidiary which the Company acquired in December of 2012. Zhiye
offers mobile solutions for Android, Windows Mobile and Apple's
iOS. Zhiye has been working to develop a mobile programming
solutions platform to enable application developers in China to
easily and efficiently develop and modify applications to work
across the most popular mobile operating systems in China.
Balance Sheet
At March 31, 2013, total assets were $9.3 million and
shareholder equity was $7.2 million with 492,735,578 common shares
outstanding. At December 31, 2012, total assets were $9.1 million
and shareholder equity was $7.0 million with 492,735,578 common
shares outstanding. Working capital was $7.5 million at March 31,
2013 compared to $7.5 million at December 31, 2012.
Commenting on our results for the first quarter of 2013, Mr.
Lawrence Wang, Chairman and CEO of Dragon Capital Group, "We are
very pleased with our overall performance for the first quarter of
2013 as our efforts to increase margins and profitability have
begun to surface. In 2012 we returned to profitability and with our
new acquisitions and pending software launches we see further gains
in our performance in 2013 paving the way for a bright future ahead
for our company. While sales declined sharply at Zhaoli, in the
first quarter we anticipate a rebound in the coming quarters. With
the addition of our new higher margin software subsidiaries we
believe our performance in 2013 will build upon 2012 and set us up
for consistent improvement in the coming years as we grow our
company for the benefit of our stockholders."
About Dragon Capital Group Corporation
Dragon Capital Group Corp. (OTC Pink: 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
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: Dore Perler U.S. Representative Telephone: (954)
232-5363 Facsimile: (954) 726-2022 Email:
Dore@PearlGroupAdvisors.com
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