SHANGHAI, CHINA — (Marketwired) — 07/31/13 — 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 second quarter and first six months of 2013 ended June 30, 2013.
Financial Highlights
For the second quarter of 2013, total revenues increased to $5.0 million compared to revenues of $4.7 million recorded in the second quarter of 2012. The increase in revenue was mainly attributable to a rebound in sales of office equipment at our Shanghai Zhaoli Technology Development Co., Ltd. (“Zhaoli”) as uncertainties associated with China-s governmental succession in 2012 abated. Gross margins, however, declined to 3.2% from 4.4% as a result of a challenging pricing environment at Zhaoli and efforts associated with planned launch of the Gas GIS system from our Shanghai Yazheng Information Technology Company (“Yazheng”) subsidiary as well as the launch of mobile applications at our Shanghai Zhiye Software Development Company (“Zhiye”) subsidiary. Net income attributable to Dragon Capital Group in the second quarter of 2013 was $25,000 compared to net income of $37,000 recorded in the second quarter of 2012. Earnings per basic and diluted share for the second quarter rounded to$0.00 in both periods on 492.7 million and 362.7 million weighted average shares respectively.
For the first six months of 2013, total revenues were $9.3 million compared to $9.9 million in the first six months of 2012. Net income attributable to Dragon Capital Group in the first six months of 2013 increased more than twofold to $119,000 compared to net income of $46,000 recorded in the first six months of 2012. Earnings per basic and diluted share for the first six months rounded to $0.00 in both periods on 492.7 million and 362.7 weighted average shares respectively.
Management continues to see improving performance trends for the remainder of 2013. Sales at Zhaoli have rebounded as anticipated and new business coming from planned second half software launches at our Yazheng and Zhiye subsidiaries are expected to bolster results. 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. 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 June 30, 2013, total assets were $9.5 million and shareholder equity was $7.3 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 $7.9 million at June 30, 2013 compared to $7.5 million at December 31, 2012.
Commenting on our results for the second quarter of 2013, Mr. Lawrence Wang, Chairman and CEO of Dragon Capital Group, “We are very pleased with our overall performance for the first half of 2013 as sales at Zhaoli have rebounded as anticipated and our higher margin software businesses are poised to gain momentum with planned launches. We are confident in our belief that revenues from our gas monitoring contracts and success in current contracts up for bid will lead to a substantial increase in performance in the second half of the year. Additionally we see application launches at Zhiye driving further top and bottom line growth. We have consistently maintained our profitability while creating a springboard for sustainable top and bottom line growth in the coming years for the benefit of our stockholders.”
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
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.
Richard Galterio
U.S. Representative
Telephone: (954) 363-7333
Facsimile: (954) 726-2022
Email:
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