ROSLYN, N.Y., July 6, 2020 /PRNewswire/ -- Sino-Global Shipping
America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company", "we",
"our", or "us"), a global logistics service provider, announced its
financial and operating results for its fiscal 2020 third quarter
ended March 31, 2020. The Company has
also provided more detailed information in its quarterly report on
Form 10-Q filed today with the U.S. Securities and Exchange
Commission.
Management Comments
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global
commented, "Over the past several weeks, we have greatly expanded
our ability to service the demand for exported products to
China from the U.S., and have done
so in a cost-effective manner with a focus on streamlined
operations and free cash flow. We strengthened our management team
through the appointment of Kelin Wu,
secured shipping agency agreements, and chartered two vessels to
meet this demand. Finally, we signed a significant MOU with a
long-time partner of Sino-Global, which helps to secure potential
purchases of material. We believe all of this will greatly increase
the Company's revenue with high-margins, and do so with long term
customers in which we have successfully worked and collected cash
from in the past. The quarter ended March
31, 2020 was largely impacted by the impact on trade from
delays in a U.S. / China trade
agreement and COVID-19. While this confluence of factors led to a
slight delay in our reporting timing, we are pleased to again
become current with our filings. Going forward, we feel very well
positioned to increase sales and begin to deliver profitability for
our shareholders."
Recent Highlights
June 29,
2020:
|
Signs Agreements to
Charter Two Ships to Meet Export Product Demand to China from the
U.S.
|
|
|
June 25,
2020:
|
Signs MOU with Yunnan
Jingyifeng Supply Chain Management to Address Growing Need for
Exported Fuel and Agricultural Products to China
|
|
|
June 8,
2020:
|
Signs Two Year
General Agency Service Agreement; Expected to Add Approximately $12
Million in Revenue Annually
|
|
|
April 27,
2020:
|
Appoints Mr. Kelin Wu
as Chief Marketing Officer
|
Fiscal Third Quarter 2020 Financial Review
- The Company reported total revenues of $1,353,979 for the quarter ended March 31, 2020, compared to $22,773,139 reported in the same period last
year. The decrease was largely due to the fact that in certain
freight logistics contracts that the Company entered into with
customers starting from the first quarter of fiscal year 2020, only
acted as an agent and did not control the services rendered to the
customers, as Sino-Global was not the primary responsible party to
fulfill the services. As such revenues on these contracts are
accounted for on a net basis. The decrease was also due to the
decrease in revenues from inland transportation management services
as service contracts with customers have expired and there was no
new business for this segment.
- The Company's gross profit for the 2020 fiscal third quarter
was $464,872, compared to
$1,697,944 in the same period last
year. Gross profit margin during the quarter was approximately
34.3%, compared to approximately 7.5% in the same period last year.
The increase was largely due to the Company's shifting of business
focus towards its agency business for providing freight logistics
services where the Company acted solely as an agent and did not
control the services rendered to its customers.
The following tables present summary information by segment for
the three months ended March 31, 2020
and March 31, 2019, respectively:
|
For the Three
Months Ended March 31, 2020
|
|
Shipping
Agency and Management Services
|
|
Inland
Transportation
Management Services
|
|
Freight
Logistics
Services
|
|
Container Trucking
Services
|
|
Total
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
- Related
party
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
- Third
parties
|
$
|
500,000
|
|
$
|
-
|
|
$
|
853,979
|
*
|
$
|
-
|
|
$
|
1,353,979
|
|
Total
revenues
|
$
|
500,000
|
|
$
|
-
|
|
$
|
853,979
|
|
$
|
-
|
|
$
|
1,353,979
|
|
Cost of
revenues
|
$
|
67,841
|
|
$
|
-
|
|
$
|
821,266
|
*
|
$
|
-
|
|
$
|
889,107
|
|
Gross
profit
|
$
|
432,159
|
|
$
|
-
|
|
$
|
32,713
|
|
$
|
-
|
|
$
|
464,872
|
|
Depreciation and
amortization
|
$
|
79,732
|
|
$
|
-
|
|
$
|
3,421
|
|
$
|
-
|
|
$
|
83,153
|
|
Total capital
expenditures
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Gross
margin%
|
|
86.4
|
%
|
|
-
|
%
|
|
3.8
|
%
|
|
-
|
%
|
|
34.3
|
%
|
*
|
For certain freight
logistics contracts that the Company entered into with customers
starting from first quarter of fiscal year 2020, the Company (i)
acts as an agent in arranging the relationship between the customer
and the third-party service provider and (ii) does not control the
services rendered to the customers, revenues related to these
contracts are presented net of related costs. For the three months
ended March 31, 2020, gross revenues and gross cost of revenues
related to these contracts amounted to approximately $2.0 million
and $2.0 million, respectively.
|
|
For the Three
Months Ended March 31, 2019
|
|
Shipping
Agency and Management Services
|
|
Inland
Transportation
Management Services
|
|
Freight
Logistic
Services
|
|
Container Trucking
Services
|
|
Total
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
- Related
party
|
$
|
-
|
|
$
|
36,380
|
|
$
|
-
|
|
$
|
-
|
|
$
|
36,380
|
|
- Third
parties
|
$
|
956,583
|
|
$
|
93,407
|
|
$
|
21,599,675
|
|
$
|
87,094
|
|
$
|
22,736,759
|
|
Total
revenues
|
$
|
956,583
|
|
$
|
129,787
|
|
$
|
21,599,675
|
|
$
|
87,094
|
|
$
|
22,773,139
|
|
Cost of
revenues
|
$
|
862,970
|
|
$
|
48,750
|
|
$
|
20,098,417
|
|
$
|
65,058
|
|
$
|
21,075,195
|
|
Gross
profit
|
$
|
93,613
|
|
$
|
81,037
|
|
$
|
1,501,258
|
|
$
|
22,036
|
|
$
|
1,697,944
|
|
Depreciation and
amortization
|
$
|
-
|
|
$
|
39,109
|
|
$
|
476
|
|
$
|
4,448
|
|
$
|
44,033
|
|
Total capital
expenditures
|
$
|
-
|
|
$
|
-
|
|
$
|
125,806
|
|
$
|
8,317
|
|
$
|
134,123
|
|
Gross
margin%
|
|
9.8
|
%
|
|
62.4
|
%
|
|
7.0
|
%
|
|
25.3
|
%
|
|
7.5
|
%
|
- The Company had an operating loss of $4,034,743 for the three months ended
March 31, 2020, compared to an
operating loss of $1,229,233 for the
same period in 2019.
- For the fiscal quarter ended March 31,
2020, the Company reported net loss attributable to
Sino-Global Shipping America, Ltd. of $3,818,094, or a loss of approximately
$0.22 per diluted share based on
approximately 17.7 million weighted average shares outstanding,
compared to net loss attributable to Sino-Global Shipping America,
Ltd. of $1,388,790, or a loss of
approximately $0.09 per diluted share
based on approximately 15.2 million weighted average shares
outstanding, for the same period last year.
Balance Sheet Information
- The Company holds no long-term debt.
- As of March 31, 2020, the
Company's working capital was $3,525,468 and the Company had cash of
$143,112.
- The Company's allowance for doubtful accounts was approximately
$6.7 million as of March 31, 2020 compared with allowance of
doubtful accounts of approximately $5.7
million as of June 30, 2019.
As the Company continues to maintain long-standing relationships
with its customers, it will work with these parties to monitor
their payments closely and it does not believe that there are any
significant collection issues with respect to accounts receivables,
net of allowance.
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 and management, 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
CONSOLIDATED
STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS
(UNAUDITED)
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
March
31,
|
|
March
31,
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
Net revenues - third
parties
|
$
|
1,353,979
|
|
$
|
22,736,759
|
|
$
|
5,161,329
|
|
$
|
39,354,579
|
Net revenues -
related party
|
|
-
|
|
|
36,380
|
|
|
-
|
|
|
433,380
|
Total
revenues
|
|
1,353,979
|
|
|
22,773,139
|
|
|
5,161,329
|
|
|
39,787,959
|
Cost of
revenues
|
|
(889,107)
|
|
|
(21,075,195)
|
|
|
(2,328,156)
|
|
|
(34,715,624)
|
Gross
profit
|
|
464,872
|
|
|
1,697,944
|
|
|
2,833,173
|
|
|
5,072,335
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(79,099)
|
|
|
(140,601)
|
|
|
(335,253)
|
|
|
(507,199)
|
General and
administrative expenses
|
|
(952,661)
|
|
|
(1,053,903)
|
|
|
(2,746,180)
|
|
|
(3,442,695)
|
Impairment loss of
fixed assets and intangible asset
|
|
-
|
|
|
-
|
|
|
(327,632)
|
|
|
-
|
Provision for
doubtful accounts
|
|
(3,121,416)
|
|
|
(1,583,965)
|
|
|
(4,289,170)
|
|
|
(2,871,752)
|
Stock-based
compensation
|
|
(346,439)
|
|
|
(148,708)
|
|
|
(1,252,756)
|
|
|
(2,013,292)
|
Total operating
expenses
|
|
(4,499,615)
|
|
|
(2,927,177)
|
|
|
(8,950,991)
|
|
|
(8,834,938)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(4,034,743)
|
|
|
(1,229,233)
|
|
|
(6,117,818)
|
|
|
(3,762,603)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
21,260
|
|
|
2,499
|
|
|
7,103
|
|
|
3,993
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before
provision for income taxes
|
|
(4,013,483)
|
|
|
(1,226,734)
|
|
|
(6,110,715)
|
|
|
(3,758,610)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(189,510)
|
|
|
(248,820)
|
|
|
(204,257)
|
|
|
(427,333)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(4,202,993)
|
|
|
(1,475,554)
|
|
|
(6,314,972)
|
|
|
(4,185,943)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interest
|
|
(384,899)
|
|
|
(86,764)
|
|
|
(462,192)
|
|
|
(6,419)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Sino-Global Shipping America, Ltd.
|
$
|
(3,818,094)
|
|
$
|
(1,388,790)
|
|
$
|
(5,852,780)
|
|
$
|
(4,179,524)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(4,202,993)
|
|
$
|
(1,475,554)
|
|
$
|
(6,314,972)
|
|
$
|
(4,185,943)
|
Other comprehensive
income (loss) - foreign currency
|
|
(112,671)
|
|
|
262,467
|
|
|
(360,132)
|
|
|
(306,457)
|
Comprehensive
loss
|
|
(4,315,664)
|
|
|
(1,213,087)
|
|
|
(6,675,104)
|
|
|
(4,492,400)
|
Less: Comprehensive
(loss) income attributable to non-controlling interest
|
|
(322,135)
|
|
|
(96,210
|
|
|
(350,693)
|
|
|
37,445
|
Comprehensive loss
attributable to Sino-Global Shipping America, Ltd.
|
$
|
(3,993,529)
|
|
$
|
(1,116,877)
|
|
$
|
(6,324,411)
|
|
$
|
(4,529,845)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.22)
|
|
$
|
(0.09)
|
|
$
|
(0.35)
|
|
$
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
17,738,157
|
|
|
15,245,703
|
|
|
16,875,173
|
|
|
14,045,018
|
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
|
|
March
31,
|
|
June
30,
|
|
2020
|
|
2019
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
143,112
|
|
$
|
3,142,650
|
Notes
receivable
|
|
-
|
|
|
383,792
|
Accounts receivable,
net
|
|
1,745,672
|
|
|
7,045,846
|
Other
receivables
|
|
6,486,140
|
|
|
4,335,715
|
Advances to suppliers
- third parties
|
|
112,037
|
|
|
124,140
|
Prepaid expenses and
other current assets
|
|
239,830
|
|
|
105,054
|
Due from related
party, net
|
|
435,898
|
|
|
807,965
|
Total Current
Assets
|
|
9,162,689
|
|
|
15,945,162
|
|
|
|
|
|
|
Property and
equipment, net
|
|
588,514
|
|
|
989,910
|
Right-of-use
assets
|
|
337,899
|
|
|
-
|
Intangible assets,
net
|
|
42,222
|
|
|
89,722
|
Prepaid
expenses
|
|
-
|
|
|
519,503
|
Other receivables -
noncurrent
|
|
3,549,958
|
|
|
-
|
Other long-term
assets - deposits
|
|
2,956,802
|
|
|
3,054,706
|
Total
Assets
|
$
|
16,638,084
|
|
$
|
20,599,003
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Advances from
customers
|
$
|
66,987
|
|
$
|
68,590
|
Accounts
payable
|
|
637,489
|
|
|
567,619
|
Lease liabilities -
current
|
|
156,190
|
|
|
-
|
Taxes
payable
|
|
3,290,812
|
|
|
3,184,895
|
Accrued expenses and
other current liabilities
|
|
1,485,743
|
|
|
1,418,129
|
Total current
liabilities
|
|
5,637,221
|
|
|
5,239,233
|
|
|
|
|
|
|
Lease liabilities -
noncurrent
|
|
177,495
|
|
|
-
|
|
|
|
|
|
|
Total
liabilities
|
|
5,814,716
|
|
|
5,239,233
|
|
|
|
|
|
|
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; 18,139,037 and
16,054,534 shares issued as of March 31, 2020 and June 30, 2019,
respectively; 18,139,037 and 15,879,037 shares outstanding as of
March 31, 2020 and June 30, 2019, respectively
|
|
28,090,992
|
|
|
26,523,830
|
Additional paid-in
capital
|
|
2,334,962
|
|
|
2,066,906
|
Subscription
receivable
|
|
(114,054)
|
|
|
-
|
Treasury stock, at
cost, 0 and 175,497 shares as of March 31, 2020 and June 30,
2019
|
|
-
|
|
|
(417,538)
|
Accumulated
deficit
|
|
(12,821,480)
|
|
|
(6,968,700)
|
Accumulated other
comprehensive loss
|
|
(1,142,737)
|
|
|
(671,106)
|
Total Sino-Global
Shipping America Ltd. Stockholders' Equity
|
|
16,347,683
|
|
|
20,533,392
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
(5,524,315)
|
|
|
(5,173,622)
|
|
|
|
|
|
|
Total
Equity
|
|
10,823,368
|
|
|
15,359,770
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
16,638,084
|
|
$
|
20,599,003
|
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
For the Nine
Months Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Operating
Activities
|
|
|
|
|
|
Net loss
|
$
|
(6,314,972)
|
|
$
|
(4,185,943)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Stock-based
compensation
|
|
1,252,756
|
|
|
2,013,292
|
Depreciation and
amortization
|
|
320,272
|
|
|
95,313
|
Non-cash lease
expense
|
|
113,985
|
|
|
-
|
Provision for
doubtful accounts
|
|
4,289,170
|
|
|
2,871,752
|
Impairment loss of
fixed assets and intangible asset
|
|
327,632
|
|
|
-
|
Deferred tax
benefit
|
|
-
|
|
|
(208,047)
|
Changes in assets and
liabilities
|
|
|
|
|
|
Notes
receivable
|
|
386,233
|
|
|
(732,826)
|
Accounts
receivable
|
|
1,051,299
|
|
|
(8,341,650)
|
Other
receivables
|
|
(5,882,569)
|
|
|
36,014
|
Advances to suppliers
- third parties
|
|
11,820
|
|
|
(410,886)
|
Advances to suppliers
- related party
|
|
-
|
|
|
3,312,375
|
Prepaid expenses and
other current assets
|
|
165,939
|
|
|
821,662
|
Other long-term
assets - deposits
|
|
89,274
|
|
|
(2,502,946)
|
Due from related
parties
|
|
413,408
|
|
|
1,552,918
|
Advances from
customers
|
|
(1,496)
|
|
|
(353,696)
|
Accounts
payable
|
|
72,772
|
|
|
1,336,453
|
Taxes
payable
|
|
116,520
|
|
|
837,641
|
Lease
liabilities
|
|
(118,256)
|
|
|
-
|
Accrued expenses and
other current liabilities
|
|
65,094
|
|
|
535,921
|
Net cash used in
operating activities
|
|
(3,641,119)
|
|
|
(3,322,653)
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
(6,979)
|
|
|
(143,480)
|
Net cash used in
investing activities
|
|
(6,979)
|
|
|
(143,480)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
|
885,946
|
|
|
500,000
|
Net cash provided
by financing activities
|
|
885,946
|
|
|
500,000
|
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash
|
|
(237,386)
|
|
|
(608,219)
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(2,999,538)
|
|
|
(3,574,352)
|
|
|
|
|
|
|
Cash at beginning of
period
|
|
3,142,650
|
|
|
7,098,259
|
|
|
|
|
|
|
Cash at end of
period
|
$
|
143,112
|
|
$
|
3,523,907
|
|
|
|
|
|
|
Supplemental
information
|
|
|
|
|
|
Income taxes
paid
|
$
|
38,557
|
|
$
|
144,018
|
|
|
|
|
|
|
Non-cash
transactions of operating and investing activities
|
|
|
|
|
|
Transfer of
prepayment to intangible asset
|
$
|
218,678
|
|
$
|
-
|
Initial recognition
of right-of-use assets and lease liabilities
|
$
|
452,119
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-2020-third-quarter-financial-results-301088568.html
SOURCE Sino-Global Shipping America, Ltd.