Sino-Global Announces Fiscal 2014 First Quarter Financial Results

      Sino-Global Announces Fiscal 2014 First Quarter Financial Results

- Company reports first profitable quarter since IPO despite year-over-year
revenue decline

- Company begins to recognize revenues from Zhiyuan logistic services
relationship

- Company continues to reduce its SG&A as it streamlines business operations
to focus on earnings and profitability

PR Newswire

NEW YORK, Nov. 13, 2013

NEW YORK, Nov. 13, 2013 /PRNewswire/ -- Sino-Global Shipping America, Ltd.
(Nasdaq: SINO), an international shipping agency and logistic services
provider, today announced its selected financial results for its fiscal 2014
first quarter ended September 30, 2013.

Financial Highlights for the First Fiscal Quarter Ended September 30, 2013

  oNet income attributable to the Company was $0.28 million, compared with
    net loss attributable to the Company of $0.19 million for the same period
    of last fiscal year.
  oTotal revenues were $3.32 million, down from $7.88 million in the first
    fiscal quarter ended September 30, 2012. Decline in revenues from the
    shipping agency business was partially offset by revenues from the newly
    developed logistic services business.
  oGeneral and administrative expenses decreased from $1.0 million to $0.90
    million; the 10% year-over-year decline was driven mainly by our overall
    cost reduction program.
  oBasic and diluted earnings (loss) per share were $0.06 and $(0.07) for the
    first quarter of fiscal 2014 and 2013, respectively. Earnings and losses
    per share are adjusted for the non-controlling interest.
  oLeverage the Zhiyuan relationship, the Company will continue to refine its
    business model and enhance its profitability.

Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "Earlier this year
management reviewed our competitive position and business strategy and
determined that we needed to take bold steps for our business to survive and
grow. We are pleased to announce our first profitable quarter since the IPO.

In order to position our Company for significant growth across multiple
revenue streams and drive profitability, we have done the following:

  oRestructured our management and organizational structure to add
    experienced and motivated executives whose compensation will be tied to
    the Company's profitability.
  oRefined our business model to focus on higher margin protective shipping
    agency services and logistic services.
  oLeverage the value of our strategic 5-year logistic service agreement (the
    "Zhiyuan Logistic Agreement") with TEWOO Chemical & Light Industry,
    Zhiyuan Trade Co., Ltd. and TianJin Zhi Yuan Investment Group Co., Ltd.
    (together "Zhiyuan") to expand our service platform. In September 2013, we
    provided our logistic services to the first shipment under the Zhiyuan
    Logistic Agreement in connection with the transportation of Zhiyuan's
    chromite ore from South Africa to China.
  oIn the quarter ended September 30, 2013, the Zhiyuan Logistic Agreement
    contributed more than $1.88 million in revenues and net profit of
    approximately $0.61 million with a gross margin of 32.43%. Before this
    quarter, we provided no logistic services at all. While we cannot predict
    the frequency of shipments, we welcome the opportunity to engage in such
    higher-margin services.

"Our new initiatives to drive logistic services revenues and enhance the
profitability of our shipping agency are already bearing significant benefits.
In couple with our efforts to curb the overhead, we are now net income
positive and have created a strong foundation for sustainable earnings and
profitability.

"We are excited that the very positive changes we have made, along with an
improving worldwide economic climate, could result in a significant
improvement in both revenues and profits. We believe we have the building
blocks necessary to create a strong balance sheet and a business platform that
will generate healthy profits and create vastly improved shareholder value."

Selected Financial Results for Fiscal 2013

Revenues

Our total revenues decreased by 57.91% from $7,882,068 for the three months
ended September 30, 2012 to $3,317,661 in the comparable three months period
in 2013. Our shipping agency business continued to be negatively impacted by
the softening of the Chinese economy and its import of iron ore as well as the
decline in the number of loading/discharging agency services we provided in
2013. The number of ships that generated revenues for us decreased from 124 to
64 for the three months ended September 30, 2012 and 2013, respectively.
Moreover, we provided fewer loading/discharging agency services in 2013 -- 14
for the three months ended September 30, 2013 as compared to 73 ships for the
same period in 2012. However, the revenue decline was partially offset by
revenues from our newly developed logistic service business. In connection
with the logistic services agreement executed with Zhiyuan in September 2013,
we recognized revenues of $1,887,000 during the quarter ended September 31,
2013.

Costs of Revenues

Our cost of revenues decreased by 66.45% from $7,118,163 for the three months
ended September 30, 2012 to $2,387,803 for the three months ended September
30, 2013. The increase in gross margin was due mainly to the delivery of the
newly development logistic services.

Operating Expenses

Our general and administrative expenses decreased by 10.05% from $996,273 for
the three months ended September 30, 2012 to $896,164 for the three months
ended September 30, 2013. This decrease was driven mainly by our cost
reduction program to streamline and enhance the effectiveness of our
operations. The overall decrease included reduction in salaries and benefits
for approximately $210,000, offset by increases in office expense and business
development expense of $32,390 and $79,956, respectively.

Our selling expenses decreased by 40.94% from $86,508 for the three months
ended September 30, 2012 to $51,088 for the three months ended September 30,
2013, mainly due to lower commission payments related to the decline in
revenues.

Operating Loss

We had an operating loss of $17,394 for the three months ended September 30,
2013, compared to operating loss of $318,876 for the comparable three months
in 2012. The reduction in operating loss was due mainly to net profit from the
newly developed logistic services and reduction in general and administrative
expenses.

Our net financial income was $23,867 for the three months ended September 30,
2013, compared to our net financial expense of $2,568 for the three months
ended September 30, 2012. The net financial income was derived largely from
the foreign exchange gains recognized in the financial statement
consolidation.

Our income tax benefits were $22,500 for the three months ended September 30,
2013, compared to income tax expense of $157,200 for the three months ended
September 30, 2012. The income tax expense in 2012 was due to the valuation
allowance for deferred tax assets.

Net Income

As a result of the foregoing, we reported a net income of $28,973 for the
three months ended September 30, 2013, compared to net loss of $442,157 for
the three months ended September 30, 2012. After deduction of non-controlling
interest, net profit attributable to Sino-Global Shipping America, Ltd. was
$275,394 for the three months ended September 30, 2013, compared to net loss
of $190,233 for the three months ended September 30, 2012. With other
comprehensive loss foreign currency translation, comprehensive income
attributable to the Company was $263,510 for the three months ended September
30, 2013, compared to comprehensive loss attributable to the Company of
$199,016 for the three months ended September 30, 2012.

Other Selected Data

We have financed our operations primarily through cash flows from operations
and a common stock transaction from April 2013. As of September 30, 2013, we
had $1,986,537 in cash and cash equivalents. Our cash and cash equivalents
primarily consist of cash on hand and cash in banks. We deposited
approximately 94.87% of our cash in banks located in New York, Canada and Hong
Kong.

About Sino-Global Shipping America, Ltd.

We are a shipping agency and logistics services provider that serves ships
coming to and departing from a number of countries, including China,
Australia, South Africa, Brazil, Hong Kong, Canada and the United States.
Founded in the United States in 2001, our company is a Virginia corporation
with its primary US operations in New York.

Sino-Global provides ship owners, operators and charters with comprehensive
yet customized shipping agency and logistic 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
quarter ended September 30, 2013, please refer to the company's filing on Form
10-Q filing or Sino-Global's web site: www.sino-global.com.

Contact


You may contact Sino-Global in the United States or China. Points of contact
are listed below:


United States
                                     People's Republic of China
Mr. Anthony S. Chan, CPA
                                     Mr. Zhikang (Michael) Huang
Acting CFO and EVP
                                     Chief Operating Officer
(718) 888-1814
                                     +86 13911399217






SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(LOSS)

(UNAUDITED)


                                                 For the three months

                                                 ended September 30,
                                                 2013           2012
Net revenues                                     $ 3,317,661    $ 7,882,068
Cost of revenues                                   (2,387,803)    (7,118,163)
Gross profit                                       929,858        763,905
General and administrative expenses                (896,164)      (996,273)
Selling expenses                                   (51,088)       (86,508)
                                                   (947,252)      (1,082,781)
Operating loss                                     (17,394)       (318,876)
Financial income (expense), net                    23,867         (2,568)
Other income, net                                  -              36,487
                                                   23,867         33,919
Net income (loss) before provision for income      6,473          (284,957)
taxes
Income tax benefit (expense)                       22,500         (157,200)
Net income (loss)                                  28,973         (442,157)
Net loss attributable to non-controlling           (246,421)      (251,924)
interest
Net income (loss) attributable to Sino-Global    $ 275,394      $ (190,233)
Shipping America, Ltd
Net income (loss)                                $ 28,973       $ (442,157)
Other comprehensive income:
Foreign currency translation adjustments           (25,637)       (5,819)
Comprehensive income (loss)                        3,336          (447,976)
Less: Comprehensive loss attributable to           (260,174)      (248,960)
non-controlling interest
Comprehensive income (loss) attributable to
Sino-Global Shipping America                     $ 263,510      $ (199,016)

Ltd.
Earnings (loss) per share
 -Basic and diluted                             $ 0.06         $ (0.07)
Weighted average number of common shares used
in computation
 -Basic and diluted                               4,703,841      2,903,841



SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES



CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


                                                  September 30,  June 30,
                                                  2013           2013
Assets
Current assets
Cash and cash equivalents                         $ 1,986,537    $ 3,048,831
Advances to suppliers                               129,780        231,772
Accounts receivable, less allowance for doubtful
accounts of $690,172 and $690,065
                                                    2,905,436      3,142,203
as of September 30, 2013 and June 30, 2012,
respectively
Other receivables, less allowance for doubtful
accounts of $235,066 and $233,950 as
                                                    517,704        142,206
of September 30, 2013 and June 30, 2012,
respectively
Other current assets                                7,807          12,488
Prepaid taxes                                       26,189         26,288
Due from related parties                            1,153,377      541,377
Total current assets                                6,726,830      7,145,165
Property and equipment, net                         246,110        267,662
Other long-term assets                              25,800         18,278
Deferred tax assets                                 127,600        105,100
Total Assets                                      $ 7,126,340    $ 7,536,205
Liabilities and Equity
Current liabilities
Advances from customers                           $ 303,142      $ 710,172
Accounts payable                                    3,185,881      3,219,240
Accrued expenses                                    107,000        51,352
Other current liabilities                           395,681        424,141
Total Current Liabilities                           3,991,704      4,404,905
Total Liabilities                                   3,991,704      4,404,905
Commitments and Contingency
Equity
Preferred stock, 1,000,000 shares authorized, no    -              -
par value, none issued.
Common stock, 10,000,000 shares authorized, no
par value; 4,829,032 shares issued

as of September 30, 2013 and June 30, 2013;         10,750,157     10,750,157
4,703,841 outstanding as of September

30, 2013 and June 30, 2013
Additional paid-in capital                          1,144,842      1,144,842
Treasury stock, at cost - 125,191 shares            (372,527)      (372,527)
Accumulated deficit                                 (4,581,219)    (4,856,613)
Accumulated other comprehensive income              42,907         54,791
Unearned Stock-based Compensation                   (15,520)       (15,520)
Total Sino-Global Shipping America Ltd.             6,968,640      6,705,130
Stockholders' equity
Non-Controlling interest                            (3,834,004)    (3,573,830)
Total equity                                        3,134,636      3,131,300
Total Liabilities and Equity                      $ 7,126,340    $ 7,536,205

SOURCE Sino-Global Shipping America, Ltd.

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