SHENZHEN, China, Dec. 23, 2021 /PRNewswire/ -- MingZhu Logistics Holdings Limited ("MingZhu" or the "Company") (NASDAQ: YGMZ), an elite provider of logistics and transportation services to businesses, today announced its financial results for the six months ended June 30, 2021.

Mr. Jinlong, CEO of MingZhu, commented, "We ended the first half of 2021 in a stronger financial position, with 8.2% year over year revenue growth, a 15% improvement in gross profit, and a 24% improvement in operating income. We have been successfully executing on multiple fronts, while continuing to navigate the challenged COVID-19 environment. Of note, we have shuttered our Xinjiang operation and shifted to an asset-light strategy."

Mr. Jinlong, CEO of MingZhu, continued, "We continue to make significant progress in our business diversification strategy, including recent announcements of non-binding memorandums of understanding with Damo Electric Truck, and Xinjiang Feipeng Logistics Co. Ltd., and a major cooperation agreement with China Merchants Logistics Group Urumqi Limited. We are actively evaluating market opportunities that can serve as natural extensions of our business and be totally additive from both a revenue and profitability standpoint. A great example of this is the recent announcement of our expansion into the commercial liquor distribution market given its compelling synergies and adjacency to our existing business. Taken together, we are optimistic in our outlook and excited about the opportunities in front of us, as we focus on unlocking additional value for the company and shareholders."

Financial Results for the Six Months Ended June 30, 2021

Revenue for the six months ended June 30, 2021, increased by $0.7 million, or 8.2%, to $9.6 million from $8.9 million for the same period of last year. This increase was mainly attributable to growth of the Company's subcontracting business.

Gross profit increased by $0.2 million, or 15.0%, to $1.4 million for the six months ended June 30, 2021, from $1.2 million for the same period of last year. Gross margin increased by 0.8 percentage points to 14.3% for the six months ended June 30, 2021, from 13.5% for the same period of last year. The gross margin increase was primarily due to an improvement in the profitability of the Company's self-owned vehicle business.

General and administrative expenses increased by $352,270, or 61.0%, to $932,409 for the six months ended June 30, 2021, from $579,139 for the same period of last year. The increase was primarily due to the increase of professional fees. Provision for doubtful accounts decreased by $261,702, or 100%, to $nil for the six months ended June 30, 2021, from $261,702 for the same period of last year. The collection of accounts receivables was back to normal, and the Company did not record any provision for doubtful accounts for the first half of 2021. Total operating expenses increased by $0.6 million, or 7.6%, to $9.2 million for the six months ended June 30, 2021, from $8.6 million for the same period of last year.

Operating income increased by $74,926, or 24.0%, to $386,940 for the six months ended June 30, 2021, from $312,014 for the same period of last year. Operating margin was 4.0% for the six months ended June 30, 2021, compared to 3.5% for the same period of last year. Net loss for the first six months ended June 30, 2021, was $355,744, as compared to net income of $106,698 for the same period of last year.

Balance Sheet and Cash Flow

As of June 30, 2021, the Company had a balance of cash and restricted cash of $14.2 million compared to $11.6 million at December 31, 2020. Accounts receivable were $2.5 million as of June 30, 2021, compared to $5.3 million as of December 31, 2020. The decrease of accounts receivable was due to the improvement of collection from large customers. The balance of prepayment to suppliers totaled $6.0 million as of June 30, 2021, compared to $1.1 million as of December 31, 2020, reflecting increased demands from the Company's subcontractors. Total working capital was $31.6 million as of June 30, 2021, compared to $17.7 million at December 31, 2020.

Net cash used in operating activities was $5.0 million for the six months ended June 30, 2021, compared to net cash provided by operating activities of $1.5 million for the same period of last year. This was primarily due to the increase in payment in advance to suppliers. Net cash used in investing activities was $57,204 for the six months ended June 30, 2021, compared to $136,964 for the same period of last year. Net cash provided by financing activities was $7,653,904 for the six months ended June 30, 2021, compared to net cash used in by financing activities of $1.2 million for the same period of last year. This was primarily due to the proceeds from public offerings and the bank borrowings.

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. 

MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS



As of
June 30,
2021



As of
December 31,
2020




USD



USD




(Unaudited)





ASSETS







CURRENT ASSETS







Cash


$

4,693,923



$

2,105,625


Restricted cash



9,500,000




9,500,000


Financial assets held for trading



77,440




-


Accounts receivable, net



2,506,448




5,343,716


Operating supplies



81,453




-


Prepayments



6,048,877




1,059,335


Other receivables



17,412,942




11,448,022


Amount due from related parties



1,503,948




741,340


Total Current Assets



41,825,031




30,198,038











PROPERTY AND EQUIPMENT, NET



2,884,414




3,448,109











OTHER ASSETS









Deferred tax assets



-




31,852


Deposits



269,303




261,992


Total other assets



269,303




293,844


Total assets


$

44,978,748



$

33,939,991











LIABILITIES AND SHAREHOLDERS' EQUITY









CURRENT LIABILITIES:









Short-term bank borrowings


$

5,761,546



$

6,551,724


Accounts payable



652,191




1,415,591


Other payables and accrued liabilities



2,295,515




531,120


Amount due to related parties



144,496




993,846


Tax payable



1,172,496




2,722,409


Current portion of capital lease and financing obligations



65,191




51,135


Current maturities of loans from other financial institutions



183,285




235,487


Total current liabilities



10,274,720




12,501,312











OTHER LIABILITIES









Long-term loans from other financial institutions



31,531




136,400


Long-term portion of capital lease and financing obligations



85,780




27,989


Total other liabilities



117,311




164,389


Total liabilities



10,392,031




12,665,701











COMMITMENTS AND CONTINGENCIES


















SHAREHOLDERS' EQUITY









Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 15,687,375 and 12,354,040
shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. *



15,687




12,354


Share subscription receivables



(847,086)




(847,086)


Additional paid-in capital



27,883,950




13,824,820


Statutory reserves



910,093




877,886


Retained earnings



6,517,767




6,905,718


Accumulated other comprehensive (loss) income



106,306




500,598


Total shareholders' equity



34,586,717




21,274,290


Total liabilities and shareholders' equity


$

44,978,748



$

33,939,991


  • Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February 12, 2020, and the surrender and cancellation of shares effected on May 21, 2020.

 

MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



For the Six Months Ended June 30,




2020



2019




USD



USD


REVENUES


$

9,602,080



$

8,872,972











COSTS AND EXPENSES









Transportation costs



8,229,288




7,678,741


General and administrative expenses



932,409




579,139


Provision for doubtful accounts



-




261,702


Sales and marketing expenses



53,443




41,376


Total costs and expenses



9,215,140




8,560,958











INCOME FROM OPERATIONS



386,940




312,014











OTHER (EXPENSES) INCOME









Interest expenses



(235,268)




(210,887)


Other expenses



(657,745)




-


Other income



191,048




109,623


Total other expenses, net



(701,965)




(101,264)











(LOSS) INCOME BEFORE INCOME TAXES



(315,025)




210,750











PROVISION FOR INCOME TAXES



40,719




104,052











NET INCOME



(355,744)




106,698











OTHER COMPREHENSIVE (LOSS) INCOME









Foreign currency translation adjustment



(394,292)




(62,324)


COMPREHENSIVE INCOME


$

(750,036)



$

44,374











Weighted average shares used in computation:









Basic*



14,387,374




9,000,000


Diluted*



15,985,367




9,000,000











(LOSS) EARNINGS PER SHARE - BASIC*


$

(0.02)



$

0.01


(LOSS) EARNINGS PER SHARE - DILUTED*


$

(0.02)



$

0.01


  • Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February 12, 2020, and the surrender and cancellation of shares effected on May 21, 2020.

 

MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)















Retained Earnings










Shares*



Amount



Share
Subscription
Receivables



Additional
Paid-in
Capital



Statutory
Reserve



Unrestricted



Accumulated Other Comprehensive
I
ncome
(Loss)



Total







USD



USD



USD



USD



USD



USD



USD


BALANCE, December 31, 2020



12,354,040



$

12,354



$

(847,086)



$

13,824,820



$

877,886



$

6,905,718



$

500,598



$

21,274,290



































Net income (loss)
for the period



-




-




-




-




-




(355,744)




-




(355,744)


Foreign currency
translation
adjustment



-




-




-




-




-




-




(394,292)




(394,292)


Appropriation to statutory
reserve



-




-




-




-




32,207




(32,207)




-




-


Issuance of shares through public offering



3,333,335




3,333




-




14,059,130




-




-




-




14,062,463



































BALANCE,
June 30, 2021



15,687,375



$

15,687



$

(847,086)



$

27,883,950



$

910,093



$

6,517,767



$

106,306



$

34,586,717


 

MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)



For the Six Months
Ended June 30,




2021



2020




USD



USD


Cash flows from operating activities:







Net (loss) income


$

(355,744)



$

106,698


Adjustments to reconcile net income to net cash provided by operating activities:









(Gain) Loss on disposals of equipment



(5,532)




2,721


Provision for doubtful accounts



-




263,003


Amortization of deferred financing fees



57,199




34,911


Depreciation for property and equipment



747,316




835,463


Deferred income tax expenses



32,122




(76,596)


Changes in operating assets and liabilities









Accounts receivable



3,051,083




4,306,728


Operating supplies



(81,282)




-


Prepayments



(9,370,842)




(517,693)


Other receivables



(5,888,995)




(3,243,964)


Deposits



(4,031)




(3,709)


Accounts payable



(776,760)




(75,447)


Other payables and accrued liabilities



9,129,748




(366,206)


Tax payables



(1,558,220)




217,752


Net cash (used in) provided by operating activities



(5,023,938)




1,483,661











Cash flows from investing activities:









Purchases of equipment



(57,204)




(136,964)


Net cash used by investing activities



(57,204)




(136,964)











Cash flows from financing activities:









Proceeds from short-term bank borrowings



4,327,532




796,337


Repayment of short-term bank borrowings



(5,185,311)




(1,172,663)


Repayment of long-term bank borrowings



-




(85,322)


Repayments of loans from other financial institutions



-




(8,871)


Repayments of obligations under capital leases



(236,116)




(852,718)


Amounts advanced from related parties



4,158,734




5,195,613


Repayments to related parties



(13,885,698)




(5,083,005)


Proceeds from public offerings



18,474,763




-


Net cash provided by (used in) in financing activities



7,653,904




(1,210,629)











Effect of exchange rate change on cash



15,536




(6,310)











Net increase in cash and restricted cash



2,588,298




129,758


Cash and restricted cash at beginning of the period



11,605,625




223,507


Cash and restricted cash at end of the period


$

14,193,923



$

353,265











Supplemental disclosure of cash flow information:









Interest paid


$

200,435



$

154,324


Income tax paid


$

990,349



$

74,889











Supplemental non-cash investing and financing information:









Non-cash capital leases to acquire revenue equipment


$

(118,883)



$

(23,649)


Uncollected receivable from disposal of revenue equipment


$

9,221



$

-


Professional fees paid by related parties



-




143,862











Reconciliation to amounts on consolidated balance sheets:









Cash


$

4,693,923



$

353,265


Restricted cash



9,500,000




-


Total cash


$

14,193,923



$

353,265


 

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SOURCE MingZhu Logistics Holdings Limited

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