Exhibit 99.1

 

SGOCO GROUP, LTD. ANNOUNCES FINANCIAL RESULTS FOR THE NINE
MONTH PERIOD ENDED SEPTEMBER 30, 2012

BEIJING, CHINA, November 16, 2012 – SGOCO Group, Ltd. (Nasdaq: SGOC), (“SGOCO” or the “Company”), a company focused on product design and brand development in the Chinese flat panel display market, including computer monitors, TVs, and application specific products, today announced its unaudited operating results for the nine month period ended September 30, 2012 together with its unaudited operating results for the first two quarters.

Following the sale of its manufacturing assets in November 2011, SGOCO has been operating a “light-asset” business model with a concentration on building widely recognizable brands and developing innovative display products. The new business model outsources manufacturing and enhances the Company’s flexibility in responding to rapid changes in technologies and market conditions. Without the need to invest in heavy manufacturing assets, SGOCO has strengthened its balance sheet. As of September 30, 2012, the Company’s net book value per share was $4.30 with a cash position of $6.7 million.

Given the significant changes to SGOCO’s business model and balance sheet in the last year, the Company considers year-over-year comparisons of financial results less relevant.

For the nine month period ended September 30, 2012, SGOCO’s revenues were $103.3 million. During this period, 74% of sales were generated from the Company’s own-brand products and 26% of sales were derived from OEM customers. During the transition to a “light-asset” business model, the Company has been reducing its lower-margin trading and OEM businesses. Therefore, our revenues were negatively impacted by significant reductions in our OEM and trading businesses in addition to general display market and credit conditions in China. The Company is responding to the intense competition in the Chinese display market by developing new markets, sales channels, brands and products with enhanced features, and business related services.

Gross profit for the nine month period ended September 30, 2012 was $7.6 million, or 7.3% of total revenues. Gross margin for the latest quarter was negatively impacted by increased fees charged by Chinese authorities for recycling imported monitors and price drops in smaller size monitors. SGOCO’s long-term strategy is to continue to emphasize own-brand sales while boosting margins through the introduction of new personalized devices and multimedia systems and services to the Company’s product portfolio.

Selling, general and administrative expenses for the nine month period ended September 30, 2012 were $4.6 million, or 4.5% of total revenues. During the period, the Company incurred approximately $2.7 million in third-party expenses including one-time expenses of over $1.6 million in professional fees related to the Company’s Nasdaq trading halt as well as from a change in auditors.

Net income for the nine month period ended September 30, 2012 was $1.1 million, or 1.0% of revenues. Net income was negatively impacted by an approximately $0.7 million provision for interest accrued on a tax related to the sale of its manufacturing assets. Diluted EPS for the period was $0.06.

SGOCO reported strong liquidity ratios as of September 30, 2012. The Company’s current ratio was 6.97 and the debt-to-equity ratio was 0.17. These strong ratios will support SGOCO as it completes its business model transformation focused on developing new personalized products and multimedia systems combined with related business services.

Mr. Burnette Or, Chairman and Chief Executive Officer of SGOCO, commented “We remain encouraged by the progress of our business transition and remain positive about our long-term strategy and profitability. Our new “light-asset” business model provides us with greater flexibility to adapt to challenging market conditions. The Company continues to operate free of debt, build its brand portfolio, and develop new display products. Our R&D team is developing higher-margin products including smart phones, tablet PCs, e-boards, all-in-ones (AIOs) and application specific products (ASPs) which are expected to become commercial ready within the next 1-2 years. The Company is also working on services that can be matched with these new products to further enhance their attractiveness and profitability. We are also using our U.S. office to examine opportunities to re-establish sales in North America, the largest consumer market. We anticipate our fourth quarter results will be stronger than the third quarter’s.”

Conference Call:

SGOCO’s management will host a conference call at 8:30 am ET on Monday, November 19, 2012 to discuss these results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Listeners may access the call by dialing 1-888-466-4462 or 1-719-325-2376. A webcast will also be available via http://public.viavid.com/index.php?id=102602 or http://viavid.com. A replay of the call will be available through November 30, 2012 by dialing 1-877-870-5176 or 1-858-384-5517 access code: 8448779.

2011 Annual Report:

SGOCO’s 2011 annual report has been filed with the U.S. Securities and Exchange Commission and is available online at the Company’s website (www.sgocogroup.com). Shareholders may request a printed copy of the 2011 annual report free of charge by contacting ir@sgoco.com or faxing +86-10-8587-0252.

About SGOCO Group, Ltd.

SGOCO Group, Ltd. is a technology company focused on product design and brand development in the Chinese flat panel display market, including computer monitors, TVs, and application specific products. The Company sells its products and services in the Chinese market and around the world.

For more information about SGOCO, please visit our investor relations website http://www.sgocogroup.com. Product information can be found at http://www.sgoco.com.

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Safe Harbor and Informational Statement

This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," “will,” "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the effectiveness of the Company’s multiple-brand, multiple channel strategy, the transitioning of its product focus, and the reasonableness of the increases in notes payable, and restricted cash. Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation, requirements or changes adversely affecting the LCD and LED market in China; fluctuations in customer demand for LCD and LED products generally; our success in promoting our brand of LCD and LED products in China and elsewhere; our success in expanding our “SGOCO Image” program; our ability to maintain effective internal control over financial reporting; our success in manufacturing and distributing products under brands licensed from others; management of rapid growth; changes in government policy including policy regarding subsidies for purchase of consumer electronic products and local production of consumer goods in China; the fluctuations in sales of LCD and LED products in China; China’s overall economic conditions and local market economic conditions; our ability to expand through strategic acquisitions and establishment of new locations; changing principles of generally accepted accounting principles; compliance with government regulations; legislation or regulatory environments; geopolitical events and other events and factors described in the “Key Information – Risk Factors" section in the Company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on August 30, 2012. The Company assumes no obligation to update any of the information contained or referenced in this press release.

For investor and media inquiries, please contact:

SGOCO Group, Ltd. (China)	ICR, LLC
Bill Krolicki, VP of Finance	William Zima
Tel: +86-10-8587-0170 ext. 826	Phone: +86-10-6583-7511
Email: ir@sgoco.com
	SGOCO Group Investor Relations Department
	US: +1-646-328-2533

(Financial Tables on Following Pages)

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2012
	September 30,			December 31,
	2012			2011
	(USD)			(USD)
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	6,747,787		$	534,501
Restricted cash		253,335			-
Accounts receivable, trade		25,090,529			19,680,682
Other receivables and prepayments		960,484			756,763
Consideration receivable from Sale of Honesty Group		-			57,477,790
Notes receivable		3,664,554			-
Inventories		6,693,437			1,864,011
Advances to Honesty Group		26,429,418			-
Advances to suppliers		17,453,325			4,609,506
Other current assets		128,303			60,548
Total current assets		87,421,172			84,983,801
PLANT AND EQUIPMENT, NET		272,017			217,586
Total assets	$	87,693,189		$	85,201,387
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, trade	$	3,851,944		$	4,608,600
Accrued liabilities		209,948			353,147
Notes payable		253,335			-
Short-term loan - shareholder		208,958			208,958
Other payables		456,569			343,883
Customer deposits		553,451			153,436
Taxes payable		7,005,750			5,552,293
Total current liabilities		12,539,955			11,220,317
OTHER LIABILITIES
Warrant derivative liability		17,740			92,966
Total other liabilities		17,740			92,966
Total liabilities		12,557,695			11,313,283
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value, 1,000,000 shares authorized,
nil issued and outstanding as of September 30, 2012 and
December 31, 2011, respectively		-			-
Ordinary shares, $0.001 par value, 50,000,000 shares authorized,
17,465,356 and 17,258,356 issued and outstanding as of
September 30, 2012 and December 31, 2011, respectively		17,465			17,258
Additional paid-in-capital		24,828,448			24,555,415
Statutory reserves		54,031			54,031
Retained earnings		50,237,046			49,177,643
Accumulated other comprehensive income		(1,496	)		83,757
Total shareholders' equity		75,135,494			73,888,104
Total liabilities and shareholders' equity	$	87,693,189		$	85,201,387

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR SEPTEMBER 30, 2012 AND 2011 (UNAUDITED)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(USD)			(USD)			(USD)			(USD)
REVENUES:
Revenues	$	26,047,267		$	71,565,279		$	103,271,709		$	244,121,724
Total revenues		26,047,267			71,565,279			103,271,709			244,121,724
COST OF GOODS SOLD:
Cost of goods sold		25,105,616			63,677,293			95,691,861			218,188,315
Total cost of goods sold		25,105,616			63,677,293			95,691,861			218,188,315
GROSS PROFIT		941,651			7,887,986			7,579,848			25,933,409
OPERATING EXPENSES:
Selling expenses		212,290			647,930			459,509			1,134,426
General and administrative expenses		1,481,641			1,115,858			4,166,058			4,027,265
Total operating expenses		1,693,931			1,763,788			4,625,567			5,161,691
(LOSS) INCOME FROM OPERATIONS		(752,280	)		6,124,198			2,954,281			20,771,718
OTHER INCOME (EXPENSES):
Interest income		1,338			170,397			2,961			231,202
Interest expense		(12,519	)		(564,121	)		(51,480	)		(1,497,171	)
Other income (expenses), net		(23,129	)		(550,810	)		(35,109	)		(134,857	)
Change in fair value of warrant derivative liability		27,249			741,641			75,226			873,986
Total other income (expenses), net		(7,061	)		(202,893	)		(8,402	)		(526,840	)
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES		(759,341	)		5,921,305			2,945,879			20,244,878
PROVISION FOR INCOME TAXES		331,089			683,743			1,886,476			2,726,468
NET (LOSS) INCOME		(1,090,430	)		5,237,562			1,059,403			17,518,410
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment		(2,676	)		697,619			(85,253	)		2,082,582
COMPREHENSIVE (LOSS) INCOME	$	(1,093,106	)	$	5,935,181		$	974,150		$	19,600,992
(LOSS) EARNINGS PER SHARE:
Basic	$	(0.06	)	$	0.33		$	0.06		$	1.09
Diluted	$	(0.06	)	$	0.33		$	0.06		$	1.09
WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
Basic		17,059,860			16,032,343			17,059,860			16,077,451
Diluted		17,059,860			16,032,343			17,059,860			16,114,299

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
	Nine  Months Ended
	September 30,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,059,403		$	17,518,410
Adjustments to reconcile net income to cash provided by
(used in) operating activities:
Depreciation and amortization		48,927			1,410,897
Bad debt provision		-			77,017
Change in fair value of warrant derivative liability		(75,226	)		(873,986	)
Share-based compensation expenses		273,240			-
Change in operating assets and liabilities
Accounts receivable, trade		(5,555,976	)		(491,185	)
Accounts receivable - related parties		-			49,559
Other receivables		(209,323	)		(343,138	)
Other receivables		(3,679,233	)		-
Other receivables		34,131,709			3,057,666
Advances to Honsty Group		(26,535,286	)		-
Advances to suppliers		(12,924,417	)		(93,534,354	)
Other current assets		(68,230	)		(332,828	)
Change in operating liabilities
Accounts payables, trade		(730,542	)		6,500,296
Accrued liabilities		(141,539	)		74,626
Notes payable		254,350			41,567,751
Other payables		116,920			468,299
Customer deposits		402,588			6,473,017
Taxes payable		1,494,391			452,181
Net cash used in operating activities		(12,138,244	)		(17,925,772	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Settlement of consideration received from disposal of subsidiaries		18,733,669			-
Purchase of equipment and construction-in-progress		(105,131	)		(1,371,515	)
Purchase of intangible assets		-			(1,566	)
Net cash provided by (used in) investing activities		18,628,538			(1,373,081	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in restricted cash		(254,349	)		(22,293,466	)
Bank overdraft		-			27,611
Proceeds from short-term loan		-			89,906,005
Payments on short-term loan		-			(66,550,397	)
Proceeds from shareholder loan		-			(2,545,439	)
Payments on repurchase of put option		-			(2,000,000	)
Payments on repurchase of warrants		-			(512,158	)
Shares issued for exercise of over-allotment related to secondary offering		-			373,242
Net cash used in financing activities		(254,349	)		(3,594,602	)
EFFECT OF EXCHANGE RATE ON CASH		(22,659	)		3,046,527
INCREASE(DECREASE) IN CASH		6,213,286			(19,846,928	)
CASH, beginning of period		534,501			23,493,805
CASH, end of period	$	6,747,787		$	3,646,877
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	$	51,480		$	564,121
Cash paid for income taxes	$	431,594		$	934,554
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Settlement of consideration receivable – received in finished goods	$	38,992,268		$	-

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2012
	June 30,		December 31,
	2012		2011
	(USD)		(USD)
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	713,944	$	534,501
Restricted cash		318,788		-
Accounts receivable, trade		38,493,508		19,680,682
Other receivables and prepayments		815,990		756,763
Consideration receivable from Sale of Honesty Group		-		57,477,790
Notes receivable		94,863		-
Inventories		1,707,445		1,864,011
Advances to Honesty Group		21,896,826		-
Advances to suppliers		26,647,857		4,609,506
Other current assets		181,233		60,548
Total current assets		90,870,454		84,983,801
PLANT AND EQUIPMENT, NET		254,057		217,586
Total assets	$	91,124,511	$	85,201,387
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, trade	$	4,470,910	$	4,608,600
Accrued liabilities		434,573		353,147
Notes payable		318,788		-
Short-term loan - shareholder		208,958		208,958
Other payables		1,018,926		343,883
Customer deposits		1,586,038		153,436
Taxes payable		6,812,729		5,552,293
Total current liabilities		14,850,922		11,220,317
OTHER LIABILITIES
Warrant derivative liability		44,989		92,966
Total other liabilities		44,989		92,966
Total liabilities		14,895,911		11,313,283
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value, 1,000,000 shares authorized,
nil issued and outstanding as of June 30, 2012 and
December 31, 2011, respectively		-		-
Ordinary shares, $0.001 par value, 50,000,000 shares authorized,
17,465,356 and 17,258,356 issued and outstanding as of
June 30, 2012 and December 31, 2011, respectively		17,465		17,258
Additional paid-in-capital		24,828,448		24,555,415
Statutory reserves		54,031		54,031
Retained earnings		51,327,476		49,177,643
Accumulated other comprehensive income		1,180		83,757
Total shareholders' equity		76,228,600		73,888,104
Total liabilities and shareholders' equity	$	91,124,511	$	85,201,387

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR JUNE 30, 2012 AND 2011 (UNAUDITED)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(USD)			(USD)			(USD)			(USD)
REVENUES:
Revenues	$	42,702,117		$	85,580,821		$	77,224,442		$	172,556,445
Total revenues		42,702,117			85,580,821			77,224,442			172,556,445
COST OF GOODS SOLD:
Cost of goods sold		38,745,777			74,834,917			70,586,245			154,511,022
Total cost of goods sold		38,745,777			74,834,917			70,586,245			154,511,022
GROSS PROFIT		3,956,340			10,745,904			6,638,197			18,045,423
OPERATING EXPENSES:
Selling expenses		129,817			270,124			247,219			486,496
General and administrative expenses		1,772,241			1,548,481			2,684,417			2,911,407
Total operating expenses		1,902,058			1,818,605			2,931,636			3,397,903
INCOME FROM OPERATIONS		2,054,282			8,927,299			3,706,561			14,647,520
OTHER INCOME (EXPENSES):
Interest income		1,214			45,966			1,623			60,805
Interest expense		(24,406	)		(536,898	)		(38,961	)		(933,050	)
Other income (expenses), net		2,418			651,902			(11,980	)		415,955
Change in fair value of warrant derivative liability		47,371			(596,040	)		47,977			132,345
Total other income (expenses), net		26,597			(435,070	)		(1,341	)		(323,945	)
INCOME BEFORE PROVISION FOR INCOME TAXES		2,080,879			8,492,229			3,705,220			14,323,575
PROVISION FOR INCOME TAXES		849,539			1,348,785			1,555,387			2,042,725
NET INCOME		1,231,340			7,143,444			2,149,833			12,280,850
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment		(10,694	)		1,044,966			(82,577	)		1,384,963
COMPREHENSIVE INCOME	$	1,220,646		$	8,188,410		$	2,067,256		$	13,665,813
EARNINGS PER SHARE:
Basic	$	0.07		$	0.45		$	0.12		$	0.76
Diluted	$	0.07		$	0.45		$	0.12		$	0.76
WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
Basic		17,059,860			16,032,343			17,059,860			16,100,378
Diluted		17,059,860			16,032,343			17,059,860			16,216,126

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2012
	March 31,		December 31,
	2012		2011
	(USD)		(USD)
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	6,782,742	$	534,501
Restricted cash		65,122		-
Accounts receivable, trade		29,211,944		19,680,682
Other receivables and prepayments		365,713		756,763
Consideration receivable from Sale of Honesty Group		33,873,594		57,477,790
Inventories		4,396,592		1,864,011
Advances to Honesty Group		5,017,489		-
Advances to suppliers		7,913,646		4,609,506
Other current assets		18,164		60,548
Total current assets		87,645,006		84,983,801
PLANT AND EQUIPMENT, NET		270,314		217,586
Total assets	$	87,915,320	$	85,201,387
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, trade	$	4,889,942	$	4,608,600
Accrued liabilities		335,129		353,147
Notes payable		65,122		-
Short-term loan - shareholder		208,958		208,958
Other payables		1,133,006		343,883
Customer deposits		113,498		153,436
Taxes payable		6,069,351		5,552,293
Total current liabilities		12,815,006		11,220,317
OTHER LIABILITIES
Warrant derivative liability		92,360		92,966
Total other liabilities		92,360		92,966
Total liabilities		12,907,366		11,313,283
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value, 1,000,000 shares authorized,
nil issued and outstanding as of March 31, 2012 and
December 31, 2011, respectively		-		-
Ordinary shares, $0.001 par value, 50,000,000 shares authorized,
17,465,356 and 17,258,356 issued and outstanding as of
March 31, 2012 and December 31, 2011, respectively		17,465		17,258
Additional paid-in-capital		24,828,448		24,555,415
Statutory reserves		54,031		54,031
Retained earnings		50,096,136		49,177,643
Accumulated other comprehensive income		11,874		83,757
Total shareholders' equity		75,007,954		73,888,104
Total liabilities and shareholders' equity	$	87,915,320	$	85,201,387

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SGOCO GROUP LTD. AND SUBSIDIARIES
CONDENSDED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR MARCH 31, 2012 AND 2011 (UNAUDITED)
	Three Months Ended
	March 31,
	2012			2011
	(USD)			(USD)
REVENUES:
Revenues	$	34,522,325		$	86,975,624
Total revenues		34,522,325			86,975,624
COST OF GOODS SOLD:
Cost of goods sold		31,840,468			79,676,105
Total cost of goods sold		31,840,468			79,676,105
GROSS PROFIT		2,681,857			7,299,519
OPERATING EXPENSES:
Selling expenses		117,402			216,372
General and administrative expenses		912,176			1,362,926
Total operating expenses		1,029,578			1,579,298
INCOME FROM OPERATIONS		1,652,279			5,720,221
OTHER INCOME (EXPENSES):
Interest income		409			14,840
Interest expense		(14,555	)		(396,151	)
Other income (expenses), net		(14,398	)		(235,949	)
Change in fair value of warrant derivative liability		606			728,384
Total other income (expenses), net		(27,938	)		111,124
INCOME BEFORE PROVISION FOR INCOME TAXES		1,624,341			5,831,345
PROVISION FOR INCOME TAXES		705,848			693,939
NET INCOME		918,493			5,137,406
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment		(71,883	)		339,998
COMPREHENSIVE INCOME	$	846,610		$	5,477,404
EARNINGS PER SHARE:
Basic	$	0.05		$	0.32
Diluted	$	0.05		$	0.32
WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
Basic		17,053,036			16,169,170
Diluted		17,053,036			16,280,942

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