Man Shing Agricultural Holdings, Inc. (OTCQB: MSAH) ("Man Shing,"
the "Company," "we," "us," or "our"), located in the Shandong
Province and one of the largest Chinese exporters of high quality,
fresh ginger to Japan, the United Kingdom, and the Netherlands,
today announced the financial results for the fiscal first quarter
ending September 30, 2012. Revenue and net income totaled $7.1
million and $2 million or $0.04 per diluted share.
Mr. Shili Liu, Chairman and Chief Executive Officer of Man
Shing, stated, "We are pleased with the stable financial results we
achieved during the quarter. Our financial results for the first
quarter of our 2013 fiscal year were in line with our expectations.
Our quarterly results on a year-over-year comparable basis were
flat mostly due to a slight decrease in volume and slight increases
in production costs. Overall the demand for our products remained
stable with margins at approximately 40%. During the quarter, we
managed our inventory as we approached the October harvest season.
We are encouraged that we were able to complete the harvesting on
our 7.7 million square meters of farmland. The harvest will allow
us to increase our inventory and fulfill outstanding purchase
orders."
Financial results for the fiscal first quarter
ended September 30, 2012
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2013 Fiscal First Quarter (USD) (audited)
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Ended September 30, 2012 2011 CHANGE
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Revenue $7.1 million $7.2 million -2%
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Gross Profit $2.8 million $2.9 million -5%
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Gross Profit Margin 39% 41% -5%
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Net Income $2 million $2.1 million -4%
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Basic and Diluted EPS* $0.04 $0.04 -
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* Based on 48.2 million basic and diluted shares outstanding for the 2013
fiscal first quarter. Based on 48 million and 49.8 million basic and
diluted shares outstanding for 2012 fiscal first quarter.
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Financial results for the first quarter ended
September 30, 2012 Revenue for the fiscal first quarter ended
September 30, 2012 totaled $7.1 million, a decrease of 2% as
compared to $7.2 million for the fiscal first quarter ended
September 30, 2011. Revenues were derived from the sale of our
frozen and fresh ginger and other agricultural products. The slight
decrease in revenue was attributable to a slight decrease in
production volume as compared to the same period the year prior.
Geographic revenue contribution during the 2013 fiscal first
quarter was 48.1% through distribution partners within China and
direct sales of 44.3% to Japan, 6.2% to the United Kingdom and 1.4%
to the Netherlands.
Cost of sales for the 2013 and 2012 fiscal first quarters
totaled approximately $4.3 million. Cost of sales includes the
costs associated with the planting, harvesting, and storing of
ginger and other agricultural products such as ginger seeds and
fertilizers. Cost of revenues as a percentage of total revenue
increased slightly to 61% in fiscal 2013 as compared to 60% for the
same period the year prior, due primarily to an increase in costs
of planting and production.
Gross profit for the 2013 fiscal first quarter totaled $2.8
million, a decrease of 5% compared to $2.9 million for the 2012
fiscal first quarter. Gross profit margin decreased to 39% during
the 2013 fiscal first quarter as compared to 41% for the same
period the prior year. The decrease in gross profit margin during
the period was due primarily to an increase in material costs and a
decrease in sales.
Net income for the 2013 fiscal first quarter totaled $2 million,
a decrease of 4% as compared to $2.1 million for the same period
the prior year. Net income margin was down slightly to 28% for the
2013 fiscal first quarter as compared to 29% for the same period
the prior year. Basic and diluted earnings per share for the 2013
and 2012 fiscal first quarters were $0.04, based on 48.2 million
basic and diluted shares outstanding for the 2013 fiscal period and
48 million basic and 49.8 million diluted shares outstanding for
the 2012 fiscal period.
Liquidity and Capital Resources As of
September 30, 2012, Man Shing had approximately $16.1 million in
cash and cash equivalents. As of September 30, 2012, total current
assets and total assets were approximately $41.6 million and $43.3
million, respectively. Total current liabilities and total
liabilities were both approximately $5.9 million. Current ratio
improved to 7.1 to 1 as of June 30, 2012 as compared to 6.9 to 1 as
of June 30, 2012. Shareholder's equity totaled $37.4 million as of
September 30, 2012, as compared to $35.6 million as of June 30,
2012.
About Man Shing Agricultural Holdings,
Inc. Man Shing Agricultural Holdings, Inc., through its
operating subsidiary in Shandong China, is focused on the
production and processing of fresh ginger and other select
vegetables such as onion and garlic. The Company produces high
quality ginger which meets the requirements of the British Retail
Consortium Global Food Standard. The Company focuses on customers
located in countries such as Japan and the European Union which are
food safety oriented. For further information about Man Shing
Agricultural Holdings, Inc., please visit the Company's website at
http://www.msaginger.com/
Forward-Looking Statements: This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934.
These statements relate to future events or our future financial
performance. We have attempted to identify forward-looking
statements by terminology including "anticipates," "believes,"
"expects," "can," "continue," "could," "estimates," "expects,"
"intends," "may," "plans," "potential," "predict," "should" or
"will" or the negative of these terms or other comparable
terminology. These statements are only predictions. Uncertainties
and other factors may cause our actual results, levels of activity,
performance or achievements to be materially different from any
future results, levels or activity, performance or achievements
expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
Our expectations are as of the date hereof, and we do not intend to
update any of the forward-looking statements after the filing date
to conform these statements to actual results, unless required by
law.
We file annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and proxy and information
statements and amendments to reports filed or furnished pursuant to
Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as
amended. You may read and copy these materials at the SEC's Public
Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You
may obtain information on the operation of the public reference
room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a
website (http://www.sec.gov) that contains reports, proxy and
information statements and other information regarding us and other
companies that file materials with the SEC electronically.
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
As of September 30, 2012 and June 30, 2012
September 30, June 30,
ASSETS 2012 2012
--------------- ---------------
CURRENT ASSETS
Cash and cash equivalents $ 16,114,315 $ 14,114,741
Accounts receivable, trade, net 9,123,971 8,487,628
Inventories 4,032,286 6,863,831
Deferred inventory costs 10,987,878 9,750,038
Prepayments 1,323,500 269,607
Other receivables 815 817
Tax recoverable 2,243 4,418
--------------- ---------------
TOTAL CURRENT ASSETS 41,585,008 39,491,080
--------------- ---------------
FIXED ASSETS
Property, plant, and equipment 2,202,577 2,199,393
Accumulated depreciation (476,159) (433,015)
--------------- ---------------
NET FIXED ASSETS 1,726,418 1,766,378
--------------- ---------------
TOTAL ASSETS $ 43,311,426 $ 41,257,458
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowing $ 1,955,528 $ 1,960,505
Convertible note 1,500,000 1,500,000
Accounts payable 535,067 486,683
Other payables and accrued liabilities 1,525,165 1,409,089
Receipts in advance 354,342 349,366
--------------- ---------------
TOTAL CURRENT LIABILITIES 5,870,102 5,705,643
--------------- ---------------
TOTAL LIABILITIES 5,870,102 5,705,643
--------------- ---------------
STOCKHOLDERS' EQUITY
Common stock, $.001 par, 175,000,000
shares authorized, 48,226,958 shares
issued and outstanding at September 30,
2012 and June 30, 2012, respectively 48,227 48,227
Additional paid-in capital 4,257,522 4,242,522
Accumulated other comprehensive income 1,715,675 1,813,485
Statutory reserves 10,198,223 10,198,223
Accumulated earnings 21,221,677 19,249,358
--------------- ---------------
TOTAL STOCKHOLDERS' EQUITY 37,441,324 35,551,815
--------------- ---------------
--------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 43,311,426 $ 41,257,458
=============== ===============
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive
Income
For the ThreeMonths Ended September 30, 2012 and 2011
For the Three Months Ended
--------------------------------
September 30, September 30,
2012 2011
Revenues
Sales $ 7,046,479 $ 7,181,048
Cost of sales 4,290,210 4,274,273
--------------- ---------------
Gross Profit 2,756,269 2,906,775
Operating expenses
Selling and marketing expenses 465,313 645,373
General and administrative expenses 293,239 144,718
--------------- ---------------
Total Operating Expenses 758,552 790,091
--------------- ---------------
Operating income 1,997,717 2,116,684
Other income (expenses), net
Financial expenses, net (49,974) (77,893)
Non-operating income, net 24,576 19,419
--------------- ---------------
Total other income (loss), net (25,398) (58,474)
--------------- ---------------
Income from Operations befer income tax 1,972,319 2,058,210
Income taxes -- --
--------------- ---------------
Net Income 1,972,319 2,058,210
Other comprehensive income, net
Foreign currency translation (loss)/gain,
net (97,810) 416,198
--------------- ---------------
Total comprehensive income $ 1,874,509 $ 2,474,408
=============== ===============
Weighted average number of shares
outstanding
Basic 48,226,958 48,026,958
=============== ===============
Diluted 48,226,958 49,794,458
=============== ===============
Earnings per share
Basic $ 0.04 $ 0.04
=============== ===============
Diluted $ 0.04 $ 0.04
=============== ===============
Company Contact: Man Shing Agricultural Holdings, Inc.
Mr. Shili Liu CEO, Chairman and president Email Contact Mr. Kenny
Chow CFO Email Contact +86-536-464-4888 +852-2530-3122
www.msaginger.com Investor Contact: Alliance Advisors, LLC
Alan Sheinwald President & Founder (914) 669-0222 Email Contact
Valter Pinto Vice President (914) 669-0222 x201 Email Contact
www.AllianceAdvisors.net
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