MingZhu Logistics Holdings Limited (YGMZ) stock surged 13.63% in the current market trading session at the price of $2.00 following the Share Purchase Agreement to obtain CheYi Network. The company, headquartered in Shenzhen, provides 4A-rated professional trucking services.
YGMZ Announced Share Purchase Agreement
On 29th December 2021, YGMZ published entering into a Share Purchase Agreement to obtain 100 percent equity interest of Cheyi (BVI) Limited. The acquisition will offer YGMZ’s clients additional platform enhancements. It directly matches the company’s strategic approach, which includes the addition of best-of-breed enterprises and products.
Under the agreement, the total consideration to acquire 100% equity ownership is approximately $29,466,032. The two earnout payments are due 13 months following the Cheyi BVI’s audited financial statements. The transaction has expected to close on 31st December 2021.
Chairman and Chief Executive Officer of YGMZ, Mr. Jinlong Yang, remarked that they are pleased to add CheYi Network to their team. The company brings a unique integrated platform that will offer its services and support to drivers. This addition will widen their portfolio and act as the centerpiece for their diversified approach. They will keep accelerating the growth by deploying capital in both inorganic and organic opportunities, Yang addition.
YGMZ Six Months 2021 Financial Results
On 23rd December 2021, YGMZ reported its earnings report for the six months ended 30th June 2021 and presented its business highlights. Revenue totaled $9.6M for the six months ended 30th June 2021. It represents a rise of $0.7M, or 8.2%, from $8.9M for the same period of 2020.
Operating income was $0.38M for the first half of 2021. It increased 24.0% from $0.31M for the same six months of 2020. For the six months ended 30th June 2021, gross profit increased 15.0% to $1.4M. Gross profit was $1.2M for the same six months of last year. On 30th June 2021, YGMZ had $14.2M balance in cash and restricted cash. Cash and restricted cash totaled $11.6M on 31st December 2020.