SHENZHEN, China, Dec. 27,
2023 /PRNewswire/ -- MingZhu Logistics Holdings
Limited ("MingZhu" or the "Company") (NASDAQ: YGMZ), an elite
provider of logistics and transportation services to businesses,
today announced its unaudited financial results for the six months
ended June 30, 2023.
Mr. Jinlong Yang, CEO of MingZhu,
commented, "While the broader economic environment remained
challenged, with customers adjusting to demand fluctuations, our
team was focused and worked to minimize the impact of the
volatility where we could. Through our efforts, we were able to
reduce operating expenses in the first six months of 2023, compared
to the year ago period, enabling us to maintain a healthy balance
sheet. Our longer-term business diversification strategy remains in
place but has been slowed by a sluggish acquisition environment
given higher interest rates and costs, including an 83% increase in
our transportation costs, which served to depress our net income.
We believe there are meaningful opportunities for further cost
reductions in our operations and have made this a priority moving
forward as we continue to adjust our business to the evolving
market."
Operating Results for the Six Months Ended June 30, 2023
Revenue for the six months ended June 30,
2023, decreased by $4,239,764,
or 7.0%, to $56.1 million from
$60.3 million for the same period of
last year.
Total operating expenses decreased by $1,430,036, or 2.4%, to $57.0 million for the six months ended
June 30, 2023, from $58.4 million for the same period of last
year.
Net loss for the six months ended June
30, 2023 was $805,636 compared
to net income of $1,645,083 in the
year ago period. The decrease in net income was primarily due to
the lower revenue.
Balance Sheet and Cash Flow
As of June 30, 2023, the Company
had a $4.3 million balance of cash,
and an accounts receivable balance of $15.5
million. The balance of prepayment to suppliers totaled
$10.7 million as of June 30, 2023, compared to $7.3 million as of December 31, 2022, as the Company retrieved
partial payments back from suppliers or received services and
products.
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
|
|
|
As of
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
USD
|
|
|
USD
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash
|
|
$
|
4,307,362
|
|
|
$
|
5,687,311
|
|
|
Accounts receivable,
net
|
|
|
15,496,761
|
|
|
|
19,127,321
|
|
|
Prepayments
|
|
|
10,666,774
|
|
|
|
7,339,861
|
|
|
Other
receivables
|
|
|
3,462,794
|
|
|
|
2,795,843
|
|
|
Loans
receivable*
|
|
|
31,085,776
|
|
|
|
28,622,704
|
|
|
Amount due from related
parties
|
|
|
5,406,484
|
|
|
|
2,677,345
|
|
|
Total current
assets
|
|
|
70,425,951
|
|
|
|
66,250,385
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSET
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
7,338,773
|
|
|
|
9,073,698
|
|
|
Deferred tax
assets
|
|
|
241,381
|
|
|
|
238,237
|
|
|
Deposits
|
|
|
3,059,220
|
|
|
|
2,657,126
|
|
|
Goodwill
|
|
|
33,237,409
|
|
|
|
33,237,409
|
|
|
Total non-current
asset
|
|
|
43,876,783
|
|
|
|
45,206,470
|
|
|
Total assets
|
|
$
|
114,302,734
|
|
|
$
|
111,456,855
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Short-term bank
borrowings
|
|
$
|
13,842,541
|
|
|
$
|
10,022,335
|
|
|
Accounts
payable
|
|
|
7,147,277
|
|
|
|
10,134,535
|
|
|
Other payables and
accrued liabilities
|
|
|
33,376,960
|
|
|
|
29,054,674
|
|
|
Amount due to related
parties
|
|
|
6,933,731
|
|
|
|
6,108,866
|
|
|
Tax payable
|
|
|
4,754,198
|
|
|
|
5,278,436
|
|
|
Current maturities of
long-term bank borrowings
|
|
|
206,209
|
|
|
|
586,935
|
|
|
Current portion of
capital lease and financing obligations
|
|
|
714,621
|
|
|
|
757,088
|
|
|
Total current
liabilities
|
|
|
66,975,537
|
|
|
|
61,942,869
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Long-term bank
borrowings
|
|
|
274,485
|
|
|
|
253,352
|
|
|
Long-term portion of
capital lease and financing obligations
|
|
|
687,901
|
|
|
|
1,158,642
|
|
|
Total non-current
liabilities
|
|
|
962,386
|
|
|
|
1,411,994
|
|
|
Total
liabilities
|
|
|
67,937,923
|
|
|
|
63,354,863
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Ordinary shares:
$0.001 par value, 50,000,000 shares authorized,
22,960,277 and 22,960,277 shares issued and outstanding
as of June 30, 2023
and December 31, 2022, respectively**
|
|
|
22,960
|
|
|
|
22,960
|
|
|
Share subscription
receivables
|
|
|
(848,414)
|
|
|
|
(847,086)
|
|
|
Additional paid-in
capital
|
|
|
41,583,382
|
|
|
|
41,734,546
|
|
|
Statutory
reserves
|
|
|
1,046,249
|
|
|
|
1,036,841
|
|
|
Retained
earnings
|
|
|
5,825,256
|
|
|
|
7,704,538
|
|
|
Accumulated other
comprehensive Loss
|
|
|
(1,264,622)
|
|
|
|
(1,549,807)
|
|
|
Total shareholders'
equity
|
|
|
46,364,811
|
|
|
|
48,101,992
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
114,302,734
|
|
|
$
|
111,456,855
|
|
|
*
|
Loans receivable mainly
comprise of interest-free advances to third parties as a result of
strategic business cooperation.
|
|
**
|
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,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
USD
|
|
|
USD
|
|
|
REVENUES
|
|
$
|
56,090,997
|
|
|
$
|
60,330,761
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
|
32,840,752
|
|
|
|
17,953,860
|
|
|
Costs of rental
services
|
|
|
13,020,751
|
|
|
|
24,962,970
|
|
|
Costs of insurance
services
|
|
|
8,576,401
|
|
|
|
12,740,606
|
|
|
General and
administrative expenses
|
|
|
2,112,502
|
|
|
|
2,471,467
|
|
|
Sales and marketing
expenses
|
|
|
442,500
|
|
|
|
294,039
|
|
|
Total costs and
expenses
|
|
|
56,992,906
|
|
|
|
58,422,942
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME FROM
OPERATIONS
|
|
|
(901,909)
|
|
|
|
1,907,819
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSES)
INCOME
|
|
|
|
|
|
|
|
|
|
Interest
expenses
|
|
|
(413,618)
|
|
|
|
(652,372)
|
|
|
Other
expenses
|
|
|
(12,815)
|
|
|
|
(358,267)
|
|
|
Other income
|
|
|
482,540
|
|
|
|
1,237,049
|
|
|
Total other income,
net
|
|
|
56,107
|
|
|
|
226,410
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)
INCOME BEFORE INCOME TAXES
|
|
|
(845,802)
|
|
|
|
2,134,229
|
|
|
|
|
|
|
|
|
|
|
|
(BENEFIT)
PROVISION FOR INCOME TAXES
|
|
|
(40,166)
|
|
|
|
489,147
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
(805,636)
|
|
|
|
1,645,082
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
285,185
|
|
|
|
(229,321)
|
|
|
COMPREHENSIVE (LOSS)
INCOME
|
|
$
|
(520,451)
|
|
|
$
|
1,415,761
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computation:
|
|
|
|
|
|
|
|
|
|
Basic*
|
|
|
21,429,877
|
|
|
|
21,429,877
|
|
|
Diluted*
|
|
|
20,885,442
|
|
|
|
20,885,442
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
SHARE - BASIC*
|
|
$
|
(0.04)
|
|
|
$
|
0.07
|
|
|
(LOSS) EARNINGS PER
SHARE - DILUTED*
|
|
$
|
(0.04)
|
|
|
$
|
0.07
|
|
|
*
|
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)
|
|
|
|
|
|
|
|
|
|
Share
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Accumulated Other
Comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
Paid-in
|
|
|
Statutory
|
|
|
Retained
|
|
|
Income
|
|
|
|
|
|
|
Shares*
|
|
|
Amount
|
|
|
Receivables
|
|
|
Capital
|
|
|
Reserve
|
|
|
Earnings
|
|
|
(Loss)
|
|
|
Total
|
|
|
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
BALANCE, December 31,
2022
|
|
|
22,960,277
|
|
|
$
|
22,960
|
|
|
$
|
(847,086)
|
|
|
$
|
41,734,546
|
|
|
$
|
1,036,841
|
|
|
$
|
7,704,538
|
|
|
$
|
(1,549,807)
|
|
|
$
|
48,101,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(805,636)
|
|
|
|
-
|
|
|
|
(805,636)
|
|
|
Foreign currency
translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,328)
|
|
|
|
(151,164)
|
|
|
|
-
|
|
|
|
(1,064,238)
|
|
|
|
285,185
|
|
|
|
(931,545)
|
|
|
Appropriation to
statutory reserve
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,408
|
|
|
|
(9,408)
|
|
|
|
-
|
|
|
|
-
|
|
|
BALANCE, June 30,
2023
|
|
|
22,960,277
|
|
|
$
|
22,960
|
|
|
$
|
(848,414)
|
|
|
$
|
41,583,382
|
|
|
$
|
1,046,249
|
|
|
$
|
5,825,256
|
|
|
$
|
(1,264,622)
|
|
|
$
|
46,364,811
|
|
|
MINGZHU LOGISTICS
HOLDINGS LIMITED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
For the Six
Months
Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
USD
|
|
|
USD
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(805,636)
|
|
|
$
|
1,645,083
|
|
|
Adjustments to
reconcile net income to net cash provided (used in by operating
activities:
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing fees
|
|
|
-
|
|
|
|
26,607
|
|
|
Provision for doubtful
accounts
|
|
|
19,413
|
|
|
|
-
|
|
|
Depreciation for
property and equipment
|
|
|
851,324
|
|
|
|
3,441,564
|
|
|
Deferred income tax
benefit
|
|
|
(12,532)
|
|
|
|
(24,798)
|
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
3,015,034
|
|
|
|
(19,659,925)
|
|
|
Prepayments
|
|
|
(3,845,327)
|
|
|
|
1,080,484
|
|
|
Other
receivables
|
|
|
(2,629,641)
|
|
|
|
702,011
|
|
|
Loans
receivable
|
|
|
(1,992,268)
|
|
|
|
(12,301,292)
|
|
|
Deposits
|
|
|
(822,745)
|
|
|
|
-
|
|
|
Accounts
payable
|
|
|
(2,821,222)
|
|
|
|
9,226,616
|
|
|
Other payables and
accrued liabilities
|
|
|
5,356,422
|
|
|
|
9,259,017
|
|
|
Tax payables
|
|
|
(278,606)
|
|
|
|
2,572,424
|
|
|
Net cash used in
operating activities
|
|
|
(3,965,784)
|
|
|
|
(4,032,209)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of
equipment
|
|
|
-
|
|
|
|
(1,343,653)
|
|
|
Disposal of
equipment
|
|
|
31,102
|
|
|
|
-
|
|
|
Cash from acquisition
of subsidiary
|
|
|
-
|
|
|
|
410,863
|
|
|
Net cash provided by
(used in) investing activities
|
|
|
31,102
|
|
|
|
(932,790)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank borrowings
|
|
|
4,876,613
|
|
|
|
2,988,620
|
|
|
Repayment of short-term
bank borrowings
|
|
|
(354,778)
|
|
|
|
(1,122,278)
|
|
|
Repayment of long-term
bank borrowings
|
|
|
-
|
|
|
|
(149,756)
|
|
|
Repayments of loans
from other financial institutions
|
|
|
(784,097)
|
|
|
|
(144,126)
|
|
|
Repayments of
obligations under capital leases
|
|
|
-
|
|
|
|
(1,864,325)
|
|
|
Amounts advanced from
related parties
|
|
|
3,222,649
|
|
|
|
3,128,231
|
|
|
Repayments to related
parties
|
|
|
(4,257,112)
|
|
|
|
-
|
|
|
Net cash provided by
financing activities
|
|
|
2,703,275
|
|
|
|
2,836,366
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
change on cash
|
|
|
(148,542)
|
|
|
|
86,862
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease
in cash
|
|
|
(1,379,949)
|
|
|
|
(2,041,771)
|
|
|
Cash at beginning of
the period
|
|
|
5,687,311
|
|
|
|
5,752,117
|
|
|
Cash at end of the
period
|
|
$
|
4,307,362
|
|
|
$
|
3,710,346
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
504,655
|
|
|
$
|
242,386
|
|
|
Income tax
paid
|
|
$
|
10,620
|
|
|
$
|
769,924
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental non-cash
investing and financing information:
|
|
|
|
|
|
|
|
|
|
Non-cash capital leases
to acquire revenue equipment
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Uncollected receivable
from disposal of revenue equipment
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
amounts on consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
4,307,362
|
|
|
$
|
3,710,346
|
|
|
Restricted
cash
|
|
|
-
|
|
|
|
-
|
|
|
Total cash and
restricted cash
|
|
$
|
4,307,362
|
|
|
$
|
3,710,346
|
|
View original
content:https://www.prnewswire.com/news-releases/mingzhu-announces-unaudited-financial-results-for-the-six-months-ended-june-30-2023-302022885.html
SOURCE MingZhu Logistics Holdings Limited
