Mingzhu Announces Unaudited Financial Results for the Six Months Ended June 30, 2022

SHENZHEN,China,Dec. 28,2022 --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 thesix months period ended June 30,2022.

Mr. Jinlong Yang,CEO of MingZhu,commented,"We ended the first half of 2022 in a stronger financial performance,with 528% year over year revenue growth,with positive net income of $0.07 per share compared to a loss in the year ago period. We have been successfully executing on multiple fronts,while continuing to navigate the challenged COVID-19 environment. Of note,we have shifted to an asset-light strategy."

Mr. Jinlong Yang,continued,"We continue to make significant progress in our business diversification strategy,including the successful acquisition of Yinhua (BVI) Limited (the "Yinhua") in March 2022,that directly increased our revenue by $13 million for the six months ended June 30,2022. We reentered the coal transportation market with our asset-light strategy during the first half year of 2022. We are aiming to further strengthen our market reach and extend our progress in the near future. Our team is confident that we can align our business direction and strategic objectives to achieve long-term stable and sustainable performance growth in the post-epidemic era."

Financial Results for the Six Months Ended June 30,2022

Revenue for the six months ended June 30,2022,increased by $50.7 million,or 528.1%,to $60.3 million from $9.6 million for the same period of last year. This increase was mainly attributable to the acquisition of Cheyi (BVI) Limited (the "Cheyi") and Yinhua.

General and administrative expenses increased by $158,001,or 16.9%,to $1,090,410 for the six months ended June 30,from $932,409 for the same period of last year. The increase was primarily due to the decrease of professional fees and the increase from two newly acquired businesses. Total operating expenses increased by $49.2 million,or 534.8%,to $58.4 million for the six months ended June 30,from $9.2 million for the same period of last year.

Net income increased by $2,000,827,or 562.4%,645,083 for the six months ended June 30,from a loss of $355,744 for the same period of last year. Net income margin was 2.7% for the six months ended June 30,compared to -3.7% for the same period of last year. The increase in net income was primarily due to the effect of our asset-light strategy and the acquisition of Cheyi and Yinhua.

Balance Sheet and Cash Flow

As of June 30,the Company had a balance of cash of $3.7 million compared to $5.8 million at December 31,2021. The decrease was due to the cash payment made for the acquisition of Yinhua. Accounts receivable were $23.3 million as of June 30,compared to $3.7 million as of December 31,2021. The increase of accounts receivable was mainly due to the acquisition of Yinhua,which had a significant expansion in second quarter of 2022. The balance of prepayment to suppliers was $4.4 million as of June 30,compared to $5.5 million as of December 31,2021. The decrease was attributable to the Company's partial retrieved payments back from suppliers. Loans receivable was increased by $12.9 million as the Company continue to build up strategic alliance as planned. Total working capital was $11.0 million as of June 30,compared to $5.3 million as of December 31,2021.

Net cash used inoperating activities was $4.0 million for the six months ended June 30,compared to net cash used in operating activities of $5.0 million for the same period of last year. The decrease was primarily due to the decrease in payment to suppliers. Resulting from the new purchases of equipment,net cash used in investing activities was increased from $57,204 for the six months ended June 30,2021,to $932,790 for the six months ended June 30,2022. Net cash provided by financing activities was $2.8 million for the six months ended June 30,compared to net cash provided by financing activities of $7.6 million for the same period of last year. This decrease was primarily due to the decrease in proceeds from equity financing activities and the loan from commercial banks.

About MingZhu Logistics Holdings Limited (NASDAQ: YGMZ)

Established in 2002 and headquartered in Shenzhen,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 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.

MINGZHULOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of

As of

June30,

December31,

2022

2021

USD

USD

(Unaudited)

ASSETS

CURRENT ASSETS

Cash

$

3,710,346

$

5,752,117

Accounts receivable,net

23,309,930

3,650,005

Prepayments

4,393,454

5,473,938

Other receivables

1,497,652

1,540,044

Loans receivable*

35,398,123

22,487,767

Amount due from related parties

126,159

705,280

Total current assets

68,435,664

39,609,151

NON-CURRENT ASSET

Property and equipment,net

10,126,671

12,224,582

Deferred tax assets

60,289

35,491

Deposits

9,683,305

10,327,872

Goodwill

34,434,968

20,152,890

Total non-current asset

54,305,233

42,740,835

Total assets

$

122,897

$

82,349,986

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Short-term bank borrowings

$

9,445,666

$

7,579,324

Accounts payable

10,571,148

1,344,532

Other payables and accrued liabilities

28,528,141

19,269,124

Amount due to related parties

2,843,454

294,344

Tax payable

5,705,718

3,133,294

Current maturities of long-term bank borrowings

298,592

269,009

Current portion of capital lease and financing obligations

104,726

2,267,248

Current maturities of loans from other financial institutions

-

144,126

Total current liabilities

57,445

34,301,001

NON-CURRENT LIABILITIES

Long-term bank borrowings

-

179,339

Long-term portion of capital lease and financing obligations

525,516

200,712

Total non-current liabilities

525,516

380,051

Total liabilities

58,022,961

34,681,052

SHAREHOLDERS' EQUITY

Ordinary shares: $0.001 par value,50,000 shares

authorized,22,960,277and19,134,277shares issued and

outstanding as of June 30,2022 and December 31,

respectively**

22,960

19,134

Share subscription receivables

(847,086)

(847,086)

Additional paid-in capital

57,421,485

41,792,071

Statutory reserves

1,003,009

916,148

Retained earnings

7,265

5,929,043

Accumulated other comprehensive (loss) income

(369,697)

(140,376)

Total shareholders' equity

64,717,936

47,668,934

Total liabilities and shareholders' equity

$

122,986

*

Loans receivable mainly comprise of interest-free advances to third parties as a result of strategic

business cooperation.

**

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.

MINGZHULOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

For the Six Months Ended June 30,

2022

2021

USD

USD

REVENUES

$

60,330,761

$

9,602,080

COSTS AND EXPENSES

Transportation costs

17,953,860

8,229,288

Costs of rental services

24,962,970

-

Costs of insurance services

12,606

-

General and administrative expenses

1,410

932,409

Sales and marketing expenses

1,675,095

53,443

Total costs and expenses

58,422,941

9,215,140

INCOME FROM OPERATIONS

1,907,820

386,940

OTHER (EXPENSES) INCOME

Interest expenses

(652,372)

(235,268)

Other expenses

(358,267)

(657,745)

Other income

1,237,049

191,048

Total other income (expenses),net

226,410

(701,965)

INCOME (LOSS) BEFORE INCOME TAXES

2,230

(315,025)

PROVISION FOR INCOME TAXES

489,147

40,719

NET INCOME

1,083

(355,744)

OTHER COMPREHENSIVE (LOSS) INCOME

Foreign currency translation adjustment

(229,321)

(394,292)

COMPREHENSIVE INCOME

$

1,415,762

$

(750,036)

Weighted average shares used in computation:

Basic*

21,429,877

14,387,374

Diluted*

20,885,442

15,985,367

(LOSS) EARNINGS PER SHARE - BASIC*

$

0.07

$

(0.02)

(LOSS) EARNINGS PER SHARE - DILUTED*

$

0.07

$

(0.02)

*

Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February

12,2020.

MINGZHULOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

Share

Additional

Accumulated

Other

Comprehensive

Shares*

Amount

Subscription

Paid-in

Statutory

Retained Earnings

Income

Total

Receivables

Capital

Reserve

(Loss)

USD

USD

USD

USD

USD

USD

USD

BALANCE,

December 31,2021

19,277

$

19,134

$

(847,086)

$

41,071

$

916,148

$

5,043

$

(140,376)

$

47,934

Net income (loss)

for the period

-

-

-

-

-

1,083

-

1,083

Foreign currency

translation adjustment

-

-

-

-

-

-

(229,321)

(229,321)

Appropriation to

statutory reserve

-

-

-

-

86,861

(86,861)

-

-

Issuance of shares

for acquisition

3,826,000

3,826

-

15,629,414

-

-

-

15,633,240

BALANCE,

June 30,2022

22,277

$

22,960

$

(847,086)

$

57,485

$

1,009

$

7,265

$

(369,697)

$

64,936

MINGZHULOGISTICS HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended June 30,

2022

2021

USD

USD

Cash flows from operating activities:

Net income (loss)

$

1,083

$

(355,744)

Adjustments to reconcile net income to net cash provided (used in

by operating activities:

Gain on disposals of equipment

-

(5,532)

Amortization of deferred financing fees

26,607

57,199

Depreciation for property and equipment

3,441,564

747,316

Deferred income tax (benefit) expenses

(24,798)

32,122

Changes in operating assets and liabilities

Accounts receivable

(19,659,925)

3,051,083

Operating supplies

-

(81,282)

Prepayments

1,080,484

(9,370,842)

Other receivables

702,011

(5,888,995)

Loans receivable

(12,292)

-

Deposits

-

(4,031)

Accounts payable

9,226,616

(776,760)

Other payables and accrued liabilities

9,259,017

9,129,748

Tax payables

2,572,424

(1,558,220)

Net cash used in operating activities

(4,032,209)

(5,023,938)

Cash flows from investing activities:

Purchases of equipment

(1,343,653)

(57,204)

Cash from acquisition of subsidiary

410,863

-

Net cash used in investing activities

(932,790)

(57,204)

Cash flows from financing activities:

Proceeds from short-term bank borrowings

2,988,620

4,532

Repayment of short-term bank borrowings

(1,122,278)

(5,185,311)

Repayment of long-term bank borrowings

(149,756)

-

Repayments of loans from other financial institutions

(144,126)

-

Repayments of obligations under capital leases

(1,864,325)

(236,116)

Amounts advanced from related parties

3,128,231

4,158,734

Repayments to related parties

-

(13,698)

Proceeds from initial public offering

-

18,474,763

Net cash provided by financing activities

2,836,366

7,653,904

Effect of exchange rate change on cash

86,862

15,536

Net (decrease) increase in cash,cash equivalents and restricted cash

(2,041,771)

2,588,298

Cash,restricted cash at beginning of the period

5,117

11,605,625

Cash at end of the period

$

3,346

$

14,193,923

Supplemental disclosure of cash flow information:

Interest paid

$

242,386

$

200,435

Income tax paid

$

769,924

$

990,349

Supplemental non-cash investing and financing information:

Non-cash capital leases to acquire revenue equipment

$

-

$

(118,883)

Uncollected receivable from disposal of revenue equipment

$

-

$

9,221

Reconciliation to amounts on consolidated balance sheets:

Cash

$

3,346

$

4,693,923

Restricted cash

-

9,500,000

Total cash and restricted cash

$

3,923

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