ROSLYN, N.Y., Feb. 13, 2019 /PRNewswire/ -- Sino-Global
Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the
"Company", "our", "we" or "us"), a logistics integrated solutions
provider engaged in non-asset based global shipping, freight
logistics, and inland transportation management and related
services, today announced its financial and operating results for
the second quarter and six months ended December 31, 2018 ("Fiscal 2019").
The Company has also provided an update on its Quarterly report
on Form 10-Q filed with the U.S.
Securities and Exchange Commission the
same day. Management encourages investors to review this
filing for more details of the Company's financial results for the
period.
Management Comments – Highlights in Second
Quarter of Fiscal 2019
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global
commented, "We delivered multiple shipments totaling approximately
$0.89 million in revenue for the
Company for November and December
2018 as part of our expanded shipping agency business and
our freight logistics business generated revenue of approximately
$8.98 million during the second
quarter of 2019. The second quarter reflected the full impact of
our costs associated with the transition to a shipping agency and
logistics focus without the corresponding revenue, which we believe
will be expressed in the second half of Fiscal 2019. The Company
has signed multiple contracts over the past year with large import
/ export agencies throughout China
and anticipates an increase in revenues in this business
segment."
Mr. Cao continued, "Our plan is to develop a shipping agency
network in China and South East Asia for the next three years and
to expand our shipping agency network worldwide. We plan to build
the network through acquisitions or strategic partnership with
other shipping agencies. Our shipping agency business will be
mostly conducted through our subsidiaries in China, Hong
Kong and Australia, where
we have over 20 years of experience. Our initial strategy was to
expand our partnerships gradually during 2018 with agencies that
have a strong track-record throughout 2018 and then to increase
sales and cash generation throughout 2019. We began seeing a
considerable shift in sales in the fiscal 2019 second quarter and
expect this to continue throughout the remainder of 2019."
Fiscal 2019 Second Quarter and Subsequent
Operating Highlights
- On November 1, 2018, the Company
signed a five-year strategic cooperation agreement with a
Hong Kong listed Company, Sinco
Pharmaceuticals Holdings Ltd ("Sinco"), pursuant to which both
companies will contribute resources and expertise to develop cold
chain logistics in China.
- On January 1, 2019, the Company
signed a shipment service agreement with Chongqing Iron and Steel
Company ("Chongqing Iron and Steel") which appointed the Company to
ship 1 million tons of iron ore and coal to their designated port
with service period from January 1,
2019 to December 31, 2019. The
business relationship Sino-Global
has with Chongqing Iron and Steel will further enhance and develop
its freight logistics business.
- During the three months ended December
31, 2018, the Company signed a shipping agency agreement
with Y&D Marine Limited Co.. On January
30, 2019, Sino-Global signed an agency agreement with
Zhejiang Baoming International Shipping Agency Co., Ltd. and
assigned them as the port agent, due to the aforementioned shipping
agency agreement with Y&D Marine Limited Co. We will cooperate
with more port agents in the near future to further expand our
shipping agency business.
Fiscal Year 2019 Second Quarter Financial
Review
- Total revenues increased by 101.4% to approximately
$10.5 million for the three month
period ended December 31, 2018,
compared to approximately $5.2
million in the period ended December
31, 2017. This increase was due to the Company's business
development efforts in freight logistics. In addition, as the
Company decided to transit back to the shipping agency business, we
had generated approximately $0.9
million of revenue from providing shipping agency services
in the second quarter of fiscal year 2019.
- The Company's gross profit for the three month period ended
December 31, 2018 was approximately
$1.96 million, compared to
approximately $1.84 million for the
same period in the prior year. Gross profit margin during the
period was 18.6% compared to 35.3% for the same period last
year.
- Sino-Global's selling, general and administrative expenses
(SG&A expenses) were approximately $2.1
million for the three month period ended December 31, 2018, compared to approximately
$1.9 million in the same period of
the prior year. As a percentage of revenue, SG&A expenses
decreased to 19.8% from 36.0% in the prior year period, largely due
to greater efficiency on higher revenues.
- The Company's provision for doubtful accounts was $416,706 for the three months ended December 31, 2018, compared with a provision for
doubtful accounts of $861,967 for the
same period in 2017. The decrease was due to faster collections
from customers. As the Company continues its business relationship
with several large customers, it will continue to monitor the
collection closely with respect to trade accounts receivable.
- For the three months ended December 31,
2018, the Company reported a net loss attributable to the
Company of approximately $1.5
million, or $(0.11) per
diluted share based on weighted average diluted shares outstanding
of 13,769,918, compared to a net income attributable to the Company
of approximately $0.3 million, or
$0.03 per diluted share based on
weighted average diluted shares outstanding of 10,415,503, for the
same period in the prior year.
The following tables present summary information by segments for
the three months ended December 31,
2018 and 2017:
|
|
For the three
months ended December 31, 2018
|
|
|
Shipping
Agency
Services
|
|
Inland
Transportation
Management
Services
|
|
Freight
Logistics
Services
|
|
Container
Trucking
Services
|
|
Total
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Related
party
|
$
|
-
|
|
$
|
75,000
|
|
$
|
-
|
|
$
|
-
|
|
$
|
75,000
|
|
|
- Third
parties
|
$
|
889,070
|
|
$
|
345,000
|
|
$
|
8,978,923
|
|
$
|
227,294
|
|
$
|
10,440,287
|
|
|
Total
revenues
|
$
|
889,070
|
|
$
|
420,000
|
|
$
|
8,978,923
|
|
$
|
227,294
|
|
$
|
10,515,287
|
|
|
Cost of
revenues
|
$
|
809,040
|
|
$
|
20,000
|
|
$
|
7,497,666
|
|
$
|
229,891
|
|
$
|
8,556,597
|
|
|
Gross
profit
|
$
|
80,030
|
|
$
|
400,000
|
|
$
|
1,481,256
|
|
$
|
(2,596)
|
|
$
|
1,958,690
|
|
|
Depreciation
and amortization
|
$
|
-
|
|
$
|
20,339
|
|
$
|
475
|
|
$
|
4,751
|
|
$
|
25,565
|
|
|
Total capital
expenditures
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
8,534
|
|
$
|
8,534
|
|
|
Gross
margin%
|
9.0
|
%
|
|
95.2
|
%
|
|
16.5
|
%
|
|
(1.1%)
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended December 31, 2017
|
|
|
Shipping
Agency
Services
|
Inland
Transportation
Management
Services
|
|
Freight
Logistics
Services
|
|
Container
Trucking
Services
|
|
Total
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Related
party
|
$
|
-
|
|
$
|
555,246
|
|
$
|
-
|
|
$
|
-
|
|
$
|
555,246
|
|
|
- Third
parties
|
$
|
-
|
|
$
|
838,595
|
|
$
|
3,699,775
|
|
$
|
126,865
|
|
$
|
4,665,235
|
|
|
Total
revenues
|
$
|
-
|
|
$
|
1,393,841
|
|
$
|
3,699,775
|
|
$
|
126,865
|
|
$
|
5,220,481
|
|
|
Cost of
revenues
|
$
|
-
|
|
$
|
174,025
|
|
$
|
3,152,005
|
|
$
|
49,848
|
|
$
|
3,375,878
|
|
|
Gross
profit
|
$
|
-
|
|
$
|
1,219,816
|
|
$
|
547,770
|
|
$
|
77,017
|
|
$
|
1,844,603
|
|
|
Depreciation and
amortization
|
$
|
-
|
|
$
|
12,736
|
|
$
|
476
|
|
$
|
5,327
|
|
$
|
18,539
|
|
|
Total capital
expenditures
|
$
|
-
|
|
$
|
-
|
|
$
|
2,721
|
|
$
|
42,480
|
|
$
|
45,201
|
|
|
Gross
margin%
|
-
|
|
|
87.5
|
%
|
|
14.8
|
%
|
|
60.7
|
%
|
|
35.3
|
%
|
Balance Sheet Information
- As of December 31, 2018, the
Company had approximately $2.5
million in cash, working capital of apporximately
$12.5 million and stockholders'
equity of approximately $18.6
million.
- The Company had no long-term debt as of December 31, 2018.
About Sino-Global Shipping America, Ltd.
Founded in the United States in
2001, Sino-Global Shipping America, Ltd. is a company engaged
originally in shipping, chartering, logistics and related business
services. Headquartered in New
York, Sino-Global has offices in mainland China, Australia, Canada and Hong
Kong. The Company's current service offerings consist of
shipping agency, inland transportation management, freight
logistics and container trucking services. Additional information
about Sino-Global can be found on the Company's corporate website
at www.sino-global.com. 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 sell or a solicitation of 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 U.S. 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 of 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 unless required by
applicable law or regulations.
Contact Information
The Equity Group Inc.
Adam Prior
Senior Vice-President
(212)-836-9606 / aprior@equityny.com
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(UNAUDITED)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Net revenues - third
parties
|
$
|
10,440,287
|
|
$
|
4,665,235
|
|
$
|
16,617,820
|
|
$
|
9,480,086
|
Net revenues - related
party
|
|
75,000
|
|
|
555,246
|
|
|
397,000
|
|
|
1,120,406
|
Total
revenues
|
|
10,515,287
|
|
|
5,220,481
|
|
|
17,014,820
|
|
|
10,600,492
|
Cost of
revenues
|
|
(8,556,597)
|
|
|
(3,375,878)
|
|
|
(13,640,429)
|
|
|
(7,041,796)
|
Gross
profit
|
|
1,958,690
|
|
|
1,844,603
|
|
|
3,374,391
|
|
|
3,558,696
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(258,229)
|
|
|
(335,261)
|
|
|
(366,598)
|
|
|
(357,727)
|
General and
administrative expenses
|
|
(1,831,746)
|
|
|
(1,546,305)
|
|
|
(3,676,579)
|
|
|
(2,247,289)
|
Stock-based
compensation
|
|
(1,047,376)
|
|
|
(280,709)
|
|
|
(1,864,584)
|
|
|
(343,082)
|
Total operating
expenses
|
|
(3,137,351)
|
|
|
(2,162,275)
|
|
|
(5,907,761)
|
|
|
(2,948,098)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(1,178,661)
|
|
|
(317,672)
|
|
|
(2,533,370)
|
|
|
610,598
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
782
|
|
|
137,799
|
|
|
1,494
|
|
|
222,595
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before provision for income taxes
|
|
(1,177,879)
|
|
|
(179,873)
|
|
|
(2,531,876)
|
|
|
833,193
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
(244,979)
|
|
|
571,121
|
|
|
(178,513)
|
|
|
274,692
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(1,422,858)
|
|
|
391,248
|
|
|
(2,710,389)
|
|
|
1,107,885
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interest
|
|
51,114
|
|
|
93,545
|
|
|
80,345
|
|
|
192,993
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Sino-Global Shipping America, Ltd.
|
$
|
(1,473,972)
|
|
$
|
297,703
|
|
$
|
(2,790,734)
|
|
$
|
914,892
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(1,422,858)
|
|
$
|
391,248
|
|
$
|
(2,710,389)
|
|
$
|
1,107,885
|
Other comprehensive
income (loss) - foreign currency
|
|
(106,762)
|
|
|
97,600
|
|
|
(568,924)
|
|
|
145,317
|
Comprehensive income
(loss)
|
|
(1,529,620)
|
|
|
488,848
|
|
|
(3,279,313)
|
|
|
1,253,202
|
Less: Comprehensive
income attributable to non-controlling interest
|
|
26,930
|
|
|
20,618
|
|
|
133,655
|
|
|
61,365
|
Comprehensive
income (loss) attributable to Sino-Global Shipping America
Ltd.
|
$
|
(1,556,550)
|
|
$
|
468,230
|
|
$
|
(3,412,968)
|
|
$
|
1,191,837
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.11)
|
|
$
|
0.03
|
|
$
|
(0.21)
|
|
$
|
0.09
|
Diluted
|
$
|
(0.11)
|
|
$
|
0.03
|
|
$
|
(0.21)
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
13,769,918
|
|
|
10,367,492
|
|
|
13,457,726
|
|
|
10,236,513
|
Diluted
|
|
13,769,918
|
|
|
10,415,503
|
|
|
13,457,726
|
|
|
10,286,683
|
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
|
December
31,
|
|
|
June
30,
|
|
2018
|
|
|
2018
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
$
|
2,454,226
|
|
|
$
|
7,098,259
|
Accounts receivable,
less allowance for doubtful accounts of $3,080,328 and $1,682,228
as of December 31, 2018 and June 30, 2018, respectively
|
|
12,148,934
|
|
|
|
8,428,853
|
Other receivables,
less allowance for doubtful accounts of $145,186 and $145,176 as of
December 31, 2018 and June 30, 2018,
respectively
|
|
35,040
|
|
|
|
69,239
|
Advances to
suppliers-third parties
|
|
934,824
|
|
|
|
704,878
|
Advances to
suppliers-related party
|
|
-
|
|
|
|
3,414,619
|
Prepaid expense and
other current assets
|
|
354,969
|
|
|
|
588,439
|
Due from related
party
|
|
1,105,775
|
|
|
|
2,087,994
|
Total Current
Assets
|
|
17,033,768
|
|
|
|
22,392,281
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
900,455
|
|
|
|
956,429
|
Intangible assets,
net
|
|
121,389
|
|
|
|
153,056
|
Prepaid
expenses
|
|
1,267,005
|
|
|
|
1,878,258
|
Other long-term assets
- deposits
|
|
3,048,586
|
|
|
|
143,303
|
Deferred tax assets,
net
|
|
755,000
|
|
|
|
634,500
|
Total
Assets
|
$
|
23,126,203
|
|
|
$
|
26,157,827
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Advances from
customers
|
$
|
126,395
|
|
|
$
|
415,385
|
Accounts
payable
|
|
770,077
|
|
|
|
3,225,661
|
Taxes
payable
|
|
3,015,104
|
|
|
|
2,700,619
|
Accrued expenses and
other current liabilities
|
|
594,082
|
|
|
|
280,888
|
Total current
liabilities
|
|
4,505,658
|
|
|
|
6,622,553
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,505,658
|
|
|
|
6,622,553
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Preferred stock,
2,000,000 shares authorized, no par value, none issued
|
|
-
|
|
|
|
-
|
Common stock,
50,000,000 shares authorized, no par value; 15,421,200 and
13,271,032 shares issued as of December 31, 2018 and June
30, 2018, respectively; 15,245,703 and 13,095,535 outstanding as of
December 31, 2018 and June 30, 2018,
respectively
|
|
25,791,830
|
|
|
|
23,717,330
|
Additional paid-in
capital
|
|
2,045,657
|
|
|
|
1,755,573
|
Treasury stock, at
cost, 175,497 shares as of December 31, 2018 and June
30, 2018
|
|
(417,538)
|
|
|
|
(417,538)
|
Accumulated
deficit
|
|
(3,225,590)
|
|
|
|
(434,856)
|
Accumulated other
comprehensive loss
|
|
(894,641)
|
|
|
|
(272,407)
|
Total Sino-Global
Shipping America Ltd. Stockholders' Equity
|
|
23,299,718
|
|
|
|
24,348,102
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
(4,679,173)
|
|
|
|
(4,812,828)
|
|
|
|
|
|
|
|
Total
Equity
|
|
18,620,545
|
|
|
|
19,535,274
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
23,126,203
|
|
|
$
|
26,157,827
|
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
For the Six Months
Ended
|
|
December
31,
|
|
2018
|
|
2017
|
|
|
|
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
|
(2,710,389)
|
|
$
|
1,107,885
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
Stock-based
compensation
|
|
1,864,584
|
|
|
343,082
|
Depreciation and
amortization
|
|
51,280
|
|
|
31,742
|
Provision for doubtful
accounts
|
|
1,287,787
|
|
|
837,431
|
Deferred tax
benefit
|
|
(120,500)
|
|
|
(1,073,700)
|
Changes in assets and
liabilities
|
|
|
|
|
|
Accounts
receivable
|
|
(5,044,123)
|
|
|
(2,210,485)
|
Other
receivables
|
|
79,773
|
|
|
(234,751)
|
Advances to
suppliers-third parties
|
|
(220,166)
|
|
|
50,465
|
Advances to
suppliers-related party
|
|
3,294,701
|
|
|
-
|
Prepaid expenses and
other current assets
|
|
408,642
|
|
|
80,952
|
Other long-term assets
- deposits
|
|
(2,489,067)
|
|
|
-
|
Due from related
parties
|
|
1,091,355
|
|
|
(921,532)
|
Advances from
customers
|
|
(295,619)
|
|
|
(23,001)
|
Accounts
payable
|
|
(2,508,225)
|
|
|
288,283
|
Taxes
payable
|
|
305,603
|
|
|
731,456
|
Due to related
parties
|
|
-
|
|
|
(206,323)
|
Accrued expenses and
other current liabilities
|
|
286,613
|
|
|
(61,218)
|
Net cash used in
operating activities
|
|
(4,717,751)
|
|
|
(1,259,714)
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
(9,357)
|
|
|
(50,278)
|
Acquisition of
intangible assets
|
|
-
|
|
|
(190,000)
|
Prepayment for
acquisition of intangible assets
|
|
-
|
|
|
(10,000)
|
Net cash used in
investing activities
|
|
(9,357)
|
|
|
(250,278)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
|
500,000
|
|
|
-
|
Net cash provided
financing activities
|
|
500,000
|
|
|
-
|
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash
|
|
(416,925)
|
|
|
(3,902)
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(4,644,033)
|
|
|
(1,513,894)
|
|
|
|
|
|
|
Cash at beginning of
period
|
|
7,098,259
|
|
|
8,733,742
|
|
|
|
|
|
|
Cash at end of
period
|
$
|
2,454,226
|
|
$
|
7,219,848
|
|
|
|
|
|
|
Supplemental
information
|
|
|
|
|
|
Income taxes
paid
|
$
|
16,536
|
|
$
|
60,162
|
View original
content:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-2019-second-quarter-financial-results-highlighted-by-101-4-increase-to-10-5-million-in-total-revenues-300795289.html
SOURCE Sino-Global Shipping America, Ltd.