1089590--3/23/2006--NEW_DRAGON_ASIA_CORP

related topics
{operation, international, foreign}
{regulation, change, law}
{product, liability, claim}
{cost, contract, operation}
{cost, regulation, environmental}
{interest, director, officer}
{gas, price, oil}
{product, market, service}
{investment, property, distribution}
{loan, real, estate}
{stock, price, share}
RISKS RELATED TO OUR CLASS A COMMON STOCK RISKS RELATED TO OUR BUSINESS Our business may experience adverse effects from competition in the noodle, flour and soybean product markets. An inability to respond quickly and effectively to new trends would adversely impact our competitive position. Increases in prices of main ingredients and other materials could adversely affect our business. We are subject to risks associated with joint ventures and third party agreements. We may be subject to product liability claims and product recalls, which could negatively impact its profitability. We have limited business insurance coverage. We have a limited concentration of credit risk. We may experience risks resulting from our plans for expansion. RISKS ASSOCIATED WITH DOING BUSINESS IN THE PEOPLE S REPUBLIC OF CHINA. We are subject to the risks associated with doing business in the People s Republic of China. Economic reform policies or nationalization could result in a total investment loss in our Class A Common Stock. The Chinese legal system is not fully developed and has inherent uncertainties that could limit the legal protections available to investors. Enforcement of regulations in China may be inconsistent. We may experience lengthy delays in resolution of legal disputes. We may experience an impact of the United States Foreign Corrupt Practices Act on our business. Impact of governmental regulation on our operations. It may be difficult to serve us with legal process or enforce judgments against our management or us. The Chinese government could change its policies toward private enterprise or even nationalize or expropriate it, which could result in the total loss of your investment. If relations between the United States and China worsen, our stock price may decrease and we may have difficulty accessing U.S. capital markets. The Chinese economic, political and social conditions as well as government policies could affect our business. Fluctuations in the value of the Chinese Renminbi relative to foreign currencies could affect our operating results.

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