Executive Summary

Q2 2020 revenue fell sharply to $2.02M from $10.52M in the prior-year quarter, but gross margin expanded to 62.6% versus 18.6% YoY, reflecting a strategic shift to agency accounting and mix changes .
Net loss narrowed to $0.41M ($0.02 per share) versus $1.47M ($0.11 per share) YoY and improved from Q1 2020’s $1.63M ($0.10 per share) as cost of revenues declined and stock-based compensation moderated .
Management emphasized focus on higher-margin agency services, shipping management expansion, and a new JV to provide supply chain logistics for U.S.-to-China agricultural shipments; they view coronavirus impacts and Chinese New Year seasonality as temporary .
Liquidity remains tight: cash declined to $0.12M with going-concern language and a Nasdaq minimum bid price compliance risk flagged (hearing scheduled for Feb 27, 2020), a potential stock reaction catalyst on listing outcomes .

What Went Well and What Went Wrong

What Went Well
- Gross margin improved to 62.6% due to agent presentation of certain freight logistics contracts and favorable service mix, materially lifting profitability quality despite lower revenue .
- Shipping agency/management showed strong unit economics with 86.7% segment gross margin in Q2 2020, supporting the strategic refocus on higher-margin agency offerings .
- Management executed a JV to serve as a full logistics provider for agricultural shipments from the U.S. to China: “We recently signed a joint-venture agreement to serve as a full logistics services provider for a leading agricultural company…” .
What Went Wrong
- Revenue down 80.8% YoY to $2.02M, driven by net reporting of agency contracts and expiration of inland transportation contracts; freight logistics revenues fell 83.3% YoY .
- Liquidity risk: cash fell to $0.12M; management disclosed substantial doubt about going concern given recurring losses and negative operating cash flow .
- Listing risk: Nasdaq notified the company of non-compliance with the minimum bid rule; delisting is stayed pending a hearing (Feb 27, 2020), elevating governance and market access concerns .

Financial Results

Metric	Q2 2019 (Dec 31, 2018)	Q1 2020 (Sep 30, 2019)	Q2 2020 (Dec 31, 2019)
Revenue ($USD Millions)	$10.515	$1.786	$2.021
Gross Profit ($USD Millions)	$1.959	$1.103	$1.265
Gross Margin %	18.6%	61.7%	62.6%
Operating Loss ($USD Millions)	$(1.179)	$(1.750)	$(0.333)
Net Loss ($USD Millions)	$(1.423)	$(1.749)	$(0.363)
Diluted EPS ($USD)	$(0.11)	$(0.10)	$(0.02)

Segment breakdown (Q2 2020 vs Q2 2019):

Segment	Revenue Q2 2019 ($USD)	Gross Profit Q2 2019 ($USD)	Revenue Q2 2020 ($USD)	Gross Profit Q2 2020 ($USD)
Shipping Agency & Management	$889,070	$80,030	$500,000	$433,416
Inland Transportation Mgmt	$420,000	$400,000	$0	$0
Freight Logistics Services	$8,978,923	$1,481,257	$1,503,500	$829,854
Container Trucking	$227,294	$(2,597)	$17,624	$2,209
Total	$10,515,287	$1,958,690	$2,021,124	$1,265,479

KPIs and balance sheet highlights:

KPI	Jun 30, 2019	Sep 30, 2019	Dec 31, 2019
Cash ($USD)	$3,142,650	$141,438	$119,667
Working Capital ($USD)	$10,705,929	~$9,400,000	$10,401,078
Accounts Receivable, net ($USD)	$7,045,846	$3,991,830	$4,330,551
Allowance for Doubtful Accts ($USD)	$5,670,274	$6,506,794	$6,861,694
Total Equity ($USD)	$15,359,770	$13,550,988	$14,435,947
Lease Liabilities (PV, total) ($USD)	—	—	$386,082

Notes:

For Q2 2020 freight logistics, gross revenues/costs under agent contracts were ~$12.9M/$12.0M; reported on a net basis, boosting headline margin while reducing reported revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2 2020	Not provided	Not provided	Maintained (no formal guidance)
Gross Margin	FY/Q2 2020	Not provided	Not provided	Maintained (no formal guidance)
OpEx / Tax rate / Segments	FY/Q2 2020	Not provided	Not provided	Maintained (no formal guidance)

Management did not issue quantitative guidance; commentary emphasized strategic focus shifts and JV initiatives, plus acknowledgment of temporary coronavirus disruptions .

Earnings Call Themes & Trends

No Q2 2020 earnings call transcript was found; themes synthesized from press releases and 10-Q.

Topic	Previous Mentions (Q-2: FY2019 PR; Q-1: Q1 2020 PR)	Current Period (Q2 2020)	Trend
Agency vs. Logistics mix	Transition back to shipping agency; leveraging tech and network	Emphasis on agency model and shipping management; 86.7% segment GM	Positive margin focus
Trade tensions/macros	“Challenging year due to intense U.S./China trade relations”	“Impacted by an uncertain trade climate”; Phase One completion supportive	Stabilizing cautiously
ERP/technology	ERP upgrades and platform as core enabler	ERP in use; IT spend reduced; no new tech guidance	Optimization, lower spend
New JVs/expansion	Set up shipping management JV; restructuring to Sea Continent	JV to provide logistics for U.S.-to-China agricultural shipments	Strategic diversification
Regulatory/listing	FY2019: no delisting mention	Nasdaq bid-price non-compliance; hearing scheduled	Elevated risk
COVID-19	Not applicable (pre-pandemic period)	Chinese New Year and coronavirus noted as temporary impacts	Near-term headwind

Management Commentary

“We shifted our focus towards higher margin and greater cash generating business while cultivating our business relationships to position Sino-Global for the future.”
“We recently signed a joint-venture agreement to serve as a full logistics services provider for a leading agricultural company…Sino-Global will provide comprehensive supply chain logistic services for agricultural products shipped from the U.S. to China.”
“While the fiscal third quarter was seasonally slow due to the Chinese New Year holiday and an impact from the Coronavirus outbreak, we believe it is only temporary…”

Q&A Highlights

No earnings call transcript available for Q2 2020; no Q&A to report [SearchDocuments: none returned].

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable at time of retrieval (request error/limit). As a result, no formal beat/miss analysis versus consensus can be provided; investors should focus on YoY and sequential comparisons until estimates become available [GetEstimates error].

Key Takeaways for Investors

Margin quality improved materially despite revenue compression; the agency model and mix changes drove gross margin to 62.6% versus 18.6% YoY, a meaningful positive for profitability trajectory even at lower scale .
Reported revenue declines reflect net presentation of agent contracts rather than necessarily reduced underlying activity; monitor disclosure on gross vs. net to assess true volume trends .
Liquidity is the acute risk: cash at $0.12M, going-concern language, and negative operating cash flow require near-term funding events or accelerated collections; watch proceeds from share sales and JV execution .
Regulatory overhang: Nasdaq minimum bid price non-compliance with a pending hearing is a potential binary catalyst; outcome can impact market access and investor base .
Strategic optionality: shipping management expansion and the agricultural logistics JV could diversify revenue sources and improve margins if executed; confirm contract ramps and certification-led service additions .
Concentration risk remains high (few customers comprise most AR); continued allowance build warrants scrutiny of collections and credit practices .
Near-term trading: stock likely sensitive to liquidity updates, delisting outcome, and any COVID-19 normalization signals; medium-term thesis hinges on sustaining high-margin agency/services while rebuilding scale .

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