From AI-Powered Logistics Networks to Premium Liquor Distribution, MingZhu Logistics Holdings Limited (NASDAQ:YGMZ) Diversified Growth Strategy is Transforming Industries and Creating Value for Shareholders

2nd largest trucking service provider in the Guangdong region in 2017

Addressing Critical Market Needs with Innovative Solutions

In today's evolving market, traditional logistics frameworks struggle with demands for efficiency, real-time connectivity, and advanced technological integration. Businesses face challenges in maintaining reliable supply chains, adapting to AI-driven transformations, and achieving seamless global network communication. Additionally, the premium liquor distribution sector in China lacks quality branded Baijiu products. MingZhu Logistics addresses these needs with cutting-edge technologies like satellite-based communication, AI-powered logistics platforms, and driverless technologies. Our strategic diversification into high-margin industries ensures meeting market demands and creating substantial shareholder value.

Enormous Market Opportunity for Exponential Growth

The China Freight and Logistics Market is poised for significant expansion, with an estimated size of $1.22 trillion in 2024 and a projected growth to $1.78 trillion by 2030. This impressive growth rate, with a CAGR of 6.39% during the forecast period (2024-2030), underscores the immense potential and scale of the opportunity for investors. MingZhu Logistics, with its innovative solutions and strategic acquisitions, is well-positioned to capitalize on this burgeoning market. Our advanced logistics technologies and premium liquor distribution services align perfectly with the increasing demand, driving substantial growth and delivering remarkable value to our stakeholders.

Greetings Investors!

Welcome to an exciting opportunity with MingZhu Logistics Holdings Limited (NASDAQ:YGMZ). The recent acquisition of Oxylus Global and partnership with Carbonomi Group highlights aggressive diversification and growth acceleration strategies. These strategic moves leverage cutting-edge technologies like AI, satellite-based communication, and IoT infrastructure, transforming traditional logistics into a high-performance, intelligent network.

The China Freight and Logistics Market, estimated at $1.22 trillion in 2024 and expected to grow to $1.78 trillion by 2030 at a CAGR of 6.39%, presents substantial market potential. Innovative logistics solutions and premium liquor distribution services align with market demand, driving significant growth and value for stakeholders.

Join this dynamic venture and capitalize on these opportunities in logistics innovation and market expansion. Your support is crucial as we embark on this transformative journey towards success and profitability.

MingZhu Logistics Agrees to Acquire Oxylus Global; Company Targeting Continued Aggressive Diversification and Growth Acceleration Strategy

"Oxylus is fast becoming an industry leader with a proven track record, which is a testament to its strong vision, leadership, culture and execution. We are confident the addition of Oxylus's robust and successful platform will accelerate our growth, while significantly expanding our future opportunities. We expect the acquisition will create significant value over the long-term for all shareholders."

MingZhu Logistics Partners with Carbonomi Group to Build High-Performance Satellite-Based Intelligent Logistics Network

"As bulk commodity logistics undergoes a digital transformation and a global digital unified market emerges, the logistics sector must prioritize fortifying and thoroughly modernizing its traditional framework. This evolution offers a significant, enduring opportunity for MingZhu and Carbonomi, as there are unaddressed requirements in numerous sectors including construction, transportation, agriculture, retail, and hospitality, among others. Crucially, this collaboration seamlessly aligns with our core business and capitalizes on our established reputation in the logistics field for delivering comprehensive, end-to-end support to customers. Simultaneously, it opens up substantial avenues for generating shareholder value."

Top Reasons to Have YGMZ on Your Radar *

  • 01
    Strategic Acquisitions: Recent acquisitions of Oxylus Global and Mingfu Liquor showcase YGMZ's strategic expansion into high-growth sectors like AI, satellite communications, and premium liquor distribution, positioning the company for accelerated revenue growth.
  • 02
    Technological Innovation: YGMZ is at the forefront of integrating AI and IoT technologies into logistics through partnerships with industry leaders like Carbonomi Group, enhancing operational efficiency and customer satisfaction.
  • 03
    Market Opportunity: With the China Freight and Logistics Market projected to grow from $1.22 trillion in 2024 to $1.78 trillion by 2030, YGMZ's robust growth strategy aligns with substantial market potential and increasing demand for advanced logistics solutions.
  • 04
    Diversified Revenue Streams: From trucking services to premium liquor distribution, YGMZ's diverse revenue streams mitigate risks and capitalize on multiple sectors within the logistics and consumer goods industries.
  • 05
    Financial Performance: YGMZ reported a 40.1% increase in revenues to $89,002,243 for the year ended December 31, 2023, driven by strategic acquisitions and expanded market presence.
  • 06
    Gross Margin Expansion: Despite industry challenges, YGMZ achieved a 3.5% gross margin from continued operations in 2023, up from 4.3% in 2022, supported by higher-margin acquisitions like Liquor Alliance.
  • 07
    Strong Financial Health: YGMZ maintains a satisfactory net debt to equity ratio of 37.5%, ensuring financial stability and flexibility for future growth initiatives.
  • 08
    Quality Earnings: YGMZ demonstrates high-quality earnings, reflecting prudent financial management and strategic investment in profitable ventures.
  • 09
    Valuation: At a Price-To-Earnings Ratio of 17.4x, YGMZ presents as a compelling value compared to the US Transportation industry average of 25.1x, offering potential upside for investors.
  • 10
    Visionary Leadership: Under the leadership of Chairman and CEO Mr. Jinlong Yang, YGMZ continues to pioneer transformative strategies that capitalize on emerging market trends and technological advancements.

Stay ahead of the curve and consider adding MingZhu Logistics Holdings Limited (NASDAQ:YGMZ) to your watchlist* today.

*See our Important Notice and Disclaimer below for a detailed discussion on compensation, risks, the risks associated with forward looking statements, the need to seek the advice of a professional investment advisor before investing, and more.

Company Overview

Discover MingZhu Logistics Holdings Limited (NASDAQ:YGMZ): Innovating Logistics and Consumer Markets with Strategic Vision and Growth

4A-Grade Trucking Service Provider in China

2nd largest trucking service provider in the Guangdong region in 2017

Mingzhu is a trucking service provider in China with over 21 years of experience in the transportation industry. It was our first operating subsidiary formed 2002. It has been accredited by the China Federation of Logistics and Purchasing as a 4A-grade trucking service provider. Its transportation services operate out of two terminals, one in the Guangdong region, and the other in the Xinjiang region. It primarily provides dedicated trucking services within the PRC. It has created a successful business model that has allowed us to expand our customer base and market coverage whilst maintaining good relationships with our existing customers. To further expand our market shares in Xinjiang region, we acquired Feipeng, which focuses on the short-distance coal transportation in Xinjiang region.

We have a sizable fleet and a network of subcontractors, which enables us to provide reliable and flexible trucking services

Self-owned fleet

Subcontractors’ fleet

Over 85% Served

(and counting)

Our delivery network covers 29 out of the 34 provinces and autonomous regions in China, representing over 85% of network coverage.

An Elite Provider of Logistics and Transportation Services to All Businesses

“Logistics promotes the economy and connects the world.”

Chairman Jinlong Yang

FUELED BY FOCUS

We achieve constant innovation in logistics by bringing together great people and systems.

MingZhu Logistics to Acquire Mingfu Liquor; Expands Premium Liquor Business in China

"The premium liquor business is one of our fastest growing businesses known for is very attractive, higher margins. We have been focused on building our own Baijiu brand and premium liquor customization OBM (Original Brand Manufacturer) services. As we expected, the synergies and adjacency to our core business are making our expansion into the commercial liquor distribution market a natural fit for us, with considerable opportunities for further growth, increased profitability and long-term success – all of which are in-line with our focus on creating value for shareholders."

MingZhu Logistics Signs Non-Binding Letter of Intent to Acquire Driverless Auto Technologies and Intellectual Property Portfolio Valued Between US$80 Million and US$90 Million

"We are very excited about this potential acquisition. Given the significant revenue contribution from our core transportation and logistics businesses, we are always focused on expanding growth and increasing operating efficiencies for both MingZhu and our customers. Over the past few years, there has been a lot of interest, investment and development in driverless auto technologies. We have taken a conservative approach in deploying these systems across our logistics platform and fleets in order to allow time for the refinement and achievement of necessary safety and reliability benchmarks. The market has now reached a point in its development where we believe it is viable and it makes sense to move forward with our long-term deployment plans."

Awards and Recognitions

Accredited by the China Federation of Logistics & Purchasing as a 4A-grade trucking services company for the period of September 2020 to September 2021.

A 4A-grade trucking services provider must meet the criteria of being able to cover routes across provinces and have (1) RMB300 million to RMB1.65 billion freight revenue per year, (2) have been operating for at least three years to five years, (3) have RMB200 million to RMB1.1 billion total assets (no higher than 70% of debt ratio), (4) own 400 to 1500 transport vehicles (or total weight of 2000 to 7500 tones), (5) have 30-50 operating outlets, and (6) operate an effective institution with operating system for management, finance, statistics, and have technical departments in place.

Recognized as a Green Card Enterprise by the Shenzhen Bureau of Transportation in 2007 and 2008

Growth Strategies

  • Attract/Retain Talents

    • Attract, retain, and develop the best talent in the industry across all levels
    • Provide training and other education to equip employees with additional skills
  • Expand/Upgrade Fleet

    • Acquire additional tractors, trailers and trucks
    • Upgrade and replace existing transportation vehicles with liquefied natural gas-powered transportation vehicles
    • Minimize fleet downtime and disruption of our services
  • Strengthen Info. Tech. System

    • Acquire a customized integrated transportation tracking system to better monitor job completion progress
    • Acquire additional hardware to support the implementation of the system
  • Expand Customer Base

    • Maintain good relationships with existing customers and suppliers
    • Seek out new customers through marketing activities such as participating in trade fairs and functions
  • Expand In New Markets

    • Target market/ geographic regions with high demand but untapped by competitors
    • Devote more resources to increase presence in Xinjiang and other emerging regions by strengthening sales and marketing and forming more strategic alliances
  • Acquire/Invest in Strategic Entities

    • Plan to pursue selected M&As and form strategic alliances to complement the organic growth of existing operations
    • Highly fragmented market with top 5 players only accounting for 0.71% of the Guangdong market in 2017 (Frost and Sullivan Report, July 2019)

China Freight and Logistics Market

  • The China Freight and Logistics Market size is estimated at 1.22 trillion USD in 2024, and is expected to reach 1.78 trillion USD by 2030, growing at a CAGR of 6.39% during the forecast period (2024-2030).
  • China Transport: Freight Turnover increased at a CAGR of 6.88% from 23,178,269.600 Ton-km mn in 2022 to 24,774,500.000 Ton-km mn in 2023. This data is updated yearly, averaging 3,590,890.000 Ton-km mn from Dec 1949 (Median) to 2023, with 57 observations. The data reached an all-time high of 24,774,500.000 Ton-km mn in 2023 and a record low of 25,786.000 Ton-km mn in 1949. China Transport: Freight Turnover data remains active in CEIC and is reported by the Ministry of Transport. The data is categorized under China Premium Database’s Transportation and Storage Sector – Table CN.TA: Transport: Freight Turnover.

Industry Growth Drivers

  • The growth of the trucking service market is driven by population growth, economic growth, particularly the e-commerce boom, the infrastructure buildout, and government support.
Source: National Bureau of Statistics; The Frost & Sullivan Report, July 2019* *Information not updated to reflect the effects of COVID-19 on total population, nominal GDP, per capita annual disposable income and road mileage in China

The Guangdong Market

  • Total road freight traffic volume in Guangdong grew at a CAGR of 3.1% from 2.61 billion tons in 2013 to 3.05 billion tons in 2018 and is projected to further grow at a CAGR of 2.9% to 3.52 billion tons in 2023.
  • Revenue of the trucking service market in Guangdong reached RMB92.8 billion (approximately $13.5 billion) in 2017 with a CAGR of 9.2% from 2012 to 2017, and is projected to further grow to RMB124.2 billion (approximately $18.1 billion) in 2022.
  • Guangdong’s advantageous location, bordering the southeast coast of China, also known as the beginning of “The Silk Roads”, gives it easy access to many ports and is ideal for domestic and foreign trade. • Guangdong has taken efforts to improve their port and transportation network infrastructure significantly.
  • The Guangdong government has issued many supportive policies to standardize and modernize the transportation industry
Source: National Bureau of Statistics; The Frost & Sullivan Report, July 2019* *Information not updated to reflect the effects of COVID-19 on road freight traffic volume and revenue of trucking service market in Guangdong

The Xinjiang Market

  • Xinjiang houses a crucial segment of the Silk Road leading to Euroasia and is expected to benefit from the “One Belt, One Road” initiative.
  • Xinjiang’s GDP grew from approximately RMB0.75 trillion (approximately $0.11 trillion) in 2012 to RMB0.96 trillion (approximately $0.14 trillion) in 2016 and is expected to further rise to RMB 1.42 trillion (approximately $0.20 trillion) in 2021.
  • Xinjiang’s road mileage increased from 165.9 thousand kilometers in 2012 to 185.2 thousand kilometers in 2017.
  • The volume of road freight in Xinjiang grew at a CAGR of 7.4% from 596.2 million tons in 2013 to 850.3 million tons in 2018 and is projected to further increase to 1,154.1 million tons in 2023.
  • Market growth is primarily driven by continuous road upgrading and economic development in the area.
Source: National Bureau of Statistics; The Frost & Sullivan Report, July 2019* *Information not updated to reflect the effects of COVID-19 on road mileage and road freight traffic volume in Xinjiang

Competition

Ranking of Top 5 Trucking Service Providers (Guangdong), 2017

  • Xinjiang houses a crucial segment of the Silk Road leading to Euroasia and is expected to benefit from the “One Belt, One Road” initiative.
  • Highly competitive and fragmented with thousands of small players, none of which dominates the market.
  • Ranked 2nd largest trucking service provider in the Guangdong region*.
  • Top 5 players only accounted for 0.71% of the transportation service market in the Guangdong region in 2017*.
  • Service and price are the principal factors considered by customers in the trucking service industry.
  • Increasing entry barriers include: 1) having an established transportation network with multiple transport lines that can support the transport needs of customers, heavy initial, 2) subsequent capital investments for acquiring manpower, equipment, and for business expansion, and long-term customer relationships, and 3) customers’ preference for working with businesses with an existing track record and a strong reputation.
Source: The Frost and Sullivan Report, July 2019

Total Revenue of Trucking Service Market in Guangdong in 2017: RMB92.8 billion (approximately $13.5 billion)

In Summary…

MingZhu Logistics Holdings Limited (Nasdaq: YGMZ) stands poised at the forefront of transformative growth in logistics, consumer services, and technology integration. With a strategic focus on expanding through acquisitions and innovative partnerships, YGMZ has solidified its position as a leader in logistics solutions, bolstered by a robust network spanning key regions in China.

Driven by a commitment to operational excellence and customer-centric services, YGMZ continues to diversify its portfolio, evidenced by recent ventures into premium liquor distribution and cutting-edge AI-driven logistics networks. This strategic pivot aligns perfectly with global trends towards digitalization and sustainable logistics practices, ensuring YGMZ remains agile and competitive in a rapidly evolving market landscape.

Investors* keen on growth and stability will find YGMZ's strong financial performance and strategic acquisitions compelling. With a clear trajectory towards enhancing shareholder value and leveraging emerging technologies like AI and satellite communication, YGMZ presents a promising opportunity in the dynamic sectors of logistics and consumer services.

*See our Important Notice and Disclaimer below for a detailed discussion on compensation, risks, the risks associated with forward looking statements, the need to seek the advice of a professional investment advisor before investing, and more.

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(Last updated: July 09, 2024 @ 9:15 AM )

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