Sino-Global announces 2017 year end financial results

Highlighted by Progress in New Business Initiatives and Increase in Free Cash Flow ROSLYN, N.Y. - Sino-Global Shipping America, Ltd. (NASDAQ: SINO) (“Sino-Global”, the “Company” or “us”), a non-asset based global shipping and freight logistic integrated solution provider, today announced its financial and operating results for the three months and year ended June 30, 2017.  Management Comments Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, “The fiscal 2017 year was a transformational period for the Company. We continued our restructuring efforts and as a result revenues increased over 56% compared to the prior year. We increased our profit margins, and turned an operating loss into an operating profit.” Fiscal Year 2017 Operating Highlights Mr. Cao continued, “In addition to our strong financial results, we successfully completed several key objectives during the fiscal year. A few of these achievements include:

• The restructuring of our business and wind down of our shipping agency, ship management and shipping and chartering services;
• Providing a viable solution to the increasing disconnect between traditional shipping services and inland logistics with the development and launch of our fully functional internet-based portal;
• Partnering with a number of trucking operators in an effort to enhance both the functionality and awareness of our internet-based application; and
• Entering into two joint project agreements that will further evolve our logistics strategy involving a shift from the current bulk cargo transportation model to a containerized model.”

“We first noted our intentions to develop an internet-based logistics platform at the end of fiscal 2016 and since then, we have made significant progress with this platform. In the coming quarters, we expect to continue to leverage our infrastructure to grow and further establish our service network in the U.S., as well as create new business channels around the globe,” concluded Mr. Cao. Fiscal Year 2017 Fourth Quarter Financial Review The following table presents summary information by segment for the three months ended June 30, 2017 and 2016:  

• Total revenues increased by 151% to approximately $4.6 million for the three month period ended June 30, 2017. This increase was due to the Company’s expansion efforts in the following sectors: inland transportation management, freight logistics and container trucking services. 
• The Company’s gross profit for the period was $1.4 million, compared to $670,958  in the prior year period.  Gross profit margin during the period decreased to 31% from 36.5%, which was attributed to a decrease in profit as percentage of total revenue. 
• Operating income for the three months ended June 30, 2017 was $472,037, compared to an operating income of $1,516 for the comparable year.  This was primarily due to the increase in revenue from the Company’s inland transportation management and the introduction of freight logistics services as well as container trucking services in 2017.
• For the three months ended June 30, 2017, the Company reported a net income of $873,952, compared to a net income of $34,316 for the same period in prior year. 

Fiscal Year 2017 Financial Review The following table presents summary information by segment for the years ended June 30, 2017 and 2016:  

• Total revenues increased by approximately $4.1 million or 56.6% to $11.4 million during the year, compared to $7.3 million in the prior year.  This increase was due to the Company’s efforts to diversify its business resulting in an increase in revenues from the Company’s inland transportation management, freight logistic and container trucking services. 
• The Company’s gross profit for the year was $6.5 million, compared to $3.6 million in the prior year.  Gross profit margin during the year increased to 56.5% from 48.9%, which was attributed to an increase in total revenue and increased revenue derived from inland transportation services with high gross profit margin.
• Operating income for the year ended June 30, 2017 was $3.1 million, compared to an operating loss of $1.2 million in the prior year. This was primarily due to an increase in revenue from the Company’s inland transportation management and the introduction of freight logistic services as well as container trucking services during the year, and a significant decrease in total operating expenses.
• For the fiscal year ended June 30, 2017, the Company reported a net income of $3.6 million, compared to net loss of $2.3 million for the prior year. 

Balance Sheet Information

• As of June 30, 2017, the Company had $8.7 million in cash and cash equivalents, working capital of $13.7 million and shareholder equity of $19.5 million; compared to $1.4 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
• The Company holds no long-term debt.

Expectations for Fiscal 2018

• The Company plans to continue to streamline its business operations and improve operating efficiency through innovative technology, effective planning, budgeting, execution and cost control. The Company plans to develop new service lines along the shipping and freight logistics industry value chain, and leverage our relationships with COSCO, Zhiyuan Investment Group and other potential strategic business partners to expand our global business footprint.  

About Sino-Global Shipping America, Ltd. Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged 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 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 / [email protected]