Sino-Global Announces Fiscal Year 2017 Second Quarter Financial Results

ROSLYN, N.Y., Feb. 13, 2017

Fiscal Year 2017 Second Quarter Operating and Financial Highlights
(as compared to the same period of the prior year)

• Total revenues increased 33.3% to $2.1 million, compared to $1.6 million.  The increase was primarily the result of a shift in our business mix, which included increases in revenues reported for the Company's inland transportation management services, freight logistic services and container trucking services. 
• Gross profit margin for the period increased to 83.5% from 55.7%, largely due to the Company's shift in focus towards higher margin logistics services. 
• Net income for the second quarter of fiscal year 2017 was $0.8 million, as compared to a net loss of $1.6 million for the same period of the prior year. 
• Earnings per basic and diluted share increased 161.1%, to $0.11 per share.
• At December 31, 2016, the Company had cash and cash equivalents of $3.3 million, accounts receivable of $1.8 million, working capital of $7.7 million and shareholder equity of $12.8 million; compared to $1.4 million, $2.3 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
• The Company holds no long-term debt.

Management Commentary
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "We had a strong quarter with an increase in total revenue of 33%. This increase was primarily the result of a shift in our business services mix towards inland transportation management, freight logistics and container trucking services. The shift in services was first implemented last year in response to worsening market conditions in the shipping industry. As a result of this change in our business model, the Company is reporting higher profit margins and we believe the Company is now better equipped to address the needs of our evolving and expanding customer base."

Chairman Cao continued, "During the last quarter we continued our efforts to address industry challenges, and in December we completed the launch of our full-service logistics platform. Our new platform connects shippers with independent trucking organizations, and since launch the Company has entered into agreements with two major shipping conglomerates. These agreements not only strengthen our relationships with these businesses but, we anticipate, will lead to additional customers and strategic partnerships in the future."

"Sino-Global is confident that information and communication technologies can be adopted by traditional industries to meet contemporary supply and demand challenges, and in the months ahead we will continue the rollout of our inland transportation management, freight logistics and container trucking services; as well as foster strong relationships with our strategic partners and draw upon our technical abilities and in-depth industry knowledge to develop innovative value-added logistic solutions for our customers."

Fiscal Year 2017, Second Quarter Financial Review

The following table presents summary information by segment for the three months ended December 31, 2016 and 2015: