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Dragon Capital Group

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Dragon Capital Group Corp.
(OTC: DRGV)

Overview

An OTCPicks.com Corporate Profile
Dragon Capital Group Corp.

Dragon Capital Group Corp (OTC: DRGV) is a holding company of emerging Chinese companies.  DRGV currently holds a majority stake in five technology companies in China.  The company was established to cultivate business opportunities in China.  DRGV functions as a holding company of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access to capital markets, mergers & acquisitions, business valuation, financial management and revenue growth strategies.  The current focus of DRGV is on the development of 3G-based mobile applications, business solutions and information technology.

Dragon will emerge as a significant force in the high-tech sector of China.  Employing its knowledge of Chinese and U.S. business practices, Dragon is establishing brand awareness by nurturing these Chinese companies.  Dragon's organization is comprised of business professionals with experience in the US and China. This knowledge will be critical to the success of Dragon.  The principals of DRGV will explore specific opportunities within the following industries; telecommunication, information technology, and wireless applications.

Dragon has developed a portfolio of five high-tech companies operating throughout China.  Dragon's focus will be innovative technological applications, which are poised to alter the competitive landscape of the industry.

The seven subsidiaries are:

Shanghai Dragon Capital Management and Consulting Company, Limited, Investment management firm (wholly owned subsidiary)

Shanghai Yazheng Information Technology Company, Limited, Information technology firm (90% interest)

Shanghai Cnnest Technology Company, Limited, 3-G Wireless application developer (55% interest)

Shanghai Fomde Information Technology Company, Information system integration developer (51% interest)

Shanghai Zhaoli Technology Company, Limited, Hardware reseller, ERS software developer (80% interest)

Shanghai Huice Electronic System Integration Company, Limited (51% interest) Network integration and the distribution of information technology products

Shanghai Longri Technology Development Company, Limited (51% interest) Network integration, network service, and IT products distribution.


Investment Highlights

  • Holding company of high-tech companies in China, publicly traded on the U.S. stock exchange
  • Profitable company, strong recurring revenue streams with little debt
  • Clear, focused business strategy for substantial growth in world's largest market
  • Strong balance sheet
  • Experienced management team with extensive industry knowledge


Market Overview and Potential

China is the latest investment frontier for growth oriented investors seeking a new opportunity.  The combination of China's massive size and rapid modernization is creating one of the greatest investment opportunities of the 21st Century.  The Chinese government is increasingly encouraging entrepreneurial spirit amongst a nation of 1.3 billion people.  Numerous startups and high growth companies have hit the ground running, contributing to China's rapid GDP growth.

China is a dynamic market for international investors.  China is the world's fourth largest country and the world’s fastest-growing economy.  Developing effective and profitable investments in China is undoubtedly the greatest single opportunity for investors today.  Since 1978, when China opened its doors to the outside world, China has enjoyed tremendous annual economic growth.  

China has the world's fastest growing economy, on average, at better than 9% per year for the past 25 years.  China's economy is growing seven times faster than the U.S. economy and has doubled GDP growth each of the past seven years.  China's economy is the fourth largest in the world, behind only the U.S., Germany, and Japan.  China is the world's single biggest recipient of foreign direct investments.  China's accession to the World Trade Organization is widely expected to trigger a further wave of inward investment from foreign companies as the terms of entry to new sectors of the China economy are progressively liberalized.

In coming to terms with China's investment opportunities, the first thing to try grasping is China's sheer scope.  At 3.7 million square miles, with a population of 1.3 billion, there are over 200 million Chinese with disposable income over $10,000 in 2004.  As 1.3 billion Chinese cross the middle-class threshold, China's economy will surpass the U.S. economy. 

China Telecommunications Industry

The telecom market in China is an emerging industry.  Presently industry sources indicate the penetration rate at 30% of the population: our management believes there is still considerable room for a company like Dragon Capital to become a major player in the Chinese telecom landscape. 

According to the China Business Weekly (January 18, 2004), there were approximately 200 billion text messages transmitted by over 270 million cell phone subscribers in 2003.  According to a report by Ministry of Information Industry of China, there were over 500 billion text messages transmitted over 350 million cellular phone users in 2004.  The China Industry Report in 2004 projected levels of cell phone use to be over 500 million by 2006.  The Chinese refer to this SMS boom as the "thumb economy", which generated over $2 billion in revenues in 2003, an increase of 15 times from $248 million in 2003.

The Short Messaging Services (SMS) telecom niche is a cultural phenomenon in Asia.  According to the Ministry of Information Technology of China, SMS usage in China accounts for one-third of the world's traffic.  SMS is a fast, inexpensive and convenient way to facilitate the sharing of information.  Dragon is an early bird in the booming "thumb economy", and has set its sights on enabling business applications via mobile phones.

The "thumb economy" is exploding!  SMS is a telecom niche that is quickly gaining abroad.  Yet the commercial markets for SMS solutions relatively untapped.  According to Jia-Bin Duh, the head of Cisco China, the Chinese telecom market is expecting faster growth.  In 2002, China surpassed the US as the number one mobile market in the world.  China Mobile and China Unicom currently rank as the number one and number three mobile carriers in the world.

Over the last decade, the Chinese telecom sector has gone through certain key reforms that have taken highly regulated market dominated by the monopolistic China Telecom into a market featuring competition.  Dragon  has set its sights on a very healthy segment of telecom and has made inroads, partnering with the leading Chinese telecom companies in China including China Mobile, China Telecom and China Unicom to bring cutting-edge SMS 3G-based technology and business solutions to an expansive list of Chinese companies.

The Chinese telecom industry is facing great opportunities in 2006. One of the major drivers lies in the 3G licenses. The Chinese government has been delaying issuing 3G licenses, keeping the global telecommunication industry in a state of suspense. It finally showed some certainty in December. Minister of Information Industry, Wang Xudong, said on December 27, 2005, China would "finish formulating policies for the development of 3G technology and business" in 2006. He also laid out plans for 3G deployment in detail.

3G technology presents great profitability potential after the initial two to three years, due to rising number of subscribers and increasing high-margin services. Therefore, who's going to get the license and who's not will make a big difference in the industry competitive landscape. However, 3G technology requires enormous initial capital investment, which introduces huge operating risks at the beginning phase. Therefore, obtaining the 3G license itself does not guarantee a success, the ability to implement and operate it via a correct strategy will remain crucial. In a word, 2006 will be a critical year for the Chinese telecom industry, when the major players will fight for their share in the new arena.

The company's management team believes that the company has a significant opportunity in the SMS business user marketplace, a segment of the niche market that offers a substantial amount of growth potential over the consumer marketplace for a company like Dragon Capital.


Recent DRGV News:

June 5 - Dragon Capital Group Reports First Quarter 2007 Revenues From Its Six Subsidiaries Rising to $10.8 Million

Dragon Capital Group Corp (OTC: DRGV), a holding company of emerging technology companies in China, recently announced its un-audited operating results for the 3 months ended March 31, 2007.

The Company's revenues for the six subsidiaries and on a consolidated basis rose to approximately $10.8 million for the first quarter of 2007. Net income for the six subsidiaries before taxes was approximately $339,000. On a consolidated basis the Company reported a loss of approximately $135,000 inclusive of $440,000 in non-cash expenses. The Company continued to improve its balance sheet as total assets rose to approximately $11.4 million, up from approximately $10.1 million at the end of 2006. Shareholder equity rose to $5.68 million in the quarter as compared to $5.23 million at the end of 2006. The Company has published its financial statements with financial notes, which are available for public viewing via http://www.pinksheets.com.

Lawrence Wang, CEO of Dragon Capital Group, stated, "We are happy to report that our subsidiaries continue to report solid growth in the first quarter. We continue to improve operational efficiencies and capitalize on new business opportunities as we move through the remainder of the year."


OTCPicks.com Safe Harbour Statement: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. OTCPicks.com provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. OTCPicks.com has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or publicly available sources believed by OTCPicks.com to be reliable, but OTCPicks.com provides no assurance, and none is given, as to the accuracy and completeness of this information.

Disclaimer: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is for information purposes only and should not be used as the basis for any investment decision. OTCPicks.com has been compensated seven thousand five hundred dollars by a third party (China Direct) for DRGV advertising and promotional services. Write or call OTCPicks.com for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934. OTCPicks.com is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities. It should be considered to be an advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. OTCPicks.com and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned. Information contained herein may not be reproduced in whole or in part without the express written consent of OTCPicks.com.

Subsidiary



Shanghai Dragon Capital Management Company

Shanghai Dragon Capital Management Company, Limited, founded in 2005 and wholly owned subsidiary of Dragon Capital Group, is an investment consulting firm located in Shanghai, China that specializes in raising capital and consulting in a number of areas, including trading information, public relations, corporate management, merger & acquisition, financial management, corporate strategic evaluations and human resources. In addition to its ongoing business, Shanghai Dragon Capital management oversees all of the Company's operations, investments and interests in China and will be an important source of financial and operational support for the Company's Chinese subsidiaries.

Shanghai Yazheng Information Technology Co., Ltd.

Founded in 2000, Shanghai Yazheng Information Technology Company, Limited (Yazheng) has two divisions. One division is engaged in developing information technology in China by introducing advanced software and hardware products from the US. Yazheng is developing and programming a variety of software applications for both domestic and foreign companies. Taking advantage of skilled system analysts, programmers and developers in software and hardware in Shanghai, Yazheng has become one of major software development companies in China. Yazheng's services include network software, e-business software development, financial and enterprise information management systems and other related technologies. The second division is engaged in Wireless short messaging services. In December 2003, Shanghai Yazheng received a license to operate as a wireless content provider, aggregator and mobile marketing provider in Shanghai. Currently, Shanghai Yazheng operates two websites (http://www.zc8888.com/ and http://www.yastandsms.com) that offer short messaging services to the public.

Shanghai Cnnest Technology Development Co., Ltd.

Shanghai Cnnest Technology Development Co., Ltd. (Cnnest) was established in 2002. Cnnest is dedicated to commercial Third-Generation (3G) wireless applications and mobile business solutions. Based on wireless 3G platforms, Cnnest's objective is to take advantage of a host of new mobile internet applications. Cnnest intends to become one of the leading companies in the field of mobile Internet solutions and applications. Since 2004, Cnnest became a national partner of Tencent, Inc (Hong Kong stock exchange: 700) to offer 3G online products for China Mobile (NYSE: CHL) and China Unicom (NYSE: CHU). In 2005, Cnnest will seek to cooperate with several of the top cell phone manufacturers such as Motorola and Nokia for imbedding their software applications. Cnnest operates one website (http://www.xinkom.com/) and wireless 3G-based platform that offer real estate services through the mobile Internet. Shanghai Cnnest Technology Development Co., Ltd.

Shanghai Cnnest Technology Development Co., Ltd. (Cnnest) was established in 2002. Cnnest is dedicated to commercial Third-Generation (3G) wireless applications and mobile business solutions. Based on wireless 3G platforms, Cnnest's objective is to take advantage of a host of new mobile internet applications. Cnnest intends to become one of the leading companies in the field of mobile Internet solutions and applications. Since 2004, Cnnest became a national partner of Tencent, Inc (Hong Kong stock exchange: 700) to offer 3G online products for China Mobile (NYSE: CHL) and China Unicom (NYSE: CHU). In 2005, Cnnest will seek to cooperate with several of the top cell phone manufacturers such as Motorola and Nokia for imbedding their software applications. Cnnest operates one website (http://www.xinkom.com/) and wireless 3G-based platform that offer real estate services through the mobile Internet.

Shanghai Fomde Information Technology Co., Ltd.

Fomde is engaged in the business of computerized automation control for hotels, commercial, residential and school buildings. The Company's IT department has created a wide variety of proprietary management applications to assist in creating valuable efficiencies in the performance of property management. These applications assist the management of various types of facilities with computerized climate control, access and security control, as well as additional management tools. The company has been certified by the Ministry of National Architecture of China and the Ministry of Information Technology. It was certified ISO 9001 in December 2004. The company has also developed software applications pertaining to quality guarantee systems in product selections, supplier selections, technical support, and design, all involving post-construction services. Fomde's products and services include total management solutions for a wide variety of properties. The Company utilizes BAS, SAS, FAS, CAS, OAS and IBMS. The company's proprietary systems integration software solutions also include the design of multi-media conference needs including sound systems, digitalized campus information systems, as well as a host of other specialized industry control applications.

Shanghai Zhaoli Technology Development Company, Limited.

Zhaoli is an information technology enterprise providing innovative technology solutions to enhance its customer's businesses. Zhaoli generated approximately $20 million in sales in 2004, and approximately $26 million in sales in 2005. Zhaoli’s customers include financial institutions, telecommunication companies, hospitals, supermarkets, airports, railway stations, and various government agencies. Zhaoli is an authorized general agent and distributor for a wide array of manufacturers, including Epson, Cannon, Hewlett Packard, Ricoh, Brother, Star and Samsung. Zhaoli has a wide-spread sales channel, with headquarters in Shanghai and nine additional branch locations. The locations range from an approximate 50 square foot mall location in the southwestern central business district to an approximately 330 square foot mall location near People's Square. Each of these branch locations is staffed with five to six employees. At each of the locations, Zhaoli sells laser printers, copiers, scanners, facsimile machines, multi-functional office equipment, module routers, switches, video telephones, computers supplies, and network products and network integration. Zhaoli obtains these products directly from the manufacturers. Zhaoli is also qualified as a technical service center for Epson, Canon, Hewlett-Packard and OKI products and provides equipment repair services for its customers. Zhaoli has also developed an ERS software system for enterprises to manage accounting, distribution, inventory and sales. For more information, please visit http://www.chorry.com.cn/

Shanghai Longri Information Technology Company, Limited.

Shanghai Longri is engaged in network integration, network service, and IT products distribution. Shanghai Longri is an authorized agent for several prominent IT product suppliers, such as Epson, IBM, Hewlett Packard, Samsung, Legend and Toshiba. Shanghai Longri also provides network design, equipment installation, and after-sales services, including hardware and software integration and support, for various multi-national companies.Shanghai Longri has established retail offices and service centers in Shanghai, Nanjing, and Hangzhou offering quality, professional network services for its customers throughout the eastern area of China. For more information about Shanghai Longri, please visit http://www.long-ri.com.

Shanghai Huice Electronic System Integration Company, Limited ("Huice")

Shanghai Huice Electronic System Integration Company, Limited ("Huice"), founded in 2000 is an information technology company operating in China. Huice is engaged in network integration and the distribution of information technology products. In 2005, Huice attained ISO90001 certification issued by Moody International ISO Certification Registrar.Huice has over 2,000 clients with its own service center. Huice partners with a diverse range of information technology companies, such as Microsoft, Oracle, Hewlett Packard, IBM, Cisco Systems, Sun-Micro, Lucent, 3Com, APC, Polycom, Epson, Samsung, Panasonic, NEC, Toshiba, Lenovo, and Acer. Combining advanced technologies and dedicated services, Huice fulfills a variety of product support functions. More importantly, Huice provides customers with high quality products at a competitive price.

 


OTCPicks.com Safe Harbour Statement: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. OTCPicks.com provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. OTCPicks.com has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or publicly available sources believed by OTCPicks.com to be reliable, but OTCPicks.com provides no assurance, and none is given, as to the accuracy and completeness of this information.

Disclaimer: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is for information purposes only and should not be used as the basis for any investment decision. OTCPicks.com has been compensated seven thousand five hundred dollars by a third party (China Direct) for DRGV advertising and promotional services. Write or call OTCPicks.com for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934. OTCPicks.com is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities. It should be considered to be an advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. OTCPicks.com and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned. Information contained herein may not be reproduced in whole or in part without the express written consent of OTCPicks.com.

Management


Lawrence Wang Chairman, CEO and General Manager

Mr. Wang is one of founders of Shanghai Yazheng and has been its General Manager since inception in 2000. 1996 to 2000, he is an Associate Professor of Department of Computer Science at TongjiUniversity, Shanghai, China. From 1991 to 1996, he was an Assistant Professor of Department of Computer Science at TongjiUniversity, Shanghai, China. Mr. Wang has extensive experience in data warehouse and excavated, Embedded Computer System. Computer System and Structure, Computer Controlling System and Computer Networking and Network Security. Mr. Wang earned his Bachelor of Science in Computer Sciences at JiaotongUniversity, Shanghai, China in 1983. Since April 2005, Mr. Wang has been Chairman and CEO of Dragon Capital Group.

Daniel Gi Director and General Manager of Shanghai Fomde Information Technology Co., Ltd.

He received the master degree from TongjiUniversity, majored in Computer Science in 1993.From 1993 to 2000, Mr. Gi worked at the Department of Computer Science as the director of artificial intelligence laboratory at TongjiUniversity.Mr. Gi founded Shanghai Fomde Information Technology Company, Limited in 2000.Since then, Mr. Gi has been working as General Manager of Shanghai Fomde Information Technology Company, Limited. Over more than 10 years, he has completed many significant scientific research projects while he has published many research papers.In December 2005, he became a director or Dragon Capital Group.

Wuzhang Wang Director and General Manager of Shanghai Zhaoli Technology Development Co., Ltd.

Mr. Wang graduated from Shanghai University of Engineering Science, majored in computer & application science at the Department of Electronic Engineering.Mr. Wang received the bachelor degree in computer science in 1993.Mr. Wang founded Shanghai Zhaoli Technology Development Company, Limited. In the past several years, he has created an extensive sale network for IT products. In addition, Mr. Wang developed the advanced ERP sales management software system.In December 2005, Mr. Wang became a director of Dragon Capital Group.

Hidy Cheng General Management of Shanghai Cnnest Technology Co., Ltd.

Mr. Chen was CEO of Shanghai Xinchao technology development Co.Ltd since 2004. He set up Shanghai JiuNeng Computer Information Technology Co, Ltd in 2003 and worked as general manager. From Jul 2002 to Mar 2003, he was vice president of Shanghai Zhongyu telecommunication technology Co.ltd. He successfully extended the market in wireless businesses such as mobile real estate, mobile lottery and wireless matchmaker. From Aug 2000 to May 2002, he worked as manager of market and sales department in Shanghai TIANNOU technology development Co. Ltd. Their customers included Shanghai Shi Mao Plaza, Hanzhou Tianduo City, Sichuan New Hope Group and so on. From Jan 1999 to Jun 2000, he set up Shanghai AOBEI technology Co. Ltd with HUAWei Development and successfully developed Chinese domain name system with his friends. From Jan 1995 to Jun 1998, he was a great salesman in Nanning branch of the Legend Computer System Ltd. Mr. Chen graduated from GuangXi University In 1995.


OTCPicks.com Safe Harbour Statement: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. OTCPicks.com provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. OTCPicks.com has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or publicly available sources believed by OTCPicks.com to be reliable, but OTCPicks.com provides no assurance, and none is given, as to the accuracy and completeness of this information.

Disclaimer: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is for information purposes only and should not be used as the basis for any investment decision. OTCPicks.com has been compensated seven thousand five hundred dollars by a third party (China Direct) for DRGV advertising and promotional services. Write or call OTCPicks.com for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934. OTCPicks.com is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities. It should be considered to be an advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. OTCPicks.com and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned. Information contained herein may not be reproduced in whole or in part without the express written consent of OTCPicks.com.

Contacts


Dragon Capital Group Corp.
335 Guoding Road Building 2, Suite 2009
Shanghai, China
Phone: 86-21-55522888
Fax: 86-21-55660988

Email:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it This email address is being protected from spam bots, you need Javascript enabled to view it

Website
http://www.dragoncapital.us/


OTCPicks.com Safe Harbour Statement: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. OTCPicks.com provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. OTCPicks.com has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or publicly available sources believed by OTCPicks.com to be reliable, but OTCPicks.com provides no assurance, and none is given, as to the accuracy and completeness of this information.

Disclaimer: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is for information purposes only and should not be used as the basis for any investment decision. OTCPicks.com has been compensated seven thousand five hundred dollars by a third party (China Direct) for DRGV advertising and promotional services. Write or call OTCPicks.com for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934. OTCPicks.com is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities. It should be considered to be an advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. OTCPicks.com and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned. Information contained herein may not be reproduced in whole or in part without the express written consent of OTCPicks.com.

 

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