Sino-Global Announces Results for Third Fiscal Quarter 2009

BEIJING, May 18 /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 its third fiscal
quarter of 2009 ended March 31, 2009.
Highlights for the Third Quarter of 2009

-- Revenues were US$3.3 million, an increase of 8.4% from US$3.0 million
in the third quarter of 2008.
-- Gross margin was 24.2%, compared to 12.3% in the third quarter of 2008.
-- Operating margin was -7.5% in the third quarter of 2009, compared to
-9.3% in the third quarter of 2008.
-- On April 27, 2009, Sino-Global announced that it had established branch
offices in the ports of Yantai and Yingkou, enabling the Company to
offer a full range of shipping agency services in two additional ports
that serve approximately 8.7 million people.
-- On October 9, 2008, Sino-Global announced a program authorizing the
Company to repurchase up to 10% of its outstanding common stock over a
12-month period. As of March 31, 2009, Sino-Global had repurchased
69,400 shares. These purchases reflect the Company's confidence in its
future growth prospects.

Mr. Cao Lei, Sino-Global's chief executive officer, said: "The third
fiscal quarter of 2009 was one of the most difficult quarters we have
experienced, but we nevertheless delivered positive year-over-year growth on
our top line and had noteworthy margin improvement. We were successful in
diversifying away from shippers of commodities such as steel by picking up a
major new client that has made a significant contribution to our improving
margins. Going forward, we will continue to seek out opportunities to expand
into complementary areas of service and new geographies. Since our IPO in May
of last year, we have focused significant effort on the marketing and
promotion of our shipping agency services among existing and potential clients
alike. These efforts have resulted in an increased recognition of the
Sino-Global brand, and we expect that these efforts, combined with our
recently announced cost-cutting measures, will enable us to break even next
quarter in a challenging world economy."
Financial Results for the Third Quarter of 2009
Revenues
Revenues were US$3.3 million in the third quarter of 2009, an increase of
8.4% from US$3.0 million in the third quarter of 2008.
As a result of the current global economic downturn, fewer ships carried
goods to and from China compared to the same period in 2008, and the Company's
revenue derived from existing customers shipping iron ore declined
year-over-year. However, the decline was offset by business from a new
customer that exports automobiles from China to countries in North America,
Asia, Europe, the Middle East and Africa.
Sino-Global expects that it will continue to earn a substantial majority
of its revenues from shipping agency services. The Company has placed
considerable focus on the promotion of its shipping agency services business
in recent quarters and intends to expand its business scope to related and
complementary areas in order to meet growth targets.
Costs of Services and Gross Profit
Costs of services were US$2.5 million in the third quarter of 2009, a
decrease of 6.3% from US$2.7 million in the third quarter of 2008.
Gross profit was US$0.8 million in the third quarter of 2009, an increase
of 112.6% from US$0.4 million in the third quarter of 2008. Gross margin was
24.2% in the third quarter of 2009, compared to 12.3% in the third quarter of
2008. The year-over-year improvement in gross margin was mainly the result of
higher margin business from a new shipping agency customer as well as
contribution from the Company's owners' affairs services. The improvement was
partially offset by the depreciation of the U.S. dollar against the Chinese
yuan ("RMB") in the same period, from RMB7.1597 to US$1.00 in the three months
ended March 31, 2008 to RMB6.8363 to US$1.00 in the three months ended March
31, 2009, a 4.52% percent average year-over-year depreciation of the U.S.
dollar against the RMB. Because the Company receives income in U.S. dollars
but pays a majority of expenses in RMB, the depreciation of the U.S. dollar
against the RMB has a negative effect on the Company.
Operating Expenses
General and administrative expenses were US$0.9 million in the third
quarter of 2009, an increase of 39.3% from US$0.6 million in the third quarter
of 2008. The increase in general and administrative expenses was mainly due
to salary expenses used to attract and retain high-caliber personnel, expenses
related to becoming a public company, expenses related to business expansion
and the implementation of a new information management system, office rental
expenses and expenses for legal, accounting and other professional services.
Selling expenses were US$101 thousand in the third quarter of 2009, an
increase of 123.6% from US$45 thousand in the third quarter of 2008, largely
due to increased business promotion and travel expenses as well as expenses
related to the Company's recently opened Hong Kong and Australia branches and
servicing ships in additional ports.
Operating Profit
Operating loss was US$0.2 million in the third quarter of 2009, a 12.7%
decrease from US$0.3 million in the third quarter of 2008. Operating margin
was -7.5% in the third quarter of 2009, compared to -9.3% in the third quarter
of 2008.
Financial expenses were US$9 thousand in the third quarter of 2009,
compared to financial income of US$80 thousand in the third quarter of 2008.
The financial expenses were largely the result of foreign currency exchange
losses, which outweighed income from bank deposits.
Income tax expense was US$1 thousand in the third quarter of 2009, a 92.6%
decrease from US$20 thousand in the third quarter of 2008.
Net Income
Net loss was US$99 thousand in the third quarter of 2009, a 66.6% decrease
from US$297 thousand in the third quarter of 2008. Net margin was -3.0% in
the third quarter of 2009, compared to -9.8% in the third quarter of 2008.
Basic and diluted losses per share in the third quarter of 2009 were
US$0.03, compared to US$0.16 in the third quarter of 2008.
Other Select Data
As of March 31, 2009, the Company had US$7.3 million in cash and cash
equivalents, compared to US$9.6 million as of June 30, 2008. Net cash used in
operating activities and capital expenditures for the third quarter of 2009
was US$1.9 million and US$0.2 million, respectively.
Share Buyback
On October 9, 2008, Sino-Global's board of directors approved a share
buyback authorizing the Company to repurchase up to 10% of the Company's
outstanding common stock for a period of 12 months. As of March 31, 2009, the
Company had repurchased 69,400 shares from the open market at an average price
of US$2.74, including trading expenses.
Business Outlook
Due to the global economic slowdown:

-- The amount of goods imported into China has decreased significantly,
resulting in fewer ships from existing clients served.
-- While the Company has focused significant effort on the promotion of
its shipping services business to current and new clients and has
achieved positive revenue growth in the first three quarters of fiscal
year 2009, the effects of the financial crisis have overshadowed these
positive achievements.

Subsequently, the Company is revising annual growth expectation downward,
which may result in net losses for full fiscal year 2009.
The Company additionally noted that as a result of cost-cutting measures
announced March 30, 2009, it expects to break even in the fourth fiscal
quarter of 2009, resulting in a full-year net loss from continuing operations
before non-controlling interest of approximately US$2.0 million and a net loss
of approximately US$1.5 million. These views are current and preliminary and
are subject to change.
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 eight of
China's 76 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 undue reliance on these
forward-looking statements, which speak only as of the date hereof. A number
of factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not limited to the
following: Sino-Global's anticipated growth strategies; Sino-Global's future
business development, results of operations and financial condition; expected
changes in the Company's revenues and certain cost or expense items;
Sino-Global's ability to attract customers and leverage its brand;
Sino-Global's timely receipt of payment from customers under new and existing
contracts; trends and competition in the shipping and shipping agency
industries; the Company's ability to hire, train and retain qualified
managerial and other employees; Sino-Global's efforts at controlling company
expenses; the Company's ability to develop and market new services in a timely
and cost-effective manner; the expected growth of the Chinese economy and the
shipping industry in particular; fluctuations in currency exchange rates;
applicable tax rates; the continued viability of the partnership model of
expansion; and Sino-Global's ability to leverage our subsidiaries located
outside the U.S. for tax and revenue benefits. In addition Sino-Global cannot
guarantee that any expansion of the Company's current scope of services will
result in the anticipated, or any, benefits to the Company. Sino-Global
undertakes no obligation to publicly release the results of any revisions to
these forward-looking statements that may be made to reflect events or
circumstances occurring 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: ir@sino-global.net

Ms. Flora Tian
Ogilvy Financial, Beijing
Tel: +86-10-8520-6524
Email: Flora.Tian@ogilvy.com

SOURCE Sino-Global Shipping America, Ltd.

Ms. Apple Liang of Sino-Global, Beijing, +86-10-6439-1888, or
ir@sino-global.net; or Ms. Flora Tian of Ogilvy Financial, Beijing,
+86-10-8520-6524, or Flora.Tian@ogilvy.com, for SINO