Highlights (3Q 2020 compared to 3Q 2019)
- 38% Increase in Revenue
- 70% Expansion of Gross Profit
- 390 Basis Improvement in Gross Margin
- 122% Increase in Income from Operations
HOWELL, N.J., Nov. 23, 2020 /PRNewswire/ -- Greenland
Technologies Holding Corporation (NASDAQ: GTEC) ("Greenland"), a technology developer and
manufacturer of forklift transmission and drivetrain systems, today
announced financial results for the third quarter ended
September 30, 2020.
Raymond Wang, CEO of Greenland
Technologies Holding Corporation, commented, "We are pleased with
the strong growth of our business and significant expansion of
gross profit and income from operations. COVID-19 has continued to
affect business and manufacturing activities worldwide, with
government mandated shutdowns complicating production and
logistics. While we implemented a temporary suspension of
manufacturing activities for most of February, we were able to
restart and rebound as we moved through the year. Given the
uncertain market environment, however, we made the strategic
decision to delay the launch of our robotic cargo carriers. We
believe this segment represents a major, long-term growth
opportunity for the Company and we are committed to moving forward
with this new product line. We expect our robotic cargo carriers
will serve as a multi-year driver of our revenue growth and
expansion of profitability due to the acceleration underway in
companies seeking to implement higher levels of automation in all
areas of their operations in an effort to reduce human operator
exposure to COVID-19 and to avoid costly shutdowns."
Jing Jin, CFO of Greenland
Technologies Holding Corporation, said, "Our operations team has
done an excellent job working with our supply chain to secure
inventory, while trying to reduce the impact COVID-19 has had on
higher costs and lower component availability. We ended the third
quarter of 2020 in a stronger financial position, with an improved
balance sheet, enabling us to invest in the growth opportunities
that will help us achieve our long-term financial targets, as we
work to build increased value for the Company and
shareholders."
Third Quarter 2020 Results
Greenland's revenue was
approximately $16.52 million for the
three months ended September 30,
2020, representing an increase of approximately $4.57 million, or 38.2%, as compared to
approximately $11.95 million for the
three months ended September 30,
2019. The year over year increase reflects ongoing customer
demand growth and the fulfillment of backlog orders from the first
quarter of 2020 when the Company implemented a COVID-19 related
shutdown.
The total cost of goods sold was approximately $13.12 million for the three months ended
September 30, 2020, representing an
increase by approximately $3.17
million, or 31.9%, as compared to approximately $9.95 million for the three months ended
September 30, 2019. The year over
year increase was due to the Company's higher sales volume.
The Company's gross profit was approximately $3.40 million for the three months ended
September 30, 2020, representing an
increase by approximately $1.40
million, or 69.8%, as compared to approximately $2.00 million for the three months ended
September 30, 2019. Gross margin was
approximately 20.6% and 16.7%, respectively, for the three months
ended September 30, 2020 and for the
three months ended September 30,
2019.
Income from operations for the three months ended September 30, 2020 was approximately $2.24 million, representing an increase of
approximately $1.23 million, as
compared to approximately $1.01
million for the three months ended September 30, 2019.
Net income was approximately $0.46
million for the three months ended September 30, 2020, representing an increase of
approximately $0.22 million, as
compared to approximately $0.24
million for the three months ended September 30, 2019.
Business Outlook
Looking forward, Mr. Wang, CEO of Greenland Technologies Holding
Corporation, continued, "Despite near term uncertainties related to
COVID-19, we are very positive about the Company's outlook for
growth and profit expansion given our differentiated market
position, track record of execution and innovation, large and
growing global demand, and our robust financial position. Equally
important, we are well under way in our product roadmap, including
robotic cargo carriers and lithium battery powered innovations, to
meet the growing long-term demand from customers seeking clean
energy solutions, longer battery life, lower maintenance and
overall improved performance."
About Greenland Technologies Holding Corporation
Greenland Technologies Holding Corporation (NASDAQ: GTEC) is a
developer and a manufacturer of transmission and drivetrain
systems for material handling machineries and electric
vehicles, as well as electric forklift trucks. The Company's clean
energy lithium battery systems require less maintenance, charge
faster, operate more efficiently and last significantly longer than
lead acid power. For more information visit www.gtec-tech.com.
Forward-Looking Statements
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.
Greenland
Technologies Holding Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive Income
|
(Unaudited)
|
|
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
REVENUES
|
|
$
|
16,520,598
|
|
|
$
|
11,951,535
|
|
|
$
|
42,969,010
|
|
|
$
|
40,502,305
|
|
COST OF GOODS
SOLD
|
|
|
13,122,382
|
|
|
|
9,949,895
|
|
|
|
34,764,736
|
|
|
|
31,875,891
|
|
GROSS
PROFIT
|
|
|
3,398,216
|
|
|
|
2,001,640
|
|
|
|
8,204,274
|
|
|
|
8,626,414
|
|
Selling
expenses
|
|
|
270,654
|
|
|
|
180,252
|
|
|
|
792,030
|
|
|
|
778,348
|
|
General and
administrative expenses
|
|
|
324,073
|
|
|
|
363,353
|
|
|
|
1,841,958
|
|
|
|
1,253,646
|
|
Research and
development expenses
|
|
|
564,204
|
|
|
|
450,111
|
|
|
|
1,604,151
|
|
|
|
1,600,890
|
|
Total operating
expenses
|
|
$
|
1,158,931
|
|
|
$
|
993,716
|
|
|
$
|
4,238,139
|
|
|
$
|
3,632,884
|
|
INCOME FROM
OPERATIONS
|
|
$
|
2,239,285
|
|
|
$
|
1,007,924
|
|
|
$
|
3,966,135
|
|
|
$
|
4,993,530
|
|
Interest
income
|
|
|
66,960
|
|
|
|
6,111
|
|
|
|
142,791
|
|
|
|
132,141
|
|
Interest
expense
|
|
|
(231,760)
|
|
|
|
(415,203)
|
|
|
|
(942,524)
|
|
|
|
(1,292,746)
|
|
Other income
(loss)
|
|
|
(1,267,982)
|
|
|
|
(309,018)
|
|
|
|
(415,150)
|
|
|
|
40,092
|
|
INCOME BEFORE
INCOME TAX
|
|
$
|
806,503
|
|
|
$
|
289,814
|
|
|
$
|
2,751,252
|
|
|
$
|
3,873,017
|
|
INCOME
TAX
|
|
|
346,502
|
|
|
|
47,784
|
|
|
|
491,660
|
|
|
|
624,735
|
|
NET
INCOME
|
|
$
|
460,001
|
|
|
$
|
242,030
|
|
|
$
|
2,259,592
|
|
|
$
|
3,248,282
|
|
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING INTEREST
|
|
|
252,068
|
|
|
|
86,346
|
|
|
|
535,898
|
|
|
|
420,650
|
|
NET INCOME
ATTRIBUTABLE TO GREENLAND
TECHNOLOGIES HOLDING CORPORATION
AND SUBSIDIARIES
|
|
$
|
207,933
|
|
|
$
|
155,684
|
|
|
$
|
1,723,694
|
|
|
$
|
2,827,632
|
|
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|
|
3,657,192
|
|
|
|
(1,613,847)
|
|
|
|
2,410,267
|
|
|
|
(1,725,902)
|
|
Unrealized foreign
currency translation income (loss)
attributable to Greenland technologies holding
corporation and subsidiaries
|
|
|
2,863,032
|
|
|
|
(1,662,531)
|
|
|
|
2,303,218
|
|
|
|
(1,740,796)
|
|
Unrealized foreign
currency translation income attributable
to Noncontrolling interest
|
|
|
794,160
|
|
|
|
48,684
|
|
|
|
107,049
|
|
|
|
14,894
|
|
Comprehensive
income (loss)
|
|
|
3,070,965
|
|
|
|
(1,506,847)
|
|
|
|
4,026,912
|
|
|
|
1,086,836
|
|
Noncontrolling
interest
|
|
|
1,046,228
|
|
|
|
135,030
|
|
|
|
642,947
|
|
|
|
435,544
|
|
WEIGHTED AVERAGE
ORDINARY SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
10,021,142
|
|
|
|
7,500,000
|
|
|
|
10,017,204
|
|
|
|
7,500,000
|
|
NET INCOME PER
ORDINARY SHARE
ATTRIBUTABLE TO OWNERS OF THE
COMPANY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.17
|
|
|
|
0.38
|
|
Greenland
Technologies Holding Corporation and Subsidiaries
|
Consolidated Balance Sheets
|
(in thousands;
Unaudited)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,418,741
|
|
|
$
|
2,123,485
|
|
Restricted
cash
|
|
|
775,875
|
|
|
|
3,593,722
|
|
Notes receivables,
net of allowance for notes receivables of $7,354 and $15,338,
respectively
|
|
|
20,018,092
|
|
|
|
16,156,692
|
|
Accounts receivable,
net of allowance for doubtful accounts of $1,183,770 and
$1,037,797, respectively
|
|
|
15,693,614
|
|
|
|
11,971,889
|
|
Inventories, net of
provision for slow moving inventory of $76,922 and $134,535,
respectively
|
|
|
12,573,915
|
|
|
|
9,972,877
|
|
Due from related
parties-current
|
|
|
1,104
|
|
|
|
36,042,829
|
|
Advance to
suppliers
|
|
|
104,872
|
|
|
|
50,664
|
|
Prepayments and Other
current assets
|
|
|
125,151
|
|
|
|
327,555
|
|
Total Current
Assets
|
|
$
|
59,711,364
|
|
|
$
|
80,239,713
|
|
|
|
|
|
|
|
|
|
|
Non-current
asset
|
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
19,861,333
|
|
|
|
20,630,251
|
|
Land use rights,
net
|
|
|
3,888,621
|
|
|
|
3,862,547
|
|
Other intangible
assets
|
|
|
12,031
|
|
|
|
5,174
|
|
Due from related
parties-non current
|
|
|
37,210,144
|
|
|
|
430,034
|
|
Deferred tax
assets
|
|
|
545,567
|
|
|
|
513,805
|
|
Goodwill
|
|
|
3,890
|
|
|
|
3,890
|
|
Other non-current
assets
|
|
|
5,454
|
|
|
|
798,429
|
|
Total non-current
assets
|
|
$
|
61,527,040
|
|
|
$
|
26,244,130
|
|
TOTAL
ASSETS
|
|
$
|
121,238,404
|
|
|
$
|
106,483,843
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
20,712,560
|
|
|
$
|
16,861,615
|
|
Notes payable-bank
acceptance notes
|
|
|
17,671,375
|
|
|
|
15,050,902
|
|
Accounts
payable
|
|
|
21,573,305
|
|
|
|
14,713,008
|
|
Taxes
payables
|
|
|
268,861
|
|
|
|
12,529
|
|
Customer
deposits
|
|
|
338,892
|
|
|
|
132,194
|
|
Due to related
parties
|
|
|
4,076,314
|
|
|
|
3,481,984
|
|
Other current
liabilities
|
|
|
1,513,260
|
|
|
|
3,086,859
|
|
Long-term payable-
current portion
|
|
|
741,215
|
|
|
|
2,654,230
|
|
Total current
liabilities
|
|
$
|
66,895,782
|
|
|
$
|
55,993,321
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
Long-term
payables
|
|
|
370,392
|
|
|
|
1,349,850
|
|
Other long-term
liabilities
|
|
|
2,310,894
|
|
|
|
2,178,548
|
|
Total long-term
liabilities
|
|
$
|
2,681,286
|
|
|
$
|
3,528,398
|
|
TOTAL
LIABILITIES
|
|
$
|
69,577,068
|
|
|
$
|
59,521,719
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no
par value: 10,021,142 and 10,006,142 shares issued and
outstanding as of September 30, 2020 and December 31,
2019
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
15,269,485
|
|
|
|
15,226,685
|
|
Statutory
reserves
|
|
|
4,338,618
|
|
|
|
3,866,574
|
|
Retained
earnings
|
|
|
21,101,803
|
|
|
|
19,863,600
|
|
Accumulated other
comprehensive income (loss)
|
|
|
1,942,237
|
|
|
|
(360,981)
|
|
Total
shareholders' equity
|
|
$
|
42,652,143
|
|
|
$
|
38,595,878
|
|
Non-controlling
interest
|
|
|
9,009,193
|
|
|
|
8,366,246
|
|
TOTAL
EQUITY
|
|
$
|
51,661,336
|
|
|
$
|
46,962,124
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
121,238,404
|
|
|
$
|
106,483,843
|
|
View original
content:http://www.prnewswire.com/news-releases/greenland-technologies-holding-corporation-reports-third-quarter-2020-results-301178609.html
SOURCE Greenland Technologies Holding Corporation