SOURCE: Man Sang Holdings, Inc.

November 13, 2007 10:26 ET

Man Sang Holdings, Inc. Earnings Announcement

NEW YORK, NY--(Marketwire - November 13, 2007) - Man Sang Holdings, Inc. (the "Company") (AMEX: MHJ) announced today the following, with regards to its 10Q filing which was filed this morning:

Business Review

For the six months ended September 30, 2007, the net sales of the Company increased by 8.7% to HK$210.1 million as compared to the same period last year. The increase in net sales was mainly due to an increase in sales of assembled pearl and jewelry finished products by 19.0% and increase in sales of South Sea pearls by 5.2% when compared with the same period in 2006. The Company expects the growth in the pearl segment will continue. For the six months ended September 30, 2007, net sales in the United Sates market increased by 27.7% compared to the same period in 2006.

Gross Profit

Gross profit margin had slightly increased from 30.9% to 34.9% when compared with the same period last year. It was mainly due to the efforts of the Company in controlling processing cost and attained production efficiency.

During the quarter ended September 30, 2007, the Company acquired additional interests in the Zhuji Project located in Zhuji, Zhejiang province, the PRC. Before this acquisition, the Company owned 49% of the Zhuji project. After the acquisition, the Company owned 55% of the Zhuji project. The Company expects the Zhuji project, which is a major trading platform for pearls and jewelry in the PRC, to broaden its customer base.

Future Trends

Defaults in sub prime mortgages triggered a global aversion to risk. In the face of economic uncertainty, the customers of the Company in the United States appeared to slow-down their purchasing decisions. As a result, the growth of net sales in the United States market slowed down in the second quarter compared with the first quarter. However, the Company does not expect this slowdown to spread to other regions. In the tradeshow of September 2007 held in Hong Kong, the Company received a positive response from customers of different regions.

The Company expects demand for luxury products to continue to increase along with continued improvement in global economic conditions. These factors should benefit the core business segment of South Sea pearls and assembled jewelry products of the Company.

The Company expects that the phase one of the Zhuji project will be completed in 2008 as planned. The tenants of approximately 600 units which previously occupied the existing old jewelry market in Zhuji have agreed to move into our newly built Zhuji's jewelry city ("Jewelry City"), and will occupy approximately 30% of the total units of the Jewelry City. The Company expects it will help push forward the attraction of its market.

The Company expects its property development segment will continue to be one of the core businesses of the Company and will contribute sustainable growth.

Complete 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 Man Sang Group is principally engaged in the purchasing, processing, assembling, merchandising and wholesale distribution of pearls, pearl jewelry and other jewelry products. In addition, the Man Sang Group owns and operates the Man Sang Industrial City, an industrial complex, located in Gong Ming Zhen, Shenzhen Special Economic Zone, PRC.

*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, including statements regarding industry prospects and future results of operations or financial position, made in this press release 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: the Company's future performance, the Company's expansion efforts, the state of economic conditions and the Company's market. These forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes to be appropriate in particular circumstances. However, whether actual results and developments will meet the Company's expectations and predictions depends 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 the Company's 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, the Company's ability to achieve its objectives and expectations are derived at least in part from assumptions regarding economic conditions, consumer tastes, and developments in its competitive environment. The following assumptions, among others, could materially affect the likelihood that the Company will achieve its objectives and expectations communicated through these forward-looking statements: (i) that low or negative growth in the economies or the financial markets of its 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 customer's choice of pearls vis-à-vis other precious stones and metals will not change adversely; (iv) that the Company will continue to obtain a stable supply of pearls in the quantities, of the quality and on terms required by the Company; (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 substantial increase in tax burden of subsidiaries of the Company operating in the PRC; (vii) that there will not be substantial change in climate and environmental conditions at the source regions of pearls that could have material effect on the supply and pricing of pearls; and (viii) that there will not be substantial adverse change in the real estate market conditions in the PRC and in Hong Kong. This press release should be read in conjunction with the financial statements and the notes thereto included elsewhere in this Form 10-Q and with the Company's annual report on Form 10-K for the year ended March 31, 2005. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company 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 the Company files from time to time with the Securities and Exchange Commission.

Contact Information

  • CONTACTS:
    Man Sang Holdings, Inc.
    Mr. Sonny Hung
    (852) 2317 9369
    E-mail: Email Contact