Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information Line Items | |
Entity Registrant Name | MingZhu Logistics Holdings Ltd |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 12,354,040 |
Amendment Flag | false |
Entity Central Index Key | 0001782037 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | E9 |
Document Annual Report | true |
Document Shell Company Report | false |
Document Transition Report | false |
Entity File Number | 001-39564 |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
CURRENT ASSETS | |||
Cash | $ 2,105,625 | $ 223,507 | |
Restricted cash | 9,500,000 | ||
Accounts receivable, net | 5,343,716 | 10,884,302 | |
Prepayments | 1,059,335 | 1,933,764 | |
Other receivables | 11,448,022 | 429,972 | |
Amount due from related parties | 741,340 | 1,954,517 | |
Total Current Assets | 30,198,038 | 15,426,062 | |
PROPERTY AND EQUIPMENT, NET | 3,448,109 | 4,595,206 | |
OTHER ASSETS | |||
Deferred tax assets | 31,852 | 19,559 | |
Deposits | 261,992 | 344,973 | |
Total other assets | 293,844 | 364,532 | |
Total assets | 33,939,991 | 20,385,800 | |
CURRENT LIABILITIES: | |||
Short-term bank borrowings | 6,551,724 | 2,606,567 | |
Accounts payable | 1,415,591 | 1,565,668 | |
Other payables and accrued liabilities | 531,120 | 626,389 | |
Amount due to related parties | 993,846 | 739,963 | |
Tax payable | 2,722,409 | 2,205,611 | |
Current maturities of long-term bank borrowings | 1,120,400 | ||
Current portion of capital lease and financing obligations | 51,135 | 711,421 | |
Current maturities of loans from other financial institutions | 235,487 | 265,281 | |
Total current liabilities | 12,501,312 | 9,841,300 | |
OTHER LIABILITIES | |||
Long-term loans from other financial institutions | 136,400 | 355,927 | |
Long-term portion of capital lease and financing obligations | 27,989 | 161,943 | |
Total other liabilities | 164,389 | 517,870 | |
Total liabilities | 12,665,701 | 10,359,170 | |
COMMITMENTS AND CONTINGENCIES | |||
Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 12,354,040 and 9,000,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively | [1] | 12,354 | 9,000 |
Share subscription receivables | (847,086) | (847,086) | |
Additional paid-in capital | 13,824,820 | 4,115,638 | |
Statutory reserves | 877,886 | 760,475 | |
Retained earnings | 6,905,718 | 6,240,833 | |
Accumulated other comprehensive (loss) income | 500,598 | (252,230) | |
Total shareholders’ equity | 21,274,290 | 10,026,630 | |
Total liabilities and shareholders’ equity | $ 33,939,991 | $ 20,385,800 | |
[1] | 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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 50,000,000 | 50,000,000 |
Ordinary shares, issued | 12,354,040 | 9,000,000 |
Ordinary shares, outstanding | 12,354,040 | 9,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
REVENUES | $ 18,793,951 | $ 29,410,550 | $ 27,646,789 | |
COSTS AND EXPENSES | ||||
Transportation costs | 16,010,644 | 25,358,456 | 22,399,066 | |
General and administrative expenses | 1,321,412 | 1,299,413 | 1,147,101 | |
Sales and marketing expenses | 50,083 | 77,615 | 65,856 | |
Total costs and expenses | 17,382,139 | 26,735,484 | 23,612,023 | |
INCOME FROM OPERATIONS | 1,411,812 | 2,675,066 | 4,034,766 | |
OTHER (EXPENSES) INCOME | ||||
Interest expenses | (374,048) | (370,682) | (355,332) | |
Other expenses | (65,828) | (12,683) | (8,204) | |
Other income | 176,802 | 172,343 | 189,685 | |
Total other expenses, net | (263,074) | (211,022) | (173,851) | |
INCOME BEFORE INCOME TAXES | 1,148,738 | 2,464,044 | 3,860,915 | |
PROVISION FOR INCOME TAXES | 366,442 | 821,250 | 1,006,028 | |
NET INCOME | 782,296 | 1,642,794 | 2,854,887 | |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | 752,828 | (121,195) | (419,684) | |
COMPREHENSIVE INCOME | $ 1,535,124 | $ 1,521,599 | $ 2,435,203 | |
Basic (in Shares) | [1] | 9,629,783 | 9,000,000 | 9,000,000 |
Diluted (in Dollars per share) | [1] | $ 9,633,993 | $ 9,000,000 | $ 9,000,000 |
EARNINGS PER SHARE - BASIC (in Shares) | [1] | 0.08 | 0.18 | 0.32 |
EARNINGS PER SHARE - DILUTED (in Dollars per share) | [1] | $ 0.08 | $ 0.18 | $ 0.32 |
[1] | 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. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Common Stock | Share Subscription Receivables | Additional Paid-in Capital | Retained Earnings Statutory Reserve | Retained Earnings Unrestricted | Accumulated Other Comprehensive Income (Loss) | Total | |
BALANCE at Dec. 31, 2017 | $ 9,000 | $ (5,506,775) | $ 7,746,086 | $ 251,360 | $ 2,252,267 | $ 288,649 | $ 5,040,587 | |
BALANCE (in Shares) at Dec. 31, 2017 | [1] | 9,000,000 | ||||||
Capital contribution | 4,659,689 | 4,659,689 | ||||||
Capital distribution due to reorganization | (3,630,448) | (3,630,448) | ||||||
Net income for the year | 2,854,887 | 2,854,887 | ||||||
Foreign currency translation adjustment | (419,684) | (419,684) | ||||||
Appropriation to statutory reserves | 286,514 | (286,514) | ||||||
BALANCE at Dec. 31, 2018 | $ 9,000 | (847,086) | 4,115,638 | 537,874 | 4,820,640 | (131,035) | 8,505,031 | |
BALANCE (in Shares) at Dec. 31, 2018 | [1] | 9,000,000 | ||||||
Net income for the year | 1,642,794 | 1,642,794 | ||||||
Foreign currency translation adjustment | (121,195) | (121,195) | ||||||
Appropriation to statutory reserves | 222,601 | (222,601) | ||||||
BALANCE at Dec. 31, 2019 | $ 9,000 | (847,086) | 4,115,638 | 760,475 | 6,240,833 | (252,230) | 10,026,630 | |
BALANCE (in Shares) at Dec. 31, 2019 | [1] | 9,000,000 | ||||||
Net income for the year | 782,296 | 782,296 | ||||||
Issuance of shares through initial public offering | $ 3,354 | 10,955,449 | 10,958,803 | |||||
Issuance of shares through initial public offering (in Shares) | [1] | 3,354,040 | ||||||
Capitalization of listing expenses | (1,246,267) | (1,246,267) | ||||||
Foreign currency translation adjustment | 752,828 | 752,828 | ||||||
Appropriation to statutory reserves | 117,411 | (117,411) | ||||||
BALANCE at Dec. 31, 2020 | $ 12,354 | $ (847,086) | $ 13,824,820 | $ 877,886 | $ 6,905,718 | $ 500,598 | $ 21,274,290 | |
BALANCE (in Shares) at Dec. 31, 2020 | [1] | 12,354,040 | ||||||
[1] | 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. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 782,296 | $ 1,642,794 | $ 2,854,887 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on disposals of equipment | (17,761) | (25,558) | 6,803 |
Provision for doubtful accounts | 82,647 | 34,356 | 63,601 |
Amortization of deferred financing fees | 124,401 | 176,391 | 217,928 |
Depreciation for property and equipment | 1,519,415 | 1,365,945 | 1,374,737 |
Deferred income tax expenses | (10,381) | 2,451 | 3,013 |
Changes in operating assets and liabilities | |||
Accounts receivable | 5,842,238 | (3,645,292) | (72,261) |
Operating supplies | 4,000 | 166,637 | |
Prepayments | 644,525 | 292,288 | (535,532) |
Other receivables | (10,187,401) | (34,961) | 247,278 |
Deposits | (189,430) | 33,692 | 87,537 |
Accounts payable | (240,887) | 741,827 | (803,359) |
Other payables and accrued liabilities | 412,064 | (314,380) | (376,775) |
Tax payables | 348,065 | 843,842 | 564,503 |
Net cash provided by operating activities | (890,209) | 1,117,395 | 3,798,997 |
Cash flows from investing activities: | |||
Purchases of equipment | (156,029) | (917,288) | (108,591) |
Proceeds from disposal of equipment | 92,082 | ||
Net cash used in by investing activities | (156,029) | (917,288) | (16,509) |
Cash flows from financing activities: | |||
Proceeds from short-term bank borrowings | 6,604,675 | 3,329,425 | 1,815,706 |
Repayment of short-term bank borrowings | (3,041,105) | (1,910,598) | (3,580,723) |
Proceeds from long-term bank borrowings | 1,361,779 | ||
Repayment of long-term bank borrowings | (1,129,747) | (173,709) | (756,544) |
Proceeds from other financial institution | 642,107 | ||
Repayments of loans from other financial institutions | (274,929) | (94,671) | |
Repayments of obligations under capital leases | (980,244) | (1,078,425) | (1,178,813) |
Amounts advanced from related parties | 10,238,023 | 9,263,395 | 7,304,612 |
Repayments to related parties | (10,062,100) | (10,766,291) | (8,547,655) |
Capital contribution | 3,916,672 | ||
Capital distribution | (3,630,448) | ||
Proceeds from initial public offering | 10,958,803 | ||
Net cash used in financing activities | 12,313,376 | (788,767) | (3,295,414) |
Effect of exchange rate change on cash | 114,980 | 3,858 | (31,513) |
Net increase (decrease) in cash and restricted cash | 11,382,118 | (584,802) | 455,561 |
Cash and restricted cash at beginning of the year | 223,507 | 808,309 | 352,748 |
Cash and restricted cash at end of the year | 11,605,625 | 223,507 | 808,309 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 310,675 | 370,682 | 345,654 |
Income tax paid | 108,207 | 43,902 | 633,290 |
Supplemental non-cash investing and financing information: | |||
Non-cash capital leases to acquire revenue equipment | 44,628 | 89,716 | 918,741 |
Capital contribution by offsetting debt | 743,017 | ||
Uncollected receivable from disposal of revenue equipment | 73,817 | 55,863 | 304,946 |
Amount due to related parties offset by other receivables | 408,534 | ||
Non-cash capital leases offset by related parties | 564,555 | 360,434 | |
Purchase of revenue equipment paid by a related party | 39,867 | ||
Purchase of revenue equipment offset by receivables | 15,082 | ||
Professional fees paid by related parties | 594,895 | ||
Reconciliation to amounts on consolidated balance sheets: | |||
Cash | 2,105,625 | 223,507 | 648,103 |
Restricted cash | 9,500,000 | 160,206 | |
Total cash | $ 11,605,625 | $ 223,507 | $ 808,309 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of business and organization | Note 1 – Nature of business and organization Mingzhu Logistics Holdings Limited and its consolidated subsidiaries (collectively referred to as the “Group” or the “Company”) primarily provide trucking and delivery services using its own truckload fleet and subcontractors to meet its customers’ diverse transportation needs across different provinces or within Guangdong and Xinjiang in the People’s Republic of China (the “PRC” or “China”). Mingzhu Logistics Holdings Limited (“MingZhu Cayman”) is a holding company incorporated in the Cayman Islands on January 2, 2018 under the laws of the Cayman Islands. The Company has no substantive operations other than holding all of the outstanding share capital of MingZhu Investment Limited (“MingZhu BVI”) established under the laws of the British Virgin Islands on January 15, 2018. MingZhu BVI is also a holding company holding all of the outstanding equity of YGMZ (Hong Kong) Limited (“MingZhu HK”) which was incorporated in Hong Kong on February 2, 2018. Reorganization A reorganization of the Company’s legal structure was completed on April 13, 2018. The reorganization involved the incorporation of MingZhu Cayman, and its wholly-owned subsidiaries, MingZhu BVI, and MingZhu HK; and the transfer of all equity ownership of Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu”) to MingZhu HK from the former shareholders of MingZhu. In consideration of the transfer, the Company issued 1,000 shares of the Company with par value $0.001 (HKD 0.01) per share to the former shareholders of MingZhu. On April 13, 2018, the former shareholders transferred their 100% ownership interest in MingZhu to MingZhu HK, which is 100% owned by MingZhu Cayman through MingZhu BVI. After the reorganization, MingZhu Cayman owns 100% equity interests of MingZhu BVI, MingZhu HK and MingZhu. The controlling shareholder of MingZhu Cayman is same as of MingZhu prior to the reorganization. MingZhu was incorporated on July 10, 2002 in Shenzhen, Guangdong under the laws of the PRC. Shenzhen Pengcheng Shengshi Logistics Co., Ltd. (“MingZhu Pengcheng”), a company providing trucking services, was incorporated on April 7, 2010 in Shenzhen, Guangdong under the laws of the PRC. Prior to the reorganization, MingZhu and MingZhu Pengcheng were under common control. On November 10, 2017, for the purpose of reorganization so that the business of the Company could be rearranged to be under a common holding company, the entire equity interest of MingZhu Pengcheng was transferred to MingZhu. These two transactions were between entities under common control, and therefore accounted for in a manner similar to the pooling of interest method. Under the pooling-of-interests method, combination between two businesses under common control is accounted for at carrying amounts with retrospective adjustment of prior period financial statements, and the equity accounts of the combining entities are combined and the difference between the consideration paid and the net assets acquired is reflected as an equity transaction (i.e., distribution to parent company). As opposed to the purchase method of accounting, no intangible assets are recognized in the transaction, and no goodwill is recognized as a result of the combination. On September 5, 2018, MingZhu HK established its wholly-owned subsidiary, Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”), a PRC company. MingZhu Management engages in providing transportation and supply chain management services. With the effect of resolutions passed by board of directors on February 12, 2020, the authorized number of ordinary shares increased from 38,000,000 to 50,000,000 with a par value of $0.001 instead of HKD 0.01 and the issued number of ordinary shares increased from 1,000 to 9,250,000 with a par value of $0.001 instead of HKD 0.01. With the effect of resolution passed by board of directors on May 21, 2020, the issued number of ordinary shares decreased from 9,250,000 to 9,000,000. As of the date hereof, the authorized number of ordinary shares is 50,000,000 with a par value of $0.001 and the issued number of ordinary shares is 9,000,000. On October 21, 2020, the Company completed the initial public offering (“IPO”) of 3,000,000 ordinary shares at a public offering price of US$4.00 per share. As of December 31, 2020, the authorized number of ordinary shares is 50,000,000 with a par value of $0.001 and the issued number of ordinary shares is 12,354,040. Since the Company and its subsidiaries are effectively controlled by the same group of the shareholders before and after the reorganization, they are considered under common control. The above-mentioned transactions were accounted for as a recapitalization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 – Summary of significant accounting policies Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities: Name Background Ownership MingZhu Investment Limited (“MingZhu BVI”) ● A British Virgin Islands company 100% owned by MingZhu Cayman ● Incorporated on January 15, 2018 ● A holding company YGMZ (Hong Kong) Limited (“MingZhu HK”) ● A Hong Kong company 100% owned by MingZhu BVI ● Incorporated on February 2, 2018 ● A holding company Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu”) ● A PRC limited liability company 100% owned by MingZhu HK ● Incorporated on July 10, 2002 ● Providing trucking services Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) ● A PRC limited liability company 100% owned by MingZhu HK ● Incorporated on September 5, 2018 ● Transportation and supply chain management services Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) ● A PRC limited liability company 100% owned by MingZhu ● Incorporated on April 7, 2010 ● Providing trucking services Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and equipment, impairment of long-lived assets, allowance for doubtful accounts, provision for contingent liabilities, revenue recognition, deferred taxes and uncertain tax position. Actual results could differ from these estimates. Foreign currency translation and transaction The functional currencies of the Company are the local currency of the country in which the subsidiaries operate. The reporting currency of the Company is the United States Dollars (“U.S. dollar”). The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency in the consolidated statement of income and comprehensive income. The functional currency of MingZhu Cayman and MingZhu BVI is U.S. dollar. The functional currency of the MingZhu HK is the Hong Kong dollar (“HKD”). The Company’s subsidiaries with operations in PRC uses the local currency, Renminbi (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. For the purpose of presenting these financial statements of subsidiaries using RMB as functional currency, the Company’s assets and liabilities are expressed in U.S. dollar at the exchange rate on the balance sheet date, which is 6.5250, 6.9618 and 6.8755 as of December 31, 2020, 2019 and 2018, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which is 6.9042, 6.9081 and 6.6090 for the years ended December 31, 2020, 2019 and 2018, respectively. For the purpose of presenting these financial statements of the subsidiary using HKD as functional currency, the Company’s assets and liabilities are expressed in U.S. dollar at the exchange rate on the balance sheet date, which is 7.7894, 7.7534 and 7.8305 as of December 31, 2020, 2019 and 2018, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which is 7.8351, 7.7559 and 7.8376 for the years ended December 31, 2020, 2019 and 2018, respectively. Cash Cash comprises of cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of December 31, 2020 and 2019, the Company did not have any cash equivalents. Cash were held in accounts at financial institutions located in the PRC‚ which is not freely convertible into foreign currencies. In addition, these balances are not covered by insurance. While management believes that these financial institutions are of high credit quality, it also continually monitors their creditworthiness. The Company and its subsidiaries have not experienced any losses in such accounts and do not believe the cash is exposed to any significant risk. Restricted cash In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. Earlier adoption is permitted. The amendments in this Update should be applied using a retrospective transition method to each period presented. On January 1, 2018, the Company adopted this guidance on a retrospective basis and have applied the changes to the consolidated statement of cash flows starting from the year ended December 31, 2016. As of December 31, 2020, there was restricted cash balance of $9.5 million which was pledged with certain bank and the maturity was more than three months. As of December 31, 2019, there was no restricted cash. As of December 31, 2018, there was restricted cash balance of $160,206. Restricted cash as December 31, 2019 mainly represents cash in bank that was frozen by court orders due to two lawsuits. On January 25, 2019 and February 22, 2019, respectively, the frozen cash balance was released when the two lawsuits were all settled. Accounts Receivable and allowance for doubtful accounts Accounts receivables are stated and carried at original invoiced amount. Accounts are considered overdue after 90 days. In establishing the required allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after all means of collection have been exhausted and that the likelihood of collection is not probable. Operating supplies Operating supplies consist primarily of tires for servicing the Company’s revenue equipment. Operating supplies are recorded at the lower of cost (on a first-in, first-out basis) or net realizable value. Tires purchased as part of revenue equipment are capitalized as part of the cost of the equipment. Replacement tires are charged to expense when placed in service. Prepayments and Deposits Prepayments are cash deposited or advanced to suppliers for purchasing goods or services that have not been received or provided and deposits made to the Company’s customers and landlord. This amount is refundable and bears no interest. Prepayment and deposit are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. Other receivables Other receivables primarily include short-term interest-free advances made to third parties, rental receivables and receivables for disposal of equipment. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. Property and equipment, net Property and equipment are stated at cost net of accumulated depreciation and impairment. Depreciation is provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service, after considering the estimated residual value which is 5% of costs. Estimated useful lives are as follows: Classification Estimated Buildings and improvements 10 years Computer and office equipment 3-5 years Revenue equipment* 5 years * Revenue equipment are trucks and trailers only used for providing trucking services. The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. We sell and lease back certain of our revenue equipment for obtaining working capital. As a result of our continued involvement, for accounting purposes in accordance with ASC 606-10-55-68, these sale and leaseback transactions are considered a financing rather than a sale. Therefore, for purposes of our Consolidated Balance Sheets, as of December 31, 2020 and 2019, $51,135 and $711,421 was recorded to “Current portion of capital lease and financing obligations”, respectively; $27,989 and 161,943 was recorded to “Long-term portion of capital lease and financing obligations”, respectively. Leases The Company accounts for all significant leases as either operating or capital. At lease inception, if the lease meets any of the following four criteria, the Company will classify it as a capital lease: (a) transfer of ownership to lessee at the end of the lease term, (b) bargain purchase option, (c) lease term is equal to 75% or more of the estimated economic life of the leased property, or (d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. Otherwise, the lease will be treated as an operating lease. Impairment of long-lived assets Long-lived assets, including property and equipment are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the years ended December 31, 2020, 2019 and 2018, no impairment of long-lived assets was recognized. Fair Value Measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels of the fair value hierarchy are as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Interest rates that are currently available to the Company for issuance of long-term debt and capital lease with similar terms and remaining maturities are used to estimate the fair value of the Company’s long-term debt. The fair value of the Company’s long-term debt approximated the carrying value at December 31, 2020 and 2019, as the weighted average interest rate on these long-term debt approximates the market rate for similar debt. Share subscription receivables Share subscription receivables represent unpaid capital contribution from the Company’s shareholders. Claims accruals With respect to cargo loss and auto liability, the Company maintains insurance coverage to protect it from certain business risks. Claims accruals represent the uninsured portion of pending claims including estimates of adverse development of known claims, plus an estimated liability for incurred but not reported claims. Upon settling claims and expenses associated with claims where it has third party coverage, the Company is generally required to initially fund payment to the claimant and seek reimbursement from the insurer. The Company shall be responsible for any loss or damages to the goods entrusted to it or any loss or damage or personal injury happened in the course of the Company’s provision of relevant trucking services. As at the date of this report the Company maintained an adequate insurance coverage in relation to the trucking services to be delivered to its customers and third-party liability. The Company has also maintained sufficient workers’ compensation for its employees. Revenue Recognition The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of January 1, 2017. Accordingly, the consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 are presented under ASC 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company elected the modified retrospective method which required a cumulative adjustment to retained earnings instead of retrospectively adjusting prior periods. The adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. Revenues are mainly generated from provision of trucking services. For each trip, The Company has a single performance obligation, to transport its customer’s freight from a specified origin to a specified destination, with the transit period typically being less than three days. The management have determined that revenue recognition over the transit period provides a reasonable estimate of the provision of services to its customers as its obligation is performed over the transit period. For loads picked up during the reporting period, but delivered in a subsequent reporting period, revenue is allocated to each period based on the transit time in each period as a percentage of total transit time. The Company subcontracts certain of its trucking services and other transportation services to external transportation companies, primarily to carry out trucking services for customers with demand of irregular delivery schedules. The Company also engages subcontractors when it is under capacity assuming its master service agreements with customers allow subcontracting. Revenue is generated from the same base of customers. The Company evaluates whether its performance obligation is a promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent) using a control model. The Company’s evaluation determined that it is in control of establishing the transaction price, managing all aspects of the shipments process and taking the risk of loss for delivery, collection, and returns. Based on its evaluation of the control model, the Company determined that all of its major businesses act as the principal rather than the agent within their revenue arrangements and such revenues are reported on a gross basis. The Company applies the practical expedient in Topic 606 that permits the Company to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period as the Company’s contracts have an expected length of one year or less. The Company also applies the practical expedient in Topic 606 that permits the recognition of incremental costs of obtaining contracts as an expense when incurred if the amortization period of such costs is one year or less. These costs are included in purchased transportation costs. The Company’s performance obligations represent the transaction price allocated to future reporting periods for freight services started but not completed at the reporting date. This includes the unbilled amounts and accrued freight costs for freight shipments in transit. As of December 31, 2020, the Company has $1,551 of unbilled amounts recorded in accounts receivable and $1,322 of accrued freight costs recorded in accounts payable. Disaggregated information of revenues by geographic locations are as follows: 2020 2019 2018 Guangdong province $ 13,522,929 $ 15,209,518 $ 14,426,772 Xinjiang province 5,271,022 14,201,032 13,220,017 Total revenues $ 18,793,951 $ 29,410,550 $ 27,646,789 Transportation costs The transportation costs primarily consist of fuel expenses, highway bridge expenses, insurance expenses, drivers’ wages, maintenance and repairs expenses, subcontractor fees, depreciation expenses and other expenses. Sales and marketing expenses Sales and marketing expenses primarily include advertising costs. Advertising costs are expensed as incurred and amounted to $50,083, $77,615 and $65,856 for the years ended December 31, 2020, 2019 and 2018, respectively. Employee benefit The full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were $29,100, $56,097 and $65,470 for the years ended December 31, 2020, 2019 and 2018, respectively. Value added taxes The Company is subject to value added tax (“VAT”). Revenue from provision of trucking services is generally subject to VAT at the rate of 9% starting in April 2019, at the rate of 10% starting in May 2018 to March 2019 or at the rate of 11% in April 2018 and prior. For international transportation service income, the application VAT tax rate is 0% starting from May 2016. The Company is entitled to a refund for VAT already paid on goods and services purchased. The VAT balance is recorded in tax payables on the unaudited interim condensed consolidated balance sheets. Revenues are presented net of applicable VAT. Income taxes The Company accounts for income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2020, 2019 and 2018, the diluted EPS was 0.08, 0.18 and 0.32, respectively. Statutory Reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. Segment Reporting The Company’s chief operating decision maker (“CODM”) has been identified as its CEO, who reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenues are derived from the PRC. Recent issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective approach to adoption. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. A public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. In November 2019, the FASB issued ASU No. 2019-10, by which to defer the effective date for all other entities by an additional year. As an emerging growth company, the Company has not early adopted this update and it will become effective on January 1, 2021. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10 which defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Company does not expect this standard to have a material impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. Concentrations of Risks (a) Foreign currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Company’s financial results reported in the U.S. dollar terms without giving effect to any underlying changes in the Company’s business or results of operations. Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. As a result, the Company is exposed to foreign exchange risk as revenues and results of operations may be affected by fluctuatio |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
Accounts receivable, net | Note 3 – Accounts receivable, net Accounts receivable, net consist of the following: December 31, December 31, Accounts receivable $ 5,561,392 $ 11,006,358 Allowance for doubtful accounts (217,676 ) (122,056 ) Total accounts receivable, net $ 5,343,716 $ 10,884,302 Approximately 93.0% of accounts receivable as of December 31, 2020 were collected by the date of this annual report. Movements of allowance for doubtful accounts are as follows: December 31, December 31, December 31, Beginning balance $ 122,056 $ 89,069 $ 29,518 Provision 82,647 34,356 63,601 Write off - - Exchange rate effect 12,973 (1,369 ) (4,050 ) Ending balance $ 217,676 $ 122,056 $ 89,069 |
Prepayments
Prepayments | 12 Months Ended |
Dec. 31, 2020 | |
Prepayment [Abstract] | |
Prepayments | Note 4 – Prepayments Prepayments consist of the following: December 31, December 31, Prepayments Prepayment - subcontracting $ 416,442 $ 1,096,762 Prepayment - fuel 179,954 254,291 Prepayment - insurance 92,089 176,219 Prepayment - parts and others 370,850 104,791 Deferred IPO costs - 301,701 Total prepayments $ 1,059,335 $ 1,933,764 |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Other receivables | Note 5 – Other receivables Other receivables consist of the following: December 31, December 31, Other receivables Rental receivables $ - $ 31,275 Other receivables, disposal of revenue equipment 31,082 33,705 Others 11,416,940 364,992 Total Other receivables $ 11,448,022 $ 429,972 Others primarily involve the interest-free advances to third parties. As of December 31, 2020, the outstanding balance of such interest-free advances was $11,164,933. By the end of April 30, 2021, a total of $9,625,911 were collected back and the remaining balance is expected to be fully collected by the end of June 30, 2021. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 6 – Property and equipment, net Property and equipment, net consist of the following: December 31, December 31, Property and equipment Buildings and improvements $ 1,160,259 $ 1,087,462 Computer and office equipment 21,122 19,796 Revenue equipment 8,516,665 8,812,912 Subtotal 9,698,046 9,920,170 Less: accumulated depreciation (6,249,937 ) (5,324,964 ) Property and equipment, net $ 3,448,109 $ 4,595,206 Revenue equipment under capital leases The Company leased its revenue equipment from third parties with terms of approximately 24 to 36 months and account for as a capital lease. As of December 31, 2020, carrying value and accumulated depreciation of the revenue equipment under capital leases recorded by the Company were $149,333 and $43,079, respectively. As of December 31, 2019, carrying value and accumulated depreciation of the assets under capital leases recorded by the Company were $987,640 and $952,761, respectively. Depreciation expenses for revenue equipment under capital leases were $27,888, $332,993 and $443,046 for the years ended December 31, 2020, 2019 and 2018, respectively. Depreciation expenses for the years ended December 31, 2020, 2019 and 2018 was $1,521,234 and $1,365,945 and $1,374,737, respectively. For the years ended December 31, 2020, the Company disposed revenue equipment with cost of $1,077,794 with accumulated depreciation $1,018,480 for proceeds of $78,107 resulting in disposal gain of $17,761. For the years ended December 31, 2019, the Company disposed revenue equipment with cost of $610,056 with accumulated depreciation $579,553 for proceeds of $55,863 resulting in disposal gain of $25,558. For the years ended December 31, 2018, the Company disposed revenue equipment with cost of $972,606 with accumulated depreciation $875,000 for proceeds of $90,803 resulting in disposal loss of $6,803. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Other payables and accrued liabilities | Note 7 – Other payables and accrued liabilities Other payables and accrued liabilities consist of the following: December 31, December 31, Other payables and accrued liabilities Rental deposits $ 215,268 $ 31,601 Salary payables 127,610 408,106 Others 110,540 92,542 Receipt in advance 77,702 94,140 Total Other payables and accrued liabilities $ 531,120 $ 626,389 Others primarily involve the rental expenses incurred. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2020 | |
Credit Facilities Disclosure [Abstract] | |
Credit facilities | Note 8 – Credit facilities Short-term bank borrowings Outstanding balances of Short-term bank borrowings as of December 31, 2020 and 2019 consisted of the following: Bank name Term Interest rate Collateral/ Guarantee Date of paid off December 31, December 31, The Industrial Bank Co., Ltd. (6) From April, 2020 to April, 2021 Weighted average rate of 5.65% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. April 20, 2021 $ 291,188 $ - Zhujiang Rural Bank (1) From April, 2020 to April, 2021 Weighted average rate of 6.53% Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. April 29, 2021 390,805 - China Everbright Bank (2) From October, 2020 to October, 2021 Weighted average rate of 5.30% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang and two properties owned by Mr. Jinlong Yang’s family members - 2,114,943 - Bank of Communications (3) From November, 2020 to November, 2021 Weighted average rate of 5.65% Guarantee by Mr. Jinlong Yang, one of Mr. Jinlong Yang’s family member and a third party - 3,754,788 Bank of China (4) From March, 2019 to March, 2020 Weighted average rate of 7.18% Guarantee by Mr. Jinlong Yang and Shenzhen Yangang Mingzhu Logistics Co., Ltd. (“MingZhu Logistics”), a company owned by Mr. Jinlong Yang’s sister, pledge by a property owned by Mr. Jinlong Yang’s family member and collateralized by MingZhu’s receivables March 13, 2020 $ - $ 155,850 Bank of China (4) From January 2019 to January, 2020 Weighted average rate of 7.18% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang’s family member and collateralized by MingZhu’s receivables January 7, 2020 - 439,743 The Industrial Bank Co., Ltd. (6) From April, 2019 to April, 2020 Weighted average rate of 5.65% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. April 16, 2020 - 186,733 Zhujiang Rural Bank (1) From May, 2019 to May, 2020 Weighted average rate of 6.53% Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. May 5, 2020 - 387,831 Guangdong Nanyue Bank (5) From September, 2019 to September 2020 Weighted average rate of 8.5% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang September 29, 2020 - 718,205 Guangdong Nanyue Bank (5) From November, 2019 to November, 2020 Weighted average rate of 8.5% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang November 14, 2020 - 287,282 Guangdong Nanyue Bank (5) From November, 2019 to November, 2020 Weighted average rate of 8.5% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang November 27, 2020 - 430,923 Total $ 6,551,724 $ 2,606,567 (1) In April 2019 and April 2020, the Company entered into a one-year term line of credit agreement with Zhujiang Rural Bank pursuant to which the Company may borrow up to RMB 3,000,000 (approximately $424,622). The line of credit agreement entitles the Company to enter into separate loan contracts under such line of credit. The Company utilized RMB 3,000,000 (approximately $424,622) in April 2019 and RMB 3,000,000 (approximately $424,622) in April 2020. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its unaudited interim condensed consolidated financial statements. As of December 31, 2019 and 2020, the Company had utilized all line of credit. (2) In October 2020, the Company entered into a one-year term line of credit agreement with China Everbright Bank pursuant to which the Company may borrow up to RMB 30,000,000 (approximately $4,597,701). The line of credit agreement entitles the Company to enter into separate loan contracts under such line of credit. The Company utilized RMB 15,000,000 (approximately $2,298,851) in October 2020. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its audited condensed consolidated financial statements. As of December 31, 2020, RMB 15,000,000 was not utilized by the Company. (3) In October 2020, the Company entered into a one-year term loan agreement with Bank of Communications pursuant to which the Company is able to borrow RMB 25,000,000 (approximately $3,831,418). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. (4) In December 2019, the Company rolled over into a one-year term line of credit agreement with Bank of China pursuant to which the Company may borrow up to RMB 14,000,000 (approximately $1,981,571). The line of credit agreement entitles the Company to enter into separate loan contracts under such line of credit. The Company utilized RMB 6,125,000 (approximately $866,937) in January 2019 and RMB 1,875,000 (approximately $265,389) in March 2019. For each withdraw from the line of credit, a separate loan was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in the Company’s audited condensed consolidated financial statements. As of December 31, 2019, the unutilized line of credit was RMB 3,000,000 (approximately $424,622), respectively. As of December 31, 2019, the above-mentioned line of credit had expired and the Company did not renew or roll over into new line of credit agreement with Bank of China and these loans have been repaid in full as of December 31, 2020. (5) In September 2019, the Company entered into a one-year term line of credit agreement with Guangdong Nanyue Bank pursuant to which the Company may borrow up to RMB 10,000,000 (approximately $1,415,408). The line of credit agreement entitles the Company to enter into several separate loan contracts under such line of credit. The Company utilized RMB 5,000,000 (approximately $707,704) in September 2019, RMB 2,000,000 (approximately $283,081) in November 2019 and RMB 3,000,000 (approximately $424,622) in November 2019. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its audited condensed consolidated financial statements. As of December 31, 2019, the Company had utilized all line of credit and these loans were all paid up by the end of December 31, 2020. (6) In April 16, 2019, the Company entered into a one-year term loan agreement with Industrial Bank pursuant to which the Company is able to borrow RMB 2,000,000 (approximately $306,513). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. In April 14, 2020, the Company entered into a one-year term loan agreement with Industrial Bank pursuant to which the Company is able to borrow RMB 2,600,000 (approximately $398,467). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. Interest expenses incurred from short-term bank borrowings were $194,486, $127,314 and $211,460 for the years ended December 31, 2020, 2019 and 2018, respectively. Long-term bank borrowings Outstanding balances of long-term bank borrowings as of December 31, 2020 and 2019 consisted of the following: Bank name Term Interest rate Collateral/ Guarantee Date of paid off December 31, December 31, Postal Savings Bank of China Co., Ltd.* From November, 2018 to November, 2020 Weighted average rate of 5.70% Guarantee by Mr. Jinlong Yang and third party, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang November 13, 2020 $ - $ 1,120,400 Less: current maturities - (1,120,400 ) Non-current maturities $ - $ - The maturities schedule of long-term bank borrowings is as follow: As of As of Payments due by period Less than 1 year $ - $ 1,120,400 1-2 years - - Total $ - $ 1,120,400 Interest expenses incurred from long-term bank borrowings were $52,521, $70,692 and $6,468 for the years ended December 31, 2020, 2019 and 2018, respectively. Loans from other financial institutions On September 9, 2019, MingZhu entered into a capital lease contract with Chailease International Finance Corporation (“Chailease”) for selling and leasing back of 19 tractors from September 20, 2019 to August 20, 2020 with the option to purchase such tractors at the end of the lease term for $0. The total consideration of lease is RMB 5,000,000 (approximately $766,284) which is to be made in 35 installments. The Company did not transfer its control of these tractors to Chailease and has continued its involvement with these tractors. Chailease has not obtained control of these tractors because it was limited in its ability to direct the use of, and obtain substantially all of the remaining benefits from, these tractors. Consequently, in accordance with ASC 606-10-55-68 to 70, this transaction was accounted for as a financing arrangement. The proceeds received from Chailease are presented as loan from other financial institutions on the unaudited interim condensed consolidated balance sheets. Outstanding balances of loans from other financial institutions, which mainly includes the loan from Chailease, as of December 31, 2020 and 2019 were $371,887 and $621,208, respectively. Loans were pledged by several revenue equipment with recorded carrying value of $159,007 and $256,758 and accumulated depreciation of $948,404 and $917,745 as of December 31, 2020 and 2019, respectively. The depreciation expenses of $101,741, $126,595 and nil was recorded for revenue equipment pledged under these loans for the year ended December 31, 2020, 2019 and 2018, respectively. The interest rate of these loans ranged from 7.5% to 17.0%, and the loan term was up to 36 months starting from December 2018. As of December 31, 2020 and 2019 the balance of long-term portion of loans from other financial institutions were $136,400 and $355,927, respectively and the balance of short-term portion of loans from other financial institutions were $235,487 and $265,281, respectively. Interest expenses incurred from loans from other financial institutions for the year ended December 31, 2020, 2019 and 2018 were $85,930, $28,478 and nil, respectively. The outstanding balances and maturities schedule of loans from other financial institutions is as follow: As of As of Payments due by period Less than 1 year $ 235,487 $ 265,281 1-2 years 136,400 225,340 2-3 years - 130,587 Total $ 371,887 $ 621,208 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Leases | Note 9 – Leases The Company leases certain of its revenue equipment under capital lease agreements. The terms of the capital leases expire at various dates through December, 2022. The Company has option to purchase the revenue equipment for a nominal amount at the end of the lease term. The Company has capital lease commitments for revenue equipment summarized for the following fiscal years: Minimum lease payments Present value of minimum lease payments 12 months ending December 31, 2021 $ 56,288 $ 51,135 2022 29,815 27,989 Thereafter - - Total 86,103 79,124 Less: amount representing interest (6,979 ) - Present value of minimum lease payments $ 79,124 $ 79,124 Less: current maturities (51,135 ) Capital lease obligations, long-term $ 27,989 The lease term of the Company’s capital lease obligations ranged from two to three years. Interest rates underlying the capital lease obligations ranged from 3.4% to 17.0% per annum, 3.4% to 11.1% per annum and 5.7% to 12.5% per annum for the years ended December 31, 2020, 2019 and 2018, respectively. Interest expenses incurred from capital lease were $41,110, $144,198 and $137,404 for the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s pledged revenue equipment under capital lease are as follow: Name of institution Maturities Interest Carrying amount of pledged revenue equipment Carrying amount of pledged revenue equipment China KangFu International Leasing CO., LTD. From December 3, 2020 to December 12, 2022 11.8 % $ 53,500 $ - ShanDong HOWO Auto Finance Co., Ltd. From June 20, 2019 to May 15, 2021 3.4 % 95,833 114,230 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From September 30, 2018 to September 10, 2020 11.1 % - 57,973 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From July 20, 2018 to July 10, 2020 11.1 % - 27,181 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From May 23, 2018 to May 20, 2021 7.6 % - 594,314 Shanghai Chengtai Finance Leasing Co., Ltd. From December 28, 2017 to December 29, 2020 7.5 % - 44,715 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From May 10, 2017 to June 20, 2020 10.5 % - 51,966 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From February 27, 2017 to March 20, 2020 10.5 % - 97,261 $ 149,333 $ 987,640 The Company’s capital lease obligations are secured by the lessor’s title to the leased assets. The Company entered into a lease for office space located in Shenzhen, Guangdong, China for the period from November 21, 2018 to November 20, 2023, with a rent-free period from November 21, 2018 to November 20, 2019. The total future minimum lease payments under the non-cancellable operating lease with respect to the office December 31, 2020 are payable as follows: 12 months ending December 31, 2021 467,207 2022 109,762 2023 97,566 Future minimum operating lease payments $ 674,535 Rental expense of the Company for the years ended December 31, 2020, 2019 and 2018 were $103,733, $103,675 and $38,350, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | Note 10 – Related party balances and transactions Related party balances The amount due from related parties consists of the following: RP Name Relationship Nature December 31, December 31, MingZhu Logistics Mr. Jinlong Yang’s family member as sole shareholder Lending with no interests $ 346,986 $ 1,844,661 Mr. Jinlong Yang Chairman and Chief Executive Officer Advances for operational purpose 394,354 109,856 $ 741,340 $ 1,954,517 The Company has collected all amount due from related parties by the end of June, 2021. The amount due to related parties consists of the following: RP Name Relationship Nature December 31, December 31, Exquisite Elite Limited Shareholder Advances for payment of professional fee $ 802,672 $ 594,895 Mr. Zuojie Dai Manager of MingZhu Pengcheng Advances for operational purpose 116,153 145,068 Mr. Jingwei Zhang Chief Financial Officer Advances for payment of professional fee 75,021 - $ 993,846 $ 739,963 Collateral and Guarantee The collateral and guarantee made by related parties to the Company as of December 31, 2020 consists of the following: Related Parties Institution Name Term Aggregated Principal Carrying Amount as of Guarantee by Mr. Jinlong Yang and MingZhu Logistics. The Industrial Bank Co., Ltd. From April, 2020 to April, 2021 $ 398,467 $ 291,188 Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. Zhujiang Rural Bank From April, 2020 to April, 2021 459,770 390,805 Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang and two properties owned by Mr. Jinlong Yang’s family members China Everbright Bank From October, 2020 to October, 2021 2,298,851 2,114,943 Guarantee by Mr. Jinlong Yang, one of Mr. Jinlong Yang’s family member and a third party Bank of Communications From November, 2020 to November, 2021 3,831,418 3,754,788 $ 6,988,506 $ 6,551,724 The collateral and guarantee made by related parties to the Company as of December 31, 2019 consists of the following: Related Parties Institution Name Term Aggregated Principal Carrying Amount as of Guarantee by Mr. Jinlong Yang, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang for bank borrowings Postal Savings Bank of China Co., Ltd. From November 2018 to November, 2020 $ 1,292,769 $ 1,120,400 Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang’s family member for bank borrowings Bank of China From March, 2019 to March, 2020 1,149,129 595,593 Guarantee by Mr. Jinlong Yang and Mingzhu Logistics. The Industrial Bank Co., Ltd. From April, 2019 to April, 2020 287,282 186,733 Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Mr. Jinlong Yang and his private fixed deposits of RMB 1 million. Zhujiang Rural Bank From May, 2019 to May, 2020 430,923 387,831 Guarantee by MingZhu Logistics for capital leases Chengtai Capital Lease Co., Ltd. From December, 2017 to December, 2020 535,077 191,848 Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang Guangdong Nanyue Bank From September, 2019 to September 2020 1,436,410 1,436,410 $ 5,131,590 $ 3,918,815 |
Employee Benefits Government Pl
Employee Benefits Government Plan | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits Government Plan [Abstract] | |
Employee benefits government plan | Note 11 – Employee benefits government plan The Company participates in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. PRC labor regulations require the Company to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate based on the basic monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 – Income taxes Cayman Islands The Company was incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. British Virgin Islands MingZhu BVI is incorporated in the British Virgin Islands and is not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong MingZhu HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, MingZhu HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC The Company PRC subsidiaries are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), Chinese enterprises are subject to income tax at a rate of 25% after appropriate tax adjustments. The Ministry of Finance (“MOF”) and State Administration of Taxation (“SAT”) on January 17, 2019 jointly issued Cai Shui 2019 No. 13. This clarified that from January 1, 2019 to December 31, 2021, eligible small enterprises whose first RMB 1,000,000 of annual taxable income is eligible for 75% reduction on a rate of 20% (i.e., effective rate is 5%) and the income between RMB 1,000,000 and RMB 3,000,000 is eligible for 50% reduction on a rate of 20% (i.e. effective rate is 10%). For the nine months ended September 30, 2019, MingZhu Pengcheng was eligible to employ this policy. Significant components of the income tax expense consisted of the following for the years ended December 31, 2020 2019 2018 Current income tax expense $ 376,823 $ 818,799 $ 1,003,014 Deferred income tax (benefit) expense (10,381 ) 2,451 3,014 Total $ 366,442 $ 821,250 $ 1,006,028 The tax effects of temporary difference that give rise to the deferred tax assets as of December 31, 2020 and December 31, 2019 are $129,467 and $19,559, respectively. Deferred tax assets consist of as follow As of As of Deferred tax assets: Allowance for doubtful accounts $ 31,852 $ 19,559 Contingent liabilities - - Net operating loss carryforwards: PRC 97,192 53,435 HONG KONG 9,654 1,549 138,698 74,543 Less valuation allowance (106,846 ) (54,984 ) Total deferred tax assets $ 31,852 $ 19,559 The Company evaluated the recoverable amounts of deferred tax assets and provided a valuation allowance to the extent that future taxable profits will be available against which the net operating loss and temporary difference can be utilized. The Company considers both positive and negative factors when assessing the future realization of the deferred tax assets and applied weigh to the relative impact of the evidences to the extent it could be objectively verified. The Company’s NOL was mainly from MingZhu Management’s cumulative net operating loss (“NOL”) of approximately $175,000 as of December 31, 2020 which will mostly expire in 2025. Management considers projected future losses outweighs other factors and made a full allowance of related deferred tax assets. Reconciliation of effective income tax rate is as follows for the years ended December 31: December 31, December 31, December 31, PRC statutory tax rate 25 % 25 % 25.0 % Effect of tax rate differential -5.2 % -2.2 % -0.3 % Valuation allowance deferred tax 4.9 % 2.2 % 0.1 % Non-deductible items* 7.2 % 8.3 % 1.3 % Effective tax rate 31.9 % 33.3 % 26.1 % * Non-deductible items mainly arise from expenses not deductible for tax purposes primarily including professional fees in relation to capital market planning and late penalty fees. Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2020, the Company was obliged to pay the income tax of $881,740 and the late fees of approximately $264,266 as the Company failed to pay the income tax for the year ended December 31, 2018 by May 31, 2019, the deadline for making such tax payment. On March 18, 2021, the Company has paid up all owed taxes and late fees. The Company does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months from December 31, 2020. Value added tax All of the Company’s service revenues that are earned and received in the PRC are subject to a Chinese VAT at the rate of 9% starting in April 2019, at the rate of 10% starting in May 2018 to March 2019, at the rate of 11% in April 2018 and prior of the gross proceed or at a rate approved by the Chinese local government. Taxes payable consisted of the following: December 31, December 31, VAT taxes payable $ 442,054 $ 504,673 Income taxes payable 2,272,072 1,696,252 Other taxes payable 8,283 4,686 Total $ 2,722,409 $ 2,205,611 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders’ equity | Note 13 – Shareholders’ equity Ordinary shares MingZhu Cayman was established under the laws of Cayman Islands on January 2, 2018. The authorized number of ordinary shares was 38,000,000 shares with a par value of approximate $0.001 (HKD 0.01) per ordinary share. With the effect of resolutions passed by board of directors on February 12, 2020, the authorized number of ordinary shares increased from 38,000,000 to 50,000,000 with a par value of $0.001 instead of HKD 0.01 and the issued number of ordinary shares increased from 1,000 to 9,250,000 with a par value of $0.001 instead of HKD 0.01. With the effect of resolution passed by board of directors on May 21, 2020, the issued number of ordinary shares decreased from 9,250,000 to 9,000,000. On October 21, 2020, the Company completed the initial public offering (“IPO”) of 3,000,000 ordinary shares at a public offering price of US$4.00 per share. On October 30, 2020, the underwriter and sole book-runner of the Company’s underwritten IPO, has exercised the partial over-allotment option and purchased an additional 350,000 ordinary shares of the Company at the IPO price of US$4.00 per share. On December 4, 2020, the underwriter and sole book-runner of the Company’s underwritten IPO, has further exercised the partial over-allotment option and purchased an additional 4,040 ordinary shares of the Company at the IPO price of US$4.00 per share. As of December 31, 2020, the authorized number of ordinary shares is 50,000,000 with a par value of $0.001 and the issued number of ordinary shares is 12,354,040. With the above IPO and over-allotments, the Company received total gross proceeds of $13,416,160. After deducting a sum of $2,457,357 in underwriting commission and other expenses, the Company received a total net proceeds of $10,958,803. The Company believes it is appropriate to reflect the above transactions as re-denomination and nominal issuance of shares on a retroactive basis similar to stock split or dividend pursuant to ASC 260. According to the above transactions, the Company has retroactively adjusted the shares and per share data for all periods presented. Share subscription receivables Share subscription receivables represent unpaid capital contribution from the Company’s shareholders of $847,086 and $847,086 as of December 31, 2020 and 2019, respectively. Statutory reserves In accordance with the relevant PRC laws and regulations, the Group’s subsidiaries in the PRC are required to provide for certain statutory reserves, which are appropriated from net profit as reported in accordance with PRC accounting standards. The Group’s subsidiaries in the PRC are required to allocate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. Appropriations to other types of reserves in accordance with relevant PRC laws and regulations are to be made at the discretion of the board of directors of each of the Group’s subsidiaries in the PRC. The statutory reserves are restricted from being distributed as dividends under PRC laws and regulations. The statutory reserves recorded by the Group’s subsidiaries in the PRC were $877,886 and $760,475 as of December 31, 2020 and 2019, respectively. Restricted assets As a result of these PRC laws and regulations and the requirement that distributions by the Group’s subsidiaries in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and the statutory reserves of the Group’s subsidiaries in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Group’s subsidiaries in the PRC not available for distribution, was $3,565,673 and $3,448,262 as of December 31, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 – Commitments and Contingencies Guarantee Commitments In November 2017, the MingZhu entered into guarantee agreements for a capital lease of $2,531,453 to a subcontractor. The guarantee period was from November 2017 to January 2022. In November 2017, the MingZhu entered into a guarantee agreement in which MingZhu Logistics, a related party, guaranteed for the above-mentioned capital lease. Lease Commitments The Company entered into a lease for office space located in Shenzhen, Guangdong, China for the period from November 21, 2018 to November 20, 2023. The Company’s commitments for minimum lease payment under these operating leases as of December 31, 2020 are listed in section “Note 10 – Leases”. Contingencies From time to time, the Company is party to certain legal proceedings, as well as certain asserted and unasserted claims. A contract dispute exists between MingZhu, MingZhu Pengcheng and Shengxin Wang. According to the Civil Judgement issued by the Shenzhen Intermediate People’s Court on August 23, 2018, Shengxin Wang was ordered to pay RMB 21,303 (approximately $3,098) and overdue interests thereof and pay RMB 1 (approximately $0.15) as the consideration of the vehicles to MingZhu Pengcheng and after that, MingZhu Pengcheng and MingZhu should respectively assist to transfer ownership of one tractor and one trailer to Shengxin Wang. According to the Civil Decision of Guangdong Provincial Higher People’s Court issued on December 20, 2018, Shengxin Wang’s application for retrial of the above Civil Judgement was rejected. On March 22, 2019, the Shenzhen Yantian People’s Court issued an Enforcement Order to MingZhu and MingZhu Pengcheng, which ordered MingZhu and MingZhu Pengcheng to perform relevant obligations as required by the foresaid judgement or otherwise the judgement would be enforced by the court. On May 29, 2019, a cash balance equal to Shenxin Wang’s payment obligation was frozen in his bank account and meanwhile, Shengxin Wang took over the tractor from MingZhu Pengcheng. According to the inquiry notes taken by the Yantian People’s Court Enforcement Bureau on May 30, 2019, MingZhu has made preparation for handover of the trailer to Shengxin Wang. As of the date of the this filing, Shengxin Wang has taken over the trailer, the balance half of the vehicles, from MingZhu, and the case has been concluded. However, regarding the same dispute, Shengxin Wang filed another lawsuit against MingZhu Pengcheng. According to the Civil Indictment filed by Shengxin Wang (the plaintiff) on February 26, 2019, Shengxin Wang requested that MingZhu Pengcheng (the defendant) be ordered to compensate for the stoppage loss of RMB 4,772,269 (approximately $694,098). The nature of the case was a property damage compensation dispute. According to the response notice issued by the Shenzhen Yantian People’s Court on March 20, 2019, the court has accepted this case. According to the Civil Judgment issued by the Yantian District People’s Court in Shenzhen City, Guangdong Province on August 30, 2019, the court ruled that MingZhu Pengcheng should pay damages in the amount of RMB 203,700 (approximately $29,627) to Shengxin Wang and rejected Shengxin Wang’s other claims. MingZhu Pengcheng submitted an Appeal Petition to the Shenzhen Intermediate People’s Court on September 18, 2019, requesting a change in the judgment of first instance and changing the judgment so that MingZhu Pengcheng will not have to pay the damages to Shengxin Wang. According to the summons issued by Shenzhen Intermediate People’s Court on March 9, 2020, the second trial of this case has been heard on March 26, 2020. As of the date of this filing, the court has not issued a decision. On September 4, 2018, MingZhu received an arbitration award from the Shenzhen Arbitration Committee for Labor Disputes, which ruled that MingZhu was required to pay for worker compensation to Qing Tan, Xiangyang, Haiyang Shi, and Hanxiao Shi in the aggregate amount of RMB 448,440 (approximately $65,223). Regarding the same dispute, MingZhu filed two lawsuits to the Shenzhen Yantian People’s Court, both of which were dismissed by the court. MingZhu appealed to the Shenzhen Intermediate People’s Court, both of which were also rejected. On December 21, 2018, the Shenzhen Yantian People’s Court issued an execution order which ruled that MingZhu’s property should be used to enforce its obligations under the foresaid arbitration award. On February 22, 2019, RMB 510,272 (approximately $74,961) from MingZhu’s bank account was enforced by the court. Such amount involves the damages and other charges resulting from delayed performance under the foresaid arbitration award. MingZhu filed an execution dissidence to the Shenzhen Yantian People’s Court on March 8, 2019, which was dismissed by the court on April 16, 2019. According to the execution order issued by the Shenzhen Yantian People’s Court on June 14, 2019, MingZhu has performed all its obligations under the arbitration award. On August 22, 2019, Sujin Wei (the plaintiff) submitted a Civil Complaint to the Yangjiang Yangdong District People’s Court against China Pacific Property Insurance Co., Ltd. Shenzhen Branch, MingZhu and two other defendants. The complaint requested that China Pacific Property Insurance Co., Ltd. Shenzhen Branch shall make the death and disability compensation to the plaintiff in the amount of RMB 110,000 (approximately $15,999) and compensate the plaintiff of RMB 307,328.02 (approximately $44,699) within the third party liability insurance limit and also requested that defendants Shengming Zheng and MingZhu shall be jointly and severally liable for the foregoing claims, and the litigation fee in this case shall be borne by the four defendants. According to the response notice issued by the Yangjiang Yangdong District People’s Court on September 18, 2019, this case has been filed on September 4, 2019. The court held a hearing of this case on October 31, 2019. On December 16, 2019, the Yangjiang Yangdong District People’s Court issued a judgement which ordered insurance companies to compensate a sum of RMB 389,710 (approximately $54,522) to the plaintiff and other claims were rejected. MingZhu bears no compensatory obligations under this case. As of the date of this filing, China Pacific Property Insurance Co., Ltd. Shenzhen Branch and the People’s Insurance Company of China Shenzhen Branch have paid a sum of RMB 389,710 (approximately $54,522) to the plaintiff, and the case has been concluded. On January 2, 2020, Lijuan Cui, Heng Zhou, Yi Zhou, Jinxiang Zhou and Xiangni Chen (together the plaintiffs) submitted a Civil Complaint to the Queshan County People’s Court against MingZhu, Dagang Li, Zaozhuang Yizhou Automobile Transportation Co., Ltd, China Pacific Property Insurance Co., Ltd. Shenzhen Branch, Huilai Feng, Anyang Anyun Modern Logistics Co., Ltd. and the People’s Insurance Company of China Anyang Branch (together the defendants). The compliant requested that (i) the defendants compensate their loss (including the funeral expenses, death compensation, living expenses of the plaintiffs, etc.) in the amount of RMB 1,096,380.93 (approximately $153,389); (ii) the defendant China Pacific Property Insurance Co., Ltd. Shenzhen Branch shall make the compensation within the limit of its insurance liability, the defendant People’s Insurance Company of China Anyang Branch shall make the compensation within the limit of its on-board personnel liability insurance (driver) and the defendant Huilai Feng shall bear the remaining part of compensation liability exceeding the limit of insurance liability; and (iii) the litigation fee in this case shall be borne by the defendants. According to the response notice issued by the Queshan County People’s Court on January 15, 2020, this case has been filed on January 8, 2020. The trial that was scheduled in a summons, which was issued by Queshan County People’s Court on the March 12, 2020, for the March 24, 2020 was not heard. As of the date of this filing, MingZhu has not received any new summons from the court. MingZhu bears no compensatory obligations under this case. Shuanbao Zhao, Ailian Qin, Fang Zhang, Shukai Zhao and Shuqiang Zhao (together the plaintiffs) submitted a Civil Complaint to the Queshan County People’s Court against Dagang Li, Huilai Feng, MingZhu, Anyang Anyun Modern Logistics Co., Ltd., Zaozhuang Yizhou Automobile Transportation Co., Ltd, the People’s Insurance Company of China Tangyin Branch, China Pacific Property Insurance Co., Ltd. Futian Branch (together the defendants). The complaint requested that (i) the defendants compensate their loss (including the funeral expenses, death compensation, living expenses of the plaintiffs, etc.) in the amount of RMB 1,036,573.61 (approximately $148,894); (ii) the defendant the People’s Insurance Company of China Tangyin Branch shall make prioritized compensation within the scope of seat insurance liability; (iii) the defendant China Pacific Property Insurance Co., Ltd. Futian Branch shall make prioritized compensation within the scope of traffic compulsory insurance and commercial insurance liability; and (iv) the litigation fee in this case shall be borne by the defendants. According to the response notice and summons issued by the Queshan County People’s Court on April 8, 2020, this case has been filed and will be heard on April 28, 2020. MingZhu bears no compensatory obligations under this case. In accordance with ASC No. 450-20, “Loss Contingencies”, the Company will record accruals for above loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. There are no other material loss contingencies than above-mentioned ones for the years ended December 31, 2020 and 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 15 – Subsequent events On March 12, 2021, the Company closed its public offering of 3,333,335 units of its securities (each, a “Unit”), with each Unit consisting of (i) one ordinary share of the Company, par value $0.001 per share, and (ii) one warrant to purchase 0.75 ordinary share. The Company sold the Units at a price of $6.00 per Unit. The Company received gross proceeds from the Offering, before deducting estimated offering expenses payable by the Company, of approximately $18,000,000. On April 21, 2021, the underwriter and sole book-runner of our underwritten IPO, exercised its partial warrant and purchased a total of 214,286 ordinary shares of the Company with no cash in consideration. On June 14, 2021, the underwriter and sole book-runner of our underwritten IPO, exercised its partial warrant and purchased a total of 43,616 ordinary shares of the Company with no cash in consideration. The Company has 15,945,277 ordinary shares outstanding as of the date of this annual report. |
Condensed Financial Information
Condensed Financial Information of the Parent Company (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed financial information of the parent company (unaudited) | Note 16 – Condensed financial information of the parent company (unaudited) The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The subsidiary did not pay any dividend to the Company for the years presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The Company did not have other commitments, long-term obligations, or guarantees as of December 31, 2020 and 2019. PARENT COMPANY BALANCE SHEETS December 31, December 31, ASSETS CURRENT ASSETS: Cash $ 16,876 $ 17,671 Prepayments 303,102 4,590,534 Amount due from related parties 4,611,848 - Total current assets 4,931,826 4,608,205 OTHER ASSETS Investment in subsidiaries 16,342,464 5,418,425 Total assets $ 21,274,290 $ 10,026,630 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES $ - $ - COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 12,354,040 and 9,000,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively* 12,354 9,000 Share subscription receivables (847,086 ) (847,086 ) Additional paid-in capital 13,824,820 4,115,388 Statutory reserves 877,886 760,475 Retained earnings 6,905,718 6,240,833 Accumulated other comprehensive (loss) income 500,598 (252,230 ) Total shareholders’ equity 21,274,290 10,026,630 Total liabilities and shareholders’ equity $ 21,274,290 $ 10,026,630 * Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February 12, 2020. PARENT COMPANY STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Year Ended 2020 2019 2018 EQUITY INCOME OF SUBSIDIARIES $ 950,045 $ 2,020,552 $ 2,855,074 COSTS AND EXPENSES General and Administrative expenses 167,749 377,758 187 Total costs and expenses 167,749 377,758 187 INCOME FROM OPERATION 782,296 1,642,794 2,854,887 INCOME BEFORE INCOME TAXES 782,296 1,642,794 2,854,887 PROVISION FOR INCOME TAXES - - - NET INCOME 782,296 1,642,794 2,854,887 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 752,828 (121,195 ) (419,684 ) COMPREHENSIVE INCOME $ 1,535,124 $ 1,521,599 $ 2,435,203 PARENT COMPANY STATEMENT OF CASH FLOWS For the Year Ended 2020 2019 2018 Cash flows from operating activities: Net income $ 782,296 $ 1,642,794 $ 2,854,887 Adjustments to reconcile net income to cash used in operating activities: Equity income of subsidiaries (950,045 ) (2,020,552 ) (2,855,074 ) Others payable and accrued liabilities - 291,484 - Net cash used in operating activities (167,749 ) (86,274 ) (187 ) Cash flows from investing activities: - - - Net cash provided by investing activities: - - - Cash flows from financing activities: Amounts advanced from related parties 166,872 (19,145 ) (3,797,183 ) Capital contribution - - 3,916,672 Net cash provided by (used in) financing activities 166,872 (19,145 ) 119,489 Effect of exchange rate change on cash 82 30 3,758 Net increase in cash (795 ) (105,389 ) 123,060 Cash at beginning of the year 17,671 123,060 - Cash at end of the year $ 16,876 $ 17,671 $ 123,060 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities: Name Background Ownership MingZhu Investment Limited (“MingZhu BVI”) ● A British Virgin Islands company 100% owned by MingZhu Cayman ● Incorporated on January 15, 2018 ● A holding company YGMZ (Hong Kong) Limited (“MingZhu HK”) ● A Hong Kong company 100% owned by MingZhu BVI ● Incorporated on February 2, 2018 ● A holding company Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu”) ● A PRC limited liability company 100% owned by MingZhu HK ● Incorporated on July 10, 2002 ● Providing trucking services Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) ● A PRC limited liability company 100% owned by MingZhu HK ● Incorporated on September 5, 2018 ● Transportation and supply chain management services Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) ● A PRC limited liability company 100% owned by MingZhu ● Incorporated on April 7, 2010 ● Providing trucking services |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and equipment, impairment of long-lived assets, allowance for doubtful accounts, provision for contingent liabilities, revenue recognition, deferred taxes and uncertain tax position. Actual results could differ from these estimates. |
Foreign currency translation and transaction | Foreign currency translation and transaction The functional currencies of the Company are the local currency of the country in which the subsidiaries operate. The reporting currency of the Company is the United States Dollars (“U.S. dollar”). The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency in the consolidated statement of income and comprehensive income. The functional currency of MingZhu Cayman and MingZhu BVI is U.S. dollar. The functional currency of the MingZhu HK is the Hong Kong dollar (“HKD”). The Company’s subsidiaries with operations in PRC uses the local currency, Renminbi (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. For the purpose of presenting these financial statements of subsidiaries using RMB as functional currency, the Company’s assets and liabilities are expressed in U.S. dollar at the exchange rate on the balance sheet date, which is 6.5250, 6.9618 and 6.8755 as of December 31, 2020, 2019 and 2018, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which is 6.9042, 6.9081 and 6.6090 for the years ended December 31, 2020, 2019 and 2018, respectively. For the purpose of presenting these financial statements of the subsidiary using HKD as functional currency, the Company’s assets and liabilities are expressed in U.S. dollar at the exchange rate on the balance sheet date, which is 7.7894, 7.7534 and 7.8305 as of December 31, 2020, 2019 and 2018, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which is 7.8351, 7.7559 and 7.8376 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Cash | Cash Cash comprises of cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of December 31, 2020 and 2019, the Company did not have any cash equivalents. Cash were held in accounts at financial institutions located in the PRC‚ which is not freely convertible into foreign currencies. In addition, these balances are not covered by insurance. While management believes that these financial institutions are of high credit quality, it also continually monitors their creditworthiness. The Company and its subsidiaries have not experienced any losses in such accounts and do not believe the cash is exposed to any significant risk. |
Restricted cash | Restricted cash In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. Earlier adoption is permitted. The amendments in this Update should be applied using a retrospective transition method to each period presented. On January 1, 2018, the Company adopted this guidance on a retrospective basis and have applied the changes to the consolidated statement of cash flows starting from the year ended December 31, 2016. As of December 31, 2020, there was restricted cash balance of $9.5 million which was pledged with certain bank and the maturity was more than three months. As of December 31, 2019, there was no restricted cash. As of December 31, 2018, there was restricted cash balance of $160,206. Restricted cash as December 31, 2019 mainly represents cash in bank that was frozen by court orders due to two lawsuits. On January 25, 2019 and February 22, 2019, respectively, the frozen cash balance was released when the two lawsuits were all settled. |
Accounts Receivable and allowance for doubtful accounts | Accounts Receivable and allowance for doubtful accounts Accounts receivables are stated and carried at original invoiced amount. Accounts are considered overdue after 90 days. In establishing the required allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after all means of collection have been exhausted and that the likelihood of collection is not probable. |
Operating supplies | Operating supplies Operating supplies consist primarily of tires for servicing the Company’s revenue equipment. Operating supplies are recorded at the lower of cost (on a first-in, first-out basis) or net realizable value. Tires purchased as part of revenue equipment are capitalized as part of the cost of the equipment. Replacement tires are charged to expense when placed in service. |
Prepayments and Deposits | Prepayments and Deposits Prepayments are cash deposited or advanced to suppliers for purchasing goods or services that have not been received or provided and deposits made to the Company’s customers and landlord. This amount is refundable and bears no interest. Prepayment and deposit are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. |
Other receivables | Other receivables Other receivables primarily include short-term interest-free advances made to third parties, rental receivables and receivables for disposal of equipment. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost net of accumulated depreciation and impairment. Depreciation is provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service, after considering the estimated residual value which is 5% of costs. Estimated useful lives are as follows: Classification Estimated Buildings and improvements 10 years Computer and office equipment 3-5 years Revenue equipment* 5 years * Revenue equipment are trucks and trailers only used for providing trucking services. The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. We sell and lease back certain of our revenue equipment for obtaining working capital. As a result of our continued involvement, for accounting purposes in accordance with ASC 606-10-55-68, these sale and leaseback transactions are considered a financing rather than a sale. Therefore, for purposes of our Consolidated Balance Sheets, as of December 31, 2020 and 2019, $51,135 and $711,421 was recorded to “Current portion of capital lease and financing obligations”, respectively; $27,989 and 161,943 was recorded to “Long-term portion of capital lease and financing obligations”, respectively. |
Leases | Leases The Company accounts for all significant leases as either operating or capital. At lease inception, if the lease meets any of the following four criteria, the Company will classify it as a capital lease: (a) transfer of ownership to lessee at the end of the lease term, (b) bargain purchase option, (c) lease term is equal to 75% or more of the estimated economic life of the leased property, or (d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. Otherwise, the lease will be treated as an operating lease. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including property and equipment are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the years ended December 31, 2020, 2019 and 2018, no impairment of long-lived assets was recognized. |
Fair Value Measurement | Fair Value Measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels of the fair value hierarchy are as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Interest rates that are currently available to the Company for issuance of long-term debt and capital lease with similar terms and remaining maturities are used to estimate the fair value of the Company’s long-term debt. The fair value of the Company’s long-term debt approximated the carrying value at December 31, 2020 and 2019, as the weighted average interest rate on these long-term debt approximates the market rate for similar debt. |
Share subscription receivables | Share subscription receivables Share subscription receivables represent unpaid capital contribution from the Company’s shareholders. |
Claims accruals | Claims accruals With respect to cargo loss and auto liability, the Company maintains insurance coverage to protect it from certain business risks. Claims accruals represent the uninsured portion of pending claims including estimates of adverse development of known claims, plus an estimated liability for incurred but not reported claims. Upon settling claims and expenses associated with claims where it has third party coverage, the Company is generally required to initially fund payment to the claimant and seek reimbursement from the insurer. The Company shall be responsible for any loss or damages to the goods entrusted to it or any loss or damage or personal injury happened in the course of the Company’s provision of relevant trucking services. As at the date of this report the Company maintained an adequate insurance coverage in relation to the trucking services to be delivered to its customers and third-party liability. The Company has also maintained sufficient workers’ compensation for its employees. |
Revenue Recognition | Revenue Recognition The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of January 1, 2017. Accordingly, the consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 are presented under ASC 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company elected the modified retrospective method which required a cumulative adjustment to retained earnings instead of retrospectively adjusting prior periods. The adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. Revenues are mainly generated from provision of trucking services. For each trip, The Company has a single performance obligation, to transport its customer’s freight from a specified origin to a specified destination, with the transit period typically being less than three days. The management have determined that revenue recognition over the transit period provides a reasonable estimate of the provision of services to its customers as its obligation is performed over the transit period. For loads picked up during the reporting period, but delivered in a subsequent reporting period, revenue is allocated to each period based on the transit time in each period as a percentage of total transit time. The Company subcontracts certain of its trucking services and other transportation services to external transportation companies, primarily to carry out trucking services for customers with demand of irregular delivery schedules. The Company also engages subcontractors when it is under capacity assuming its master service agreements with customers allow subcontracting. Revenue is generated from the same base of customers. The Company evaluates whether its performance obligation is a promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent) using a control model. The Company’s evaluation determined that it is in control of establishing the transaction price, managing all aspects of the shipments process and taking the risk of loss for delivery, collection, and returns. Based on its evaluation of the control model, the Company determined that all of its major businesses act as the principal rather than the agent within their revenue arrangements and such revenues are reported on a gross basis. The Company applies the practical expedient in Topic 606 that permits the Company to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period as the Company’s contracts have an expected length of one year or less. The Company also applies the practical expedient in Topic 606 that permits the recognition of incremental costs of obtaining contracts as an expense when incurred if the amortization period of such costs is one year or less. These costs are included in purchased transportation costs. The Company’s performance obligations represent the transaction price allocated to future reporting periods for freight services started but not completed at the reporting date. This includes the unbilled amounts and accrued freight costs for freight shipments in transit. As of December 31, 2020, the Company has $1,551 of unbilled amounts recorded in accounts receivable and $1,322 of accrued freight costs recorded in accounts payable. Disaggregated information of revenues by geographic locations are as follows: 2020 2019 2018 Guangdong province $ 13,522,929 $ 15,209,518 $ 14,426,772 Xinjiang province 5,271,022 14,201,032 13,220,017 Total revenues $ 18,793,951 $ 29,410,550 $ 27,646,789 |
Transportation costs | Transportation costs The transportation costs primarily consist of fuel expenses, highway bridge expenses, insurance expenses, drivers’ wages, maintenance and repairs expenses, subcontractor fees, depreciation expenses and other expenses. |
Sales and marketing expenses | Sales and marketing expenses Sales and marketing expenses primarily include advertising costs. Advertising costs are expensed as incurred and amounted to $50,083, $77,615 and $65,856 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Employee benefit | Employee benefit The full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were $29,100, $56,097 and $65,470 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Value added taxes | Value added taxes The Company is subject to value added tax (“VAT”). Revenue from provision of trucking services is generally subject to VAT at the rate of 9% starting in April 2019, at the rate of 10% starting in May 2018 to March 2019 or at the rate of 11% in April 2018 and prior. For international transportation service income, the application VAT tax rate is 0% starting from May 2016. The Company is entitled to a refund for VAT already paid on goods and services purchased. The VAT balance is recorded in tax payables on the unaudited interim condensed consolidated balance sheets. Revenues are presented net of applicable VAT. |
Income taxes | Income taxes The Company accounts for income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2020, 2019 and 2018, the diluted EPS was 0.08, 0.18 and 0.32, respectively. |
Statutory Reserves | Statutory Reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. |
Segment Reporting | Segment Reporting The Company’s chief operating decision maker (“CODM”) has been identified as its CEO, who reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenues are derived from the PRC. |
Recent issued Accounting Pronouncements | Recent issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective approach to adoption. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. A public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. In November 2019, the FASB issued ASU No. 2019-10, by which to defer the effective date for all other entities by an additional year. As an emerging growth company, the Company has not early adopted this update and it will become effective on January 1, 2021. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10 which defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Company does not expect this standard to have a material impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Concentrations of Risks | Concentrations of Risks (a) Foreign currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Company’s financial results reported in the U.S. dollar terms without giving effect to any underlying changes in the Company’s business or results of operations. Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. As a result, the Company is exposed to foreign exchange risk as revenues and results of operations may be affected by fluctuations in the exchange rate between the U.S. dollar and RMB. If the RMB depreciates against the U.S. dollar, the value of RMB revenues, earnings and assets as expressed in U.S. dollar financial statements will decline. The Company has not entered into any hedging transactions in an effort to reduce its exposure to foreign exchange risk. (b) Concentration of Credit risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and restricted cash. As of December 31, 2020, and 2019, substantially all of the Company’s cash and restricted cash were held by major financial institutions located in the PRC, which management believes are of high credit quality. For the credit risk related to accounts receivable, the Company performs ongoing credit evaluations of its customers. The Company establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific customers and other information. The allowance amounts were immaterial for all periods presented. (c) Customer concentration risk For the year ended December 31, 2020, two customers accounted for 48.6% and 17.2% of the Company’s total revenues. For the year ended December 31, 2019, three customers accounted for 25.2%, 15.8% and 12.2% of the Company’s total revenues. For the year ended December 31, 2018, two customers accounted for 20.4% and 16.3% of the Company’s total revenues. No other customer accounts for more than 10% of the Company’s revenue for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, two customers accounted for 54.3% and 10.2% of the total balance of accounts receivable. As of December 31, 2019, three customers accounted for 42.8%, 17.7% and 14.7% of the total balance of accounts receivable. No other customer accounts for more than 10% of the Company’s accounts receivable as of December 31, 2020 and 2019, respectively. (d) Vendor concentration risk As of December 31, 2020, three subcontractors accounted for 39.6%, 26.1% and 17.6%. For the year ended December 31, 2019, four subcontractors accounted for 49.9%, 18.0%, 16.6% and 13.0% of the Company’s total subcontracting costs. For the year ended December 31, 2018, two subcontractors accounted for 84.9% and 14.1% of the Company’s total subcontracting costs. No other subcontractor accounts for more than 10% of the Company’s total subcontracting costs for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, three subcontractors accounted for 40.1%, 39.6% and 14.3% of the total balance of accounts payable. As of December 31, 2019, three subcontractors accounted for 24.4%, 22.1% and 11.2% of the total balance of accounts payable. No other subcontractor accounts for more than 10% of the Company’s accounts payable as of December 31, 2020 and 2019, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements | Name Background Ownership MingZhu Investment Limited (“MingZhu BVI”) ● A British Virgin Islands company 100% owned by MingZhu Cayman ● Incorporated on January 15, 2018 ● A holding company YGMZ (Hong Kong) Limited (“MingZhu HK”) ● A Hong Kong company 100% owned by MingZhu BVI ● Incorporated on February 2, 2018 ● A holding company Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu”) ● A PRC limited liability company 100% owned by MingZhu HK ● Incorporated on July 10, 2002 ● Providing trucking services Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) ● A PRC limited liability company 100% owned by MingZhu HK ● Incorporated on September 5, 2018 ● Transportation and supply chain management services Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) ● A PRC limited liability company 100% owned by MingZhu ● Incorporated on April 7, 2010 ● Providing trucking services |
Schedule of estimated useful lives of assets | Classification Estimated Buildings and improvements 10 years Computer and office equipment 3-5 years Revenue equipment* 5 years |
Schedule of disaggregated information of revenues | 2020 2019 2018 Guangdong province $ 13,522,929 $ 15,209,518 $ 14,426,772 Xinjiang province 5,271,022 14,201,032 13,220,017 Total revenues $ 18,793,951 $ 29,410,550 $ 27,646,789 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable, net | December 31, December 31, Accounts receivable $ 5,561,392 $ 11,006,358 Allowance for doubtful accounts (217,676 ) (122,056 ) Total accounts receivable, net $ 5,343,716 $ 10,884,302 |
Schedule of allowance for doubtful accounts | December 31, December 31, December 31, Beginning balance $ 122,056 $ 89,069 $ 29,518 Provision 82,647 34,356 63,601 Write off - - Exchange rate effect 12,973 (1,369 ) (4,050 ) Ending balance $ 217,676 $ 122,056 $ 89,069 |
Prepayments (Tables)
Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepayment [Abstract] | |
Schedule of Prepayments | December 31, December 31, Prepayments Prepayment - subcontracting $ 416,442 $ 1,096,762 Prepayment - fuel 179,954 254,291 Prepayment - insurance 92,089 176,219 Prepayment - parts and others 370,850 104,791 Deferred IPO costs - 301,701 Total prepayments $ 1,059,335 $ 1,933,764 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of other receivables | December 31, December 31, Other receivables Rental receivables $ - $ 31,275 Other receivables, disposal of revenue equipment 31,082 33,705 Others 11,416,940 364,992 Total Other receivables $ 11,448,022 $ 429,972 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment net | December 31, December 31, Property and equipment Buildings and improvements $ 1,160,259 $ 1,087,462 Computer and office equipment 21,122 19,796 Revenue equipment 8,516,665 8,812,912 Subtotal 9,698,046 9,920,170 Less: accumulated depreciation (6,249,937 ) (5,324,964 ) Property and equipment, net $ 3,448,109 $ 4,595,206 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables and Accrued liabilities | December 31, December 31, Other payables and accrued liabilities Rental deposits $ 215,268 $ 31,601 Salary payables 127,610 408,106 Others 110,540 92,542 Receipt in advance 77,702 94,140 Total Other payables and accrued liabilities $ 531,120 $ 626,389 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Facilities Disclosure [Abstract] | |
Schedule of short-term bank borrowings | Bank name Term Interest rate Collateral/ Guarantee Date of paid off December 31, December 31, The Industrial Bank Co., Ltd. (6) From April, 2020 to April, 2021 Weighted average rate of 5.65% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. April 20, 2021 $ 291,188 $ - Zhujiang Rural Bank (1) From April, 2020 to April, 2021 Weighted average rate of 6.53% Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. April 29, 2021 390,805 - China Everbright Bank (2) From October, 2020 to October, 2021 Weighted average rate of 5.30% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang and two properties owned by Mr. Jinlong Yang’s family members - 2,114,943 - Bank of Communications (3) From November, 2020 to November, 2021 Weighted average rate of 5.65% Guarantee by Mr. Jinlong Yang, one of Mr. Jinlong Yang’s family member and a third party - 3,754,788 Bank of China (4) From March, 2019 to March, 2020 Weighted average rate of 7.18% Guarantee by Mr. Jinlong Yang and Shenzhen Yangang Mingzhu Logistics Co., Ltd. (“MingZhu Logistics”), a company owned by Mr. Jinlong Yang’s sister, pledge by a property owned by Mr. Jinlong Yang’s family member and collateralized by MingZhu’s receivables March 13, 2020 $ - $ 155,850 Bank of China (4) From January 2019 to January, 2020 Weighted average rate of 7.18% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang’s family member and collateralized by MingZhu’s receivables January 7, 2020 - 439,743 The Industrial Bank Co., Ltd. (6) From April, 2019 to April, 2020 Weighted average rate of 5.65% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. April 16, 2020 - 186,733 Zhujiang Rural Bank (1) From May, 2019 to May, 2020 Weighted average rate of 6.53% Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. May 5, 2020 - 387,831 Guangdong Nanyue Bank (5) From September, 2019 to September 2020 Weighted average rate of 8.5% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang September 29, 2020 - 718,205 Guangdong Nanyue Bank (5) From November, 2019 to November, 2020 Weighted average rate of 8.5% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang November 14, 2020 - 287,282 Guangdong Nanyue Bank (5) From November, 2019 to November, 2020 Weighted average rate of 8.5% Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang November 27, 2020 - 430,923 Total $ 6,551,724 $ 2,606,567 |
Schedule of long-term bank borrowings | Bank name Term Interest rate Collateral/ Guarantee Date of paid off December 31, December 31, Postal Savings Bank of China Co., Ltd.* From November, 2018 to November, 2020 Weighted average rate of 5.70% Guarantee by Mr. Jinlong Yang and third party, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang November 13, 2020 $ - $ 1,120,400 Less: current maturities - (1,120,400 ) Non-current maturities $ - $ - |
Schedule of long-term maturities borrowings | As of As of Payments due by period Less than 1 year $ - $ 1,120,400 1-2 years - - Total $ - $ 1,120,400 |
Schedule of loans from financial institutions | As of As of Payments due by period Less than 1 year $ 235,487 $ 265,281 1-2 years 136,400 225,340 2-3 years - 130,587 Total $ 371,887 $ 621,208 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of capital lease commitments for revenue equipment | Minimum lease payments Present value of minimum lease payments 12 months ending December 31, 2021 $ 56,288 $ 51,135 2022 29,815 27,989 Thereafter - - Total 86,103 79,124 Less: amount representing interest (6,979 ) - Present value of minimum lease payments $ 79,124 $ 79,124 Less: current maturities (51,135 ) Capital lease obligations, long-term $ 27,989 |
Schedule of revenue equipment under capital lease | Name of institution Maturities Interest Carrying amount of pledged revenue equipment Carrying amount of pledged revenue equipment China KangFu International Leasing CO., LTD. From December 3, 2020 to December 12, 2022 11.8 % $ 53,500 $ - ShanDong HOWO Auto Finance Co., Ltd. From June 20, 2019 to May 15, 2021 3.4 % 95,833 114,230 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From September 30, 2018 to September 10, 2020 11.1 % - 57,973 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From July 20, 2018 to July 10, 2020 11.1 % - 27,181 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From May 23, 2018 to May 20, 2021 7.6 % - 594,314 Shanghai Chengtai Finance Leasing Co., Ltd. From December 28, 2017 to December 29, 2020 7.5 % - 44,715 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From May 10, 2017 to June 20, 2020 10.5 % - 51,966 Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. From February 27, 2017 to March 20, 2020 10.5 % - 97,261 $ 149,333 $ 987,640 |
Schedule of future minimum lease payments under the non-cancellable operating lease | 12 months ending December 31, 2021 467,207 2022 109,762 2023 97,566 Future minimum operating lease payments $ 674,535 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | RP Name Relationship Nature December 31, December 31, MingZhu Logistics Mr. Jinlong Yang’s family member as sole shareholder Lending with no interests $ 346,986 $ 1,844,661 Mr. Jinlong Yang Chairman and Chief Executive Officer Advances for operational purpose 394,354 109,856 $ 741,340 $ 1,954,517 |
Schedule of due to related parties | RP Name Relationship Nature December 31, December 31, Exquisite Elite Limited Shareholder Advances for payment of professional fee $ 802,672 $ 594,895 Mr. Zuojie Dai Manager of MingZhu Pengcheng Advances for operational purpose 116,153 145,068 Mr. Jingwei Zhang Chief Financial Officer Advances for payment of professional fee 75,021 - $ 993,846 $ 739,963 |
Schedule of related party collateral and guarantee | Related Parties Institution Name Term Aggregated Principal Carrying Amount as of Guarantee by Mr. Jinlong Yang and MingZhu Logistics. The Industrial Bank Co., Ltd. From April, 2020 to April, 2021 $ 398,467 $ 291,188 Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. Zhujiang Rural Bank From April, 2020 to April, 2021 459,770 390,805 Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang and two properties owned by Mr. Jinlong Yang’s family members China Everbright Bank From October, 2020 to October, 2021 2,298,851 2,114,943 Guarantee by Mr. Jinlong Yang, one of Mr. Jinlong Yang’s family member and a third party Bank of Communications From November, 2020 to November, 2021 3,831,418 3,754,788 $ 6,988,506 $ 6,551,724 Related Parties Institution Name Term Aggregated Principal Carrying Amount as of Guarantee by Mr. Jinlong Yang, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang for bank borrowings Postal Savings Bank of China Co., Ltd. From November 2018 to November, 2020 $ 1,292,769 $ 1,120,400 Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang’s family member for bank borrowings Bank of China From March, 2019 to March, 2020 1,149,129 595,593 Guarantee by Mr. Jinlong Yang and Mingzhu Logistics. The Industrial Bank Co., Ltd. From April, 2019 to April, 2020 287,282 186,733 Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Mr. Jinlong Yang and his private fixed deposits of RMB 1 million. Zhujiang Rural Bank From May, 2019 to May, 2020 430,923 387,831 Guarantee by MingZhu Logistics for capital leases Chengtai Capital Lease Co., Ltd. From December, 2017 to December, 2020 535,077 191,848 Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang Guangdong Nanyue Bank From September, 2019 to September 2020 1,436,410 1,436,410 $ 5,131,590 $ 3,918,815 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expenses | 2020 2019 2018 Current income tax expense $ 376,823 $ 818,799 $ 1,003,014 Deferred income tax (benefit) expense (10,381 ) 2,451 3,014 Total $ 366,442 $ 821,250 $ 1,006,028 |
Schedule of deferred tax assets | As of As of Deferred tax assets: Allowance for doubtful accounts $ 31,852 $ 19,559 Contingent liabilities - - Net operating loss carryforwards: PRC 97,192 53,435 HONG KONG 9,654 1,549 138,698 74,543 Less valuation allowance (106,846 ) (54,984 ) Total deferred tax assets $ 31,852 $ 19,559 |
Schedule of effective income tax rate reconciliation | December 31, December 31, December 31, PRC statutory tax rate 25 % 25 % 25.0 % Effect of tax rate differential -5.2 % -2.2 % -0.3 % Valuation allowance deferred tax 4.9 % 2.2 % 0.1 % Non-deductible items* 7.2 % 8.3 % 1.3 % Effective tax rate 31.9 % 33.3 % 26.1 % |
Schedule of taxes payable | December 31, December 31, VAT taxes payable $ 442,054 $ 504,673 Income taxes payable 2,272,072 1,696,252 Other taxes payable 8,283 4,686 Total $ 2,722,409 $ 2,205,611 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Unaudited) (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information of the Parent Company (Unaudited) (Tables) [Line Items] | |
Schedule of parent company balance sheets | December 31, December 31, ASSETS CURRENT ASSETS: Cash $ 16,876 $ 17,671 Prepayments 303,102 4,590,534 Amount due from related parties 4,611,848 - Total current assets 4,931,826 4,608,205 OTHER ASSETS Investment in subsidiaries 16,342,464 5,418,425 Total assets $ 21,274,290 $ 10,026,630 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES $ - $ - COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 12,354,040 and 9,000,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively* 12,354 9,000 Share subscription receivables (847,086 ) (847,086 ) Additional paid-in capital 13,824,820 4,115,388 Statutory reserves 877,886 760,475 Retained earnings 6,905,718 6,240,833 Accumulated other comprehensive (loss) income 500,598 (252,230 ) Total shareholders’ equity 21,274,290 10,026,630 Total liabilities and shareholders’ equity $ 21,274,290 $ 10,026,630 * Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February 12, 2020. |
Schedule of parent company statement of income and comprehensive income | For the Year Ended 2020 2019 2018 EQUITY INCOME OF SUBSIDIARIES $ 950,045 $ 2,020,552 $ 2,855,074 COSTS AND EXPENSES General and Administrative expenses 167,749 377,758 187 Total costs and expenses 167,749 377,758 187 INCOME FROM OPERATION 782,296 1,642,794 2,854,887 INCOME BEFORE INCOME TAXES 782,296 1,642,794 2,854,887 PROVISION FOR INCOME TAXES - - - NET INCOME 782,296 1,642,794 2,854,887 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 752,828 (121,195 ) (419,684 ) COMPREHENSIVE INCOME $ 1,535,124 $ 1,521,599 $ 2,435,203 |
Schedule of parent company statement of cash flows | For the Year Ended 2020 2019 2018 Cash flows from operating activities: Net income $ 782,296 $ 1,642,794 $ 2,854,887 Adjustments to reconcile net income to cash used in operating activities: Equity income of subsidiaries (950,045 ) (2,020,552 ) (2,855,074 ) Others payable and accrued liabilities - 291,484 - Net cash used in operating activities (167,749 ) (86,274 ) (187 ) Cash flows from investing activities: - - - Net cash provided by investing activities: - - - Cash flows from financing activities: Amounts advanced from related parties 166,872 (19,145 ) (3,797,183 ) Capital contribution - - 3,916,672 Net cash provided by (used in) financing activities 166,872 (19,145 ) 119,489 Effect of exchange rate change on cash 82 30 3,758 Net increase in cash (795 ) (105,389 ) 123,060 Cash at beginning of the year 17,671 123,060 - Cash at end of the year $ 16,876 $ 17,671 $ 123,060 |
Nature of Business and Organi_2
Nature of Business and Organization (Details) | Feb. 12, 2020 | Apr. 13, 2018$ / sharesshares | Oct. 21, 2020$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Apr. 13, 2018$ / shares |
Nature of Business and Organization (Details) [Line Items] | ||||||
Number of shares issued | 1,000 | |||||
Price per share | (per share) | $ 0.001 | $ 0.01 | ||||
Ownership interest description | the former shareholders transferred their 100% ownership interest in MingZhu to MingZhu HK, which is 100% owned by MingZhu Cayman through MingZhu BVI. After the reorganization, MingZhu Cayman owns 100% equity interests of MingZhu BVI, MingZhu HK and MingZhu. The controlling shareholder of MingZhu Cayman is same as of MingZhu prior to the reorganization. | |||||
Number of authorized description | the authorized number of ordinary shares increased from 38,000,000 to 50,000,000 with a par value of $0.001 instead of HKD 0.01 and the issued number of ordinary shares increased from 1,000 to 9,250,000 with a par value of $0.001 instead of HKD 0.01. With the effect of resolution passed by board of directors on May 21, 2020, the issued number of ordinary shares decreased from 9,250,000 to 9,000,000. As of the date hereof, the authorized number of ordinary shares is 50,000,000 with a par value of $0.001 and the issued number of ordinary shares is 9,000,000. | |||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Ordinary shares, shares issued | 12,354,040 | 9,000,000 | ||||
IPO [Member] | ||||||
Nature of Business and Organization (Details) [Line Items] | ||||||
Number of shares issued | 3,000,000 | |||||
Price per share (in Dollars per share) | $ / shares | $ 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020$ / shares | Dec. 31, 2020¥ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2019¥ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2018¥ / shares | Dec. 31, 2018L / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Exchange rate | (per share) | $ 7.7894 | ¥ 6.5250 | $ 7.7534 | ¥ 6.9618 | $ 7.8305 | ¥ 6.8755 | ||||
Average exchange rate | (per share) | $ 7.8351 | ¥ 6.9042 | $ 7.7559 | ¥ 6.9081 | ¥ 6.6090 | L 7.8376 | ||||
Restricted cash balance (in Dollars) | $ 9,500,000 | |||||||||
Restricted cash balance (in Dollars) | $ 160,206 | |||||||||
Property and equipment, net, percentage | 5.00% | |||||||||
Current portion of capital lease and financing obligation (in Dollars) | $ 51,135 | $ 711,421 | ||||||||
Long term portion of capital lease and financing obligations (in Dollars) | $ 27,989 | 161,943 | ||||||||
Lease property economic life percentage | 75.00% | |||||||||
Present value percentage | 90.00% | |||||||||
Unbilled amounts (in Dollars) | $ 1,551 | |||||||||
Accrued freight costs (in Dollars) | 1,322 | |||||||||
Sales and marketing expenses (in Dollars) | 50,083 | 77,615 | 65,856 | |||||||
Employee benefit amount (in Dollars) | $ 29,100 | $ 56,097 | $ 65,470 | |||||||
Value added tax, description | The Company is subject to value added tax (“VAT”). Revenue from provision of trucking services is generally subject to VAT at the rate of 9% starting in April 2019, at the rate of 10% starting in May 2018 to March 2019 or at the rate of 11% in April 2018 and prior. For international transportation service income, the application VAT tax rate is 0% starting from May 2016. The Company is entitled to a refund for VAT already paid on goods and services purchased. The VAT balance is recorded in tax payables on the unaudited interim condensed consolidated balance sheets. Revenues are presented net of applicable VAT. | |||||||||
Tax benefit percentage | 50.00% | |||||||||
Diluted ESP description | For the years ended December 31, 2020, 2019 and 2018, the diluted EPS was 0.08, 0.18 and 0.32, respectively. | |||||||||
Statutory reserves, description | Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). | |||||||||
Other Customer [Member] | Revenue [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk, description | For the year ended December 31, 2020, two customers accounted for 48.6% and 17.2% of the Company’s total revenues. | |||||||||
Customer Concentration Risk [Member] | Customer One [Member] | Revenue [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 25.20% | 20.40% | ||||||||
Customer Concentration Risk [Member] | Customer One [Member] | Accounts Receivable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 54.30% | 42.80% | ||||||||
Customer Concentration Risk [Member] | Customer Two [Member] | Revenue [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 15.80% | 16.30% | ||||||||
Customer Concentration Risk [Member] | Customer Two [Member] | Accounts Receivable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 10.20% | 17.70% | ||||||||
Customer Concentration Risk [Member] | Customer Three [Member] | Revenue [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 12.20% | |||||||||
Customer Concentration Risk [Member] | Customer Three [Member] | Accounts Receivable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 14.70% | |||||||||
Supplier Concentration Risk [Member] | Accounts Receivable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 10.00% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors One [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 39.60% | 49.90% | 84.90% | |||||||
Supplier Concentration Risk [Member] | Subcontractors Two [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 26.10% | 18.00% | 14.10% | |||||||
Supplier Concentration Risk [Member] | Subcontractors Three [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 17.60% | 16.60% | ||||||||
Supplier Concentration Risk [Member] | Subcontractors Four [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 13.00% | |||||||||
Supplier Concentration Risk [Member] | Subcontracting Costs [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | |||||||
Supplier Concentration Risk [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 10.00% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors One [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 40.10% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors One [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 24.40% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors Two [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 39.60% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors Two [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 22.10% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors Three [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 14.30% | |||||||||
Supplier Concentration Risk [Member] | Subcontractors Three [Member] | Accounts Payable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk percentage | 11.20% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements | 12 Months Ended |
Dec. 31, 2020 | |
MingZhu Investment Limited ("MingZhu BVI") [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Background | A British Virgin Islands company |
Ownership | 100% owned by MingZhu Cayman |
YGMZ (Hong Kong) Limited ("MingZhu HK") [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Background | A Hong Kong company |
Ownership | 100% owned by MingZhu BVI |
Shenzhen Yangang Mingzhu Freight Industry Co., Ltd ("MingZhu") [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Background | A PRC limited liability company |
Ownership | 100% owned by MingZhu HK |
Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd ("MingZhu Management") [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Background | A PRC limited liability company |
Ownership | 100% owned by MingZhu HK |
Shenzhen Pengcheng Shengshi Logistics Co., Ltd ("MingZhu Pengcheng") [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Background | A PRC limited liability company |
Ownership | 100% owned by MingZhu |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets | 12 Months Ended | |
Dec. 31, 2020 | ||
Buildings and improvements [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 10 years | |
Revenue equipment [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 5 years | [1] |
Minimum [Member] | Computer and office equipment [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum [Member] | Computer and office equipment [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 5 years | |
[1] | Revenue equipment are trucks and trailers only used for providing trucking services. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 18,793,951 | $ 29,410,550 | $ 27,646,789 |
Guangdong province [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 13,522,929 | 15,209,518 | 14,426,772 |
Xinjiang province [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 5,271,022 | $ 14,201,032 | $ 13,220,017 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
Percentage of accounts receivable | 93.00% |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable, net [Abstract] | ||
Accounts receivable | $ 5,561,392 | $ 11,006,358 |
Allowance for doubtful accounts | (217,676) | (122,056) |
Total accounts receivable, net | $ 5,343,716 | $ 10,884,302 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of allowance for doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of allowance for doubtful accounts [Abstract] | |||
Beginning balance | $ 122,056 | $ 89,069 | $ 29,518 |
Provision | 82,647 | 34,356 | 63,601 |
Write off | |||
Exchange rate effect | 12,973 | (1,369) | (4,050) |
Ending balance | $ 217,676 | $ 122,056 | $ 89,069 |
Prepayments (Details) - Schedul
Prepayments (Details) - Schedule of Prepayments - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Prepayments | ||
Prepayment - subcontracting | $ 416,442 | $ 1,096,762 |
Prepayment - fuel | 179,954 | 254,291 |
Prepayment - insurance | 92,089 | 176,219 |
Prepayment - parts and others | 370,850 | 104,791 |
Deferred IPO costs | 301,701 | |
Total prepayments | $ 1,059,335 | $ 1,933,764 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Apr. 30, 2021 | |
Receivables [Abstract] | ||
Outstanding loans receivables | $ 11,164,933 | |
Cash collected back amount | $ 9,625,911 |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of other receivables - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other receivables | ||
Rental receivables | $ 31,275 | |
Other receivables, disposal of revenue equipment | 31,082 | 33,705 |
Others | 11,416,940 | 364,992 |
Total Other receivables | $ 11,448,022 | $ 429,972 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment, Net (Details) [Line Items] | |||
Capital leased assets, gross | $ 149,333 | $ 987,640 | |
Capital leases accumulated depreciation | 43,079 | 952,761 | |
Depreciation expenses | 1,521,234 | $ 1,365,945 | $ 1,374,737 |
Revenue equipment | 1,077,794 | ||
Accumulated depreciation | 1,018,480 | ||
Proceeds of resulting | 78,107 | ||
Disposal gain | 17,761 | ||
Property plant and equipment disposal disclosure, description | the Company disposed revenue equipment with cost of $610,056 with accumulated depreciation $579,553 for proceeds of $55,863 resulting in disposal gain of $25,558. For the years ended December 31, 2018, the Company disposed revenue equipment with cost of $972,606 with accumulated depreciation $875,000 for proceeds of $90,803 resulting in disposal loss of $6,803. | ||
Property plant equipment disposal | $ 610,056 | 972,606 | |
Accumulated depreciation | 579,553 | 875,000 | |
Proceeds from sale of property plant and equipment | 55,863 | 90,803 | |
Gain loss on disposition of assets | 25,558 | 6,803 | |
Revenue equipment [Member] | |||
Property and Equipment, Net (Details) [Line Items] | |||
Depreciation expenses | $ 27,888 | $ 332,993 | $ 443,046 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment | ||
Property and equipment gross | $ 9,698,046 | $ 9,920,170 |
Less: accumulated depreciation | (6,249,937) | (5,324,964) |
Property and equipment, net | 3,448,109 | 4,595,206 |
Buildings and improvements [Member] | ||
Property and equipment | ||
Property and equipment gross | 1,160,259 | 1,087,462 |
Computer and office equipment [Member] | ||
Property and equipment | ||
Property and equipment gross | 21,122 | 19,796 |
Revenue equipment [Member] | ||
Property and equipment | ||
Property and equipment gross | $ 8,516,665 | 8,812,912 |
Property and equipment, net | $ 256,758 |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - Schedule of Other Payables and Accrued liabilities - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other payables and accrued liabilities | ||
Rental deposits | $ 215,268 | $ 31,601 |
Salary payables | 127,610 | 408,106 |
Others | 110,540 | 92,542 |
Receipt in advance | 77,702 | 94,140 |
Total Other payables and accrued liabilities | $ 531,120 | $ 626,389 |
Credit Facilities (Details)
Credit Facilities (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2020CNY (¥) | Apr. 30, 2020USD ($) | Apr. 30, 2020CNY (¥) | Apr. 14, 2020USD ($) | Apr. 14, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Sep. 30, 2019CNY (¥) | Apr. 30, 2019CNY (¥) | Apr. 16, 2019USD ($) | Apr. 16, 2019CNY (¥) | |
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Interest expense short term borrowings | $ 194,486 | $ 127,314 | $ 211,460 | |||||||||||||
Interest expense debt | 52,521 | $ 70,692 | 6,468 | |||||||||||||
Other financial institutions Loan, description | On September 9, 2019, MingZhu entered into a capital lease contract with Chailease International Finance Corporation (“Chailease”) for selling and leasing back of 19 tractors from September 20, 2019 to August 20, 2020 with the option to purchase such tractors at the end of the lease term for $0. The total consideration of lease is RMB 5,000,000 (approximately $766,284) which is to be made in 35 installments. The Company did not transfer its control of these tractors to Chailease and has continued its involvement with these tractors. Chailease has not obtained control of these tractors because it was limited in its ability to direct the use of, and obtain substantially all of the remaining benefits from, these tractors. Consequently, in accordance with ASC 606-10-55-68 to 70, this transaction was accounted for as a financing arrangement. The proceeds received from Chailease are presented as loan from other financial institutions on the unaudited interim condensed consolidated balance sheets. | |||||||||||||||
Property plant equipment carrying value | 3,448,109 | $ 4,595,206 | ||||||||||||||
Depreciation expenses | $ 1,519,415 | 1,365,945 | 1,374,737 | |||||||||||||
Term, loan | 36 years | |||||||||||||||
Short-term loans from institutions | $ 136,400 | 265,281 | ||||||||||||||
Long-term loans from institutions | 235,487 | 355,927 | ||||||||||||||
Interest expense long-term debt | 85,930 | 28,478 | ||||||||||||||
Revenue Equipment [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Property plant equipment carrying value | 159,007 | |||||||||||||||
Revenue equipment [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Property plant equipment carrying value | 256,758 | |||||||||||||||
Accumulated Depreciation | 948,404 | 917,745 | ||||||||||||||
Depreciation expenses | $ 101,741 | $ 126,595 | ||||||||||||||
Minimum [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Debt interest rate percentage | 7.50% | |||||||||||||||
Maximum [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Debt interest rate percentage | 17.00% | |||||||||||||||
Zhujiang Rural Bank [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||
Line of credit borrowing capacity | $ 424,622 | $ 424,622 | ¥ 3,000,000 | ¥ 3,000,000 | ||||||||||||
China Everbright Bank [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||
Line of credit borrowing capacity | $ 4,597,701 | ¥ 30,000,000 | ||||||||||||||
Line of credit, description | The Company utilized RMB 15,000,000 (approximately $2,298,851) in October 2020. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its audited condensed consolidated financial statements. As of December 31, 2020, RMB 15,000,000 was not utilized by the Company. | |||||||||||||||
Bank of Communication [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||
Line of credit borrowing capacity | $ 3,831,418 | ¥ 25,000,000 | ||||||||||||||
Bank of China [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||
Line of credit borrowing capacity | $ 1,981,571 | ¥ 14,000,000 | ||||||||||||||
Line of credit, description | The Company utilized RMB 6,125,000 (approximately $866,937) in January 2019 and RMB 1,875,000 (approximately $265,389) in March 2019. For each withdraw from the line of credit, a separate loan was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in the Company’s audited condensed consolidated financial statements. As of December 31, 2019, the unutilized line of credit was RMB 3,000,000 (approximately $424,622), respectively. | |||||||||||||||
Guangdong Nanyue Bank [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||
Line of credit borrowing capacity | $ 1,415,408 | ¥ 10,000,000 | ||||||||||||||
Line of credit, description | The Company utilized RMB 5,000,000 (approximately $707,704) in September 2019, RMB 2,000,000 (approximately $283,081) in November 2019 and RMB 3,000,000 (approximately $424,622) in November 2019. | |||||||||||||||
The Industrial Bank Co Ltd [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Line of credit borrowing capacity | $ 398,467 | ¥ 2,600,000 | $ 306,513 | ¥ 2,000,000 | ||||||||||||
Chailease [Member] | ||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||
Outstanding long-term debt | $ 371,887 | $ 621,208 |
Credit Facilities (Details) - S
Credit Facilities (Details) - Schedule of short-term bank borrowings - Short-term Debt [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Short-term Debt [Line Items] | |||
Total | $ 6,551,724 | $ 2,606,567 | |
The Industrial Bank Co Ltd [Member] | |||
Short-term Debt [Line Items] | |||
Term | [1] | From April, 2020 to April, 2021 | |
Interest rate | [1] | 5.65% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics. | |
Date of paid off | [1] | Apr. 20, 2021 | |
Total | [1] | $ 291,188 | |
Zhujiang Rural Bank [Member] | |||
Short-term Debt [Line Items] | |||
Term | [2] | From April, 2020 to April, 2021 | |
Interest rate | [2] | 6.53% | |
Collateral/ Guarantee | [2] | Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang's family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. | |
Date of paid off | [2] | Apr. 29, 2021 | |
Total | [2] | $ 390,805 | |
China Merchants Bank [Member] | |||
Short-term Debt [Line Items] | |||
Term | [3] | From October, 2020 to October, 2021 | |
Interest rate | [3] | 5.30% | |
Collateral/ Guarantee | [3] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang and two properties owned by Mr. Jinlong Yang's family members | |
Date of paid off | [3] | ||
Total | [3] | $ 2,114,943 | |
Bank of Communication [Member] | |||
Short-term Debt [Line Items] | |||
Term | [4] | From November, 2020 to November, 2021 | |
Interest rate | [4] | 5.65% | |
Collateral/ Guarantee | [4] | Guarantee by Mr. Jinlong Yang, one of Mr. Jinlong Yang's family member and a third party | |
Date of paid off | [4] | ||
Total | [4] | $ 3,754,788 | |
Bank of China [Member] | |||
Short-term Debt [Line Items] | |||
Term | [5] | From March, 2019 to March, 2020 | |
Interest rate | [5] | 7.18% | |
Collateral/ Guarantee | [5] | Guarantee by Mr. Jinlong Yang and Shenzhen Yangang Mingzhu Logistics Co., Ltd. ("MingZhu Logistics"), a company owned by Mr. Jinlong Yang's sister, pledge by a property owned by Mr. Jinlong Yang's family member and collateralized by MingZhu's receivables | |
Date of paid off | [5] | Mar. 13, 2020 | |
Total | [5] | 155,850 | |
Bank of China 1 [Member] | |||
Short-term Debt [Line Items] | |||
Term | [5] | From January 2019 to January, 2020 | |
Interest rate | [5] | 7.18% | |
Collateral/ Guarantee | [5] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang's family member and collateralized by MingZhu's receivables | |
Date of paid off | [5] | Jan. 7, 2020 | |
Total | [5] | 439,743 | |
The Industrial Bank Co Ltd 1 [Member] | |||
Short-term Debt [Line Items] | |||
Term | [1] | From April, 2019 to April, 2020 | |
Interest rate | [1] | 5.65% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics. | |
Date of paid off | [1] | Apr. 16, 2020 | |
Total | [1] | 186,733 | |
Zhujiang Rural Bank 1 [Member] | |||
Short-term Debt [Line Items] | |||
Term | [2] | From May, 2019 to May, 2020 | |
Interest rate | 6.53% | ||
Collateral/ Guarantee | Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang's family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million. | ||
Date of paid off | |||
Total | 387,831 | ||
Guangdong Nanyue Bank [Member] | |||
Short-term Debt [Line Items] | |||
Term | [6] | From September, 2019 to September 2020 | |
Interest rate | [6] | 8.50% | |
Collateral/ Guarantee | [6] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang | |
Date of paid off | [6] | ||
Total | [6] | 718,205 | |
Guangdong Nanyue Bank 1 [Member] | |||
Short-term Debt [Line Items] | |||
Term | [6] | From November, 2019 to November, 2020 | |
Interest rate | [6] | 8.50% | |
Collateral/ Guarantee | [6] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang | |
Date of paid off | [6] | ||
Total | [6] | 287,282 | |
Guangdong Nanyue Bank 2 [Member] | |||
Short-term Debt [Line Items] | |||
Term | [6] | From November, 2019 to November, 2020 | |
Interest rate | [6] | 8.50% | |
Collateral/ Guarantee | [6] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang | |
Date of paid off | [6] | ||
Total | [6] | $ 430,923 | |
[1] | In April 16, 2019, the Company entered into a one-year term loan agreement with Industrial Bank pursuant to which the Company is able to borrow RMB 2,000,000 (approximately $306,513). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. In April 14, 2020, the Company entered into a one-year term loan agreement with Industrial Bank pursuant to which the Company is able to borrow RMB 2,600,000 (approximately $398,467). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. | ||
[2] | In April 2019 and April 2020, the Company entered into a one-year term line of credit agreement with Zhujiang Rural Bank pursuant to which the Company may borrow up to RMB 3,000,000 (approximately $424,622). The line of credit agreement entitles the Company to enter into separate loan contracts under such line of credit. The Company utilized RMB 3,000,000 (approximately $424,622) in April 2019 and RMB 3,000,000 (approximately $424,622) in April 2020. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its unaudited interim condensed consolidated financial statements. As of December 31, 2019 and 2020, the Company had utilized all line of credit. | ||
[3] | In October 2020, the Company entered into a one-year term line of credit agreement with China Everbright Bank pursuant to which the Company may borrow up to RMB 30,000,000 (approximately $4,597,701). The line of credit agreement entitles the Company to enter into separate loan contracts under such line of credit. The Company utilized RMB 15,000,000 (approximately $2,298,851) in October 2020. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its audited condensed consolidated financial statements. As of December 31, 2020, RMB 15,000,000 was not utilized by the Company. | ||
[4] | In October 2020, the Company entered into a one-year term loan agreement with Bank of Communications pursuant to which the Company is able to borrow RMB 25,000,000 (approximately $3,831,418). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. | ||
[5] | In December 2019, the Company rolled over into a one-year term line of credit agreement with Bank of China pursuant to which the Company may borrow up to RMB 14,000,000 (approximately $1,981,571). The line of credit agreement entitles the Company to enter into separate loan contracts under such line of credit. The Company utilized RMB 6,125,000 (approximately $866,937) in January 2019 and RMB 1,875,000 (approximately $265,389) in March 2019. For each withdraw from the line of credit, a separate loan was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in the Company’s audited condensed consolidated financial statements. As of December 31, 2019, the unutilized line of credit was RMB 3,000,000 (approximately $424,622), respectively. As of December 31, 2019, the above-mentioned line of credit had expired and the Company did not renew or roll over into new line of credit agreement with Bank of China and these loans have been repaid in full as of December 31, 2020. | ||
[6] | In September 2019, the Company entered into a one-year term line of credit agreement with Guangdong Nanyue Bank pursuant to which the Company may borrow up to RMB 10,000,000 (approximately $1,415,408). The line of credit agreement entitles the Company to enter into several separate loan contracts under such line of credit. The Company utilized RMB 5,000,000 (approximately $707,704) in September 2019, RMB 2,000,000 (approximately $283,081) in November 2019 and RMB 3,000,000 (approximately $424,622) in November 2019. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its audited condensed consolidated financial statements. As of December 31, 2019, the Company had utilized all line of credit and these loans were all paid up by the end of December 31, 2020. |
Credit Facilities (Details) -_2
Credit Facilities (Details) - Schedule of long-term bank borrowings - Long-term Debt [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Less: current maturities | $ (1,120,400) | |
Non-current maturities | ||
Postal Savings Bank of China Co Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | From November, 2018 to November, 2020 | |
Debt instrument weighted average interest rate | 5.70% | |
Debt instrument, description | Guarantee by Mr. Jinlong Yang and third party, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang | |
Debt instrument paid off | Nov. 13, 2020 | |
Total | $ 1,120,400 |
Credit Facilities (Details) -_3
Credit Facilities (Details) - Schedule of long-term maturities borrowings - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Payments due by period | ||
Less than 1 year | $ 1,120,400 | |
1-2 years | ||
Total | $ 1,120,400 |
Credit Facilities (Details) -_4
Credit Facilities (Details) - Schedule of loans from financial institutions - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Payments due by period | ||
Less than 1 year | $ 235,487 | $ 265,281 |
1-2 years | 136,400 | 225,340 |
2-3 years | 130,587 | |
Total | $ 371,887 | $ 621,208 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases (Details) [Line Items] | |||
Interest expenses for capital lease | $ 41,110 | $ 144,198 | $ 137,404 |
Rental expenses | $ 103,733 | $ 103,675 | $ 38,350 |
Minimum [Member] | |||
Leases (Details) [Line Items] | |||
Capital lease obligation percentage | 3.40% | 3.40% | 5.70% |
Maximum [Member] | |||
Leases (Details) [Line Items] | |||
Capital lease obligation percentage | 17.00% | 11.10% | 12.50% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of capital lease commitments for revenue equipment | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule of capital lease commitments for revenue equipment [Abstract] | |
Minimum lease payments, 2021 | $ 56,288 |
Present value of minimum lease payments, 2021 | 51,135 |
Minimum lease payments, 2022 | 29,815 |
Present value of minimum lease payments, 2022 | 27,989 |
Minimum lease payments, Thereafter | |
Present value of minimum lease payments,Thereafter | |
Minimum lease payments total | 86,103 |
Present value of minimum lease payments total | 79,124 |
Less: amount representing interest (Minimum lease payments) | (6,979) |
Less: amount representing interest (Present value of minimum lease payments) | |
Minimum lease payments | 79,124 |
Present value of minimum lease payments | 79,124 |
Less: current maturities (Minimum lease payments) | (51,135) |
Capital lease obligations, long-term (Present value of minimum lease payments) | $ 27,989 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of revenue equipment under capital lease - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease carrying amount | $ 149,333 | $ 987,640 |
China KangFu International Leasing CO., LTD. [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From December 3, 2020 to December 12, 2022 | |
Capital lease interest rate percentage | 11.80% | |
Capital lease carrying amount | $ 53,500 | |
ShanDong HOWO Auto Finance Co., Ltd. [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From June 20, 2019 to May 15, 2021 | |
Capital lease interest rate percentage | 3.40% | |
Capital lease carrying amount | $ 95,833 | 114,230 |
Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From September 30, 2018 to September 10, 2020 | |
Capital lease interest rate percentage | 11.10% | |
Capital lease carrying amount | 57,973 | |
Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. One [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From July 20, 2018 to July 10, 2020 | |
Capital lease interest rate percentage | 11.10% | |
Capital lease carrying amount | 27,181 | |
Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. Two [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From May 23, 2018 to May 20, 2021 | |
Capital lease interest rate percentage | 7.60% | |
Capital lease carrying amount | 594,314 | |
Shanghai Chengtai Finance Leasing Co., Ltd. [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From December 28, 2017 to December 29, 2020 | |
Capital lease interest rate percentage | 7.50% | |
Capital lease carrying amount | 44,715 | |
Sumitomo Mitsui Finance and Leasing (China) Co., Ltd. Three [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From May 10, 2017 to June 20, 2020 | |
Capital lease interest rate percentage | 10.50% | |
Capital lease carrying amount | 51,966 | |
SumSumitomo Mitsui Finance and Leasing (China) Co., Ltd. Four [Member] | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | ||
Capital lease maturities term, description | From February 27, 2017 to March 20, 2020 | |
Capital lease interest rate percentage | 10.50% | |
Capital lease carrying amount | $ 97,261 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of future minimum lease payments under the non-cancellable operating lease | Dec. 31, 2020USD ($) |
Schedule of future minimum lease payments under the non-cancellable operating lease [Abstract] | |
2021 | $ 467,207 |
2022 | 109,762 |
2023 | 97,566 |
Future minimum operating lease payments | $ 674,535 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - Schedule of due from related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | $ 741,340 | $ 1,954,517 |
MingZhu Logistics [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Relationship | Mr. Jinlong Yang's family member as sole shareholder | |
Nature | Lending with no interests | |
Due from related parties | $ 346,986 | 1,844,661 |
Mr. Jinlong Yang [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Relationship | Chairman and Chief Executive Officer | |
Nature | Advances for operational purpose | |
Due from related parties | $ 394,354 | $ 109,856 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of due to related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | $ 993,846 | $ 739,963 |
Exquisite Elite Limited [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Relationship | Shareholder | |
Nature | Advances for payment of professional fee | |
Due to related parties | $ 802,672 | 594,895 |
Mr. Zuojie Dai [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Relationship | Manager of MingZhu Pengcheng | |
Nature | Advances for operational purpose | |
Due to related parties | $ 116,153 | $ 145,068 |
Mr. Jingwei Zhang [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Relationship | Chief Financial Officer | |
Nature | Advances for payment of professional fee | |
Due to related parties | $ 75,021 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Aggregated Principal | $ 6,988,506 | $ 5,131,590 |
Carrying Amount | $ 6,551,724 | $ 3,918,815 |
Mr. Jinlong Yang and Mingzhu Logistics Three [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | The Industrial Bank Co., Ltd. | The Industrial Bank Co., Ltd. |
Term | From April, 2020 to April, 2021 | From April, 2019 to April, 2020 |
Aggregated Principal | $ 398,467 | $ 287,282 |
Carrying Amount | $ 291,188 | $ 186,733 |
Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits of RMB 1 million [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Zhujiang Rural Bank | |
Term | From April, 2020 to April, 2021 | |
Aggregated Principal | $ 459,770 | |
Carrying Amount | $ 390,805 | |
Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang and two properties owned by Mr. Jinlong Yang’s family members [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | China Everbright Bank | |
Term | From October, 2020 to October, 2021 | |
Aggregated Principal | $ 2,298,851 | |
Carrying Amount | $ 2,114,943 | |
Mr. Jinlong Yang, one of Mr. Jinlong Yang’s family member and a third party [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Bank of Communications | |
Term | From November, 2020 to November, 2021 | |
Aggregated Principal | $ 3,831,418 | |
Carrying Amount | $ 3,754,788 | |
Mr. Jinlong Yang, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang for bank borrowings [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Postal Savings Bank of China Co., Ltd. | |
Term | From November 2018 to November, 2020 | |
Aggregated Principal | $ 1,292,769 | |
Carrying Amount | $ 1,120,400 | |
Mr. Jinlong Yang and MingZhu Logistics, pledge by a property owned by Mr. Jinlong Yang’s family member for bank borrowings [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Bank of China | |
Term | From March, 2019 to March, 2020 | |
Aggregated Principal | $ 1,149,129 | |
Carrying Amount | $ 595,593 | |
Guarantee by Mr. Jinlong Yang and one of Mr. Jinlong Yang’s family member, pledge by Mr. Jinlong Yang and his private fixed deposits of RMB 1 million. [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Zhujiang Rural Bank | |
Term | From May, 2019 to May, 2020 | |
Aggregated Principal | $ 430,923 | |
Carrying Amount | $ 387,831 | |
Guarantee by MingZhu Logistics for capital leases [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Chengtai Capital Lease Co., Ltd. | |
Term | From December, 2017 to December, 2020 | |
Aggregated Principal | $ 535,077 | |
Carrying Amount | $ 191,848 | |
Guarantee by Mr. Jinlong Yang and MingZhu Logistics, pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of related party collateral and guarantee [Line Items] | ||
Institution Name | Guangdong Nanyue Bank | |
Term | From September, 2019 to September 2020 | |
Aggregated Principal | $ 1,436,410 | |
Carrying Amount | $ 1,436,410 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes (Details) [Line Items] | |||
Effective tax rate percentage | 25.00% | 25.00% | 25.00% |
Deferred tax | $ 129,467 | $ 19,559 | |
Cumulative net operating loss | 175,000 | ||
Accrued income taxes | $ 881,740 | $ 264,266 | |
Vat, description | All of the Company’s service revenues that are earned and received in the PRC are subject to a Chinese VAT at the rate of 9% starting in April 2019, at the rate of 10% starting in May 2018 to March 2019, at the rate of 11% in April 2018 and prior of the gross proceed or at a rate approved by the Chinese local government. | ||
Hong Kong [Member] | |||
Income Taxes (Details) [Line Items] | |||
Effective tax rate percentage | 16.50% | ||
PRC [Member] | |||
Income Taxes (Details) [Line Items] | |||
Effective tax rate percentage | 25.00% | ||
Income tax, description | The Ministry of Finance (“MOF”) and State Administration of Taxation (“SAT”) on January 17, 2019 jointly issued Cai Shui 2019 No. 13. This clarified that from January 1, 2019 to December 31, 2021, eligible small enterprises whose first RMB 1,000,000 of annual taxable income is eligible for 75% reduction on a rate of 20% (i.e., effective rate is 5%) and the income between RMB 1,000,000 and RMB 3,000,000 is eligible for 50% reduction on a rate of 20% (i.e. effective rate is 10%). For the nine months ended September 30, 2019, MingZhu Pengcheng was eligible to employ this policy. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of income tax expenses - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of components of income tax expenses [Abstract] | |||
Current income tax expense | $ 376,823 | $ 818,799 | $ 1,003,014 |
Deferred income tax (benefit) expense | (10,381) | 2,451 | 3,014 |
Total | $ 366,442 | $ 821,250 | $ 1,006,028 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 31,852 | $ 19,559 |
Contingent liabilities | ||
Net operating loss carryforwards: | ||
Deferred tax assets operating loss carryforwards | 138,698 | 74,543 |
Less valuation allowance | (106,846) | (54,984) |
Total deferred tax assets | 31,852 | 19,559 |
PRC [Member] | ||
Net operating loss carryforwards: | ||
Deferred tax assets operating loss carryforwards foreign | 97,192 | 53,435 |
Hong Kong [Member] | ||
Net operating loss carryforwards: | ||
Deferred tax assets operating loss carryforwards foreign | $ 9,654 | $ 1,549 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of effective income tax rate reconciliation | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of effective income tax rate reconciliation [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of tax rate differential | (5.20%) | (2.20%) | (0.30%) |
Valuation allowance deferred tax | 4.90% | 2.20% | 0.10% |
Non-deductible items* | 7.20% | 8.30% | 1.30% |
Effective tax rate | 31.90% | 33.30% | 26.10% |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of taxes payable - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of taxes payable [Abstract] | ||
VAT taxes payable | $ 442,054 | $ 504,673 |
Income taxes payable | 2,272,072 | 1,696,252 |
Other taxes payable | 8,283 | 4,686 |
Total | $ 2,722,409 | $ 2,205,611 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Dec. 04, 2020$ / sharesshares | Oct. 30, 2020$ / sharesshares | Oct. 21, 2020$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2020$ / shares | May 21, 2020shares | Feb. 12, 2020$ / sharesshares | Feb. 12, 2020$ / sharesshares |
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares, authorized | 50,000,000 | 50,000,000 | |||||||
Ordinary shares par value | (per share) | $ 0.001 | $ 0.01 | $ 0.01 | ||||||
Ordinary shares, issued | 12,354,040 | 9,000,000 | |||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Underwriting expenses (in Dollars) | $ | $ 2,457,357 | ||||||||
Net proceeds (in Dollars) | $ | 10,958,803 | ||||||||
Unpaid capital contribution (in Dollars) | $ | $ 847,086 | $ 847,086 | |||||||
After tax percentage | 10.00% | ||||||||
Register capital percentage | 50.00% | ||||||||
Statutory reserves amount (in Dollars) | $ | $ 877,886 | 760,475 | |||||||
Capital contribution, description | As a result of these PRC laws and regulations and the requirement that distributions by the Group’s subsidiaries in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. | ||||||||
Restricted net assets amount (in Dollars) | $ | $ 3,565,673 | $ 3,448,262 | |||||||
Minimum [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares, authorized | 38,000,000 | 38,000,000 | |||||||
Ordinary shares, issued | 9,000,000 | 1,000 | 1,000 | ||||||
Maximum [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares, authorized | 50,000,000 | 50,000,000 | |||||||
Ordinary shares, issued | 9,250,000 | 9,250,000 | 9,250,000 | ||||||
Ordinary Shares [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares par value | (per share) | $ 0.001 | $ 0.01 | |||||||
IPO [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Purchase of shares | 3,000,000 | ||||||||
Price per share (in Dollars per share) | $ / shares | $ 4 | ||||||||
Gross proceed (in Dollars) | $ | $ 13,416,160 | ||||||||
Over-Allotment Option [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Price per share (in Dollars per share) | $ / shares | $ 4 | $ 4 | |||||||
Purchase of addtiional units | 4,040 | 350,000 | |||||||
MingZhu Cayman [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares, authorized | 38,000,000 | ||||||||
Board Of Director [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares par value | $ / shares | $ 0.001 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jan. 02, 2020 | Feb. 26, 2019USD ($) | Feb. 26, 2019CNY (¥) | Aug. 23, 2018USD ($) | Aug. 23, 2018CNY (¥) | Mar. 30, 2019USD ($) | Mar. 30, 2019CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 16, 2019USD ($) | Dec. 16, 2019CNY (¥) | Aug. 22, 2019USD ($) | Aug. 22, 2019CNY (¥) | Feb. 22, 2019USD ($) | Feb. 22, 2019CNY (¥) | Sep. 04, 2018USD ($) | Sep. 04, 2018CNY (¥) | Nov. 30, 2017USD ($) |
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||
Capital lease | $ 2,531,453 | |||||||||||||||||
Order flow fees | $ 3,098 | ¥ 21,303 | ||||||||||||||||
Contingencies overdue intererst | $ 0.15 | ¥ 1 | ||||||||||||||||
Compensate for the stoppage loss | $ 694,098 | ¥ 4,772,269 | ||||||||||||||||
Damages in the amount | $ 29,627 | ¥ 203,700 | ||||||||||||||||
Contingencies aggregate amount | $ 65,223 | ¥ 448,440 | ||||||||||||||||
Damages and other charges | $ 74,961 | ¥ 510,272 | ||||||||||||||||
Compensation to plaintiff amount | $ 54,522 | ¥ 389,710 | $ 44,699 | ¥ 307,328.02 | ||||||||||||||
Contingencies, description | The compliant requested that (i) the defendants compensate their loss (including the funeral expenses, death compensation, living expenses of the plaintiffs, etc.) in the amount of RMB 1,096,380.93 (approximately $153,389); (ii) the defendant China Pacific Property Insurance Co., Ltd. Shenzhen Branch shall make the compensation within the limit of its insurance liability, the defendant People’s Insurance Company of China Anyang Branch shall make the compensation within the limit of its on-board personnel liability insurance (driver) and the defendant Huilai Feng shall bear the remaining part of compensation liability exceeding the limit of insurance liability; and (iii) the litigation fee in this case shall be borne by the defendants. According to the response notice issued by the Queshan County People’s Court on January 15, 2020, this case has been filed on January 8, 2020. The trial that was scheduled in a summons, which was issued by Queshan County People’s Court on the March 12, 2020, for the March 24, 2020 was not heard. As of the date of this filing, MingZhu has not received any new summons from the court. MingZhu bears no compensatory obligations under this case. Shuanbao Zhao, Ailian Qin, Fang Zhang, Shukai Zhao and Shuqiang Zhao (together the plaintiffs) submitted a Civil Complaint to the Queshan County People’s Court against Dagang Li, Huilai Feng, MingZhu, Anyang Anyun Modern Logistics Co., Ltd., Zaozhuang Yizhou Automobile Transportation Co., Ltd, the People’s Insurance Company of China Tangyin Branch, China Pacific Property Insurance Co., Ltd. Futian Branch (together the defendants). The complaint requested that (i) the defendants compensate their loss (including the funeral expenses, death compensation, living expenses of the plaintiffs, etc.) in the amount of RMB 1,036,573.61 (approximately $148,894); (ii) the defendant the People’s Insurance Company of China Tangyin Branch shall make prioritized compensation within the scope of seat insurance liability; (iii) the defendant China Pacific Property Insurance Co., Ltd. Futian Branch shall make prioritized compensation within the scope of traffic compulsory insurance and commercial insurance liability; and (iv) the litigation fee in this case shall be borne by the defendants. According to the response notice and summons issued by the Queshan County People’s Court on April 8, 2020, this case has been filed and will be heard on April 28, 2020. MingZhu bears no compensatory obligations under this case. | The complaint requested that (i) the defendants compensate their loss (including the funeral expenses, death compensation, living expenses of the plaintiffs, etc.) in the amount of RMB 1,036,573.61 (approximately $148,894); (ii) the defendant the People’s Insurance Company of China Tangyin Branch shall make prioritized compensation within the scope of seat insurance liability; (iii) the defendant China Pacific Property Insurance Co., Ltd. Futian Branch shall make prioritized compensation within the scope of traffic compulsory insurance and commercial insurance liability; and (iv) the litigation fee in this case shall be borne by the defendants. According to the response notice and summons issued by the Queshan County People’s Court on April 8, 2020, this case has been filed and will be heard on April 28, 2020. MingZhu bears no compensatory obligations under this case. | The complaint requested that (i) the defendants compensate their loss (including the funeral expenses, death compensation, living expenses of the plaintiffs, etc.) in the amount of RMB 1,036,573.61 (approximately $148,894); (ii) the defendant the People’s Insurance Company of China Tangyin Branch shall make prioritized compensation within the scope of seat insurance liability; (iii) the defendant China Pacific Property Insurance Co., Ltd. Futian Branch shall make prioritized compensation within the scope of traffic compulsory insurance and commercial insurance liability; and (iv) the litigation fee in this case shall be borne by the defendants. According to the response notice and summons issued by the Queshan County People’s Court on April 8, 2020, this case has been filed and will be heard on April 28, 2020. MingZhu bears no compensatory obligations under this case. | |||||||||||||||
China Pacific Property Insurance Co Ltd [Member] | ||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||
Compensation to plaintiff amount | $ 15,999 | ¥ 110,000 | ||||||||||||||||
Aggregate amount paid to plaintiff | $ 54,522 | ¥ 389,710 |
Subsequent Events (Details)
Subsequent Events (Details) - shares | Jun. 14, 2021 | Mar. 12, 2021 | Apr. 21, 2021 | Dec. 31, 2020 |
Subsequent Events (Details) [Line Items] | ||||
Outstanding ordinary shares | 15,945,277 | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Subsequent event, description | the Company closed its public offering of 3,333,335 units of its securities (each, a “Unit”), with each Unit consisting of (i) one ordinary share of the Company, par value $0.001 per share, and (ii) one warrant to purchase 0.75 ordinary share. The Company sold the Units at a price of $6.00 per Unit. The Company received gross proceeds from the Offering, before deducting estimated offering expenses payable by the Company, of approximately $18,000,000. | |||
Purchase of ordinary shares | 43,616 | 214,286 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Unaudited) (Details) - Schedule of parent company balance sheets - Parent Company [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CURRENT ASSETS: | ||||
Cash | $ 16,876 | $ 17,671 | $ 123,060 | |
Prepayments | 303,102 | 4,590,534 | ||
Amount due from related parties | 4,611,848 | |||
Total current assets | 4,931,826 | 4,608,205 | ||
OTHER ASSETS | ||||
Investment in subsidiaries | 16,342,464 | 5,418,425 | ||
Total assets | 21,274,290 | 10,026,630 | ||
LIABILITIES | ||||
COMMITMENTS AND CONTINGENCIES | ||||
SHAREHOLDERS’ EQUITY | ||||
Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 12,354,040 and 9,000,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively | [1] | 12,354 | 9,000 | |
Share subscription receivables | (847,086) | (847,086) | ||
Additional paid-in capital | 13,824,820 | 4,115,388 | ||
Statutory reserves | 877,886 | 760,475 | ||
Retained earnings | 6,905,718 | 6,240,833 | ||
Accumulated other comprehensive (loss) income | 500,598 | (252,230) | ||
Total shareholders' equity | 21,274,290 | 10,026,630 | ||
Total liabilities and shareholders’ equity | $ 21,274,290 | $ 10,026,630 | ||
[1] | Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February 12, 2020. |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Unaudited) (Details) - Schedule of parent company balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 50,000,000 | 50,000,000 |
Ordinary shares, issued | 12,354,040 | 9,000,000 |
Ordinary shares, outstanding | 12,354,040 | 9,000,000 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Unaudited) (Details) - Schedule of parent company statement of income and comprehensive income - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
EQUITY INCOME OF SUBSIDIARIES | $ 950,045 | $ 2,020,552 | $ 2,855,074 |
COSTS AND EXPENSES | |||
General and Administrative expenses | 167,749 | 377,758 | 187 |
Total costs and expenses | 167,749 | 377,758 | 187 |
INCOME FROM OPERATION | 782,296 | 1,642,794 | 2,854,887 |
INCOME BEFORE INCOME TAXES | 782,296 | 1,642,794 | 2,854,887 |
PROVISION FOR INCOME TAXES | |||
NET INCOME | 782,296 | 1,642,794 | 2,854,887 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | 752,828 | (121,195) | (419,684) |
COMPREHENSIVE INCOME | $ 1,535,124 | $ 1,521,599 | $ 2,435,203 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Unaudited) (Details) - Schedule of parent company statement of cash flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 782,296 | $ 1,642,794 | $ 2,854,887 |
Adjustments to reconcile net income to cash used in operating activities: | |||
Equity income of subsidiaries | (950,045) | (2,020,552) | (2,855,074) |
Others payable and accrued liabilities | 291,484 | ||
Net cash used in operating activities | (167,749) | (86,274) | (187) |
Cash flows from investing activities | |||
Net cash provided by investing activities | |||
Cash flows from financing activities: | |||
Amounts advanced from related parties | 166,872 | (19,145) | (3,797,183) |
Capital contribution | 3,916,672 | ||
Net cash provided by (used in) financing activities | 166,872 | (19,145) | 119,489 |
Effect of exchange rate change on cash | 82 | 30 | 3,758 |
Net increase in cash | (795) | (105,389) | 123,060 |
Cash at beginning of the year | 17,671 | 123,060 | |
Cash at end of the year | $ 16,876 | $ 17,671 | $ 123,060 |