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Greenland Technologies Holding Corporation Reports Third Quarter 2021 Unaudited Financial Results

Third Quarter Revenue of $23.1 million, up 39.7% year over year Third Quarter Net Income of $1.3 million, up 172.5% year over year

EAST WINDSOR, N.J., Nov. 11, 2021 /PRNewswire/ — Greenland Technologies Holding Corporation (NASDAQ: GTEC) (“Greenland” or the “Company”), a technology developer and manufacturer of electric industrial vehicles and drivetrain systems for material handling machineries and vehicles, today announced its unaudited financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Financial and Operating Highlights

Total revenues were $23.1 million, an increase of 39.7% from $16.5 million in the third quarter of 2020. Gross margin was 22.1%, an increase of 150 basis points year over year. Net Income was $1.3 million, an increase of 172.5% from $0.5 million in the third quarter of 2020. Number of transmission products sold was 33,478 units, an increase of 11.6% compared with 29,985 units in the third quarter of 2020.

CEO and CFO Remarks

Mr. Raymond Wang, CEO of Greenland Technologies Holding Corporation, commented, “”Greenland continues to demonstrate operation excellence and results generation by achieving $23.1 million representing a year over year growth of 39.7%.  I am proud of our passionate team for their hard work and accomplishments in a difficult quarter challenged by rising material and logistic costs.  The global supply chain continues to grow and Greenland is well positioned to benefit from the strong demand.”

Mr. Wang continued, “Despite a brief delay due to port congestion, our latest electric GEF-series lithium powered forklift trucks have arrived on US soil.  The GEF-series lithium forklifts consist of three different models ranging from 1.8 tons to 3.5 tons rated load and launch prices ranging from approximately $23,999 to $34,999 with battery and charger.  We have begun the sales process and expect our first batch to sell quickly.  Our industry disruptive GEL-1800, an all electric 1.8 ton rated wheeled front loader, has also arrived and we have begun scheduling demonstrations to interested parties for sale.  These vehicles will be followed by our GEX-8000, an all electric 8.0 ton rated load lithium excavator, scheduled to arrive in January 2022.  Our electric industrial vehicle division is progressing well and will deepen the value Greenland generates for our shareholders and our clients.”

Mr. Jing Jin, Greenland Technologies’ Chief Financial Officer commented: “Greenland’s stellar performance in the third quarter of 2021 is a testament to our strong capabilities in addressing increasing demands for advanced transmission products and mitigate supply chain risks. Fueled by our robust sales of transmission units, our net income increased 172.5% to $1.3 million. Meanwhile, we also saw further improvement in our profitability. Specifically, our gross margin continued an upward trend and reached 22.1% in the quarter, up 150 basis points from the prior year. Given our sound financial position, we are confident to spearhead the development of electrifying commercial vehicles.”

Recent Developments and Strategic Highlights:

Arrival of New Zero Emissions GEF-Series Electric Lithium Forklifts
In November 2021, Greenland announced the arrival of its new zero emissions GEF-series EV forklift, one of the industry’s first lithium-powered EV forklift trucks. Deliveries will begin in earnest, with promotional launch prices ranging from approximately $23,999 to $34,999. Priority will also be given to customers who have previously placed orders in the North American market.

Third Quarter 2021 Financial Results

Revenues

Total revenues were $23.1 million, an increase of approximately 39.7% year-over-year. The increase was primarily due to the significant increase in the sales volume resulting from the continuously growing market demand, the ability to boost supplies, and a shift in the product mix towards higher value products. The number of transmission products sold increased 11.6% to 33,478 units from 29,985 units in the third quarter of 2020.

Costs of Goods Sold

Costs of goods sold were $18.0 million, an increase of 37.1% from $13.1 million in the third quarter of 2020. The increase was primarily due to the increase in sales volume and the increase in raw material prices.

Gross profit

Gross profit was $5.1 million, an increase of 50.0% from $3.4 million in the third quarter of 2020.

Gross margin was 22.1%, up 150 basis points from 20.6% in the third quarter of 2020. The increase was primarily due to a shift in the product mix towards products of higher value and sophistication such as hydraulic transmission products. 

Operating expenses   

Total operating expenses were $3.0 million, up 162.8% from $1.2 million in the third quarter of 2020. Operating expense as a percentage of total revenues was 13.2%, up 6.2% percentage points from 7.0% in the third quarter of 2020. The increase in operating expenses was primarily due to the increase in sales, consultancy fees, and research and development expenses year-over-year.

Selling expenses were $0.5 million, an increase of 93.2% from $0.3 million in the third quarter of 2020. The increase was mainly due to the increase in unit price for transportation expenses. General and administration expenses were $1.2 million, an increase of 255.1% from $0.3 million in the third quarter of 2020. The increase was primarily due to the G&A expenses incurred from the new financing activities as well as the increased legal and consultancy fees for business planning and projects as the Company expanded its operations. Research and development expenses were $1.4 million, an increase of 143.2% from $0.6 million in the third quarter of 2020. The increase was primarily attributed to the increase in R&D investment into higher value, more sophisticated products and electrification products.

Income from operations

Income from operations was $2.1 million, a decrease of 8.4% from $2.2 million in the third quarter of 2020. 

Net Income

Net Income was $1.3 million, an increase of 172.5% from $0.5 million in the third quarter of 2020.

Earnings per share

Basic and diluted net income per ordinary share was $0.09, an increase of 350.0% from $0.02 in the third quarter of 2020.

Business Outlook

For the full year of 2021, the Company maintained its guidance for total revenues to be between $90 million to $100 million, representing an increase of approximately 35% to 49% year over year from 2020.

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectations regarding its business situation and market conditions.  The outlook is subject to change, especially considering the uncertainties that may result from how the COVID-19 pandemic develops globally.

Conference Call

The Greenland Technologies Holding Corporation management team will host an earnings conference call at 8:00 AM on Thursday, November 11, 2021, U.S. Eastern Time (9:00 PM on November 11, 2021, Beijing/Hong Kong Time).

Please register in advance for the conference using the link below and dial in 10 minutes before the conference is scheduled to begin. Conference access information will be provided upon registration.

Online Participant Registration:  http://apac.directeventreg.com/registration/event/9156685

A replay of the conference call may be accessed by phone at the following numbers until November 19, 2021. To access the replay, please reference the conference ID 9156685.

Phone Number

International

+61 2 8199-0299

United States

+1 (855) 452-5696

Hong Kong

+852 800963117

Mainland China

+86 4006322162

+86 8008700205

A live and archived webcast of the conference call will be available at https://ir.gtec-tech.com/.

About Greenland Technologies Holding Corporation

Greenland Technologies Holding Corporation (NASDAQ: GTEC) is a developer and a manufacturer of drivetrain systems for material handling machineries and electric vehicles, as well as electric industrial vehicles. For more information visit https://ir.gtec-tech.com/.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking statements.” Such statements reflect Greenland’s current views with respect to future events and are subject to such risks and uncertainties, many of which are beyond the control of Greenland, including those set forth in the Risk Factors section of Greenland’s Annual Report on Form 10-K and Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission (“SEC”). Copies are available on the SEC’s website, www.sec.gov. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Greenland’s expectations with respect to future performance. In addition, there is uncertainty about the further spread of the COVID-19 virus or the occurrence of another wave of cases and the impact it may have on the Company’s operations, the demand for the Company’s products, global supply chains and economic activity in general. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Greenland does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

For more information, please contact:

In China:

The Blueshirt Group
Ms. Feifei Shen
Phone: +86 134-6656-6136
Email: feifei@blueshirtgroup.com

Ms. Miranda Tian                                                          
Phone: +86 135-2551-1189
Email: miranda@blueshirtgroup.com

In the United States:

The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: Julia@blueshirtgroup.com

 

 

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(UNAUDITED, IN U.S. DOLLARS)

For the three months
ended

September 30,

For the nine months 
ended

September 30,

2021

2020

2021

2020

REVENUES

$

23,084,793

$

16,520,598

$

75,899,994

$

42,969,010

COST OF GOODS SOLD

17,987,363

13,122,382

59,993,008

34,764,736

GROSS PROFIT

5,097,430

3,398,216

15,906,986

8,204,274

Selling expenses

522,770

270,654

1,397,462

792,030

General and administrative expenses

1,150,769

324,073

2,814,120

1,841,958

Research and development expenses

1,372,215

564,204

3,337,056

1,604,151

Total operating expenses

$

3,045,754

$

1,158,931

$

7,548,638

$

4,238,139

INCOME FROM OPERATIONS

$

2,051,676

$

2,239,285

$

8,358,348

$

3,966,135

Interest income

4,737

66,960

14,165

142,791

Interest expense

(106,506)

(231,760)

(508,359)

(942,524)

Other income

231,466

(1,267,982)

829,556

(415,150)

INCOME BEFORE INCOME TAX

$

2,181,373

$

806,503

$

8,693,710

$

2,751,252

INCOME TAX

927,844

346,502

1,844,619

491,660

NET INCOME

$

1,253,529

$

460,001

$

6,849,091

$

2,259,592

LESS: NET INCOME ATTRIBUTABLE TO
   NONCONTROLLING INTEREST

225,181

252,068

911,422

535,898

NET INCOME ATTRIBUTABLE TO GREENLAND
   TECHNOLOGIES HOLDING CORPORATION
   AND SUBSIDIARIES

$

1,028,348

$

207,933

$

5,937,669

$

1,723,694

OTHER COMPREHENSIVE INCOME (LOSS):

(605,515)

3,657,192

(29,781)

2,410,267

Unrealized foreign currency translation income (loss)
   attributable to Greenland technologies holding
   corporation and subsidiaries

(433,694)

2,863,032

(31,313)

2,303,218

Unrealized foreign currency translation income (loss)
   attributable to Noncontrolling interest

(171,821)

794,160

1,532

107,049

Comprehensive income

594,654

3,070,965

5,906,356

4,026,912

Noncontrolling interest

53,360

1,046,228

912,954

642,947

WEIGHTED AVERAGE ORDINARY SHARES
   OUTSTANDING:

Basic and diluted

11,371,171

10,021,142

10,749,425

10,017,204

NET INCOME PER ORDINARY SHARE
   ATTRIBUTABLE TO OWNERS OF THE
   COMPANY:

Basic and diluted

0.09

0.02

0.55

0.17

            The accompanying notes are an integral part of the unaudited consolidated financial statements.

 

 

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020

(IN U.S. DOLLARS)

September
30,

December 
31,

2021

2020

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

9,020,787

$

7,159,015

Restricted cash

6,635,569

2,244,038

Short term investment

500,000

Notes receivables

37,028,350

30,803,772

Accounts receivable, net of allowance for doubtful accounts of $999,026 and
   $986,532, respectively

21,321,082

12,408,548

Inventories

20,608,956

15,380,063

Due from related parties-current

39,026,289

38,535,171

Advance to suppliers

207,371

447,901

Prepayments and other current assets

94,239

664,926

Total Current Assets

$

134,442,643

$

107,643,434

Non-current asset

Property, plant, equipment and construction in progress, net

19,313,667

20,135,339

Land use rights, net

4,014,734

4,035,254

Other intangible assets

Due from related parties – non-current

Deferred tax assets

158,431

158,455

Goodwill

3,890

3,890

Operating lease right-of-use assets

88,783

Other non-current assets

37,210

158,455

Total non-current assets

$

23,616,715

$

24,335,303

TOTAL ASSETS

$

158,059,358

$

131,978,737

          The accompanying notes are an integral part of the unaudited consolidated financial statements.

 

 

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 (Continued)

(IN U.S. DOLLARS)

September 30,

December 31,

2021

2020

(Unaudited)

Current Liabilities

Short-term bank loans

$

8,664,680

$

18,487,356

Notes payable-bank acceptance notes

42,626,471

25,889,067

Accounts payable

28,288,161

22,005,260

Customer deposits

335,631

366,029

Due to related parties

7,514,772

9,051,119

Other current liabilities

1,490,381

2,212,325

Current portion of operating lease liabilities

32,806

Long-term payable- current portion

390,293

797,179

Total current liabilities

$

89,343,195

$

78,808,335

Long-term liabilities

Long term operating lease  liabilities

56,128

Long-term payables

166,292

Other long-term liabilities

2,183,427

2,342,648

Total long-term liabilities

$

2,239,555

$

2,508,940

TOTAL LIABILITIES

$

91,582,750

$

81,317,275

COMMITMENTS AND CONTINGENCIES

EQUITY

Ordinary shares, no par value, unlimited shares authorized; 11,371,171 and
   10,225,142 shares issued and outstanding as of September 30, 2021 and December
   31, 2020.

Additional paid-in capital

21,983,495

13,707,39

Statutory reserves

3,842,331

4,517,117

Retained earnings

33,340,787

26,728,332

Accumulated other comprehensive loss

418,351

(62,925)

Total shareholders’ equity

$

59,584,964

$

44,889,922

Non-controlling interest

6,891,644

5,771,540

TOTAL EQUITY

$

66,476,608

$

50,661,462

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

158,059,358

$

131,978,737

         The accompanying notes are an integral part of the unaudited consolidated financial statements.

 

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