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Making Inroads In The Chinese
High-Tech Market: Dragon Capital Group Corp. (Pink Sheets:DRGV)
By Glenn Wilkins - AllPennyStocks.com News Reporter
July 18, 2007 (AllPennyStocks.com Media
Inc.) – Pigs are very intelligent animals, and, for all their
heinous reputation, very clean ones. True, they'll roll around
in the mud during the summer to keep themselves cool, but
there is much about the breed worth admiring.
In China, 2007 is the Year of the Pig. Those born in the Year
of the Pig, which falls every 12 years, are thought to be
chivalrous, people who put all their energy into everything
they do. They pursue goals without letup, are eager for
knowledge and usually well informed.
Accordingly, Shanghai-based Dragon Capital Group is
expecting great things in this, the Year of the Pig, and
invite investors to revel that optimism as well.
With the Bamboo curtain slowly lowering in recent decades,
Dragon Capital Group
(OTCBB:DRGV)
was established to serve as a conduit between Chinese
high-growth companies and Western investors.
The company, trading on the Pink Sheets index under the symbol
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 and acquisition, business valuation and
revenue growth strategies.
The current focus of Dragon is on the development of wireless
3G-based (third-generation) applications and business
solutions. Two companies now under the Dragon umbrella are
among the leading providers of mobile Internet applications
and business solutions in China.
One of the company's goals, whether achievable specifically
this year or not, is to develop a suitably strong high-tech
portfolio to alter the competitive landscape of the industry,
and to emerge as a significant force in the Chinese high-tech
sector. Dragon has armed itself with professionals riddled
with experience in both the U.S. and China.
The company operates in the Far Eastern nation under a network
of subsidiaries. The most active ones include Shanghai Dragon
Capital Services, which provides small and medium private
technology enterprises with consulting services for obtaining
a listing on the U.S. stock market; Shanghai Yazheng
Information Technology, which develops information technology
in China by introducing advanced software and hardware
products from the U.S.; and Shanghai Zhaoli Technology
Development, which generated approximately $20 million in
sales in 2004, and approximately $26 million in sales in 2005
(all figures are in U.S. dollars unless specified otherwise).
Zhaoli distributes products for a wide array of manufacturers,
including Epson, Cannon, Hewlett Packard, Ricoh, Brother, Star
and Samsung. It's an impressive lineup.
Certainly, 2006 figures might trigger feelings of nostalgia if
the company were so inclined. Consolidated revenues came in at
$42.3 million, with net income before taxes around $1.47
million and consolidated net income after taxes and minority
interest deductions just over $586,000.
Total assets jumped last year, from 2005's total of $3.95
million to $10.1 million. Cash was also on an upward journey
of $763,000 in 2005 to $1.8 million.
As mentioned, the company expects great things for this year.
Unaudited figures for the first quarter of calendar 2007
showed revenues for the subsidiaries of $10.8 million, with
net income around $339,000 before taxes. Total assets rose to
$11.4 million from $10.1 million at the end of 2006.
Shareholder equity rose to $5.68 million from the $5.23
million at the end of 2006.
Responsible at least in part for this change in fortunes are
the members of Dragon's upper echelon. Lawrence Wang has been
chairman and CEO since 2005, besides helming the Shanghai
Yazheng Information Technology subsidiary. His background
includes a longtime professorial post in computer science at
Tongji University in Shanghai.
Daniel Gi has been a director of Dragon Capital, besides being
general manager of subsidiary Shanghai Fomde Information
Technology. He has been director of the artificial
intelligence laboratory at Tongji University.
Wuzhang Wang is a director of Dragon besides holding the
managerial post of the Shanghai Zhaoli subsidiary he founded
in the mid-1990s. He has since created an extensive sales
network for IT products.
The inroads Dragon Capital is making in acquiring new
subsidiaries and building its collective nest egg has yet to
crank-start its per share price. It was in mid-July 2006 that
the price hit its 10-cent peak for the last 52 weeks. The
price bottomed out in early June at two cents, before settling
into its current three-to-four-cent range. Perhaps more than
geography separates a company's fortunes from its equity
price.
But small cap investors would be well advised to
look over the recent favourable news Dragon has generated
before making a decision on whether to buy. They could find
themselves sharing management's optimism of further growth in
Dragon Capital, in the Year of the Pig.
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Although the majority of
AllPennyStocks.com reports are independent, it has received
compensation for carrying the report on Dragon Capital Group
Corp,
the compensation is five thousand dollars by the company
. This creates an inherent conflict of interest and readers
are encouraged to view the main disclaimer at
/aps_us/company_spotlights/archives/drgv.asp
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