Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021 shares | |
Document Information Line Items | |
Entity Registrant Name | MingZhu Logistics Holdings Ltd |
Trading Symbol | YGMZ |
Document Type | 20-F/A |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 19,134,277 |
Amendment Flag | true |
Amendment Description | MingZhu Logistics Holdings Limited (the “Company”) is filing this Amendment No. 1 on Form 20-F (this “Amendment”) to the Annual Report on Form 20-F for the fiscal year ended December 31, 2021 (the “Form 20-F”), which was originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 11, 2022, to revise and add certain disclosure in “Item 3. Key Information”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects”, Consolidated Financial Statements, and Notes to Consolidated Financial Statements, to (i) provide additional disclosure regarding the Company’s arising from the operations conducted by its subsidiaries and variable interest entities based in China, (ii) revise and clarify certain disclosure with respect to the cash and asset flows through its organization, (iii) revise and add certain disclosure regarding the financial results of the Company, its subsidiaries and variable interest entities, and (iv) revise and add certain disclosure in relation to the Company’s operating segments.This Amendment does not reflect subsequent events occurring after the original filing date of the Form 20-F or modify or update in any way the financial statements, consents or any other items disclosures made in the Form 20-F in any way other than as required to reflect the amendments discussed above. Accordingly, this Amendment should be read in conjunction with the Form 20-F and the Company’s other filings with the SEC subsequent to the filing of the Form 20-F.Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, this Amendment also contains certifications under the Sarbanes-Oxley Act of 2002. |
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, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39564 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 27F, Yantian Modern Industry Service Center |
Entity Address, Address Line Two | No. 3018 Shayan Road |
Entity Address, Address Line Three | Yantian District |
Entity Address, City or Town | Shenzhen |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 518081 |
Title of 12(b) Security | Ordinary shares, par value US$0.001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 3481 |
Auditor Name | Friedman LLP |
Auditor Location | New York, New York |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 850 Library Avenue |
Entity Address, Address Line Two | Suite 204 |
Entity Address, City or Town | Newark |
Entity Address, Postal Zip Code | 518081 |
Contact Personnel Name | Puglisi & Associates |
Entity Address, State or Province | DE |
City Area Code | (302) |
Local Phone Number | 738-6680 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 5,752,117 | $ 2,105,625 | |
Restricted cash | 9,500,000 | ||
Accounts receivable, net | 3,650,005 | 5,343,716 | |
Prepayments | 5,473,938 | 1,059,335 | |
Other receivables | 1,540,044 | 31,082 | |
Loans receivable | 22,487,767 | 11,416,940 | |
Amount due from related parties | 705,280 | 741,340 | |
Total current assets | 39,609,151 | 30,198,038 | |
NON-CURRENT ASSET | |||
Property and equipment, net | 12,224,582 | 3,448,109 | |
Deferred tax assets | 35,491 | 31,852 | |
Deposits | 10,327,872 | 261,992 | |
Goodwill | 20,152,890 | ||
Total non-current asset | 42,740,835 | 3,741,953 | |
Total assets | 82,349,986 | 33,939,991 | |
CURRENT LIABILITIES: | |||
Short-term bank borrowings | 7,579,324 | 6,551,724 | |
Accounts payable | 1,344,532 | 1,415,591 | |
Other payables and accrued liabilities | 19,269,124 | 531,120 | |
Amount due to related parties | 294,344 | 993,846 | |
Tax payable | 3,133,294 | 2,722,409 | |
Current maturities of long-term bank borrowings | 269,009 | ||
Current portion of capital lease and financing obligations | 2,267,248 | 51,135 | |
Current maturities of loans from other financial institutions | 144,126 | 235,487 | |
Total current liabilities | 34,301,001 | 12,501,312 | |
NON-CURRENT LIABILITIES | |||
Long-term bank borrowings | 179,339 | ||
Long-term loans from other financial institutions | 136,400 | ||
Long-term portion of capital lease and financing obligations | 200,712 | 27,989 | |
Total non-current liabilities | 380,051 | 164,389 | |
Total liabilities | 34,681,052 | 12,665,701 | |
SHAREHOLDERS’ EQUITY | |||
Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 19,134,277 and 12,354,040 shares issued and outstanding as of December 31, 2021 and 2020, respectively* | [1] | 19,134 | 12,354 |
Share subscription receivables | (847,086) | (847,086) | |
Additional paid-in capital | 41,792,071 | 13,824,820 | |
Statutory reserves | 916,148 | 877,886 | |
Retained earnings | 5,929,043 | 6,905,718 | |
Accumulated other comprehensive (loss) income | (140,376) | 500,598 | |
Total shareholders’ equity | 47,668,934 | 21,274,290 | |
Total liabilities and shareholders’ equity | $ 82,349,986 | $ 33,939,991 | |
[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, 2021 | Dec. 31, 2020 |
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 | 19,134,277 | 12,354,040 |
Ordinary shares, outstanding | 19,134,277 | 12,354,040 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
REVENUES | $ 17,358,914 | $ 18,793,951 | $ 29,410,550 | |
COSTS AND EXPENSES | ||||
Transportation costs | 15,428,131 | 16,010,644 | 25,358,456 | |
General and administrative expenses | 2,050,954 | 1,321,412 | 1,299,413 | |
Sales and marketing expenses | 367,633 | 50,083 | 77,615 | |
Total costs and expenses | 17,846,718 | 17,382,139 | 26,735,484 | |
(LOSS) INCOME FROM OPERATIONS | (487,804) | 1,411,812 | 2,675,066 | |
OTHER (EXPENSES) INCOME | ||||
Interest expenses | (396,188) | (374,048) | (370,682) | |
Other expenses | (360,032) | (65,828) | (12,683) | |
Other income | 441,025 | 176,802 | 172,343 | |
Total other expenses, net | (315,195) | (263,074) | (211,022) | |
(LOSS) INCOME BEFORE INCOME TAXES | (802,999) | 1,148,738 | 2,464,044 | |
PROVISION FOR INCOME TAXES | 135,414 | 366,442 | 821,250 | |
NET (LOSS) INCOME | (938,413) | 782,296 | 1,642,794 | |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Foreign currency translation adjustment | (640,974) | 752,828 | (121,195) | |
COMPREHENSIVE (LOSS) INCOME | $ (1,579,387) | $ 1,535,124 | $ 1,521,599 | |
Weighted average shares used in computation: | ||||
Basic (in Shares) | [1] | 19,035,038 | 9,629,783 | 9,000,000 |
Diluted (in Shares) | [1] | 15,237,432 | 9,633,993 | 9,000,000 |
EARNINGS PER SHARE - BASIC (in Dollars per share) | [1] | $ (0.05) | $ 0.08 | $ 0.18 |
EARNINGS PER SHARE - DILUTED (in Dollars per share) | [1] | $ (0.06) | $ 0.08 | $ 0.18 |
[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 | Accumulated Other Comprehensive (Loss) Income | Total | |
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 (loss) 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 | ||||||
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) | ||||||
Net income (loss) for the year | 782,296 | 782,296 | ||||||
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 | ||||||
Issuance of shares | $ 6,780 | 27,967,251 | 27,974,031 | |||||
Issuance of shares (in Shares) | [1] | 6,780,237 | ||||||
Net income (loss) for the year | (938,413) | (938,413) | ||||||
Foreign currency translation adjustment | (640,974) | (640,974) | ||||||
Appropriation to statutory reserves | 38,262 | (38,262) | ||||||
BALANCE at Dec. 31, 2021 | $ 19,134 | $ (847,086) | $ 41,792,071 | $ 916,148 | $ 5,929,043 | $ (140,376) | $ 47,668,934 | |
BALANCE (in Shares) at Dec. 31, 2021 | [1] | 19,134,277 | ||||||
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (938,413) | $ 782,296 | $ 1,642,794 |
Adjustments to reconcile net income to net cash provided (used in) by operating activities: | |||
(Gain) on disposals of equipment | (25,070) | (17,761) | (25,558) |
Provision for doubtful accounts | 140,204 | 82,647 | 34,356 |
Written-off of allowance for doubtful accounts | 136,602 | ||
Amortization of deferred financing fees | 55,640 | 124,401 | 176,391 |
Depreciation for property and equipment | 1,438,310 | 1,519,415 | 1,365,945 |
Deferred income tax (benefit) expenses | (2,832) | (10,381) | 2,451 |
Changes in operating assets and liabilities | |||
Accounts receivable | 1,633,476 | 5,842,238 | (3,645,292) |
Operating supplies | 4,000 | ||
Prepayments | (3,838,690) | 644,525 | 292,288 |
Other receivables | 3,444,875 | 466,187 | (34,961) |
Loans receivable | (11,070,827) | (10,653,588) | |
Deposits | (9,470,731) | (189,430) | 33,692 |
Accounts payable | (874,843) | (240,887) | 741,827 |
Other payables and accrued liabilities | (2,989,501) | 412,064 | (314,380) |
Tax payables | (1,422,362) | 348,065 | 843,842 |
Net cash (used in) provided by operating activities | (23,784,162) | (890,209) | 1,117,395 |
Cash flows from investing activities: | |||
Purchases of equipment | (199,481) | (156,029) | (917,288) |
Cash from acquisition of subsidiary | 1,477,065 | ||
Net cash provided by (used in) by investing activities | 1,277,584 | (156,029) | (917,288) |
Cash flows from financing activities: | |||
Proceeds from short-term bank borrowings | 6,665,840 | 6,604,675 | 3,329,425 |
Repayment of short-term bank borrowings | (7,433,187) | (3,041,105) | (1,910,598) |
Proceeds from long-term bank borrowings | 465,059 | ||
Repayment of long-term bank borrowings | (22,146) | (1,129,747) | (173,709) |
Proceeds from other financial institution | 642,107 | ||
Repayments of loans from other financial institutions | (300,279) | (274,929) | (94,671) |
Repayments of obligations under capital leases | (98,972) | (980,244) | (1,078,425) |
Amounts advanced from related parties | 6,787,477 | 10,238,023 | 9,263,395 |
Repayments to related parties | (7,864,254) | (10,062,100) | (10,766,291) |
Proceeds from initial public offering | 10,958,803 | ||
Proceeds from private placement | 18,465,009 | ||
Net cash provided by (used in) financing activities | 16,664,547 | 12,313,376 | (788,767) |
Effect of exchange rate change on cash | (11,477) | 114,980 | 3,858 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,853,508) | 11,382,118 | (584,802) |
Cash, cash equivalents and restricted cash at beginning of the year | 11,605,625 | 223,507 | 808,309 |
Cash, cash equivalents and restricted cash at end of the year | 5,752,117 | 11,605,625 | 223,507 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 396,187 | 310,675 | 370,682 |
Income tax paid | 1,435,366 | 108,207 | 43,902 |
Supplemental non-cash investing and financing information: | |||
Non-cash capital leases to acquire revenue equipment | 102,054 | 44,628 | 89,716 |
Uncollected receivable from disposal of revenue equipment | 175,215 | 73,817 | 55,863 |
Non-cash capital leases offset by related parties | 564,555 | ||
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 | 5,673,656 | 2,105,625 | 223,507 |
Cash equivalents | 78,461 | ||
Restricted cash | 9,500,000 | ||
Total cash | $ 5,752,117 | $ 11,605,625 | $ 223,507 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Business and Organization [Abstract] | |
Nature of business and organization | Note 1 – Nature of business and organization 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. On October 30, 2020, the underwriter and sole book-runner of our underwritten IPO, 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 our underwritten IPO, 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. On March 12, 2021, the Company closed its direct 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. On December 29, 2021 (“Acquisition Date”), the Company entered into a Share Purchase Agreement (the “SPA”) to acquire 100% of the equity interest of Cheyi (BVI) Limited (the “Cheyi BVI”) which operates its business through its subsidiary Zhejiang Cheyi Network Technology Co., Ltd. (the “Cheyi Network”), an integrated online car-hailing and driver management services company. Pursuant to the agreement, the total consideration for the acquisition of 100% equity ownership of Cheyi BVI is an aggregate of U.S. $29,466,032, consisting of the issuance by the Company to the shareholders of Cheyi BVI an aggregate of 3,189,000 fully paid Company’s ordinary shares (being U.S. $12,756,000 of $4 per share) and payment of $2,000,000 at closing, and Year-2021 earnout payment of U.S. $8,826,019 and Year-2022 earnout payment of U.S. $5,884,013 if the Cheyi BVI’s audited net income for its fiscal year 2021 and 2022 is no less than U.S. $3,000,000 respectively. The two earnout payments are due 13 months upon the delivery of Cheyi BVI’s audited financial statements. The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date. As required by ASC 805-20, Business Combinations – Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of net assets acquired. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Recognized amounts of identifiable assets acquired and liabilities Accounts receivable, net $ 216,572 Prepayments 575,913 Others receivable 4,761,164 Equipment, net 9,980,931 Deferred tax assets 10 Deposits 595,149 Short-term bank borrowings (1,647,679 ) Accounts payable (803,784 ) Others payable and accrued liabilities (1,631,610 ) Tax payable (1,859,485 ) Capital lease and financing obligations (2,351,104 ) Total identifiable net assets 7,836,077 Add: Goodwill 20,152,890 Total purchase price for acquisition net of $1,477,065 of cash $ 27,988,967 As of December 31, 2021, 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 19,134,277. 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, 2021 | |
Variable Interest Entity [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, its subsidiaries, VIE and VIE’s subsidiaries for which the Company is exercises control and, when applicable, entities for which the Company has a controlling financial interest or the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. All transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been 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 Incorporated on January 15, 2018 A holding company 100% directly owned by MingZhu Cayman YGMZ (Hong Kong) Limited (“MingZhu HK”) ● ● ● A Hong Kong company Incorporated on February 2, 2018 A holding company 100% directly owned by MingZhu BVI Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu” or “Mingzhu”) ● ● ● A PRC limited liability company Incorporated on July 10, 2002 Providing trucking services 100% directly owned by MingZhu HK Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) ● ● ● A PRC limited liability company Incorporated on September 5, 2018 Transportation and supply chain management services 100% directly owned by MingZhu HK Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) ● ● ● A PRC limited liability company Incorporated on April 7, 2010 Providing trucking services 100% directly owned by MingZhu Cheyi (BVI) Limited (“Cheyi BVI”) ● ● ● A British Virgin Islands company Incorporated on September 29, 2021 A holding company 100% directly owned by MingZhu Cayman Cheyi (Hong Kong) Limited (“Cheyi HK”) ● ● ● A Hong Kong company Incorporated on October 22, 2021 A holding company 100% directly owned by Cheyi BVI Ningbo Cheyi Corporate Information Consulting Co., Ltd. (“Ningbo Cheyi” or Cheyi WFOE) ● ● ● A PRC limited liability company Incorporated on November 2, 2021 A holding company 100% directly owned by Cheyi HK Zhejiang Cheyi Network Technology Co., Ltd. (“Cheyi Network”) ● ● ● A PRC limited liability company Incorporated on December 10, 2015 An integrated online car-hailing and driver management services company 100% owned by Ningbo Cheyi via contractual arrangements 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, the fair value of the reporting unit for the goodwill impairment test, 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 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 the 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 6.3726, 6.5250 and 6.9618 as of December 31, 2021, 2020 and 2019, 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 6.4508, 6.9042 and 6.9081 for the years ended December 31, 2021, 2020 and 2019, respectively. For the purpose of presenting the 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 7.7996, 7.7894 and 7.7534 as of December 31, 2021, 2020 and 2019, 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 7.7727, 7.8351 and 7.7559 for the years ended December 31, 2021, 2020 and 2019, respectively. Cash and cash equivalents 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, 2021 and 2020, 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. Cash equivalents included short term fixed deposit. As of December 31, 2021, the Company had a fixed deposit of $78,461 (RMB 500,000) in a bank at an annual interest rate of 1.95% with a maturity date of June 11, 2022. 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, 2021, there was restricted cash balance of $ Nil 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– trucking* 5 years Revenue equipment – car rental** 6 years * Revenue equipment – trucking are trucks and trailers only used for providing trucking services. ** Revenue equipment – car rental are passenger cars only used for providing car rental 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, 2021 and 2020, $ 2,267,248 and $51,135 was recorded to “Current portion of capital lease and financing obligations”, respectively; $200,712 and $27,989 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, 2021, 2020 and 2019, 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, 2021 and 2020, 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 Revenues are mainly generated from provision of trucking services and car rental services. The Company’s car rental services are accounted for under Accounting Standards Codification (“ASC”) Topic 840, Leases (“ASC 840”). The Company’s trucking services are accounted for under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services. Trucking service under ASC 606 The core principle of the ASC 606 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 material impact on the Company’s consolidated financial statements. For each trip of the provision of trucking services, we have one single performance obligation, which is to transport our 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 our customers as our 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. We utilize independent contractors and third-party carriers in the performance of certain transportation services. While various ownership arrangements may exist for the equipment utilized to perform these services, including company-owned, owner-operator owned, and third-party carriers, revenue is generated from the same base of customers. We evaluate whether our 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. Our evaluation determined that we are 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 our evaluation of the control model, we determined that all of our 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 ASC 606 that permits the Company not to 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 ASC 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, 2021, the Company had $35,727 of unbilled amounts recorded in accounts receivable and $31,754 of accrued freight costs recorded in accounts payable. Disaggregated information of trucking services revenues by geographic locations are as follows: 2021 2020 2019 Guangdong province $ 14,662,029 $ 13,522,929 $ 15,209,518 Xinjiang province 2,696,885 5,271,022 14,201,032 Total revenues $ 17,358,914 $ 18,793,951 $ 29,410,550 Car rental services under ASC 840 Under ASC 840 rental income from operating leases is recognized on a straight-line basis, based on contractual lease terms with fixed and determinable increases over the non-cancellable term of the related lease when collectability is reasonably assured. The Company offers a broad portfolio of passenger cars for rent on a monthly basis with most rental agreements cancelable upon the return of cars. The customer has the right to cancel the lease at any time during the rental period for a subsequent month’s rental and payments are generally billed in advance on a month-to-month basis. The revenue derived from car rental services are primarily provided by the Cheyi BVI and its subsidiaries, which is acquired by the Company on December 29, 2021. In accordance with the ASC-805, the Company only is able to account the revenue generated by Cheyi BVI and its subsidiaries after the acquisition is completed. The Company had carefully evaluated the amount of such revenue generated by Cheyi BVI and its subsidiaries with reasonable estimates. The revenue generated by Cheyi BVI and its subsidiaries for the year ended December 31, 2021 is immaterial and hence no revenue is accounted in the consolidated financial statements for the years ended December 31, 2021, 2020 and 2019. 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 $367,633, $50,083 and $77,615 for the years ended December 31, 2021, 2020 and 2019, 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 $31,145, $29,100 and $56,097 for the years ended December 31, 2021, 2020 and 2019, 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 audited 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 (loss) income Comprehensive (loss) income consists of two components, net (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income 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 (loss) income 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, 2021, 2020 and 2019, the diluted EPS was -0.06, 0.08 and 0.18, 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 Before the completion of acquisition of Cheyi BVI 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. After the completion of acquisition of Cheyi BVI The Company’s CODM has been identified as its CEO, who reviews the financial results when making decisions about allocating resources and assessing performance of the trucking business and car rental business separately and therefore, the Company has two reportable segments. 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), which supersedes the guidance in ASC Topic 840, Leases. ASU 2016-02 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via a right-of-use asset and lease liability, and additional qualitative and quantitative disclosures. In July 2018, ASU No. 2018-10, Codification Improvements to Topic 842, Leases, was issued to provide more detailed guidance and additional clarification for implementing ASU No. 2016-02. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an optional transition method in addition to the existing modified retrospective transition method by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Furthermore, in June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which defers the effective date of ASU No. 2016-02 for certain entities. This update is effective for the Group for annual reporting periods beginning after December 15, 2021 and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. The Group does not plan to early adopt this guidance and is evaluating the impact of the new standard. Under the Jumpst |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | Note 3 – Cash and cash equivalents Cash and cash equivalents consist of the following: December 31, December 31, Cash on hand $ 51,053 $ 24,545 Cash at bank 5,622,603 2,081,080 Fixed deposits 78,461 - Cash and cash equivalents $ 5,752,117 $ 2,105,625 On June 11, 2021, the Company deposited $78,461 (RMB 500,000) in a bank at an annual interest rate of 1.95% with a maturity date of June 11, 2022. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Accounts receivable, net | Note 4 – Accounts receivable, net Accounts receivable, net consist of the following: December 31, December 31, Accounts receivable $ 3,802,773 $ 5,561,392 Allowance for doubtful accounts (152,768 ) (217,676 ) Total accounts receivable, net $ 3,650,005 $ 5,343,716 Approximately 83% of accounts receivable as of December 31, 2021 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 $ 217,676 $ 122,056 $ 89,069 Provision 140,204 82,647 34,356 Write off (136,602 ) - - Exchange rate effect (68,510 ) 12,973 (1,369 ) Ending balance $ 152,768 $ 217,676 $ 122,056 |
Prepayments
Prepayments | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments [Abstract] | |
Prepayments | Note 5 – Prepayments Prepayments consist of the following: December 31, December 31, Prepayments Prepayment - subcontracting $ 4,420,242 $ 416,442 Prepayment - fuel 277,666 179,954 Prepayment - insurance 102,188 92,089 Prepayment - parts and others 183,999 370,850 Prepayment - salaries 436,847 - Prepayment - legal 52,996 - Total prepayments $ 5,473,938 $ 1,059,335 |
Other Receivables (reclassifica
Other Receivables (reclassification) | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables [Abstract] | |
Other receivables (reclassification) | Note 6 – Other receivables (reclassification) Other receivables consist of the following: December 31, December 31, Reclassification Other receivables Other receivables, disposal of revenue equipment 169,095 31,082 Others* 67,614 - Vehicle rental in advance 427,716 - Pay on behalf of third parties 875,619 - Total other receivables $ 1,540,044 $ 31,082 * A balance of $11,416,940 is reclassified from other receivables to loans receivable. Others primarily involve the employee’s statutory social insurance. |
Loans receivable
Loans receivable | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables [Abstract] | |
Loans receivable | Note 7 – Loans receivable Due to strategic business cooperation, the Company made interest-free advances to third parties. As of December 31, 2021 and 2020, the outstanding balance of such interest-free advances were $22,487,767 and $11,416,940, respectively. All outstanding balance will be collected by June 2022. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 8 – Property and equipment, net Property and equipment, net consist of the following: December 31, December 31, Property and equipment Buildings and improvements $ 1,188,006 $ 1,160,259 Computer and office equipment 446,033 21,122 Revenue equipment – trucking 16,107,826 8,516,665 Revenue equipment – car rental 9,980,931 Subtotal 27,722,796 9,698,046 Less: accumulated depreciation (15,498,214 ) (6,249,937 ) Property and equipment, net $ 12,224,582 $ 3,448,109 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, 2021, carrying value and accumulated depreciation of the revenue equipment under capital leases recorded by the Company were $10,232,895 and $8,293,722, respectively. 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. Depreciation expenses for the years ended December 31, 2021, 2020 and 2019 was $1,438,310, $1,521,234 and $1,365,945, respectively. For the years ended December 31, 2021, the Company disposed revenue equipment with cost of $1,047,024 and accumulated depreciation of $896,879 for proceeds of $175,215 resulting in disposal gain of $25,070. For the year ended December 31, 2020, the Company disposed revenue equipment with cost of $1,077,794 and accumulated depreciation of $1,018,480 for proceeds of $77,075 resulting in disposal gain of $17,761. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Deposits | Note 9 – Deposits As of December 31, 2021, deposits primarily include payments in total of $10,327,872 made in advance to landlord, suppliers, financial institutions and a business alliance for operational purposes. As of December 31, 2020, deposits primarily include payments in total of $261,992 made in advance to landlord, suppliers and financial institutions. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill [Abstract] | |
Goodwill | Note 10 – Goodwill As of December 31, 2021, the balance of goodwill solely represented an amount of $20,152,890 that arose from acquisition of Cheyi (BVI) Limited (the “Cheyi BVI”) in 2021. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition | Note 11 – Acquisition On December 29, 2021 (the “Acquisition Date”), the Company entered into a Share Purchase Agreement (the “SPA”) to acquire 100% of the equity interest of Cheyi (BVI) Limited (the “Cheyi BVI”) which operates its business through its subsidiary Zhejiang CheYi Network Technology Co., Ltd. (the “CheYi Network”), an integrated online car-hailing and driver management services company. Pursuant to the agreement, the total consideration for the acquisition of 100% equity ownership of Cheyi BVI is an aggregate of $29,466,032, consisting of the issuance by the Company to the shareholders of Cheyi BVI an aggregate of 3,189,000 fully paid Company’s ordinary shares (being $12,756,000 of $4 per share) and payment of $2,000,000 at closing, and Year-2021 earnout payment of $8,826,019 and Year-2022 earnout payment of $5,884,013 if the Cheyi BVI’s audited net income for its fiscal year 2021 and 2022 is no less than $3,000,000 respectively. The two earnout payments are due 13 months upon the delivery of Cheyi BVI’s audited financial statements. The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date. As required by ASC 805-20, Business Combinations – Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of net assets acquired. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable, net $ 216,572 Prepayments 575,913 Others receivable 4,761,164 Equipment, net 9,980,931 Deferred tax assets 10 Deposits 595,149 Short-term bank borrowings (1,647,679 ) Accounts payable (803,784 ) Others payable and accrued liabilities (1,631,610 ) Tax payable (1,859,485 ) Capital lease and financing obligations (2,351,104 ) Total identifiable net assets 7,836,077 Add: Goodwill 20,152,890 Total purchase price for acquisition net of $1,477,065 of cash $ 27,988,967 The Company has included the operating results of Cheyi BVI in its consolidated financial statements since the Acquisition Date. $ nil nil years ended December 31, 2021. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other payables and accrued liabilities | Note 12 – 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 $ 220,416 $ 215,268 Salary payables 157,970 127,610 Others 44,053 110,540 Receipt in advance 153,399 77,702 Payable under acquisition 16,710,032 - Advance for operational purpose 286,820 - Lending with no interests 1,220,176 - Deposits for purchase of vehicles 476,258 - Total other payables and accrued liabilities $ 19,269,124 $ 531,120 Others primarily involve the rental expenses incurred. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2021 | |
Credit Facilities [Abstract] | |
Credit facilities | Note 13 – Credit facilities Short-term bank borrowings Outstanding balances of short-term bank borrowings as of December 31, 2021 and 2020 consisted of the following: Bank name Term Interest rate Collateral/ Guarantee Date of December 31, December 31, Hangzhou United Rural Commercial Bank Co., Ltd. (1) From November 11, 2021 to November 5, 2022 Weighted average rate of 6.8% Guarantee by Mr. Dongdong Wang and his Spouse - $ 156,922 $ - Hangzhou United Rural Commercial Bank Co., Ltd. (1) From September 23, 2021 to September 22, 2022 Weighted average rate of 5.8% Guarantee by Mr. Dongdong Wang and his Spouse - 78,461 - Hangzhou United Rural Commercial Bank Co., Ltd. (1) From September 16, 2021 to September 15, 2022 Weighted average rate of 5.8% Guarantee by Mr. Dongdong Wang and his Spouse - 78,461 - Hangzhou United Rural Commercial Bank Co., Ltd. (1) From July 14, 2021 to January 13, 2022 Weighted average rate of 5.5% Guarantee by Mr. Dongdong Wang and his Spouse - 78,461 - Hangzhou United Rural Commercial Bank Co.,Ltd. (1) From June 29, 2021 to January 13, 2022 Weighted average rate of 5.5% Guarantee by Mr. Dongdong Wang and his Spouse January 13, 2022 784,609 - Zhejiang Tailong Commercial Bank Co., Ltd. (2) From November 11, 2021 to November 19, 2022 Weighted average rate of 6.8% Guarantee by Mr. Dongdong Wang, Mr. Dongdong Wang’s Spouse and five employees - 470,765 - Industrial Bank Co., Ltd. (3) From April 28, 2021 to May 7, 2022 Weighted average rate of 5.7% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. May 7, 2022 376,612 - China Everbright Bank Co., Ltd. (4) From November 12, 2021 to November 20, 2022 Weighted average rate of 6.0% Pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang - 2,259,674 -- Bank of Communications Co., Ltd. (5) From April 29, 2021 to May 9, 2022 Weighted average rate of 5.7% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. May 9, 2022 3,295,359 - The Industrial Bank Co., Ltd. (3) 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 (6) 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 (4) 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 December 20, 2021 - 2,114,943 Bank of Communications (5) 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 December 6, 2021 - 3,754,788 $ 7,579,324 $ 6,551,724 (1) In November 26, 2018, Cheyi Network entered into a revolving line of credit agreement with Hangzhou United Rural Commercial Bank Co., Ltd. pursuant to which Cheyi Network is able to borrow up to RMB5,500,000 (approximately $863,070). The line of credit agreement entitles Cheyi Network to enter into separate loan contracts under such line of credit. Cheyi Network utilized a total of RMB5,000,000 (approximately $784,609) during the year ended December 31, 2021 via five withdraws. 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. The Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements after the acquisition of Cheyi Network. (2) In November 11, 2021, the Company entered into a one-year term loan agreement with Zhejiang Tailong Commercial Bank Co., Ltd. pursuant to which the Company is able to borrow RMB 3,000,000 (approximately $470,765). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. (3) 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 (4) 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. The Company paid off the above loan by October 2021 followed by a new credit line withdrawal of RMB 15,000,000 (approximately $2,353,827). As of December 31, 2021, RMB 15,000,000 was not utilized by the Company. (5) 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. In April 2021, the Company entered into a one (6) 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. Interest expenses incurred from short-term bank borrowings were $326,363, $194,486 and $127,314 for the years ended December 31, 2021, 2020 and 2019, respectively. Long-term bank borrowings Outstanding balances of long-term bank borrowings as of December 31, 2021 and 2020 consisted of the following: Bank name Term Interest rate Collateral/ Guarantee Date of December 31, December 31, WeBank Co., Ltd. From August 26, 2021 to August 26, 2023 Weighted average rate of 9.0% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. - $ 448,348 $ - Less: current maturities (269,009 ) - Non-current maturities $ 179,339 $ - In August 2021, the Company entered into a two-year term loan agreement with WeBank Co., Ltd. pursuant to which the Company is able to borrow RMB 3,000,000 (approximately $470,765). The Company recorded this loan as long-term bank borrowings in its audited condensed consolidated financial statements. The maturities schedule of long-term bank borrowings is as follow: As of As of Payments due by period Less than 1 year $ 269,009 $ - 1-2 years 179,339 - Total $ 448,348 $ - Interest expenses incurred from long-term bank borrowings were $14,184, $52,521 and $70,692 for the years ended December 31, 2021, 2020 and 2019, 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 audited consolidated balance sheets. Outstanding balances of loans from other financial institutions, which mainly includes the loan from Chailease, as of December 31, 2021 and 2020 were $144,126 and $371,887, respectively. Loans were pledged by several revenue equipment with recorded cost of $1,125,173 and $1,107,411, carrying value of $79,903 and $159,007 and accumulated depreciation of $1,045,270 and $948,404 as of December 31, 2021 and 2020, respectively. The depreciation expenses of $74,185, $101,741 and $126,595 was recorded for revenue equipment pledged under these loans for the year ended December 31, 2021, 2020 and 2019, respectively. The interest rate of these loans ranged from 7.5% to 17.0% per annum, and the loan term was up to 36 months starting from December 2019. As of December 31, 2021 and 2020 the balance of long-term portion of loans from other financial institutions were $ nil 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 $ 144,126 $ 235,487 1-2 years - 136,400 Total $ 144,126 $ 371,887 |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | Note 14 – Variable Interest Entity Variable interest entities (“VIEs”) are entities in which equity investors lack the characteristics of a controlling financial interest. For those entities that qualify as a VIE, the primary beneficiary is generally defined as the party who has a controlling financial interest in the VIE. The Company is generally deemed to have a controlling financial interest if it has (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes initially involved with the VIE and reconsiders that conclusion continuously. The primary beneficiary evaluation is generally performed qualitatively on the basis of all facts and circumstances. However, quantitative information may also be considered in the analysis, as appropriate. These assessments require judgments. Each entity is assessed for consolidation on a case-by-case basis. The Cheyi BVI, which is acquired by the Company on December 29, 2021, operates business mainly through its variable interest entities (“VIE”) in the PRC, based on a series of contractual arrangements (collectively the “VIE Agreements”). As a result of these contractual arrangements, the Company exert effective control over, and are considered the primary beneficiary of, the Company’s VIEs and consolidate their operating results in our financial statements under the GAAP. The following is a summary of VIE Agreements by and among Zhejiang Cheyi Network Technology Co., Ltd. (“Cheyi Network”), a subsidiary of Cheyi BVI, Ningbo Cheyi Corporate Information Consulting Co., Ltd. (“Cheyi WFOE”) and the shareholders of Cheyi BVI. Each of the VIE Agreements is described in detail below: Master Exclusive Service Agreement Under the Master Exclusive Service Agreement dated November 24, 2021, Cheyi WFOE has agreed to provide the following services (among others) to Cheyi Network: ● information consulting services regarding the business operation of Service Receiving Parties ; ● public relation services ; ● market investigation, research and consulting services ; ● Leasing, assignment or disposal of properties ; ● recruiting, managing and training of necessary personnel to sustain the business operation ; ● marketing channel to cooperate with business-relating third-party platforms ; ● customer order management and customer services ; ● mid or short-term market development and market planning services ; ● human resource management and internal information management ; ● Design, installation, daily management, maintenance and updating of network system, hardware and database design, and/or other services determined from time to time by Cheyi Network according to the need of business and capacity of the Cheyi WFOE. This agreement was effective from November 24, 2021 and will continue to be effective unless it is terminated by written notice of Cheyi. Business Cooperation Agreement Under the Business Cooperation Agreement entered into by Cheyi WFOE, Cheyi Network and the shareholders of Cheyi Network, dated November 24, 2021, all parties agreed that without obtaining Cheyi WFOE ’s prior written consent, Cheyi shall not, and each of the Cheyi Network and shareholders of Cheyi Network shall cause each of Cheyi Network and its subsidiaries not to, engage in any transaction which may materially affect its asset obligation right or operation. Furthermore, Cheyi Network shall and shareholders of Cheyi Network shall cause Cheyi and its subsidiaries to accept suggestions raised by Cheyi WFOE over the employee engagement and replacement, daily operation, dividend distribution and financial management systems of Cheyi Network and its subsidiaries and Cheyi Network and its subsidiaries shall strictly abide by and perform accordingly. Equity Interest Pledge Agreement The shareholders of Cheyi Network entered into an Equity Pledge Interest Agreement with Cheyi WFOE, dated November 24, 2021. Under such equity pledge agreement, each of the shareholders of Cheyi Network pledged its respective equity interest in Cheyi Network to Cheyi WFOE to secure such shareholder’s obligations under the Exclusive Option Agreement, Proxy Agreement, Master Exclusive Service Agreement, and Letter of Confirmation and Undertaking. Each of such shareholders further agreed not to transfer or pledge his or her respective equity interest in Cheyi Network without the prior written consent of Cheyi WFOE. The equity pledge agreement will remain effective until the shareholders fulfill their obligations and Cheyi WFOE discharges all the shareholders’ obligations under these VIE Agreements in writing. Exclusive Option Agreement Under the Exclusive Option Agreement entered into by Cheyi WFOE, Cheyi Network and the shareholders of Cheyi Network, dated November 24, 2021, the shareholders of Cheyi Network granted Cheyi WFOE or its designee an option to purchase all or a portion of their respective equity interest in Cheyi Network for the RMB 1. Each of shareholders of Cheyi Network agreed that, as of the effective date of this agreement, but before the transfer of all or part of the Cheyi Network’s equity interest to Cheyi Network WFOE, if the shareholders obtain dividends, bonuses or residual property from Cheyi Network, the shareholders shall transfer all the income (after tax) to Cheyi WFOE. The exclusive option agreement shall remain in effect until all of the equity interests in or assets of Cheyi Network have been acquired by Cheyi WFOE or its designee, and upon the condition that Cheyi WFOE and its subsidiaries, branches can engage in the business of Cheyi Network legally. Cheyi WFOE has the right to unilaterally terminate this agreement immediately by sending written notices to Cheyi Network and the shareholders of Cheyi Network at any time without liability for the breach. Unless otherwise mandatory by Chinese law, Cheyi Network and its shareholders has no right to unilaterally terminate this agreement. Proxy Agreement Under the Proxy Agreement among Cheyi WFOE, Cheyi Network and the shareholders of Cheyi Network, dated November 24, 2021, each of the shareholders of Cheyi Network has agreed to irrevocably entrust Cheyi WFOE or its designee to represent it to exercise all the shareholders’ rights to which it is entitled as a shareholder of Cheyi Network. The Proxy Agreement is irrevocable and shall remain effective until upon the instruction of Cheyi WFOE. Letter of Confirmation and Undertaking Each shareholder of Cheyi Network had signed a Letter of Confirmation and Undertaking. Under the Letter of Confirmation and Undertaking, each shareholder of Cheyi Network confirmed undertake and warrant that his or her successor, guardian, creditor, spouse or any other person that may be entitled to assume rights and interests in the equity interest of Cheyi Network held by him or her upon his or her death incapacity, divorce or any circumstances that may affect his or her ability to exercise rights of shareholder in Cheyi Network will not, in any manner and under any circumstances, take any action that may affect or hinder the fulfillment of his or her obligations under each of the Master Exclusive Service Agreement, the Business Cooperation Agreement, the Proxy Agreement, the Exclusive Option Agreement, and the Equity Interest Pledge Agreement executed by him or her on November 24, 2021. The Company believes that the contractual arrangements with its VIE and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, effective on January 1, 2020. The Foreign Investment Law has a catch-all provision under the definition of “foreign investment” which includes investments made by foreign investors in China through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. In the event that the State Council in the future promulgates laws and regulations that deem investments made by foreign investors through contractual arrangements as “foreign investment,” the Group’s ability to use the contractual arrangements with its VIEs and the Group’s ability to conduct business through the VIEs could be severely limited. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. The Company’s ability to conduct its car rental business that specializes in car hailing and driver management services may be negatively affected if the PRC government was to carry out any aforementioned actions. As a result, The Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to exert effective control over the VIE and their respective shareholders and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIE. Total assets and liabilities presented on the Company’s consolidated balance sheets and revenue, expense, net income presented on consolidated statement of income and comprehensive income as well as the cash flow from operating, investing and financing activities presented on the consolidated statement of cash flows are consolidation of the financial position, operation and cash flow of the Company’s subsidiaries, VIE and VIE’s subsidiaries. The Company has not provided any financial support to Cheyi Network for the years ended as of December 31, 2021 and 2020. The following financial statements of the VIE and VIE’s subsidiaries were included in the consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021 and 2020: As of December 31, 2021 2020 Total assets $ 17,606,804 $ - Total liabilities $ 8,293,662 $ - For the Years Ended 2021 2020 Revenue $ - $ - Net income $ - $ - For the Years Ended 2021 2020 Net cash flows from operating activities $ - $ - Net cash flows from investing activities $ - $ - Net cash flows from financing activities $ - $ - |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 15 – 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 2024. The Company has option to purchase the revenue equipment for a nominal amount at the end of the lease term. As of December 31, 2021, the Company has capital lease commitments for revenue equipment summarized for the following fiscal years: Minimum lease Present value of 12 months ending December 31, 2022 $ 2,641,587 $ 2,267,248 2023 136,063 121,407 2024 91,323 79,305 Thereafter - - Total 2,868,973 2,467,960 Less: amount representing interest (401,013 ) - Present value of minimum lease payments $ 2,467,960 $ 2,467,960 Less: current maturities (2,267,248 ) Capital lease obligations, long-term $ 200,712 As of December 31, 2020, the Company has capital lease commitments for revenue equipment summarized for the following fiscal years: Minimum lease Present value of 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 4% to 11.8% per annum, 3.4% to 17.0% per annum and 3.4% to 11.1% per annum for the years ended December 31, 2021, 2020 and 2019, respectively. Interest expenses incurred from capital lease were $8,411, $41,110 and $144,198 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company’s pledged revenue equipment under capital lease are as follow: Name of institution Maturities Interest Carrying Carrying China KangFu International Leasing Co., Ltd. From December 3, 2020 to December 12, 2022 11.8 % $ 124,293 $ 53,500 ShanDong HOWO Auto Finance Co., Ltd. From June 20, 2019 to May 15, 2021 3.4 % - 95,833 ShanDong HOWO Auto Finance Co., Ltd. From March 26, 2021 to March 26, 2024 4 % 287,477 - Other institutions* From January 7, 2019 to July 1, 2024 5.4 % $ 9,980,931 $ - $ 10,392,701 $ 149,333 * Other institutions represents institutions that extended lease financing to Cheyi Network with weighted average annual interest rate of 5.4% per annum and lease term of 36 months. 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, 2021 are payable as follows: 12 months ending December 31, 2022 112,387 2023 99,899 Future minimum operating lease payments $ 212,286 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, 2021, 2020 and 2019 were $111,024, $103,733 and $103,675, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | Note 16 – Related party balances and transactions Related party balances The amount due from related parties consists of the following: Related Party Name Relationship Nature December 31, December 31, MingZhu Logistics Mr. Jinlong Yang’s family member as sole shareholder Lending with no interests $ - $ 346,986 Mr. Jinlong Yang Chairman and Chief Executive Officer Advances for operational purpose 705,280 394,354 $ 705,280 $ 741,340 The Company has collected all amounts due from related parties by the end of May, 2022. The amount due to related parties consists of the following: Related Relationship Nature December 31, December 31, Exquisite Elite Limited Shareholder Advances for payment of professional fee $ 14,479 $ 802,672 Mr. Zuojie Dai Manager of MingZhu Pengcheng Advances for operational purpose 81,375 116,153 MingZhu Logistics Mr. Jinlong Yang’s family member as sole shareholder Lending with no interests 198,490 - Mr. Jingwei Zhang Chief Financial Officer Advances for operational purpose - 75,021 $ 294,344 $ 993,846 Collateral and Guarantee The collateral and guarantee made by related parties to the Company as of December 31, 2021 consists of the following: Related Parties Institution Name Term Aggregated Carrying Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From November 11, 2021 to November 5, 2022 $ 156,922 $ 156,922 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From September 23, 2021 to September 22, 2022 78,461 78,461 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From September 16, 2021 to September 15, 2022 78,461 78,461 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From July 14, 2021 to January 13, 2022 78,461 78,461 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From June 29, 2021 to January 13, 2022 784,609 784,609 Guarantee by Mr. Dongdong Wang, Mr. Dongdong Wang’s Spouse and five employees Zhejiang Tailong Commercial Bank Co.,Ltd From November 11, 2021 to November 19, 2022 470,765 470,765 Guarantee by Mr. Jinlong Yang and MingZhu Logistics. Industrial Bank Co., Ltd. From April 28, 2021 to May 7, 2022 470,765 376,612 Pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang China Everbright Bank Co., Ltd. From November 12, 2021 to November 20, 2022 2,353,827 2,259,674 Guarantee by Mr. Jinlong Yang and MingZhu Logistics. Bank of Communications Co., Ltd. From April 29, 2021 to May 9, 2022 3,923,046 3,295,359 Guarantee by Mr. Jinlong Yang and MingZhu Logistics. WeBank Co., Ltd. From August 26, 2021 to August 26, 2023 $ 470,765 $ 448,348 $ 8,866,082 $ 8,027,672 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 Carrying 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 |
Employee Benefits Government Pl
Employee Benefits Government Plan | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits Government Plan [Abstract] | |
Employee benefits government plan | Note 17 – 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, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 18 – 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 years ended December 31, 2021 and 2020, MingZhu Pengcheng was eligible to enjoy this policy. Significant components of the income tax expense consisted of the following for the years ended December 31, 2021 2020 2019 Current income tax expense $ 138,246 $ 376,823 $ 818,799 Deferred income tax (benefit) expense (2,832 ) (10,381 ) 2,451 Total $ 135,414 $ 366,442 $ 821,250 The tax effects of temporary difference that give rise to the deferred tax assets as of December 31, 2021 and December 31, 2020 are $35,491 and $129,467, respectively. Deferred tax assets consist of the following: As of As of Deferred tax assets: Allowance for doubtful accounts $ 35,491 $ 31,852 Contingent liabilities - - Net operating loss carryforwards: PRC 153,696 97,192 HONG KONG 9,633 9,654 198,820 138,698 Less valuation allowance (163,329 ) (106,846 ) Total deferred tax assets $ 35,491 $ 31,852 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 net operation loss (“NOL”) was mainly from MingZhu Management’s cumulative NOL of approximately $587,000 as of December 31, 2021 which will mostly expire in 2026. 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 25.0 % 25 % 25 % Effect of tax rate differential -13.3 % -5.2 % -2.2 % Valuation allowance deferred tax -27.2 % 4.9 % 2.2 % Non-deductible items* -1.4 % 7.2 % 8.3 % Effective tax rate -16.9 % 31.9 % 33.3 % * 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, 2021. 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 and before April 2018. Taxes payable consisted of the following: December 31, December 31, VAT taxes payable $ 345,133 $ 442,054 Income taxes payable 2,761,201 2,272,072 Other taxes payable 26,960 8,283 Total $ 3,133,294 $ 2,722,409 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders’ equity | Note 19 – 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. On March 12, 2021, the Company closed its direct 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. On December 29, 2021, the Company entered into a Share Purchase Agreement (the “SPA”) to acquire 100% of the equity interest of Cheyi (BVI) Limited (the “Cheyi BVI”) which operates its business through its subsidiary Zhejiang Cheyi Network Technology Co., Ltd. (the “Cheyi Network”), an integrated online car-hailing and driver management services company. Pursuant to the agreement, the total consideration for the acquisition of 100% equity ownership of Cheyi BVI is an aggregate of U.S. $29,466,032, consisting of the issuance by the Company to the shareholders of Cheyi BVI an aggregate of 3,189,000 fully paid Company’s ordinary shares (being U.S. $12,756,000 of $4 per share) and payment of $2,000,000 at closing, and Year-2021 earnout payment of U.S. $8,826,019 and Year-2022 earnout payment of U.S. $5,884,013 if the Cheyi BVI’s audited net income for its fiscal year 2021 and 2022 is no less than U.S. $3,000,000 respectively. The two earnout payments are due 13 months upon the delivery of Cheyi BVI’s audited financial statements. As of December 31, 2021, 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 19,134,277. 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, 2021 and 2020, 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 $916,148 and $877,886 as of December 31, 2021 and 2020, 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 $ Nil Nil |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 20 – 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. The Company assessed its performance guarantee obligations as of December 31, 2021 in accordance with ASC 460, Guarantees, no financial impact was found. 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, 2021 are listed in section “Note 12 – Leases”. Contingencies From time to time, the Company is party to certain legal proceedings, as well as certain asserted and unasserted claims. On January 20, 2022, Shenzhen Xincang Freight Co., Ltd. submitted the Civil Complaint to The People’s Court of Yantian District, requesting the defendant Jian Yang to compensate for the economic loss of RMB 233,055, judgment of the defendant Yangang Pearl for Jian Yang’s compensation liability to assume joint liability. According to the civil order issued by The People’s Court of Yantian District on January 27, 2022, the applicant Shenzhen Xincang Freight Co., Ltd. applies for property preservation in the case of the liability dispute between the applicant Shenzhen Xincang Freight Co., Ltd. of seizing and freezing the property worth RMB 234,990.12 under the name of the respondent Mingzhu. According to the notice of response issued by The People’s Court of Yantian District, on February 10, 2022, the case of the liability dispute between the plaintiff and the defendant Mingzhu and Jian Yang was filed by the Court on January 21, 2022. A trial is scheduled for March 18, 2022. As of the date of this annual report, the case has not yet been held. 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, 2021 and 2020. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Note 21 – Segment information The Company’s Chief Operating Decision Make (“CODM”) has been identified as its CEO, who reviews the financial results when making decisions about allocating resources and assessing performance of the trucking business and car rental business separately and therefore, the Company has two reportable segments. 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. The acquisition of Cheyi BVI was completed on December 29, 2021, in accordance with the ASC-805, the Company only is able to account the revenue generated by Cheyi BVI and its subsidiaries after the acquisition is completed. The Company had carefully evaluated the amount of such revenue generated by Cheyi BVI and its subsidiaries with reasonable estimates. The revenue generated by Cheyi BVI and its subsidiaries for the year ended December 31, 2021 is immaterial and hence no revenue is accounted in the consolidated financial statements for the years ended December 31, 2021, 2020 and 2019. Segment information for the years as of December 31, 2021 and 2020 is as follows: As of December 31, 2021 2020 Total assets Trucking services $ 76,967,764 $ 37,388,100 Car rental services 17,606,804 - Total $ 94,574,568 $ 37,388,100 Total Property and equipment, net Trucking services $ 2,243,651 $ 3,448,109 Car rental services 9,980,931 - Total $ 12,224,582 $ 3,448,109 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 22 – Subsequent events On March 14, 2022, the Company entered into a Share Purchase Agreement with Yinhua which develops and operates a comprehensive auto related service platform to serve auto insurance companies, and each of the shareholders of the Yinhua. Under terms of the share purchase agreement, we shall pay $18,302,500 in exchange for 100% equity of Yinhua. Of the total consideration to be paid, $15,304,000 shall be paid in form of 3,826,000 newly issued ordinary shares of the Company, representing $4.00 per ordinary share of the Company, and $1,000,000 upon closing. In addition, a cash earnout of $1,998,500 shall be paid if Yinhua achieves a net income target threshold of $1.3 million during the calendar year of 2022. Founded in 2018, Yinhua provides diversified, differentiated and customized value-added auto related services to auto insurance companies, where the services include road security services, car maintenance services, car inspection services and other services. Yinhua develops and operates a comprehensive auto related service platform for auto insurance companies combining intelligent human-vehicle interaction functions with car owner programs. We expect this acquisition to be immediately accretive to our revenue, gross margin and net income. On March 18, 2022, the parties completed the transaction. Upon the closing of the transaction, the Company acquired 100% shares outstanding of the Yinhua, and the Company issued 3,826,000 ordinary shares and paid $1,000,000 to the sellers. As required by ASC 805-20, Business Combinations – Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of net assets acquired. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable, net $ 4,519,839 Prepayments 8,050,558 Equipment, net 3,504 Deferred tax assets 16,415 Short-term bank borrowings (193,339 ) Others payable and accrued liabilities (7,685,086 ) Tax payable (1,126,777 ) Total identifiable net assets 3,585,114 Goodwill 13,590,609 Total purchase price for acquisition net of $1,126,777 of cash $ 17,175,723 The Company has 22,960,277 ordinary shares outstanding as of the date of this annual report. |
Reclassification
Reclassification | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Reclassification | Note 23 – Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations and performance position. A reclassification has been made to the Consolidated Balance Sheet and Consolidated Statements of Cash Flows for the fiscal year ended December 31, 2020, to reclassify the others receivable. |
Additional information (unaudit
Additional information (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Additional information (unaudited) | Note 24 – Additional information (unaudited) On December 29, 2021, the Company entered into a Share Purchase Agreement with Cheyi BVI which operates its business through its VIE, Cheyi Network, an integrated online car-hailing and driver management services company, and each of shareholders of Cheyi BVI. The transaction was completed on December 31, 2021. For the year ended December 31, 2021, Cheyi BVI and its subsidiaries generated approximately RMB 511 million (approximately $79 million) in revenue and the net income was approximately RMB 19 million (approximately $3 million). The following unaudited pro forma condensed combined financial statements have been prepared to give effect to the Merger. The unaudited pro forma condensed combined statements of income and comprehensive income combines the Cheyi BVI’s and the Company’s operations for the year ended December 31, 2021, presented as if the acquisition had been completed on January 1, 2021. The Company Cheyi BVI Adjustments Combined REVENUES $ 17,358,914 $ 79,321,839 $ - $ 96,680,753 COSTS AND EXPENSES Cost of sales 15,428,131 72,395,079 - 87,823,210 General and administrative expenses 2,050,954 1,750,863 - 3,801,817 Sales and marketing expenses 367,633 436,805 - 804,438 Total costs and expenses 17,846,718 74,582,747 - 92,429,465 (LOSS) INCOME FROM OPERATIONS (487,804 ) 4,739,092 - 4,251,288 OTHER (EXPENSES) INCOME Interest expenses (396,188 ) (895,655 ) - (1,291,843 ) Other expenses (360,032 ) (599 ) - (360,631 ) Other income 441,025 - - 441,025 Total other expenses, net (315,195 ) (896,254 ) - (1,211,449 ) (LOSS) INCOME BEFORE INCOME TAXES (802,999 ) 3,842,838 - 3,039,839 PROVISION FOR INCOME TAXES 135,414 842,756 - 978,170 NET (LOSS) INCOME (938,413 ) 3,000,082 - 2,061,669 OTHER COMPREHENSIVE (LOSS) INCOME Foreign currency translation adjustment (640,974 ) (444,772 ) - (1,085,746 ) COMPREHENSIVE (LOSS) INCOME $ (1,579,387 ) $ 2,555,310 $ - $ 975,923 Weighted average shares used in computation: Basic* 19,035,038 1 (1 ) 19,035,038 Diluted* 15,237,432 1 (1 ) 15,237,432 EARNINGS PER SHARE - BASIC* $ (0.05 ) $ - $ - $ 0.11 EARNINGS PER SHARE - DILUTED* $ (0.06 ) $ - $ - $ 0.14 The Company has prepared the unaudited pro forma combined condensed financial statements based on available information using assumptions that it believes are reasonable. These pro forma financial statements are being provided for informational purposes only and do not claim to represent the Company’s actual financial position or results of operations had the acquisition occurred on that date specified nor do they project the Company’s results of operations or financial position for any future period or date. The actual results reported by the combined company in periods following the acquisition may differ significantly from these unaudited pro forma combined condensed financial statements for a number of reasons. The pro forma financial statements do not account for the cost of any restructuring activities or synergies resulting from the Merger or other costs relating to the integration of the two companies, or other historical acquisitions that were undertaken by the Company. |
Condensed Financial Information
Condensed Financial Information of the Parent Company (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed financial information of the parent company (unaudited) | Note 25 – 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 subsidiaries 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, 2021 and 2020. PARENT COMPANY BALANCE SHEETS December 31, December 31, ASSETS CURRENT ASSETS: Cash $ 3,079,046 $ 16,876 Prepayments 4,701,968 303,102 Amount due from related parties 14,083,531 4,611,848 Total current assets 21,864,545 4,931,826 NON-CURRENT ASSET Investment in subsidiaries and VIEs 25,804,389 16,342,464 Total assets $ 47,668,934 $ 21,274,290 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES $ - $ - SHAREHOLDERS’ EQUITY Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 19,134,277 and 12,354,040 shares issued and outstanding as of December 31, 2021 and 2020, respectively* 19,134 12,354 Share subscription receivables (847,086 ) (847,086 ) Additional paid-in capital 41,792,071 13,824,820 Statutory reserves 916,148 877,886 Retained earnings 5,929,043 6,905,718 Accumulated other comprehensive (loss) income (140,376 ) 500,598 Total shareholders’ equity 47,668,934 21,274,290 Total liabilities and shareholders’ equity $ 47,668,934 $ 21,274,290 * Giving retroactive effect to the re-denomination and nominal issuance of shares effected on February 12, 2020. PARENT COMPANY STATEMENT OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Year Ended 2021 2020 2019 (LOSS) INCOME OF SUBSIDIARIES $ (490,484 ) $ 950,045 $ 2,020,552 COSTS AND EXPENSES General and Administrative expenses 447,929 167,749 377,758 Total costs and expenses 447,929 167,749 377,758 (LOSS) INCOME FROM OPERATION (938,413 ) 782,296 1,642,794 (LOSS) INCOME BEFORE INCOME TAXES (938,413 ) 782,296 1,642,794 PROVISION FOR INCOME TAXES - - - NET (LOSS) INCOME (938,413 ) 782,296 1,642,794 OTHER COMPREHENSIVE (LOSS) INCOME Foreign currency translation adjustment (640,974 ) 752,828 (121,195 ) COMPREHENSIVE (LOSS) INCOME $ (1,579,387 ) $ 1,535,124 $ 1,521,599 PARENT COMPANY STATEMENT OF CASH FLOWS For the Year Ended 2021 2020 2019 Cash flows from operating activities: Net (loss) income $ (938,413 ) $ 782,296 $ 1,642,794 Adjustments to reconcile net income to cash used in operating activities: Equity income of subsidiaries 490,484 (950,045 ) (2,020,552 ) Prepayments (4,400,661 ) - 291,484 Net cash (used in) operating activities (4,848,590 ) (167,749 ) (86,274 ) Cash flows from financing activities: Amounts advanced from related parties (10,556,693 ) 166,872 (19,145 ) Proceeds from private placement 18,465,009 - - Net cash provided by (used in) financing activities 7,908,316 166,872 (19,145 ) Effect of exchange rate change on cash 2444 82 30 Net increase (decrease) in cash 3,062,170 (795 ) (105,389 ) Cash at beginning of the year 16,876 17,671 123,060 Cash at end of the year $ 3,079,046 $ 16,876 $ 17,671 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity [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, its subsidiaries, VIE and VIE’s subsidiaries for which the Company is exercises control and, when applicable, entities for which the Company has a controlling financial interest or the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. All transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been 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 Incorporated on January 15, 2018 A holding company 100% directly owned by MingZhu Cayman YGMZ (Hong Kong) Limited (“MingZhu HK”) ● ● ● A Hong Kong company Incorporated on February 2, 2018 A holding company 100% directly owned by MingZhu BVI Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu” or “Mingzhu”) ● ● ● A PRC limited liability company Incorporated on July 10, 2002 Providing trucking services 100% directly owned by MingZhu HK Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) ● ● ● A PRC limited liability company Incorporated on September 5, 2018 Transportation and supply chain management services 100% directly owned by MingZhu HK Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) ● ● ● A PRC limited liability company Incorporated on April 7, 2010 Providing trucking services 100% directly owned by MingZhu Cheyi (BVI) Limited (“Cheyi BVI”) ● ● ● A British Virgin Islands company Incorporated on September 29, 2021 A holding company 100% directly owned by MingZhu Cayman Cheyi (Hong Kong) Limited (“Cheyi HK”) ● ● ● A Hong Kong company Incorporated on October 22, 2021 A holding company 100% directly owned by Cheyi BVI Ningbo Cheyi Corporate Information Consulting Co., Ltd. (“Ningbo Cheyi” or Cheyi WFOE) ● ● ● A PRC limited liability company Incorporated on November 2, 2021 A holding company 100% directly owned by Cheyi HK Zhejiang Cheyi Network Technology Co., Ltd. (“Cheyi Network”) ● ● ● A PRC limited liability company Incorporated on December 10, 2015 An integrated online car-hailing and driver management services company 100% owned by Ningbo Cheyi via contractual arrangements |
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, the fair value of the reporting unit for the goodwill impairment test, 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 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 the 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 6.3726, 6.5250 and 6.9618 as of December 31, 2021, 2020 and 2019, 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 6.4508, 6.9042 and 6.9081 for the years ended December 31, 2021, 2020 and 2019, respectively. For the purpose of presenting the 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 7.7996, 7.7894 and 7.7534 as of December 31, 2021, 2020 and 2019, 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 7.7727, 7.8351 and 7.7559 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Cash and cash equivalents | Cash and cash equivalents 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, 2021 and 2020, 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. Cash equivalents included short term fixed deposit. As of December 31, 2021, the Company had a fixed deposit of $78,461 (RMB 500,000) in a bank at an annual interest rate of 1.95% with a maturity date of June 11, 2022. |
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, 2021, there was restricted cash balance of $ Nil |
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– trucking* 5 years Revenue equipment – car rental** 6 years * Revenue equipment – trucking are trucks and trailers only used for providing trucking services. ** Revenue equipment – car rental are passenger cars only used for providing car rental 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, 2021 and 2020, $ 2,267,248 and $51,135 was recorded to “Current portion of capital lease and financing obligations”, respectively; $200,712 and $27,989 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, 2021, 2020 and 2019, 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, 2021 and 2020, 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 Revenues are mainly generated from provision of trucking services and car rental services. The Company’s car rental services are accounted for under Accounting Standards Codification (“ASC”) Topic 840, Leases (“ASC 840”). The Company’s trucking services are accounted for under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services. Trucking service under ASC 606 The core principle of the ASC 606 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 material impact on the Company’s consolidated financial statements. For each trip of the provision of trucking services, we have one single performance obligation, which is to transport our 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 our customers as our 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. We utilize independent contractors and third-party carriers in the performance of certain transportation services. While various ownership arrangements may exist for the equipment utilized to perform these services, including company-owned, owner-operator owned, and third-party carriers, revenue is generated from the same base of customers. We evaluate whether our 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. Our evaluation determined that we are 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 our evaluation of the control model, we determined that all of our 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 ASC 606 that permits the Company not to 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 ASC 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, 2021, the Company had $35,727 of unbilled amounts recorded in accounts receivable and $31,754 of accrued freight costs recorded in accounts payable. Disaggregated information of trucking services revenues by geographic locations are as follows: 2021 2020 2019 Guangdong province $ 14,662,029 $ 13,522,929 $ 15,209,518 Xinjiang province 2,696,885 5,271,022 14,201,032 Total revenues $ 17,358,914 $ 18,793,951 $ 29,410,550 Car rental services under ASC 840 Under ASC 840 rental income from operating leases is recognized on a straight-line basis, based on contractual lease terms with fixed and determinable increases over the non-cancellable term of the related lease when collectability is reasonably assured. The Company offers a broad portfolio of passenger cars for rent on a monthly basis with most rental agreements cancelable upon the return of cars. The customer has the right to cancel the lease at any time during the rental period for a subsequent month’s rental and payments are generally billed in advance on a month-to-month basis. The revenue derived from car rental services are primarily provided by the Cheyi BVI and its subsidiaries, which is acquired by the Company on December 29, 2021. In accordance with the ASC-805, the Company only is able to account the revenue generated by Cheyi BVI and its subsidiaries after the acquisition is completed. The Company had carefully evaluated the amount of such revenue generated by Cheyi BVI and its subsidiaries with reasonable estimates. The revenue generated by Cheyi BVI and its subsidiaries for the year ended December 31, 2021 is immaterial and hence no revenue is accounted in the consolidated financial statements for the years ended December 31, 2021, 2020 and 2019. |
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 $367,633, $50,083 and $77,615 for the years ended December 31, 2021, 2020 and 2019, 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 $31,145, $29,100 and $56,097 for the years ended December 31, 2021, 2020 and 2019, 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 audited 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 (loss) income | Comprehensive (loss) income Comprehensive (loss) income consists of two components, net (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income 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 (loss) income 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, 2021, 2020 and 2019, the diluted EPS was -0.06, 0.08 and 0.18, 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 Before the completion of acquisition of Cheyi BVI 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. After the completion of acquisition of Cheyi BVI The Company’s CODM has been identified as its CEO, who reviews the financial results when making decisions about allocating resources and assessing performance of the trucking business and car rental business separately and therefore, the Company has two reportable segments. 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), which supersedes the guidance in ASC Topic 840, Leases. ASU 2016-02 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via a right-of-use asset and lease liability, and additional qualitative and quantitative disclosures. In July 2018, ASU No. 2018-10, Codification Improvements to Topic 842, Leases, was issued to provide more detailed guidance and additional clarification for implementing ASU No. 2016-02. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an optional transition method in addition to the existing modified retrospective transition method by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Furthermore, in June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which defers the effective date of ASU No. 2016-02 for certain entities. This update is effective for the Group for annual reporting periods beginning after December 15, 2021 and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. The Group does not plan to early adopt this guidance and is evaluating the impact of the new standard. Under the Jumpstart Our Business Startups Act of 2012, as amended (“the JOBS Act”), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2022. 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. The Company is currently evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements and related disclosures. 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, cash equivalents and restricted cash. As of December 31, 2021, and 2020, substantially most of the Company’s 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, 2021, two customers accounted for 23.0% and 13.7% of the Company’s total revenues. 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. No other customer accounts for more than 10% of the Company’s revenue for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, three customers accounted for 24.2%, 16.2% and 11.7% of the total balance of accounts receivable. As of December 31, 2020, two customers accounted for 54.3% and 10.2% 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, 2021 and 2020, respectively. (d) Vendor concentration risk For the year ended December 31, 2021, three subcontractors accounted for 33.4%, 18.8% and 10.3% of the Company’s total subcontracting costs. 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. No other subcontractor accounts for more than 10% of the Company’s total subcontracting costs for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, one subcontractor accounted for 18.4% of the total balance of accounts payable. As of December 31, 2020, three subcontractors accounted for 40.1%, 39.6% and 14.3% 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, 2021 and 2020, respectively. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Business and Organization Table [Abstract] | |
Schedule of fair values of net assets acquired and liabilities assumed | Recognized amounts of identifiable assets acquired and liabilities Accounts receivable, net $ 216,572 Prepayments 575,913 Others receivable 4,761,164 Equipment, net 9,980,931 Deferred tax assets 10 Deposits 595,149 Short-term bank borrowings (1,647,679 ) Accounts payable (803,784 ) Others payable and accrued liabilities (1,631,610 ) Tax payable (1,859,485 ) Capital lease and financing obligations (2,351,104 ) Total identifiable net assets 7,836,077 Add: Goodwill 20,152,890 Total purchase price for acquisition net of $1,477,065 of cash $ 27,988,967 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity [Abstract] | |
Schedule of consolidated financial statements | Name Background Ownership MingZhu Investment Limited (“MingZhu BVI”) ● ● ● A British Virgin Islands company Incorporated on January 15, 2018 A holding company 100% directly owned by MingZhu Cayman YGMZ (Hong Kong) Limited (“MingZhu HK”) ● ● ● A Hong Kong company Incorporated on February 2, 2018 A holding company 100% directly owned by MingZhu BVI Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu” or “Mingzhu”) ● ● ● A PRC limited liability company Incorporated on July 10, 2002 Providing trucking services 100% directly owned by MingZhu HK Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) ● ● ● A PRC limited liability company Incorporated on September 5, 2018 Transportation and supply chain management services 100% directly owned by MingZhu HK Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) ● ● ● A PRC limited liability company Incorporated on April 7, 2010 Providing trucking services 100% directly owned by MingZhu Cheyi (BVI) Limited (“Cheyi BVI”) ● ● ● A British Virgin Islands company Incorporated on September 29, 2021 A holding company 100% directly owned by MingZhu Cayman Cheyi (Hong Kong) Limited (“Cheyi HK”) ● ● ● A Hong Kong company Incorporated on October 22, 2021 A holding company 100% directly owned by Cheyi BVI Ningbo Cheyi Corporate Information Consulting Co., Ltd. (“Ningbo Cheyi” or Cheyi WFOE) ● ● ● A PRC limited liability company Incorporated on November 2, 2021 A holding company 100% directly owned by Cheyi HK Zhejiang Cheyi Network Technology Co., Ltd. (“Cheyi Network”) ● ● ● A PRC limited liability company Incorporated on December 10, 2015 An integrated online car-hailing and driver management services company 100% owned by Ningbo Cheyi via contractual arrangements |
Schedule of estimated useful lives of assets | Classification Estimated Buildings and improvements 10 years Computer and office equipment 3-5 years Revenue equipment– trucking* 5 years Revenue equipment – car rental** 6 years * Revenue equipment – trucking are trucks and trailers only used for providing trucking services. ** Revenue equipment – car rental are passenger cars only used for providing car rental services. |
Schedule of disaggregated information of revenues | 2021 2020 2019 Guangdong province $ 14,662,029 $ 13,522,929 $ 15,209,518 Xinjiang province 2,696,885 5,271,022 14,201,032 Total revenues $ 17,358,914 $ 18,793,951 $ 29,410,550 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | December 31, December 31, Cash on hand $ 51,053 $ 24,545 Cash at bank 5,622,603 2,081,080 Fixed deposits 78,461 - Cash and cash equivalents $ 5,752,117 $ 2,105,625 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable, net | December 31, December 31, Accounts receivable $ 3,802,773 $ 5,561,392 Allowance for doubtful accounts (152,768 ) (217,676 ) Total accounts receivable, net $ 3,650,005 $ 5,343,716 |
Schedule of allowance for doubtful accounts | December 31, December 31, December 31, Beginning balance $ 217,676 $ 122,056 $ 89,069 Provision 140,204 82,647 34,356 Write off (136,602 ) - - Exchange rate effect (68,510 ) 12,973 (1,369 ) Ending balance $ 152,768 $ 217,676 $ 122,056 |
Prepayments (Tables)
Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments [Abstract] | |
Schedule of prepayments | December 31, December 31, Prepayments Prepayment - subcontracting $ 4,420,242 $ 416,442 Prepayment - fuel 277,666 179,954 Prepayment - insurance 102,188 92,089 Prepayment - parts and others 183,999 370,850 Prepayment - salaries 436,847 - Prepayment - legal 52,996 - Total prepayments $ 5,473,938 $ 1,059,335 |
Other Receivables (reclassifi_2
Other Receivables (reclassification) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables [Abstract] | |
Schedule of other receivables | December 31, December 31, Reclassification Other receivables Other receivables, disposal of revenue equipment 169,095 31,082 Others* 67,614 - Vehicle rental in advance 427,716 - Pay on behalf of third parties 875,619 - Total other receivables $ 1,540,044 $ 31,082 * A balance of $11,416,940 is reclassified from other receivables to loans receivable. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment net | December 31, December 31, Property and equipment Buildings and improvements $ 1,188,006 $ 1,160,259 Computer and office equipment 446,033 21,122 Revenue equipment – trucking 16,107,826 8,516,665 Revenue equipment – car rental 9,980,931 Subtotal 27,722,796 9,698,046 Less: accumulated depreciation (15,498,214 ) (6,249,937 ) Property and equipment, net $ 12,224,582 $ 3,448,109 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of fair values of net assets acquired and liabilities assumed | Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable, net $ 216,572 Prepayments 575,913 Others receivable 4,761,164 Equipment, net 9,980,931 Deferred tax assets 10 Deposits 595,149 Short-term bank borrowings (1,647,679 ) Accounts payable (803,784 ) Others payable and accrued liabilities (1,631,610 ) Tax payable (1,859,485 ) Capital lease and financing obligations (2,351,104 ) Total identifiable net assets 7,836,077 Add: Goodwill 20,152,890 Total purchase price for acquisition net of $1,477,065 of cash $ 27,988,967 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of other payables and accrued liabilities | December 31, December 31, Other payables and accrued liabilities Rental deposits $ 220,416 $ 215,268 Salary payables 157,970 127,610 Others 44,053 110,540 Receipt in advance 153,399 77,702 Payable under acquisition 16,710,032 - Advance for operational purpose 286,820 - Lending with no interests 1,220,176 - Deposits for purchase of vehicles 476,258 - Total other payables and accrued liabilities $ 19,269,124 $ 531,120 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Facilities Table [Abstract] | |
Schedule of short-term bank borrowings | Bank name Term Interest rate Collateral/ Guarantee Date of December 31, December 31, Hangzhou United Rural Commercial Bank Co., Ltd. (1) From November 11, 2021 to November 5, 2022 Weighted average rate of 6.8% Guarantee by Mr. Dongdong Wang and his Spouse - $ 156,922 $ - Hangzhou United Rural Commercial Bank Co., Ltd. (1) From September 23, 2021 to September 22, 2022 Weighted average rate of 5.8% Guarantee by Mr. Dongdong Wang and his Spouse - 78,461 - Hangzhou United Rural Commercial Bank Co., Ltd. (1) From September 16, 2021 to September 15, 2022 Weighted average rate of 5.8% Guarantee by Mr. Dongdong Wang and his Spouse - 78,461 - Hangzhou United Rural Commercial Bank Co., Ltd. (1) From July 14, 2021 to January 13, 2022 Weighted average rate of 5.5% Guarantee by Mr. Dongdong Wang and his Spouse - 78,461 - Hangzhou United Rural Commercial Bank Co.,Ltd. (1) From June 29, 2021 to January 13, 2022 Weighted average rate of 5.5% Guarantee by Mr. Dongdong Wang and his Spouse January 13, 2022 784,609 - Zhejiang Tailong Commercial Bank Co., Ltd. (2) From November 11, 2021 to November 19, 2022 Weighted average rate of 6.8% Guarantee by Mr. Dongdong Wang, Mr. Dongdong Wang’s Spouse and five employees - 470,765 - Industrial Bank Co., Ltd. (3) From April 28, 2021 to May 7, 2022 Weighted average rate of 5.7% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. May 7, 2022 376,612 - China Everbright Bank Co., Ltd. (4) From November 12, 2021 to November 20, 2022 Weighted average rate of 6.0% Pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang - 2,259,674 -- Bank of Communications Co., Ltd. (5) From April 29, 2021 to May 9, 2022 Weighted average rate of 5.7% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. May 9, 2022 3,295,359 - The Industrial Bank Co., Ltd. (3) 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 (6) 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 (4) 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 December 20, 2021 - 2,114,943 Bank of Communications (5) 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 December 6, 2021 - 3,754,788 $ 7,579,324 $ 6,551,724 (1) In November 26, 2018, Cheyi Network entered into a revolving line of credit agreement with Hangzhou United Rural Commercial Bank Co., Ltd. pursuant to which Cheyi Network is able to borrow up to RMB5,500,000 (approximately $863,070). The line of credit agreement entitles Cheyi Network to enter into separate loan contracts under such line of credit. Cheyi Network utilized a total of RMB5,000,000 (approximately $784,609) during the year ended December 31, 2021 via five withdraws. 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. The Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements after the acquisition of Cheyi Network. (2) In November 11, 2021, the Company entered into a one-year term loan agreement with Zhejiang Tailong Commercial Bank Co., Ltd. pursuant to which the Company is able to borrow RMB 3,000,000 (approximately $470,765). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. (3) 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 (4) 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. The Company paid off the above loan by October 2021 followed by a new credit line withdrawal of RMB 15,000,000 (approximately $2,353,827). As of December 31, 2021, RMB 15,000,000 was not utilized by the Company. (5) 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. In April 2021, the Company entered into a one (6) 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. |
Schedule of long-term bank borrowings | Bank name Term Interest rate Collateral/ Guarantee Date of December 31, December 31, WeBank Co., Ltd. From August 26, 2021 to August 26, 2023 Weighted average rate of 9.0% Guarantee by Mr. Jinlong Yang and MingZhu Logistics. - $ 448,348 $ - Less: current maturities (269,009 ) - Non-current maturities $ 179,339 $ - |
Schedule of loans from financial institutions | As of As of Payments due by period Less than 1 year $ 269,009 $ - 1-2 years 179,339 - Total $ 448,348 $ - |
Schedule of outstanding balances and maturities | As of As of Payments due by period Less than 1 year $ 144,126 $ 235,487 1-2 years - 136,400 Total $ 144,126 $ 371,887 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity [Abstract] | |
Schedule of consolidated financial statements | As of December 31, 2021 2020 Total assets $ 17,606,804 $ - Total liabilities $ 8,293,662 $ - For the Years Ended 2021 2020 Revenue $ - $ - Net income $ - $ - For the Years Ended 2021 2020 Net cash flows from operating activities $ - $ - Net cash flows from investing activities $ - $ - Net cash flows from financing activities $ - $ - |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of capital lease commitments for revenue equipment | Minimum lease Present value of 12 months ending December 31, 2022 $ 2,641,587 $ 2,267,248 2023 136,063 121,407 2024 91,323 79,305 Thereafter - - Total 2,868,973 2,467,960 Less: amount representing interest (401,013 ) - Present value of minimum lease payments $ 2,467,960 $ 2,467,960 Less: current maturities (2,267,248 ) Capital lease obligations, long-term $ 200,712 Minimum lease Present value of 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 Carrying China KangFu International Leasing Co., Ltd. From December 3, 2020 to December 12, 2022 11.8 % $ 124,293 $ 53,500 ShanDong HOWO Auto Finance Co., Ltd. From June 20, 2019 to May 15, 2021 3.4 % - 95,833 ShanDong HOWO Auto Finance Co., Ltd. From March 26, 2021 to March 26, 2024 4 % 287,477 - Other institutions* From January 7, 2019 to July 1, 2024 5.4 % $ 9,980,931 $ - $ 10,392,701 $ 149,333 * Other institutions represents institutions that extended lease financing to Cheyi Network with weighted average annual interest rate of 5.4% per annum and lease term of 36 months. |
Schedule of future minimum lease payments under the non-cancellable operating lease | 12 months ending December 31, 2022 112,387 2023 99,899 Future minimum operating lease payments $ 212,286 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, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | Related Party Name Relationship Nature December 31, December 31, MingZhu Logistics Mr. Jinlong Yang’s family member as sole shareholder Lending with no interests $ - $ 346,986 Mr. Jinlong Yang Chairman and Chief Executive Officer Advances for operational purpose 705,280 394,354 $ 705,280 $ 741,340 |
Schedule of due to related parties | Related Relationship Nature December 31, December 31, Exquisite Elite Limited Shareholder Advances for payment of professional fee $ 14,479 $ 802,672 Mr. Zuojie Dai Manager of MingZhu Pengcheng Advances for operational purpose 81,375 116,153 MingZhu Logistics Mr. Jinlong Yang’s family member as sole shareholder Lending with no interests 198,490 - Mr. Jingwei Zhang Chief Financial Officer Advances for operational purpose - 75,021 $ 294,344 $ 993,846 |
Schedule of collateral and guarantee made by related parties | Related Parties Institution Name Term Aggregated Carrying Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From November 11, 2021 to November 5, 2022 $ 156,922 $ 156,922 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From September 23, 2021 to September 22, 2022 78,461 78,461 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From September 16, 2021 to September 15, 2022 78,461 78,461 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From July 14, 2021 to January 13, 2022 78,461 78,461 Guarantee by Mr. Dongdong Wang and his Spouse Hangzhou United Rural Commercial Bank Co.,Ltd. From June 29, 2021 to January 13, 2022 784,609 784,609 Guarantee by Mr. Dongdong Wang, Mr. Dongdong Wang’s Spouse and five employees Zhejiang Tailong Commercial Bank Co.,Ltd From November 11, 2021 to November 19, 2022 470,765 470,765 Guarantee by Mr. Jinlong Yang and MingZhu Logistics. Industrial Bank Co., Ltd. From April 28, 2021 to May 7, 2022 470,765 376,612 Pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang China Everbright Bank Co., Ltd. From November 12, 2021 to November 20, 2022 2,353,827 2,259,674 Guarantee by Mr. Jinlong Yang and MingZhu Logistics. Bank of Communications Co., Ltd. From April 29, 2021 to May 9, 2022 3,923,046 3,295,359 Guarantee by Mr. Jinlong Yang and MingZhu Logistics. WeBank Co., Ltd. From August 26, 2021 to August 26, 2023 $ 470,765 $ 448,348 $ 8,866,082 $ 8,027,672 Related Parties Institution Name Term Aggregated Carrying 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expenses | 2021 2020 2019 Current income tax expense $ 138,246 $ 376,823 $ 818,799 Deferred income tax (benefit) expense (2,832 ) (10,381 ) 2,451 Total $ 135,414 $ 366,442 $ 821,250 |
Schedule of deferred tax assets | As of As of Deferred tax assets: Allowance for doubtful accounts $ 35,491 $ 31,852 Contingent liabilities - - Net operating loss carryforwards: PRC 153,696 97,192 HONG KONG 9,633 9,654 198,820 138,698 Less valuation allowance (163,329 ) (106,846 ) Total deferred tax assets $ 35,491 $ 31,852 |
Schedule of reconciliation of effective income tax rate | December 31, December 31, December 31, PRC statutory tax rate 25.0 % 25 % 25 % Effect of tax rate differential -13.3 % -5.2 % -2.2 % Valuation allowance deferred tax -27.2 % 4.9 % 2.2 % Non-deductible items* -1.4 % 7.2 % 8.3 % Effective tax rate -16.9 % 31.9 % 33.3 % * 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. |
Schedule of taxes payable | December 31, December 31, VAT taxes payable $ 345,133 $ 442,054 Income taxes payable 2,761,201 2,272,072 Other taxes payable 26,960 8,283 Total $ 3,133,294 $ 2,722,409 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment information | As of December 31, 2021 2020 Total assets Trucking services $ 76,967,764 $ 37,388,100 Car rental services 17,606,804 - Total $ 94,574,568 $ 37,388,100 Total Property and equipment, net Trucking services $ 2,243,651 $ 3,448,109 Car rental services 9,980,931 - Total $ 12,224,582 $ 3,448,109 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Schedule of allocation of estimated fair values of net assets acquired and liabilities | Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable, net $ 4,519,839 Prepayments 8,050,558 Equipment, net 3,504 Deferred tax assets 16,415 Short-term bank borrowings (193,339 ) Others payable and accrued liabilities (7,685,086 ) Tax payable (1,126,777 ) Total identifiable net assets 3,585,114 Goodwill 13,590,609 Total purchase price for acquisition net of $1,126,777 of cash $ 17,175,723 |
Additional information (unaud_2
Additional information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of condensed combined statements of income and comprehensive income | The Company Cheyi BVI Adjustments Combined REVENUES $ 17,358,914 $ 79,321,839 $ - $ 96,680,753 COSTS AND EXPENSES Cost of sales 15,428,131 72,395,079 - 87,823,210 General and administrative expenses 2,050,954 1,750,863 - 3,801,817 Sales and marketing expenses 367,633 436,805 - 804,438 Total costs and expenses 17,846,718 74,582,747 - 92,429,465 (LOSS) INCOME FROM OPERATIONS (487,804 ) 4,739,092 - 4,251,288 OTHER (EXPENSES) INCOME Interest expenses (396,188 ) (895,655 ) - (1,291,843 ) Other expenses (360,032 ) (599 ) - (360,631 ) Other income 441,025 - - 441,025 Total other expenses, net (315,195 ) (896,254 ) - (1,211,449 ) (LOSS) INCOME BEFORE INCOME TAXES (802,999 ) 3,842,838 - 3,039,839 PROVISION FOR INCOME TAXES 135,414 842,756 - 978,170 NET (LOSS) INCOME (938,413 ) 3,000,082 - 2,061,669 OTHER COMPREHENSIVE (LOSS) INCOME Foreign currency translation adjustment (640,974 ) (444,772 ) - (1,085,746 ) COMPREHENSIVE (LOSS) INCOME $ (1,579,387 ) $ 2,555,310 $ - $ 975,923 Weighted average shares used in computation: Basic* 19,035,038 1 (1 ) 19,035,038 Diluted* 15,237,432 1 (1 ) 15,237,432 EARNINGS PER SHARE - BASIC* $ (0.05 ) $ - $ - $ 0.11 EARNINGS PER SHARE - DILUTED* $ (0.06 ) $ - $ - $ 0.14 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Unaudited) (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 3,079,046 $ 16,876 Prepayments 4,701,968 303,102 Amount due from related parties 14,083,531 4,611,848 Total current assets 21,864,545 4,931,826 NON-CURRENT ASSET Investment in subsidiaries and VIEs 25,804,389 16,342,464 Total assets $ 47,668,934 $ 21,274,290 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES $ - $ - SHAREHOLDERS’ EQUITY Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 19,134,277 and 12,354,040 shares issued and outstanding as of December 31, 2021 and 2020, respectively* 19,134 12,354 Share subscription receivables (847,086 ) (847,086 ) Additional paid-in capital 41,792,071 13,824,820 Statutory reserves 916,148 877,886 Retained earnings 5,929,043 6,905,718 Accumulated other comprehensive (loss) income (140,376 ) 500,598 Total shareholders’ equity 47,668,934 21,274,290 Total liabilities and shareholders’ equity $ 47,668,934 $ 21,274,290 |
Schedule of parent company statement of (loss) income and comprehensive (loss) income | For the Year Ended 2021 2020 2019 (LOSS) INCOME OF SUBSIDIARIES $ (490,484 ) $ 950,045 $ 2,020,552 COSTS AND EXPENSES General and Administrative expenses 447,929 167,749 377,758 Total costs and expenses 447,929 167,749 377,758 (LOSS) INCOME FROM OPERATION (938,413 ) 782,296 1,642,794 (LOSS) INCOME BEFORE INCOME TAXES (938,413 ) 782,296 1,642,794 PROVISION FOR INCOME TAXES - - - NET (LOSS) INCOME (938,413 ) 782,296 1,642,794 OTHER COMPREHENSIVE (LOSS) INCOME Foreign currency translation adjustment (640,974 ) 752,828 (121,195 ) COMPREHENSIVE (LOSS) INCOME $ (1,579,387 ) $ 1,535,124 $ 1,521,599 |
Schedule of parent company statement of cash flows | For the Year Ended 2021 2020 2019 Cash flows from operating activities: Net (loss) income $ (938,413 ) $ 782,296 $ 1,642,794 Adjustments to reconcile net income to cash used in operating activities: Equity income of subsidiaries 490,484 (950,045 ) (2,020,552 ) Prepayments (4,400,661 ) - 291,484 Net cash (used in) operating activities (4,848,590 ) (167,749 ) (86,274 ) Cash flows from financing activities: Amounts advanced from related parties (10,556,693 ) 166,872 (19,145 ) Proceeds from private placement 18,465,009 - - Net cash provided by (used in) financing activities 7,908,316 166,872 (19,145 ) Effect of exchange rate change on cash 2444 82 30 Net increase (decrease) in cash 3,062,170 (795 ) (105,389 ) Cash at beginning of the year 16,876 17,671 123,060 Cash at end of the year $ 3,079,046 $ 16,876 $ 17,671 |
Nature of Business and Organi_3
Nature of Business and Organization (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2021 USD ($) $ / shares shares | Jun. 14, 2021 USD ($) | Apr. 21, 2021 USD ($) | Mar. 12, 2021 USD ($) $ / shares | Dec. 04, 2020 $ / shares shares | Oct. 30, 2020 $ / shares shares | Feb. 12, 2020 | Apr. 13, 2018 $ / shares shares | Apr. 13, 2018 $ / shares shares | Oct. 21, 2020 $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 $ / shares shares | |
Nature of Business and Organization (Details) [Line Items] | |||||||||||||
Number of shares issued (in Shares) | shares | 1,000 | 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. | 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 | 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. | ||||||||||||
Public offering | $ 3,333,335 | ||||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||
Purchase of warrants | $ 0.75 | ||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 6 | ||||||||||||
Offering expenses payable | $ 18,000,000 | ||||||||||||
Warrant and purchased total of ordinary shares | $ 43,616 | $ 214,286 | |||||||||||
Equity interest percentage | 100% | ||||||||||||
Equity ownership percentage | 100% | ||||||||||||
Aggregate value | $ 29,466,032 | ||||||||||||
Aggregate shares (in Shares) | shares | 3,189,000 | ||||||||||||
Earnout payment | $ 8,826,019 | ||||||||||||
Net income | $ 3,000,000 | ||||||||||||
Ordinary shares, shares authorized (in Shares) | shares | 50,000,000 | 50,000,000 | |||||||||||
Ordinary shares, shares issued (in Shares) | shares | 19,134,277 | 12,354,040 | |||||||||||
Ordinary Shares [Member] | |||||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.001 | ||||||||||||
IPO [Member] | |||||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||||
Number of shares issued (in Shares) | shares | 3,000,000 | ||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 4 | ||||||||||||
Over-Allotment Option [Member] | |||||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 4 | $ 4 | |||||||||||
Purchase of ordinary shares (in Shares) | shares | 4,040 | 350,000 | |||||||||||
Forecast [Member] | |||||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||||
Earnout payment | $ 5,884,013 | ||||||||||||
Net income | $ 3,000,000 | ||||||||||||
Cheyi BVI [Member] | |||||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 4 | ||||||||||||
Aggregate value | $ 12,756,000 | ||||||||||||
Earnout payment | $ 2,000,000 |
Nature of Business and Organi_4
Nature of Business and Organization (Details) - Schedule of fair values of net assets acquired and liabilities assumed | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Recognized amounts of identifiable assets acquired and liabilities | |
Accounts receivable, net | $ 216,572 |
Prepayments | 575,913 |
Others receivable | 4,761,164 |
Equipment, net | 9,980,931 |
Deferred tax assets | 10 |
Deposits | 595,149 |
Short-term bank borrowings | (1,647,679) |
Accounts payable | (803,784) |
Others payable and accrued liabilities | (1,631,610) |
Tax payable | (1,859,485) |
Capital lease and financing obligations | (2,351,104) |
Total identifiable net assets | 7,836,077 |
Add: Goodwill | 20,152,890 |
Total purchase price for acquisition net of $1,477,065 of cash | $ 27,988,967 |
Nature of Business and Organi_5
Nature of Business and Organization (Details) - Schedule of fair values of net assets acquired and liabilities assumed (Parentheticals) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Schedule Of Fair Values Of Net Assets Acquired And Liabilities Assumed Abstract | |
Acquisition net of cash | $ 1,477,065 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||||||
Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | Dec. 31, 2019 USD ($) $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 ¥ / shares | Dec. 31, 2019 $ / shares | Dec. 31, 2019 ¥ / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Exchange rate | (per share) | $ 7.7996 | ¥ 6.3726 | $ 7.7894 | ¥ 6.525 | $ 7.7534 | ¥ 6.9618 | |||
Average exchange rate | (per share) | $ 7.7727 | ¥ 6.4508 | $ 7.8351 | ¥ 6.9042 | $ 7.7559 | ¥ 6.9081 | |||
Fixed deposit | $ 78,461 | ¥ 500,000 | |||||||
Annual interest rate | 1.95% | 1.95% | |||||||
Maturity date | Jun. 11, 2022 | Jun. 11, 2022 | |||||||
Restricted cash (in Dollars) | $ 9,500,000 | ||||||||
Property and equipment, net, percentage | 5% | ||||||||
Current portion of capital lease and financing obligation (in Dollars) | $ 2,267,248 | 51,135 | |||||||
Long term portion of capital lease and financing obligations (in Dollars) | $ 200,712 | 27,989 | |||||||
Lease property economic life percentage | 75% | ||||||||
Present value percentage | 90% | ||||||||
Unbilled amounts (in Dollars) | $ 35,727 | ||||||||
Accrued freight costs (in Dollars) | 31,754 | ||||||||
Sales and marketing expenses (in Dollars) | 367,633 | 50,083 | $ 77,615 | ||||||
Employee benefit amount (in Dollars) | $ 31,145 | $ 29,100 | $ 56,097 | ||||||
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 audited consolidated balance sheets. Revenues are presented net of applicable VAT. | ||||||||
Tax benefit percentage | 50% | ||||||||
Earnings per share (in Dollars per share) | $ / shares | $ (0.06) | $ 0.08 | $ 0.18 | ||||||
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] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 10% | 10% | 10% | ||||||
Supplier Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 13% | ||||||||
Revenue [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Number of customers | 2 | 2 | 3 | ||||||
Revenue [Member] | Customer One [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 23% | 48.60% | 25.20% | ||||||
Revenue [Member] | Customer Two [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 13.70% | 17.20% | 15.80% | ||||||
Revenue [Member] | Customer Three [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 12.20% | ||||||||
Revenue [Member] | Supplier Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 39.60% | ||||||||
Accounts Receivable [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Number of customers | 3 | 2 | |||||||
Concentration risk percentage | 10% | ||||||||
Accounts Receivable [Member] | Customer Two [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 10.20% | ||||||||
Accounts Receivable [Member] | Customer Three [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 11.70% | ||||||||
Accounts Receivable [Member] | Subcontractors One [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 24.20% | 54.30% | |||||||
Accounts Receivable [Member] | Subcontractors Two [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 16.20% | ||||||||
Subcontractors One [Member] | Supplier Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 33.40% | 49.90% | |||||||
Subcontractors Two [Member] | Supplier Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 18.80% | 26.10% | 18% | ||||||
Subcontractors Three [Member] | Supplier Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 10.30% | 17.60% | 16.60% | ||||||
Subcontracting costs [Member] | Supplier Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 10% | ||||||||
Accounts Receivable [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 10% | ||||||||
Accounts Receivable [Member] | Subcontractor Accounts [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 18.40% | ||||||||
Accounts Receivable [Member] | Subcontractors One [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 40.10% | ||||||||
Accounts Receivable [Member] | Subcontractors Two [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 39.60% | ||||||||
Accounts Receivable [Member] | Subcontractors Three [Member] | |||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Concentration risk percentage | 14.30% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements | 12 Months Ended |
Dec. 31, 2021 | |
MingZhu Investment Limited (“MingZhu BVI”) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | MingZhu Investment Limited (“MingZhu BVI”) |
Background | A British Virgin Islands company Incorporated on January 15, 2018 A holding company |
Ownership | 100% directly owned by MingZhu Cayman |
YGMZ (Hong Kong) Limited (“MingZhu HK”) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | YGMZ (Hong Kong) Limited (“MingZhu HK”) |
Background | A Hong Kong company Incorporated on February 2, 2018 A holding company |
Ownership | 100% directly owned by MingZhu BVI |
Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu” or “Mingzhu”) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | Shenzhen Yangang Mingzhu Freight Industry Co., Ltd (“MingZhu” or “Mingzhu”) |
Background | A PRC limited liability company Incorporated on July 10, 2002 Providing trucking services |
Ownership | 100% directly owned by MingZhu HK |
Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) [Memebr] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | Shenzhen Yangang Mingzhu Supply Chain Management Co., Ltd (“MingZhu Management”) |
Background | A PRC limited liability company Incorporated on September 5, 2018 Transportation and supply chain management services |
Ownership | 100% directly 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] | |
Name | Shenzhen Pengcheng Shengshi Logistics Co., Ltd (“MingZhu Pengcheng”) |
Background | A PRC limited liability company Incorporated on April 7, 2010 Providing trucking services |
Ownership | 100% directly owned by MingZhu |
Cheyi (BVI) Limited (“Cheyi BVI”) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | Cheyi (BVI) Limited (“Cheyi BVI”) |
Background | A British Virgin Islands company Incorporated on September 29, 2021 A holding company |
Ownership | 100% directly owned by MingZhu Cayman |
Cheyi (Hong Kong) Limited (“Cheyi HK”) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | Cheyi (Hong Kong) Limited (“Cheyi HK”) |
Background | A Hong Kong company Incorporated on October 22, 2021 A holding company |
Ownership | 100% directly owned by Cheyi BVI |
Ningbo Cheyi Corporate Information Consulting Co., Ltd. (“Ningbo Cheyi” or Cheyi WFOE) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | Ningbo Cheyi Corporate Information Consulting Co., Ltd. (“Ningbo Cheyi” or Cheyi WFOE) |
Background | A PRC limited liability company Incorporated on November 2, 2021 A holding company |
Ownership | 100% directly owned by Cheyi HK |
Zhejiang Cheyi Network Technology Co., Ltd. (“Cheyi Network”) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |
Name | Zhejiang Cheyi Network Technology Co., Ltd. (“Cheyi Network”) |
Background | A PRC limited liability company Incorporated on December 10, 2015 An integrated online car-hailing and driver management services company |
Ownership | 100% owned by Ningbo Cheyi via contractual arrangements |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets | 12 Months Ended | |
Dec. 31, 2021 | ||
Buildings and improvements [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 10 years | |
Computer and office equipment [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 3 years | |
Computer and office equipment [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Revenue equipment– trucking [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 5 years | [1] |
Revenue equipment – car rental [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | ||
Estimated Useful Life | 6 years | [2] |
[1] Revenue equipment – trucking are trucks and trailers only used for providing trucking services. Revenue equipment – car rental are passenger cars only used for providing car rental services. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 17,358,914 | $ 18,793,951 | $ 29,410,550 |
Guangdong province [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 14,662,029 | 13,522,929 | 15,209,518 |
Xinjiang province [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 2,696,885 | $ 5,271,022 | $ 14,201,032 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Jun. 11, 2011 | USD ($) | CNY (¥) |
Cash and Cash Equivalents [Abstract] | ||
Maturity date | Jun. 11, 2022 | Jun. 11, 2022 |
Deposit amount | $ 78,461 | ¥ 500,000 |
Annual interest rate | 1.95% | 1.95% |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details) - Schedule of cash and cash equivalents - Cash and Cash Equivalents [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Cash on hand | $ 51,053 | $ 24,545 |
Cash at bank | 5,622,603 | 2,081,080 |
Fixed deposits | 78,461 | |
Cash and cash equivalents | $ 5,752,117 | $ 2,105,625 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Percentage of accounts receivable | 83% |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Accounts Receivable Net Abstract | ||
Accounts receivable | $ 3,802,773 | $ 5,561,392 |
Allowance for doubtful accounts | (152,768) | (217,676) |
Total accounts receivable, net | $ 3,650,005 | $ 5,343,716 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of allowance for doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Allowance For Doubtful Accounts Abstract | |||
Beginning balance | $ 217,676 | $ 122,056 | $ 89,069 |
Provision | 140,204 | 82,647 | 34,356 |
Write off | (136,602) | ||
Exchange rate effect | (68,510) | 12,973 | (1,369) |
Ending balance | $ 152,768 | $ 217,676 | $ 122,056 |
Prepayments (Details) - Schedul
Prepayments (Details) - Schedule of prepayments - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Prepayments | ||
Prepayment - subcontracting | $ 4,420,242 | $ 416,442 |
Prepayment - fuel | 277,666 | 179,954 |
Prepayment - insurance | 102,188 | 92,089 |
Prepayment - parts and others | 183,999 | 370,850 |
Prepayment - salaries | 436,847 | |
Prepayment - legal | 52,996 | |
Total prepayments | $ 5,473,938 | $ 1,059,335 |
Other Receivables (reclassifi_3
Other Receivables (reclassification) (Details) | Dec. 31, 2021 USD ($) |
Other Receivables [Abstract] | |
Other receivables | $ 11,416,940 |
Other Receivables (reclassifi_4
Other Receivables (reclassification) (Details) - Schedule of other receivables - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Other receivables | |||
Other receivables, disposal of revenue equipment | $ 169,095 | $ 31,082 | |
Others | [1] | 67,614 | |
Vehicle rental in advance | 427,716 | ||
Pay on behalf of third parties | 875,619 | ||
Total other receivables | $ 1,540,044 | $ 31,082 | |
[1] A balance of $11,416,940 is reclassified from other receivables to loans receivable. |
Loans receivable (Details)
Loans receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Receivables [Abstract] | ||
Interest-free advances | $ 22,487,767 | $ 11,416,940 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Carrying value | $ 10,232,895 | $ 149,333 | |
Capital leases accumulated depreciation | 8,293,722 | 43,079 | |
Depreciation expenses | 1,438,310 | 1,521,234 | $ 1,365,945 |
Revenue equipment | 1,047,024 | 1,077,794 | |
Accumulated depreciation | 896,879 | 1,018,480 | |
Proceeds of resulting | 175,215 | 77,075 | |
Disposal gain | $ 25,070 | $ 17,761 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment net - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property and equipment | ||
Property and equipment gross | $ 27,722,796 | $ 9,698,046 |
Less: accumulated depreciation | (15,498,214) | (6,249,937) |
Property and equipment, net | 12,224,582 | 3,448,109 |
Buildings and improvements [Member] | ||
Property and equipment | ||
Property and equipment gross | 1,188,006 | 1,160,259 |
Computer and office equipment [Member] | ||
Property and equipment | ||
Property and equipment gross | 446,033 | 21,122 |
Revenue equipment – trucking [Member] | ||
Property and equipment | ||
Property and equipment gross | 16,107,826 | $ 8,516,665 |
Revenue equipment – car rental [Member] | ||
Property and equipment | ||
Property and equipment gross | $ 9,980,931 |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statistical Disclosure for Banks [Abstract] | ||
Deposits | $ 10,327,872 | $ 261,992 |
Goodwill (Details)
Goodwill (Details) | Dec. 31, 2021 USD ($) |
Goodwill [Abstract] | |
Goodwill | $ 20,152,890 |
Acquisition (Details)
Acquisition (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 12, 2021 | |
Acquisition (Details) [Line Items] | ||||
Equity interest percentage | 100% | |||
Equity ownership percentage | 100% | |||
Aggregate value | $ 29,466,032 | |||
AggregateShares (in Shares) | 3,189,000 | |||
Price per share (in Dollars per share) | $ 6 | |||
Earnout payment | $ 8,826,019 | |||
Net income | 3,000,000 | |||
Forecast [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Earnout payment | $ 5,884,013 | |||
Net income | $ 3,000,000 | |||
Cheyi BVI [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Aggregate value | $ 12,756,000 | |||
Price per share (in Dollars per share) | $ 4 | |||
Earnout payment | $ 2,000,000 | |||
Net income | ||||
Net sales |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of fair values of net assets acquired and liabilities assumed | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Recognized amounts of identifiable assets acquired and liabilities assumed | |
Accounts receivable, net | $ 216,572 |
Prepayments | 575,913 |
Others receivable | 4,761,164 |
Equipment, net | 9,980,931 |
Deferred tax assets | 10 |
Deposits | 595,149 |
Short-term bank borrowings | (1,647,679) |
Accounts payable | (803,784) |
Others payable and accrued liabilities | (1,631,610) |
Tax payable | (1,859,485) |
Capital lease and financing obligations | (2,351,104) |
Total identifiable net assets | 7,836,077 |
Add: Goodwill | 20,152,890 |
Total purchase price for acquisition net of $1,477,065 of cash | $ 27,988,967 |
Acquisition (Details) - Sched_2
Acquisition (Details) - Schedule of fair values of net assets acquired and liabilities assumed (Parentheticals) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Schedule Of Fair Values Of Net Assets Acquired And Liabilities Assumed Abstract | |
Acquisition net of cash | $ 1,477,065 |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - Schedule of other payables and accrued liabilities - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Other payables and accrued liabilities | ||
Rental deposits | $ 220,416 | $ 215,268 |
Salary payables | 157,970 | 127,610 |
Others | 44,053 | 110,540 |
Receipt in advance | 153,399 | 77,702 |
Payable under acquisition | 16,710,032 | |
Advance for operational purpose | 286,820 | |
Lending with no interests | 1,220,176 | |
Deposits for purchase of vehicles | 476,258 | |
Total other payables and accrued liabilities | $ 19,269,124 | $ 531,120 |
Credit Facilities (Details)
Credit Facilities (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Apr. 14, 2020 USD ($) | Sep. 09, 2019 | Apr. 30, 2021 USD ($) | Oct. 31, 2020 USD ($) | Apr. 30, 2020 | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Nov. 11, 2021 USD ($) | Nov. 11, 2021 CNY (¥) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 CNY (¥) | Apr. 30, 2021 CNY (¥) | Oct. 31, 2020 CNY (¥) | Apr. 14, 2020 CNY (¥) | Apr. 16, 2019 USD ($) | Apr. 16, 2019 CNY (¥) | Nov. 26, 2018 USD ($) | Nov. 26, 2018 CNY (¥) | |
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Line of credit borrowing capacity | $ 470,765 | ¥ 3,000,000 | ||||||||||||||||||
Interest expense short term borrowings | $ 326,363 | $ 194,486 | $ 127,314 | |||||||||||||||||
Interest expense debt | 14,184 | 52,521 | 70,692 | |||||||||||||||||
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 audited consolidated balance sheets. | |||||||||||||||||||
Property plant equipment carrying value | 12,224,582 | 3,448,109 | ||||||||||||||||||
Depreciation expenses | 1,438,310 | $ 1,519,415 | 1,365,945 | |||||||||||||||||
Loan term | 36 years | |||||||||||||||||||
Long-term loans from institutions | $ 235,487 | |||||||||||||||||||
Short-term loans from institutions | 144,126 | 136,400 | ||||||||||||||||||
Interest expense long-term debt | 47,229 | 85,930 | 28,478 | |||||||||||||||||
Loans [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Property plant equipment carrying value | 1,125,173 | $ 1,107,411 | ||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Contractual interest rate for funds borrowed, under the debt agreement. | 7.50% | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Contractual interest rate for funds borrowed, under the debt agreement. | 17% | |||||||||||||||||||
Several Revenue Equipment [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Property plant equipment carrying value | 79,903 | $ 159,007 | ||||||||||||||||||
Accumulated Depreciation | 1,045,270 | 948,404 | ||||||||||||||||||
Depreciation expenses | 74,185 | 101,741 | $ 126,595 | |||||||||||||||||
Hangzhou United Rural Commercial Bank Co., Ltd. [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Line of credit borrowing capacity | $ 863,070 | ¥ 5,500,000 | ||||||||||||||||||
Total withdraws | $ 784,609 | ¥ 5,000,000 | ||||||||||||||||||
Number of withdraws | 5 | 5 | ||||||||||||||||||
Zhejiang Tailong Commercial Bank Co., Ltd. [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Line of credit borrowing capacity | $ 470,765 | ¥ 3,000,000 | ||||||||||||||||||
Industrial Bank [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Line of credit borrowing capacity | $ 398,467 | ¥ 2,600,000 | $ 306,513 | ¥ 2,000,000 | ||||||||||||||||
Line of credit facility borrowing capacity, description | 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. 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 2,600,000 (approximately $398,467). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. In April 28, 2021, the Company entered into a one-year term loan agreement with Industrial Bank pursuant to which the Company is able to borrow RMB 3,000,000 (approximately $470,765). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. (4)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. The Company paid off the above loan by October 2021 followed by a new credit line withdrawal of RMB 15,000,000 (approximately $2,353,827). As of December 31, 2021, RMB 15,000,000 was not utilized by the Company. (5)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. In April 2021, 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 $3,923,046). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. (6)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). | |||||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||||||
China Everbright Bank [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
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. The Company paid off the above loan by October 2021 followed by a new credit line withdrawal of RMB 15,000,000 (approximately $2,353,827). As of December 31, 2021, RMB 15,000,000 was not utilized by the Company. | |||||||||||||||||||
Zhujiang Rural Bank [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Line of credit, description | 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. The Company paid off the above loan by October 2021 followed by a new credit line withdrawal of RMB 15,000,000 (approximately $2,353,827). As of December 31, 2021, RMB 15,000,000 was not utilized by the Company. (5)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. In April 2021, 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 $3,923,046). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. (6)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. | |||||||||||||||||||
Bank of Communication [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Line of credit borrowing capacity | $ 3,831,418 | ¥ 25,000,000 | ¥ 25,000,000 | |||||||||||||||||
Term of Line of credit | 1 year | |||||||||||||||||||
Line of credit borrowing capacity | $ 3,923,046 | |||||||||||||||||||
Chailease [Member] | ||||||||||||||||||||
Credit Facilities (Details) [Line Items] | ||||||||||||||||||||
Outstanding long-term debt | $ 144,126 | $ 371,887 |
Credit Facilities (Details) - S
Credit Facilities (Details) - Schedule of short-term bank borrowings - Short-term Debt [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Short-Term Debt [Line Items] | |||
Total | $ 7,579,324 | $ 6,551,724 | |
Hangzhou United Rural Commercial Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [1] | From November 11, 2021 to November 5, 2022 | |
Interest rate | [1] | 6.80% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Dongdong Wang and his Spouse | |
Total | [1] | $ 156,922 | |
Hangzhou United Rural Commercial Bank Co., Ltd. One [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [1] | From September 23, 2021 to September 22, 2022 | |
Interest rate | [1] | 5.80% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Dongdong Wang and his Spouse | |
Total | [1] | $ 78,461 | |
Hangzhou United Rural Commercial Bank Co., Ltd. Two [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [1] | From September 16, 2021 to September 15, 2022 | |
Interest rate | [1] | 5.80% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Dongdong Wang and his Spouse | |
Date of paid off | [1] | ||
Total | [1] | $ 78,461 | |
Hangzhou United Rural Commercial Bank Co., Ltd. Three [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [1] | From July 14, 2021 to January 13, 2022 | |
Interest rate | [1] | 5.50% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Dongdong Wang and his Spouse | |
Date of paid off | [1] | ||
Total | [1] | $ 78,461 | |
Hangzhou United Rural Commercial Bank Co., Ltd. Four [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [1] | From June 29, 2021 to January 13, 2022 | |
Interest rate | [1] | 5.50% | |
Collateral/ Guarantee | [1] | Guarantee by Mr. Dongdong Wang and his Spouse | |
Date of paid off | [1] | Jan. 13, 2022 | |
Total | [1] | $ 784,609 | |
Zhejiang Tailong Commercial Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [2] | From November 11, 2021 to November 19, 2022 | |
Interest rate | [2] | 6.80% | |
Collateral/ Guarantee | [2] | Guarantee by Mr. Dongdong Wang, Mr. Dongdong Wang’s Spouse and five employees | |
Date of paid off | [2] | ||
Total | [2] | $ 470,765 | |
Industrial Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [3] | From April 28, 2021 to May 7, 2022 | |
Interest rate | [3] | 5.70% | |
Collateral/ Guarantee | [3] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics. | |
Date of paid off | [3] | May 07, 2022 | |
Total | [3] | $ 376,612 | |
China Everbright Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [4] | From November 12, 2021 to November 20, 2022 | |
Interest rate | [4] | 6% | |
Collateral/ Guarantee | [4] | Pledge by properties owned by Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang | |
Date of paid off | [4] | ||
Total | [4] | $ 2,259,674 | |
Bank of Communications Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [5] | From April 29, 2021 to May 9, 2022 | |
Interest rate | [5] | 5.70% | |
Collateral/ Guarantee | [5] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics. | |
Date of paid off | [5] | May 09, 2022 | |
Total | [5] | $ 3,295,359 | |
The Industrial Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [3] | From April, 2020 to April, 2021 | |
Interest rate | [3] | 5.65% | |
Collateral/ Guarantee | [3] | Guarantee by Mr. Jinlong Yang and MingZhu Logistics. | |
Date of paid off | [3] | Apr. 20, 2021 | |
Total | [3] | 291,188 | |
Zhujiang Rural Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [6] | From April, 2020 to April, 2021 | |
Interest rate | [6] | 6.53% | |
Collateral/ Guarantee | [6] | 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 | [6] | ||
Total | [6] | 390,805 | |
China Everbright Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [4] | From October, 2020 to October, 2021 | |
Interest rate | [4] | 5.30% | |
Collateral/ Guarantee | [4] | 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 | [4] | Dec. 20, 2021 | |
Total | [4] | 2,114,943 | |
Bank of Communication [Member] | |||
Short-Term Debt [Line Items] | |||
Term | [5] | From November, 2020 to November, 2021 | |
Interest rate | [5] | 5.65% | |
Collateral/ Guarantee | [5] | Guarantee by Mr. Jinlong Yang, one of Mr. Jinlong Yang’s family member and a third party | |
Date of paid off | [5] | ||
Total | [5] | $ 3,754,788 | |
[1] In November 26, 2018, Cheyi Network entered into a revolving line of credit agreement with Hangzhou United Rural Commercial Bank Co., Ltd. pursuant to which Cheyi Network is able to borrow up to RMB5,500,000 (approximately $863,070). The line of credit agreement entitles Cheyi Network to enter into separate loan contracts under such line of credit. Cheyi Network utilized a total of RMB5,000,000 (approximately $784,609) during the year ended December 31, 2021 via five withdraws. 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. The Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements after the acquisition of Cheyi Network. In November 11, 2021, the Company entered into a one-year term loan agreement with Zhejiang Tailong Commercial Bank Co., Ltd. pursuant to which the Company is able to borrow RMB 3,000,000 (approximately $470,765). Company recorded this loan as short-term bank borrowings in its audited condensed consolidated financial statements. 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 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. The Company paid off the above loan by October 2021 followed by a new credit line withdrawal of RMB 15,000,000 (approximately $2,353,827). As of December 31, 2021, RMB 15,000,000 was not utilized by the Company. 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. In April 2021, the Company entered into a one 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 $424,622) in April 2020. For each withdraw from the line of credit, a separate loan agreement was entered into with a one-year term from the credit line withdraw date and the Company recorded these loans as short-term bank borrowings in its unaudited interim condensed consolidated financial statements. As of December 31, 2019 and 2020, the Company had utilized all line of credit. |
Credit Facilities (Details) -_2
Credit Facilities (Details) - Schedule of long-term bank borrowings - Long-term Debt [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Less: current maturities | $ (269,009) | |
Non-current maturities | $ 179,339 | |
Postal Savings Bank of China Co Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | From August 26, 2021 to August 26, 2023 | |
Debt instrument weighted average interest rate | 9% | |
Debt instrument, description | Guarantee by Mr. Jinlong Yang and MingZhu Logistics. | |
Debt instrument paid off | ||
Total | $ 448,348 |
Credit Facilities (Details) -_3
Credit Facilities (Details) - Schedule of loans from financial institutions - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Loans From Financial Institutions Abstract | ||
Less than 1 year | $ 269,009 | |
1-2 years | 179,339 | |
Total | $ 448,348 |
Credit Facilities (Details) -_4
Credit Facilities (Details) - Schedule of outstanding balances and maturities - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Payments due by period | ||
Less than 1 year | $ 144,126 | $ 235,487 |
1-2 years | 136,400 | |
Total | $ 144,126 | $ 371,887 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) | 12 Months Ended |
Dec. 31, 2021 CNY (¥) | |
Variable Interest Entity [Abstract] | |
Equity interest amount | ¥ 1 |
Variable Interest Entity (Det_2
Variable Interest Entity (Details) - Schedule of consolidated financial statements - Variable Interest Entity [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||
Total assets | $ 17,606,804 | |
Total liabilities | 8,293,662 | |
Revenue | ||
Net income | ||
Net cash flows from operating activities | ||
Net cash flows from investing activities | ||
Net cash flows from financing activities |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases (Details) [Line Items] | |||
Interest expenses for capital lease (in Dollars) | $ 8,411 | $ 41,110 | $ 144,198 |
Weighted average annual interest rate, percentage | 5.40% | ||
Lease term | 36 months | ||
Rental expenses (in Dollars) | $ 111,024 | $ 103,733 | $ 103,675 |
Minimum [Member] | |||
Leases (Details) [Line Items] | |||
Capital lease obligation percentage | 4% | 3.40% | 3.40% |
Maximum [Member] | |||
Leases (Details) [Line Items] | |||
Capital lease obligation percentage | 11.80% | 17% | 11.10% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of capital lease commitments for revenue equipment - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Capital Lease Commitments For Revenue Equipment Abstract | ||
Minimum lease payments, 2022 | $ 2,641,587 | $ 29,815 |
Present value of minimum lease payments, 2022 | 2,267,248 | 27,989 |
Minimum lease payments, 2023 | 136,063 | |
Present value of minimum lease payments, 2023 | 121,407 | |
Minimum lease payments, 2024 | 91,323 | |
Present value of minimum lease payments, 2024 | 79,305 | |
Minimum lease payments, Thereafter | ||
Present value of minimum lease payments, Thereafter | ||
Minimum lease payments, Total | 2,868,973 | 86,103 |
Present value of minimum lease payments, Total | 2,467,960 | 79,124 |
Minimum lease payments, Less: amount representing interest | (401,013) | (6,979) |
Present value of minimum lease payments, Less: amount representing interest | ||
Minimum lease payments, Present value of minimum lease payments | 2,467,960 | 79,124 |
Present value of minimum lease payments, Present value of minimum lease payments | 2,467,960 | 79,124 |
Present value of minimum lease payments, Less: current maturities | (2,267,248) | (51,135) |
Present value of minimum lease payments, Capital lease obligations, long-term | $ 200,712 | 27,989 |
Minimum lease payments, 2021 | 56,288 | |
Present value of minimum lease payments, 2021 | $ 51,135 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of revenue equipment under capital lease - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | |||
Capital lease carrying amount | $ 10,392,701 | $ 149,333 | |
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 | $ 124,293 | 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 | ||
ShanDong HOWO Auto Finance Co., Ltd. One [Member] | |||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | |||
Capital lease maturities term, description | From March 26, 2021 to March 26, 2024 | ||
Capital lease interest rate percentage | 4% | ||
Capital lease carrying amount | $ 287,477 | ||
Other institutions [Member] | |||
Leases (Details) - Schedule of revenue equipment under capital lease [Line Items] | |||
Capital lease maturities term, description | [1] | From January 7, 2019 to July 1, 2024 | |
Capital lease interest rate percentage | [1] | 5.40% | |
Capital lease carrying amount | [1] | $ 9,980,931 | |
[1] Other institutions represents institutions that extended lease financing to Cheyi Network with weighted average annual interest rate of 5.4% per annum and lease term of 36 months. |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of future minimum lease payments under the non-cancellable operating lease - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Future Minimum Lease Payments Under The Non Cancellable Operating Lease Abstract | ||
2022 | $ 112,387 | $ 109,762 |
2023 | 99,899 | 97,566 |
Future minimum operating lease payments | $ 212,286 | 674,535 |
2021 | $ 467,207 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - Schedule of due from related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | $ 705,280 | $ 741,340 |
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 | |
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 | $ 705,280 | $ 394,354 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of due to related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | $ 294,344 | $ 993,846 |
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 | $ 14,479 | 802,672 |
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 | $ 81,375 | 116,153 |
MingZhu Logistics [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Relationship | Mr. Jinlong Yang’s family member as sole shareholder | |
Nature | Lending with no interests | |
Due to related parties | $ 198,490 | |
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 operational purpose | |
Due to related parties | $ 75,021 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Aggregated Principal | $ 8,866,082 | $ 6,988,506 |
Carrying Amount | $ 8,027,672 | $ 6,551,724 |
Mr. Dongdong Wang and his Spouse [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Hangzhou United Rural Commercial Bank Co.,Ltd. | |
Term | From November 11, 2021 to November 5, 2022 | |
Aggregated Principal | $ 156,922 | |
Carrying Amount | $ 156,922 | |
Mr. Dongdong Wang and his Spouse One [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Hangzhou United Rural Commercial Bank Co.,Ltd. | |
Term | From September 23, 2021 to September 22, 2022 | |
Aggregated Principal | $ 78,461 | |
Carrying Amount | $ 78,461 | |
Mr. Dongdong Wang and his Spouse Two [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Hangzhou United Rural Commercial Bank Co.,Ltd. | |
Term | From September 16, 2021 to September 15, 2022 | |
Aggregated Principal | $ 78,461 | |
Carrying Amount | $ 78,461 | |
Mr. Dongdong Wang and his Spouse Three [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Hangzhou United Rural Commercial Bank Co.,Ltd. | |
Term | From July 14, 2021 to January 13, 2022 | |
Aggregated Principal | $ 78,461 | |
Carrying Amount | $ 78,461 | |
Mr. Dongdong Wang and his Spouse Four [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Hangzhou United Rural Commercial Bank Co.,Ltd. | |
Term | From June 29, 2021 to January 13, 2022 | |
Aggregated Principal | $ 784,609 | |
Carrying Amount | $ 784,609 | |
Mr. Dongdong Wang's Spouse and five employees [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Zhejiang Tailong Commercial Bank Co.,Ltd | |
Term | From November 11, 2021 to November 19, 2022 | |
Aggregated Principal | $ 470,765 | |
Carrying Amount | $ 470,765 | |
Mr. Jinlong Yang and Mingzhu Logistics [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Industrial Bank Co., Ltd. | |
Term | From April 28, 2021 to May 7, 2022 | |
Aggregated Principal | $ 470,765 | |
Carrying Amount | $ 376,612 | |
Mr. Jinlong Yang and properties owned by family members of Mr. Jinlong Yang [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | China Everbright Bank Co., Ltd. | |
Term | From November 12, 2021 to November 20, 2022 | |
Aggregated Principal | $ 2,353,827 | |
Carrying Amount | $ 2,259,674 | |
Mr. Jinlong Yang and Mingzhu Logistics One [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Bank of Communications Co., Ltd. | |
Term | From April 29, 2021 to May 9, 2022 | |
Aggregated Principal | $ 3,923,046 | |
Carrying Amount | $ 3,295,359 | |
Mr. Jinlong Yang and Mingzhu Logistics Two [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | WeBank Co., Ltd. | |
Term | From August 26, 2021 to August 26, 2023 | |
Aggregated Principal | $ 470,765 | |
Carrying Amount | $ 448,348 | |
Mr. Jinlong Yang and Mingzhu Logistics Three [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [Line Items] | ||
Institution Name | The Industrial Bank Co., Ltd. | |
Term | From April, 2020 to April, 2021 | |
Aggregated Principal | $ 398,467 | |
Carrying Amount | $ 291,188 | |
Mr. Jinlong Yang’s family member, pledge by Jinlong Yang and his private fixed deposits [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [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 [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties [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 collateral and guarantee made by related parties [Line Items] | ||
Institution Name | Bank of Communications | |
Term | From November, 2020 to November, 2021 | |
Aggregated Principal | $ 3,831,418 | |
Carrying Amount | $ 3,754,788 |
Related Party Balances and Tr_6
Related Party Balances and Transactions (Details) - Schedule of collateral and guarantee made by related parties (Parentheticals) $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Schedule Of Collateral And Guarantee Made By Related Parties Abstract | |
Private fixed deposits | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes (Details) [Line Items] | ||
Deferred tax assets | $ 35,491 | $ 129,467 |
Cumulative net operating loss | $ 587,000 | |
Income tax fees | 881,740 | |
Income tax fees | $ 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 and before April 2018. | |
Hong Kong [Member] | ||
Income Taxes (Details) [Line Items] | ||
Tax rate percentage | 16.50% | |
PRC [Member] | ||
Income Taxes (Details) [Line Items] | ||
Tax rate percentage | 25% | |
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 years ended December 31, 2021 and 2020, MingZhu Pengcheng was eligible to enjoy this policy. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of income tax expenses - Income Taxes[Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes (Details) - Schedule of components of income tax expenses [Line Items] | |||
Current income tax expense | $ 138,246 | $ 376,823 | $ 818,799 |
Deferred income tax (benefit) expense | (2,832) | (10,381) | 2,451 |
Total | $ 135,414 | $ 366,442 | $ 821,250 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 35,491 | $ 31,852 |
Contingent liabilities | ||
Net operating loss carryforwards: | ||
Deferred tax assets operating loss carryforwards | 198,820 | 138,698 |
Less valuation allowance | (163,329) | (106,846) |
Total deferred tax assets | 35,491 | 31,852 |
PRC [Member] | ||
Net operating loss carryforwards: | ||
Net operating loss carryforwards | 153,696 | 97,192 |
HONG KONG [Member] | ||
Net operating loss carryforwards: | ||
Net operating loss carryforwards | $ 9,633 | $ 9,654 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of reconciliation of effective income tax rate - Income Taxes[Member] | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Taxes (Details) - Schedule of reconciliation of effective income tax rate [Line Items] | ||||
PRC statutory tax rate | 25% | 25% | 25% | |
Effect of tax rate differential | (13.30%) | (5.20%) | (2.20%) | |
Valuation allowance deferred tax | (27.20%) | 4.90% | 2.20% | |
Non-deductible items | [1] | (1.40%) | 7.20% | 8.30% |
Effective tax rate | (16.90%) | 31.90% | 33.30% | |
[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. |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of taxes payable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Taxes Payable Abstract | ||
VAT taxes payable | $ 345,133 | $ 442,054 |
Income taxes payable | 2,761,201 | 2,272,072 |
Other taxes payable | 26,960 | 8,283 |
Total | $ 3,133,294 | $ 2,722,409 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||
Dec. 29, 2021 USD ($) $ / shares shares | Jun. 14, 2021 shares | Apr. 21, 2021 shares | Mar. 12, 2021 USD ($) $ / shares shares | Dec. 04, 2020 $ / shares shares | Oct. 30, 2020 $ / shares shares | Oct. 21, 2020 $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | May 21, 2020 shares | Feb. 12, 2020 $ / shares shares | Feb. 12, 2020 $ / shares shares | |
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares, authorized | shares | 50,000,000 | 50,000,000 | ||||||||||||
Ordinary shares par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Ordinary shares, issued | shares | 19,134,277 | 12,354,040 | ||||||||||||
Underwriting expenses | $ 2,457,357 | |||||||||||||
Net proceeds | 10,958,803 | |||||||||||||
Public offering | shares | 3,333,335 | |||||||||||||
Purchase of warrants | $ 0.75 | |||||||||||||
Price per share | $ / shares | $ 6 | |||||||||||||
Offering expenses payable | $ 18,000,000 | |||||||||||||
Warrant and purchased total of ordinary shares | shares | 43,616 | 214,286 | ||||||||||||
Equity interest percentage | 100% | |||||||||||||
Equity ownership percentage | 100% | |||||||||||||
Aggregate value | $ 29,466,032 | |||||||||||||
Aggregate shares | shares | 3,189,000 | |||||||||||||
Earnout payment | 8,826,019 | |||||||||||||
Net income | 3,000,000 | |||||||||||||
Unpaid capital contribution | $ 847,086 | $ 847,086 | ||||||||||||
After tax percentage | 10% | |||||||||||||
Register capital percentage | 50% | |||||||||||||
Statutory reserves amount | $ 916,148 | 877,886 | ||||||||||||
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 | ||||||||||||||
Ordinary Shares [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares par value | (per share) | $ 0.001 | $ 0.01 | ||||||||||||
Minimum [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares, authorized | shares | 38,000,000 | 38,000,000 | ||||||||||||
Ordinary shares, issued | shares | 9,000,000 | 1,000 | 1,000 | |||||||||||
Maximum [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares, authorized | shares | 50,000,000 | 50,000,000 | ||||||||||||
Ordinary shares, issued | shares | 9,250,000 | 9,250,000 | 9,250,000 | |||||||||||
IPO [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Purchase of shares | shares | 3,000,000 | |||||||||||||
Price per share | $ / shares | $ 4 | |||||||||||||
Gross proceed | $ 13,416,160 | |||||||||||||
Over-Allotment Option [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Price per share | $ / shares | $ 4 | $ 4 | ||||||||||||
Purchase of addtional units | shares | 4,040 | 350,000 | ||||||||||||
Forecast [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Earnout payment | $ 5,884,013 | |||||||||||||
Net income | $ 3,000,000 | |||||||||||||
Cheyi BVI [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Price per share | $ / shares | $ 4 | |||||||||||||
Aggregate value | $ 12,756,000 | |||||||||||||
Earnout payment | $ 2,000,000 | |||||||||||||
MingZhu Cayman [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares, authorized | shares | 38,000,000 | |||||||||||||
Ordinary shares par value | (per share) | $ 0.001 | $ 0.01 | ||||||||||||
Board of Director [Member] | ||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares par value | (per share) | $ 0.001 | $ 0.01 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | |
Jan. 20, 2020 | Nov. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Capital lease | $ 2,531,453 | |
Contingencies, description | the Civil Complaint to The People’s Court of Yantian District, requesting the defendant Jian Yang to compensate for the economic loss of RMB 233,055, judgment of the defendant Yangang Pearl for Jian Yang’s compensation liability to assume joint liability. According to the civil order issued by The People’s Court of Yantian District on January 27, 2022, the applicant Shenzhen Xincang Freight Co., Ltd. applies for property preservation in the case of the liability dispute between the applicant Shenzhen Xincang Freight Co., Ltd. of seizing and freezing the property worth RMB 234,990.12 under the name of the respondent Mingzhu. According to the notice of response issued by The People’s Court of Yantian District, on February 10, 2022, the case of the liability dispute between the plaintiff and the defendant Mingzhu and Jian Yang was filed by the Court on January 21, 2022. |
Segment information (Details)
Segment information (Details) | Dec. 31, 2021 |
Segment Reporting [Abstract] | |
Number of segment | 2 |
Segment information (Details) -
Segment information (Details) - Schedule of segment information - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Total assets | ||
Total assets | $ 94,574,568 | $ 37,388,100 |
Total Property and equipment, net | ||
Total Property and equipment, net | 12,224,582 | 3,448,109 |
Trucking Services [Member] | ||
Total assets | ||
Total assets | 76,967,764 | 37,388,100 |
Total Property and equipment, net | ||
Total Property and equipment, net | 2,243,651 | $ 3,448,109 |
Car Rental Services [Memebr] | ||
Total assets | ||
Total assets | 17,606,804 | |
Total Property and equipment, net | ||
Total Property and equipment, net | $ 9,980,931 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | ||
Mar. 18, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Events (Details) [Line Items] | |||
Subsequent event, description | Under terms of the share purchase agreement, we shall pay $18,302,500 in exchange for 100% equity of Yinhua. Of the total consideration to be paid, $15,304,000 shall be paid in form of 3,826,000 newly issued ordinary shares of the Company, representing $4.00 per ordinary share of the Company, and $1,000,000 upon closing. | ||
Cash earnout | $ 1,998,500 | ||
Ordinary shares outstanding (in Shares) | 22,960,277 | ||
Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Net income | $ 1,300,000 | ||
Shares outstanding percentage | 100% | ||
Ordinary shares issued (in Shares) | 3,826,000 | ||
Amount paid to sellers | $ 1,000,000 |
Subsequent Events (Details) - S
Subsequent Events (Details) - Schedule of allocation of estimated fair values of net assets acquired and liabilities - Business Combinations [Member] | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Recognized amounts of identifiable assets acquired and liabilities assumed | |
Accounts receivable, net | $ 4,519,839 |
Prepayments | 8,050,558 |
Equipment, net | 3,504 |
Deferred tax assets | 16,415 |
Short-term bank borrowings | (193,339) |
Others payable and accrued liabilities | (7,685,086) |
Tax payable | (1,126,777) |
Total identifiable net assets | 3,585,114 |
Goodwill | 13,590,609 |
Total purchase price for acquisition net of $1,126,777 of cash | $ 17,175,723 |
Subsequent Events (Details) -_2
Subsequent Events (Details) - Schedule of allocation of estimated fair values of net assets acquired and liabilities (Parentheticals) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Combinations [Member] | |
Subsequent Events (Details) - Schedule of allocation of estimated fair values of net assets acquired and liabilities (Parentheticals) [Line Items] | |
Acquisition net of cash | $ 1,126,777 |
Additional information (unaud_3
Additional information (unaudited) (Details) - 12 months ended Dec. 31, 2021 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Quarterly Financial Information Disclosure [Abstract] | ||
Revenue | $ 79 | ¥ 511 |
Net income | $ 3 | ¥ 19 |
Additional information (unaud_4
Additional information (unaudited) (Details) - Schedule of condensed combined statements of income and comprehensive income | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
The Company [Member] | |
Condensed Income Statements, Captions [Line Items] | |
REVENUES | $ 17,358,914 |
COSTS AND EXPENSES | |
Cost of sales | 15,428,131 |
General and administrative expenses | 2,050,954 |
Sales and marketing expenses | 367,633 |
Total costs and expenses | 17,846,718 |
(LOSS) INCOME FROM OPERATIONS | (487,804) |
OTHER (EXPENSES) INCOME | |
Interest expenses | (396,188) |
Other expenses | (360,032) |
Other income | 441,025 |
Total other expenses, net | (315,195) |
(LOSS) INCOME BEFORE INCOME TAXES | (802,999) |
PROVISION FOR INCOME TAXES | 135,414 |
NET (LOSS) INCOME | (938,413) |
OTHER COMPREHENSIVE (LOSS) INCOME | |
Foreign currency translation adjustment | (640,974) |
COMPREHENSIVE (LOSS) INCOME | $ (1,579,387) |
Basic (in Shares) | shares | 19,035,038 |
Diluted (in Dollars per share) | $ / shares | $ 15,237,432 |
EARNINGS PER SHARE - BASIC (in Shares) | shares | (0.05) |
EARNINGS PER SHARE - DILUTED (in Dollars per share) | $ / shares | $ (0.06) |
Cheyi BVI [Member] | |
Condensed Income Statements, Captions [Line Items] | |
REVENUES | $ 79,321,839 |
COSTS AND EXPENSES | |
Cost of sales | 72,395,079 |
General and administrative expenses | 1,750,863 |
Sales and marketing expenses | 436,805 |
Total costs and expenses | 74,582,747 |
(LOSS) INCOME FROM OPERATIONS | 4,739,092 |
OTHER (EXPENSES) INCOME | |
Interest expenses | (895,655) |
Other expenses | (599) |
Other income | |
Total other expenses, net | (896,254) |
(LOSS) INCOME BEFORE INCOME TAXES | 3,842,838 |
PROVISION FOR INCOME TAXES | 842,756 |
NET (LOSS) INCOME | 3,000,082 |
OTHER COMPREHENSIVE (LOSS) INCOME | |
Foreign currency translation adjustment | (444,772) |
COMPREHENSIVE (LOSS) INCOME | $ 2,555,310 |
Basic (in Shares) | shares | 1 |
Diluted (in Dollars per share) | $ / shares | $ 1 |
EARNINGS PER SHARE - BASIC (in Shares) | shares | |
EARNINGS PER SHARE - DILUTED (in Dollars per share) | $ / shares | |
Adjustments [Member] | |
Condensed Income Statements, Captions [Line Items] | |
REVENUES | |
COSTS AND EXPENSES | |
Cost of sales | |
General and administrative expenses | |
Sales and marketing expenses | |
Total costs and expenses | |
(LOSS) INCOME FROM OPERATIONS | |
OTHER (EXPENSES) INCOME | |
Interest expenses | |
Other expenses | |
Other income | |
Total other expenses, net | |
(LOSS) INCOME BEFORE INCOME TAXES | |
PROVISION FOR INCOME TAXES | |
NET (LOSS) INCOME | |
OTHER COMPREHENSIVE (LOSS) INCOME | |
Foreign currency translation adjustment | |
COMPREHENSIVE (LOSS) INCOME | |
Basic (in Shares) | shares | (1) |
Diluted (in Dollars per share) | $ / shares | $ (1) |
EARNINGS PER SHARE - BASIC (in Shares) | shares | |
EARNINGS PER SHARE - DILUTED (in Dollars per share) | $ / shares | |
Combined [Member] | |
Condensed Income Statements, Captions [Line Items] | |
REVENUES | $ 96,680,753 |
COSTS AND EXPENSES | |
Cost of sales | 87,823,210 |
General and administrative expenses | 3,801,817 |
Sales and marketing expenses | 804,438 |
Total costs and expenses | 92,429,465 |
(LOSS) INCOME FROM OPERATIONS | 4,251,288 |
OTHER (EXPENSES) INCOME | |
Interest expenses | (1,291,843) |
Other expenses | (360,631) |
Other income | 441,025 |
Total other expenses, net | (1,211,449) |
(LOSS) INCOME BEFORE INCOME TAXES | 3,039,839 |
PROVISION FOR INCOME TAXES | 978,170 |
NET (LOSS) INCOME | 2,061,669 |
OTHER COMPREHENSIVE (LOSS) INCOME | |
Foreign currency translation adjustment | (1,085,746) |
COMPREHENSIVE (LOSS) INCOME | $ 975,923 |
Basic (in Shares) | shares | 19,035,038 |
Diluted (in Dollars per share) | $ / shares | $ 15,237,432 |
EARNINGS PER SHARE - BASIC (in Shares) | shares | 0.11 |
EARNINGS PER SHARE - DILUTED (in Dollars per share) | $ / shares | $ 0.14 |
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, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS: | |||
Cash | $ 3,079,046 | $ 16,876 | |
Prepayments | 4,701,968 | 303,102 | |
Amount due from related parties | 14,083,531 | 4,611,848 | |
Total current assets | 21,864,545 | 4,931,826 | |
NON-CURRENT ASSET | |||
Investment in subsidiaries and VIEs | 25,804,389 | 16,342,464 | |
Total assets | 47,668,934 | 21,274,290 | |
LIABILITIES | |||
Ordinary shares: $0.001 par value, 50,000,000 shares authorized, 19,134,277 and 12,354,040 shares issued and outstanding as of December 31, 2021 and 2020, respectively | [1] | 19,134 | 12,354 |
Share subscription receivables | (847,086) | (847,086) | |
Additional paid-in capital | 41,792,071 | 13,824,820 | |
Statutory reserves | 916,148 | 877,886 | |
Retained earnings | 5,929,043 | 6,905,718 | |
Accumulated other comprehensive (loss) income | (140,376) | 500,598 | |
Total shareholders’ equity | 47,668,934 | 21,274,290 | |
Total liabilities and shareholders’ equity | $ 47,668,934 | $ 21,274,290 | |
[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, 2021 | Dec. 31, 2020 |
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 | 19,134,277 | 12,354,040 |
Ordinary shares outstanding | 19,134,277 | 12,354,040 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Unaudited) (Details) - Schedule of parent company statement of (loss) income and comprehensive (loss) income - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
(LOSS) INCOME OF SUBSIDIARIES | $ (490,484) | $ 950,045 | $ 2,020,552 |
COSTS AND EXPENSES | |||
General and Administrative expenses | 447,929 | 167,749 | 377,758 |
Total costs and expenses | 447,929 | 167,749 | 377,758 |
(LOSS) INCOME FROM OPERATION | (938,413) | 782,296 | 1,642,794 |
(LOSS) INCOME BEFORE INCOME TAXES | (938,413) | 782,296 | 1,642,794 |
PROVISION FOR INCOME TAXES | |||
NET (LOSS) INCOME | (938,413) | 782,296 | 1,642,794 |
OTHER COMPREHENSIVE (LOSS) INCOME | |||
Foreign currency translation adjustment | (640,974) | 752,828 | (121,195) |
COMPREHENSIVE (LOSS) INCOME | $ (1,579,387) | $ 1,535,124 | $ 1,521,599 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (938,413) | $ 782,296 | $ 1,642,794 |
Adjustments to reconcile net income to cash used in operating activities: | |||
Equity income of subsidiaries | 490,484 | (950,045) | (2,020,552) |
Prepayments | (4,400,661) | 291,484 | |
Net cash (used in) operating activities | (4,848,590) | (167,749) | (86,274) |
Cash flows from financing activities: | |||
Amounts advanced from related parties | (10,556,693) | 166,872 | (19,145) |
Proceeds from private placement | 18,465,009 | ||
Net cash provided by (used in) financing activities | 7,908,316 | 166,872 | (19,145) |
Effect of exchange rate change on cash | 2,444 | 82 | 30 |
Net increase (decrease) in cash | 3,062,170 | (795) | (105,389) |
Cash at beginning of the year | 16,876 | 17,671 | 123,060 |
Cash at end of the year | $ 3,079,046 | $ 16,876 | $ 17,671 |