NEW YORK, Aug. 16, 2011 (GLOBE NEWSWIRE) -- Consumer Capital Group, Inc. (OTCBB:CCGN) ("CCG" or the "The Company"), primarily engaged in the development and operation of its retailing website "Chinese Consumer Market Network," which provides manufacturers and distributors a platform to promote and sell products and services directly to consumers in China, today announced its financial results for the second quarter ended June 30, 2011.
Second Quarter 2011 Financial Highlights:
Revenue increased from $0 in Q2 2010 to $1.3 million in Q2 2011
Gross profit increased from $0 in Q2 2010 to $0.6 million in Q2 2011
Cash and cash equivalents were $1.3 million as of June 30, 2011
Summary of Second Quarter Results:
Q2 2011 Q2 2010
Net Revenue $ 1.3 million $0.0 million
Gross Profit $ 0.6 million $0.0 million
Net Loss $0.3 million $0.1 million
Loss Per Share (diluted)* $0.02 $0.00
*CCG reported a fully diluted loss per share of $0.02 on 18.9 million shares for the second quarter ended June 30, 2011 and $0.00 on 16.2 million shares for the second quarter ended June 30, 2010.
Jack Gao, CCG's President and Chief Executive Officer, said, "Our customer, membership and vendor bases all experienced growth this past quarter, compared to the same period last year, helping us keep our pace of meeting our full year objectives of improved sales and profitability. This increase reflects the growing market exposure and recognition of our e-commerce website. As we head into the second half of 2011, we are confident that this increasing awareness will translate into improved profits."
CCG commenced its principal operations in 2010 with the launch of its e-commerce website. Net revenues derived from CCG's e-commerce business were $1.2 million and $0 for the six months ended June 30, 2011 and 2010, respectively. This increase in CCG's net sales is primarily attributable to a more developed membership base as well as its vendor arrangements and relationships. Net revenues derived from CCG's distribution business were $2.1 million and $0 for the six months ended June 30, 2011 and 2010, respectively. This increase is the result of the Company's acquisition of Beitun Trading, a meat distribution business on November 29, 2010. CCG did not have a distribution business for the six months ending June 30, 2010.
Cost of Sales & Gross Profit
CCG's costs of sales were $2.1 million for the six months ended June 30, 2011 and $0 during the same period in 2010. The Company's cost of sales consists of the cost of consumer products and content sold, inbound and outbound shipping charges, and packing supplies. The increase in CCG's cost of sales is due to its acquisition of Beitun Trading on November 29, 2010. CCG's gross profits were $1.2 million for the six months ended June 30, 2011 and $0 during the same period in 2010.
CCG's net loss was $1.4 million and $0.2 million for the six months ended June 30, 2011 and 2010, respectively.
"We are very confident that we are gaining traction in China's e-commerce industry," remarked Mr. Gao. "We believe that our website and our business model have several distinct advantages compared to our competitors, which in time, we think, will help drive traffic to our website and increase sales. Currently, we are focusing on developing stronger customer, membership and vendor bases, and maintaining our relationship with existing customers. The increase in our revenue in this past quarter compared to the same period last year was primarily due to the result of our enlarged membership base and vendor partnerships, and we are committed to maintaining this success by heightening our marketing efforts to further increase awareness of the benefits our website provides to both consumers and merchants."
About Consumer Capital
Consumer Capital provides an online marketing and retail platform for manufacturers and distributors to promote and sell products and services directly to Chinese consumers, who can earn discounts through CCG's rewards and incentive programs. CCG's online platform eliminates the extended network of intermediaries in the manufacturing-distribution-retail chain by providing manufacturers with direct access to the members of its website. Furthermore, the Company's website provides customers with access to certain Western products that are generally unavailable in China, such as handbags and eyewear made by U.S. companies and food and beverage products from Spain, Germany, and France. Sellers use the Company's website to advertise and sell their goods, manage customer data, and track orders and shipments. Consumers use the website to shop online and pay for products and services. Consumer Capital does not buy, hold, or sell any inventory. CCG employs a system that escrows payments for the goods until the consumer indicates that the order was satisfactorily fulfilled. The Company's website is located at: www.ccmus.com.
CCG is also engaged in the meat distribution business as a result of its acquisition of Beitun Trading Inc. in November 2010.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the current plans, estimates and projections of Consumer Capital's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions, geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, and the Company's ability to maintain its competitive position. Additional Information regarding risks can be found in the Company's Annual Report on Form 10-K and in the Company's recently filed Prospectus filed pursuant to Rule 424(b)(3) with the SEC.
CONTACT: Investor Contact
Mr. Kevin Fickle, President
NUWA Group LLC.
Mr. Jack Gao, President
Consumer Capital Group