Mingzhu Announces Unaudited Financial Results for the Six Months Ended June 30, 2023

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


 

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