SHENZHEN, June 28, 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 audited financial results for
the full year ended December 31,
2020.
Mr. Jinlong Yang, Chairman and
Chief Executive Officer of MingZhu Logistics Holdings Limited,
commented, "2020 was a year of major milestone achievements, as we
executed on our business strategy and strengthened our financial
position through our successful initial public offering in
October. Our team did an excellent job helping customers to
navigate the dynamic pandemic environment, where partial and full
shutdowns were a normal, disruptive occurrence. We played an
important role in helping transport our customers goods, without
which costly inventory losses and supply shortages would only
increase. At the same time, we were faced with higher
operating costs that directly impacted our
profitability. These included higher fuel charges and driver
costs, among other factors. The good news is the business
environment has stabilized and returned to more of a growth mode
with the post-COVID reopening efforts and adoption of health safety
practices."
"We are very optimistic about the Company's growth prospects in
2021 and beyond, as we are positioned to benefit from the reopening
of the global economy and increased customer demand. As we
look to the future, we are excited to be entering a new phase of
growth for Mingzhu Logistics. One very exciting development we
expect will drive accelerated business growth over the coming
years, is the recent pairing of our strong track record of reliable
transportation with China Merchants, one of China's oldest and biggest companies, in an
exclusive cooperation to solve the first and last mile of slack
coal transport. Xinjiang occupies a preeminent position as one of
the core transportation hubs of the One Belt One Road and serves as
a strategic gateway. The initial agreement is expected to result in
revenue to MingZhu Logistics of approximately RMB 80 million (approximately USD$12.3 million), mainly in 2021. We also
continue to drive organic growth and are focused building increased
value for our shareholders."
Financial Results
Total revenues were $18.8 million
for the year ended December 31, 2020,
compared to $29.4 million for the
year ended December 31, 2019,
representing a decrease of 36.1% or $10.6
million. The decrease was primarily attributable to
diminished customer demand during the COVID-19 pandemic. 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, further lockdowns
were caused from time to time as new cases were found causing the
management to relocate trucks and trailers to other regions. The
management will continue to follow the development of the
pandemic.
During the years ended December 31,
2020 and 2019, sales to the Company's top five customers
accounted for approximately 78.2% and 66.7%, respectively. For
the years ended December 31, 2020,
and 2019, 72.0% and 51.7% of total revenue, respectively, was
generated from the Guangdong
province, while 28.0% and 48.3% was generated from the Xinjiang
province, respectively.
Total costs and expenses were $17.4
million for the year ended December
31, 2020, compared to $26.7
million for the year ended December
31, 2019, representing a decrease of 34.8% or $9.3 million. The decrease was primarily the
result of lower transportation costs due to the reduced revenue
level. The Company recorded income from operations of
approximately $1.4 million and
$2.7 million for the years ended 2020
and 2019, respectively.
Comprehensive income was $1.5
million for the year ended December
31, 2020, compared to $1.5
million for the year ended December
31, 2019, with net income of $0.08 per basic and diluted share and
$0.18 per basic and diluted share,
respectively.
There were 9,629,783 basic shares and 9,633,993 shares on a
diluted basis for the year ended December
31, 2020, compared to 9,000,000 shares on a basic and
diluted basis for the year ended December
31, 2019. The share count gives retroactive effect to
the re-denomination and nominal issuance of shares effected on
February 12, 2020.
The Company had an $11.6 million
balance of cash and restricted cash, as of December 31, 2020, with a $5.3 million accounts receivable balance and an
$11.4 million other receivables
balance.
About MingZhu Logistics Holdings Limited (NASDAQ:
YGMZ)
Founded in 2002, NASDAQ listed, Shenzhen, China based, 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 major regional terminals,
respectively, with both 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.
MINGZHU LOGISTICS
HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME
|
|
|
For the Year Ended
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
REVENUES
|
|
$
|
18,793,951
|
|
|
$
|
29,410,550
|
|
|
$
|
27,646,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
|
16,010,644
|
|
|
|
25,358,456
|
|
|
|
22,399,066
|
|
General and
administrative expenses
|
|
|
1,321,412
|
|
|
|
1,299,413
|
|
|
|
1,147,101
|
|
Sales and marketing
expenses
|
|
|
50,083
|
|
|
|
77,615
|
|
|
|
65,856
|
|
Total costs and
expenses
|
|
|
17,382,139
|
|
|
|
26,735,484
|
|
|
|
23,612,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
1,411,812
|
|
|
|
2,675,066
|
|
|
|
4,034,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSES)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expenses
|
|
|
(374,048)
|
|
|
|
(370,682)
|
|
|
|
(355,332)
|
|
Other
expenses
|
|
|
(65,828)
|
|
|
|
(12,683)
|
|
|
|
(8,204)
|
|
Other
income
|
|
|
176,802
|
|
|
|
172,343
|
|
|
|
189,685
|
|
Total other expenses,
net
|
|
|
(263,074)
|
|
|
|
(211,022)
|
|
|
|
(173,851)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
1,148,738
|
|
|
|
2,464,044
|
|
|
|
3,860,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
366,442
|
|
|
|
821,250
|
|
|
|
1,006,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
782,296
|
|
|
|
1,642,794
|
|
|
|
2,854,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
752,828
|
|
|
|
(121,195)
|
|
|
|
(419,684)
|
|
COMPREHENSIVE
INCOME
|
|
$
|
1,535,124
|
|
|
$
|
1,521,599
|
|
|
$
|
2,435,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic*
|
|
|
9,629,783
|
|
|
|
9,000,000
|
|
|
|
9,000,000
|
|
Diluted*
|
|
|
9,633,993
|
|
|
|
9,000,000
|
|
|
|
9,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC*
|
|
$
|
0.08
|
|
|
$
|
0.18
|
|
|
$
|
0.32
|
|
EARNINGS PER SHARE -
DILUTED*
|
|
$
|
0.08
|
|
|
$
|
0.18
|
|
|
$
|
0.32
|
|
* 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 BALANCE
SHEETS
|
|
|
As of
December 31,
2020
|
|
|
As of
December 31,
2019
|
|
|
|
USD
|
|
|
USD
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
2,105,625
|
|
|
$
|
223,507
|
|
Restricted
cash
|
|
|
9,500,000
|
|
|
|
-
|
|
Accounts receivable,
net
|
|
|
5,343,716
|
|
|
|
10,884,302
|
|
Prepayments
|
|
|
1,059,335
|
|
|
|
1,933,764
|
|
Other
receivables
|
|
|
11,448,022
|
|
|
|
429,972
|
|
Amount due from
related parties
|
|
|
741,340
|
|
|
|
1,954,517
|
|
Total Current
Assets
|
|
|
30,198,038
|
|
|
|
15,426,062
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
|
3,448,109
|
|
|
|
4,595,206
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Deferred tax
assets
|
|
|
31,852
|
|
|
|
19,559
|
|
Deposits
|
|
|
261,992
|
|
|
|
344,973
|
|
Total other
assets
|
|
|
293,844
|
|
|
|
364,532
|
|
Total
assets
|
|
$
|
33,939,991
|
|
|
$
|
20,385,800
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Short-term bank
borrowings
|
|
$
|
6,551,724
|
|
|
$
|
2,606,567
|
|
Accounts
payable
|
|
|
1,415,591
|
|
|
|
1,565,668
|
|
Other payables and
accrued liabilities
|
|
|
531,120
|
|
|
|
626,389
|
|
Amount due to related
parties
|
|
|
993,846
|
|
|
|
739,963
|
|
Tax payable
|
|
|
2,722,409
|
|
|
|
2,205,611
|
|
Current maturities of
long-term bank borrowings
|
|
|
-
|
|
|
|
1,120,400
|
|
Current portion of
capital lease and financing obligations
|
|
|
51,135
|
|
|
|
711,421
|
|
Current maturities of
loans from other financial institutions
|
|
|
235,487
|
|
|
|
265,281
|
|
Total current
liabilities
|
|
|
12,501,312
|
|
|
|
9,841,300
|
|
|
|
|
|
|
|
|
|
|
OTHER
LIABILITIES
|
|
|
|
|
|
|
|
|
Long-term loans from
other financial institutions
|
|
|
136,400
|
|
|
|
355,927
|
|
Long-term portion of
capital lease and financing obligations
|
|
|
27,989
|
|
|
|
161,943
|
|
Total other
liabilities
|
|
|
164,389
|
|
|
|
517,870
|
|
Total
liabilities
|
|
|
12,665,701
|
|
|
|
10,359,170
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares:
$0.001 par value, 50,000,000 shares authorized,
12,354,040 and 9,000,000 shares issued and outstanding as of
December 31, 2020 and 2019, respectively*
|
|
|
12,354
|
|
|
|
9,000
|
|
Share subscription
receivables
|
|
|
(847,086)
|
|
|
|
(847,086)
|
|
Additional paid-in
capital
|
|
|
13,824,820
|
|
|
|
4,115,638
|
|
Statutory
reserves
|
|
|
877,886
|
|
|
|
760,475
|
|
Retained
earnings
|
|
|
6,905,718
|
|
|
|
6,240,833
|
|
Accumulated other
comprehensive (loss) income
|
|
|
500,598
|
|
|
|
(252,230)
|
|
Total shareholders'
equity
|
|
|
21,274,290
|
|
|
|
10,026,630
|
|
Total liabilities and
shareholders' equity
|
|
$
|
33,939,991
|
|
|
$
|
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.
View original
content:https://www.prnewswire.com/news-releases/mingzhu-logistics-announces-audited-full-year-2020-financial-results-301321296.html
SOURCE MingZhu Logistics Holdings Limited