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
Income
(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
|
|
View original
content:https://www.prnewswire.com/news-releases/mingzhu-announces-unaudited-financial-results-for-the-six-months-ended-june-30-2021-301450560.html
SOURCE MingZhu Logistics Holdings Limited