SHENZHEN, China, Feb. 7, 2005 (PRIMEZONE) -- New Dragon Asia Corp. (Amex:NWD) today said that a review of the company's sales data indicates that PARKnSHOP was one of its leading new customers in 2004, ordering approximately 1,000 tons of flour with an aggregate sales value of approximately $500,000.
"After a rigorous analysis of several competing flour brands, PARKnSHOP selected New Dragon as the exclusive flour vendor for the chain based on its superior quality and competitive pricing," said Heng Jing Lu, chairman and chief executive officer of New Dragon Asia.
Lu noted that New Dragon's well-known "Long Feng" brand name and reputation for quality complement PARKnSHOP's overall marketing strategy, which emphasizes high quality standards and mid-range price points. "With 21 stores in Southern China and an additional five expected to open in 2005, PARKnSHOP is clearly important to New Dragon's strategy to broaden its distribution network outside of the company's core base in Northern China, which was established in 1952. We are gratified to have been selected as a flour supplier and look forward to increased sales opportunities from PARKnSHOP in 2005," he said.
Lu noted that the expected introduction of instant noodles to the PARKnSHOP network also represents a sales expansion opportunity in the future.
PARKnSHOP, a leading supermarket chain based in Hong Kong, is a member of the A.S. Watson Group (ASW), a wholly-owned subsidiary of Hutchison Whampoa Limited (Hong Kong Stock Exchange code 013) - a Fortune 500 company. With a history dating back to 1828, ASW has evolved into an international retail and manufacturing business with operations in 16 countries across Asia and Europe. PARKnSHOP now operates more than 200 outlets with about 9,000 employees in Hong Kong and Macau. Of those outlets, almost 50 are Superstores and Megastores.
About New Dragon Asia
Headquartered in Shandong Province, P.R.C., with a corporate office in Shenzhen, New Dragon Asia Corp. is engaged in the milling, sale and distribution of flour and related products, including instant noodles, to retail and commercial customers throughout China. The company markets its well-established product line through a network of more than 200 key distributors and 16 regional offices in 27 Chinese provinces with an aggregate production capacity of approximately 110,000 tons of flour and more than 1.1 billion packages of instant noodles.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; changes in consumer preferences and tastes or perceptions of health-related issues; effectiveness of advertising or market-spending programs; changes in laws and regulations; fluctuations in costs of production, foreign exchange and interest rates; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.