Man Shing Exceeds 2011 Fiscal Year End Guidance With $9 Million in Net Income or $0.21 EPS
(firmenpresse) - HONG KONG -- (Marketwire) -- 09/28/11 -- Man Shing Agricultural Holdings, Inc. (OTCBB: MSAH) (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 year ending June 30, 2011. Net income for the 2011 fiscal year totaled $9 million, or basic earnings per share of $0.21, exceeding guidance of $8.8 million.
Revenue increased 43.8% year-over-year to $32.3 million;
Gross profit increased 61.8% to $13.6 million; gross margin improved to 42.2%;
Net income increased 72.1% to $9 million;
Basic earnings per share of $0.21 based on 42.3 million weighted average shares outstanding;
Cash and cash equivalents totaled $7.1 million;
Working capital increased year-over-year by $13.3 million to $23.6 million.
Successfully leased an additional 2.4 million square meters of farmland in March 2011, increasing total farmland by approximately 45% to 7.7 million square meters.
Focused on producing high quality ginger which provides several important advantages including a higher price point and increased customer confidence.
Appointed Mr. Xuguang Qiao and Mr. Kun Xu to the Board of Directors, each of whom have extensive experience in the agricultural industry.
Approximately 3.4 million preferred shares outstanding were canceled.
Mr. Shili Liu, Chairman and Chief Executive Officer of Man Shing, stated, "We are pleased that we generated $9 million in net income and exceed our guidance. Additionally, we successfully increased our land capacity by 45%, from 5.3 million to 7.7 million square meters, allowing us to significantly increase our production capacity for the current fiscal year. We completed planting on all 7.7 million square meters in April and will begin to harvest the ginger by October 2011. The uniqueness of our business model is apparent as we increase our land capacity and are able to continually implement our quality standards without incurring additional expenses. This enabled us to increase our gross margins year over year from 37.5% in fiscal 2010 to 42.2% in fiscal 2011. Our company is well capitalized and as of June 30, 2011, we had approximately $7.1 million in cash which will provide us with sufficient capital to fuel the future growth of the Company."
Revenue for the fiscal year ended June 30, 2011 totaled $32.3 million, an increase of 43.8% as compared to $22.4 million for the same period in 2010. The revenue increase was due primarily to the increase in sales of frozen and fresh ginger and other agricultural products and the leasing of more farmland, our marketing strategy and customer loyalty. The average market price of ginger reached $1,366 per ton during fiscal 2011, compared to the average market price of $1,046 per ton for the same period in fiscal 2010.
Cost of sales for the fiscal year ended June 30, 2011 totaled $18.7 million, or 57.8% of revenue, an increase of 33.1% compared to $14 million, or 62.5% of revenue, for the fiscal year ended June 30, 2010. Cost of sales includes the costs associated with the planting, harvesting and maintaining of ginger and other agricultural products. Cost of sales as a percentage of revenues decreased mainly due to cost controls associated with planting and production and the market price appreciation of ginger. The Company minimizes waste by storing the ginger in a thermostatic warehouse.
Gross profit for the fiscal year ended June 30, 2011 totaled $13.6 million, an increase of 61.8% compared to $8.4 million for the fiscal year ended June 30, 2010. Gross profit margin improved to 42.2% for the 2011 fiscal year as compared to 37.5% for the 2010 fiscal year. The increase in gross profit margin was primarily attributable to the increase in selling prices and control of material costs and overhead resulting from better utilization of facilities due to economies of scale from larger output volume.
Operating expenses for the fiscal year ended June 30, 2011 totaled $4.5 million as compared to $3.1 for the fiscal year ended June 30, 2010. The increase in operating expenses for fiscal 2011 consisted of an increase in selling and marketing expenses due primarily to the increase in distribution costs and an increase in sales and marketing activities to both existing and new customers.
Net income for the 2011 fiscal year ended June 30, 2011 totaled $9 million, an increase of 72.1% compared to $5.2 million for the 2010 fiscal year ended June 30, 2010. Basic earnings per share for fiscal 2011 were $0.21, based on 42.3 million basic shares outstanding versus earnings per share of $0.18 for fiscal 2010, based on 28.8 million basic shares outstanding. Diluted earnings per share for fiscal 2011 totaled $0.15 based on 59.6 million shares outstanding, as compared to $0.07 based on 72.3 million shares outstanding for fiscal 2010.
As of June 30, 2011, Man Shing had approximately $7.1 million in cash and cash equivalents. As of June 30, 2011, total current assets and total assets were approximately $28.3 million and $29.9 million, respectively. During the same period, total current liabilities and total liabilities were approximately $4.7 million and $6.2 million, respectively. Working capital increased year-over-year by $13.3 million to $23.6 million as of June 30, 2011, as compared to $10.3 million as of June 30, 2010. Shareholder's equity increased 146% to $23.7 million as of June 30, 2011, compared to $9.6 million as of June 30, 2010.
Mr. Shili Liu concluded, "As a public company, it will always be our intention to provide shareholders and prospective investors with business transparency and open communication as it relates to capital markets. We will continue to work diligently to continue building the trust of the PRC government, our loyal customer base and our shareholders. Strong relationships with the local government and customers and our focus on quality products are at the heart of our success. We are looking forward to the upcoming harvest season."
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
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 () 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.
Mr. Shili Liu
CEO, Chairman and president
Mr. Kenny Chow
CFO
+86-536-464-4888
+852-2530-3122
Alliance Advisors, LLC
Alan Sheinwald
President & Founder
(914) 669-0222
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Datum: 28.09.2011 - 16:07 Uhr
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