Man Shing Agricultural Holdings, Inc. (OTCBB: 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 year ended June 30,
2012. The Company had earnings per share of $0.23 for the fiscal
year ending June 30, 2012. Additionally, Man Shing reported $14.1
million, or $0.29 per share, in cash and cash equivalents as of
June 30, 2012.
Financial Highlights for the year Ended June
30, 2012
- Revenue totaled $33.4 million;
- Gross profit increased 9.3% to $14.9 million, gross margin
improved to 44.5% vs. 42.2% YOY;
- Total operating expenses decreased 21.5%, driven by a decrease
of 23.9% in selling and marketing expenses and a decrease of 16.9%
in general and administrative expenses;
- Net income increased 24.1% to $11.2 million;
- EPS of $0.23 based on 48.1 million shares outstanding;
- Cash and cash equivalents totaled $14.1 million, or $0.29 per
share.
Mr. Shili Liu, Chairman and Chief Executive Officer of Man
Shing, stated, "During our 2012 fiscal year we achieved several key
milestones from a financial and operational perspective.
Financially, we increased net income while managing costs and
driving profitability. Revenue for the year increased 3.5% while
gross profit increased 9.3%, gross profit margin improved to 44.5%
and net income increased 24.1%. Our increased profitability during
the year was driven by our ability to leverage our current
infrastructure to maintain stable cost of sales. We successfully
reduced our operating expenses by 22% year-over-year as sales and
marketing and general and administrative expenses decreased 23.9%
and 16.9%, respectively. Operationally, we continue to experience
stable demand for our existing products. Additionally, we are
always testing the market with new and potentially higher margin
products to increase profits."
Financial results for the year ended June 30,
2012
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2012 Fiscal Year End (USD) (audited)
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Year Ended June 30, 2012 2011 CHANGE
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Revenue $33.4 million $32.3 million +3.5%
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Gross Profit $14.9 million $13.6 million +9.3%
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Gross Profit Margin 44.5% 42.2% +5.5%
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Total Operating Expenses $3.5 million $4.5 million -21.5%
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Net Income $11.2 million $9 million +24.1%
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Basic EPS* $0.23 $0.21 -
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Diluted EPS ** $0.23 $0.15 -
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* Based on 48.1 million and 42.3 million shares outstanding for 2012 and
2011 fiscal years, respectively.
** Based on 49.5 million and 59.6 million fully diluted shares outstanding
for 2012 and 2011 fiscal years, respectively.
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Financial Results for the year Ended June 30,
2012 Revenue for the fiscal year ended June 30, 2012 totaled
$33.4 million, an increase of 3.5%, as compared to $32.3 million
for the fiscal year ended June 30, 2011. Revenues were derived from
the sales of our frozen and fresh ginger and other agricultural
products. Geographic revenue contribution during the 2012 fiscal
year was 66% through distribution partners within China and direct
sales of 22% to Japan, 7% to the United Kingdom, 3% to the
Netherlands and 2% to other countries.
Cost of sales for the 2012 fiscal year totaled $18.5 million, a
decrease of 1%, compared to $18.7 million for the 2011 fiscal year.
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 decreased from 58% in fiscal 2011 to
55% year-over-year, due primarily to a decrease in the costs of
planting and production costs, such as raw material costs.
Gross profit for the 2012 fiscal year totaled $14.9 million, an
increase of 9.3% compared to $13.6 million for the 2011 fiscal
year. Gross profit margin increased to 44.5% during the 2012 fiscal
year as compared to 42.2% for the prior fiscal year. The increase
in gross profit margin was primarily attributable to a decrease in
the cost of planting and production.
Operating expenses for the 2012 fiscal year decreased 21.5% to
$3.5 million as compared to $4.5 million the prior fiscal year.
Selling and marketing expenses decreased 23.9% year-over-year and
general and administrative expenses decreased 16.9%.
Net income for the 2012 fiscal year totaled $11.2 million, an
increase of 24.1% as compared to $9 million for the prior year. Net
income margin improved to 34% for the 2012 fiscal year as compared
to 28% the year prior. Basic and diluted earnings per share for the
2012 fiscal year were $0.23, based on 48.1 million basic and 49.5
million diluted shares outstanding, respectively. These results
compare to basic and diluted earnings per share of $0.21 and $0.15
for the same periods the year prior, based on 42.3 million basic
and 59.6 million diluted shares outstanding, respectively.
Liquidity and Capital Resources As of June
30, 2012, Man Shing had approximately $14.1 million in cash and
cash equivalents, or $0.29 per share based on 48.1 million shares
outstanding. As of June 30, 2012, total current assets and total
assets were approximately $39.5 million and $41.3 million,
respectively. Total current liabilities and total liabilities were
approximately $5.7 million, respectively. Shareholder's equity
totaled $35.6 million as of June 30, 2012, as compared to $23.7
million as of June 30, 2011.
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
Consolidated Balance Sheets
As of June 30, 2012 and 2011
June 30, June 30,
2012 2011
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 14,114,741 $ 7,081,297
Accounts receivable, trade, net 8,487,628 6,330,625
Inventories 6,863,831 4,880,266
Deferred inventory costs 9,750,038 9,064,571
Prepayments 269,607 371,881
Other receivables 817 787
Tax recoverable 4,418 577,995
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TOTAL CURRENT ASSETS 39,491,080 28,307,422
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FIXED ASSETS
Property, plant, and equipment 2,199,393 1,619,838
Accumulated depreciation (433,015) (257,250)
Construction in progress - 211,752
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NET FIXED ASSETS 1,766,378 1,574,340
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TOTAL ASSETS $ 41,257,458 $ 29,881,762
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Convertible note $ 1,500,000 $ -
Short-term borrowing 1,960,505 1,916,064
Accounts payable 486,683 691,628
Other payables and accrued liabilities 1,409,089 1,685,016
Receipts in advance 349,366 402,557
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TOTAL CURRENT LIABILITIES 5,705,643 4,695,265
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LONG-TERM LIABILITIES
Convertible note - 1,500,000
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TOTAL LIABILITIES 5,705,643 6,195,265
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STOCKHOLDERS' EQUITY
Preferred stock, $.001 par, 25,000,000 shares
authorized, 0 and 176,750 shares issued and
outstanding at June 30, 2012 and June 30,
2011, respectively - 177
Common stock, $.001 par, 175,000,000 shares
authorized, 48,226,958 and 48,026,958 shares
issued and outstanding at June 30, 2012 and
June 30, 2011, respectively 48,227 48,027
Additional paid-in capital 4,242,522 4,210,545
Accumulated other comprehensive income 1,813,485 1,180,599
Statutory reserves 10,198,223 5,823,139
Accumulated earnings 19,249,358 12,424,010
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TOTAL STOCKHOLDERS' EQUITY 35,551,815 23,686,497
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 41,257,458 $ 29,881,762
============ ============
The accompanying notes are on integral part of these consolidated financial
statements.
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
For the Years Ended June 30, 2012 and 2011
For the Years Ended
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June 30, 2012 June 30, 2011
Revenues
Sales $ 33,395,103 $ 32,253,922
Cost of sales 18,527,142 18,652,553
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Gross profit 14,867,961 13,601,369
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Operating expenses
Selling and marketing expenses 2,263,770 2,974,674
General and administrative expenses 1,252,109 1,505,852
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Total operating expenses 3,515,879 4,480,526
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Operating income 11,352,082 9,120,843
Other income (expenses), net
Financial expenses, net (201,083) (169,791)
Interest on convertible note (120,000) (120,000)
Non-operating income, net 169,433 195,989
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Total other income (expenses), net (151,650) (93,802)
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Income from operations before income tax 11,200,432 9,027,041
Income taxes - -
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Net income 11,200,432 9,027,041
Other comprehensive income, net
Foreign currency translation gain, net 632,886 991,412
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Total comprehensive income $ 11,833,318 $ 10,018,453
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Weighted average number of shares outstanding
Basic 48,094,355 42,273,533
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Diluted 49,503,513 59,590,191
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Earnings per share
Basic $ 0.23 $ 0.21
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Diluted $ 0.23 $ 0.15
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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
www.AllianceAdvisors.net
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