Sino-Global Announces 2017 First Quarter Financial Results Highlighted by Progress in Freight Logistics Services and Increase in Free Cash Flow

ROSLYN, N.Y., Nov. 14, 2016 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a non-asset based global shipping and freight logistic integrated solution provider, today announced its financial and operating results for the quarter ended September 30, 2016.  The Company has also provided extensive industry information on its Form 10-Q filed this afternoon, and management encourages investors to review the document for both background on Sino-Global's business and history as well as strategy for the coming fiscal year.

Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "We continue to operate in an industry that is always changing, and Sino-Global must evolve to meet the needs of the market. We have maintained the Company's ultimate goal of alleviating the challenge of logistics across multiple regions throughout the world and, 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. Our Company offers a unique value proposition that is well-equipped to help connect logistics and supply chains.  By the end of this calendar year, Sino-Global expects to 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. We are excited about the launch and in the fiscal year 2017 first quarter, we began to recognize revenues from freight logistic services. 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 and can say with confidence that what we are building has all the ingredients required for long-term success and value creation for our shareholders."

Fiscal Year 2017 First Quarter Financial and Operating Highlights (all comparisons to the same quarter in the prior year)

The following table presents summary information by segment for the three months ended September 30, 2016 and 2015:

• Total revenues for the three months ended September 30, 2016 were $1.9 million, compared to $2.7 million in the same period for the prior year. The decrease was mainly due to the declined revenues generated from our shipping agency services segment due to the decreased number of ships served. In addition, due to termination of the vessel acquisition, revenue from our shipping and chartering services segment decreased to nil.
• The cost of revenue was $306,339 for the three months ended September 30, 2016, a decrease of $934,337 or 75.3% as compared to $1,240,676 for the three months ended September 30, 2015. The decrease in the overall cost of revenue in percentage term for the three months ended September 30, 2016 was mainly because the majority of our revenue during the three months ended September 30, 2016 came from more profitable inland transportation business lines and freight logistic service with higher gross profit margin rather than from less profitable shipping agency service segment.
• Gross margin for the three months ended of September 30, 2016 increased to 84.2% from 54.0%, largely due to a change in service mix from the Company's inland transportation business which provided higher margin.
• Net income for fiscal year 2017 first quarter was $637,785 compared to net income of $155,048, largely as the result of a change in service mix towards inland transportation services. 
• Net increase in cash and cash equivalents during for the three months ended of September 30, 2016 was $1.5 million, compared to a net increase of $288,141  in the same period  for the prior year.  The reason for the increase was primarily due to the excellent collection of outstanding accounts receivables during the three months ended September 30, 2016.

 [TP1]This number is the net increase in cash and cash equivalents during the three months. According to our 10Q of Sep 2015, it's $288,141.  And $263,883 was the net cash provided by operating activities.

Balance Sheet Information

• As of September 30, 2016, the Company had $2.9 million in cash and cash equivalents, working capital of $6.9 million and shareholder equity of $12.1 million; compared to $1.4 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
• The Company holds no long-term debt.

Stock Repurchase Plan Update
On October 11, 2015, the Board of Directors of Sino-Global approved a stock repurchase program, in accordance with the retirement method, authorizing the repurchase of up to $100,000 worth of its common stock in open market transactions or in privately negotiated transactions . The plan expired October 19, 2016.

In summary, the Company had repurchased a total of 50,306 common shares at an average stock price of $0.89 per share as of September 30, 2016.

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.

Contact Information
The Equity Group Inc.
Adam Prior
Senior Vice-President
(212)-836-9606 / [email protected]

SOURCE Sino-Global Shipping America, Ltd.