Revenue of $45.0 Million for the Full Year of 2010 Compared to $54.2 Million for the Full Year of 2009
Net Income for the Full Year of 2010 Improves to $153,000 Up from a Net Loss of ($1.4) Million for the Full Year of 2009
Shanghai, CHINA. May 3, 2011 -- Dragon Capital Group Corp. (Pink Sheets: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 |
