Sino-Global Shipping America, a non-state-owned provider of shipping agency services operating primarily in China, has posted a net loss of US$400,000 for its first fiscal quarter of 2009, compared to net income of $200,000 in the same period last year.
Revenues for the quarter were $5.1 million, an increase of 27.9 percent over the same period last year. Operating loss was $500,000, compared to operating income of $300,000 for the same period last year.
The fluctuating value of the Renminbi against the US dollar negatively impacted gross margins in the first quarter of 2009. Costs of services increased faster than revenues, which was largely due to the depreciation of the US dollar against the Renminbi in the same period, from RMB7.5108 to US$1.00 in 2007 to RMB6.8183 and US$1.00 in 2008, respectively, representing a 7.85% increase of the Renminbi against US dollar over the year.
On July 3 of this year, Sino-Global established Sino-Global Australia, a wholly-owned operating subsidiary in Perth, Australia.
Further, Sino-Global signed an agency agreement with Monson Agencies Australia. Under the agreement, both agencies will provide shipping agency services to each other's clients under their respective brands in both Chinese and Australian ports.
On September 22, Sino-Global incorporated its second wholly-owned operating subsidiary outside of Mainland China. Sino-Global Shipping HK will become Sino-Global's control and management centre for southern Chinese ports.
Sino-Global maintains its full year 2009 guidance with revenues expected to be in the range of $22.6 million to $24.9 million, representing annual growth of 50 percent to 65 percent over 2008.
Revenues for the quarter were $5.1 million, an increase of 27.9 percent over the same period last year. Operating loss was $500,000, compared to operating income of $300,000 for the same period last year.
The fluctuating value of the Renminbi against the US dollar negatively impacted gross margins in the first quarter of 2009. Costs of services increased faster than revenues, which was largely due to the depreciation of the US dollar against the Renminbi in the same period, from RMB7.5108 to US$1.00 in 2007 to RMB6.8183 and US$1.00 in 2008, respectively, representing a 7.85% increase of the Renminbi against US dollar over the year.
On July 3 of this year, Sino-Global established Sino-Global Australia, a wholly-owned operating subsidiary in Perth, Australia.
Further, Sino-Global signed an agency agreement with Monson Agencies Australia. Under the agreement, both agencies will provide shipping agency services to each other's clients under their respective brands in both Chinese and Australian ports.
On September 22, Sino-Global incorporated its second wholly-owned operating subsidiary outside of Mainland China. Sino-Global Shipping HK will become Sino-Global's control and management centre for southern Chinese ports.
Sino-Global maintains its full year 2009 guidance with revenues expected to be in the range of $22.6 million to $24.9 million, representing annual growth of 50 percent to 65 percent over 2008.