SHANGHAI, China, November 12, 2013 /PRNewswire/ --
Dragon Capital Group Corp. (OTC: DRGV), a leading holding
company of emerging high-tech companies in China, announced today our financial results
for the third quarter and first nine months of 2013 ended
September 30, 2013.
Financial Highlights
For the third quarter of 2013, total revenues were $4.8 million compared to revenues of $5.1 million recorded in the third quarter of
2012. The decrease in revenue was mainly attributable to
lowers sales of office equipment at its Shanghai Zhaoli Technology
Development Co., Ltd. ("Zhaoli"). While gross margins were
4.1%, and improved from 3.2% recorded in the second quarter of
2013, they declined when compared the third quarter of 2012 where
gross margins were 5.5%. Net income attributable to Dragon
Capital Group in the third quarter of 2013 was $39,000 compared to net income of $97,000 recorded in the third quarter of 2012.
Earnings per basic and diluted share for the third quarter
rounded to$0.00 in both periods on 492.7 million and 362.7 million
weighted average shares respectively.
For the first nine months of 2013 total revenues were
$14.1 million compared to
$15.0 million for the first nine
months of 2012. Net income attributable to Dragon Capital
Group for the first nine months of 2013 increased to $158,000 as compared to net income of
$143,000 in the first nine months of
2012. Earnings per basic and diluted share for the first nine
months rounded to$0.00 in both periods on 492.7 million and 362.7
million weighted average shares respectively.
While management continues to see improving trends for the
coming quarters, sales at Zhaoli have lagged expectations and
revenue coming from its Shanghai Yazheng Information Technology
Company ("Yazheng") subsidiary as well as its Shanghai Zhiye
Software Development Company ("Zhiye") subsidiary has been slower
than anticipated. Yazheng offers gas line monitoring software to
maximize the efficiency and repair of utility gas lines while Zhiye
offers mobile solutions for Android, Windows Mobile and Apple's
iOS. As a result, the company now sees revenue and earnings
remaining flat to marginally higher in 2013.
Balance Sheet
At September 30, 2013, total
assets were $9.7 million and shareholder equity
was $7.6 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
$8.1 million at September
30, 2013 compared to $7.5 million at December
31, 2012.
Commenting on the results for the third quarter of 2013, Mr.
Lawrence Wang, Chairman and CEO of
Dragon Capital Group, "We are pleased with our overall performance
for the first nine months of 2013 in a challenging environment as
earnings thus far in 2013 have slightly outpaced the same period in
2012. Although sales at our software related subsidiaries
have not developed as quickly as anticipated, we have maintained
our profitability and remain confident that our efforts and
investments to position the company for future growth will be
rewarded in the coming quarters."
About Dragon Capital Group
Corporation
Dragon Capital Group Corp. (OTC: 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
DISCLOSURE NOTICE:
Dragon Capital Group Corp is hereby providing cautionary
statements identifying important factors that could cause our
actual results to differ materially from those projected in
forward-looking statements (as defined in such act). Any statements
that are not historical facts and that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
indicated through the use of words or phrases such as "will likely
result," "are expected to," "will continue," "is anticipated,"
"estimated," "intends," "plans," "believes" and "projects") may be
forward-looking and may involve estimates and uncertainties which
could cause actual results to differ materially from those
expressed in the forward-looking statements. We caution that the
factors described herein could cause actual results to differ
materially from those expressed in any forward-looking statements
we make and that investors should not place undue reliance on any
such forward-looking statements. Further, any forward-looking
statement speaks only as of the date on which such statement is
made, and we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
anticipated or unanticipated events or circumstances. New factors
emerge from time to time, and it is not possible for us to predict
all of such factors. Further, we cannot assess the impact of each
such factor on our results of operations or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements.
Contact:
Richard Galterio
U.S. Representative
Telephone: (954)363-7333
Facsimile: (954)726-2022
Email: info@dragoncapital.us
SOURCE Dragon Capital Group Corp.
