Sino-Global Shipping America revenues increased 81.1%
Topics: SINO-GLOBAL SHIPPING AMERICA
Total revenues increased approximately 81.1% to approximately $41.8 million during the year, compared to approximately $23.1 million in the prior fiscal year.
This increase was due to Sino-Global Shipping America's continuing efforts to diversify its business perspectives, resulting in the rise in revenues generated from its freight logistics services segment.
Freight logistics services consist primarily of cargo forwarding, brokerage and other freight services in China.
In the second quarter of 2019, Sino-Global Shipping America decided to transition back into the shipping agency business, because it now has an integrated online logistics platform that allows it to handle a wider base of customers in China and other ports of the world.
For the years ended June 30, 2019 and 2018, shipping agency services generated revenues of $2,093,680 and $0, respectively, and gross profit of $199,348 and $0, respectively, representing a 100.0% increase in both revenues and gross profit.
The increase of revenue in the shipping agency services segment was due to the increase in the total number of ships Sino-Global Shipping America served.
For the year ended June 30, 2019, Sino-Global Shipping America served 57 ships.
The Company's gross profit for the 2019 fiscal year was approximately $5.8 million, compared to approximately $7.5 million in the prior fiscal year.
Gross profit margin during the year decreased to approximately 13.8% from approximately 32.4%, which was largely attributed to a greater portion of revenues coming from providing freight logistics services and shipping agency business with relative low gross profit margins.
Gross profit margin decreased as a result of significiantly increased cost of revenues, mainly from the freight logistics services segment due to an increase in freight cost of carriers resulting from the increase in shipping volume. ■