ROSLYN, N.Y., June 8, 2020 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "we"), a non-asset based global shipping and freight logistic integrated solution provider, today announced the signing of General Agency Service Agreement (the "Agreement") to provide comprehensive shipping agency services with Mandarine Bulk Ltd, a ship owner and operator company registered in Marshall Islands. The Agreement began on June 1, 2020 and is valid for two years, with initial revenues from the agreement beginning in the Company's current fourth quarter. As previously disclosed, the Company has entered into a purchase agreement with Mr. Kelin Wu, the controller of Mandarine Bulk Ltd, under which the Company will purchase 75% of the equity of Mandarine Ocean Ltd from Mr. Wu.
Pursuance to the Agreement, Mandarine Bulk has appointed Sino-Global as the Sole General Shipping Agency for all its owned and operated ships with services including ship management services, shipping agency services, ship brokerage services and other services required for ship operation. Sino-Global anticipates annualized revenue to the Company of approximately $12.0 million. In the last six weeks, the Company has signed separate shipping services agreements that it expects will add $19.0 million in revenue on an annualized basis.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "Throughout the past year, we have worked diligently to continue building a solid customer base that can lead to favorable top-line growth as we transitioned into providing shipping agency services globally. We are very pleased with the progress our Company has made, and this agreement is evidence of our ability to scale our agency services despite challenging operating conditions brought about by U.S. / China trade relations and then the COVID-19 pandemic. In 2020, we strengthened our management team and have utilized our relationships in the U.S. and China to secure agency contracts that we expect will add approximately $19.0 million in revenue from what we expect to be stable, long-term customers. Mandarine Bulk is predominantly focused on operating its own and chartered ships for global transportation of drybulk commodities among major ports. We expect to utilize this agency relationship to continue building out our platform of global logistics solutions."
About Sino-Global Shipping America, Ltd.
Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged in shipping, chartering, logistics and related services. Headquartered in New York, Sino-Global has offices in Los Angeles, Mainland China, Australia, Canada and Hong Kong. The Company's current service offerings consist of shipping agency services, shipping and chartering services, inland transportation management services and ship management services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. The Company routinely posts important information on its website.
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.
Contact Information
The Equity Group Inc.
Adam Prior, Senior Vice President
(212)-836-9600 / aprior@equityny.com
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