312258--3/31/2009--SINO_SHIPPING_HOLDINGS

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Risk Factors Relating to the Shipping Industry Costs and revenues in the shipping industry are volatile. Our business depends to a significant degree on the stability and continued growth of the Asian economies. High or volatile oil prices could adversely affect the global economy and our results of operations. We operate in a highly competitive industry. We operate in a highly-regulated industry. Risk associated with the shipping industry could affect our business and reputation, which could adversely affect our results of operations and stock price. Marine claimants could arrest our vessels, which could interrupt our cash flow. Governments could requisition one or more of our vessels during a period of war or emergency, resulting in a loss of earnings. Risks Factors Relating to Our Business We depend upon a limited number of customers for a large part of our revenue. As our fleet ages, the risks associated with older vessels could adversely affect our operations. Vessel dry-dockings could adversely affect our cash flow and results of operations. Our vessels may suffer damage and we may need to unexpectedly dry-dock a vessel, which could adversely affect our operations. We may not be able to acquire additional vessels at favorable prices. The market value of vessels can and will fluctuate significantly. Our customers may default on their contractual obligations. Our insurance may be insufficient to cover the inherent operational risks associated with our business, and we may be unable to maintain our existing insurance coverage. We may experience fluctuations in our operating results. Acts of god, acts of war, terrorist attacks, epidemics and other events could adversely affect our business. We are exposed to currency and interest rate fluctuations. Our business depends substantially on the continuing efforts of our executive officers and our ability to maintain a skilled labor force, and our business may be severely disrupted if we lose their services. We may not be able to grow or to effectively manage our growth. All of our revenue is derived from operations outside the U.S. and may be adversely affected by actions taken by foreign governments or other forces or events over which we have no control. Risks Factors Relating to Our Company Yongchen s existing loan agreement currently imposes significant operating and financial restrictions on Yongchen. If Yongchen defaults under its loan agreement, it could forfeit its rights in Qiao Yin. Our limited operating history makes evaluation of our business difficult. Our principal stockholder owns a significant percentage of our stock and can exercise significant influence over our company. Risk Factors Related to Our Common Stock Our right to issue preferred stock and provisions of the Delaware General Corporation Law could adversely affect our stockholders or prevent or delay a change of control. Our stock price may be volatile, which may result in losses to our stockholders. We do not intend to pay cash dividends. The market for our common stock is not active. The OTC Bulletin Board is a quotation system, not an issuer listing service, market or exchange. Therefore, buying and selling stock on the OTC Bulletin Board is not as efficient as buying and selling stock through an exchange. As a result, it may be difficult for you to sell your common stock or you may not be able to sell your common stock for an optimum trading price. We are subject to the penny stock rules and these rules may adversely affect trading in our common stock.

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312258--3/31/2009--SINO_SHIPPING_HOLDINGS_INC.