PASADENA, Calif., May 16, 2012 /PRNewswire/ -- Consumer Capital Group, Inc. (CCGN.OB) ("CCG" or 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 that it released its financial results for the first quarter ended March 31, 2012.
"I am very pleased with our progress," said Jack Gao, President and Chief Executive Officer of CCG. "Our e-commerce business experienced solid growth as we continued to distinguish Chinese Consumer Market Network amongst competitors whom primarily focus on consumer-to-consumer transactions. Our full business-to-consumer approach to e-commerce includes offering wide variety of consumer goods and services, including many products that are generally unavailable in China from countries such as the U.S., Spain, Germany and France. Moreover, we continued to utilize our unique sweepstakes and incentives programs to attract consumers to our website in a low-cost and effective fashion."
"While we maintained our focus on the development of our core competency in e-commerce technology, which enables us to avoid the overhead and operational difficulties of logistics and supply chains, we also continued to develop our debit card program, in which we are working with Fuxin City Bank in China to distribute co-branded debit cards," added Mr. Gao. "We are confident that we will be able to maintain our momentum in upcoming quarters while further focus on building out both of these businesses."
Selected First Quarter (Q1) 2012 Financial Results
CCG's e-commerce business had sales of 1.0 million in Q1 2012 compared to sales of $0.6 million in Q1 2011, an increase of $0.4 million or 66%. The increase was primarily due to the successful marketing by the Company's dealers.
"In December 2011, we signed several dealer agreements including one with China Unionpay, which is the only card management company like Visa and Master Card in China," remarked Mr. Gao. "This was a huge step for us in terms of building out our debit card program, as China Unionpay has millions of POS machines installed all over China. We are confident that with the cooperation of China Unionpay and other dealers, we will be able to continue rapidly developing our vendor system, with the goal of this business generating revenue later in 2012."
About Consumer Capital Group, Inc.
CCG 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.
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, 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.
Mr. Kevin Ma
NUWA Group LLC.
Mr. Jack Gao, President
Consumer Capital Group