ROSLYN, New York, Nov. 1, 2016 /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 that its Chief Executive Officer, Mr. Lei Cao, released a Letter to Shareholders updating current activities and outlining its corporate strategy for 2016 and 2017. The letter is included in its entirety below:
To All Our Valued Shareholders:
I wish to thank all of our shareholders for your continued support since our initial public offering. As Sino-Global's CEO, I would like to take this opportunity to provide you with some recent developments and milestones which we have achieved, that I hope will answer many questions and validate your long term investment in our Company.
We continue to operate in an industry that is always changing, and Sino-Global must evolve to meet the needs of the market. When we completed our IPO in 2008 and listed on Nasdaq, the Company was focused on shipping agency services predominantly in China. In 2013, this expanded to include inland transportation management and shipping management. However, we continued to see both the importance of diversifying our business while recognizing the increasing disconnect between traditional shipping services and inland logistics across multiple continents. During this same period, the Chinese economy experienced a slowdown, which created a disruption in our market that included increased competition for our services in China with pricing that we deemed unsustainable for long-term growth.
We have maintained the Company's ultimate goal of alleviating the challenge of logistics across multiple regions throughout the world and, in response to the slowdown of the Chinese economy and increases in local competition in 2013, we developed and strengthened our business operations in the United States (New York and Los Angeles), Canada (Montreal) and Australia (Perth). Combining our existing operations, experienced management team and established relationships in shipping markets worldwide, we believe we are well equipped to build a seamless connection that made economic sense for shippers, truckers, and the end customers.
Development of Internet-Based Logistics Strategy
Throughout 2016, Sino-Global continued to execute on this business strategy, while streamlining our operations and improving our free cash flow. In March, we announced the expansion of Sino-Global in the United States market through the formation of a new U.S. based subsidiary, Sino-Global Shipping LA Inc., located in L.A. ("Sino LA"), and on May 3rd, announced that Sino LA had entered a memorandum of understanding with Yaxin International Co., Ltd., which represents our first customer agreement for the west coast operation.
With the development of this new subsidiary, we felt that our Company was in the right position to work toward a solution to bridge the gap between shipping services and inland transportation between China and the US.
In August, we announced the development of an internet-based application that will provide a full-service logistics platform between the US and China to short-haul trucking companies in the US. After speaking with several existing and potential customers, we felt that our Company was uniquely suited to deliver a proposition that helped to connect these parties.
By the end of the year, Sino-Global will launch a fully functional internet-based portal where shippers can connect with independent trucking organizations. We will manage this portal and provide a one-stop shop where both parties can directly communicate for the delivery of shipments. We have designed the system to enhance productivity and convenience for our customers and partners while providing Sino-Global with a steady fee income from providing the connection. The process is not dissimilar from the current market for transportation network companies, or "ride-sharing applications." We are excited about the launch and expect to begin recognizing revenues from our portal in the current 2017 first quarter.
In the next few months we expect to partner with a number of trucking operators as we rollout the portal and enhance its functionality. We will launch a new Sino-Global website highlighting this endeavor and outlining our future plans for the fiscal year 2017 and beyond. We intend to continue to maintain an active dialogue with our shareholders throughout the process.
We can say with confidence that what we are building here has all the ingredients required for long-term success and value creation for our stock. On behalf of our board of directors and management team, we thank you for your investment in our company and your continued interest in Sino-Global. Together we believe we can provide significant value accretion to our stockholders.
Mr. Lei Cao,
Chairman and CEO
For a current review of the Company and a copy of this letter, management invites you to access it the Company's website www.sino-global.net.
About Sino-Global Shipping America, Ltd.
Sino-Global Shipping America, Ltd., a Virginia corporation, is a non-asset based global shipping and freight logistic integrated solution provider. Sino-Global provides tailored solutions and value added services to its shipping and freight customers to drive effectiveness and control in related links throughout entire logistic chain. 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.
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SOURCE Sino-Global Shipping America, Ltd.