« Previous | Next » | All Messages |  MHJ Message Board Home | recommend post |  Ignore Poster

MHJ News Man Sang Holdings, Inc. Announces Major Purchase

NEW YORK--(BUSINESS WIRE)--Man Sang Holdings, Inc. (the “Company”) (AMEX: MHJ) announced today that Smartest Man Holdings Limited, a wholly-owned subsidiary of Man Sang International Limited, a Hong Kong listed company, which is in turn an indirect subsidiary of the Company, has entered into an Agreement for the Sale and Purchase of Shares (the “Agreement”) with an independent third party to acquire an additional 6% of the equity interests in China Pearls and Jewellery City Holdings Limited, a Hong Kong company (“China Pearls”) on March 8, 2007, which will bring its total ownership of China Pearls to 55% upon the completion of the transaction contemplated under the Agreement. Such transaction has been approved by The Stock Exchange of Hong Kong Limited and the shareholders of Man Sang International Limited. The closing of such transaction is expected to be completed on or around April 12, 2007, subject to the fulfillment of customary closing conditions.

China Pearls currently owns and develops the China Pearls and Jewellery City project (“CP&J City”) located in Zhuji, Zhejiang, the People’s Republic of China (the “PRC”), one of the largest fresh water pearl farming and trading centers in the PRC. The existing Zhuji pearl market is one of the most well-established freshwater pearl trading platforms in the PRC. The CP&J City project was initially announced in February 2006 with the ground breaking ceremony occurring on April 18, 2006.

“CP&J City has positioned itself as a one-stop solution for both domestic and foreign jewelry companies in the PRC and is regarded as a major development project at both municipal and provincial levels, receiving support from the Municipal Government of Zhuji. Local government agencies, including the tax bureau and business registration bureau, and banks is expected to set up their offices and branches in CP&J City to provide direct and efficient services to all jewelers and business runners in the CP&J City. Other facilities, including a warehouse, an exhibition centre and residential and support services, will all be provided within CP&J City,” according to Man Sang Group’s Chairman, Mr. Ricky Cheng. “Phase 1 of CP&J City will accommodate more than 2,000 pearl processors, jewelers, manufacturers and suppliers and is expected to be completed by 2008. With its contemporary and unique design, CP&J City’s facilities will symbolize a new landmark in Zhuji.”

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 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 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 included hereto and in the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2006, and with the Company's annual report on Form 10-K for the year ended March 31, 2006. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press 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.