Dragon Capital Group, Inc. Reports Financial Results for the First Quarter of 2014 Ended March 31, 2014
SHANGHAI, May 6, 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 first quarter of 2014 ended March 31, 2014.
For the first quarter of 2014, total revenues were $4.3 million compared to revenues of $4.2 million recorded in the first quarter of 2013. The increase in revenue was mainly attributable to an increase in sales of lower margin office equipment at the Company's Shanghai Zhaoli Technology Development Co., Ltd. ("Zhaoli"). Gross margins were 5.7% in the first quarter of 2014 compared to gross margins of 7.3% in the first quarter of 2013. Income from continuing operations in the first quarter of 2014 was $141,000 compared to income from continuing operations of $181,000 recorded in the first quarter of 2013. Net income attributable to Dragon Capital Group in the first quarter of 2014 was ($120.00) or ($0.00) per basic and diluted share on 586.3 million weighted average shares outstanding, compared to net income attributable to Dragon Capital Group of $72,000 resulting in earnings per basic and diluted share of $0.00 on 492.7 million weighted average shares.
At March 31, 2014, total assets were $9.8 million and shareholder equity was $7.6 million with 586.3 million common shares outstanding. At 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 $8.2 million at March 31, 2014 compared to $8.2 million at December 31, 2013.
Commenting on our results for the first quarter of 2014, Mr. Lawrence Wang, Chairman and CEO of Dragon Capital Group, "We achieved a small increase in overall revenue in the first quarter as a result of increased sales from of lower margin office equipment at our Zhaoli subsidiary. 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. We believe increasing sales at these subsidiaries will lead to improved performance in the coming quarters and help drive profitable growth in 2014 and beyond."
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
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.
Telephone: +1-954-363-7333 Ext 316
SOURCE Dragon Capital Group Corp.