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[007]

New Dragon Asia Corp. Reports 21 Percent Growth in Net Revenue for the Fiscal Year Ended December 25, 2006
Friday March 23, 7:00 am ET


SHENZHEN, China, March 23, 2007 (PRIME NEWSWIRE) -- New Dragon Asia Corp. (AMEX:NWD - News), one of China's leading producers of instant noodles, flour-related products and soybean-derived products, today announced its financial results for the fiscal year ended December 25, 2006.
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Li Xia Wang, Chief Executive Officer of New Dragon Asia Corp., said, ``We are encouraged by the continued strong sales of our expanding product lines in China as well as in new markets in Asia and Europe. Despite considerable investments in the business during the year, we were able to report a 17% increase in EBITDA. However, primarily due to significant non-cash stock-based compensation cost in fiscal 2006, fully-diluted EPS reflected a loss of $0.10 per share.

``At the same time, we were able to identify new sources of demand for our products overseas. We exported 654,000 cases of instant noodles in fiscal 2006, which was a 38% increase over fiscal 2005. We also exported 134 and 87 tons of our soybean powder and seasoning products, respectively, during fiscal 2006; we did not have any such exports during fiscal 2005. Additionally, we believe that we continue to meet the evolving demands of our customers with high-quality products, such as our newly-developed ginger powder. In the coming year, we expect this new addition to our product portfolio to drive further growth in our export business.''

Peter Mak, Chief Financial Officer of New Dragon Asia Corp., added, ``Fiscal 2006 is now the third consecutive year that New Dragon Asia Corp. has reported net revenue growth in the double digits. This track record of robust top-line performance is evidence of the continued successful expansion of our product offerings and distribution network in China and abroad. While additional investments and expenses resulted in a net loss for the year, our EBITDA margin, a key measure of the efficiency of our operations, remained solid at 19%. We are confident that our continued dedication to seeking value-adding opportunities in China and investing in our production, distribution and sales capabilities worldwide will continue to drive shareholder value over the long term.''

Fiscal Year 2006 financial highlights

Net revenue for the fiscal year ended December 25, 2006 was $53.4 million, an increase of $9.2 million, or approximately 21%, as compared to $44.2 million for the prior year. Approximately 20% of the increase was due to the growth in the market demand for flour and instant noodles, and the remaining 80% of the increase was derived from the addition of the soybean products business. The selling prices for all of our products remained stable.

Cost of goods sold for the fiscal year ended December 25, 2006 was $43.4 million, an increase of $7.2 million, or 19.9%, as compared to $36.2 million for the prior year. The increase was primarily due to the increase in net revenue. As a percentage of revenue, cost of goods sold remained stable at 81.2% for the fiscal year ended December 25, 2006, as compared to 81.8% for the prior year. Accordingly, gross margin increased slightly to 18.8% in fiscal 2006 as compared to 18.2% for fiscal 2005.

General and administrative expenses increased by $8.5 million, to $10.9 million for the fiscal year ended December 31, 2006, as compared to $2.4 million for the prior year. The increase was primarily due to a non-cash stock-based compensation cost of $8.1 million in fiscal 2006. As a result, net loss for fiscal 2006 was $2.6 million, or $0.10 per share, a decrease of $4.4 million, as compared to net income of $1.75 million or $0.02 per share for fiscal 2005.

EBITDA increased 17.2%, to $10.2 million in fiscal 2006, as compared to $8.7 million for fiscal 2005. EBITDA as a percentage of revenue remained relatively stable at 19% for fiscal 2006.

Fiscal Year 2006 Balance Sheet Information

New Dragon Asia Corp.'s cash and cash equivalents as of December 25, 2006 were $10.3 million, a decrease of approximately $4 million as compared to $14.3 million at the end of fiscal 2005. The decrease was mainly due to the acquisition of Chengdu Plant and the establishment of Longyuan Packaging Plant.

The Company's working capital increased to $17.6 million as of December 25, 2006, as compared to $14.5 million at the end of fiscal 2005. The increase in working capital was primarily due to the growth and profitability of the business and improved collections of accounts receivable during fiscal 2006. The Company believes that it has adequate sources of liquidity to finance its business operations for the foreseeable future.

Net cash provided by operating activities for fiscal 2006 was $2.49 million, as compared to $0.95 million for fiscal 2005. The increase was consistent with our business growth in 2006. Net cash provided by financing activities of $0.90 million for fiscal 2006 was primarily due to the proceeds from the exercise of an option to purchase 1 million shares of common stock.

[007]

.10 EPS loss, $53 million in 2006 revenues.

Not bad, but not good either. I got some more at $1.40 today. Think long term.

[capt_nemo]

Technical Analysis: NEW DRAGON ASIA CORP (AMX : NWD)


STOCKSCORE FOR 3/23/2007 4:01:00 PM MARKET CLOSE: 23

How To Use The Stockscore
Today's Trading (as of 3/23/2007 4:01:00 PM)
Open $ 1.44 Change -0.08

High $ 1.54 % Change -5.26

Low $ 1.36 Volume 739,800

Close $ 1.52 # of Trades N/A

$ Value Volume $ 1,124,496



Stock Scores
Stock Score 23

Rating Bearish

Smoothed Stockscore 34

40 Day High None

40 Day Low None



Price Indicators
Moving Average Indicators
15 Day Trend Bearish

45 Day Trend Bearish

100 Day Trend Bearish

MT Moving Avg Crossover N/A

LT Moving Avg Crossover N/A

Volatility Indicators
Abnormal Activity Today? Abnormal Day Down

Volatility Index Today High

Volatility Index Yesterday High

10 Day Volatility Incr

20 Day Volatility Incr

40 Day Volatility Incr



Price Relativity
From 40 Day High 87% From 40 Day Low 103%

From 80 Day High 78% From 80 Day Low 103%

From 150 Day High 78% From 150 Day Low 122%



Support/Resistance
5 Day Support $1.48 5 Day Resistance $1.64

15 Day Support $1.48 15 Day Resistance $1.64

80 Day Support $1.48 80 Day Resistance $1.95



Pivot Analysis
Price Pivot $1.47

Day Resistance 1 $1.59

Day Support 1 $1.41

Day Resistance 2 $1.65

Day Support 2 $1.29

Recent Moves
Gain/Loss - 10 day -3%

Gain/Loss - 30 day -11%

Gain/Loss - 60 day -13%

Gain/Loss - 200 day -11%



Consolidations
Short Term No

Medium Term No

Long Term No

Today's Trading
Gap Down Gap

Candle Bullish



Volume Indicators
Volume Averages
20 Day Avg Vol 217,210

Today / 20 Day Avg Vol Above

150 Day Avg Vol 164,500

Today / 150 Day Avg Vol Above

Today's Trading
Abnormal Volume Abnormal Volume

Abnormal Trades N/A



WILLIAM VOLUME ACCUMULATION: Bearish
VOLUME PRICE TREND: Bearish


Momentum Indicators
Trend
10 Day Trend Bullish

40 Day Trend Bearish

100 Day Trend Bearish

STOCHASTICS: Neutral
RSI: Neutral
MACD: Bearish

[capt_nemo]

these nimrods have choosen your board for their spam campaign, chezzzzzzzzzzzz We need filters for this i guess!!!

[007]

I'm still bullish on NWD as a growth stock. I picked up some more at $1.35 today.

One of the reasons for this sentiment can be found on the investor fact sheet linked from the company website. Apparently the Chinese government is attempting to privatize the food industry, thus allowing previous state-owned factories to be acquired under very favorable terms which leads to....

"In February 2006, we acquired a state-owned noodle manufacturing facility in Chengdu, Sichuan Province at net book value. This acquisition expanded our instant noodle production capacity by 30% and established our presence in western China. It also freed up the production capacity at our Shandong facilities. In April 2006, we acquired the remaining equity interest in our packaging facility at net book value from our joint venture partner (also a state-owned enterprise) and injected additional capital to expand the facility. We strongly believe that each of these acquisitions will have a positive impact on our financial performance in the coming quarters."

Quoted from an October 2006 press release.

$8,000,000 in stock-based compensations were awarded in 2006 to those who are finding these undervalued assets. That $8,000,000 is on the 2006 books and done (hopefully) and accounted for the -.10 EPS for 2006. That, coupled with the China fallout in February brought NWD down to where it's at today. However, NWD is an established processed food company, growing at a reasonable rate in a newly privatized sector of the Chinese economy.
NWD looks like a great long term investment.

[007]

Originally Posted by capt_nemo

these nimrods have choosen your board for their spam campaign, chezzzzzzzzzzzz We need filters for this i guess!!!

That's odd, since I was just re-analyzing my position in NWD tonight, too.

[007]

Small breakout just before 1Q earnings are due. That is encouraging. NWD needs to continue the buys tomorrow or it may fall back to the $1.30's.

[007]

This looks almost identical to AOB in 2005.

[capt_nemo]

IMHO

[Skye]

I bought some yesterday.