SHENZHEN, China, May 1, 2024 /PRNewswire/ -- MingZhu Logistics Holdings Limited ("MingZhu" or the "Company") (Nasdaq: YGMZ), an elite provider of logistics and transportation services to businesses, today announced it has entered into a non-binding memorandum of understanding to acquire Xiamen Mingfu Liquor Industry Co., Ltd., a China-based distributor of Baijiu. The acquisition, subject to a final agreement, will help accelerate growth of MingZhu's premium liquor business in China, which includes self-owned Baijiu brands and commercial distribution for third party brands.

Mingfu Liquor is a liquor distributor that focuses on distributing Baijiu brewed in Maotai town, Guizhou. Baijiu is considered to be China's national drink and is the dominant spirits sold in the domestic China market, with the "white liquor" a normal staple at occasions from family gatherings to business banquets while the Maotai town is the most well-known origin of Baijiu.

The proposed acquisition represents a further expansion of MingZhu's premium liquor services business. Previous premium liquor brand and business acquisitions include MingZhu's 2023 acquisition of Guizhou Alliance Liquor Management Co., Ltd. (formerly known as Guizhou Minzusheng Liquor Co., Ltd.).

Mr. Jinlong Yang, Chairman and Chief Executive Officer of MingZhu, commented, "The premium liquor business is one of our fastest growing businesses known for is very attractive, higher margins. We have been focused on building our own Baijiu brand and premium liquor customization OBM (Original Brand Manufacturer) services. As we expected, the synergies and adjacency to our core business are making our expansion into the commercial liquor distribution market a natural fit for us, with considerable opportunities for further growth, increased profitability and long-term success – all of which are in-line with our focus on creating value for shareholders."

Mr. Jinlong Yang continued, "By combining MingZhu's market position, extensive knowledge of the domestic distribution market, our logistics network and financial resources, with our alliance's keen understanding of the Chinese spirits market and long-term relationships, we think we can further accelerate our growth and capture additional market share. This is an exciting business area for us where we have demonstrated our execution, success and management. We plan to evaluate other strategic opportunities that can serve as natural extensions of our business and be totally additive from both a revenue and profitability standpoint, as we focus on building value for shareholders."