MSAH Man Shing Agricultural Holdings Inc (CE)

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 2012 fiscal first quarter ended September 30, 2011.

Mr. Shili Liu, Chairman and Chief Executive Officer of Man Shing, stated, "Our financial results for the first quarter of our 2012 fiscal year were in line with our expectations. Growth in our business is directly attributable to the amount of land we have on which to harvest our high quality fresh ginger and other vegetable products. During the quarter, the demand for our products remained at an all-time high and we managed our inventory accordingly as we approached the upcoming October harvest season. We are encouraged that we were able to complete harvesting on our original 5.2 million square meters of farmland and the 2.4 million square meters we leased in March 2011. The addition of the new land will allow us to increase our inventory, fulfill more purchase orders and will ultimately lead to an increase in revenue and earnings going forward."

Financial results for the 2012 fiscal first quarter ended September 30, 2011
2012 Fiscal First Quarter (USD) (unaudited)
Three Months Ended September 30,	2011	2010	CHANGE
Revenue	$7.2 million	$7.3 million	-2%
Gross Profit	$2.9 million	$3.2 million	-8.3%
Gross Profit Margin	40.5%	43.2%	-6.3%
Net Income	$2.1 million	$2.2 million	-6.8%
Basic EPS*	$0.04	$0.06	--
Diluted EPS **	$0.04	$0.03	--
* Based on 48 million and 36.4 million shares outstanding for 2012 and 2011 fiscal first quarters, respectively. ** Based on 49.8 million and 72.4 million fully diluted shares outstanding for 2012 and 2011 fiscal first quarters, respectively.

Financial Results for the 2012 Fiscal First Quarter Ended September 30, 2011

Revenue for the 2012 fiscal first quarter ended September 30, 2011 totaled $7.2 million compared to $7.3 million for the same period in fiscal 2011. The slight decrease in revenue was mainly attributable to the lower supply of high quality fresh ginger inventory available to export year over year. Demand remained at an all time high and nearly all of our existing inventory was shipped during the 2012 fiscal first quarter leading into harvest season in October.

Cost of sales for the fiscal first quarter ended September 30, 2011 totaled $4.3 million, or 60% of revenue, an increase of 2.7% compared to $4.2 million, or 57% of revenue, for the fiscal first quarter ended September 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 increased mainly due to the slight increase in costs of planting and production. The Company minimizes waste by storing the ginger in a thermostatic warehouse.

Gross profit for the fiscal first quarter ended September 30, 2011 totaled $2.9 million, a decrease of 8.3% compared to $3.2 million for the fiscal first quarter ended September 30, 2010. Gross profit margin was 40.5% for the 2012 fiscal first quarter as compared to 43.2% for the 2011 fiscal first quarter. The decrease in gross profit margin was due primarily to the slight increase in material costs.

Operating expenses for the fiscal first quarter ended September 30, 2011 totaled $790,000 as compared to $932,000 for the fiscal first quarter ended September 30, 2010. The decrease in operating expenses was due to the decrease in selling and marketing expenses and general and administrative expenses. Selling and marketing expenses decreased by approximately $137,000, or as a percentage of revenue from 11% to 9%, year over year due to the decrease in distribution costs.

Net income for the 2011 fiscal first quarter ended September 30, 2011 totaled $2.1 million, compared to $2.2 million for the 2011 fiscal first quarter. Basic and diluted earnings per share for the 2012 fiscal first quarter were $0.04, based on 48 million basic and 49.8 million diluted shares outstanding versus basic and diluted earnings per share of $0.06 and $0.03 for the same period the year prior, based on 36.3 million basic and 72.4 million diluted shares outstanding.

Net income margin remained stable at 29% for the 2012 fiscal first quarter as compared to 30% for the same period the prior year. The decrease in net income is attributable to the slight decrease in sales during the quarter. However, the Company was able to maintain expenses at a low level as a percentage of revenue to maintain a stable net income margin.

Liquidity and Capital Resources

As of September 30, 2011, Man Shing had approximately $11.4 million in cash and cash equivalents. As of September 30, 2011, total current assets and total assets were approximately $30.8 million and $32.4 million, respectively. During the same period, total current liabilities and total liabilities were approximately $4.7 million and $6.2 million, respectively. Working capital totaled $26 million as of September 30, 2011, as compared to $23.6 million as of June 30, 2011. Shareholder's equity totaled $26.2 million as of September 30, 2011, 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 Statement:

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.

Condensed Consolidated Balance Sheets (Unaudited)
ASSETS	September 30, 2011	June 30, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 11,368,919	$  7,081,297
Accounts receivable, trade	6,876,540	6,330,625
Inventories	2,439,803	5,443,117
Deferred inventory costs	9,660,017	9,064,571
Prepayments	427,104	371,881
Other receivables	673	787
Tax recoverable	--	15,144
TOTAL CURRENT ASSETS	30,773,056	28,307,422
FIXED ASSETS
Property, plant, and equipment	1,716,628	1,619,838
Accumulated depreciation	(287,187)	(257,250)
Construction in progress	215,640	211,752
NET FIXED ASSETS	1,645,081	1,574,340
TOTAL ASSETS	$ 32,418,137	$ 29,881,762
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowing	$ 1,951,250	$ 1,916,064
Accounts payable	824,895	691,628
Other payables and accrued liabilities	1,489,055	1,685,016
Receipts in advance	372,532	402,557
Tax payable	104,500	--
TOTAL CURRENT LIABILITIES	4,742,232	4,695,265
LONG-TERM LIABILITIES
Convertible note	1,500,000	1,500,000
TOTAL LIABILITIES	$ 6,242,232	$ 6,195,265
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par, 25,000,000 shares authorized,  176,750 shares issued and outstanding at September 30, 2011 and June 30, 2011, respectively	$ 177	$ 177
Common stock, $.001 par, 175,000,000 shares authorized, 48,026,958 shares issued and outstanding at September 30, 2011 and June 30, 2011, respectively	48,027	48,027
Additional paid-in capital	4,225,545	4,210,545
Accumulated other comprehensive income	1,596,797	1,180,599
Statutory reserves	5,823,139	5,823,139
Retained earnings	14,482,220	12,424,010
TOTAL STOCKHOLDER'S EQUITY	$ 26,175,905	$ 23,686,497
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 32,418,137	$ 29,881,762

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
For the Three Months Ended September 30, 2011 and 2010
	For the Three Months Ended
	September 30, 2011	September 30, 2010
Revenues
Sales	$ 7,181,048	$ 7,333,954
Cost of sales	4,274,273	4,163,709
Gross profit	2,906,775	3,170,245
Operating expenses
Selling and marketing expenses	645,373	782,208
General and administrative expenses	144,718	150,202
Total Operating expenses	790,091	932,410
Operating income	2,116,684	2,237,835
Other income (expenses), net
Financial income (expenses), net	(77,893)	(28,867)
Non-operating income (expense), net	19,419	(236)
Total other income (expenses), net	(58,474)	(29,103)
Income from operations before income taxes	2,058,210	2,208,732
Income taxes	--	--
Net Income	2,058,210	2,208,732
Other comprehensive income, net
Foreign currency translation gain, net	416,198	247,962
Total comprehensive income	$ 2,474,408	$ 2,456,694
Weighted average number of shares outstanding
Basic	48,026,958	36,345,522
Diluted	49,794,458	72,389,015
Earnings per share
Basic	$ 0.04	$ 0.06
Diluted	$ 0.04	$ 0.03

CONTACT: Company Contact:
         Man Shing Agricultural Holdings, Inc.
         Mr. Shili Liu, CEO, Chairman and president
         paulson@msaginger.com
         Mr. Kenny Chow, CFO
         kenny@msaginger.com
         +86-536-464-4888
         +852-2530-3122
         www.msaginger.com
         
         Investor Contact:
         Alliance Advisors, LLC
         Alan Sheinwald, President & Founder
         (914) 669-0222
         ASheinwald@AllianceAdvisors.net
         www.AllianceAdvisors.net