SOURCE: Winland Online Shipping Holdings Corp.

August 17, 2009 09:31 ET

Winland Online Shipping Reports 2009 Second Quarter Results Continued to Be Impacted by Depressed Global Shipping Market

Losses Narrowed From First Quarter as Cost Management Measures Were Implemented

Company Says Shipping Portal Continued to Grow; Also Reports It Paid a Cash Deposit on a Handysize Vessel

DALIAN, THE PEOPLE'S REPUBLIC OF CHINA--(Marketwire - August 17, 2009) - Winland Online Shipping Holdings Corporation (OTCBB: WLOL), a PRC-based global shipping company which also owns and operates China's largest shipping website portal "Shipping Online" (www.sol.com.cn), announced today that depressed shipping activity induced by the global financial crisis continued to affect results in its second quarter and first six months ended June 30, 2009.

The Company reported that second quarter revenues in 2009 were $11,936,089, approximately $600,000 lower than in the first quarter this year, and approximately 52.2% lower than revenues in the second quarter last year of $24,961,972. The Company reported a net loss in the 2009 second quarter of $(1,079,423) or $(0.01) per share compared with net income in the same period last year of $7,224,566 or $0.07 per share representing a decline of 114.9%. The loss in the 2009 second quarter narrowed considerably, however, from the $(3,195,885) loss reported in the first quarter this year.

In the first six months of 2009 revenues declined 52.5% to $28,870,034 from $52,320,398 in the same period a year earlier. The net loss recorded in the first six months of 2009 was $(4,156,280) or $(0.03) per share, compared with net income of $14,088,105 or $0.13 per share in the first six months last year.

The Company said the significant decrease in revenue in the quarter and first half was due to the severity of the decline in the global shipping market as the effects of the global financial crisis and the economic recession have broadened and deepened since late 2008. The Baltic Dry Index, a leading indicator of the global dry bulk shipping market, dropped about 71% for the six months ended June 30, 2009 as compared with the same period of 2008.

According to Ms. Xue Ying, the Company's CEO, a bright spot in the first six months of the year was the continuing growth of the Company's online services. She commented, "We believe this growth reflected management's strategic decision to implement and market our shipping online portal, 'Shipping Online,' more aggressively. In our view this will position us very well in the industry when the worldwide recession begins to recede and we will continue to push forward to expand our market share."

She continued, "In June this year we also decided to initiate activity to add a new ship to our fleet and made a 10% cash deposit on a 2003 built handysize vessel with a $20.7 million purchase price. While the acquisition has not yet been completed, it is in line with our strategy of seeking to take advantage of current economic conditions to steadily expand our capacity to add to the size of our fleet of 13 vessels."

Commenting on the steps taken so far to face the challenges posed in the current difficult environment, Mr. Li Honglin, president and founder of the Company, stated, "We believe we have pursued and implemented successful initiatives to improve profitability by continuing to press ahead with implementing our online portal which has translated to sales increases. Additionally, we have implemented cost control strategies to cut vessel management and general management costs. At the same time, to strengthen our financial position we have been aggressive in collecting outstanding balances without negatively impacting customer relationships, which are of paramount importance. Additionally, we have obtained a short term credit line and are currently negotiating a longer term loan."

"Looking ahead," Mr. Li added, "we continue to expect to come through this economic storm with a larger, more diversified fleet and with our online and off-line international shipping and logistical services in an even stronger position and setting the pace for the maritime industry in China."

Company Description

Based in the port city of Dalian, in the People's Republic of China (The PRC), Winland Online Shipping Holdings Corporation is a global shipping company with a fleet of 13 Company-owned vessels, mainly in the handysize and MPP (Multi-Purpose Vessel) category, engaged in international bulk cargo transportation. The Company also owns and operates "Shipping Online" -- www.sol.com.cn -- which is China's largest shipping industry portal. Helping to transform the shipping industry in China, the site functions as not just an information provider, but as a business platform, providing on-line and off-line international shipping and logistics services, such as bulk cargo chartering, container booking, shipping agents, ship trading and building, spare parts supplies, crew recruitment as well as shipping news and data.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive services and products, pricing and new technology; changes in customer preferences and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of doing business, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

No securities regulatory authority has either approved or disapproved the contents of this news release.

               WINLAND ONLINE SHIPPING HOLDINGS CORPORATION
                (FORMERLY TRIP TECH, INC.) AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF
              INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

                        Three Months Ended           Six Months Ended
                             June 30,                    June 30,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
REVENUES            $ 11,936,089  $ 24,961,972  $ 24,870,034  $ 52,320,398

COSTS AND EXPENSES
Vessel operating
 expenses              9,843,113    13,375,442    21,543,075    29,772,896
Service costs            714,473     1,502,819     1,982,960     2,649,874
Depreciation and
 amortization          1,794,742     1,792,203     3,800,278     3,528,625
General and
 administrative
 expenses                634,857       721,063     1,345,055     1,443,336
Selling expenses          72,048             -       164,158             -
                    ------------  ------------  ------------  ------------
TOTAL COSTS AND
 EXPENSES             13,059,233    17,391,527    28,835,526    37,394,731

OTHER INCOME
 (EXPENSES)

Interest expense,
 net                     (43,478)     (160,523)      (91,726)     (361,360)
Other income
 (expense), net           92,433       (49,013)      (92,509)     (352,200)
                    ------------  ------------  ------------  ------------

(LOSS) INCOME FROM
 OPERATIONS BEFORE
 INCOME TAXES         (1,074,189)    7,360,909    (4,149,727)   14,212,107

INCOME TAX EXPENSE        (5,234)     (136,343)       (6,553)     (124,002)
                    ------------  ------------  ------------  ------------

NET (LOSS) INCOME     (1,079,423)    7,224,566    (4,156,280)   14,088,105
                    ------------  ------------  ------------  ------------

OTHER COMPREHENSIVE
 INCOME

Foreign currency
 translation gain
 (loss)                      492       126,511       (45,497)      308,045
                    ------------  ------------  ------------  ------------

COMPREHENSIVE
 (LOSS) INCOME      $ (1,078,931) $  7,351,077  $ (4,201,777) $ 14,396,150
                    ============  ============  ============  ============



               WINLAND ONLINE SHIPPING HOLDINGS CORPORATION
                (FORMERLY TRIP TECH, INC.) AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF
              INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
                                (UNAUDITED)

                          Three Months Ended          Six Months Ended
                               June 30,                    June 30,
                            2009       2008           2009         2008
                        -----------  -----------  -----------  ------------
Weighted average shares
 outstanding
  Basic                 130,000,000   106,925,000 130,000,000   106,925,000
                        ===========  ============ ===========  ============
  Diluted               130,000,000   106,925,000 130,000,000   106,925,000
                        ===========  ============ ===========  ============

Net (loss) income per
 share
  Basic                 $     (0.01) $       0.07 $     (0.03) $       0.13
                        ===========  ============ ===========  ============
  Diluted               $     (0.01) $       0.07 $     (0.03) $       0.13
                        ===========  ============ ===========  ============

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