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

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    SHENZHEN, China, Dec. 28, 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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