Highlights (Full Year 2020 compared to Full Year
2019)
- 27.6% Increase in Revenue
- 3.5% Expansion of Gross Profit
- 34% Increase in Selling Expenses to Drive Growth
- 19.6% Increase in Net Income Per Basic and Diluted Share on
Nearly 2.1 Million Higher Year-Over-Year Share Count
EAST WINDSOR, N.J.,
March 30, 2021 /PRNewswire/
-- Greenland Technologies Holding Corporation (NASDAQ:
GTEC) ("Greenland"), a technology
developer and manufacturer of electric industrial vehicles and
drivetrain systems for material handling machineries and vehicles,
today announced audited results for the full year 2020 ended
December 31, 2020.
Raymond Wang, CEO of Greenland
Technologies Holding Corporation, commented, "Despite unprecedented
challenges with the global pandemic, we achieved 27.6% growth in
revenue for the full year 2020 compared to the prior year, as we
executed on our operating strategy, focused on our long-term plan
and supported our customers. Our team did an excellent job
hitting our product roadmap benchmarks on time, with innovative
lithium battery powered solutions such as electric industrial
vehicles and other solutions to add value and further differentiate
Greenland in the market. At
the same time, we made significant progress on our manufacturing
capacity expansion with multiple initiatives, including planning a
major U.S. manufacturing expansion that will establish our U.S.
market manufacturing footprint and increase our total worldwide
capacity, and announcing a cooperation with strategic partner
Fujian South China Heavy Machinery Manufacture Co. Ltd."
Mr. Wang continued, "The expansion of Greenland from a critical component provider
to a fully integrated electric industrial vehicle company, will
expand the potential value of our addressable market opportunities
on a major scale. To facilitate our success, we leveraged our
robust R&D capabilities, strategic supply chain partners, and
expertise in the development of our new line of electric industrial
vehicles. We expect to have our first production-ready
electric industrial vehicle this summer, which will be a compact
electric loader vehicle with a payload capacity of approximately
1,800 kilograms (or 3,968 lbs.). This new line of electric
industrial vehicles will offer customers a better return on
investment when compared to traditional internal combustion
vehicles. Following the first electric loader product, we plan to
expand into other industrial vehicles and sizes, as we work to meet
customer demand and build greater value for shareholders."
Jing Jin, CFO of Greenland
Technologies Holding Corporation, added, "While we are pleased with
our revenue growth and higher profitability, our 19.6% year over
year increase in net income per share to $0.67 for the full year 2020 would have been
approximately $0.20 per share higher
absent the dilution impact from the 2.08 million share increase in
shares outstanding related to the Company's offering process last
year. Our successful offering provided capital to increase
our investments in revenue generating areas and R&D, while
reducing non-revenue generating general and administrative
expenses. For example, we ended 2020 with about 270 employees
across production, R&D, and sales and marketing, compared to
about only 40 in management and administration. As a result,
we ended 2020 in a strong financial position, and made the
strategic decision to proactively increase our inventory level to
ensure we could meet our customers' needs during Chinese New Year,
which typically affects production and transportation of
materials. Overall, we remain focused on our long-term growth
strategy and on driving both financial and operational
improvements."
Full Year 2020 Results
Greenland's revenue was
approximately $66.9 million for the
twelve months ended December 31,
2020, representing an increase of approximately $14.5 million, or 27.6%, as compared to
approximately $52.4 million for the
twelve months ended December 31,
2019. The year over year increase reflects ongoing customer
demand growth and the fulfillment of backlog orders from the first
half of 2020, and underscores the Company's understanding that it
is one of the major developers and manufacturers of transmission
products for the small and medium sized forklift trucks.
The total cost of goods sold was approximately $54.1 million for the twelve months ended
December 31, 2020, representing an
increase by approximately $14.0
million, or 35.1%, as compared to approximately $40.1 million for the twelve months ended
December 31, 2019. The year over year
increase was due to the Company's higher sales volume.
The Company's gross profit was approximately $12.8 million for the twelve months ended
December 31, 2020, representing an
increase by approximately $0.04
million, or 3.5%, as compared to approximately $12.4 million for the twelve months ended
December 31, 2019. Gross margin was
approximately 19.2% and 23.6%, respectively, for the twelve months
ended December 30, 2020 and for the
twelve months ended December 31,
2019.
Income from operations for the twelve months ended December 31, 2020 was approximately $6.7 million, representing an increase of
approximately $0.01 million, or 1.2%,
as compared to approximately $6.6
million for the twelve months ended December 31, 2019.
Net income per basic and diluted share was approximately
$0.67 per share for the twelve months
ended December 31, 2020, representing
an increase of approximately $0.11
per share or 19.6%, as compared to approximately $0.56 per share for the twelve months ended
December 31, 2019. The year
over year increase in net income per share would have been
approximately $0.20 per share higher
absent the dilution impact from the 2.08 million share increase in
shares outstanding related to the Company's offering process last
year. As of March 30, 2021, the
Company had 10,498,127 shares outstanding.
Business Outlook
Looking forward, Mr. Wang, CEO of Greenland Technologies Holding
Corporation, continued, "We exited 2020 in a great position as we
execute on our strategy, drive improved financial results and
strengthen our balance sheet. We are engaged in in the
highest number of customer opportunities in the company's
history. Our R&D investments are paying off with 108
registered patents and two registered trademarks, as of
December 31, 2020. Importantly,
we are firmly on track for the planned July
2021 completion of our first production-ready electric
industrial vehicle, a compact loader with a payload capacity of
approximately 1,800 kilograms (3,968 pounds). Following the
first electric vehicle, we plan to expand our product line to other
industrial vehicles and sizes, including an electric forklift
vehicle, electric digging vehicle and more. We are in the
midst of a global clean energy and vehicle electrification trend,
with the global construction equipment market anticipated to grow
at a compound annual growth rate of 3.9% from 2020 to 2025,
reaching $205 billion (1). We
expect the electric subsegment will outpace the broader market
growth as it gains momentum, with supply chains and support
infrastructure fully built out. We are concentrating on the
strategic opportunities that will contribute to our growth over the
coming years and those that we believe present the most significant
opportunities to build value for the company and shareholders." (1)
source: Marketsandmarkets, November
2020.
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
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 INCOME AND COMPREHENSIVE INCOME
|
FOR THE YEAR ENDED
DECEMBER 31, 2020 AND 2019
|
(IN U.S.
DOLLARS)
|
|
|
|
For the year
ended
December 31,
|
|
|
2020
|
|
|
2019
|
REVENUES
|
|
$
|
66,864,375
|
|
|
$
|
52,400,844
|
COST OF GOODS
SOLD
|
|
|
54,051,367
|
|
|
|
40,022,243
|
GROSS
PROFIT
|
|
|
12,813,008
|
|
|
|
12,378,601
|
Selling
expenses
|
|
|
1,588,302
|
|
|
|
1,187,263
|
General and
administrative expenses
|
|
|
2,131,405
|
|
|
|
2,231,953
|
Research and
development expenses
|
|
|
2,384,951
|
|
|
|
2,355,307
|
Total operating
expenses
|
|
$
|
6,104,658
|
|
|
$
|
5,774,523
|
INCOME FROM
OPERATIONS
|
|
$
|
6,708,350
|
|
|
$
|
6,604,078
|
Interest
income
|
|
|
2,645
|
|
|
|
151,532
|
Interest
expense
|
|
|
(930,634)
|
|
|
|
(1,289,133)
|
Loss on disposal of
property and equipment
|
|
|
(79,216)
|
|
|
|
(252,556)
|
Other
income/(loss)
|
|
|
1,002,642
|
|
|
|
720,612
|
Remeasurement gain
from change in functional currency
|
|
|
1,940,773
|
|
|
|
-
|
INCOME BEFORE
INCOME TAX
|
|
$
|
8,644,560
|
|
|
$
|
5,934,533
|
INCOME
TAX
|
|
|
2,272,997
|
|
|
|
847,367
|
NET
INCOME
|
|
$
|
6,371,563
|
|
|
$
|
5,087,166
|
LESS: NET INCOME
(LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
|
|
(386,939)
|
|
|
|
622,610
|
NET INCOME
ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND
SUBSIDIARIES
|
|
$
|
6,758,502
|
|
|
$
|
4,464,556
|
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|
|
937,629
|
|
|
|
(689,290)
|
Unrealized foreign
currency translation income (loss) attribute to Greenland
technologies holding corporation and subsidiaries
|
|
|
298,056
|
|
|
|
(534,862)
|
Unrealized foreign
currency translation income (loss) attribute to
Noncontrolling
interest
|
|
|
639,573
|
|
|
|
(154,428)
|
Comprehensive
income
|
|
|
7,056,558
|
|
|
|
3,929,694
|
Noncontrolling
interest
|
|
|
252,634
|
|
|
|
468,182
|
WEIGHTED AVERAGE
ORDINARY SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
10,037,249
|
|
|
|
7,932,567
|
NET INCOME PER
ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE
COMPANY:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.67
|
|
|
|
0.56
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
AS OF DECEMBER 31,
2020 AND 2019
|
(IN U.S.
DOLLARS)
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,159,015
|
|
|
$
|
2,123,485
|
|
Restricted
cash
|
|
|
2,244,038
|
|
|
|
3,593,722
|
|
Notes
receivables
|
|
|
30,803,772
|
|
|
|
16,156,692
|
|
Accounts receivable,
net of allowance for doubtful accounts of
$986,532 and
$1,037,797, respectively
|
|
|
12,408,548
|
|
|
|
11,971,889
|
|
Inventories
|
|
|
15,380,063
|
|
|
|
9,972,877
|
|
Due from related
parties-current
|
|
|
38,535,171
|
|
|
|
36,042,829
|
|
Advance to
suppliers
|
|
|
447,901
|
|
|
|
50,664
|
|
Prepayments and Other
current assets
|
|
|
664,926
|
|
|
|
327,555
|
|
Total Current
Assets
|
|
$
|
107,643,434
|
|
|
$
|
80,239,713
|
|
|
|
|
|
|
|
|
|
|
Non-current
asset
|
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
20,135,339
|
|
|
|
20,630,251
|
|
Land use rights,
net
|
|
|
4,035,254
|
|
|
|
3,862,547
|
|
Other intangible
assets
|
|
|
-
|
|
|
|
5,174
|
|
Due from related
parties-non current
|
|
|
-
|
|
|
|
430,034
|
|
Deferred tax
assets
|
|
|
158,455
|
|
|
|
513,805
|
|
Goodwill
|
|
|
3,890
|
|
|
|
3,890
|
|
Other non-current
assets
|
|
|
2,365
|
|
|
|
798,429
|
|
Total non-current
assets
|
|
$
|
24,335,303
|
|
|
$
|
26,244,130
|
|
TOTAL
ASSETS
|
|
$
|
131,978,737
|
|
|
$
|
106,483,843
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
18,487,356
|
|
|
$
|
16,861,615
|
|
Notes payable-bank
acceptance notes
|
|
|
25,889,067
|
|
|
|
15,050,902
|
|
Accounts
payable
|
|
|
22,005,260
|
|
|
|
14,713,008
|
|
Taxes
payables
|
|
|
-
|
|
|
|
12,529
|
|
Customer
deposits
|
|
|
366,029
|
|
|
|
132,194
|
|
Due to related
parties
|
|
|
9,051,119
|
|
|
|
3,481,984
|
|
Other current
liabilities
|
|
|
2,212,325
|
|
|
|
3,086,859
|
|
Long-term payable-
current portion
|
|
|
797,179
|
|
|
|
2,654,230
|
|
Total current
liabilities
|
|
$
|
78,808,335
|
|
|
$
|
55,993,321
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
Long-term bank
loans
|
|
|
-
|
|
|
|
-
|
|
Long-term
payables
|
|
|
166,292
|
|
|
|
1,349,850
|
|
Other long-term
liabilities
|
|
|
2,342,648
|
|
|
|
2,178,548
|
|
Total long-term
liabilities
|
|
$
|
2,508,940
|
|
|
$
|
3,528,398
|
|
TOTAL
LIABILITIES
|
|
$
|
81,317,275
|
|
|
$
|
59,521,719
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no
par value, 10,225,142 shares authorized;
10,225,142 and
10,006,142 shares issued and outstanding as
of December 31,
2020 and December 31, 2019
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
13,707,398
|
|
|
|
15,226,685
|
|
Statutory
reserves
|
|
|
4,517,117
|
|
|
|
3,866,574
|
|
Retained
earnings
|
|
|
26,728,332
|
|
|
|
19,863,600
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(62,925)
|
|
|
|
(360,981)
|
|
Total
shareholders' equity
|
|
$
|
44,889,922
|
|
|
$
|
38,595,878
|
|
Non-controlling
interest
|
|
|
5,771,540
|
|
|
|
8,366,246
|
|
TOTAL
EQUITY
|
|
$
|
50,661,462
|
|
|
$
|
46,962,124
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
131,978,737
|
|
|
$
|
106,483,843
|
|
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SOURCE GREENLAND Technologies
Holdings