MingZhu Logistics Holdings Ltd. acquires Feipeng for approximately $15 million USD

MingZhu announced that it entered into a Share Purchase Agreement (SPA) with Feipeng Global Limited (“Feipeng”). Feipeng is a services provider of slack coal transportation that operates in Xinjiang, China, and is crucial for the “first and last mile” road-railway intermodal system in the region.

MingZhu is a 4A-Grade trucking service provider with more than 1500 trucks in 29 regions throughout China. The acquisition will help the company expand into intermodal shipping which will allow for easy road-to-rail transportation. Intermodal transportation systems are often more cost and fuel-efficient, as well as reliable and sustainable.

The SPA dictates that MingZhu acquired 100% of Feipeng for approximately $15 million USD. $10 million of that amount will be paid in cash, while Feipeng will receive the remaining amount in shares valued at approximately $5 million. The deal is expected to immediately increase MingZhu’s revenue, gross margin and net income.

Feipeng’s location in Xinjiang is strategically important to MingZhu for manufacturing and commerce. MingZhu currently operates in 29 regions in China and this acquisition will be advantageous to the company’s growth.

Jinlong Yang, Chairman and Chief Executive Officer of MingZhu Logistics Holdings Limited, commented, "This is a material transaction for us, which gives us higher confidence in our growth prospects over the coming year. We are excited to have the Feipeng team join the Mingzhu family. There are immediate synergies between our two companies and the financial terms were compelling. Feipeng is known as a market leader in large cargo transportation networks. Our mutual focus on increased sustainability and efficiency for the logistics supply chain are directly aligned as we will now work together to execute Mingzhu's Scale strategy. We were impressed with the Feipeng team and look forward to working more closely together as part of our commitment to continued innovation. Our priority is to create a faster, even more efficient, intermodal transportation system to better serve key commerce centers, like Xinjiang. This will allow us to better facilitate bulk transfer by road to rail, as well as to ship coal by containers to improve the transport capacity."