Company Expects to Generate Approximately $10 Million Gross Revenue from The transaction
ROSLYN, N.Y., Feb. 5, 2018 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "we"), a non-asset based global shipping and freight logistics integrated solution provider, today announces the signing of a Purchase Agent Agreement (the "Purchase Order") with Chengdu Dingxu International Trade Ltd. ("Chengdu Dingxu"), a leading importer in the Sichuan province in China.
In November 2017, Sino-Global entered into an initial Strategic Collaboration Agreement with Sichuan Metals and Minerals IMP. & EXP. CORP ("SCMMC"), to conduct trial runs of the purchases and transport of approximately 2,400 metric tons or 120 containers of sulfur. The trial runs were successful and the original agreement marked the beginning of SCMMC's switch to containerization from the traditional bulk shipment of its products. Pursuant to the Purchase Order with Chengdu Dingxu, SCMMC will act as the sales agent with Sino-Global serving as the exclusive purchasing agent and logistics service provider of sulfur products in the United States for Chengdu Dingxu. The Company will be responsible for sourcing and the door to door transport of up to 100,000 metric tons, or approximately 5,000 containers of sulfur. Sino-Global expects to generate approximately $10 million in gross revenue (based on current market price) from the transaction and shipments are expected to begin in March 2018. The Purchase Order is set to expire, unless renewed, in December 2018.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "Sino-Global has worked with SCMMC in various capacities, and now, through our cooperation with Chengdu Dingxu, we have an opportunity yet again to fill a void and have all parties involved benefit. Approximately 90% of the containers shipped from the United States to China arrive empty. With this agreement, we are able to expand the utilization of containers over bulk shipments while securing these containers at a discounted price through our longstanding relationship with leading shipping conglomerate, COSCO. In addition to strengthening our relationship with COSCO, this agreement presents us with an opportunity to grow our short-haul trucking network. Meanwhile, still providing Chengdu Dingxu with the ease and peace of mind of handling all aspect of the purchase, shipment and transport of their sulfur supply in the U.S. We deliver a cost-effective door to door solution for the import/ export of products that are typically shipped in bulk. Sino-Global intends to continue to expand its partners globally in its effort to become a leading worldwide logistics service provider."
About Chengdu Dingxu International Trade LTD.
Chengdu Dingxu International Trade LTD. focuses on the import of raw materials such as sulfur, petroleum coke and chrome ore. Annually, Chengdu Dingxu sales reach over 800,000 tons of sulfur nationwide with its primary sulfur factory located in Qinzhou, Guangxi Province reaching capacity of 160,000 tons.
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 Los Angeles, 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 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 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 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 except as required by applicable securities regulations or rules.
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