Dragon International Group Corp. Expects Substantial Growth in 2005

Strategic Insights -

Dragon International Group Corp., one of China's leading manufacturers and distributors of specialty paper products and packaging materials, has announced a substantial growth in 2005. The company has acquired a 60% stake in Hangzhou Yongixn Paper Company, Limited, which is expected to double annual revenues of packaging materials from $8 million to $16 to $20 million per year. The acquisition will also bring about operational efficiencies and a broader client base.

Key Takeaways:

  • Dragon International Group Corp. has acquired a 60% stake in Hangzhou Yongixn Paper Company, Limited, a leading manufacturer and distributor of specialty paper products and packaging materials in China.
  • The acquisition is expected to double annual revenues of packaging materials from $8 million to $16 to $20 million per year.
  • The company estimates that the acquisition will bring about operational efficiencies and a broader client base.
  • Mr. Wu, CEO of Dragon International Group Corp., stated that the acquisition is part of the company's commitment to increase shareholder value and expects the dynamic growth in the industry in China to provide a tremendous growth opportunity in the coming years.
  • The company has already entered into a new contract with Yantai Hongyu Packaging Material Company, Limited, valued at approximately US$3.6 million per year.
  • The company's stock closed at Twenty Nine cents a share prior to the announcement.
  • The company has experienced significant activity on the stock market, with stocks showing interesting activity at the close of the regular trading day.

Statistics:

  • $8 million: Annual revenues of packaging materials prior to the acquisition.
  • $16 to $20 million: Expected annual revenues of packaging materials after the acquisition.
  • 60%: Stake acquired by Dragon International Group Corp. in Hangzhou Yongixn Paper Company, Limited.
  • US$3.6 million: Value of a new contract with Yantai Hongyu Packaging Material Company, Limited, entered into by the company.

Sources:

  • M2 PressWIRE, "Wall Street News Alert: Mid-Morning Stock Market News: DRGG Expects Substantial Growth in 2005!"
  • Dragon International Group Corp. press release, "Dragon International Group Corp. Announces Acquisition of Hangzhou Yongixn Paper Company, Limited"
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