- 2Q23 Revenue Increased 14%
Year-over-Year
- 2Q23 Gross Margin Improved
590 Basis Points Year-over-Year
- 2Q23 Net
Income Increased 24% Year-over-Year
- Cash
and Cash Equivalents Grew 373% Year-over-Year to $15.2 Million
EAST
WINDSOR, N.J., Aug. 21,
2023 /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 second
quarter and first half ended June 30,
2023.
Second Quarter 2023 Financial and Operating
Highlights
- Revenue was $23.6 million,
an increase of 14% from $20.6 million
a year ago.
- Gross margin was 29.4%, up 590 basis points from 23.5% a
year ago on improved product mix.
- Net income was $2.9
million, an increase of 24% from $2.4
million in the second quarter of 2022.
- Transmissions products sold were 38,256 units, an
increase of 32% from 28,939 units a year ago.
First Half 2023 Financial and Operating Highlights
- Revenue was $45.7 million,
compared with $49.9 million a year
ago.
- Gross margin was 27.2%, up 470 basis points from 22.5% a
year ago on improved product mix.
- Net income was $5.4
million, a slight increase of 2% from $5.3 million in the first half of 2022.
- Transmissions products sold were 75,097 units, an
increase of 6% from 70,841 units a year ago.
"We are pleased to deliver strong second quarter results as our
core markets in China have largely
returned to a new-normal following years of COVID disruptions",
said Mr. Raymond Wang, Chief
Executive Officer of Greenland Technologies. "Demand for our
transmission products increased significantly from the second
quarter of last year and drove revenue growth of 14%. On a constant
currency basis, our revenue growth was even stronger at 19%
year-over-year, after excluding the impact of FX. Further, our
strategic focus on higher value products continued to pay off and
drove our gross margin to improve nearly 600 basis points to 29.4%,
which is a record high for us over the last few years. Looking into
the second half of the year, we expect demand to remain strong and
we continue to anticipate revenue growth for our core transmission
business in 2023."
Mr. Jing Jin, Chief Financial
Officer of Greenland, commented:
"Improved demand and product mix in the second quarter drove strong
financial results across almost every metric. Notably, our net
income to grew 24% year-over-year and we ended the quarter with
$15.2 million of cash, up nearly 400%
from a year ago. These impressive results demonstrate our leading
position in the industry and the effectiveness of our business
strategies. Going forward, we will continue to leverage our core
strengths and execute growth strategies to bolster our core
transmission business while also expanding our HEVI division."
Second Quarter 2023 Financial Results
Revenue was $23.6 million, an
increase of 14% from $20.6 million in
the second quarter of 2022, due to the increase in the Company's
sales volume of its transmission products. On an RMB basis,
excluding the impact of FX, revenue increased approximately 19%
from the second quarter of 2022. The number of transmission
products sold was 38,256 units, an increase of 32% from 28,939 in
the second quarter of 2022.
Costs of goods sold were $16.6
million, an increase of 6% from $15.8
million in the second quarter of 2022, primarily due to the
increase in sales volume.
Gross profit was $6.9 million, an
increase of 43% from $4.8 million in
the second quarter of 2022. Gross margin was 29.4%, up 590 basis
points from 23.5% in the second quarter of 2022, resulting from a
strategic shift in Greenland's
product mix towards higher value and sophistication products such
as hydraulic transmissions.
Total operating expenses were $3.5
million, an increase of 34% from $2.6
million in the second quarter of 2022. The increase was
primarily due to the Company's focus on R&D investment as well
as advertising, marketing, general and administrative activities
related to its expansion, along with higher shipping fees.
Income from operations was $3.4
million, an increase of 54% from $2.2
million in the second quarter of 2022.
Net income was $2.9 million, an
increase of 24% from $2.4 million in
the second quarter of 2022.
Basic and diluted net income per ordinary share were both
$0.18, an increase of 38% from
$0.13 per ordinary share in the
second quarter of 2022.
First Half 2023 Financial Results
Revenue was $45.7 million, a
decrease of 8% from $49.9 million in
the first half of 2022, primarily due to logistical and supply
chain challenges in the first quarter from the initial wave of
covid cases following the end of China's zero covid policies and significant
pent-up demand-related travel during this year's Chinese New Year
holiday. Revenue was also impacted by a stronger dollar relative to
the Chinese RMB. On an RMB basis, excluding the impact of FX,
revenue decreased approximately 2% from the first half of 2022. The
number of transmission products sold was 75,097 units, an increase
of 6% from 70,841 units in the first half of 2022.
Costs of goods sold were $33.3
million, a decrease of 14% from $38.7
million in the first half of 2022, primarily due to the
decrease in sales.
Gross profit was $12.5 million, an
increase of 11% from $11.2 million in
the first half of 2022. Gross margin was 27.2%, up 470 basis points
from 22.5% in the first half of 2022, resulting from a strategic
shift in Greenland's product mix
towards higher value and sophistication products such as hydraulic
transmissions.
Total operating expenses were $6.7
million, an increase of 18% from $5.6
million in the first half of 2022. The Company has focused
on R&D investment and general and administrative activities
related to the Company's expansion, which offset the decrease in
after-sales service fees.
Income from operations was $5.8
million, an increase of 4% from $5.6
million in the first half of 2022.
Net income was $5.4 million, a
slight increase of 2% from $5.3
million in the first half of 2022.
Basic and diluted net income per ordinary share were both
$0.3, up 3% from $0.29 per ordinary share in the first half of
2022.
Conference Call
Greenland Technologies management will host an earnings
conference call at 4:30 PM on Monday, August
21, 2023, U.S. Eastern Time (4:30
AM on August 22, 2023,
Beijing/Hong Kong Time).
Participant Registration
Investors and analysts interested in participating in
Greenland's second quarter and
first half 2023 earnings call need to register in advance using the
URL provided below. Conference access information will be provided
upon registration.
Participant Online Pre-Registration:
https://register.vevent.com/register/BI3891950c447148bf9c94f6a78f21defb
A live and archived webcast will also be available on the
investor relations section of Greenland's website 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. Information on the Company's clean
industrial heavy equipment division can be found at HEVI Corp.
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 filed
with the U.S. 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.
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
AS OF JUNE 30,
2023 AND DECEMBER 31, 2022
|
(IN U.S.
DOLLARS)
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
15,232,289
|
|
|
$
|
16,295,695
|
|
Restricted
cash
|
|
|
3,815,661
|
|
|
|
3,433,361
|
|
Short Term
Investment
|
|
|
5,653,055
|
|
|
|
7,800,723
|
|
Notes
receivable
|
|
|
31,366,381
|
|
|
|
28,748,879
|
|
Accounts receivable,
net of allowance for doubtful accounts of $1,104,705 and
$762,325, respectively
|
|
|
20,908,968
|
|
|
|
14,337,760
|
|
Inventories
|
|
|
20,216,673
|
|
|
|
23,096,382
|
|
Due from related
parties-current
|
|
|
34,675,437
|
|
|
|
36,669,907
|
|
Advance to
suppliers
|
|
|
1,068,716
|
|
|
|
412,766
|
|
Prepayments and other
current assets
|
|
|
375,495
|
|
|
|
1,568,687
|
|
Total Current Assets
|
|
$
|
133,312,675
|
|
|
$
|
132,364,160
|
|
|
|
|
|
|
|
|
|
|
Non-current asset
|
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
14,132,165
|
|
|
|
15,585,214
|
|
Land use rights,
net
|
|
|
3,418,932
|
|
|
|
3,639,067
|
|
Other intangible
assets
|
|
|
120,947
|
|
|
|
147,465
|
|
Long term
investment
|
|
|
300,000
|
|
|
|
250,000
|
|
Deferred tax
assets
|
|
|
277,222
|
|
|
|
219,207
|
|
Operating lease
right-of-use assets
|
|
|
2,379,271
|
|
|
|
2,627,110
|
|
Other non-current
assets
|
|
|
255,977
|
|
|
|
283,118
|
|
Total non-current assets
|
|
$
|
20,884,514
|
|
|
$
|
22,751,181
|
|
TOTAL ASSETS
|
|
$
|
154,197,189
|
|
|
$
|
155,115,341
|
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
AS OF JUNE 30, 2023
AND DECEMBER 31, 2022 (Continued)
|
(IN U.S.
DOLLARS)
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
7,309,034
|
|
|
$
|
8,986,255
|
|
Notes payable-bank
acceptance notes
|
|
|
28,120,761
|
|
|
|
28,272,472
|
|
Accounts
payable
|
|
|
24,983,677
|
|
|
|
24,817,165
|
|
Taxes
payables
|
|
|
-
|
|
|
|
192,478
|
|
Customer
deposits
|
|
|
217,674
|
|
|
|
227,432
|
|
Due to related
parties
|
|
|
1,690,031
|
|
|
|
1,693,315
|
|
Other current
liabilities
|
|
|
2,433,957
|
|
|
|
1,547,390
|
|
Current portion of
operating lease liabilities
|
|
|
533,157
|
|
|
|
472,182
|
|
Total current liabilities
|
|
$
|
65,288,291
|
|
|
$
|
66,208,689
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
|
|
|
|
Long term operating
lease liabilities
|
|
|
1,928,680
|
|
|
|
2,176,130
|
|
Other long-term
liabilities
|
|
|
1,641,079
|
|
|
|
1,812,759
|
|
Total long-term liabilities
|
|
$
|
3,569,759
|
|
|
$
|
3,988,889
|
|
TOTAL LIABILITIES
|
|
$
|
68,858,050
|
|
|
$
|
70,197,578
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no par
value, unlimited shares authorized; 12,978,504 and
12,978,504 shares issued and outstanding as of
June 30, 2023 and December 31,
2022.
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
32,955,927
|
|
|
|
32,955,927
|
|
Statutory
reserves
|
|
|
3,842,331
|
|
|
|
3,842,331
|
|
Retained
earnings
|
|
|
41,074,374
|
|
|
|
37,228,261
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(5,804,429)
|
|
|
|
(2,831,419)
|
|
Total shareholders' equity
|
|
$
|
72,068,203
|
|
|
$
|
71,195,100
|
|
Non-controlling
interest
|
|
|
13,270,936
|
|
|
|
13,722,663
|
|
TOTAL EQUITY
|
|
$
|
85,339,139
|
|
|
$
|
84,917,763
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
$
|
154,197,189
|
|
|
$
|
155,115,341
|
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2023 AND 2022
|
(UNAUDITED, IN U.S.
DOLLARS)
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
REVENUES
|
|
$
|
23,569,449
|
|
|
$
|
20,602,505
|
|
|
$
|
45,718,809
|
|
|
$
|
49,909,462
|
|
COST OF GOODS SOLD
|
|
|
16,641,612
|
|
|
|
15,763,344
|
|
|
|
33,267,542
|
|
|
|
38,702,327
|
|
GROSS PROFIT
|
|
|
6,927,837
|
|
|
|
4,839,161
|
|
|
|
12,451,267
|
|
|
|
11,207,135
|
|
Selling
expenses
|
|
|
574,040
|
|
|
|
518,088
|
|
|
|
961,525
|
|
|
|
1,157,735
|
|
General and
administrative expenses
|
|
|
1,519,564
|
|
|
|
1,244,634
|
|
|
|
3,161,468
|
|
|
|
2,524,380
|
|
Research and
development expenses
|
|
|
1,425,394
|
|
|
|
862,535
|
|
|
|
2,545,285
|
|
|
|
1,945,129
|
|
Total operating expenses
|
|
$
|
3,518,998
|
|
|
$
|
2,625,257
|
|
|
$
|
6,668,278
|
|
|
$
|
5,627,244
|
|
INCOME FROM OPERATIONS
|
|
$
|
3,408,839
|
|
|
$
|
2,213,904
|
|
|
$
|
5,782,989
|
|
|
$
|
5,579,891
|
|
Interest
income
|
|
|
44,683
|
|
|
|
9,887
|
|
|
|
75,076
|
|
|
|
22,449
|
|
Interest
expense
|
|
|
(79,504)
|
|
|
|
(91,651)
|
|
|
|
(145,997)
|
|
|
|
(196,660)
|
|
Loss on disposal of
property and equipment
|
|
|
(239)
|
|
|
|
10
|
|
|
|
(239)
|
|
|
|
(394)
|
|
Other income
|
|
|
(128,768)
|
|
|
|
501,710
|
|
|
|
288,614
|
|
|
|
762,742
|
|
INCOME BEFORE INCOME TAX
|
|
$
|
3,245,011
|
|
|
$
|
2,633,860
|
|
|
$
|
6,000,443
|
|
|
$
|
6,168,028
|
|
INCOME TAX
|
|
|
304,815
|
|
|
|
254,434
|
|
|
|
601,673
|
|
|
|
873,804
|
|
NET INCOME
|
|
$
|
2,940,196
|
|
|
$
|
2,379,426
|
|
|
$
|
5,398,770
|
|
|
$
|
5,294,224
|
|
LESS: NET INCOME
ATTRIBUTABLE TO NONCONTROLLING
INTEREST
|
|
|
541,058
|
|
|
|
892,162
|
|
|
|
1,552,657
|
|
|
|
2,019,908
|
|
NET INCOME ATTRIBUTABLE TO GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND
SUBSIDIARIES
|
|
$
|
2,399,138
|
|
|
$
|
1,487,264
|
|
|
$
|
3,846,113
|
|
|
$
|
3,274,316
|
|
OTHER COMPREHENSIVE INCOME
(LOSS):
|
|
|
(4,591,131)
|
|
|
|
(4,075,452)
|
|
|
|
(4,273,799)
|
|
|
|
(3,701,542)
|
|
Unrealized foreign
currency translation income (loss)
attributable to Greenland Technologies Holding
Corporation and subsidiaries
|
|
|
(3,185,362)
|
|
|
|
(2,720,040)
|
|
|
|
(2,973,010)
|
|
|
|
(2,471,958)
|
|
Unrealized foreign
currency translation income (loss)
attributable to Noncontrolling interest
|
|
|
(1,405,769)
|
|
|
|
(1,355,412)
|
|
|
|
(1,300,789)
|
|
|
|
(1,229,584)
|
|
Comprehensive income (loss)
|
|
|
(786,224)
|
|
|
|
(1,232,776)
|
|
|
|
873,103
|
|
|
|
802,358
|
|
Noncontrolling interest
|
|
|
(864,711)
|
|
|
|
(463,250)
|
|
|
|
251,868
|
|
|
|
790,324
|
|
WEIGHTED AVERAGE ORDINARY SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
12,978,504
|
|
|
|
11,329,530
|
|
|
|
12,978,504
|
|
|
|
11,329,530
|
|
NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO
OWNERS OF THE COMPANY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.18
|
|
|
|
0.13
|
|
|
|
0.30
|
|
|
|
0.29
|
|
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SOURCE Greenland Technologies Holding Corporation