Sino-Global Shipping America Q3 revenues down drastically
Topics: SINO-GLOBAL SHIPPING AMERICA
The Company reported total revenues of $1,353,979 for the quarter ended March 31, 2020, compared to $22,773,139 reported in the same period last year.
The decrease was largely due to the fact that in certain freight logistics contracts that the Company entered into with customers starting from the first quarter of fiscal year 2020, only acted as an agent and did not control the services rendered to the customers, as Sino-Global was not the primary responsible party to fulfill the services.
As such revenues on these contracts are accounted for on a net basis.
The decrease was also due to the decrease in revenues from inland transportation management services as service contracts with customers have expired and there was no new business for this segment.
The Company's gross profit for the 2020 fiscal third quarter was $464,872, compared to $1,697,944 in the same period last year.
Gross profit margin during the quarter was approximately 34.3%, compared to approximately 7.5% in the same period last year.
The increase was largely due to the Company's shifting of business focus towards its agency business for providing freight logistics services where the Company acted solely as an agent and did not control the services rendered to its customers. ■