Stock Guru Profile DRGG
Dragon International, Inc. filed a 10Q on October 13, 2006.
Ningbo Dragon is vertically integrated within China’s pulp and paper packaging material industry. They operate as an established Chinese company in the manufacturing and distribution of paper and integrated packaging paper products. Historically, distribution has been of critical importance in China.
It is significant to note that Ningbo Dragon has a distribution network covering east and central China, which are the most economically developed areas of China. Dragon’s vertical integration will accommodate rapid growth. They have the ability to ramp up production to accommodate sales with the distribution network already in place.We examine the four divisions of DRGG and their Research and Development arm to demonstrate their extensive vertical integration and potential for rapid growth.
1. Yonglongxin Special Paper Company, Limited. Yonglongxin produces packaging materials for cigarettes, wines and cosmetics. Yonglongxin operates the Xianyang Naite Research & Development Center created to develop, design and improve production methods in the specialty packaging industry in China.
2. Hangzhou Yongxin Paper Company, Limited. “Yongxin” manufactures, sells, and distributes cigarette packaging materials, 3. Ningbo Dragon Packaging Technology Company, Limited. “Dragon Packaging”, is a manufacturer of specialized packaging materials products for the pharmaceutical and food industry. Dragon Packaging is involved in the paper industry, operating a manufacturing facility of pulp and paper products. This new facility allows us to upgrade manufacturing capabilities and it provides a significant amount of land for potential expansion and is expected to reduce costs as a result of eliminating leasing costs on the current facility .Ningbo Dragon acquired 100% of Dragon Packaging on June 1, 2005. Dragon Packaging, established in August 2002, is located in Ningbo, China , in close proximity to the headquarters of Ningbo Dragon.The main assets of Dragon Packaging were comprised of a manufacturing facility which included land, buildings and equipment, specifically 23,345 square meters of land, an 8,500 square meter building, and assorted manufacturing equipment. In the 8,500 square meter building; 1,859 square meters is used as office space, 1,580 square meters is a warehouse used to store raw materials and finished products, 3,723 square meters is used as manufacturing facilities and the remaining 1,338 square meters is a dormitory to house workers.4. Shanghai JinKui Packaging Material Company, Limited. “JinKui”, is a manufacturer of specialized packaging products for the pharmaceutical and food industry. It operates a 12,700 square foot manufacturing facility. JinKui’s facilities include a GMP certified lab and production plant. The plant has one printing machine, one assembly machine, and one cutting machine. The warehouse has sections to hold raw materials and finished products. JinKui manufactures a variety of blister packs.JinKui operates in the pharmaceutical product packaging industry. Demand for pharmaceutical packaging materials is directly related to the demand for pharmaceutical products. China, similar to global markets, has experienced a rise in demand for pharmaceutical products. As pharmaceutical products become more advanced they tend to require increase protection in the form of packaging. Various pharmaceuticals will require packaging that protects from moisture, oxygen, air, light and heat to maintain the quality of the product.
In January 2006, JinKui signed an agreement with Ningbo Iter Industry Co., Ltd (”Iter”) to distribute pharmaceutical packaging materials in India. Under the terms of the agreement, JinKui manufactures various grades of blister packs for export to India.
These separate but fully integrated divisions indicate that Dragon International has the physical facilities to accommodate growth, the vertical marketing ability to sell into the highest profit margin areas of packaging, and the ability to sell into the pharmaceutical industry in both China and India.
�DRGG – Dragon International Group Corp.
Bldg 14, Suite A09
29 Dongdu Road
International Trading Center
Ningbo, 315000 China
Website: http://www.drgg.net
Phone: 86-574-56169308
Fax: 86-0574-56169378Contact:
Andrew Brown
ROI Group Associates, Inc.
Tel: 212-495-0202
Email: abrown@roiny.com�
�
SOURCE: Dragon International Group Corp.
About Dragon International Group Corp. Dragon International Group Corp. (OTCBB: DRGG) is one of China’s leading manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world’s largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.
Safe Harbor and Forward Looking Statement: Certain statements set forth in this article constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements, including the Company’s ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company’s business and financial results is included in the Company’s filings, available via the United States Securities and Exchange Commission at http://www.sec.gov/.
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