Sino-Global Shipping America, Ltd., a non-asset based global shipping and freight logistic integrated solution provider, today announced the signing of General Agency Service Agreement (the “Agreement”) to provide comprehensive shipping agency services with Mandarine Bulk Ltd, a ship owner and operator company registered in Marshall Islands. The Agreement began on June 1, 2020 and is valid for two years, with initial revenues from the agreement beginning in the Company’s current fourth quarter. As previously disclosed, the Company has entered into a purchase agreement with Mr. Kelin Wu, the controller of Mandarine Bulk Ltd, under which the Company will purchase 75% of the equity of Mandarine Ocean Ltd from Mr. Wu.
Pursuance to the Agreement, Mandarine Bulk has appointed Sino-Global as the Sole General Shipping Agency for all its owned and operated ships with services including ship management services, shipping agency services, ship brokerage services and other services required for ship operation. Sino-Global anticipates annualized revenue to the Company of approximately $12.0 million. In the last six weeks, the Company has signed separate shipping services agreements that it expects will add $19.0 million in revenue on an annualized basis.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, “Throughout the past year, we have worked diligently to continue building a solid customer base that can lead to favorable top-line growth as we transitioned into providing shipping agency services globally. We are very pleased with the progress our Company has made, and this agreement is evidence of our ability to scale our agency services despite challenging operating conditions brought about by U.S. / China trade relations and then the COVID-19 pandemic. In 2020, we strengthened our management team and have utilized our relationships in the U.S. and China to secure agency contracts that we expect will add approximately $19.0 million in revenue from what we expect to be stable, long-term customers. Mandarine Bulk is predominantly focused on operating its own and chartered ships for global transportation of drybulk commodities among major ports. We expect to utilize this agency relationship to continue building out our platform of global logistics solutions.”