HONG KONG, Dec. 10, 2003 (PRIMEZONE) -- New Dragon Asia Corp. (AMEX:NWD) today said it expects net income for its fourth quarter ending December 25, 2003 to increase between eight and ten percent, or $160,000 to $200,000, over the same period a year earlier, with revenue climbing between five and ten percent, or $540,000 to $1.1 million.
The company said its positive business outlook is based upon a significant improvement in business due to recovery from SARS and organic growth. It noted that the holiday season is a period which is historically the company's strongest.
The company expects to report results for its fourth quarter and year ending December 25, 2003 on approximately March 25, 2004.
Separately, New Dragon Asia said it has commenced product shipments valued at approximately $600,000, or one half of the total order value, for a previously announced contract for a variety of instant noodles from a Korean customer, the company's first order outside China and Hong Kong. Delivery of the first half of the order is expected to be completed by fiscal year end December 25, 2003.
About The Company
Headquartered in Hong Kong, 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 200 key distributors and 20 regional offices in 27 Chinese provinces with an aggregate production capacity of approximately 175,000 tons of flour and more than 110 million 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.