Sino-Global Announces 2018 Year End Financial Results

Highlighted by Progress in New Business Initiatives and Reinvestment

ROSLYN,N.Y.,Sept. 28,2018 -- Sino-Global Shipping America,Ltd. (NASDAQ: SINO) ("Sino-Global",the "Company","our","we" or "us"),a logistics integrated solutions provider engaged in non-asset based global shipping,freight logistics,and inland transportation management and related services,announced its financial and operating results for the fourth quarter of the fiscal year 2018 and year ended June 30,2018. The Company has also provided extensive information on its annual report on Form 10-K filed this morning with the U.S. Securities and Exchange Commission. Management encourages investors to review this filing for more details of the Company's financial results for the fiscal year 2018,background on Sino-Global's business and history,as well as Company strategy for the coming fiscal year.

Management Comments- Highlights in Fiscal 2018

Mr. Lei Cao,Chairman and Chief Executive Officer of Sino-Global commented,"We made tremendous progress this year in our freight logistics,bulk cargo container and container trucking services while spending much of this year investing in our business.These highlights include:

Reinvesting in our Business: Since our change in business focus to a asset-light online logistics platform we have made great strides towards integrating our business relationships in China with opportunities in the United States,with revenues increasing substantially since this change in model. Going forward,we know that in order to maintain an advantage we needed to expand our technical capabilities. We invested in an upgraded IT facility in Shanghai that will help facilitate a larger base of revenues.

Broadening our Global Base of Customers and Shipments: In fiscal 2018,we coordinated the shipment of a vast array of materials from China to ports in Australia and the United States by utilizing our long-term relationships to connect shippers to our online platform. This included an increase in sales to major customers shipping minerals and coals between Australia and China.

New Joint Venture Agreement: In September 2018,we entered into a co-operation agreement with Ningbo Far-East Universal Shipping Agency Co.,Ltd ("Ningbo Far-East") to set up a joint venture in Hong Kong to engage in worldwide shipping agency and management business. The Company shall have 51% ownership in the joint venture. Ningbo Far-East is one of the top ranking shipping agencies for private enterprises in the Ningbo and Zhoushan ports. We are very pleased with the potential of this joint venture,as it provides further diversification in our customer base without any significant overlap. We are one of the few shipping agents specialized in providing a full range of general shipping agency services in China and the only shipping agency company listed on a major stock exchange in the U.S. compared to the other,much smaller,shipping agencies in China. The setup of Sino Ningbo allows us to use our resources such as our customer base,our IT infrastructure currently under development and our business insight to build a global network of shipping agencies.

Development of Online Platform: In fiscal 2018,we continued to further the development of our online platform,which helps to bridge the gap between global shippers from China and other countries such as Australia and the United States. With the signing of a strategic cooperation agreement with COSCO Beijing,we are able to take advantage of the low container rate to jointly promote bulk cargo container transportation.

Seeking "Reverse" Logistics Opportunities from the U.S. to China: We also are continuing to take advantage of export opportunities,as we shipped 140 containers totaling 18 tons per container of sulfur from Long Beach,CA in the U.S. to our customers in China. With these shipments we coordinated with the customers to sign the purchase contract with sulfur suppliers in the United States; organized the container shipping,obtained customs clearance,and arranged for the product to be shipped to the customer's designated port.

Overall,we feel that the Company has properly positioned itself to take advantage of a growing revenue opportunity.As we move forward into fiscal 2019,we are focused on leveraging our growing infrastructure to improve operating margins and the bottom line.We expect to provide an updated shareholder letter at the end of November to outline our growth strategy in calendar 2019."

Fiscal Year 2018 Fourth Quarter Financial Review

Total revenues increased by 57.1% to approximately $7.3 million for the three month period ending June 30,2018,which compared to $4.6 million in the year ending June 30,2017. This increase was due to the Company's business development efforts in freight logistics,container trucking and inland transportation management segments.

The Company's gross profit for the period was $2.1 million,compared to $1.4 million in the prior year period. Gross profit margin during the period was 29.2% which remain consistent compared to 31.0% for the same period last year.

The operating loss for the three months ended June 30,2018 was $0.7 million,compared to an operating income of $0.47 million for the year ended June 30,2017. The decrease in operating income was mainly due to increases in selling,general and administrative expenses (SG&A),largely due to stock compensation being awarded in the fourth quarter of 2018.

For the three months ended June 30,the Company reported a net loss of $0.8 million,or $(0.06) per diluted share based on weighted average shares outstanding of 12,864,913,compared to a net income of $0.8 million,or $0.07 per diluted share based on weighted average shares outstanding of 10,152,685,for the same period in prior year. The decrease was largely due to a $1.1 million income tax expense during the period compared to a $0.3 million income tax benefit in the prior year period.

Fiscal Year 2018 Financial Review

Total revenues increased by approximately 101.5% to $23.1 million during the year,compared to $11.4 million in the prior fiscal year. This increase was due to the Company's efforts to diversify its business resulting in a significant increase in revenues from the freight logistic services.

The Company's gross profit for the 2018 fiscal year was $7.5 million,compared to $6.5 million in the prior fiscal year. Gross profit margin during the year decreased to 32.4% from 56.5%,which was largely attributed to a greater portion of revenues coming from the rapidly growing freight logistic services segment. For the fiscal year ended June 30,the Company performed logistics services for one customer on a fragmented scope,as compared to the full range of services (with a corresponding higher margin) that it expects in the future.

The following tables present summary information by segment for the years ended June 30,2018 and 2017:

Forthe year endedJune 30,2018

Inland

Transportation

Management

Services

Freight

Logistics

Services

Container

Trucking

Services

Bulk Cargo

Container

Services

Total

Revenues

- Related party

$

2,059,406

$

-

$

-

$

-

$

2,406

- Third parties

$

3,441,001

$

15,829,444

$

1,096,485

$

638,227

$

21,005,157

Total

$

5,500,407

$

15,227

$

23,064,563

Cost of revenues

$

874,760

$

13,519,486

$

696,998

$

494,449

$

15,585,693

Gross profit

$

4,625,647

$

2,309,958

$

399,487

$

143,778

$

7,478,870

Depreciation and amortization

$

72,954

$

1,902

$

20,063

$

-

$

94,919

Total capital expenditures

$

-

$

778,182

$

44,595

$

-

$

822,777

Gross profit margin

84.1%

14.6%

36.4%

22.5%

32.4%

Forthe year endedJune 30,2017

Inland

Transportation

Management

Services

Freight

Logistics

Services

Container

Trucking

Services

Bulk Cargo

Container

Services

Total

Revenues

- Related party

$

2,746,423

$

-

$

-

$

-

$

2,423

- Third parties

$

3,012,177

$

4,815,450

$

871,563

$

-

$

8,699,190

Total revenues

$

5,758,600

$

4,563

$

-

$

11,445,613

Cost of revenues

$

620,259

$

3,710,364

$

649,968

$

-

$

4,980,591

Gross profit

$

5,138,341

$

1,105,086

$

221,595

$

-

$

6,465,022

Depreciation and amortization

$

27,857

$

21,510

$

-

$

-

$

49,367

Total capital expenditures

$

61,359

$

1,053

$

-

$

-

$

62,412

Gross profit margin

89.2%

22.9%

25.4%

-

56.5%

Operating income for the year ended June 30,2018 was approximately $0.8 million,compared to an operating income of $3.1 million in the prior year. As discussed above,the decrease was mainly due to increased costs of revenue and selling,general and administrative expenses. General and administrative expenses as a percentage of revenue remained consistent at 26.9% and 27.5% for the years ended June 30,2018 and 2017,respectively.

For the fiscal year ended June 30,the Company reported a net income of $0.5 million,or $0.04 per diluted share based on 12.0 million weighted average shares outstanding,compared to net income of $3.6 million,or $0.41 per diluted share based on 8.9 million weighted average shares outstanding,for the prior year.

Balance Sheet Information

As of June 30,the Company had $7.1 million in cash and cash equivalents,working capital of $17.2 million and shareholder equity of $24.3 million; compared to $8.7 million,$13.7 million,and $19.5 million,respectively,as of June 30,2017.

The Company's allowance for doubtful accounts was $1.7 million in 2018 compared with an allowance of doubtful accounts of $185,821 in 2017. As we continue to maintain long-standing relationships with our customers,we are continuing to monitor their payments closely and do not believe there are any significant collection issues with respect to our trade accounts receivable.

The Company holds no long-term debt.

About Sino-Global Shipping America,Ltd.

Founded in the United States in 2001,Sino-Global Shipping America,Ltd. is a company engaged in shipping,chartering,logistics and related business services. Headquartered in New York,Sino-Global has offices in mainland China,Australia,Canada and Hong Kong. The Company's current service offerings consist of inland transportation management,freight logistics and container trucking services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.com. The Company routinely posts important information on its website.

Forward Looking Statements

No statement made in this press release should be interpreted as an offer to sell or a solicitation of an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933,as amended,and applicable state securities laws. Any statements contained in this release that relate to future plans,events or performance are forward-looking statements that involve risks and uncertainties as identified in Sino-Global's filings with the U.S. Securities and Exchange Commission. Actual results,events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of the date hereof. Sino-Global undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events unless required by applicable law or regulations.

Contact Information

The Equity Group Inc.

Adam Prior

Senior Vice-President

(212)-836-9606 / aprior@equityny.com

SINO-GLOBAL SHIPPING AMERICA,LTD. AND AFFILIATES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended

June 30,

For the Year Ended

June 30,

2018

2017

2018

2017

Net revenues - third parties

$

6,825,901

$

4,107,809

$

21,157

$

8,190

Net revenues - related party

438,000

517,243

2,406

2,423

Total revenues

7,263,901

4,052

23,563

11,613

Cost of revenues

(5,462)

(3,191,243)

(15,693)

(4,591)

Gross profit

2,125,439

1,433,809

7,870

6,022

General and administrative expenses

(2,134,670)

(903,697)

(6,202,555)

(3,336)

Selling expenses

(65,076)

(58,075)

(458,166)

(211,504)

Total operating expenses

(2,199,746)

(961,772)

(6,660,721)

(3,363,840)

Operating income

(74,307)

472,037

818,149

3,101,182

Financial income,net

(313,227)

88,015

79,502

30,278

Other income,net

575,115

575,115

-

Total other income

261,888

88,015

654,617

30,278

Net incomebefore provision for income taxes

187,581

560,052

1,472,766

3,131,460

Income tax benefit (expense)

(1,008,256)

313,900

(949,659)

472,084

Net income (loss)

(820,675)

873,952

523,107

3,603,544

Net income (loss) attributable to non-controlling interest

(279,880)

82,735

64,056

(21,348)

Net income (loss) attributable to Sino-Global Shipping America,Ltd.

$

(540,795)

$

791,217

$

459,051

$

3,624,892

Comprehensive income (loss)

Net income

$

(820,675)

$

873,952

$

523,107

$

3,544

Foreign currency translation income (loss)

(243,782)

40,270

65,981

(73,741)

Comprehensive income

(1,457)

914,222

589,088

3,529,803

Less: Comprehensive income (loss) attributable to non-controlling interest

(104,270)

(33,866)

(12,120)

38,568

Comprehensive income (loss) attributable to Sino-Global Shipping America

Ltd.

$

(960,187)

$

880,356

$

601,208

$

3,491,235

Earnings per share

-Basic

$

(0.06)

$

0.07

$

0.04

$

0.41

-Diluted

$

(0.06)

$

0.07

$

0.04

$

0.41

Weighted average number of common shares used in computation

-Basic

12,856,194

10,535

11,037,343

8,911,494

-Diluted

12,913

10,685

12,023,036

8,949,960

SINO-GLOBAL SHIPPING AMERICA,LTD. AND AFFILIATES

CONSOLIDATED BALANCE SHEETS

June 30,

June 30,

2018

2017

Assets

Current assets

Cash and cash equivalents

$

7,098,259

$

8,733,742

Accounts receivable,less allowance for doubtful accounts of $1,682,228 and $185,821 as of June 30,2018

and2017,respectively

8,428,853

2,569,141

Other receivables,less allowance for doubtful accounts of $145,176 and $145,244 as of June 30,

respectively

69,239

37,811

Advances to suppliers-third parties

2,144,985

54,890

Advances to suppliers-related party

3,414,619

3,333,038

Prepaid expense and other current assets

588,439

311,136

Due from related party

2,087,994

1,715,130

Total Current Assets

23,832,388

16,754,888

Property and equipment,net

956,429

187,373

Intangible assets,net

153,056

-

Prepaid expenses

438,151

6,882

Other long-term assets- deposits

143,303

117,478

Deferred tax assets,net

634,500

749,400

Total Assets

$

26,157,827

$

17,816,021

Liabilities and Equity

Current Liabilities

Advances from customers

$

415,385

$

369,717

Accounts payable

3,225,661

206,211

Taxes payable

2,700,619

1,886,216

Due to related parties

-

206,323

Accrued expenses and other current liabilities

280,888

418,029

Total Current Liabilities

6,622,553

3,086,496

Total Liabilities

6,496

Commitments and Contingencies

Equity

Preferred stock,2,000,000 shares authorized,no par value,none issued.

-

-

Common stock,50,no par value; 13,271,032 and 10,281,032 shares issued as of June

30,respectively; 13,095,535 and 10,535 outstanding as of June 30,

respectively

23,717,330

20,535,379

Additional paid-in capital

1,755,573

688,934

Treasury stock,at cost,175,497 sharesas of June 30,2018 and2017

(417,538)

(417,538)

Accumulated deficit

(434,856)

(893,907)

Accumulated other comprehensive loss

(272,407)

(414,564)

Total Sino-Global Shipping America Ltd. Stockholders' Equity

24,348,102

19,498,304

Non-controlling Interest

(4,812,828)

(4,768,779)

Total Equity

19,274

14,729,525

Total Liabilities and Equity

$

26,021

SINO-GLOBAL SHIPPING AMERICA,LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended

June 30,

2018

2017

Operating Activities

Net income

$

523,544

Adjustment to reconcile net income to net cash provided by (used in) operating activities:

Stock-based compensation – employees,management and directors

1,032,000

-

Amortization of stock-based compensation - consultants

621,834

599,846

Amortization of stock option expense

9,665

110,195

Depreciation and amortization

94,919

49,367

Provision for (recovery of) doubtful accounts

1,726,599

(18,912)

Deferred tax provision (benefit)

114,900

(749,400)

Changes in assets and liabilities

Increase in accounts receivable

(7,421,179)

(260,165)

Decrease (increase) in other receivables

(31,328)

249,768

Decrease(increase) in advances to suppliers-third parties

(662,144)

2,085,281

Increase in advances to suppliers-related party

-

(3,317,382)

Decrease (increase) in prepaid expenses

(280,627)

143,796

Increase in other long-term assets

(470,319)

(70,806)

Increase in due from related parties

(604,863)

(117,772)

Increasein advances from customers

38,174

343,790

Increase (decrease) in accounts payable

3,257

(272,474)

Increase in taxes payable

754,512

278,288

Increase (decrease) in due to related parties

(206,323)

206,323

Increase (decrease)in accrued expenses and other current liabilities

(110,836)

131,483

Net cash provided by (used in) operating activities

(1,807,652)

2,994,770

Investing Activities

Acquisition of property and equipment

(822,777)

(62,412)

Acquisition of intangible assets

(190,000)

-

Prepayment for acquisition of intangible assets

(1,440,107)

-

Net cash used in investing activities

(2,452,884)

(62,412)

Financing Activities

Proceeds from issuance of common stock,net

2,091

4,319,988

Proceeds from exercise of stock options

-

82,500

Net cash provided by financing activities

2,402,488

Effect of exchange rate fluctuations on cash and cash equivalents

39,962

12,902

Netincrease (decrease) in cash and cash equivalents

(1,635,483)

7,347,748

Cash and cash equivalents at beginning of year

8,742

1,385,994

Cash and cash equivalents at end of year

$

7,742

Supplemental information

Income taxes paid

$

68,268

$

89,324

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