Contract Awarded to MingZhu's Feipeng Subsidiary from Sinotrans Logistics for Vehicle Transport

Rhea-AI Summary

MingZhu Logistics Holdings has secured a significant 1-year contract for its subsidiary, Shanghai Feipeng Supply Chain Management, from Sinotrans Logistics. Under this agreement, Feipeng will transport new energy commercial vehicles for Zhejiang Geely Holding Group across China until June 2025. The contract initially requires Feipeng to deploy 100 trucks for the operation. This partnership highlights MingZhu's capacity to manage high-profile clients and is expected to drive considerable business growth and financial benefits. Founded in 2014, Feipeng specializes in cost-effective, efficient logistics supply chain solutions, and is strategically based in Xinjiang.

Positive

• Secured a 1-year vehicle transport contract with Sinotrans Logistics.
• Transporting new energy commercial vehicles for Zhejiang Geely Holding Group.
• Contract involves deploying 100 trucks initially.
• Expected to drive significant business growth and financial benefits.

Negative

• None.

Financial Analyst

MingZhu Logistics Holdings Limited securing a significant contract with Sinotrans Logistics is noteworthy. The contract entails providing 100 trucks for transporting new energy commercial vehicles for one year. This aligns MingZhu with a major player in China's logistics industry, Sinotrans, enhancing its market position.

Financially, this deal could boost revenue and broaden MingZhu's customer base. Investors should track quarterly earnings for any revenue uptick linked to this contract. Long-term benefits could stem from potential contract extensions or additional service demands.

However, consider the operational costs associated with maintaining and running 100 trucks. If Sinotrans demands higher quality or more trucks, MingZhu might face rising operational expenses, which could affect profit margins.

Despite potential risks, this contract indicates solid business growth, especially in the rapidly expanding electric vehicle sector. Investors should watch how this collaboration develops and impacts MingZhu's financials.

Market Research Analyst

This transport contract highlights an emerging trend: the increasing demand for new energy vehicles (NEVs) in China. The involvement of Zhejiang Geely Holding Group, a major player in NEVs, underscores this shift. MingZhu aligning with such a trend signals strategic foresight, potentially tapping into a high-growth market.

Furthermore, Sinotrans Logistics' established reputation and extensive logistics network could enhance MingZhu's market visibility and credibility. This partnership might open doors to future contracts with other prominent logistics providers or manufacturers in the NEV sector.

For retail investors, this contract positions MingZhu in a lucrative market segment. However, it's important to monitor how effectively MingZhu scales its operations to meet the contract's demands without compromising service quality.

SHENZHEN, China, July 10, 2024 /PRNewswire/ -- MingZhu Logistics Holdings Limited ("MingZhu" or the "Company") (Nasdaq: YGMZ), an elite provider of logistics and transportation services to businesses, today announced Sinotrans Logistics Northwest Co., Ltd. ("Sinotrans Logistics" https://logistics.sinotrans.com/) awarded a major 1-year vehicle transport contract to MingZhu's subsidiary Shanghai Feipeng Supply Chain Management Co., Ltd. ("Feipeng").

Under the contract, Feipeng will provide automobile transportation service to Sinotrans Logistics through June 2025. Feipeng will be transporting new energy commercial vehicles for Sinotrans Logistics from its customer Zhejiang Geely Holding Group Co., Ltd.'s nationwide factory to agreed-upon destinations across China. Sinotrans Logistics contracted Feipeng to initially provide 100 trucks on the route during the contract period.

Mr. Jinlong Yang, Chairman and Chief Executive Officer of MingZhu Logistics Holdings Limited, commented, "This showcase win demonstrates our capacity to flawlessly support high-profile customers and positively impacts our business financially. This capability is fueling significant momentum and growth for our company. Moreover, this achievement is a substantial win for our investors, reflecting our dedication to unlocking greater value."

Feipeng Logistics, a subsidiary of MingZhu, was founded in 2014. It provides integrated solutions to the logistics supply chain that reduce costs and increase efficiency. Feipeng Logistics is based in China's Xinjiang Autonomous Region, a strategically important location for manufacturing and commerce.

Sinotrans Logistics Co., Ltd. ("Sinotrans Logistics" https://logistics.sinotrans.com/) is the flagship of the contract logistics sector of Sinotrans Co., Ltd., a unified operating platform for the development of modern logistics business by China Merchants Group Co., Ltd., and is also one of the largest contract logistics companies in China. It is listed on both the Hong Kong and Shanghai Stock Exchanges. Sinotrans Logistics operates five business platforms: international supply chain, automobile transport, smart warehousing, multimodal transport and supply chain finance, focusing on the "5+1" industry fields of pan-consumer goods, technology electronics, medical health, automobile and industrial manufacturing, new retail and special logistics. It has carried out in-depth and extensive cooperation with many Fortune 500 customers and government agencies such as Procter & Gamble, Mobil, GE, Philips, Mars, Nestlé, Metro, Kimberly-Clark, BLACKWOODS, Kmart, etc., and has won widespread praise from customers.

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, 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 https://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). The potential acquisition involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including but not limited to statements about the potential benefits of the potential acquisition; the anticipated timing of closing of the potential acquisition (including failure to obtain necessary regulatory approvals) and the possibility that the potential acquisition does not close; risks related to the ability to realize the anticipated benefits of the potential acquisition, including the possibility that the expected benefits from the proposed transaction will not be realized or will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; disruption from the potential acquisition making it more difficult to maintain business and operational relationships; negative effects of announcing the potential acquisition or the consummation of the potential acquisition on the market price of our common stock or operating results; costs associated with the potential acquisition; unknown liabilities; and the risk of litigation and/or regulatory actions related to the potential acquisition. 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.

View original content:https://www.prnewswire.com/news-releases/contract-awarded-to-mingzhus-feipeng-subsidiary-from-sinotrans-logistics-for-vehicle-transport-302192718.html

SOURCE MingZhu Logistics Holdings Limited

FAQ

What contract did MingZhu's Feipeng subsidiary secure in July 2024?

MingZhu's Feipeng subsidiary secured a 1-year vehicle transport contract from Sinotrans Logistics.

Which company awarded the transport contract to MingZhu's Feipeng subsidiary?

Sinotrans Logistics awarded the transport contract to MingZhu's Feipeng subsidiary.

What will Feipeng transport under the new contract with Sinotrans Logistics?

Feipeng will transport new energy commercial vehicles for Zhejiang Geely Holding Group.

How many trucks will Feipeng initially deploy for the Sinotrans Logistics contract?

Feipeng will initially deploy 100 trucks for the Sinotrans Logistics contract.

When does the vehicle transport contract between MingZhu's Feipeng subsidiary and Sinotrans Logistics end?

The contract ends in June 2025.