Company to Act as Procurement Agent in Supporting Necessary Exporting Business Under the U.S.-China Trade Agreement
ROSLYN, N.Y., June 25, 2020 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "we"), a non-asset based global shipping and freight logistic integrated solution provider, today announced that it has signed a Non-Binding Memorandum Of Understanding ("MOU") with Yunnan Jingyifeng Supply Chain Management Co Ltd ("JYF") to jointly develop the business of exporting products to China. These products include sulphur, vegetable oil, soybean, barley, wheat, and dried grains with solubles, which are used for fuel production, feeding, and other agriculture needs.
The Company has seen a considerable increase in export demand following the January 15, 2020 signing of the U.S.-China Phase 1 deal, which included China's commitment to purchase $200 billion of U.S. products over the next two years. These products include fertilizer raw materials such as sulfuric acid, phosphoric acid, ammonia and niche categories of sulfur, along with agricultural products.
Under the MOU, JYF aims to use Sino-Global's customer relationships and experience as a procurement agent in purchasing approximately 1,000,000 metric tons of these products per year, which will then be marketed to JYF's customers in South West China, including Guangxi, Yunnan, Guizhou and Sichuan provinces. The Company anticipates reporting an increase in agency-based trading revenue, with the current market prices ranging from $75 per ton for sulphur products to $400 per ton for soybean products. Sino-Global's revenue under similar types of arrangement typically ranges between 8-12% of the total amount.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "We are seeing a tremendous opportunity to leverage our shipping agency expertise and contacts with growing demand for exporting products to China under the requirements of Phase 1 of the U.S. / China trade deal. The U.S. has historically been a net importer of sulfuric acid and has not historically exported significant volumes to China, and the impact of COVID-19 has placed considerable pressure on China-based importers to expand and improve their supply chain network in order to meet the demands under the agreement. Sino-Global will provide a turnkey supply chain logistic service solution for JYF, which can then sell these products directly to Chinese clients. We have successfully worked with JYF in the past, and expect to pursue additional arrangements where Sino-Global can provide solutions to those importers that have been working diligently to secure raw materials and components and protect supply lines."
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 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 shipping agency services, shipping and chartering services, inland transportation management services and ship management services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. The Company routinely posts important information on its website.
About Yunnan Jingyifeng Supply Chain Management Co Ltd
Yunnan Jingyifeng Supply Chain Management Co Ltd pursues a business model which combines logistics management with trading. Its major focus on South West China includes sales across Guangxi, Yunnan, Guizhou and Sichuan provinces. JYF is involved in both international and domestic trading, consultation for supply chain management and coordinating multi-transportation solutions for the safe movement of vegetable oils, urea, ammonia nitrate, sulphur, sulphuric acid, phosphoric acid and fertilizers.
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.
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