Consumer Capital Group Inc. Releases Second Quarter 2012 Results
PASADENA, Calif., Aug. 15, 2012
PASADENA, Calif., Aug. 15, 2012 /PRNewswire/ -- Consumer Capital Group, Inc. (OTCQB: CCGN) ("CCG" or the "Company"), primarily engaged in the development and operation of its retailing website "Chinese Consumer Market Network," which allows third-party merchants to sell their general merchandise products directly to consumers in the PRC and the U.S., today announced that it released its financial results for the second quarter ended June 30, 2012.
"We continued to focus on developing our debit card program this past quarter," said Jack Gao, President and Chief Executive Officer of CCG. "We strive to set ourselves apart from other e-commerce service providers in China by providing a variety of incentives to our customers, and right now we are working hard to sign dealer agreements with additional Chinese card management companies to advance our co-branded debit card program with Bank of Fuxin. Through this unique program, cardholders that make purchases obtain cash refund and bonus points, which then can be used to redeem cash value in their purchases on our online retail platform. We already have a signed dealer agreement with China Unionpay, which is the only card management company like Visa and Master Card in China and has POS machines across the country, and our goal in upcoming quarters is to continue adding to this solid foundation and to further build out our vendor system."
Selected Second Quarter (Q2) 2012 Financial Results
The Company's net revenues for the three months ended June 30, 2012 decreased to $1,278,454 from $1,346,681 for the three months ended June 30, 2011, a decrease of $68,227 or 5.1%. Net revenues from its e-commerce business for the three months ended June 30, 2012 decreased to $135,591 from $581,618 for the three months ended June 30, 2011, a decrease of $446,027 or 76.7%. This decrease was primarily due to a significant decrease in sales resulting from changes in the Company's sales team and less successful promotional activities. Net revenues from the Company's meat distribution business for the three months ended June 30, 2012 increased to $1,142,863 in the three months ended June 30, 2012 from $765,063 for the three months ended June 30, 2011, an increase of $377,800 or 49.4%. This increase was primarily due to an increase in sales as a result of increased sales staff after Chinese New Year holiday.
"We have issued over 600,000 cards with 5,300 vendors since the inception of our co-branded debit card program, and with the support of our established agreement with China Unionpay plus other potential dealers, we are aiming to have this business segment generate revenue later in 2012," remarked Mr. Gao. "Cardholders of our debit cards are entitled special discounts for transactions with vendors that have signed up with the program apart from the benefits they enjoy for purchase on our retail website. We believe this value-added approach distinguishes us from our competitors in China's growing B2C ecommerce sector, and we expect to sign additional vendors to further capitalize on what we consider to be one of our strongest competitive advantages."
About Consumer Capital Group, Inc.
We are primarily engaged in three different businesses: e-commerce services, meat distribution, and debit card business. We operate an online retail platform at www.ccmus.com for customers in China and another online platform at www.ccgusa.us for customers in the United State. Our online retail platforms allow third-party merchants to sell their general merchandise products directly to consumers in the PRC and the U.S. We differentiate ourselves from other e-commerce service providers by providing a variety of incentives to our existing customers in the PRC. Our member customers obtain bonus points for each purchase, which can be used to redeem cash value in their next purchase. When our customers' accumulated purchases exceed pre-set thresholds, they will be upgraded to a higher membership level and will be entitled to additional incentives such as special discounts and higher bonus points on subsequent purchases. Our member customers may also receive awards from our daily sweepstakes program. We employ a system that escrows payments for the goods until the consumer indicates that the order was satisfactorily fulfilled.
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
SOURCE Consumer Capital Group, Inc.