- First
Quarter Revenue of $24.6 million, up
149.3% year over
year
-
First Quarter Net Income of $2.4
million, up 644.7% year over year
EAST WINDSOR, N.J.,
May 12, 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 quarter ended March 31, 2021.
First Quarter 2021 Financial and Operating Highlights
- Total revenues were $24.6
million, an increase of 149.3% from $9.9 million in the first quarter of 2020.
- Gross margin was 20.7%, an increase of 1.2 percentage
points year over year.
- Net Income was $2.4
million, an increase of 644.7% from $0.3 million in the first quarter of 2020.
- Number of transmission products sold was 36,986 units,
an increase of 129.7% compared with 16,099 units in the first
quarter of 2020
CEO and CFO Remarks
Mr. Raymond Wang, CEO of
Greenland Technologies Holding Corporation, commented, "I am very
proud of our team for continuing to deliver exceptional results. We
achieved our best quarter to date, with $24.6 million in revenue driven by a record
delivery of roughly 37,000 transmission units. These results
illustrate our successful operating strategy that utilizes our
established supply chain, production expertise and state-of-the-art
605,000 square feet manufacturing facility. We continue to earn the
trust of our clientele through focusing on their business needs
when others cannot during this global pandemic. As businesses begin
to reopen, the demand for material handling vehicles such as
forklift trucks in China has never
been larger and is expected to continue to drive growth of our core
business throughout the year as we consider ourselves as a market
leader in the industry."
Mr. Wang continued, "At the same time, we will continue to
expand our product roadmap with innovative lithium battery powered
solutions and electric industrial vehicles which will add further
value to us and distinguish Greenland in both the China and global markets. We will
continue to expand our manufacturing capabilities in China and enlarge our manufacturing footprint
with assembly sites in the United
States to deploy our new line of electric industrial
vehicles. We expect to have our first production-ready electric
industrial vehicle, an electric loader vehicle with a 1.8-ton
payload capacity powered by a 141kwh lithium battery, in Q4 of this
year. This will bring Greenland from a critical component provider
to a fully integrated electric industrial vehicle company. We can
expand the potential value of our addressable market opportunities
on a major scale as we work to meet customer demands and build
greater value for our shareholders."
Mr. Jing Jin, Greenland
Technologies' Chief Financial Officer commented: "We generated
strong quarterly results with impressive financial and operational
performances. Total revenues grew 149.3% year over year to
$24.6 million, with a 644.7% net
income increase year over year, reaching $2.4 million. These results demonstrate both the
soundness of our growth strategy and our ability to generate
attractive profit. With a solid balance sheet position and
cutting-edge knowledge, we will continue to invest in research and
new products to drive accelerated growth in electric industrial
vehicles sector."
First Quarter 2021 Financial Results
Revenues
Total revenues were $24.6 million,
an increase of approximately 149.3% year-over-year. The increase
was primarily due to the significant increase in our sales volume.
The number of transmission products sold increased 129.7% to 36,986
units from 16,099 units in the first quarter of 2020.
Costs of Goods Sold
Costs of goods sold were $19.5
million, an increase of 145.4% from $7.9 million in the first quarter of 2020. The
increase was primarily due to our increase in sales volume.
Gross profit
Gross profit was $5.1 million, an
increase of 165.3% from US$1.9
million in the first quarter of 2020.
Gross margin was 20.7%, up 1.2 percentage points from 19.5% in
the first quarter of 2020. The increased gross margin was primarily
due to the decreased material costs as we continue to lower the
costs of material through negotiation with our suppliers.
Operating expenses
Total operating expenses were $2.2
million, up 21.3% from $1.9
million in the first quarter of 2020. Operating expense as a
percentage of total revenues was 9.1%, a decrease of 9.7 percentage
points compared to 18.8% in the first quarter of 2020. The
reduction in operating expenses was primarily due to the Company's
better operating efficiency.
- Selling expenses were $0.38
million, an increase of 74.9% from $0.22 million in the first quarter of 2020. The
increase was mainly due to (i) higher selling and promotional
expenses to support transmission product sales, (ii) the expansion
of our sales network and associated personnel costs for sales
staff.
- General and administration expenses were $0.91 million, a decrease of 15.2% from
$1.07 million in the first quarter of
2020. The decrease was primarily due to the lower administrative
expenditures and the improved operating efficiency.
- Research and development expenses were $0.96 million, an increase of 70.0% from
$0.56 million in the first quarter of
2020. The increase was mainly due to higher research development
costs and human resources expenses, as the Company continued to
strengthen its product development efforts.
Income from operations
Income from operations was $2.9
million, an increase of 4073.2% from $0.68 million in the first quarter of
2020.
Net Income
Net Income was $2.4 million, an
increase of 644.7% from $0.33 million
in the first quarter of 2020.
Earnings per share
Basic and diluted net income per ordinary share was $0.21, an increase of 600% from $0.03 in first quarter of 2020.
Business Outlook
For the full year of 2021, the Company expects total revenues to
be between $80 million to
$90 million, representing an increase
of approximately 20% to 35% growth 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 which 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 8:30 AM on Wednesday, May 12, 2021, U.S. Eastern 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/8952138
A replay of the conference call may be accessed by phone at the
following numbers until May 20, 2021.
To access the replay, please reference the conference ID
8952138.
|
Phone
Number
|
International
|
+61 2
8199-0299
|
United
States
|
+1 (855)
452-5696
|
China Hong
Kong
|
+852
800963117
|
Mainland
China
|
+86
4006322162
+86
8008700205
|
A live and archived webcast of the conference call will be
available at https://edge.media-server.com/mmc/p/7wjbeogk
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.
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.
Investor Contact:
In the U.S.: Julia@blueshirtgroup.com
In China: Susie@blueshirtgroup.com
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2021 AND 2020
|
(UNAUDITED, IN
U.S. DOLLARS)
|
|
|
|
For the three
months
ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
REVENUES
|
|
$
|
24,610,894
|
|
|
$
|
9,872,067
|
|
COST OF GOODS
SOLD
|
|
|
19,506,507
|
|
|
|
7,948,119
|
|
GROSS
PROFIT
|
|
|
5,104,387
|
|
|
|
1,923,948
|
|
Selling
expenses
|
|
|
379,230
|
|
|
|
216,841
|
|
General and
administrative expenses
|
|
|
911,139
|
|
|
|
1,074,409
|
|
Research and
development expenses
|
|
|
959,545
|
|
|
|
564,298
|
|
Total operating
expenses
|
|
$
|
2,249,914
|
|
|
$
|
1,855,548
|
|
INCOME FROM
OPERATIONS
|
|
$
|
2,854,473
|
|
|
$
|
68,400
|
|
Interest
income
|
|
|
4,595
|
|
|
|
33,310
|
|
Interest
expense
|
|
|
(180,189)
|
|
|
|
(321,692)
|
|
Other
income
|
|
|
287,190
|
|
|
|
597,252
|
|
INCOME BEFORE
INCOME TAX
|
|
$
|
2,965,855
|
|
|
$
|
377,270
|
|
INCOME
TAX
|
|
|
522,616
|
|
|
|
49,187
|
|
NET
INCOME
|
|
$
|
2,443,239
|
|
|
$
|
328,083
|
|
LESS: NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
|
|
314,671
|
|
|
|
71,419
|
|
NET INCOME
ATTRIBUTABLE TO GREENLAND TECHNOLOGIES
HOLDING CORPORATION AND SUBSIDIARIES
|
|
$
|
2,128,568
|
|
|
$
|
256,664
|
|
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|
|
(258,229)
|
|
|
|
(1,305,760)
|
|
Unrealized foreign
currency translation income (loss) attributable to Greenland
technologies holding corporation and
subsidiaries
|
|
|
(189,103)
|
|
|
|
(604,994)
|
|
Unrealized foreign
currency translation income (loss) attributable to
Noncontrolling
interest
|
|
|
(69,126)
|
|
|
|
(700,766)
|
|
Comprehensive
income (loss)
|
|
|
1,939,465
|
|
|
|
(348,330)
|
|
Noncontrolling
interest
|
|
|
245,545
|
|
|
|
(629,347)
|
|
WEIGHTED AVERAGE
ORDINARY SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
10,333,968
|
|
|
|
10,009,198
|
|
NET INCOME PER
ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF
THE COMPANY:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.21
|
|
|
|
0.03
|
|
|
The accompanying
notes are an integral part of the unaudited consolidated financial
statements.
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
AS OF MARCH 31,
2021 AND DECEMBER 31, 2020
|
(IN U.S.
DOLLARS)
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,092,764
|
|
|
$
|
7,159,015
|
|
Restricted
cash
|
|
|
2,058,213
|
|
|
|
2,244,038
|
|
Notes
receivables
|
|
|
32,579,066
|
|
|
|
30,803,772
|
|
Accounts receivable,
net of allowance for doubtful accounts of $982,497 and
$986,532, respectively
|
|
|
21,067,228
|
|
|
|
12,408,548
|
|
Inventories
|
|
|
17,954,414
|
|
|
|
15,380,063
|
|
Due from related
parties-current
|
|
|
38,380,597
|
|
|
|
38,535,171
|
|
Advance to
suppliers
|
|
|
541,251
|
|
|
|
447,901
|
|
Prepayments and other
current assets
|
|
|
670,915
|
|
|
|
664,926
|
|
Total Current
Assets
|
|
$
|
121,344,448
|
|
|
$
|
107,643,434
|
|
|
|
|
|
|
|
|
|
|
Non-current
asset
|
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
19,593,515
|
|
|
|
20,135,339
|
|
Land use rights,
net
|
|
|
3,995,980
|
|
|
|
4,035,254
|
|
Other intangible
assets
|
|
|
-
|
|
|
|
-
|
|
Due from related
parties – non-current
|
|
|
-
|
|
|
|
-
|
|
Deferred tax
assets
|
|
|
157,807
|
|
|
|
158,455
|
|
Goodwill
|
|
|
3,890
|
|
|
|
3,890
|
|
Other non-current
assets
|
|
|
22,104
|
|
|
|
158,455
|
|
Total non-current
assets
|
|
$
|
23,773,296
|
|
|
$
|
24,335,303
|
|
TOTAL
ASSETS
|
|
$
|
145,117,744
|
|
|
$
|
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 MARCH 31,
2021 AND DECEMBER 31, 2020 (Continued)
|
(IN U.S.
DOLLARS)
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
17,648,585
|
|
|
$
|
18,487,356
|
|
Notes payable-bank
acceptance notes
|
|
|
30,539,541
|
|
|
|
25,889,067
|
|
Accounts
payable
|
|
|
28,530,195
|
|
|
|
22,005,260
|
|
Customer
deposits
|
|
|
385,586
|
|
|
|
366,029
|
|
Due to related
parties
|
|
|
8,088,221
|
|
|
|
9,051,119
|
|
Other current
liabilities
|
|
|
2,131,081
|
|
|
|
2,212,325
|
|
Long-term payable-
current portion
|
|
|
767,496
|
|
|
|
797,179
|
|
Total current
liabilities
|
|
$
|
88,090,705
|
|
|
$
|
78,808,335
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
Long-term
payables
|
|
|
-
|
|
|
|
166,292
|
|
Other long-term
liabilities
|
|
|
2,270,726
|
|
|
|
2,342,648
|
|
Total long-term
liabilities
|
|
$
|
2,270,726
|
|
|
$
|
2,508,940
|
|
TOTAL
LIABILITIES
|
|
$
|
90,361,431
|
|
|
$
|
81,317,275
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no
par value, 10,498,127 shares authorized; 10,498,127 and
10,225,142 shares issued and outstanding as of March
31, 2021 and December 31,
2020.
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
15,617,239
|
|
|
|
13,707,39
|
|
Statutory
reserves
|
|
|
4,517,117
|
|
|
|
4,517,117
|
|
Retained
earnings
|
|
|
28,856,900
|
|
|
|
26,728,332
|
|
Accumulated other
comprehensive loss
|
|
|
(252,028)
|
|
|
|
(62,925)
|
|
Total
shareholders' equity
|
|
$
|
48,739,228
|
|
|
$
|
44,889,922
|
|
Non-controlling
interest
|
|
|
6,017,085
|
|
|
|
5,771,540
|
|
TOTAL
EQUITY
|
|
$
|
54,756,313
|
|
|
$
|
50,661,462
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
145,117,744
|
|
|
$
|
131,978,737
|
|
|
The accompanying
notes are an integral part of the unaudited consolidated financial
statements.
|
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SOURCE Greenland Technologies Holding Corporation