Watari and the 7 Monsters

飛龍王子破群妖

Also known as Magical Voyage of The Karate Kids, Kung-Fu Kids, Watari And The Seven Monsters, Superboy And Supergirl Against The 7 Monsters, 桃太郎斬七妖

“THE LEGEND OF THE BOY WONDER IN A NEW ERA OF DREADFUL ADVENTURE!”

"A young boy and his sister, whose parents were kidnapped, and have been raised by their Grand Parents, decide that they are going to rescue their parents and free them for the evil Chin Chun Ping and his Villain Swordswoman Knight Wang. What follows is a journey into booby traps, sinister monsters, thrills, spills, and chills. And a gigantic three headed firebreathing terrifying flying dragon which relentlessly pursues the Karate kids." - English DVD description. This is not The Magic World of Watari, though both were released in the same year.