Market Overview

Sino-Global Announces Fiscal 2020 First Quarter Financial Results

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ROSLYN, N.Y., Nov. 19, 2019 /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 first quarter ended September 30, 2019.

The Company has also provided more detailed information on its quarterly report on Form 10-Q filed this afternoon with the U.S. Securities and Exchange Commission. Management encourages investors to review the Company's 10-Q for a detailed discussion of the Company's financial results for the quarter ended September 30, 2019.

Management Comments

Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "During the first quarter, our strategy continued to be negatively impacted by the ongoing difficult U.S./China trade relations. We were very pleased to have significantly improved gross margins despite a difficult sales environment, partly due to our shifting focus towards our shipping agency business. By utilizing our agency network and previous investments in technology, we have retained the ability to service a broader base of customers. Despite our ongoing efforts to rationalize costs and expenses, we remain cautious amidst a macro-economic stalemate with an indeterminant time frame. As the Company moves forward into fiscal 2020, we will be focusing on leveraging our growing infrastructure to improve operating margins and the bottom line while simultaneously seeking immediate international opportunities. We expect to provide a shareholder letter to outline our growth strategy for the coming year prior to our next annual meeting."

Fiscal First Quarter 2020 Financial Review

  • The Company reported total revenues of approximately $1.8 million for the quarter ended September 30, 2019, compared to approximately $6.5 million reported in the same period last year.  The decrease was largely due to a shift to shipping agency and management activities with certain freight logistics contracts in light of uncertainty surrounding current trade along with lower inland management revenues.
  • The Company's gross profit for the 2020 fiscal first quarter was approximately $1.1 million, compared to approximately $1.4 million in the same period last year. Gross profit margin during the quarter was approximately 61.7%, compared to approximately 21.8% in the same period last year. The increase was largely due to shifting toward 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 segments mainly regarding the top-line financial results for the quarters ended September 30, 2019 and 2018, respectively:



For the Three Months Ended September 30, 2019




Shipping
Agency and
Management
Services



Inland

Transportation
Management
Services



Freight
Logistics
Services



Container
Trucking
Services



Total


Revenues
















- Related party


$

-



$

-



$

-



$

-



$

-


- Third parties


$

500,000



$

-



$

1,242,142

*


$

44,084



$

1,786,226


Total revenues


$

500,000



$

-



$

1,242,142



$

44,084



$

1,786,226


Cost of revenues


$

95,822



$

-



$

547,684

*


$

39,898



$

683,404


Gross profit


$

404,178



$

-



$

694,458



$

4,186



$

1,102,822


Depreciation and amortization


$

102,774



$

-



$

7,702



$

44,101


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