China based food company New Dragon Asia Corp has announced it has acquired Shandong Xinlongya Distribution Co Ltd, a state-owned enterprise based in China's Shandong Province that has served as the company's sole export distributor. Terms were not disclosed.

"The acquisition underscores the company's ongoing success at identifying state-owned acquisition candidates that complement and leverage our vertically integrated operations," said Li Xia Wang, chief executive officer of New Dragon Asia.

Wang indicated that the acquisition is expected to enhance the profitability of the company's export business, supported by favourable tax benefits and more direct control over foreign currency income and product sales activities.