New Dragon 1Q results

New Dragon Asia, the Hong Kong based food processor, has reported a 5 per cent increase in profits and a 7 per cent decrease in total sales for its first quarter of 2002.

The company reported net earnings for the quarter ending in March of $640,216, and sales for the period at $6,912,371. The company stated that the drop in sales primarily reflected increased competition in the lower priced instant noodle segment.

In announcing the results, Song Xue Jun, chairman and CEO of New Dragon, said: "Our first quarter results reflect management's continuing strategy to capitalise on New Dragon's distribution strength and market presence in our mass market brands to shift emphasis into higher yielding premium priced products as rural consumers become more quality conscious. This strategy, combined with our planned programme of acquisitions of additional brands and production capacity, will enable us to increase market share in China and consolidate our position as one of the leading food groups in the country."​

"Separately, we are beginning to apply more resources to our US distribution efforts. Given the significance of the Asian population in the United States, and strong recognition factor of our brand name, we believe that we can achieve significant sales of our premium products in the US and ultimately become a major ``niche' player in the ethnic foods sector in this country."​

New Dragon operates four food processing plants on Mainland China and is ranked among the top three flour manufacturers and instant noodle producers in the world's most populous nation. The company has a well-established network of 200 distributors and 20 regional offices in over 27 Chinese provinces.