MingZhu Logistics Holdings Ltd · OTC:YGMZF
MingZhu Logistics — IPO Roadshow (October 2020)
28 slides from MingZhu Logistics's IPO roadshow presentation, Oct 5, 2020
Slide 1: MingZhu Logistics Holdings Limited Investor Presentation
1 Nasdaq: YGMZ MingZhu Logistics Holdings Limited Investor Presentation October 2020
Slide 2: Safe Harbor & Free Writing Prospectus Statement
2 Safe Harbor & Free Writing Prospectus Statement Readers are cautioned that securities of MingZhu Logistics Holdings Limited (the “Company,” “we,” “our” or “us) are highly speculative . No representation or warranty, expressed or implied, is or will be made and, save in the case of intention or fra
Slide 3: Company at a Glance
3 Company at a Glance Years of Operation 18 2019 Net Income $1.6M 2 nd largest trucking service provider in the Guangdong region in 2017 3A - grade trucking service provider in China 2019 Revenue $29.4M Regional Terminals 2 Trailers 83 Tractors 132
Slide 4: Table of Contents
4 Table of Contents 1 2 3 4 5 Company Introduction Business Overview Industry Analysis Financials Offering Summary & Investment Highlight
Slide 5: Offering Summary
5 Offering Summary Issuer MingZhu Logistics Holdings Limited Securities Ordinary Shares Exchange/Ticker Nasdaq CM : YGMZ Pre - Offering Shares Outstanding 9 , 000 , 000 Number of Shares Offered 3,000,000 (3,450,000 if full exercise of the underwriters’ over - allotment option) Post - Offering Shares
Slide 6: Investment Highlights
6 2 5 3 4 1 IPO and Nasdaq listing will provide additional capital and publicity, allowing for growth acceleration through fleet expansion, operational improvement, and strategic acquisitions and alliances. Wide - open field with no dominant player ( top 5 players only accounted for 0.71% of the Gua
Slide 7: Company Overview
7 == Company Overview 51.7 % Revenue for 2019 Guangdong Terminal 48.3 % Xinjiang Terminal • Over 18 years of operating history • Operate through a mix of self - owned fleet and subcontractors' fleet • Offer both network density and broad geographic coverage to meet customers’ diverse transportation
Slide 8: Corporate Structure and History
8 Corporate Structure and History 2002 2010 2018 2020 MingZhu Logistics Holdings Limited (Cayman Islands) MingZhu Investment Limited (BVI) YGMZ (Hong Kong) Limited 100% 100% 100% 100% Outside of China Inside China 100% Shenzhen Yangang Mingzhu Freight Industry Co., Ltd. (PRC) Shenzhen Yangang Mingzh
Slide 9: Management
9 Management Jinlong Yang Chairman & CEO • Chairman and CEO of the Company since April 2018 • Executive Director and General Manager of MingZhu since August 2012; joined MingZhu as a sales manager in 2009 • Previously an officer at the Exit and Entry Frontier Inspection Stations in Shenzhen • Bachel
Slide 10: Independent Directors
10 Independent Directors Mikael Charette Independent Director • Independent director of the Company starting the effective date of the Registration Statement • Vice Chairman and Director of the Canadian Chamber of Commerce in Shanghai since April 2019 • Vice President of Fung & Yu CPA Ltd. since Apr
Slide 11: Delivery Network
11 Delivery Network Highway Transportation Regional Transportation XINJIANG . SHENZHEN, GUANGDONG Our delivery network covers 29 out of the 34 provinces and autonomous regions in China, representing 85.3% of network coverage.
Slide 12: Fleet
12 Fleet We have a sizable fleet and a network of subcontractors, which enables us to provide reliable and flexible trucking services Self - owned fleet • 132 tractors and 83 trailers • Invested in 61 of Liquefied Natural Gas (LNG) transportation vehicles to reduce carbon emissions • Install GPS sys
Slide 13: Customers and Suppliers
13 Customers and Suppliers CUSTOMERS : SUPPLIERS : (Huizhou Branch)
Slide 14: Awards and Recognitions
14 Awards and Recognitions Accredited by the China Federation of Logistics & Purchasing as a 3A - grade trucking services company for the
Slide 15: Competitive Strengths
15 Competitive Strengths Long - Standing Relationship • Strong customer base across different industries • 40 customers during 2019 • Over 9 years of business relationship with customers like Best Inc. and ANE Group Substantial Industry Experience • Over 18 years of operation in the transportation s
Slide 16: Growth Strategies
16 Growth Strategies • Attract, retain, and develop the best talent in the industry across all levels • Provide training and other education to equip employees with additional skills • Acquire additional tractors, trailers and trucks • Upgrade and replace existing transportation vehicles with liquef
Slide 17: China's Trucking Service Market
17 China ’ s Trucking Service Market Source: National Bureau of Statistics; The Frost & Sullivan Report, July 2019* *Information not updated to reflect the effects of COVID - 19 on the trucking service market in China • The revenue of China’s trucking service market grew at a CAGR of 1.6% from RMB4.
Slide 18: Industry Growth Drivers
18 Industry Growth Drivers 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 incom e and road mileage in China • The growth of the trucking servic
Slide 19: The Guangdong Market
19 The Guangdong Market 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 marke t in Guangdong • Total road freight traffic volume in Guangdong gr
Slide 20: The Xinjiang Market
20 The Xinjiang Market 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 • Xinjiang houses a crucial segment of the Silk Road leading to Euroasia and
Slide 21: Current Environment and Future Trends
21 Current Environment and Future Trends Unit: thousand kilometers Source: The Frost & Sullivan Analysis 890.2 962.9 1278.5 4008.2 4773.5 1978 1986 1998 2010 2017 China Road Mileage Start - up Stages 1949~1978 Initial Stage 1978~1986 Rapid - growth Stage 1986~1998 Mature Stage 1998~2010 Perfecting S
Slide 22: Competition
22 Competition • Highly competitive and fragmented with thousands of small players, none of which dominates the market . • Ranked 2 nd 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
Slide 23: Comparable Valuation
23 Comparable Valuation Price Mkt Cap EV BVPS P/B Company Name Ticker 10/2/20 ($M) 10/2/20 (MRQ) TTM FY20E FY21E TTM FY20E FY21E TTM FY20E FY21E TTM FY20E FY21E (MRQ) TRUCKING Old Dominion Freight Line, Inc. ODFL $184.56 $21,655 $21,210 $25.42 $4.94 $5.17 $6.26 37.4x 35.7x 29.5x $3,940 $3,940 $4,400
Slide 24: Financial Highlights
24 Financial Highlights EPS ($) Revenue ($’000) and Operating Margin (%) ▪ Revenue increased by 6.4% to $29.4 million for 2019 and the increment was mainly attributable to the new customers obtained in the second half of 2019 and new air freight business started in July 2019 ▪ Operating margin decre
Slide 25: Income Statement
25 Income Statement Income Statement ($’000, except per share data) 2018 2019 Revenues 27,647 29,411 Transportation costs 22,399 25,358 General and administrative expenses 1,147 1,299 Sales and marketing expenses 66 78 Total costs and expenses 23,612 26,735 Income from operations 4,035 2,676 Interes
Slide 26: Balance Sheet
26 Balance Sheet Balance Sheet (US$ thousands) 2018 2019 Cash 648 224 Restricted cash 160 0 Accounts receivable, net 7,393 10,884 Operating supplies 4 0 Prepayments 1,868 1,934 Other receivables 443 430 Amount due from related parties 52 1,954 Total Current Assets 10,568 15,426 Property and equipmen
Slide 27: Statement of Cash Flows
27 Statement of Cash Flows (US$ thousands) 2018 2019 Net income 2,855 1,643 Loss on disposal of equipment 7 (26) Provision of doubtful accounts 64 34 Amortization of deferred financing fees 218 176 Depreciation for property and equipment 1,375 1,366 Deferred income tax expenses(benefit) 3 2 Changes
Slide 28: Contacts
28 Contacts At the Company : Dennis Tan +86 150 1854 1833 [email protected] Investor Relations: Tony Tian +1 732 910 9692 [email protected] At the Underwriter: Douglas K. Aguililla +1 561 620 0306 ext. 128 [email protected]
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