SHENZHEN, China, Oct. 12, 2021 /PRNewswire/ -- MingZhu Logistics
Holdings Ltd. (NASDAQ: YGMZ) (MingZhu or the Company), a leading
trucking service provider, today announced that it has entered into
a non-binding memorandum of understanding ("MOU") to acquire the
controlling interest of Xinjiang Feipeng Logistics Co. Ltd.
("Feipeng"), a services provider of slack coal transportation for
the "first and last mile" by road-railway intermodal system in
Xinjiang. The acquisition will provide customers an exclusive,
crucial link between the first and last mile between slack coal
mines and essential railroads. The Company expects the higher
efficiency, lower cost intermodal transport services model will set
a new standard for future transport. Upon completion, the
acquisition will effectively increase MingZhu's capacity by
approximately 5 times of its current capacity approximately 1,000
trucks.
Under the MOU, MingZhu will be responsible for the logistics and
timely container transport of slack coal linking mines with
essential railroad transportation. Feipeng will be responsible for
providing transportation services linking road and railway to
delivery slack coal and containers. The integration between the two
companies will focus on serving Xinjiang's fast-growing rail cargo
transportation, as companies work to meet high demand levels
related to the reopened global economy.
Completion of the proposed acquisition transaction is subject to
further due diligence by the parties and negotiation and execution
of definitive documents, including a share exchange or similar
agreements, and the determination of a definitive price and other
related documentation to complete the transaction. The MOU is
non-binding and there is no assurance that the transaction will be
completed on the terms described above or at all.
Mr. Yang Jinlong, CEO of MingZhu, said, "We have a strong
partner in Feipeng, with the local presence and expertise critical
for a successful venture. The combination will increase our
capacity by 5X, as we expand well beyond our pre-COVID level. We
have spent a lot of time analyzing the transportation and logistics
market to uncover growth opportunities that closely align with our
business strategy and priorities. This latest collaboration will
greatly strengthen our business capabilities in the road-railway
intermodal market, and build upon the framework we have already
established under our cooperation agreement with Sinotrans
Logistics Limited's wholly owned subsidiary, China Merchants
Logistics Group Urumqi Limited."
Mr. Jinlong continued, "Legacy cargo transportation networks are
typically expansive with disparate systems and greater
inefficiencies. We are creating a new faster more efficient,
intermodal transportation system to better serve key commerce
centers, like Xinjiang, allowing it to facilitate the transfer by
road to by rail, as well to as ship coal by containers to improve
the transport capacity."
At present, Xinjiang's railway network carries an average of
496,000 tons of freight per day. As of December 31, 2020, Xinjiang's annual railroad
cargo shipment volume was 174.8 million tons, reaching a record
high with an increase of 15.1% year-on-year. (Source: CCTV.com)
About Xinjiang Feipeng Logistics Co. Ltd.
Founded in July 2014, Feipeng
Logistics provides integrated solutions to the logistics supply
chain that reduce costs and increase efficiency. Feipeng Logistics
is based in China's Xinjiang
Autonomous Region Xinjiang, a strategically important location for
manufacturing and commerce.
About MingZhu Logistics Holdings Limited (NASDAQ:
YGMZ)
Established in 2002 and headquartered in Shenzhen, China, MingZhu Logistics Holdings
Limited is a 4A-rated professional trucking service provider. Based
on the Company's regional logistics terminals in Guangdong Province and Xinjiang Autonomous
Region, MingZhu Logistics Holdings offers tailored solutions to our
clients to deliver their goods through our network density and
broad geographic coverage across the country by a combination of
self-owned fleets tractors and trailers and subcontractors' fleets.
For more information, please visit ir.szygmz.com.
Forward-Looking Statements
The statements in this press release regarding the Company's
future expectations, plans and prospects constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements
regarding plans, goals, objectives, strategies, future events,
expected performance, assumptions and any other statements of fact
that have not occurred. Any statements that contain the words
"may", "will", "want", "should", "believe", "expect", "anticipate",
"estimate", "calculate" or similar statements that are not factual
in nature are to be considered forward-looking statements. Actual
results may differ materially from historical results or from those
expressed in these forward-looking statements as a result of a
variety of factors. These factors include, but are not limited to,
the Company's strategic objectives, the Company's future plans,
market demand and user acceptance of the Company's products or
services, technological advances, economic trends, the growth of
the trucking services market in China, the Company's reputation and brand, the
impact of industry competition and bidding, relevant policies and
regulations, fluctuations in China's macroeconomic conditions, and the
risks and assumptions disclosed in the Company's reports provided
to the CSRC (China Security Regulatory Commission) For these and
other related reasons, we advise investors not to place any
reliance on these forward-looking statements, and we urge investors
to review the Company's relevant SEC filings for additional factors
that may affect the Company's future results of operations. The
Company undertakes no obligation to publicly revise these
forward-looking statements subsequent to the filing of these
documents as a result of changes in particular events or
circumstances.
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SOURCE MingZhu Logistics Holdings Limited