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 third quarter and first
nine months of 2010 ended June 30, 2010.
Financial Highlights:
Revenue for the third quarter ended September 30, 2010 was $11.3
million as compared to $14.2 million recorded in the third quarter
of 2009. Cost of goods sold for the third quarter of 2010 were
$10.7 million compared to $13.3 million in the third quarter of
2009. Net income for the third quarter of 2010 was $951 as compared
to $198,900 recorded in the third quarter of 2009. The decrease in
revenue and net income was largely attributable to a decrease in
sales at our Huice and Longri subsidiaries which service the
information technology and networking industries.
Nine-Month Financial Results
Revenue for the first nine months of 2010 was $39.1 million, a
slight decrease from the $41.1 million recorded in the first nine
months of 2009. For the first nine months of 2010, net income
attributable to Dragon Capital Group Corp. was $126,900, a
significant improvement from the net loss of ($355,000) recorded in
the first nine months of 2009. The improvement in net income was
attributable to a reduction in selling expenses and a loss recorded
in 2009 from the sale of its Fomde subsidiary.
Balance Sheet
At September 30, 2010, total assets were $15.9 million with
$15.6 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 September 30, 2010, shareholder equity improved to $8.0
with working capital of $9.0 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 in the first nine months of 2010. Our bottom
line results have improved markedly when compared to 2009 and the
overall economic environment in China is strengthening. We continue
in our efforts to increase shareholder value as we look to trim
costs and improve our performance as we move through the remainder
of the year and gear up for 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
September 30, December 31,
-------------- --------------
2010 2009
-------------- --------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,550,977 $ 2,236,878
Accounts receivable, net of allowance for
doubtful accounts of $156,087 and
$152,533, respectively 5,491,594 5,568,519
Other receivables 1,423,633 1,179,751
Inventories 6,720,833 5,567,730
Investment in marketable securities 70,000 114,800
Prepaid taxes 23,374 -
Prepaid expenses and other 279,658 190,232
-------------- --------------
Total Current Assets 15,560,069 14,857,910
DERIVATIVE RECEIVABLE 54,978 54,978
DUE FROM RELATED PARTY 73,155 71,667
PROPERTY AND EQUIPMENT - Net 241,086 240,254
-------------- --------------
Total Assets $ 15,929,288 $ 15,224,809
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Loans payable $ 59,718 $ 102,381
Loans payable-related party 22,000 22,000
Accounts payable and accrued expenses 5,464,212 5,620,321
Other payable 845,782 685,206
Taxes payable 128,478 60,274
Advances from customers 1,553 1,521
Due to related party 116,895 141,031
-------------- --------------
Total Current Liabilities 6,638,638 6,632,734
-------------- --------------
EQUITY:
Dragon Capital Group, Corp.
Common Stock ($0.001 Par Value;
500,000,000 Shares Authorized;
312,735,578 and 259,644,578 shares
issued and outstanding at September 30,
2010 and December 31, 2009, respectively) 312,736 259,645
Additional paid-in capital 5,488,834 5,244,770
Accumulated retained earnings 1,273,412 1,146,484
Accumulated comprehensive income 902,841 760,092
-------------- --------------
Total Dragon Capital Group, Corp. 7,977,823 7,410,991
-------------- --------------
Noncontrolling interest 1,312,827 1,058,105
-------------- --------------
Total Equity 9,290,650 8,592,075
-------------- --------------
Total Liabilities and Equity $ 15,929,288 $ 15,224,809
============== ==============
See notes to unaudited consolidated financial statements.
DRAGON CAPITAL GROUP, CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
NET REVENUES $ 11,335,354 $ 14,165,556 $ 39,123,826 $ 41,065,365
COST OF SALES 10,743,203 13,299,065 37,079,454 38,746,832
------------ ------------ ------------ ------------
GROSS PROFIT 592,151 866,491 2,044,372 2,318,533
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Selling expenses 240,686 341,807 676,200 910,513
Loss on
disposition of
property and
equipment - - 1,609 -
General and
administrative 248,154 168,497 836,293 608,467
------------ ------------ ------------ ------------
Total Operating
Expenses 488,840 510,304 1,514,102 1,518,980
------------ ------------ ------------ ------------
INCOME FROM
OPERATIONS 103,311 356,187 530,270 799,553
------------ ------------ ------------ ------------
OTHER INCOME
(EXPENSE)
Other income
(expense) 1,588 142 (6,174) 2,847
Interest income
(expense) (7,316) (22,827) (16,477) (23,931)
------------ ------------ ------------ ------------
Total Other
Expense (5,728) (22,685) (22,651) (21,084)
------------ ------------ ------------ ------------
INCOME BEFORE
DISCONTINUED
OPERATIONS, INCOME
TAXES AND
NONCONTROLLING
INTEREST 97,583 333,502 507,619 778,469
DISCONTINUED
OPERATIONS:
Loss on sale
of Fomde
subsidiaries - - - (714,983)
Gain from
discontinued
operations - - - 5,603
------------ ------------ ------------ ------------
Total loss from
discontinued
operations - - - (709,380)
INCOME BEFORE
INCOME TAXES AND
NONCONTROLLING
INTEREST 97,583 333,502 507,619 69,089
INCOME TAXES (61,802) (42,838) (248,948) (218,220)
------------ ------------ ------------ ------------
NET INCOME (LOSS) 35,781 290,664 258,671 (149,131)
Less: Net income
attributable to
noncontrolling
interest (34,830) (91,762) (131,743) (205,956)
------------ ------------ ------------ ------------
NET INCOME (LOSS)
ATTRIBUTABLE TO
DRAGON CAPITAL
GROUP, CORP. 951 198,902 126,928 (355,087)
============ ============ ============ ============
NET INCOME (LOSS)
PER COMMON SHARE:
Net (loss)
income from
continuing
operations and
discontinued
operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
Weighted common
shares
outstanding -
basic and
diluted 310,344,274 259,644,578 295,222,640 259,644,578
============ ============ ============ ============
AMOUNTS
ATTRIBUTABLE TO
DRAGON CAPITAL
GROUP, CORP.
COMMON
SHAREHOLDERS:
Income from
continuing
operations, net
of tax 951 198,902 126,928 354,293
Loss from
discontinued
operations, net
of tax - - - (709,380)
------------ ------------ ------------ ------------
Net income
(loss) 951 198,902 126,928 (355,087)
============ ============ ============ ============
See notes to unaudited consolidated financial statements.
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: Investor Relations: Lillian Wong Tel: 954-363-7333 ext.
317
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