I was curious to see a few things in the SINO earnings report. The EPS is weak at only 0.01 for the qtr. It would have been half that except SINO benefitted from a positive currency-exchange rate. The co. really will have to keep down the costs and start realizing a better profit margin off those increased revenues. That's always the hope here with this co. Let's see if they can pull it off.
I only perused a few sections of the 10-Q a moment ago....
There's some "not so good" news in the form of the company diluting shareholders with another 660k shares given to mgmt and directors.
On the other hand, it looks like SINO will finally be getting next month those long awaited service revenues from the Perwaja Steel co. rehab project with SINO's related party Zhiyuan. Moreover, it's stated that SINO will be getting its advance monies back in Oct.
Here's from the 10-Q:
On February 18, 2017, Trans Pacific Beijing (subsidiary) and Sino China (VIE) (collectively, the “Seller”), a subsidiary and VIE of the Company, entered into a Cooperative Transportation Agreement (the “Agreement”) with Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd. (the “Buyer” or “Zhiyuan Hong Kong”). Mr. Zhang is the largest shareholder of the Company and has also invested in the Buyer. Pursuant to the Agreement, the Buyer, jointly with China Minmetals Corporation and China Metallurgical Group Corporation, acts as the general designer, general equipment provider and general service contractor in the upgrade and renovation project of Perwaja Steel Indonesia, which is located in Malaysia (the “Project”). The Seller shall be appointed as general agent to handle related logistics and transportation occurring in the Project and in return the Company will receive a 1% to 1.25% fee incurred as a commission for its services rendered. On July 7, 2017, the Company signed a supplemental agreement, pursuant to which the Company will cooperate with Zhiyuan Hong Kong exclusively on the Project’s transportation needs with respect to transporting construction materials from manufacturers to the port of Malaysia and to the factory site. The Company will complete its services pursuant to the supplemental agreement and will receive approval from Zhiyuan Hong Kong that the related services fees will be earned by June 2018. The Company also expects the entire advance will be collected by October 2018.
Note 16. SUBSEQUENT EVENTS
On May 4, 2018, the Company's board approved issuance of 660,000 shares of its common stock under the 2014 Stock Incentive Plan to its management team and the Board of directors. These shares are vested immediately and are valued at $1.15 per share on grant date with a total fair value of $759,000
