Sino-Global Announces Fiscal 2013 Financial Results

             Sino-Global Announces Fiscal 2013 Financial Results

- Shift in business to more protective services, creates improvement in gross
margin levels -

- Turnaround in business well underway as company diversifying its customer
base -

- Strong balance sheet with $3.0 million in cash and working capital of $2.7
million -

PR Newswire

BEIJING, Sept. 27, 2013

BEIJING, Sept. 27, 2013 /PRNewswire/ -- Sino-Global Shipping America, Ltd.
(Nasdaq: SINO), an international provider of shipping agency services, today
announced its selected financial results for fiscal year ended June 30, 2013.

Highlights for the Fiscal Year Ended June 30, 2013

  oRevenues decreased by 48.85% to US$17.3 million, from US$33.9 million in
    the fiscal year ended June 30, 2012.
  oGross margin increased to 11.13% in the current fiscal year compared to
    7.96% in the prior fiscal year.
  oTotal general and administrative expenses were reduced by $1.36 million
    during the year, representing a decrease of 25.93% compared to the last
    fiscal year.
  oNet loss was US$2.58 million compared to net loss of US$2.81 million in
    fiscal 2012.
  oBasic and diluted losses per share were US$0.38 and US$0.61 for fiscal
    2013 and fiscal 2012, respectively. Earnings and losses per share are
    adjusted for the non-controlling interest.

While China's economic slowdown reduced the volume of iron ore imported into
China and, consequently, hurt the company's results in fiscal 2013, the
company was able to streamline operations to improve gross margin, reduce
overhead and reduce net operating losses. Mr. Michael Huang, Chief Operating
Officer, noted, "As a result of the challenges we faced in 2013, we devoted
significant efforts to controlling our costs. If we can grow our revenues with
comparatively lower overhead and better gross margins, we expect favorable
results in 2014 and beyond."

The number of ships served decreased to 438 in fiscal 2013 from 477 in fiscal
2012, and the number of ships for which we provide higher per-ship revenue
loading and discharging services decreased by 55.65%. As a result, revenues
decreased significantly; however, the number of ships for which we provided
protective services increased by 142.98%. These protective services, while
lower revenue per ship, feature a higher gross profit margin for our company.

In connection with the shift of revenue mix, Sino-Global undertook an
intensive cost cutting program, which decreased expenses by $1.4 million
during fiscal 2013. Mr. Cao Lei, Sino-Global's Chief Executive Officer,
stated, "As challenging as 2013 was for our company, we have made significant
changes towards the end of the year that are positive catalysts going into the
new fiscal year. As a result of these efforts, we are a leaner company than
this time last year, and we are able to focus on higher margin services, such
as our protective services and our efforts in the chartering and logistics
business. We believe that these efforts will pay off long term for investors,
as we drive revenues with lower expenses."

Mr. Cao continued, "Looking forward, we want to increase our market share in
the Chinese shipping agency market and to expand our business to related
service areas through diversification. We believe we can meet these goals by
continuing to focus on the high quality of our personnel, the positive
relationships we enjoy with local ports, businesses and agencies and the
breadth of services we offer to clients. In addition, we expect further cost
cutting to occur as we reduce overhead expenses and streamline operations.
With this in hand, I am looking forward to sharing improved economics within
our business."

Selected Financial Results for Fiscal 2013

Revenues

Total revenues decreased by 48.85% from $33,881,248 for the year ended June
30, 2012 to $17,331,759 in the comparable year in 2013. The number of ships
that generated revenues for the company decreased from 477 for the year of
fiscal 2012 to 438 for the comparable period of fiscal 2013. More importantly,
the company provided protective services for more ships, which generated
significantly lower revenues per ship. For the year ended June 30, 2013, the
company provided protective services to 277 ships, compared to 114 ships for
the year of fiscal 2012. In contrast, the company provided loading/discharging
service to 161 and 363 ships for the years ended June 30, 2013 and 2012,
respectively.

Cost of Revenues

Costs of revenues as a percentage of the total revenues decreased from 92.04%
for the year ended June 30, 2012 down to 88.87% for the year ended June 30,
2013. Consequently, the company's gross margin increased from 7.96% for the
year ended June 30, 2012 up to 11.13% for the year ended on June 30, 2013. The
gross margin increased because the company provided protective services to
more ships, which had generated higher gross margin compared to
loading/discharging services.

Operating Expenses

General and administrative expenses decreased by 25.93% from $5,236,167 for
the year ended June 30, 2012 to $3,878,569 for the year ended June 30, 2013.
This mainly due to (1) decreased office rent of $140,198, (2) a decrease of
$536,028 in business promotion, (3) decreased public company listing expenses
of $224,400, (4) decreased salaries and benefits for the company's staff of
$494,630, (5) decreased travelling expense of $89,370. The decrease of general
and administrative expenses was offset by an increase of $351,493 in the bad
debts provision. The company will continue its budget control efforts to
reduce the general and administrative expenses as a percentage of total
revenues.

Selling expenses decreased by 34.04% from $385,064 for the year ended June 30,
2012 to $253,987 for the year ended June 30, 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 $2,203,540 for the year ended June 30,
2013, compared to an operating loss of $2,924,314 for the comparable year
ended June 30, 2012. The operating loss for the year of fiscal 2013 was
decreased primarily due to the reduced costs of revenues and general and
administrative expenses.

The company's net financial expense was $15,520 for the year ended June 30,
2013, compared to our net financial income of $46,169 for the year ended June
30, 2012. The net financial expense 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 consolidated statements of operations.

The company's income tax expense was $410,089 for the year ended June 30,
2013, compared to income tax benefits of $120,232 for the year ended June 30,
2012. The income tax expense of $413,900 was deferred tax expense resulted
from an increase of the valuation allowance of deferred tax assets.

Net Loss

The company reported a net loss of $2,576,896 for the year ended June 30,
2013, compared to net loss of $2,812,969 for the year ended June 30, 2012.
After deduction of non-controlling interest in loss, net loss attributable to
Sino-Global Shipping America, Ltd. was $1,799,755 for the year ended June 30,
2013, compared to net loss of $1,768,075 for the year ended June 30, 2012.
With other comprehensive loss foreign currency translation, comprehensive loss
was $1,707,657 for the year ended June 30, 2013, compared to comprehensive
loss of $1,703,123 for the year ended June 30, 2012.

Other Selected Data

The company has financed its operations primarily through cash flows from
operations. As of June 30, 2013, the company had $3,048,831 in cash and cash
equivalents. The company's cash and cash equivalents primarily consist of cash
on hand and cash in banks. The company deposited approximately 94.65% of its
cash in banks in the USA, Australia, Canada and Hong Kong.

About Sino-Global Shipping America, Ltd.

Registered in the United States in 2001, Sino-Global provides high-quality
shipping agency services internationally, with a particular strength in
serving international shipments to and from Chinese ports. 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 contractual relationships with local shipping agencies in
Australia, India, Hong Kong and South Africa, Sino-Global provides complete
shipping agent services to companies involved in trades ports in the USA and
these countries.

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 year
ended June 30, 2013, please refer to the company's filing on Form 10-K filing
or Sino-Global's web site: www.sino-global.com.

CONTACTS:
Michael Huang, Chief Operating 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



SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                                  For the years ended June 30,
                                                  2013            2012
                                                  US$             US$
Net Revenues                                      17,331,759      33,881,248
Cost of revenues                                  (15,402,743)    (31,184,331)
Gross profit                                      1,929,016       2,696,917
General and administrative expenses               (3,878,569)     (5,236,167)
Selling expenses                                  (253,987)       (385,064)
                                                  (4,132,556)     (5,621,231)
Operating Loss                                    (2,203,540)     (2,924,314)
Financial (expense) income, net                   (15,520)        46,169
Other income, net                                 52,253          134,970
Loss from equity investment                       --              (190,026)
                                                  36,733          (8,887)
Net loss before provision for income taxes        (2,166,807)     (2,933,201)
Income tax (expense) benefit                      (410,089)       120,232
Net loss                                          (2,576,896)     (2,812,969)
Net loss attributed to non-controlling interest   (777,141)       (1,044,894)
Net loss attributable to Sino-Global Shipping   $ (1,799,755)   $ (1,768,075)
America, Ltd.
Net loss                                        $ (2,576,896)   $ (2,812,969)
Other comprehensive income:
Foreign currency translation adjustments          38,082          25,732
Comprehensive loss                              $ (2,538,814)   $ (2,787,237)
Less: Comprehensive loss attributable to          (831,157)       (1,084,114)
non-controlling interest
Comprehensive loss attributable to Sino-Global
Shipping                                          (1,707,657)     (1,703,123)

America, Ltd.
Loss per share
 -Basic and diluted                       (0.38)          (0.61)
Weighted average number of common shares used
in computation
 -Basic and diluted                       4,703,841       2,903,841



SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
BALANCE SHEET
                                                  For the years ended June 30,
                                                  2013            2012
                                                  US$             US$
Assets
Current assets
Cash and cash equivalents                       $ 3,048,831    $  4,433,333
Advances to suppliers                             231,772         360,277
Accounts receivable, less allowance for
doubtful accounts of                              3,142,203       3,788,966

$690,065 and $357,042
Other receivables, less allowance for doubtful
accounts of                                       142,206         377,835

$233,950 and $80,000
Other current assets                              12,488          82,257
Prepaid taxes                                     26,288          27,356
Deferred tax assets                               --              175,000
Due from related party                            541,377         541,377
Total current assets                              7,145,165       9,786,401
Property and equipment, net                       267,662         415,672
Other long-term assets                            18,278          30,457
Deferred tax assets                               105,100         344,000
Total Assets                                      7,536,205       10,576,530
Liabilities and Equity
Current liabilities
Advances from customers                           710,172         303,437
Accounts payable                                  3,219,240       7,467,145
Accrued expenses                                  51,352          92,217
Other current liabilities                         424,141         169,628
Total Current Liabilities                         4,404,905       8,032,427
Total Liabilities                                 4,404,905       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;

4,829,032 and 3,029,032 shares issued, as of
June 30, 2013                                     10,750,157      7,709,745

and 2012; 4,703,841 and 2,903,841 outstanding
as of June 30,

2013 and 2012
Additional paid-in capital                        1,144,842       1,191,796
Treasury stock, at cost- 125,191 shares          (372,527)       (372,527)
Accumulated deficit                               (4,856,613)     (3,056,858)
Accumulated other comprehensive income            54,791          16,709
Unearned Stock-based Compensation                 (15,520)        (202,089)
Total Sino-Global Shipping America Ltd.
Stockholders'                                     6,705,130       5,286,776

equity
Non-Controlling interest                          (3,573,830)     (2,742,673)
Total equity                                      3,131,300       2,544,103
Total Liabilities and Equity                    $ 7,536,205    $  10,576,530

SOURCE Sino-Global Shipping America, Ltd.

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