Non-state company, Sino-Global, announces major decline in third quarter 2013 financial results, raises cash by share issue.
Sino-Global is a non-state-owned provider of shipping agency services operating primarily in China. Financial highlights are as folllows:
- Total revenues decreased 74.32% to US$2.34 million, from US$9.11 million in the third fiscal quarter ended March 31, 2013.
- The devaluation of the US dollar against the Chinese Renminbi ("RMB") resulted in a very slight impact on gross margin, which expanded in the quarter to 14.76% up from 5.22% in the third fiscal quarter of 2012, due to providing more protective services, which carry higher margins.
- Strong internal budget controls reduced general and administrative expenses in absolute amount by 53%.
- Net loss improved to US$211,040 from net loss of US$770,155 in the third fiscal quarter of 2012.
- Basic and diluted losses per share were US$0.06 and US$0.16 for the third fiscal quarters of 2013 and 2012, respectively, Earnings and losses per share are adjusted for the non-controlling interest.
Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "The difficult economic environment continued into the third quarter, stemming from the reduced volume of iron ore imports. As a result, we saw a reduction in the number of ships we service. In addition, one of our major customers, Beijing Shourong Forwarding Company ("Shourong"), has changed its service arrangement with us, to protective agency services versus the lump sum fixed rate discharging agency services. As a result of this change, our revenue base declined significantly. While this is extremely disappointing, we have managed to streamline our business in light of this change by cutting expenses, which limited our losses in the quarter. On a positive note, our gross margin improved to nearly 15% in the quarter as we provided protective agency services to more ships, which carries a higher gross margin compared to the loading and discharging services."