BEIJING, February 15, 2012 /PRNewswire-Asia/ -- 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 second fiscal quarter ended December 31, 2011.
Financial Highlights for the Three and Six Month Periods Ended December 31, 2011
Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "Facing a continued reduction in the number of ships discharging iron ore from Chinese ports, we conducted intensive marketing activities to increase our services to new customers. As a result, the number of ships we served increased from 216 to 222 and 113 to 116 for the six and three months ended December 31, 2010 and 2011, respectively. However, the increased number of ships served primarily used our services that generate lower agency fees per ship. Although the number of ships we served increased, our revenues decreased. While this has been a challenging quarter for our company, we have increased marketing and promotional spending to help Sino-Global seek out additional opportunities to increase revenue in both China and globally."
Mr. Cao, added, "In an uncertain economic environment, we believe that growth is a key component for us to survive and develop. As a result, we will continue our combined effort to control our budget and promote business growth. As such, top line growth will remain our first priority, and we will focus on increasing revenues from our agency services to vessels coming to Chinese ports and expanding business activities at loading ports in Australia, Canada, South Africa and Brazil."
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, Brazil 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 second quarter ended December 31, 2011, please refer to the company's filing on Form 10-Q filing or Sino-Global's web site: www.sino-global.com.
CONTACTS: | ||
Ms. Apple Liang | 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 | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||
(UNAUDITED) | |||||||||
For the six months ended | For the three months ended | ||||||||
2011 | 2010 | 2011 | 2010 | ||||||
US$ | US$ | US$ | US$ | ||||||
Revenues | 16,615,305 | 17,265,570 | 8,022,598 | 9,066,226 | |||||
Cost of revenues | (15,206,693) | (15,570,501) | (7,452,475) | (8,175,823) | |||||
Gross profit | 1,408,612 | 1,695,069 | 570,123 | 890,403 | |||||
General and administrative expense | (2,826,615) | (2,135,644) | (1,444,702) | (1,108,445) | |||||
Selling expense | (212,806) | (168,390) | (108,224) | (114,045) | |||||
Costs and Expenses | (3,039,421) | (2,304,034) | (1,552,926) | (1,222,490) | |||||
Operating Loss | (1,630,809) | (608,965) | (982,803) | (332,087) | |||||
Financial income, net | 100,857 | 119,899 | 144,860 | 33,758 | |||||
Non-operating revenue | 16,366 | 9,916 | 7,094 | 6,633 | |||||
Non-operating costs | - | (215) | - | (215) | |||||
Other income | 24,139 | 75,358 | 3,379 | 46,332 | |||||
Loss from equity investment | (188,999) | (31,930) | (915) | (17,019) | |||||
(47,637) | 173,028 | 154,418 | 69,489 | ||||||
Net loss before provision for income taxes | (1,678,446) | (435,937) | (828,385) | (262,598) | |||||
Income taxes benefit (expense) | 24,121 | (29,188) | 1,000 | (1,000) | |||||
Net loss | (1,654,325) | (465,125) | (827,385) | (263,598) | |||||
Net loss attributed to non-controlling interest | (593,537) | (208,697) | (432,384) | (150,451) | |||||
Net loss attributable to Sino-Global Shipping America Ltd. | (1,060,788) | (256,428) | (395,001) | (113,147) | |||||
Net loss | (1,654,325) | (465,125) | (827,385) | (263,598) | |||||
Other comprehensive income | |||||||||
Foreign currency translation adjustments | (3,989) | (16,200) | (37,638) | (2,405) | |||||
Comprehensive loss | (1,658,314) | (481,325) | (865,023) | (266,003) | |||||
Comprehensive loss attributable to non-controlling interest | (609,332) | (209,053) | (441,398) | (151,651) | |||||
Comprehensive loss attributable to Sino-Global Shipping America Ltd. | (1,048,982) | (272,272) | (423,625) | (114,352) | |||||
Earnings (loss) per share | |||||||||
-Basic and diluted | (0.37) | (0.09) | (0.14) | (0.04) | |||||
Weighted average number of common shares used in computation | |||||||||
-Basic and diluted | 2,903,841 | 2,903,841 | 2,903,841 | 2,903,841 | |||||
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(UNAUDITED) | |||||
December 31, | June 30, | ||||
2011 | 2011 | ||||
US$ | US$ | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 5,408,974 | 4,878,828 | |||
Advances to suppliers | 675,856 | 338,307 | |||
Accounts receivable, less allowance for doubtful accounts of $290,145 and $194,955 as of December 31, 2011 and June 30, 2011 | 2,464,301 | 1,847,990 | |||
Other receivables, less allowance for doubtful accounts of $80,000 as of December 31, 2011 and June 30, 2011 | 373,744 | 417,853 | |||
Prepaid expenses and other current assets | 112,191 | 86,453 | |||
Prepaid taxes | 30,000 | 286,492 | |||
Employee loans receivable | 8,305 | 10,662 | |||
Income tax receivable | 1,885 | 1,885 | |||
Deferred tax assets | 165,000 | 117,000 | |||
Total Current Assets | 9,240,256 | 7,985,470 | |||
Property and equipment, net | 521,790 | 587,024 | |||
Security deposits | 25,330 | 31,026 | |||
Employee loans receivable less current portion | 8,727 | 11,896 | |||
Deferred tax assets | 255,000 | 252,000 | |||
Equity investment | - | 186,514 | |||
Total Assets | 10,051,103 | 9,053,930 | |||
Liabilities and Equity | |||||
Current liabilities | |||||
Advances from customers | 294,393 | 710,891 | |||
Accounts payable | 5,939,269 | 2,913,553 | |||
Accrued expenses | 45,957 | 81,146 | |||
Income tax payable | 12,955 | - | |||
Other current liabilities | 272,697 | 173,249 | |||
Total Current Liabilities | 6,565,271 | 3,878,839 | |||
Total Liabilities | 6,565,271 | 3,878,839 | |||
Commitments and Contingencies | |||||
Equity | |||||
Preferred stock, 1,000,000 shares authorized, no par value; none issued | - | - | |||
Common stock, 10,000,000 shares authorized, no par value; 3,029,032 shares issued and 2,903,841 outstanding | 7,709,745 | 7,709,745 | |||
Additional paid-in capital | 1,191,796 | 1,191,796 | |||
Treasury stock, at cost | (372,527) | (372,527) | |||
Accumulated deficit | (2,349,570) | (1,288,783) | |||
Accumulated other comprehensive loss | (13,012) | (9,023) | |||
Unearned Compensation | (397,558) | (397,558) | |||
Total Sino-Global Shipping America Ltd. Equity | 5,768,874 | 6,833,650 | |||
Non-Controlling Interest | (2,283,042) | (1,658,559) | |||
Total Equity | 3,485,832 | 5,175,091 | |||
Total Liabilities and Equity | 10,051,103 | 9,053,930 | |||