SHENZHEN, China, April 27, 2005 (PRIMEZONE) -- New Dragon Asia Corp. (Amex:NWD) today announced it has acquired a 10-year lease agreement of plant and machinery utilized for the production for soy bean-derived products from a state-owned enterprise in Shandong. Terms were not disclosed.
The facility is located in Longkou City, Shangdong Province, China, and principally engaged in the manufacturing and sale of soy bean protein powder and soy bean milk powder. It has three production lines with an aggregate annual production capacity of 3,000 tons of soy bean protein powder and 1,500 tons of soy bean milk powder.
"This transaction establishes a new line of business for New Dragon Asia. We expect the soy bean operation will contribute at least $5 million in revenues in 2005 and we look forward to the possibility of expanding the business moving forward," said Heng Jing Lu, chairman of New Dragon Asia.
He noted the soy bean factory sources only organic soy bean, which complements New Dragon Asia's Grade A certification of its flour products by the China Green Food Development Center, an organization solely authorized by the Chinese government to issue the "green" and organic label to food producers. Lu added that current customers of the soy bean protein powder produced at the facility include baby food and cereal food manufacturers, hotels and beverage manufacturers. The facility also produces a special type of soy bean milk powder for the Chinese National Army.
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.