6-K
MingZhu Logistics Holdings Ltd (YGMZF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of December 2021
Commission File Number 001-39564
Mingzhu Logistics Holdings Limited
(Translation of registrant’s name into English)
27F, Yantian Modern Industry Service CenterNo. 3018 Shayan Road, Yantian DistrictShenzhen, Guangdong, China 518081
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MINGZHU LOGISTICS HOLDINGS LIMITED | ||
|---|---|---|
| Date: December 27, 2021 | ||
| By: | /s/ Jinlong Yang | |
| Name: Jinlong Yang | ||
| Title: Chief Executive Officer |
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EXHIBIT INDEX
| Exhibit<br><br>Number | Description |
|---|---|
| 99.1 | Press Release |
2
Exhibit 99.1
Mingzhu Announces Unaudited Financial Resultsfor the Six Months Ended June 30, 2021
SHENZHEN, China, December 23, 2021 – 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.
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.”
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.”
Financial Results for the Six Months Ended June30, 2021
Revenue for the six months ended June 30, 2021, increased by $0.7 million, or 8.2%, to $9.6 million from $8.9 million for the same period of last year. This increase was mainly attributable to growth of the Company’s subcontracting business.
Gross profit increased by $0.2 million, or 15.0%, to $1.4 million for the six months ended June 30, 2021, from $1.2 million 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, 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.
General and administrative expenses increased by $352,270, or 61.0%, to $932,409 for the six months ended June 30, 2021, from $579,139 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, or 100%, to $nil for the six months ended June 30, 2021, from $261,702 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, or 7.6%, to $9.2 million for the six months ended June 30, 2021, from $8.6 million for the same period of last year.
Operating income increased by $74,926, or 24.0%, to $386,940 for the six months ended June 30, 2021, from $312,014 for the same period of last year. Operating margin was 4.0% for the six months ended June 30, 2021, compared to 3.5% for the same period of last year. Net loss for the first six months ended June 30, 2021, was $355,744, as compared to net income of $106,698 for the same period of last year.
Balance Sheet and Cash Flow
As of June 30, 2021, the Company had a balance of cash and restricted cash of $14.2 million compared to $11.6 million at December 31, 2020. Accounts receivable were $2.5 million as of June 30, 2021, compared to $5.3 million as of December 31, 2020. 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 as of June 30, 2021, compared to $1.1 million as of December 31, 2020, reflecting increased demands from the Company’s subcontractors. Total working capital was $31.6 million as of June 30, 2021, compared to $17.7 million at December 31, 2020.
Net cash used in operating activities was $5.0 million for the six months ended June 30, 2021, compared to net cash provided by operating activities of $1.5 million 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 for the six months ended June 30, 2021, compared to $136,964 for the same period of last year. Net cash provided by financing activities was $7,653,904 for the six months ended June 30, 2021, compared to net cash used in by financing activities of $1.2 million for the same period of last year. This was primarily due to the proceeds from public offerings and the bank borrowings.
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 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.
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) 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.
For further information, please contact:
MingZhu Logistics Holdings Limited
Jingwei Zhang
Email: [email protected]
Phone: +86 186-5937-1270
Investor Relations
David Pasquale
Global IR Partners
Email: [email protected]
Phone: +1-914-337-8801
2
MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| As of<br> December 31, <br> 2020 | |||
|---|---|---|---|
| (Unaudited) | |||
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash | 4,693,923 | $ | 2,105,625 |
| Restricted cash | 9,500,000 | 9,500,000 | |
| Financial assets held for trading | 77,440 | - | |
| Accounts receivable, net | 2,506,448 | 5,343,716 | |
| Operating supplies | 81,453 | - | |
| Prepayments | 6,048,877 | 1,059,335 | |
| Other receivables | 17,412,942 | 11,448,022 | |
| Amount due from related parties | 1,503,948 | 741,340 | |
| Total Current Assets | 41,825,031 | 30,198,038 | |
| PROPERTY AND EQUIPMENT, NET | 2,884,414 | 3,448,109 | |
| OTHER ASSETS | |||
| Deferred tax assets | - | 31,852 | |
| Deposits | 269,303 | 261,992 | |
| Total other assets | 269,303 | 293,844 | |
| Total assets | 44,978,748 | $ | 33,939,991 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| CURRENT LIABILITIES: | |||
| Short-term bank borrowings | 5,761,546 | $ | 6,551,724 |
| Accounts payable | 652,191 | 1,415,591 | |
| Other payables and accrued liabilities | 2,295,515 | 531,120 | |
| Amount due to related parties | 144,496 | 993,846 | |
| Tax payable | 1,172,496 | 2,722,409 | |
| Current portion of capital lease and financing obligations | 65,191 | 51,135 | |
| Current maturities of loans from other financial institutions | 183,285 | 235,487 | |
| Total current liabilities | 10,274,720 | 12,501,312 | |
| OTHER LIABILITIES | |||
| Long-term loans from other financial institutions | 31,531 | 136,400 | |
| Long-term portion of capital lease and financing obligations | 85,780 | 27,989 | |
| Total other liabilities | 117,311 | 164,389 | |
| Total liabilities | 10,392,031 | 12,665,701 | |
| COMMITMENTS AND CONTINGENCIES | |||
| SHAREHOLDERS’ EQUITY | |||
| 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. * | 15,687 | 12,354 | |
| Share subscription receivables | (847,086 | (847,086 | |
| Additional paid-in capital | 27,883,950 | 13,824,820 | |
| Statutory reserves | 910,093 | 877,886 | |
| Retained earnings | 6,517,767 | 6,905,718 | |
| Accumulated other comprehensive (loss) income | 106,306 | 500,598 | |
| Total shareholders’ equity | 34,586,717 | 21,274,290 | |
| Total liabilities and shareholders’ equity | 44,978,748 | $ | 33,939,991 |
All values are in US Dollars.
| * | 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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MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVEINCOME
(Unaudited)
| For the Six Months Ended June 30, | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| REVENUES | ||||
| COSTS AND EXPENSES | ||||
| Transportation costs | ||||
| General and administrative expenses | ||||
| Provision for doubtful accounts | ||||
| Sales and marketing expenses | ||||
| Total costs and expenses | ||||
| INCOME FROM OPERATIONS | ||||
| OTHER (EXPENSES) INCOME | ||||
| Interest expenses | ) | ) | ||
| Other expenses | ) | |||
| Other income | ||||
| Total other expenses, net | ) | ) | ||
| (LOSS) INCOME BEFORE INCOME TAXES | ) | |||
| PROVISION FOR INCOME TAXES | ||||
| NET INCOME | ) | |||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||
| Foreign currency translation adjustment | ) | ) | ||
| COMPREHENSIVE INCOME | ) | |||
| Weighted average shares used in computation: | ||||
| Basic* | ||||
| Diluted* | ||||
| (LOSS) EARNINGS PER SHARE - BASIC* | ) | |||
| (LOSS) EARNINGS PER SHARE - DILUTED* | ) |
All values are in US Dollars.
| * | 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. |
|---|
4
MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’EQUITY
(Unaudited)
| Share | Additional | Retained Earnings | Accumulated Other Comprehensive | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares* | Amount | Subscription Receivables | Paid-in Capital | Statutory Reserve | Unrestricted | Income (Loss) | Total | ||||||
| BALANCE, December 31, 2020 | 12,354,040 | ) | |||||||||||
| Net income (loss) for the period | - | ) | ) | ||||||||||
| Foreign currency translation adjustment | - | ) | ) | ||||||||||
| Appropriation to statutory reserve | - | ) | |||||||||||
| Issuance of shares through public offering | 3,333,335 | ||||||||||||
| BALANCE, June 30, 2021 | 15,687,375 | ) |
All values are in US Dollars.
5
MINGZHU LOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Six Months Ended June 30, | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Cash flows from operating activities: | ||||
| Net (loss) income | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| (Gain) Loss on disposals of equipment | ) | |||
| Provision for doubtful accounts | ||||
| Amortization of deferred financing fees | ||||
| Depreciation for property and equipment | ||||
| Deferred income tax expenses | ) | |||
| Changes in operating assets and liabilities | ||||
| Accounts receivable | ||||
| Operating supplies | ) | |||
| Prepayments | ) | ) | ||
| Other receivables | ) | ) | ||
| Deposits | ) | ) | ||
| Accounts payable | ) | ) | ||
| Other payables and accrued liabilities | ) | |||
| Tax payables | ) | |||
| Net cash (used in) provided by operating activities | ) | |||
| Cash flows from investing activities: | ||||
| Purchases of equipment | ) | ) | ||
| Net cash used by investing activities | ) | ) | ||
| Cash flows from financing activities: | ||||
| Proceeds from short-term bank borrowings | ||||
| Repayment of short-term bank borrowings | ) | ) | ||
| Repayment of long-term bank borrowings | ) | |||
| Repayments of loans from other financial institutions | ) | |||
| Repayments of obligations under capital leases | ) | ) | ||
| Amounts advanced from related parties | ||||
| Repayments to related parties | ) | ) | ||
| Proceeds from public offerings | ||||
| Net cash provided by (used in) in financing activities | ) | |||
| Effect of exchange rate change on cash | ) | |||
| Net increase in cash and restricted cash | ||||
| Cash and restricted cash at beginning of the period | ||||
| Cash and restricted cash at end of the period | ||||
| Supplemental disclosure of cash flow information: | ||||
| Interest paid | ||||
| Income tax paid | ||||
| Supplemental non-cash investing and financing information: | ||||
| Non-cash capital leases to acquire revenue equipment | ) | ) | ||
| Uncollected receivable from disposal of revenue equipment | ||||
| Professional fees paid by related parties | ||||
| Reconciliation to amounts on consolidated balance sheets: | ||||
| Cash | ||||
| Restricted cash | ||||
| Total cash |
All values are in US Dollars.
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