Sino-Global Announces Fiscal First Quarter 2012 Financial Results
- Revenues increased 4.8% for the first quarter ended September 30, 2011 compared to prior fiscal year -
- Strong balance sheet with $4.5 million in cash and working capital of $3.5 million -
- Chinese government strict financing policies resulted in decreased iron ore imports into China -
BEIJING, Nov. 14, 2011 /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 first fiscal quarter ended September 30, 2011.
Financial Highlights for the First Fiscal Quarter Ended September 30, 2011
- Total revenues increased 4.8% to US$8.59 million, from US$8.2 million in the first fiscal quarter ended September 30, 2010.
- The devaluation of the US dollar against the Chinese Renminbi ("RMB") resulted in a minor change in gross margin from 9.81% in the first fiscal quarter of 2011 to 9.76% in the current fiscal quarter.
- General and administrative expenses as a percentage of total revenues increased to 16.1% from 12.5% as a result of costs in implementing international expansion.
- Net loss was US$625,357 compared to net loss of US$157,920 in the first fiscal quarter of 2010.
- Basic and diluted losses per share were US$0.23 and US$0.05 for the first fiscal quarter of 2012 and 2011, respectively. Earnings and losses per share are adjusted for the non-controlling interest.
Revenue growth in the first fiscal quarter of 2012 ended September 30, 2011 slowed appreciably as a result of the China government financing policies that resulted in lower imports of iron ore into China. By intensive marketing activities Sino-Global was able to show a modest increase in revenue of 4.8% in the first fiscal quarter. Sino-Global was able to partially mitigate US dollar devaluation in the most recent quarterly period by successfully negotiating an approximately 5% agency fee increase with Beijing Shourong in March 2011. Revenues from Sino-Global's existing major client, Beijing Shourong Forwarding Limited was 51% of total revenues in the first fiscal quarter of 2012 compared to 67% in the year prior quarter. To offset the expected continued devaluation of the US dollar against the Chinese RMB, the Company seeks to continue to grow overseas revenue that are paid in local currencies.
Sino-Global continues to focus on expanding its global activities and on July 5, 2011 announced a Strategic Cooperative Agreement with COSCO Container Shipping Agency Co. Limited, one of the largest state-owned shipping agents in China, that permits Sino-Global to use COSCO's name to market for business in China and overseas.
Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "We continue to look for opportunities to increase revenue in both China and globally and announced, shortly after the close of the first fiscal quarter, on October 12, 2011, the signing of a Memorandum of Understanding with King & Sons Shipping Agency, a subsidiary of Grindrod Limited, a public company listed on the JSE Securities Exchange (JSE:GNDP), one of the oldest shipping agent organization in South Africa, that will allow Sino-Global to provide general shipping agency services to all ports in South Africa."
Mr. Cao, continued, "We expect to sign additional reciprocal shipping agency agreements in the near future that will result in additional ships and loading ports that use Sino-Global's services and believe that these efforts will result in significant incremental revenues and improved gross margins. Our outstanding reputation for quality shipping agency services and agreements that we have negotiated already will open doors into new geographic regions and bring new customers."
In conclusion, Mr. Cao, stated, "Fiscal 2012 began with a very moderate increase in revenues, but we anticipate that the pace of growth will accelerate over the course of the fiscal year as we maintain and add to our current customer base and benefit from the development of new markets in China and overseas reciprocal agreements."
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 quarter ended September 30, 2011, please refer to the company's filing on Form 10-Q filing or Sino-Global's web site: www.sino-global.com.
Ms. Apple Liang
Stephen D. Axelrod, CFA
Wolfe Axelrod Weinberger Assoc. LLC
Tel. (212) 370-4500 Fax (212) 370-4505
- Tables to Follow -
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended September 30,
Costs and expenses
Cost of revenues
General and administrative expense
Financial income (expense), net
Loss from equity investment
Net loss before provision for income taxes
Income taxes (expense) benefit
Net loss attributed to non-controlling interest
Net loss attributable to Sino-Global Shipping America Ltd.
Other comprehensive income
Foreign currency translation adjustments
Comprehensive loss attributable to non-controlling interest
Comprehensive loss attributable to Sino-Global Shipping America Ltd.
Earnings (loss) per share
-Basic and diluted
Weighted average number of common shares used in computation
-Basic and diluted
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Advances to suppliers
Accounts receivable, less allowance for doubtful accounts of $290,145 and $194,955 as of September 30, 2011 and June 30, 2011
Other receivables, less allowance for doubtful accounts of $80,000 as of September 30, 2011 and June 30, 2011
Prepaid expenses and other current assets
Employee loans receivable
Income tax receivable
Deferred tax assets
Total current assets
Property and equipment, net
Employee loans receivable less current portion
Deferred tax assets
Liabilities and Equity
Advances from customers
Income tax payable
Other current liabilities
Total Current Liabilities
Commitments and Contingencies
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
Additional paid-in capital
Treasury stock, at cost
Accumulated other comprehensive loss
Total Sino-Global Shipping America Ltd. equity
Total Liabilities and Equity
SOURCE Sino-Global Shipping America, Ltd.