Dragon Capital Group, Inc. Reports Financial Results for the Second Quarter and First Six Months of 2014

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: [email protected]

SOURCE Dragon Capital Group Corp.

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