SHENZHEN, China, Sept. 28, 2006 (PRIMEZONE) -- New Dragon Asia Corp. (AMEX:NWD), one of China's leading producers of instant noodles, flour-related products and soybean derived products, today announced that it has filed restated consolidated financial statements with the Securities and Exchange Commission ("SEC") for the full year ended December 25, 2005, as well as for the interim periods ended September 25, 2005; March 25, 2006 and June 25, 2006. The restated financial statements have been filed on Form 10-K/A for the 2005 full year and on Form 10-Q/A for each respective interim period.
These amendments were made in response to comments New Dragon Asia received from the SEC regarding technical interpretations and applications of accounting principles for certain derivative financial instruments relating to the two convertible preferred stock issuances in connection with financings by New Dragon Asia last fiscal year. The resulting changes to the statements of operations are non-cash in nature and do not affect New Dragon Asia's revenue, cash operating costs and expenses, or income from operations. The filings submitted to the SEC today are subject to further comment and review by the SEC and additional amendments may be necessary. New Dragon Asia will undertake all necessary steps to proactively communicate to its shareholders the result of ongoing developments regarding these accounting matters and the resulting quarterly impact on the Company's consolidated statements of operations and balance sheets.
Li Xia Wang, Chief Executive Officer, said, "At New Dragon Asia, we are committed to maintaining the highest standards of transparent financial reporting and take full responsibility for the restatement of our financial results. As the financial impact of these accounting treatments may vary from period to period, we will continue to provide timely updates to our shareholders. At the same time, these amendments do not reflect any change in our business performance. Our operations remain strong and our growth strategy remains on track as we expand our distribution footprint and unlock the value of formerly state-owned assets. We look forward to reporting the continued development of our business in the coming periods."
For further detail on the matters referred to above, please refer to the full text of the restatement filings on the SEC web-site (www.sec.gov) or at www.newdragonasia.com.
About New Dragon Asia Corp.
New Dragon Asia Corp., a Florida corporation (AMEX:NWD), is headquartered in Shandong Province, China, and is engaged in the milling, sale and distribution of flour and related products, including instant noodles and soybean-derived products, to retail and commercial customers. As the fourth largest instant noodle manufacturer in China, New Dragon Asia markets its well-established Long Feng brand through a network of more than 200 key distributors and 16 regional offices in 27 Chinese provinces with an aggregate production capacity of approximately 195,000 tons of flour and more than 1.1 billion packages of instant noodles per year. Instant noodles are also exported to a growing number of countries. For more information, visit the Company's web-site at www.newdragonasia.com.
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, its success with acquisitions, anticipated synergies, and overseas expansion. 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; 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 may be discussed in the Company's reports as periodically filed with the Securities and Exchange Commission.