MingZhu Logistics Announces Audited Full Year 2020 Financial Results
MingZhu Logistics Holdings Limited (NASDAQ: YGMZ) reported its financial results for the year ending December 31, 2020, revealing total revenues of $18.8 million, a decrease of 36.1% from $29.4 million in 2019. The decline was due to reduced customer demand amid the COVID-19 pandemic. Despite this, the company achieved a slight operational profit of $1.4 million, though net income fell to $0.08 per share from $0.18 in 2019. MingZhu is optimistic about future growth, particularly from a new partnership with China Merchants expected to generate approximately $12.3 million in revenue in 2021.
- New partnership with China Merchants expected to generate ~$12.3 million revenue in 2021.
- Optimistic outlook on growth prospects with the reopening of the global economy.
- Revenue decreased by 36.1% from 2019, primarily due to diminished customer demand during COVID-19.
- Net income decreased from $0.18 per share in 2019 to $0.08 in 2020.
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
Financial Results
Total revenues were
During the years ended December 31, 2020 and 2019, sales to the Company's top five customers accounted for approximately
Total costs and expenses were
Comprehensive income was
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
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
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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
| ||||||||
As of | As of | |||||||
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: | 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.
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SOURCE MingZhu Logistics Holdings Limited
FAQ
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