MAN SHING AGRICULTURAL HOLDINGS, INC

CIK:0001430060|SEC Filings

EARNINGS PER SHARE

3 Months Ended

Sep. 30, 2012

12.	EARNINGS PER SHARE

Basic earnings per share is computed using the weighted-average number of the common shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of common shares and common share equivalents outstanding during the period.

The following tables illustrate the computation of basic and diluted earnings per share:

	Three months ended September 30,
	2012		2011
Net income for the period	$	1,972,319	$	2,058,210

Determination of shares:
Weighted-average common shares outstanding (Basic)		48,226,958		48,026,958
Assumed conversion of preferred stock		—		1,767,500
Weighted-average common shares outstanding (Diluted)		48,226,958		49,794,458

Basic earnings per share	$	0.04	$	0.04
Diluted earnings per share	$	0.04	$	0.04

Conversion of the convertible notes (see note 9) is not assumed and the related 750,000 shares (Convertible notes of $1,500,000 at conversion price of $2) were not included in weighted average share calculation as the conversion would be anti-dilutive because the conversion price was higher than the market value per share of the common stock as of September 30, 2012 and 2011.

Unaudited Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,972,319	$ 2,058,210
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	44,290	24,965
Provision/(reversal) of doubtful accounts	3,134	(12,227)
Stock-based compensation to service providers	15,000	15,000
Increase (decrease) in cash from changes in:
Accounts receivable, trade	(661,819)	(491,588)
Prepayments	(1,055,476)	(51,026)
Deferred inventory costs	(1,263,898)	(424,776)
Inventories	2,817,020	3,072,807
Accounts payable	49,671	121,094
Tax recoverable	2,165	118,745
Other payables and accrued liabilities	118,037	(214,629)
Receipts in advance	5,868	(37,046)
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,046,311	4,179,529
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment	(8,777)	(66,386)
NET CASH USED IN INVESTING ACTIVITIES	(8,777)	(66,386)
Effect of exchange rate on cash	(37,960)	174,479
NET INCREASE IN CASH AND CASH EQUIVALENTS	1,999,574	4,287,622
CASH AND CASH EQUIVALENTS:
Beginning of period	14,114,741	7,081,297
End of period	16,114,315	11,368,919
Supplemental disclosure of cash flow information
Cash paid for Interest	60,599	63,923
Cash paid for Income taxes	0	0
Non-cash investing and financing activities:
Stock-based compensation to service providers	$ 15,000	$ 15,000

Condensed Consolidated Balance Sheets (unaudited) (USD $)	Sep. 30, 2012	Jun. 30, 2012
ASSETS
Cash and cash equivalents	$ 16,114,315	$ 14,114,741
Accounts receivable, trade, net	9,123,971	8,487,628
Inventories	4,032,286	6,863,831
Deferred inventory costs	10,987,878	9,750,038
Prepayments	1,323,500	269,607
Other receivables	815	817
Tax recoverable	2,243	4,418
TOTAL CURRENT ASSETS	41,585,008	39,491,080
FIXED ASSETS
Property, plant, and equipment	2,202,577	2,199,393
Accumulated depreciation	(476,159)	(433,015)
NET FIXED ASSETS	1,726,418	1,766,378
TOTAL ASSETS	43,311,426	41,257,458
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowing	1,955,528	1,960,505
Convertible note	1,500,000	1,500,000
Accounts payable	535,067	486,683
Other payables and accrued liabilities	1,525,165	1,409,089
Receipts in advance	354,342	349,366
TOTAL CURRENT LIABILITIES	5,870,102	5,705,643
TOTAL LIABILITIES	5,870,102	5,705,643
STOCKHOLDERS' EQUITY
Common stock, $.001 par, 175,000,000 shares authorized, 48,226,958 shares issued and outstanding at September 30, 2012 and June 30, 2012, respectively	48,227	48,227
Additional paid-in capital	4,257,522	4,242,522
Accumulated other comprehensive income	1,715,675	1,813,485
Statutory reserves	10,198,223	10,198,223
Accumulated earnings	21,221,677	19,249,358
TOTAL STOCKHOLDERS' EQUITY	37,441,324	35,551,815
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 43,311,426	$ 41,257,458