Man Sang Holdings, Inc. (the "Company") (NYSE Alternext U.S.: MHJ)
(AMEX: MHJ) announced today the following, with regards to its 10Q
filing which was filed with the SEC this morning:
Business Review
The Group had two primary business segments during the six
months ended September 30, 2008. One business segment is engaged in
the purchase, processing, assembling, merchandising and wholesale
distribution of pearls and jewelry products ("Pearl Operations")
and the other is engaged in real estate development and real estate
leasing ("Real Estate Operations"). Net sales for the six months
ended September 30, 2008 decreased by HK$10.6 million, or 5.0%,
from HK$210.1 million for the six months ended September 30, 2007,
which was wholly attributable to our Pearl Operations, to HK$199.5
million for the six months ended September 30, 2008, consisting of
HK$190.4 million attributable to our Pearl Operations and HK$9.1
million attributable to our Real Estate Operations.
Gross Profit
Gross profit increased by HK$3.7 million, or 5.1%, from HK$73.2
million for the six months ended September 30, 2007 to HK$76.9
million for the six months ended September 30, 2008, consisting of
HK$71.5 million attributable to our Pearl Operation and HK$5.4
million attributable to our Real Estate Operations.
Net income decreased by HK$3.4 million, or 26.9%, from HK$12.6
million for the six months ended September 30, 2007 to HK$9.2
million for the six months ended September 30, 2008.
Pearl Operations
Net sales attributable to our Pearl Operations decreased by
HK$19.7 million, or 9.3%, from HK$210.1 million for the six months
ended September 30, 2007 to HK$190.4 million for the six months
ended September 30, 2008. Decreases in net sales attributable to
our Pearl Operations were primarily due to a decrease in market
demand in the United States and Asian countries including Hong Kong
due to the relative weakness of the United States economy and
global financial crisis.
Net sales to the United States market decreased by HK$17.0
million, or 27.8%, from HK$60.9 million for the six months ended
September 30, 2007 to HK$43.9 million for the six months ended
September 30, 2008. Net sales to the Asia market decreased by
HK$17.6 million, or 29.2%, from HK$60.2 million for the six months
ended September 30, 2007 to HK$42.6 million for the six months
ended September 30, 2008. Net sales to the Europe market increased
by HK$8.6 million, or 11.1%, from HK$77.6 million for the six
months ended September 30, 2007 to HK$86.2 million for the six
months ended September 30, 2008.
Gross profit attributable to our Pearl Operations decreased by
HK$1.7 million, or 2.3%, from HK$73.2 million for the six months
ended September 30, 2007 to HK$71.5 million for the six months
ended September 30, 2008.
Gross profit margin increased from 34.8% for the six months
ended September 30, 2007 to 37.6% for the six months ended
September 30, 2008. The increase in gross profit margin was
primarily due to our continued (a) implementation of effective cost
controls, (b) enhancement of production efficiency and (c) shift in
our sales focus to sales of higher value jewelry products.
Real Estate Operations
Net sales attributable to our Real Estate Operations was HK$9.1
million for the six months ended September 30, 2008. Gross profit
attributable to real estate sales in our Real Estate Operations was
HK$5.4 million for the six months ended September 30, 2008. Gross
profit margin attributable to real estate sales in our Real Estate
Operations was 59.2% for the six months ended September 30, 2008.
We had not yet commenced real estate sales during the corresponding
six months ended September 30, 2007.
Gross rental income increased by HK$9.7 million, or 367.9%, from
HK$2.6 million for the six months ended September 30, 2007 to
HK$12.4 million for the six months ended September 30, 2008. The
increase was primarily attributable to an increase of HK$8.6
million in rental income attributable to CP&J City. We did not
have any rental income attributable to CP&J City for the six
months ended September 30, 2007. In addition, we had additional
rental income of HK$1.1 million from our operations at Man Sang
Industrial City as additional units which had been held for
self-use were leased to customers.
Man Sang Holdings Inc. will be conducting their earnings
conference call/webcast on November 14, 2008 at 9:30 a.m. ET, in
which we will discuss future tends in the industry as well as our
planned measures moving forward. To participate in the
call/webcast, visitors would log into
http://www.investorcalendar.com/IC/CEPage.asp?ID=137392 or dial
(Toll Free): 877-407-0782 / (International): 201-689-8567. The
teleconference replay will remain available until: 11/21/08/ 11:59
PM for those that cannot participate during the actual time.
Our complete earnings filing can be found on the SEC website at:
http://www.sec.gov/cgi-bin/browse-edgar?company=man+sang+holdings&CIK=&type=&owner=include&count=40&action=getcurrent
About Man Sang Holdings, Inc.
Man Sang Holdings, Inc. and its subsidiaries (together the "Man
Sang Group") are one of the world's largest purchasers and
processors of Chinese cultured and freshwater pearls. The Group had
two main business segments during the year. One business segment is
engaged in the purchase, processing, assembling, merchandising and
wholesale distribution of pearls and jewelry products ("Pearl
Operations") and the other is engaged in real estate development
and real estate leasing ("Real Estate Operations").
The Pearl Operations include jewelry purchasing, processing,
assembling, design, export, merchandising and wholesale
distribution of pearls and jewelry products, including Chinese
cultured pearls, Chinese freshwater pearls, Japanese cultured
pearls, Tahitian and South Sea pearls, as well as pearls and
jewelry products. The Group operates its own pearl processing
facilities in Shenzhen, the PRC.
The Real Estate Operations include the development and
management of the China Pearls and Jewellery City ("CP&J City")
in Zhuji of Zhejiang Province, the PRC. Man Sang is the controlling
shareholder of the project. CP&J City will be the pearl and
jewelry trading platform covering processing, manufacturing,
research and development and trading of jewelry products and also
provision of related services including logistics, electronic
commerce, exhibition and convention, accommodation, catering and
entertainment.
*This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, which are, by their nature, subject to risks and
uncertainties. This Act provides a "safe harbor" for
forward-looking statements to encourage companies to provide
prospective information about themselves so long as they identify
these statements as forward-looking and provide meaningful
cautionary statements identifying important factors that could
cause actual results to differ from the projected results. All
statements, other than statements of historical fact, including
statements regarding industry prospects and future results of
operations or financial position, made in this Form 10-Q are
forward looking. Words such as "anticipates," "believes,"
"expects," "future" and "intends" and similar expressions may
identify forward-looking statements. These forward-looking
statements include, without limitation, statements relating to: our
future performance, our expansion efforts, demand for our products;
the state of economic conditions and our markets; currency and
exchange rate fluctuations; and our ability to meet our liquidity
requirements. These forward-looking statements are based on
assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe to be
appropriate in particular circumstances. However, whether actual
results and developments will meet our expectations and predictions
depend on a number of known and unknown risks and uncertainties and
other factors, any or all of which could cause actual results,
performance or achievements to differ materially from our
expectations, whether expressed or implied by such forward-looking
statements (which may relate to, among other things, the Company's
sales, costs and expenses, income, inventory performance, and
receivables). Primarily engaged in the processing and trading of
pearls and pearl jewelry products, and in real estate investment,
our ability to achieve our objectives and expectations are derived
at least in part from assumptions regarding economic conditions,
consumer tastes, and developments in our competitive environment.
The following assumptions, among others, could materially affect
the likelihood that we will achieve our objectives and expectations
communicated through these forward-looking statements: (i) that low
or negative growth in the economies or the financial markets of our
customers, particularly in the United States and in Europe, will
not occur and reduce discretionary spending on goods that might be
perceived as "luxuries"; (ii) that the Hong Kong dollar will remain
pegged to the US dollar at US$1 to HK$7.8; (iii) that customers'
choice of pearls vis-�-vis other precious stones and metals will
not change adversely; (iv) that we will continue to obtain a stable
supply of pearls in the quantities, of the quality and on terms we
require; (v) that there will not be a substantial adverse change in
the exchange relationship between the renminbi ("RMB") and the Hong
Kong or US dollar; (vi) that there will not be a substantial
increase in the tax burdens of our subsidiaries operating in the
PRC; (vii) that there will not be a substantial change in climate
and environmental conditions at the source regions of pearls that
could have a material adverse effect on the supply and pricing of
pearls; and (viii) that there will not be a substantial adverse
change in the real estate market conditions in the PRC and in Hong
Kong. The following discussion of our results of operation, and
liquidity and capital resources should be read in conjunction with
the financial statements and the notes thereto included elsewhere
in this Form 10-Q and with our annual report on Form 10-K for the
year ended March 31, 2008, which contains a further description of
risks and uncertainties related to forward-looking statements, as
well as other aspects of our business. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this report. We will not publicly
release any revisions to these forward-looking statements after the
date hereof. Readers are urged, however, to review the factors set
forth in reports that we file from time to time with the Securities
and Exchange Commission.
CONTACTS: Man Sang Holdings, Inc. Mr. Martin Pak 011 (852) 2317
9369 E-mail: Email Contact The Altman Group Patricia Baronowski
Email Contact
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