Sino-Global Announces Second Fiscal Quarter 2010 Financial Results
BEIJING, Feb. 12 /PRNewswire-Asia/ -- Sino-Global Shipping America, Ltd. (Nasdaq: SINO) ("Sino-Global" or the "Company"), a leading, non-state-owned provider of shipping agency services operating primarily in China, today announced its selected unaudited financial results for fiscal quarter ended December 31, 2009.
Highlights for the Second Quarter of 2010
-- Revenues increased 48.2% to US$6.6 million, from US$4.5 million in the
second quarter of 2009.
-- Gross margin increased to 11.7% compared to 9.4% in the second quarter
of 2009.
-- Net loss was US$390 thousand compared to net loss of US$1.1 million in
the second quarter of 2009.
-- Basic and diluted losses per share were US$0.01, compared to basic and
diluted losses per share of US$0.30 in the second quarter of 2009.
"We continued our significant top-line growth through our new client expansion strategy this quarter. We also strengthened our ties to our existing clients, which increased the number of ships we serve," said Mr. Cao Lei, Sino-Global's Chief Executive Officer. "This quarter we continued to leverage our growing international network and full range of agency services, such as ship chartering and forwarding services. Along with the world's and China's economy recovery, we believe that we may continue our revenue growth rate of over 20% in 2010."
"In addition to the world financial crisis, the devaluation of Chinese RMB against US dollar has hurt our operating results, as we receive most of our revenues in US dollars and pay most of our expenses in RMB," said Mr. Zhang Mingwei, Sino-Global's Chief Financial Officer. "As the pressure of foreign exchange risk continues, we will continue to focus on controlling costs and managing our budgets in 2010. Although the economy remains uncertain, we believe that our combined efforts in promoting sales revenue growth and controlling costs will position our company to continue to improve its operating results."
Selected Financial Results for the Second Quarter of 2010
Revenues
Total revenues were US$6.6 million in the second quarter of 2010, an increase of 48.2% from US$4.5 million in the 2009 period. The number of ships that Sino-Global served increased 40.4% to 66 in the second quarter of 2010, from 47 in the year-ago period.
The Company expects top-line growth to continue along with the economic recovery in China and around the world. Sino-Global also believes that a substantial majority of its revenues will continue to come from shipping agency services.
Cost of Revenues
Cost of revenues was US$5.9 million in the second quarter of 2010, an increase of 44.3% from US$4.1 million in the year-ago period.
Cost of revenues as a percentage of total revenues for the second quarter of 2010 witnessed a slight year-over-year decrease from 90.6% to 88.3%. The Company noted that the exchange rate of U.S. dollars against the Chinese RMB was relatively stable during the period. The average foreign exchange rate decreased from RMB6.8390 to $1.00 in the second quarter of 2009 to RMB6.8274 to $1.00 in the second quarter of 2010.
Gross profit was US$779 thousand in the second quarter of 2010, an increase of 86.1% from US$419 thousand in the year-ago period. Gross margin increased to 11.7% in the second quarter of 2010 from 9.4% in the year-ago period.
Operating Expenses
General and administrative expenses were US$938 thousand in the second quarter of 2010, a decrease of 18.9% from US$1.2 million in the year-ago period. General and administrative expenses as a percentage of total revenues decreased to 14.1% in the second quarter 2010 from 25.8% in the year-ago period.
This decrease includes (1) a decrease of $191,454 in travel, car and related expenses and (2) reduced expenses of $101,820 in office rent and supplies. We spent $47,765 in Sarbanes-Oxley Section 404(b) compliance for the three months ended December 31, 2009, compared to expenses of $47,369 in the year-ago period.
Selling expenses were US$37 thousand in the second quarter of 2010, a decrease of 74.2% from US$142 thousand in the year-ago period.
Operating Loss
Operating loss was US$241 thousand in the second quarter of 2010, a decrease of 72.5% from US$877 thousand in the year-ago period.
Financial income was US$16 thousand in the second quarter of 2010, compared to financial loss of US$90 thousand in the year-ago period. The net financial income comes largely from interest income accumulated from bank deposits and by the foreign exchange losses recognized in the consolidated financial statements.
Income tax expenses were US$119 thousand in the second quarter of 2010, a decrease of 22.5% from the US$154 thousand in the year-ago period. This expense includes the estimated U.S. income tax expenses of $199,151 offset by the deferred taxes of $80,000 in the USA.
Net loss was US$390 thousand in the second quarter of 2010, compared to net loss of US$1.1 million in the year-ago period. Net loss attributable to Sino-Global Shipping America Ltd. was US$35 thousand in the second quarter of 2010, compared to net loss of US$901 thousand in the year-ago period.
Basic and diluted loss per share in the second quarter of 2010 was US$0.01, compared to basic and diluted loss per share of US$0.30 in the year-ago period.
Other Selected Data
As of December 31, 2009, the Company had US$7.1 million in cash and cash equivalents, compared to US$7.7 million in the year-ago period.
About Sino-Global Shipping America, Ltd.
Registered in the United States in 2001 and operating primarily in mainland China, Sino-Global is a leading, non-state-owned provider of high-quality shipping agency services. With local branches in most of the main Chinese ports and contractual arrangements in all those where it does not have branch offices, Sino-Global is able to offer efficient, high-quality shipping agency services to shipping companies entering Chinese ports. With a subsidiary in Perth, Australia, where it has a contractual relationship with a local shipping agency, Sino-Global provides complete shipping agent services to companies involved in trades between Chinese and Australian ports. Sino-Global also operates a subsidiary in Hong Kong, China, to provide comprehensive shipping agent services to vessels going to and from one of the world's busiest ports.
Sino-Global provides ship owners, operators and charters with comprehensive yet customized shipping agency services including intelligence, planning, real-time analysis and on-the-ground implementation and logistics support. Sino-Global has achieved both ISO9001 and UKAS certifications.
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 undo 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.
For investor and media inquiries, please contact:
Ms. Apple Liang
Sino-Global, Beijing
Tel: +86-10-6439-1888
Email: [email protected]
SOURCE Sino-Global Shipping America, Ltd.
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