Sino-Global Shipping America, Ltd. (NASDAQ:SINO) released its financial report 2Q2017 closed December 31, 2016. The firm has also offered extensive information on its performance on Form 10-Q filed with the U.S. SEC. It encourages shareholders to review this document to get more details of the firm’s comprehensive performance, its background and strategy for the coming year.
The details
Sino-Global reported that its total revenue jumped over 33% to $2.1 million, as against $1.6 million in the same period, a year earlier. This increase was mainly the result of shift in their business mix, which comprised increases in revenues recorded for the firm’s inland transportation management services, container trucking services and freight logistic services.
Gross profit margin for 2Q2017 surged to 83.5% from 55.7%, mainly due to the firm’s shift in focus towards improved margin logistics services. In 2Q2017, net income amounted to $0.8 million as against a net loss of $1.6 million in 2Q2016.
EPS surged 161.1% to $0.11 in the reported period. At close of December 2016, the firm recorded cash/cash equivalents of $3.3 million, working capital of $7.7 million, shareholder equity of $12.8 million and accounts receivable of $1.8 million compared to $1.4 million, $6.2 million, $11.4 million and $2.3 million, respectively, as of close of June 2016. The firm has no long-term debt.
Mr. Lei Cao, the CEO and Chairman of Sino-Global, reported that they recorded a strong quarter with a jump in total revenue of 33%. This jump was mainly the result of a shift in their business services mix, container trucking services and freight logistics services. The shift in services was initially implemented last year in anticipation to worsening market in the shipping industry. As an outcome of this change in existing business model, the firm recorded higher profit margins and it is now better prepared to address the needs of expanding and evolving customer base.
