NEW YORK, Aug. 25, 2015 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ CM: SINO) ("Sino-Global" or the "Company"), a Virginia company engaged in shipping, chartering and logistics services, today updated shareholders on the status of its chartering business and addressed concerns about the anticipated impact of Chinese governmental policies affecting the value of the yuan or Renminbi.
According to Mr. Lei Cao, Sino-Global's Chief Executive Officer, Sino-Global's previously-announced time charter agreement is proceeding according to plan. To date, Sino-Global has received a total of five payments from the charterer under the time charter agreement since it commenced on May 20, 2015. Since and including the first payment in June 2015, the time charter agreement has generated net profit to Sino-Global of approximately $300,000 on revenues of approximately $570,000.
The recent devaluation of the yuan by the Chinese authorities has, to date, had a negligible impact on Sino-Global's business. Mr. Lei Cao, Chief Executive Officer of Sino-Global, explained, "Because our time charter arrangement is entirely US dollar-denominated, and because the vessel operates in a highly specialized trade, a slowdown in the Chinese economy and changes in the value of the yuan have, to date, not adversely affected this business. As for our shipping agency business, we are paid in US, Australian and Canadian dollars, so our foreign exchange risk is not tied solely to the yuan."
Mr. Cao concluded by stating that, "While we do receive yuan for our inland transportation management services, we believe the devaluation is unlikely to have a material impact on our business because we use the yuan in connection with our Chinese operations. A significant slowdown in the Chinese economy might lower our business volume, but that is more a competition effect than a currency effect; and we believe we are among the best competitors in China in this business segment."
Mr. Cao, added, "To attempt to increase our service revenues, we are fostering our relationship with vessel owners, such as with Mr. Weixiong Yang, a vessel owner and a shareholder of Sino-Global as a result of his recent purchase of 500,000 shares of our restricted common stock in July 2015, to identify areas Sino-Global could provide its shipping services to them. As a shareholder of Sino-Global, Mr. Yang we believe, can help Sino-Global expand our service platform and leverage our integrated services to enhance the efficiency of his vessel operation."
About Sino-Global Shipping America, Ltd.
Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a global transportation company, built upon a vertically integrated platform of services that cater to a worldwide client base. These services include shipping and chartering, inland transportation management, shipping agency and ship management services. Headquartered in New York, Sino-Global is run by an experienced management team and is established in shipping markets worldwide, with business operations in the United States, Mainland China, Australia, Canada and Hong Kong. For more information, please visit: www.sino-global.com.
Forward Looking Statements
Any statements and/or other information contained in this release that relate, directly and/or indirectly, to future plans, events or performance of the Company including, but not limited to, performance under the time charter agreements, entry into any agreements with vessel owners and the future impact of currency value on our business, are forward-looking statements that involve risks, and uncertainties some of which are identified in Sino-Global's filings with the Securities and Exchange Commission. Actual results, events or performance of the Company and such other about mentioned events 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 or otherwise disclose the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
For more information, please contact:
Mr. Michael Porter, President
Porter, LeVay & Rose
SOURCE Sino-Global Shipping America, Ltd.