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    Simplifying the Shipping Process

    Investor Presentation

    v. 2008-06-24

    October 2008

  • Safe Harbor

    In this presentation, we make estimates and forward-looking statements that are the current beliefs and opinions of certain members of Sino-Global management. These statements are indicated by such terms as plans to, preliminary, goal,will, believe, targeting, expect, anticipate, intendand likely. They may include statements regarding future revenues or expenses, earnings and operations, as well as statements regarding demand for the companys services and the companys ability to achieve its targets, goals and initiatives. We can give no assurance regarding the achievement of these forward-looking statements, as they are only estimates, and the actual outcomes may be significantly different. Additionally, weexpect that these forward-looking statements will change in the normal course of our business, and management specifically disclaims any obligation to update forward-looking statements that we may make in todays presentation.

    Please refer to the sections captioned Forward Looking Statements and Risk Factors in Sino-Globals Form 10-KSB, September 29, 2008.

  • Who We Are

    We are a leading, non-state-owned provider of high-quality shipping services registered in the United States in 2001

    and operating primarily in China.

  • History Registered in the United States in 2001

    IPO on NASDAQ Capital Market in May 2008


    A leading, non-state-owned shipping agency

    Operating in the United States, Mainland China, Hong Kong and Australia

    Providing high-quality shipping agency services surrounding the entire shipping process, into, within, and away from Chinas ports

    ISO9000 and UKAS certified in recognition of the quality of our services


    Head Office in New York, U.S.A.

    Operational headquarters in Beijing, China

    Subsidiaries in Perth, Australia and Hong Kong, China

    Local branches in six of Chinas 76 ports and contractual arrangements in all those where we do not have branch offices

    Key Financial Data

    For the years ended June 30, 2007 June 30, 2008

    Revenues $10.09 million $15.1 mil

    Net income $1.04 million $0.1 mil

    Company Overview

  • Our Services

    Intelligence and Analysis Conduct analysis surrounding prospective shipments, including timely weather reports and port information that help clients realize efficient and economical shipping solutions

    Leverage our extensive network and strong market position to negotiate competitive rates with local ports for husbanding, unloading, and loading our clients vessels

    Audit port bills for unreasonable charges that violate regulatory guidelines, helping our clients remain competitive

    On-the-ground Execution and Support Handle paperwork to avoid duplicative layers of administration

    Coordinate with port authorities to manage customs processes as well as oversee and settle cargo claims

    Provide strategic recommendations for complementary services such as trucking and warehousing

    Work with vessels of all sizes and types and accommodate diverseshipping requirements

  • Port Services Network

    Offices in six Chinese ports: Fangchenggang, Ningbo, Qingdao, Qinhuangdao, Tianjin and Zhoushan

    Contractual arrangements in other 70 ports in Mainland China

    Subsidiaries in Perth, Australia and Hong Kong, China

    Able to offer a consistently high level of service under the Sino-Global brand in all Mainland Chinese ports, as well as Hong Kong and Western Australia

    Port Branches

    Operational headquarters







    Hong Kong


  • AustraliaChina Service

    Subsidiary in Perth, Western


    Contractual arrangement with

    leading Australian agency bringing

    greater number of ships serviced in


    Service Western Australias busiest

    ports including Dampier, Hedland

    and Walcott

    Enhance service to existing clients,

    especially those operating in the

    steel industry

    Attract new business opportunities

    145 million tons (36%) of the 400 million tons of iron ore imported into China in 2007 originated in Western Australia*

    *Source: China Customs

  • Our Strengths

    Ability to offer a consistent level of service in each of Mainland

    Chinas 76 commercial ports as well as Hong Kong and Western


    Quality of services provided to customers

    Strength of information management system

    Strength of personnel and administration

    Reputation for reliability and responsiveness to customer requests

    Low-cost expansion strategy

    Ideally positioned between two large, state-owned competitors

    and over 1,400 small agencies with limited reach and funding

    Positive relationships with third parties in local ports

    ISO9001 and UKAS certified to recognize the quality and

    efficiency of our services

  • Our Opportunity

    Early mover advantage

    Favorable macro environment

    Highly fragmented market

    Room for significant consolidation

  • Industry History

    1953: PRC nationalizes all foreign shipping interests and forms a state-owned shipping agency with 100% market share.

    1985: PRC reforms industry and introduces a second state-owned shipping agency.

    1990: PRC adopts the International Ship Agency Management and Stipulation which allows state-owned companies to compete in the shipping agency industry.

    2001: Sino-Global founded under the name Sino-Global Shipping Consulting Ltd. with subsequent name change to Sino-Global Shipping Agency, Ltd.

    2002: Further reforms allow private entities and joint ventures between Chinese and foreign entities to compete in the shipping agency industry.

    2002 & 2003: The Chinese and American Marine Transportation Agreement (2003) and the New Round Chinese and European Union Marine Transportation Agreement (2002) are signed, allowing shipping transportation enterprises that are wholly owned by American and European Union businesses, respectively, to provide shipping agency service for their parent companies.

    2008: Sino-Global lists on NASDAQ Capital Market under ticker: SINO.

  • Industry Growth

    *Source: China Statistical Yearbook 2007






    2002 2003 2004 2005 2006


    Volume of Freight Handled in Coastal Ports*

    CAGR =







    2002 2003 2004 2005 2006



    Total Value of Imports & Exports*


    = 29.8


    The shipping industry in China is expanding rapidly in line with the growing Chinese economy

  • Our Strategy

    Attract, motivate and retain top talent

    Expand internationally through contractual arrangements with leading local agencies

    Establish local branches in additional ports in China

    Increase our market share through acquisition of smaller competitors in a highly fragmented market

    React quickly to opportunities to offer new services to our clients

    Maintain working relationships with third parties in port cities

    Increase profile of United States operations

  • Organic Growth Opportunity

    Industry opened to private competition in 2003, before which two state-owned shipping agencies held a duopoly

    More than 1,400 small agencies now compete as well

    Our advantage:

    With approximately 1% market share in 2006, we believe we are ideally positioned to begin consolidating the small agencies while competing with the two large, state-owned competitors on quality of service

  • Acquisition Opportunities

    A highly fragmented industry and strong cash position creates opportunity to acquire peers and expand our market share. We make acquisitions with the following goals:

    Acquire top talent and experience

    Expand our operations in Chinas 76 ports

    Obtain local knowledge and contacts

    Expand and differentiate our service offering

  • Our Clients

    Two of our key clients are: Beijing Shou Rong Forwarding Service Co., Ltd, an affiliate of

    Capital Steel, providing services for all iron ore shipments into China.

    Jardine Shipping Agencies (Hong Kong) Ltd, a shipping service provider and key representative of BHP Billiton Iron Ore Pty Ltd, one of the worlds largest iron ore providers based in Australia

    We provide shipping agency services to clients from eight different countries Australia, Greece, Hong Kong, Italy, Norway, South Korea,

    Switzerland, Thailand and the United States of America

  • Iron Ore Imports

    Iron ore shipments provide the majority of Sino-Globals revenue

    Iron ore is a key resource supplied to China by sea

    Strong future demand means strong revenue growth for Sino-Global

    Chinese Iron Ore Imports*






    2002 2003 2004 2005 2006 2007



    007 CA

    GR = 2


    China is currently the worlds largest consumer of Iron Ore*

    *Source: China Customs

  • Strong Top Line Growth




    2006* 2007* 2008*

    US$ M



    Net Income




    2006* 2007* 2008*US$ THOUSANDS

    *Full year numbers are from July 1 until June 30

    2008 net income includes costs associate