MingZhu Logistics(YGMZ) - 2024 Q2 - Quarterly Report

Financial Statements This section presents the company's interim consolidated financial statements, detailing its financial position, performance, and cash flows Interim Condensed Consolidated Balance Sheets As of June 30, 2024, total assets decreased to $111.8 million from $127.4 million, driven by reduced cash and receivables, while shareholders' equity declined to $40.1 million due to accumulated losses, indicating a weakening financial position Interim Condensed Consolidated Balance Sheets (USD) | Financial Item | June 30, 2024 (Unaudited) (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Total Current Assets | $66,815,839 | $83,841,763 | | Total Assets | $111,794,574 | $127,354,302 | | Total Current Liabilities | $71,147,426 | $82,676,261 | | Total Liabilities | $71,661,239 | $82,797,349 | | Total Shareholders' Equity | $40,133,335 | $44,556,953 | - Cash decreased significantly from $3.7 million to $1.3 million, and Accounts Receivable nearly halved from $31.6 million to $16.0 million between December 31, 2023, and June 30, 2024[2] - The company's equity position deteriorated, with retained earnings turning into an accumulated loss of $(4.9) million from retained earnings of $4.9 million at the end of 2023[2] Interim Condensed Consolidated Statements of Income and Comprehensive Income For the six months ended June 30, 2024, revenues sharply declined to $22.9 million, resulting in a significant operating loss of $11.1 million and a net loss of $9.8 million, a substantial deterioration from the prior year Interim Condensed Consolidated Statements of Income and Comprehensive Income (USD) | Metric | Six Months Ended June 30, 2024 (USD) | Six Months Ended June 30, 2023 (USD) | | :--- | :--- | :--- | | Revenues | $22,894,170 | $56,090,997 | | Loss from Operations | $(11,104,457) | $(901,909) | | Net Loss | $(9,798,388) | $(805,636) | | Losses Per Share - Basic | $(0.30) | $(0.04) | - Revenues for the first six months of 2024 fell by 59.2% year-over-year[3] - General and administrative expenses surged to $11.2 million from $2.1 million in the prior-year period, contributing significantly to the increased operating loss[3] - The company ceased its Car-hailing and driver management services, which had generated costs of $13.0 million in the first half of 2023, and incurred new costs related to liquor distribution[3] Interim Condensed Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity decreased from $44.6 million to $40.1 million by June 30, 2024, primarily due to a $9.8 million net loss, partially offset by new share issuance and foreign currency translation adjustments Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (USD) | Description | Amount (USD) | | :--- | :--- | | Balance, December 31, 2023 | $44,556,953 | | Net loss for the period | $(9,798,388) | | Foreign currency translation adjustment | $1,073,994 | | Issuance of shares | $4,300,776 | | Balance, June 30, 2024 | $40,133,335 | - The company's retained earnings of $4.9 million at the start of the period were wiped out by the $9.8 million net loss, resulting in an accumulated deficit of $(4.9) million[4] - The number of outstanding shares increased from 27,529,372 to 37,496,372 due to the new share issuance[4] Interim Condensed Consolidated Statements of Cash Flows For the first six months of 2024, the company's cash position deteriorated, with net cash used in operating activities worsening to $7.4 million, leading to a net decrease in cash of $2.4 million, despite positive financing activities Interim Condensed Consolidated Statements of Cash Flows (USD) | Cash Flow Activity | Six Months Ended June 30, 2024 (USD) | Six Months Ended June 30, 2023 (USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,377,714) | $(3,965,784) | | Cash provided by investing activities | $88,287 | $31,102 | | Net cash provided by financing activities | $5,336,809 | $2,703,275 | | Net decrease in cash | $(2,397,429) | $(1,379,948) | | Cash at end of the period | $1,278,953 | $4,307,363 | - The increased cash outflow from operations was primarily driven by the larger net loss, despite positive changes from non-cash items like a $5.6 million allowance for credit losses[5] - Financing activities were a key source of cash, with $5.1 million advanced from related parties being the largest contributor[5]