Breaking Down MingZhu Logistics Holdings Limited (YGMZ) Financial Health: Key Insights for Investors

You're defintely looking at MingZhu Logistics Holdings Limited (YGMZ) because the stock is trading around $1.03 as of November 2025, down a staggering -94.35% over the last 52 weeks, and you want to know if this is a deep value play or a value trap. Honestly, the financials show a company under extreme duress; the most recent full fiscal year (FY 2024) reported revenue of only $40.43 million and a net loss of $-6.19 million, which is a tough baseline for a firm with a tiny $4.94 million market capitalization. The near-term risks are flashing red, especially since the company just executed a 1-for-16 reverse stock split on November 12, 2025, to stay compliant with Nasdaq, and its Altman Z-Score-a classic measure of bankruptcy risk-sits at a critically low 0.42. This is not a situation for the faint of heart. We need to look past the low price and dissect whether their recent pivot attempts can generate the cash flow needed to survive, or if this is simply a slow-motion liquidation.

Revenue Analysis

You need to look past the top-line number for MingZhu Logistics Holdings Limited (YGMZ) because the latest annual figure, while substantial, masks a significant contraction and a major shift in business focus. The company's last reported fiscal year (FY 2024) saw total revenue land at $40.43 million, but the real story is the dramatic year-over-year drop and the nascent diversification into a completely different market.

Honestly, the immediate near-term trend is a tough one. The company's revenue for FY 2024 declined by a massive 54.57% compared to the previous year. That kind of drop in a core business-trucking services-is a flashing red light, reflecting the challenging economic and regulatory environment in China. Still, the three-year revenue Compound Annual Growth Rate (CAGR) was better at 32%, showing that the recent decline followed a period of strong, albeit volatile, growth.

Breakdown of Primary Revenue Sources

MingZhu Logistics Holdings Limited operates across three main segments, though one is clearly dominant. The core business remains its traditional logistics operations in the People's Republic of China. Here's the quick math on how the $40.43 million FY 2024 revenue breaks down:

The Trucking Services segment, which involves providing transportation to large logistics companies and freight forwarders, is the primary revenue engine, contributing nearly three-quarters of the total. The Car Owner Services segment, which likely involves fleet management or financing services for truck owners, provides the bulk of the remainder. That's a defintely concentrated risk profile.

Segment Changes and New Opportunities

The most significant change in the revenue structure is the deliberate expansion into Liquor Distribution Services. While it only contributed a negligible 0.31% (about $126,110) to the FY 2024 top line, this is a strategic move to diversify away from the highly competitive and volatile trucking industry. The company is leveraging its existing logistics infrastructure to move into premium liquor distribution, a non-core business that could become a key growth driver if executed well.

You should view this new segment as a high-risk, high-reward play. It's an attempt to offset the decline in the core logistics business, but it's still too small to move the needle right now. For a deeper dive into who is betting on this pivot, you should read Exploring MingZhu Logistics Holdings Limited (YGMZ) Investor Profile: Who's Buying and Why?

The key action here is monitoring the quarterly reports in 2025. Look for the Liquor Distribution segment's percentage contribution to climb significantly, plus look for stabilization in the core Trucking Services revenue. If the core business continues to spiral while the new segment fails to scale, the financial pressure-already evident in the Nasdaq delisting notice received in late 2025-will intensify.

Profitability Metrics

You need to know if MingZhu Logistics Holdings Limited (YGMZ) can actually turn its revenue into profit, especially given the tight margins in the logistics world. The direct takeaway is this: YGMZ's profitability metrics for the trailing twelve months (TTM) ending December 2024 are extremely weak, showing a significant bottom-line loss driven by a razor-thin gross margin and high operating costs.

For the fiscal year 2024, MingZhu Logistics Holdings Limited reported total revenue of $40.43 million, but its gross profit was only $0.79 million (or $793K). Here's the quick math: this translates to a Gross Profit Margin of just 1.96%. This is your first major red flag. A gross margin this low means the cost of providing the service (Cost of Revenue) consumes nearly all the sales dollars, leaving almost nothing to cover overhead.

The situation worsens as we move down the income statement. The Operating Income for FY 2024 was a loss of -$4.03 million, resulting in a negative Operating Margin of -9.98%. This indicates that the company's core business operations-even before accounting for interest and taxes-are losing money. Finally, the Net Income for the TTM period was a loss of -$6.19 million, pushing the Net Income Margin to -15.30%.

Operational Efficiency and Industry Comparison

The low 1.96% Gross Profit Margin points directly to poor operational efficiency and severe cost management issues. For context, the broader logistics industry typically sees Gross Margins ranging from 20%-40%, with the Integrated Freight & Logistics sector holding an average Gross Profit Margin of 31.4% as of November 2025. YGMZ is nowhere near this benchmark. That's a massive gap.

When you compare the Net Income Margin of -15.30% to the industry average of roughly 1.5% for Integrated Freight & Logistics, you see the full extent of the underperformance. Even the highly competitive and cost-pressured US truckload sector reported an average operating margin of -2.3% in the 2025 ATRI report, which is still significantly better than YGMZ's -9.98% Operating Margin.

The trend over time shows significant volatility and a recent sharp decline into unprofitability. For example, the Net Income swung from a loss of -$9.58 million in FY 2023 to a loss of -$6.19 million in FY 2024, and Revenue dropped by -54.57% year-over-year in FY 2024. This suggests the company is struggling to manage its fixed costs in the face of rapidly declining sales.

• Gross Margin: 1.96% vs. Industry 31.4%.
• Operating Margin: -9.98% vs. Truckload Average -2.3%.
• Net Margin: -15.30% vs. Industry 1.5%.

Here is a snapshot of the latest available profitability metrics:

The core issue is that MingZhu Logistics Holdings Limited's cost of goods sold is too high, and its selling, general, and administrative (SG&A) expenses, at $4.83 million in FY 2024, are disproportionately large compared to the meager gross profit. This is defintely a structural problem, not just a cyclical one. For a deeper look at who is still investing in this structure, check out Exploring MingZhu Logistics Holdings Limited (YGMZ) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

When you look at MingZhu Logistics Holdings Limited (YGMZ), the first thing that jumps out is its incredibly conservative approach to financial leverage, which is the use of borrowed money (debt) to finance assets. The company is defintely leaning on equity-shareholder funds-far more than debt to fuel its operations.

As of the most recent quarter in 2025, MingZhu Logistics Holdings Limited's total debt stands at approximately $9.78 million. This is a low number for a logistics company, and the breakdown shows a significant reliance on short-term obligations, not long-term borrowing, which can be a double-edged sword for liquidity.

Here's the quick math on the debt structure:

• Total Debt (MRQ 2025): $9.78 million
• Long-Term Debt (FY 2024-end): $0.59 million
• Approximate Short-Term Debt: $9.19 million

The core takeaway is that MingZhu Logistics Holdings Limited has a very low Debt-to-Equity (D/E) ratio, signaling low financial risk from leverage. The company's D/E ratio is around 0.22 (or 22%) for the most recent period. This means for every dollar of shareholder equity, the company has only about 22 cents in total debt. That's a very low leverage profile.

To be fair, the logistics and transportation sector is capital-intensive, so the industry median D/E ratio is much higher, sitting around 2.23 (or 223%) in 2024. MingZhu Logistics Holdings Limited's ratio is a fraction of that, which suggests they have substantial capacity to take on more debt if they found a compelling, high-return project. But this low leverage also means they aren't using the potential tax benefits of debt, which is a common strategy in this industry.

In terms of recent capital activity, the focus for MingZhu Logistics Holdings Limited in 2025 has been less on debt issuance and more on navigating equity-related compliance. There has been no major debt issuance or credit rating news, but the company did announce a 1-for-16 reverse share split and worked to regain compliance with the Nasdaq minimum bid price rule in May 2025. This indicates that managing the equity side of the balance sheet-specifically stock price and listing requirements-has been the primary capital structure concern, not debt refinancing or new borrowing.

The balance of funding is clearly tilted toward equity, which provides stability but may limit the scale of growth. You can see this preference for equity financing in the simple breakdown below:

This conservative structure is a strength from a risk perspective, but it forces us to ask: why is the company not using more debt to accelerate growth? The answer likely lies in their strategic acquisitions and the need to maintain flexibility, which you can read more about in Exploring MingZhu Logistics Holdings Limited (YGMZ) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need a clear picture of whether MingZhu Logistics Holdings Limited (YGMZ) can cover its short-term bills, and honestly, the data suggests you should proceed with caution. The company's liquidity position, which is its ability to meet near-term obligations, is razor-thin, and the cash flow trends show a persistent drain on capital.

Analyzing the company's latest metrics, the Current Ratio is sitting right at 1.00 as of the latest reporting period. This ratio compares current assets to current liabilities (what's due in the next year), and a 1.00 means current assets barely equal current liabilities. That leaves no margin for error. A healthy logistics business should defintely aim for a ratio of 1.5 or higher to handle unexpected operational bumps.

The Quick Ratio (or acid-test ratio), which strips out less-liquid assets like inventory, is even more telling at a low 0.08 (Trailing Twelve Months or TTM). This means that for every dollar of immediate liability, MingZhu Logistics Holdings Limited only has 8 cents in highly liquid assets (like cash or marketable securities) to pay it. That's a serious red flag for immediate financial flexibility. Here's the quick math: with a Current Ratio of 1.00, the working capital (Current Assets minus Current Liabilities) is effectively near $0, indicating a hand-to-mouth operation where cash is constantly tied up or immediately spent.

• Current Ratio (Latest): 1.00
• Quick Ratio (Latest): 0.08
• Working Capital: Near $0 (No liquidity cushion)

When we look at the Cash Flow Statement, the operational reality becomes clear. For the Trailing Twelve Months, the Cash Flow from Operations is a negative -$2.59 million. This is the core of the problem; the main business activity is burning cash, not generating it. Plus, the Cash Flow from Investing shows a modest outflow of approximately -$103,972 in capital expenditures (CapEx) over the TTM, which is a small investment for a logistics firm and suggests underinvestment in the fleet or infrastructure.

The combination of these flows results in a negative Free Cash Flow of -$2.70 million over the TTM. A company with a market capitalization of just $4.94 million (as of November 21, 2025) cannot sustain a multi-million-dollar cash burn for long without external intervention. This cash shortfall must be covered by Financing Cash Flow, which is why the company's recent activities, including the 1-for-16 reverse share split in November 2025, are critical. This split was explicitly done to regain compliance with the Nasdaq minimum bid price rule, a direct consequence of the underlying financial distress and low market confidence.

What this estimate hides is the potential for a sudden call on liabilities. Given the very low Quick Ratio, any unexpected delay in accounts receivable collection or a sudden need to pay down debt could trigger a major liquidity crisis. For a deeper dive into the company's strategic position, you can review the full analysis at Breaking Down MingZhu Logistics Holdings Limited (YGMZ) Financial Health: Key Insights for Investors.

Here is a summary of the critical cash flow metrics:

Valuation Analysis

You're looking at MingZhu Logistics Holdings Limited (YGMZ) to see if its price is justified, and the quick answer is that traditional metrics paint a picture of significant risk, suggesting the stock is likely Overvalued by Wall Street consensus, despite its low absolute share price.

The company's valuation ratios are heavily skewed by its unprofitability, so you need to look past the simple numbers and understand the underlying losses. For instance, the Price-to-Earnings (P/E) ratio is negative-around -0.8x-because the company reported a net loss of $-6.19 million for the 2024 fiscal year. This negative P/E is a red flag, telling you that investors are buying a piece of a company that is currently losing money.

Here's the quick math on the key valuation multiples based on recent TTM (Trailing Twelve Months) data near November 2025:

• Price-to-Earnings (P/E): Approximately -0.8x. A negative value indicates net losses, making a P/E comparison meaningless for a profitable peer group.
• Price-to-Book (P/B): Around 0.02. This extremely low number suggests the stock is trading far below its book value (shareholders' equity), which can signal deep undervaluation or, more likely in this context, serious investor skepticism about the quality of the company's assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): Ratios are inconsistent, with some TTM figures showing a negative value, such as -4.9x, which again points to negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This confirms the operational struggles.

You can't just buy a stock because the P/B is low; you have to ask why it's so low. Exploring MingZhu Logistics Holdings Limited (YGMZ) Investor Profile: Who's Buying and Why?

Near-Term Stock Performance and Analyst View

The stock price trend over the last 12 months is defintely concerning. As of November 2025, the stock is trading around $1.03, but its 52-week range stretched from a low of $0.9276 to a high of $24.6400. That's a massive drop, representing a decline of about -94.35% over the last 52 weeks. This volatility and sharp decline reflect significant market pressure and uncertainty, including a 1-for-16 reverse stock split announced in November 2025 to maintain Nasdaq compliance.

When it comes to income, MingZhu Logistics Holdings Limited does not currently pay a dividend, so both the dividend yield and payout ratios are 0.00%. This is standard for a growth-focused or, in this case, a struggling company prioritizing capital preservation over shareholder distributions.

Finally, the analyst consensus is clear: the stock is rated a Sell, with an average rating score of 1.00 based on limited research coverage. This aligns with the technical indicators, which also signal a Strong Sell. The message is unified: the market sees this as an overvalued risk, despite the low share price. Your next step should be to dig into the balance sheet to see how much runway they have left to turn things around.

Risk Factors

You need to know the primary risk for MingZhu Logistics Holdings Limited (YGMZ) right now is a major regulatory hurdle: the potential delisting from the Nasdaq Stock Market. This isn't a small operational hiccup; it's an existential threat to the stock's liquidity and visibility.

The company received a delisting notice on October 20, 2025, because its bid price closed below $1.00 for 30 consecutive business days, violating Listing Rule 5550(a)(2). This is the second such notice in 2025, following one in February. Critically, YGMZ is not eligible for the standard 180-day grace period because a Discretionary Panel Monitor was imposed back in May 2025. They've announced a 1-for-16 reverse share split on November 7, 2025, as a mitigation strategy, but this is a high-risk move that often signals deep underlying problems and can further erode investor confidence.

Operational and Financial Headwinds

The regulatory pressure maps directly back to weak financial performance. The company's logistics core has struggled, which is a major internal risk. In the first half of 2024, revenue plummeted by 59.2%, falling to $22.9 million from $56.1 million in the same period the year prior. Here's the quick math: that massive revenue drop amplified the net loss to $9.8 million, a significant widening from the $0.9 million net loss in H1 2023.

Liquidity is also a major concern. As of June 30, 2024, the company held only $1.3 million in cash and cash equivalents, a $4.0 million decrease. Plus, the Altman Z-Score, a measure of bankruptcy risk, sits at a concerning 0.42, which is well below the 3.0 threshold suggesting increased risk. You can't ignore a metric like that.

Strategic and External Risks

The company is trying to pivot by expanding into new, non-logistics segments like premium liquor distribution and cross-border e-commerce, but this introduces new strategic risks. Any new acquisition, like the potential one mentioned in recent filings, brings substantial risks, including integration failure and unexpected liabilities.

You also have to factor in the external environment. As a China-based trucking service, YGMZ is highly exposed to the following external risks:

• Fluctuations in China's macroeconomic conditions.
• Intense industry competition and bidding pressure.
• Changes in relevant government policies and regulations.

The diversification into liquor and cross-border logistics is an attempt to mitigate the core trucking business decline, but it's defintely too early to tell if these new ventures will successfully offset the losses. If you want to dive deeper into who is currently holding the stock despite these risks, you should check out Exploring MingZhu Logistics Holdings Limited (YGMZ) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear path forward on MingZhu Logistics Holdings Limited (YGMZ), and the reality is that the near-term picture is highly volatile, but the company is defintely laying the groundwork for international expansion in 2025. While a consensus analyst forecast for the full fiscal year 2025 is not available-which is a risk in itself-the company's strategic moves are focused on diversifying away from their core China trucking services.

Here's the quick math on a conservative revenue scenario: using the $40.43 million in revenue reported for the last fiscal year (FY 2024) as a base, and applying the broader transportation industry's one-year growth forecast of 8.6%, you get a baseline 2025 revenue projection of roughly $43.91 million. This is a simple extrapolation, but it gives you a floor. What this estimate hides is the potential impact of their new ventures.

Key Growth Drivers and Strategic Moves

The biggest near-term opportunity for MingZhu Logistics Holdings Limited is a strategic pivot to cross-border logistics. In July 2025, the company announced a Memorandum of Understanding (MOU) with ENEXTREND.VN COMPANY LIMITED, which owns the e-commerce platform Muamau Mall. This partnership is explicitly designed to explore the Vietnam and U.S. markets. This is a clear attempt to inject new, high-growth revenue streams into a business that saw a net loss of -$6.19 million in FY 2024. Simply put, they are chasing new markets to offset domestic pressures.

Beyond market expansion, the company is focused on operational efficiency and fleet modernization:

• Product Innovation: Investing in 61 Liquefied Natural Gas (LNG) vehicles to reduce carbon emissions, which is a key differentiator for large corporate clients focused on supply chain sustainability.
• Operational Excellence: The implementation of new routing algorithms led to a 15% increase in operational efficiency in 2024, saving an estimated $500,000 annually. That's a real, tangible cost saving.
• Platform Development: They are pushing technological innovation to create a comprehensive logistics platform that integrates various services, aiming for a competitive edge through proprietary solutions.

Competitive Advantages and Positioning

In a tough, highly fragmented logistics market, MingZhu Logistics Holdings Limited's main advantage is its customer-centric model and technological focus. They reported a 90% customer satisfaction rate in 2024, which helps secure long-term contracts. Plus, their hybrid fleet model, which combines self-owned tractors and trailers with a network of subcontractors, offers flexibility and broad geographic coverage, especially across China's Guangdong Province.

To be fair, the company's recent stock volatility, including the May 2025 compliance regain with the Nasdaq minimum bid price rule and the November 2025 announcement of a 1-for-16 Reverse Share Split, signals a high-risk investment profile. Still, the new Nasdaq listing should provide the capital needed for fleet expansion and strategic acquisitions, which is a necessary step for growth acceleration.

Here is a snapshot of the core financial and strategic drivers:

If you want to dive deeper into the historical context for this pivot, you should read our full analysis on Breaking Down MingZhu Logistics Holdings Limited (YGMZ) Financial Health: Key Insights for Investors. Your next step should be to model the potential revenue impact of the Muamau Mall partnership, even with conservative assumptions, to see if it moves the needle past that $43.91 million baseline.