SHENZHEN, China, Dec. 30, 2020 /PRNewswire/ -- MingZhu Logistics
Holdings Limited (the "Company") (NASDAQ: YGMZ), a China-based trucking services provider, today
announced its unaudited financial results for the six months ended
June 30, 2020.
Financial Highlights for the Six months ended June 30, 2020
- Total revenues decreased by 8.2% from US$9.7 million for the six months ended
June 30, 2019 to US$8.9 million for the six months ended
June 30, 2020.
- Income from operations was US$312.0
thousand for the six months ended June 30, 2020 representing a decrease of 47.0%
compared with the income from operations of US$588.7 thousand.
- Net income was US$106.7 thousand
for the six months ended June 30,
2020 as compared to net income of US$
317.2 thousand for the six months ended June 30, 2019.
Jinlong Yang, the Chief Executive
Officer of the Company, commented: "Despite the extraordinary
challenge caused by the global pandemic during the first half of
2020, and particularly the occasional city lockdown in Xinjiang
region, the Company was still able to fulfill its contractual
obligation to its customers with the assistance of its
subcontractors. We are pleased to announce that the Company's
subsidiary Shenzhen Yangang Mingzhu Freight Industry Co., Ltd. has
been upgraded and accredited by China Federation of Logistics and
Purchasing from a 3A-grade to a 4A-grade trucking service provider.
We are also pleased to have completed our initial public offering
of 3,000,000 ordinary shares, at the price of US$4 per share. As Chinese economic activities
appear to have rebounded from the pandemic earlier than other
countries, we are confident that the Company will continue to
maintain its existing market shares and further explore new
strategic opportunities in such emerging market as Xinjiang to
maximize shareholder value."
Recent Development
On October 21, 2020, we completed
our firm commitment initial public offering ("IPO") of 3,000,000
ordinary shares at a public offering price of US$4.00 per share, for total gross proceeds of
US$12 million, before deducting
underwriting discounts, commissions and other related expenses. Our
ordinary shares began trading on The Nasdaq Capital Market on
October 21, 2020 under the symbol
"YGMZ".
On October 30, 2020, the
underwriter and sole book-runner of our underwritten IPO, has
exercised the partial over-allotment option and purchased an
additional 350,000 ordinary shares of the Company at the IPO price
of US$4.00 per share.
On December 4, 2020, the
underwriter and sole book-runner of our underwritten IPO, has
further exercised the partial over-allotment option and purchased
an additional 4,040 ordinary shares of the Company at the IPO price
of US$4.00 per share.
As a result of above exercise of over-allotment option, the
Company has raised US$13,416,160 in
gross proceeds, before underwriting discounts and commissions and
offering expenses, through the issuance of a total of 3,354,040
common shares in the IPO.
First Half 2020 Results
Revenues
Our total revenue was US$8.9
million for the six months ended June
30, 2020, a decrease of US$0.8
million, or 8.2%, from US$9.7
million for the same period ended June 30, 2019. The decrease was primarily
attributed to the decrease of customer demands from Xinjiang
province during the period. The revenue was primarily generated
from Guangdong province and
Xinjiang province in the PRC, which accounted for 58.7% and 41.3%
of our total revenue for the six months ended June 30, 2020, respectively, and 40.3% and 59.7%
of our total revenue for the six months ended June 30, 2019, respectively.
The revenue generated from Xinjiang province decreased by 36.5%
to US$3.7 million for the six months
ended June 30, 2020 compared with the
revenue of US$5.8 million generated
from Xinjiang province for the six months ended June 30, 2019. The decrease was mainly due to the
city lockdown when the new COVID-19 cases were identified from time
to time.
The revenue generated from Guangdong province increased by 33.5% to
US$5.2 million for the six months
ended June 30, 2020 compared with the
revenue of US$3.9 million generated
from Guangdong province for the
six months ended June 30, 2019. The
increase was mainly attributable to the growth of e-commerce during
the COVID-19 pandemic.
Income from operations
Our income from operations were US$312.0
thousand for the six months ended June 30, 2020, a decline of US$276.7 thousand, or 47.0%, from US$588.7 thousand for the same period ended
June 30, 2019. The decrease was
primarily due to a decrease of revenue of US$0.8 million and an increase of US$169.9 thousand of provision for doubtful
accounts resulting from the COVID-19's negative impact on the
collection of our accounts receivables.
Net income, as a combination of factors discussed above,
decreased from US$ 317.2 thousand for
the six months ended June 30, 2019 to
US$106.7 thousand for the six months
ended June 30, 2020.
Cash was increased by US$129.8
thousand or 58.1% from US$223.5
thousand as of December 31,
2019 to US$353.3 thousand as
of June 30, 2020.
Impact of COVID-19
The outbreak of COVID-19 since the beginning of 2020 has
adversely impacted the global economy. With daily life in
China gradually returning to
normal since April, our business related to logistics industry has
gone back to normal as well. However some new cases found in
Xinjiang region caused heavy lockdown starting from June. Our
revenue generated from Xinjiang was substantially reduced during
June. To the date of this report, our revenue is still negatively
affected by the lockdown of Xinjiang region.
The impacts of COVID-19 on our business, financial condition,
and results of operations include, but are not limited to, the
following:
- Decrease in Customer Demand. Our customers were negatively
impacted by the COVID-19 pandemic and the demand for transportation
has largely diminished. The revenue for the first half of 2020 was
decreased by 8.2%. However, no customer contract has been
terminated due to COVID-19 pandemic. Our subcontractors have been
negatively impacted by the COVID-19 pandemic, but the trucks
provided by our subcontractors are still able to satisfy the needs
required.
- Extended Collection Time and Increase in Provision for Doubtful
Accounts. Our customers may require additional time to pay us which
may require us to record additional allowances. The provision for
doubtful accounts was increased by 185.2% to US$261.7 thousand for the six months ended
June 30, 2020. We are currently
working with our customers for payments and will monitor our
collection closely.
- Shortage of Drivers. Due to the travel restrictions imposed by
the local governments, some of our drivers in Xinjiang region have
not been able to get back on road for work. However, such shortage
of drivers did not have significant impact on our services, because
our subcontractors were more than capable to provide services to
our customers.
Impacts to our results of operations depend on future
developments and new information that may emerge regarding the
duration and severity of the COVID-19 pandemic and the actions
taken by government authorities and other entities to contain
COVID-19 and mitigate its impact, almost all of which are beyond
our control. Nonetheless, we are closely monitoring the development
of the COVID-19 pandemic and will continually assess its potential
impact to our business. Because of the uncertainty surrounding the
COVID-19 pandemic, the further business disruption, especially in
Xinjiang and the related financial impact related to the outbreak
of and response to COVID-19 cannot be reasonably estimated at this
time.
About MingZhu Logistics Holdings Limited
Founded in 2002 and Headquartered in Shenzhen, China, MingZhu is 4A-grade trucking
services provider, offering both network density and broad
geographic coverage to meet customers' diverse transportation
needs. The Company operates two regional terminals in Guangdong Province and Xinjiang Autonomous
Region, respectively, with a mix of self-own fleets of tractors and
trailers and subcontractors' fleets. More information about MingZhu
can be found at: www.szygmz.com/en/
Safe Harbor Statement
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may, "will, "intend," "should," "believe," "expect," "anticipate,"
"project," "estimate" or similar expressions that do not relate
solely to historical matters, it is making forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties that may cause the
actual results to differ materially from the Company's expectations
discussed in the forward-looking statements. These statements are
subject to uncertainties and risks including, but not limited to,
the following: the Company's goals and strategies; the Company's
future business development; product and service demand and
acceptance; changes in technology; economic conditions; the growth
of the trucking services market in China and the other international markets the
Company plans to serve; reputation and brand; the impact of
competition and pricing; government regulations; fluctuations in
general economic and business conditions in China and the international markets the
Company plans to serve and assumptions underlying or related to any
of the foregoing and other risks contained in reports filed by the
Company with the SEC. For these reasons, among others, investors
are cautioned not to place undue reliance upon any forward-looking
statements in this press release. Additional factors are discussed
in the Company's filings with the SEC, which are available for
review at www.sec.gov. The Company undertakes no obligation to
publicly revise these forward–looking statements to reflect events
or circumstances that arise after the date hereof.
For more information, please contact:
At the Company:
Dennis Tan
Email: company@szygmz.com
Phone: (+86) 150-1854-1833
Investor Relations:
Sherry
Zheng
Email: shunyu.zheng@weitian-ir.com
Phone: (+1) 718-213-7386
MINGZHU LOGISTICS
HOLDINGS LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
As of
June 30,
2020
|
|
|
As of
December 31,
2019
|
|
|
|
USD
|
|
|
USD
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
353,265
|
|
|
$
|
223,507
|
|
Accounts receivable,
net
|
|
|
6,176,710
|
|
|
|
10,884,302
|
|
Prepayments
|
|
|
2,426,713
|
|
|
|
1,933,764
|
|
Other
receivables
|
|
|
3,839,476
|
|
|
|
429,972
|
|
Amount due from
related parties
|
|
|
1,767,974
|
|
|
|
1,954,517
|
|
Total Current
Assets
|
|
|
14,564,138
|
|
|
|
15,426,062
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
|
3,853,603
|
|
|
|
4,595,206
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Deferred tax
assets
|
|
|
95,512
|
|
|
|
19,559
|
|
Deposits
|
|
|
295,156
|
|
|
|
344,973
|
|
Total other
assets
|
|
|
390,668
|
|
|
|
364,532
|
|
Total
assets
|
|
$
|
18,808,409
|
|
|
$
|
20,385,800
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Short-term bank
borrowings
|
|
$
|
2,204,635
|
|
|
$
|
2,606,567
|
|
Accounts
payable
|
|
|
1,467,681
|
|
|
|
1,565,668
|
|
Other payables and
accrued liabilities
|
|
|
270,372
|
|
|
|
626,389
|
|
Amount due to related
parties
|
|
|
746,382
|
|
|
|
739,963
|
|
Tax
payable
|
|
|
2,390,101
|
|
|
|
2,205,611
|
|
Current maturities of
long-term bank borrowings
|
|
|
1,019,094
|
|
|
|
1,120,400
|
|
Current portion of
capital lease and financing obligations
|
|
|
64,424
|
|
|
|
711,421
|
|
Current maturities of
loans from other financial institutions
|
|
|
340,226
|
|
|
|
265,281
|
|
Total current
liabilities
|
|
|
8,502,915
|
|
|
|
9,841,300
|
|
|
|
|
|
|
|
|
|
|
OTHER
LIABILITIES
|
|
|
|
|
|
|
|
|
Long-term loans from
other financial institutions
|
|
|
230,256
|
|
|
|
355,927
|
|
Long-term portion of
capital lease and financing obligations
|
|
|
4,234
|
|
|
|
161,943
|
|
Total other
liabilities
|
|
|
234,490
|
|
|
|
517,870
|
|
Total
liabilities
|
|
|
8,737,405
|
|
|
|
10,359,170
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares:
$0.001 par value, 50,000,000 shares authorized, 9,000,000 shares
issued and outstanding as of June 30, 2020 and December 31,
2019*
|
|
|
9,000
|
|
|
|
9,000
|
|
Share subscription
receivables
|
|
|
(847,086)
|
|
|
|
(847,086)
|
|
Additional paid-in
capital
|
|
|
4,115,638
|
|
|
|
4,115,638
|
|
Statutory
reserves
|
|
|
819,844
|
|
|
|
760,475
|
|
Retained
earnings
|
|
|
6,288,162
|
|
|
|
6,240,833
|
|
Accumulated other
comprehensive loss
|
|
|
(314,554)
|
|
|
|
(252,230)
|
|
Total shareholders'
equity
|
|
|
10,071,004
|
|
|
|
10,026,630
|
|
Total liabilities and
shareholders' equity
|
|
$
|
18,808,409
|
|
|
$
|
20,385,800
|
|
* 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
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
|
|
|
For the Six
Months
Ended June
30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
USD
|
|
|
USD
|
|
REVENUES
|
|
$8,872,972
|
|
|
$9,669,288
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
|
7,678,741
|
|
|
|
8,349,754
|
|
General and
administrative expenses
|
|
|
579,139
|
|
|
|
606,629
|
|
Provision for
doubtful accounts
|
|
|
261,702
|
|
|
|
91,761
|
|
Sales and marketing
expenses
|
|
|
41,376
|
|
|
|
32,415
|
|
Total costs and
expenses
|
|
|
8,560,958
|
|
|
|
9,080,559
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
312,014
|
|
|
|
588,729
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSES)
INCOME
|
|
|
|
|
|
|
|
|
Interest
expenses
|
|
|
(210,887)
|
|
|
|
(166,178)
|
|
Other
expenses
|
|
|
-
|
|
|
|
(7,526)
|
|
Other
income
|
|
|
109,623
|
|
|
|
89,620
|
|
Total other expenses,
net
|
|
|
(101,264)
|
|
|
|
(84,084)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
210,750
|
|
|
|
504,645
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
104,052
|
|
|
|
187,453
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
106,698
|
|
|
|
317,192
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(62,324)
|
|
|
|
(90,836)
|
|
COMPREHENSIVE
INCOME
|
|
$44,374
|
|
|
$226,356
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
Basic and
diluted*
|
|
|
9,000,000
|
|
|
|
9,000,000
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC AND DILUTED*
|
|
$0.01
|
|
|
$0.04
|
|
* 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.
View original
content:http://www.prnewswire.com/news-releases/mingzhu-logistics-holdings-limited-announces-unaudited-financial-results-of-first-half-year-of-2020-301199469.html
SOURCE MingZhu Logistics Holdings Limited