SHANGHAI, July 28, 2014 /PRNewswire/ -- Dragon Capital
Group Corp. (OTC: DRGV), a holding company of emerging high-tech
companies in China, announced
today its financial results for the second quarter and first six
months of 2014 ended March 31,
2014.
Financial Highlights
For the second quarter of 2014, total revenues were $5.0 million compared to revenues of $5.0 million recorded in the second quarter of
2013. Gross margins improved to 4% in the second quarter of 2014
compared to gross margins of 3% in the second quarter of 2013.
Income from continuing operations in the quarter was $5,880 compared to income from continuing
operations of $78,158 recorded in the
second quarter of 2013. The decrease in income was mainly
attributable to an increase in General and Administrative expenses
resulting from the issuance of stock-based compensation. Net income
attributable to Dragon Capital Group in the second quarter of 2014
was ($119,043) inclusive of a
($74,000) loss from discontinued
operations compared to net income attributable to Dragon
Capital Group of $23,378 inclusive of
a ($6,000) loss from discontinued
operations. In the second quarter of 2014 the Company's operations
resulted in a loss of ($0.00)
per basic and diluted share on 674.2 million weighted average
shares outstanding compared to earnings per basic and diluted share
of $0.00 on 492.7 million weighted
average shares recorded in the first quarter of 2013.
For the first six months of 2014 total revenues were
$9.3 million compared to $9.3 million in the first six months of
2013. For the first six months of 2014 the Company's
operations resulted in a net loss attributable to Dragon Capital
Group of ($119,000), inclusive of a
($114,000) loss from discontinued
operations. This compared to net income of $119,000 inclusive of a ($6,000) loss from discontinued operations
recorded in the first six months of 2013. Earnings per basic
and diluted share for the first six months rounded to $0.00 in both periods on 674.2 million and 492.7
weighted average shares respectively.
Balance Sheet
On June 30, 2014, total assets
were $9.7 million and shareholder equity was $7.5
million with 674.2 million common shares outstanding. On
December 31, 2013, total assets
were $9.8 million and shareholder equity was $7.5
million with 492.7 million common shares outstanding. Working
capital was $8.0
million on June 30, 2014 compared to $8.2
million at December 31, 2013.
Commenting on our results for the second quarter of 2014, Mr.
Lawrence Wang, Chairman and CEO of
Dragon Capital Group, "Our revenue has remained stable in the first
half of the year as we continue to work to build sales of higher
margin utility monitoring automation software and services at our
Shanghai Yazheng subsidiary, and mobile software applications from
our Shanghai Zhiye subsidiary. This effort has resulted in a small
increase in our gross margins in the quarter which we intend to
build upon in future periods. We believe we are on the right
track to increase sales in those higher margin businesses to enable
our Company to improve performance in the coming quarters and help
us achieve sustained profitability in the quarters and years to
come."
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: +1-954-363-7333 Ext 316
Facsimile: +1-954-363-7320
Email: info@dragoncapital.us
SOURCE Dragon Capital Group Corp.