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Sino-Global Announces Fiscal Third Quarter 2013 Financial Results

      Sino-Global Announces Fiscal Third Quarter 2013 Financial Results

- Revenues experience major decline for the third quarter ended March 31, 2013
due to reduced number of ships served for major customer -

- Company reduces general and administrative expenses by 53% for the third
quarter ended March 31, 2013, limiting losses and cash burn -

- After third quarter's end, Company strengthened balance sheet by issuing 1.8
million shares for approximately $3.1 million -

PR Newswire

BEIJING, May 14, 2013

BEIJING, May 14, 2013  /PRNewswire/ -- Sino-Global Shipping America, Ltd.
(Nasdaq: SINO), a leading, non-state-owned provider of shipping agency
services operating primarily in China, today announced its selected financial
results for its third fiscal quarter ended March 31, 2013.

Financial Highlights for the Third Fiscal Quarter Ended March 31, 2013

  oTotal revenues decreased 74.32% to US$2.34 million, from US$9.11 million
    in the third fiscal quarter ended March 31, 2013.
  oThe devaluation of the US dollar against the Chinese Renminbi ("RMB")
    resulted in a very slight impact on gross margin, which expanded in the
    quarter to 14.76% up from 5.22% in the third fiscal quarter of 2012, due
    to providing more protective services, which carry higher margins.
  oStrong internal budget controls reduced general and administrative
    expenses in absolute amount by 53%.
  oNet loss improved to US$211,040 from net loss of US$770,155 in the third
    fiscal quarter of 2012.
  oBasic and diluted losses per share were US$0.06 and US$0.16 for the third
    fiscal quarters of 2013 and 2012, respectively. Earnings and losses per
    share are adjusted for the non-controlling interest.

Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "The difficult
economic environment continued into the third quarter, stemming from the
reduced volume of iron ore imports. As a result, we saw a reduction in the
number of ships we service. In addition, one of our major customers, Beijing
Shourong Forwarding Company ("Shourong"), has changed its service arrangement
with us, to protective agency services versus the lump sum fixed rate
discharging agency services. As a result of this change, our revenue base
declined significantly. While this is extremely disappointing, we have managed
to streamline our business in light of this change by cutting expenses, which
limited our losses in the quarter. On a positive note, our gross margin
improved to nearly 15% in the quarter as we provided protective agency
services to more ships, which carries a higher gross margin compared to the
loading and discharging services."

Mr. Cao added, "Subsequent to the third quarter's end, we managed to improve
the Company's balance sheet as shareholders approved the issuance of 1.8
million shares for $3.078 million, or $1.71 a share, to Mr. Zhang Zhong, who
owns 90% of Tianjin Zhiyuan Investment Group. We are pleased to have Mr. Zhong
as a shareholder and hope this transaction will provide us not only with the
necessary capital to manage the business going forward, but also provide Sino
Global with new opportunities in a wider service range including shipping
agency, ship management, ship operating and forwarding."

Mr. Cao concluded, "Looking to the future, we will continue to emphasize
expanding our international marketing effort to position us for strong growth
as economies around the world improve. We also believe that our business
relationship with Shourong will continue this year and we are working
diligently in obtaining a favorable service arrangement with them. Our
position has been strengthened by the actions that we have taken and
Sino-Global will continue to seek additional international business from
loading ports in Australia, Canada, South Africa and Brazil as well as other
countries with which China has major trading activities."

Select Financial Highlights for the Three and Nine Months Periods Ended March
31, 2013

Revenues

Total revenues decreased by 74.32% from $9,110,006 for the three months ended
March 31, 2012 to $2,339,074 in the comparable three months in 2013. The
number of ships that generated revenues decreased from 129 for the three
months ended March 31, 2012 to 99 for the comparable quarter of fiscal 2013.
Accordingly, revenues decreased. In addition, the Company provided protective
services for more ships which generated significantly lower revenues per ship.
For the three months ended March 31, 2013, the Company provided protective
services to 81 ships, compared to 35 ships for the same quarter of 2012. The
Company provided loading/discharging service to 18 and 94 ships for the three
months ended March 31, 2013 and 2012, respectively. Total revenues decreased
by 35.27% from $25,725,311 for the nine months ended March 31, 2012 to
$16,650,903 in the comparable nine months in 2013. The number of ships that
generated revenues for the Company decreased from 351 for the nine-month
period of fiscal 2012 to 322 for the comparable period of fiscal 2013.
Moreover, the Company provided protective services for more ships which
generated significantly lower revenues per ship. For the nine months ended
March 31, 2013, the Company provided protective services to 172 ships,
compared to 68 ships for the nine-month period of 2012. In contrast, the
Company provided loading/discharging service to 150 and 283 ships for the nine
months ended March 31, 2013 and 2012, respectively.

General and Administrative Expenses

General and administrative expenses decreased by 53.08% from $1,149,522 for
the three months ended March 31, 2012 to $539,348 for the three months ended
March 31, 2013. This decrease was mainly due to (1) decreased salaries and
benefits for our staff of $194,489, (2) a decrease of $184,388 in business
promotion, (3) decreased listing expense of $78,443. The Company will continue
with its budget control efforts to reduce the general and administrative
expenses as a percentage of total revenues. General and administrative
expenses decreased by 36.02% from $3,976,137 for the nine months ended March
31, 2012 to $2,543,959 for the nine months ended March 31, 2013. This mainly
due to (1) decreased bad debts provision of $88,621, (2) a decrease of
$552,750 in business promotion, (3) decreased listing expense of $186,970, (4)
decreased salaries and benefits for our staff of $235,145, (5) decreased
travelling expense of $89,184. The Company will continue with its budget
control efforts to reduce the general and administrative expenses as a
percentage of total revenues.

Selling Expenses

Selling expenses decreased by 64.56% from $83,547 for the three months ended
March 31, 2012 to $29,606 for the three months ended March 31, 2013, mainly
due to lower commission payments related to the sales decrease. Selling
expenses primarily consist of commissions and traveling expenses for operating
staff to the ports at which the Company provide services. In line with the
decrease in revenues, selling expenses decreased in absolute amount and
increased as a percentage of our total net revenues for the nine and three
months ended March 31, 2013. Selling expenses decreased by 28.12% from
$296,353 for the nine months ended March 31, 2012 to $213,032 for the period
ended March 31, 2013. Most selling expenses are commissions paid to business
partners who refer shipping agency business to the Company

Operating Loss

The Company had an operating loss of $223,804 for the three months ended March
31, 2013, compared to operating loss of $757,251 for the comparable three
months in 2012. The operating loss for the third quarter of fiscal 2013 was
primarily due to the decrease in costs of revenues and general and
administrative expenses. The Company reported an operating loss of $1,224,238
for the nine months ended March 31, 2013, compared to an operating loss of
$2,388,060 for the comparable nine months in 2012. The operating loss for the
nine-month period of fiscal 2013 decreased primarily due to the reduced costs
of revenues and general and administrative expenses.

Financial Income, Net

The net financial expense was $7,060 for the three months ended March 31,
2013, compared to the net financial income of $42,152 for the three months
ended March 31, 2012. The net financial income was derived largely from the
foreign exchange gains recognized in the financial statement consolidation.
Foreign exchange losses resulting from the settlement of foreign exchange
transactions are recognized in the condensed consolidated statements of
operations. The net financial income was $22,674 for the nine months ended
March 31, 2013, compared to our net financial income of $58,705 for the nine
months ended March 31, 2012. The net financial income was derived largely from
the foreign exchange income recognized in the financial statement
consolidation. Foreign exchange losses resulting from the settlement of
foreign exchange transactions are recognized in the condensed consolidated
statements of operations.

Taxation

Income tax benefits were $14,600 for the three months ended March 31, 2013,
compared to income tax benefits of $7,111 for the three months ended March 31,
2012. As the Company had a tax benefit of $24,100 and deferred tax expense of
$9,500, the income tax benefits of the three months ended March 31, 2013 was
$14,600. Income tax expense was $64,500 for the nine months ended March 31,
2013, compared to income tax benefits of $31,232 for the nine months ended
March 31, 2012. The income tax expense of $64,500 was deferred tax expense
resulted from an increase of valuation allowance of deferred tax assets.

Net Loss

As a result of the foregoing, the Company had a net loss of $211,040 for the
three months ended March 31, 2013, compared to net loss of $770,155 for the
three months ended March 31, 2012. After deduction of non-controlling interest
in loss, net loss attributable to Sino-Global Shipping America, Ltd. was
$166,510 for the three months ended March 31, 2013, compared to net loss of
$477,388 for the three months ended March 31, 2012. With other comprehensive
loss foreign currency translation, comprehensive loss was $151,175 for the
three months ended March 31, 2013, compared to comprehensive loss of $461,984
for the three months ended March 31, 2012. The Company also had a net loss of
$1,219,051 for the nine months ended March 31, 2013, compared to net loss of
$2,424,480 for the nine months ended March 31, 2012. After deduction of
non-controlling interest in loss, net loss attributable to Sino-Global
Shipping America, Ltd. was $648,329 for the nine months ended March 31, 2013,
compared to net loss of $1,538,176 for the nine months ended March 31, 2012.
With other comprehensive loss foreign currency translation, comprehensive loss
was $635,442 for the nine months ended March 31, 2013, compared to
comprehensive loss of $1,510,966 for the nine months ended March 31, 2012.

Basic and diluted losses per share

Basic and diluted losses per share were US$0.06 and US$0.16 for the third
fiscal quarter of 2013 and 2012, respectively. Basic and diluted losses per
share for the nine months ended March 31, 2013 and 2012 were US$0.22 and
US$0.53, respectively. Losses per share are adjusted for the non-controlling
interest.

Other selected Data

The Company has financed its operations primarily through cash flows from
operations. As of March 31, 2013, we had $331,020 in cash and cash
equivalents. Cash and cash equivalents primarily consist of cash on hand and
cash in banks. Sino Global deposited approximately 80.66% of its cash in banks
in the USA, Australia and Hong Kong.

About Sino-Global Shipping America, Ltd.

Registered in the United States in 2001 and operating primarily in mainland
China, Sino-Global is a leading, non-state-owned provider of high-quality
shipping agency services. With local branches in most of China's main ports
and contractual arrangements in all those where it does not have branch
offices, Sino-Global is able to offer efficient, high-quality shipping agency
services to shipping companies entering Chinese ports. With a subsidiary in
Perth, Australia, where it has a contractual relationship with a local
shipping agency, Sino-Global provides complete shipping agent services to
companies involved in trades between Chinese and Australian ports. Sino-Global
also cooperates with companies in Hong Kong, China, India, and South Africa to
offer comprehensive shipping agent services to vessels going to and from some
of the world's busiest ports.

Sino-Global provides ship owners, operators and charters with comprehensive
yet customized shipping agency services including intelligence, planning,
real-time analysis and on-the-ground implementation and logistics support.
Sino-Global has achieved both ISO9001 and UKAS certifications.

Forward Looking Statements

No statement made in this press release should be interpreted as an offer to
purchase any security. Such an offer can only be made in accordance with the
Securities Act of 1933, as amended, and applicable state securities laws. Any
statements contained in this release that relate to future plans, events or
performance are forward-looking statements that involve risks and
uncertainties as identified in Sino-Global's filings with the Securities and
Exchange Commission. Actual results, events or performance may differ
materially. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as the date hereof. Sino-Global
undertakes no obligation to publicly release the results of any revisions to
these forward-looking statements that may be made to reflect the events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

For More Information

For a more detailed review of Sino-Global's financial results for fiscal third
quarter ended March 31, 2013, please refer to the company's filing on Form
10-Q filing or Sino-Global's web site:
www.sino-global.com.

CONTACTS:
Mr. Mingwei Zhang, Chief Financial Officer Stephen D. Axelrod, CFA
Sino-Global, Beijing                       Wolfe Axelrod Weinberger Assoc. LLC
+86-10-6439-1888                           Tel. (212) 370-4500 Fax (212)
                                           370-4505



- Tables to Follow -



SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
                      For the nine months           For the three months
                      ended March 31,               ended March 31,
                      2013           2012           2013          2012
Net Revenues        $ 16,650,903   $ 25,725,311   $ 2,339,074   $ 9,110,006
Cost of revenues      (15,118,150)   (23,840,881)   (1,993,924)   (8,634,188)
Gross profit          1,532,753      1,884,430      345,150       475,818
General and
administrative        (2,543,959)    (3,976,137)    (539,348)     (1,149,522)
expenses
Selling expenses      (213,032)      (296,353)      (29,606)      (83,547)
                      (2,756,991)    (4,272,490)    (568,954)     (1,233,069)
Operating Loss        (1,224,238)    (2,388,060)    (223,804)     (757,251)
Financial income,     22,674         58,705         (7,060)       (42,152)
net
Other income, net     47,013         63,415         5,224         22,910
Loss from equity      -              (189,772)      -             (773)
investment
                      69,687         (67,652)       (1,836)       (20,015)
Net loss before
provision for         (1,154,551)    (2,455,712)    (225,640)     (777,266)
income taxes
Income tax            (64,500)       31,232         14,600        7,111
(expense) benefit
Net loss              (1,219,051)    (2,424,480)    (211,040)     (770,155)
Net loss attributed
to non-controlling    (570,722)      (886,304)      (44,530)      (292,767)
interest
Net loss
attributable to
Sino-Global           (648,329)      (1,538,176)    (166,510)     (477,388)
Shipping America,
Ltd
Net loss            $ (1,219,051)  $ (2,424,480)  $ (211,040)   $ (770,155)
Other comprehensive
income:
Foreign currency
translation           (9,596)        9,847          7,327         13,836
adjustments
Comprehensive loss    (1,228,647)    (2,414,633)    (203,713)     (756,319)
Less: Comprehensive
loss attributable     (593,205)      (903,667)      (52,538)      (294,335)
to non-controlling
interest
Comprehensive loss
attributable to
Sino-Global         $ (635,442)    $ (1,510,966)  $ (151,175)   $ (461,984)
Shipping America
Ltd.
Loss per share
 -Basic and $ (0.22)       $ (0.53)       $ (0.06)      $ (0.16)
diluted
Weighted average
number of common
shares used in
computation
 -Basic and   2,903,841      2,903,841      2,903,841     2,903,841
diluted



SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                                                     March 31,     June 30,
                                                     2013          2012
Assets
Current assets
Cash and cash equivalents                          $ 331,020     $ 4,433,333
Advances to suppliers                                805,503       901,654
Accounts receivable, net                             5,614,697     3,788,966
Other receivables, net                               293,010       377,835
Other current assets                                 29,307        82,257
Prepaid taxes                                        26,189        27,356
Deferred tax assets                                  87,500        175,000
Total current assets                                 7,187,226     9,786,401
Property and equipment, net                          306,167       415,672
Other long-term assets                               18,014        30,457
Deferred tax assets - long term                      367,000       344,000
Total Assets                                         7,878,407     10,576,530
Liabilities and Equity
Current liabilities
Advances from customers                              322,285       303,437
Accounts payable                                     5,930,677     7,467,145
Accrued expenses                                     82,965        92,217
Other current liabilities                            249,506       169,628
Total Current Liabilities                            6,585,433     8,032,427
Total Liabilities                                  $ 6,585,433   $ 8,032,427
Commitments and Contingency
Equity
Preferred stock, 1,000,000 shares authorized, no     -             -
par value
Common stock, 10,000,000 shares authorized, no par
value; 3,029,032 shares issued, 2,903,841          $ 7,709,745   $ 7,709,745
outstanding
Additional paid-in capital                           1,191,796     1,191,796
Treasury stock, at cost - 125,191 shares             (372,527)     (372,527)
Accumulated deficit                                  (3,705,186)   (3,056,858)
Accumulated other comprehensive loss                 7,113         16,709
Unearned Stock-based Compensation                    (202,089)     (202,089)
Total Sino-Global Shipping America Ltd.              4,628,852     5,286,776
Stockholders' equity
Non-Controlling interest                             (3,335,878)   (2,742,673)
Total equity                                         1,292,974     2,544,103
Total Liabilities and Equity                      $ 7,878,407   $ 10,576,530



SOURCE Sino-Global Shipping America, Ltd.

Website: http://www.sino-global.com
 
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