Shanghai, China¡ª(Market Wire ¨C 08/25/2009) - A new research report has been issued regarding Dragon Capital Group Corporation (Pink Sheets: DRGV) by Market Advisors, Inc. ¡°Fundamental Analysis for Today¡¯s Investments¡± with a "Speculative Buy" and a $0.047 intermediate price objective.? To view the report, please visit www.dragoncapital.us a leading holding company of emerging high-tech companies in China.?
Dragon Capital Group¡¯s (OTC: DRGV) mission is to be a leader in the development of wireless 3G-based applications and business solutions. Two companies that Dragon has acquired are among the leading providers of mobile Internet applications and business solutions in China.
NEWS FLASH
On June 30, 2009, total assets were $14.6 million compared to $15.9 million at December 31, 2008. In addition, 2009, shareholder equity was $7.1 million and total current assets were $14.3 million with working capital of approximately $7.8 million. Revenue for the first six months of 2009 reached $26.9 million, increasing by 20% from the $22.3 million recorded in the first six months of 2008. Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon continues to post increasing sales in this challenging environment¡±.
INITIATING COVERAGE
The Company offers consulting services for US enterprises seeking to invest in China DRGV directs client¡¯s management of investments in the Shenzhen and Shanghai stock markets Diversified across product categories, end markets, and geographic regions primarily in China. The Company has on board experienced professionals knowledgeable with both the laws and business practices of China. The Company has emerged as a profitable company in a difficult environment and improved in almost all balance sheet items including growing their cash position by approximately 12%. China has encouraged growth in many sectors - an abrupt change from state control
WHY CHINA
The Chinese government has relaxed laws and is allowing the formation of rural enterprises and private businesses, significantly opened foreign trade and investment, pulled back on state control over commodity prices, and invested in industrial production. They have also taken positive steps on educating its work force. Because of this, it is hard not to be bullish on China.
China has a vast populace and its large physical size alone mark it as a very powerful global force. Since encouraging the growth of rural enterprises and not focusing exclusively on the urban industrial sector, China has successfully moved millions of workers off farms and into factories without creating an urban crisis. In addition, China has allowed more outside intervention which in turn has spurred foreign investment. As a result, more jobs have been created linking China with world markets.
UPDATE
The Company was founded in 2000 and is lead by Mr. Lawrence Wang who serves as Chairman, CEO and General Manager of Shanghai Yazheng and has been its General Manager since their inception. Mr. Wang¡¯s goal is to lead DRGV in the high-growth potential in the universe of Chinese stocks publicly-traded in global stock markets. Analysts agree that over the next twenty to thirty years, it should be a golden period for a rising China. As China¡¯s influence of the world markets grows over time, many great investment opportunities will continue to emerge. We currently feel stocks like DRGV and similar stocks in related sectors are more promising than others. Current steps taken by the Chinese government to stimulate the economy will be a boom for many technology stocks. As a result, the sectors with the best potential will be those that stand to benefit from the rising middle class and its increased spending on transportation, food services, and especially consumer electronics, which is right where DRGV is positioned. Most financial professionals will recommend between 10-20% of a portfolio to be placed into international securities. Chinese stocks have been a popular securities selection for investment portfolios in recent years as their economy has been rising steadily. In fact, China has been posting double digit growth numbers for several years, and of particular interest, over the past couple of years when many other countries have faced economic problems.
KEY POINTS
While investing in stocks always has its risks, just like the US, China also has regulatory bodies in place designed to protect investors. These regulatory bodies monitor which companies are listed on the exchanges; audits are implemented with regularity, and buying and selling of securities are closely regulated. Regardless, any financial decision still needs to be carefully evaluated and should match the investment style and risk tolerance of the investor.
SUBSIDIARIES
Our positive outlook on Dragon Capital reflects our confidence in a management team focused on growth through acquisition and subsequent exploitation of capital-starved subsidiaries. Management has successfully employed this strategy over the past few years in both strong and weak markets. Current subsidiaries include: Shanghai Yazheng Information Technology Co., Ltd engaged in developing information technology in China by introducing advanced software and hardware products from the US. Shanghai Cnnest Technology Co., Ltd which is dedicated to commercial Third Generation (3G) wireless applications and mobile business solutions. In addition, Dragon also operates Shanghai Zhaoli Technology Co., Ltd, Shanghai Longri Technology Development Co., Ltd and Shanghai Hulce Electronic System Integration Co. Ltd. Please visit www.dragoncapital.us for additional details on these entities.
ANALYST
Officers of Market Advisors, Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investor Business Daily, Barron¡¯s, Forbes Magazine and The Dick Davis Digest to name a few.
About Market Advisors, Inc.
Officers of Market Advisors, Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investor¡¯s Business Daily, Barron¡¯s, Forbes Magazine and The Dick Davis Digest to name a few.
About Dragon Capital Group Corporation
Dragon Capital Group Corporation (OTC: DRGV) is a holding company serving as a business incubator for emerging Chinese businesses. Dragon currently controls subsidiaries operating in high-tech, IT products and services and management consulting. Three of the subsidiaries are growing strong recurring revenue streams from electronics hardware distribution and network integration. Dragon¡¯s wholly owned management firm, Shanghai Dragon, is expected to realize its initial revenue and profits in 2007. The company¡¯s other three subsidiaries, still in the emergent stage, are focused on wireless Internet applications, mobile business solutions, software development, enterprise management, computerized automations systems integration and network integration. For more information, visit, www.dragoncapital.us.
Forward-Looking Statements
All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the company or any person acting on the company¡¯s behalf are qualified by the cautionary statements in this section. The company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this report. Words such as ¡°expects,¡± ¡°anticipates,¡± ¡°plans,¡± ¡°believes,¡± ¡°scheduled,¡± ¡°estimates¡± and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of revenues, earnings, sector performance, cash flows or contract awards.. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation:
Contact:
Dragon Capital Group ¨C Investor Relations
Gary Liu
954-363-7333 ext. 318
