SHANGHAI, China, November 12, 2013 /PRNewswire/ --
Dragon Capital Group Corp. (OTC: DRGV), a leading holding company of emerging high-tech companies in China, announced today our financial results for the third quarter and first nine months of 2013 ended September 30, 2013.
For the third quarter of 2013, total revenues were $4.8 million compared to revenues of $5.1 million recorded in the third quarter of 2012. The decrease in revenue was mainly attributable to lowers sales of office equipment at its Shanghai Zhaoli Technology Development Co., Ltd. ("Zhaoli"). While gross margins were 4.1%, and improved from 3.2% recorded in the second quarter of 2013, they declined when compared the third quarter of 2012 where gross margins were 5.5%. Net income attributable to Dragon Capital Group in the third quarter of 2013 was $39,000 compared to net income of $97,000 recorded in the third quarter of 2012. Earnings per basic and diluted share for the third quarter rounded to$0.00 in both periods on 492.7 million and 362.7 million weighted average shares respectively.
For the first nine months of 2013 total revenues were $14.1 million compared to $15.0 million for the first nine months of 2012. Net income attributable to Dragon Capital Group for the first nine months of 2013 increased to $158,000 as compared to net income of $143,000 in the first nine months of 2012. Earnings per basic and diluted share for the first nine months rounded to$0.00 in both periods on 492.7 million and 362.7 million weighted average shares respectively.
While management continues to see improving trends for the coming quarters, sales at Zhaoli have lagged expectations and revenue coming from its Shanghai Yazheng Information Technology Company ("Yazheng") subsidiary as well as its Shanghai Zhiye Software Development Company ("Zhiye") subsidiary has been slower than anticipated. Yazheng offers gas line monitoring software to maximize the efficiency and repair of utility gas lines while Zhiye offers mobile solutions for Android, Windows Mobile and Apple's iOS. As a result, the company now sees revenue and earnings remaining flat to marginally higher in 2013.
At September 30, 2013, total assets were $9.7 million and shareholder equity was $7.6 million with 492,735,578 common shares outstanding. At December 31, 2012, total assets were $9.1 million and shareholder equity was $7.0 million with 492,735,578 common shares outstanding. Working capital was $8.1 million at September 30, 2013 compared to $7.5 million at December 31, 2012.
Commenting on the results for the third quarter of 2013, Mr. Lawrence Wang, Chairman and CEO of Dragon Capital Group, "We are pleased with our overall performance for the first nine months of 2013 in a challenging environment as earnings thus far in 2013 have slightly outpaced the same period in 2012. Although sales at our software related subsidiaries have not developed as quickly as anticipated, we have maintained our profitability and remain confident that our efforts and investments to position the company for future growth will be rewarded in the coming quarters."
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.
SOURCE Dragon Capital Group Corp.