China mainland shipping agency provider Sino-Global announce increased revenue in fiscal year 2012 results.
Sino-Global Shipping America, Ltd. a leading, non-state-owned provider of shipping agency services operating primarily in China, report that Fiscal 2012 was a difficult year for the Company as the economic slowdown in China had a significant impact on the volume of iron ore imported into China and, consequently, on the Company's results.
By aggressive marketing activities that resulted in new customers that load iron ore in overseas ports, Sino-Global was able to manage a small increase in revenues. The number of ships served increased from 421 in fiscal 2011 to 477 in fiscal 2012. However, since the increased number of ships served primarily used the Company's lower agency fees per ship protective services, the contribution to overall revenues was insufficient to overcome the decline in iron ore imports.
To offset the decline in iron ore imports and higher costs being paid to Chinese local ports, Sino-Global undertook an intensive marketing effort to attract new clients and maintain and increase revenue growth, with some success, but general and administrative expenses and selling expenses increased as a result of such efforts.
Highlights for the Fiscal Year Ended June 30, 2012
• Revenues increased 2.87% to US$33.9 million, from US$32.9 million in the fiscal year ended June 30, 2011.
• Gross margin decreased to 7.96% in the current fiscal year compared to 10.07% in the prior fiscal year.
• General and administrative expenses as a percentage of total revenues increased to 15.45% from 13.80% in fiscal 2011.
• Net loss was US$2.81 million compared to net loss of US$1.25 million in fiscal 2011.
• Basic and diluted losses per share were US$0.61 and US$0.30 for fiscal 2012 and fiscal 2011, respectively.
Registered in the United States in 2001 and operating primarily in mainland China, Sino-Global is a leading, non-state-owned provider of shipping agency services. With local branches in most of China's main 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.