Thursday, September 29, 2011

Man Shing Exceeds 2011 Fiscal Year End Guidance With $9 Million in Net Income or $0.21 EPS

HONG KONG--(Marketwire -09/28/11)- Man Shing Agricultural Holdings, Inc. (OTC.BB: MSAH.OB - News) (OTCQB: MSAH.OB - News) (" 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.
Financial Highlights for the Fiscal Year Ended June 30, 2011

  • 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.

Operational Highlights for the Fiscal Year Ended June 30, 2011

  • 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."
Financial results for the twelve months ended June 30, 2011

Year to Date Financials (USD) (unaudited)
Twelve months ended June 30,          2011            2010         CHANGE
Revenue                           $32.3 million   $22.4 million    +43.8%
Gross Profit                      $13.6 million   $8.4 million     +61.8%
Gross Profit Margin                   42.2%           37.5%        +12.5%
Net Income                         $9 million     $5.2 million     +72.1%
Basic EPS*                            $0.21           $0.18        +16.7%
Diluted EPS **                        $0.15           $0.07        +114.3%
* Based on 42.3 million and 28.8 million shares outstanding for fiscal 2011
and 2010, respectively.
** Based on 59.6 million and 72.3 million fully diluted shares outstanding
for fiscal 2011 and 2010, respectively.

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