{"id":4156,"date":"2021-12-23T22:00:00","date_gmt":"2021-12-23T22:00:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/3616591_CN16591_0"},"modified":"2021-12-23T22:00:00","modified_gmt":"2021-12-23T22:00:00","slug":"mingzhu-announces-unaudited-financial-results-for-the-six-months-ended-june-30-2021","status":"publish","type":"post","link":"https:\/\/transmediavictoria.net.au\/?p=4156","title":{"rendered":"Mingzhu Announces Unaudited Financial Results for the Six Months Ended June 30, 2021"},"content":{"rendered":"

SHENZHEN, China<\/span>, Dec. 24, 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<\/span>.<\/p>\n

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.” <\/p>\n

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.”<\/p>\n

Financial Results for the Six Months Ended June 30, 2021<\/span><\/b><\/p>\n

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

Gross profit increased by $0.2 million<\/span>, or 15.0%, to $1.4 million<\/span> for the six months ended June 30, 2021<\/span>, from $1.2 million<\/span> 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<\/span>, 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.<\/p>\n

General and administrative expenses increased by $352,270<\/span>, or 61.0%, to $932,409<\/span> for the six months ended June 30, 2021<\/span>, from $579,139<\/span> 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<\/span>, or 100%, to $nil for the six months ended June 30, 2021<\/span>, from $261,702<\/span> 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<\/span>, or 7.6%, to $9.2 million<\/span> for the six months ended June 30, 2021<\/span>, from $8.6 million<\/span> for the same period of last year.<\/p>\n

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

Balance Sheet and Cash Flow<\/b><\/p>\n

As of June 30, 2021<\/span>, the Company had a balance of cash and restricted cash of $14.2 million<\/span> compared to $11.6 million<\/span> at December 31, 2020<\/span>. Accounts receivable were $2.5 million<\/span> as of June 30, 2021<\/span>, compared to $5.3 million<\/span> as of December 31, 2020<\/span>. 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<\/span> as of June 30, 2021<\/span>, compared to $1.1 million<\/span> as of December 31, 2020<\/span>, reflecting increased demands from the Company’s subcontractors. Total working capital was $31.6 million<\/span> as of June 30, 2021<\/span>, compared to $17.7 million<\/span> at December 31, 2020<\/span>.<\/p>\n

Net cash used in operating activities was $5.0 million<\/span> for the six months ended June 30, 2021<\/span>, compared to net cash provided by operating activities of $1.5 million<\/span> 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<\/span> for the six months ended June 30, 2021<\/span>, compared to $136,964<\/span> for the same period of last year. Net cash provided by financing activities was $7,653,904<\/span> for the six months ended June 30, 2021<\/span>, compared to net cash used in by financing activities of $1.2 million<\/span> for the same period of last year. This was primarily due to the proceeds from public offerings and the bank borrowings.<\/p>\n

About MingZhu Logistics Holdings Limited (NASDAQ: YGMZ)<\/b><\/p>\n

Established in 2002 and headquartered in Shenzhen, China<\/span>, MingZhu Logistics Holdings Limited is a 4A-rated professional trucking service provider. Based on the Company’s regional logistics terminals in Guangdong Province<\/span> 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. <\/p>\n

Forward-Looking Statements<\/b><\/p>\n

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<\/span>, the Company’s reputation and brand, the impact of industry competition and bidding, relevant policies and regulations, fluctuations in China’s<\/span> 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. <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
<\/b>CONSOLIDATED BALANCE SHEETS<\/b>
<\/span><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

As of
June 30,
2021<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

As of
December 31,
2020<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

USD<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

USD<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

(Unaudited)<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

ASSETS<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

CURRENT ASSETS<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Cash<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

4,693,923<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

2,105,625<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Restricted cash<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

9,500,000<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

9,500,000<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Financial assets held for trading<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

77,440<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

–<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Accounts receivable, net<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,506,448<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

5,343,716<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Operating supplies<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

81,453<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

–<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Prepayments<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

6,048,877<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

1,059,335<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Other receivables<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

17,412,942<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

11,448,022<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Amount due from related parties<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,503,948<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

741,340<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total Current Assets<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

41,825,031<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

30,198,038<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

PROPERTY AND EQUIPMENT, NET<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,884,414<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

3,448,109<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

OTHER ASSETS<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Deferred tax assets<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

–<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

31,852<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Deposits<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

269,303<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

261,992<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total other assets<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

269,303<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

293,844<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total assets<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

44,978,748<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

33,939,991<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

LIABILITIES AND SHAREHOLDERS’ EQUITY<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

CURRENT LIABILITIES:<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Short-term bank borrowings<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

5,761,546<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

6,551,724<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Accounts payable<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

652,191<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

1,415,591<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Other payables and accrued liabilities<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

2,295,515<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

531,120<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Amount due to related parties<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

144,496<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

993,846<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Tax payable<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,172,496<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

2,722,409<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Current portion of capital lease and financing obligations<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

65,191<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

51,135<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Current maturities of loans from other financial institutions<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

183,285<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

235,487<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total current liabilities<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

10,274,720<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

12,501,312<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

OTHER LIABILITIES<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Long-term loans from other financial institutions<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

31,531<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

136,400<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Long-term portion of capital lease and financing obligations<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

85,780<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

27,989<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total other liabilities<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

117,311<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

164,389<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total liabilities<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

10,392,031<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

12,665,701<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

COMMITMENTS AND CONTINGENCIES<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

SHAREHOLDERS’ EQUITY<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

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. *<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

15,687<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

12,354<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Share subscription receivables<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(847,086)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

(847,086)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Additional paid-in capital<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

27,883,950<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

13,824,820<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Statutory reserves<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

910,093<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

877,886<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Retained earnings<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

6,517,767<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

6,905,718<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Accumulated other comprehensive (loss) income<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

106,306<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

500,598<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total shareholders’ equity<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

34,586,717<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n\n

21,274,290<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total liabilities and shareholders’ equity<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

44,978,748<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

33,939,991<\/span><\/p>\n<\/td>\n

<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n