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