CHINA: New Dragon Asia sees Q2 sales up 27%
The Hong Kong-based food manufactuer New Dragon Asia Corporation, which ranks among the top three instant noodle producers in China, has posted sales of US$7.5m for its Q2 ended 25 June, up 27% over the comparable period in 2001.
Operating profit for the Q2 period was US$986,000, up 28% over Q2 2001. Net income was US$774,000, up 9% over Q2 2001 earnings, resulting in US$0.02 earnings per share. Income taxes for the quarter were US$166,000, compared to US$47,000 for Q2 2001, reflecting a higher marginal tax rate phased in under foreign joint venture guidelines in China.
Xue Jun Song, president and CEO, said: "We are pleased to report significant progress in our business across the board. The high demand for our flour products, requiring sub-contracting of additional milling capacity during Q2, and growth in the sales of our higher margin instant noodle products are encouraging."
Song continued, "We are currently reviewing strategic acquisitions both in our flour milling and instant noodle businesses. Completion of these acquisitions will further our position as one of the leading food manufacturers in China."
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