Replies to post #518 on Dragon Capital Group Corp (DRGV)

[mobiman77]

Great news out. Low entry point here, huh? Could be a decent find and plenty out there chatting about it all of sudden.

Dragon Capital Group, Corp. Reports Financial Results for the First Quarter of 2010
Revenue Reaches $12.4 million for the First Quarter of 2010, Up from 11.9 Million for the First Quarter of 2009 Gross Margins Increase to 6.4% for the First Quarter of 2010, Up from 5.2% for the First Quarter of 2009 First Quarter 2010 Net Loss Narrows to ($151,800) as compared to ($678,500) in the First Quarter of 2009 Shanghai, CHINA-July 26, 2010 -- 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 first quarter ended March 31, 2010.

Financial Highlights:

Revenue for the first quarter ended March 31, 2010 was $12.4 million, a 4% increase over the $11.9 million recorded in the first quarter of 2009. Cost of goods sold for the second quarter of 2010 were $11.6 million compared to $11.3 million in the second quarter of 2010. Gross margins improved to 6.4% in the first quarter ended March 31, 2010, up from 5.2% in the first quarter of 2009. For the first quarter ended March 31, 2010 Dragon Capital recorded a net loss that narrowed to ($151,800) as compared to a net loss of ($678,500) in the first quarter of 2009. The improvement in net results was mainly attributable to a loss from the sale of discontinued operations in the first quarter of 2009 of (709,000) partially offset by an increase of $340,000 in general and administrative expenses in the first quarter of 2010.

Balance Sheet

At March 31, 2010, total assets were $15.8 million compared to $15.2 million at December 31, 2009. At March 31, 2010, shareholder equity was $8.5 million and total current assets were $15.5 million with working capital of approximately $8.1 million as compared to December 31, 2009 where shareholder equity was $8.6 million and total current assets were $14.9 million with working capital of approximately $8.2 million

Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon continues to post increasing sales in an environment that remains somewhat challenging. More importantly our gross margins have shown marked improvement as we continue to improve overall efficiencies. We are committed to achieving continued improvement in performance through the building of our core operations and will continue to look to opportunistically acquire new businesses and evaluate strategic alternatives for non-performing assets to further improve our operating results in the future. We continue to believe the high-tech industry within China has tremendous growth potential for the future and we remain focused on achieving improved results to increase our shareholder value."