EAST WINDSOR, N.J.,
Aug. 10, 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 second quarter ended June 30,
2021.
Second Quarter 2021 Financial and Operating
Highlights
- Total revenues were $28.2
million, an increase of 70.1% from $16.6 million in the second quarter of 2020.
- Gross margin was 20.2%, an increase of 2.8 percentage
points year over year.
- Net Income was $3.2
million, an increase of 114.2% from $1.5 million in the second quarter of 2020.
- Number of transmission products sold was 42,046 units,
an increase of 48.5% compared with 28,305 units in the second
quarter of 2020
CEO and CFO Remarks
Mr. Raymond Wang, CEO of
Greenland Technologies Holding Corporation, commented, "We have
once again achieved a record quarter with revenue generated of
$28.2 million representing a 70%
revenue growth and 42,046 transmissions sold representing a 49%
increase on a year over year basis. We are benefitting from
strong demand as forklifts are the ultimate necessity for clients
moving raw materials, components, and finished goods through a
global supply chain to meet accelerating growth."
Mr. Wang continued, "Our team continues to do an excellent job
supporting the growing markets with operational excellence and
innovative solutions. Our latest electric GEF-series lithium
powered forklifts offer all the competitive advantages of lithium,
with longer battery life and reduced maintenance costs, as compared
to traditional lead acid and propane forklifts. With
deliveries starting by September in the North America market we expect this to be
additive to second half of 2021 revenue and our longer-term
results. This line will be promptly followed by our industry
disruptive GEL-1800, an all electric 1.8T rated front loader, and
GEX-8000, an all electric 8.0T rated load excavator. We are
pleased with our progress to date, but even more excited about
Greenland's future, as we expand
our global business and build shareholder value."
Mr. Jing Jin, Greenland
Technologies' Chief Financial Officer commented: "In the first half
of 2021, we generated a total revenue of $52.8 million and net income of $5.6 million, doubling the revenue and tripling
net income from the previous year. Our gross margin was 20.2%
in the second quarter of 2021, an increase of 280 basis points from
the second quarter of last year. These strong financial results
demonstrate our market leading position to satisfy growing demands
for high quality transmission products and our ability to navigate
supply chain challenges. In June, we successfully raised
$7 million for the strategic
execution of new electric vehicle products launched in the U.S.
With strong cash flow and a track record for delivering excellent
revenue results, we are well positioned to lead in commercial
vehicle electrification."
Recent Developments and Strategic Highlights:
- Debut of New GEF-Series Electric Lithium Forklifts
In
July 2021, Greenland launched its brand new GEF-series EV
forklifts, one of the industry's first lithium-powered EV forklift
trucks. The GEF-series is designed with variously rated load
capabilities and suited for a wide spectrum of applications,
including logistics, warehousing, manufacturing, etc. Deliveries of
this innovative series will commence in September 2021 in the North American market.
- Completion of $7 Million
Underwritten Public Offering
In June
2021, Greenland closed the
public offering of 857,844 ordinary shares and raised $7 million for strategic execution in
operations
- Forming Major Strategic Partnership with Shandong Zhongcha
Heavy Industry Machinery
In June
2021, Greenland entered a
major strategic partnership with Shandong Zhongcha Heavy Industry
Machinery Co. ("Shandong"), a
multinational heavy machinery and automotive manufacturing company,
to boost revenue and strengthen leadership position as a first
mover.
The companies will jointly launch a lithium-powered forklift, which
features Greenland's new
integrated drivetrain system and will be available for sale in the
U.S. by Greenland. They will also
combine R&D resources to develop the next stage of
lithium-powered forklifts to ensure market leadership for both
maintains in the long term.
- Launch of EV Pre-booking Service
On June 15, 2021, Greenland announced the launch of an online EV
pre-booking service for its new GEL-1800 1.8-ton electric loader
and its GEX-8000 electric excavator. Deliveries of the two electric
industrial vehicle models are expected to start in the fourth
quarter of 2021. Customers can reserve an industrial EV with a
$250 refundable deposit.
- Showcasing Greenland's First Electric Industrial Vehicle at
Hannover Messe 2021 Digital Expo
In April 2021, Greenland showcased its new GEL-1800 1.8-ton
electric loader at the Hannover Messe 2021 Digital Expo from
April 12-16 to allow attendees to
have a first look at the sleek design and production specifications
of the Company's first industrial EV. The vehicle is designed for a
wide range of applications, including construction, mining,
farming, industrial, etc.
Second Quarter 2021 Financial Results
Revenues
Total revenues were $28.2 million,
an increase of approximately 70.1% year-over-year. The increase was
primarily due to the significant increase in our sales volume
resulting from the continuously growing market demand and the
ability to boost supplies while some peers met challenges in
handling material shortage and were unable to deliver. The number
of transmission products sold increased 48.5% to 42,046 units from
28,305 units in the second quarter of 2020.
Costs of Goods Sold
Costs of goods sold were $22.5
million, an increase of 64.3% from $13.7 million in the second 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 $5.7 million, an
increase of 98.0% from $2.9 million
in the second quarter of 2020.
Gross margin was 20.2%, up 2.8 percentage points from 17.4% in
the second quarter of 2020. The increase was primarily due to a
shift in the product mix towards the higher value and more
sophisticated products such as hydraulic transmission
products.
Operating expenses
Total operating expenses were $2.3
million, up 84.1% from $1.2
million in the second quarter of 2020. Operating expense as
a percentage of total revenues was 8.0%, an increase of 0.6
percentage points compared to 7.4% in the second quarter of 2020.
The increase in operating expenses was primarily due to the
increase in sales and labor costs year-over-year.
- Selling expenses were $0.50
million, an increase of 62.7% from $0.30 million in the second quarter of 2020. The
increase was mainly due to the increase in the unit price of
transportation expenses.
- General and administration expenses were $0.75 million, an increase of 69.6% from
$0.44 million in the second quarter
of 2020. The increase was primarily due to the expiration of the
Chinese government's policy related to the Covid-19 relief.
- Research and development expenses were $1.0 million, an increase of 111.4% from
$0.48 million in the second quarter
of 2020. The increase was mainly due to the increase in the R&D
investment in higher value and more sophisticated products and
electrification products.
Income from operations
Income from operations was $3.5
million, an increase of 108.2% from $1.7 million in the second quarter of
2020.
Net Income
Net Income was $3.2 million, an
increase of 114.2% from $1.5 million
in the second quarter of 2020.
Earnings per share
Basic and diluted net income per ordinary share was $0.26, an increase of 100.0% from $0.13 in second quarter of 2020.
Business Outlook
For the full year of 2021, the Company expects total revenues to
be between $90 million to
$100 million, as compared to the
previous guidance range of $80
million to $90 million. The
new revenue guidance range represents 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 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 8:00 AM on Tuesday, August 10, 2021, U.S. Eastern Time
(8:00 PM on August 10, 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/2837618
A replay of the conference call may be accessed by phone at the
following numbers until August 18,
2021. To access the replay, please reference the conference
ID 2837618.
|
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 SIX MONTHS ENDED JUNE 30, 2021 AND
2020
(UNAUDITED, IN
U.S. DOLLARS)
|
|
|
|
For the three
months ended
June 30,
|
|
For the six
months
ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
REVENUES
|
|
$
|
28,204,307
|
|
$
|
16,576,345
|
|
$
|
52,815,201
|
|
$
|
26,448,412
|
COST OF GOODS
SOLD
|
|
|
22,499,138
|
|
|
13,694,235
|
|
|
42,005,645
|
|
|
21,642,354
|
GROSS
PROFIT
|
|
|
5,705,169
|
|
|
2,882,110
|
|
|
10,809,556
|
|
|
4,806,058
|
Selling
expenses
|
|
|
495,462
|
|
|
304,535
|
|
|
874,692
|
|
|
521,376
|
General and
administrative expenses
|
|
|
752,212
|
|
|
443,476
|
|
|
1,663,351
|
|
|
1,517,885
|
Research and
development expenses
|
|
|
1,005,296
|
|
|
475,649
|
|
|
1,964,841
|
|
|
1,039,947
|
Total operating
expenses
|
|
$
|
2,252,970
|
|
$
|
1,223,660
|
|
$
|
4,502,884
|
|
$
|
3,079,208
|
INCOME FROM
OPERATIONS
|
|
$
|
3,452,199
|
|
$
|
1,658,450
|
|
$
|
6,306,672
|
|
$
|
1,726,850
|
Interest
income
|
|
|
4,833
|
|
|
42,521
|
|
|
9,428
|
|
|
75,831
|
Interest
expense
|
|
|
(221,664)
|
|
|
(389,072)
|
|
|
(401,853)
|
|
|
(710,764)
|
Other
income
|
|
|
311,114
|
|
|
255,580
|
|
|
598,090
|
|
|
852,832
|
INCOME BEFORE
INCOME TAX
|
|
$
|
3,546,482
|
|
$
|
1,567,479
|
|
$
|
6,512,337
|
|
$
|
1,944,749
|
INCOME
TAX
|
|
|
394,159
|
|
|
95,971
|
|
|
916,775
|
|
|
145,158
|
NET
INCOME
|
|
$
|
3,152,323
|
|
$
|
1,471,508
|
|
$
|
5,595,562
|
|
$
|
1,799,591
|
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING INTEREST
|
|
|
371,570
|
|
|
212,411
|
|
|
686,241
|
|
|
283,830
|
NET INCOME
ATTRIBUTABLE TO
GREENLAND TECHNOLOGIES HOLDING
CORPORATION AND SUBSIDIARIES
|
|
$
|
2,780,753
|
|
$
|
1,259,097
|
|
$
|
4,909,321
|
|
$
|
1,515,761
|
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|
|
833,963
|
|
|
58,835
|
|
|
575,734
|
|
|
(1,246,925)
|
Unrealized foreign
currency translation income (loss)
attributable to Greenland technologies holding
corporation and subsidiaries
|
|
|
591,484
|
|
|
45,180
|
|
|
402,381
|
|
|
(559,814)
|
Unrealized foreign
currency translation income (loss)
attributable to Noncontrolling interest
|
|
|
242,479
|
|
|
13,655
|
|
|
173,353
|
|
|
(687,111)
|
Comprehensive
income
|
|
|
3,372,237
|
|
|
1,304,277
|
|
|
5,311,702
|
|
|
955,947
|
Noncontrolling
interest
|
|
|
614,049
|
|
|
226,066
|
|
|
859,594
|
|
|
(403,281)
|
WEIGHTED AVERAGE
ORDINARY SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
10,814,479
|
|
|
10,021,142
|
|
|
10,574,223
|
|
|
10,015,203
|
NET INCOME PER
ORDINARY SHARE
ATTRIBUTABLE TO OWNERS OF THE
COMPANY:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.26
|
|
|
0.13
|
|
|
0.46
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of the unaudited consolidated financial
statements.
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF JUNE 30,
2021 AND DECEMBER 31, 2020
(IN U.S.
DOLLARS)
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,756,968
|
|
$
|
7,159,015
|
|
Restricted
cash
|
|
|
9,767,210
|
|
|
2,244,038
|
|
Notes
receivables
|
|
|
33,113,729
|
|
|
30,803,772
|
|
Accounts receivable,
net of allowance for doubtful accounts of $996,984 and
$986,532, respectively
|
|
|
20,519,818
|
|
|
12,408,548
|
|
Inventories
|
|
|
17,731,415
|
|
|
15,380,063
|
|
Due from related
parties-current
|
|
|
38,946,503
|
|
|
38,535,171
|
|
Advance to
suppliers
|
|
|
732,019
|
|
|
447,901
|
|
Prepayments and other
current assets
|
|
|
542,882
|
|
|
664,926
|
|
Total Current
Assets
|
|
$
|
132,110,544
|
|
$
|
107,643,434
|
|
|
|
|
|
|
|
|
|
Non-current
asset
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
19,534,056
|
|
|
20,135,339
|
|
Land use rights,
net
|
|
|
4,030,352
|
|
|
4,035,254
|
|
Other intangible
assets
|
|
|
-
|
|
|
-
|
|
Due from related
parties – non-current
|
|
|
-
|
|
|
-
|
|
Deferred tax
assets
|
|
|
158,698
|
|
|
158,455
|
|
Goodwill
|
|
|
3,890
|
|
|
3,890
|
|
Other non-current
assets
|
|
|
41,860
|
|
|
158,455
|
|
Total non-current
assets
|
|
$
|
23,768,856
|
|
$
|
24,335,303
|
|
TOTAL
ASSETS
|
|
$
|
155,879,400
|
|
$
|
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 JUNE 30,
2021 AND DECEMBER 31, 2020 (Continued)
(IN U.S.
DOLLARS)
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
11,899,452
|
|
$
|
18,487,356
|
|
Notes payable-bank
acceptance notes
|
|
|
38,202,952
|
|
|
25,889,067
|
|
Accounts
payable
|
|
|
28,300,234
|
|
|
22,005,260
|
|
Customer
deposits
|
|
|
163,435
|
|
|
366,029
|
|
Due to related
parties
|
|
|
7,904,430
|
|
|
9,051,119
|
|
Other current
liabilities
|
|
|
1,475,090
|
|
|
2,212,325
|
|
Long-term payable-
current portion
|
|
|
584,003
|
|
|
797,179
|
|
Total current
liabilities
|
|
$
|
88,529,596
|
|
$
|
78,808,335
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Long-term
payables
|
|
|
-
|
|
|
166,292
|
|
Other long-term
liabilities
|
|
|
2,240,949
|
|
|
2,342,648
|
|
Total long-term
liabilities
|
|
$
|
2,240,949
|
|
$
|
2,508,940
|
|
TOTAL
LIABILITIES
|
|
$
|
90,770,545
|
|
$
|
81,317,275
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Ordinary shares, no
par value, 11,448,327 shares authorized; 11,448,327 and
10,225,142 shares issued and outstanding as of June
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
|
|
|
32,312,439
|
|
|
26,728,332
|
|
Accumulated other
comprehensive loss
|
|
|
339,456
|
|
|
(62,925)
|
|
Total
shareholders' equity
|
|
$
|
58,477,721
|
|
$
|
44,889,922
|
|
Non-controlling
interest
|
|
|
6,631,134
|
|
|
5,771,540
|
|
TOTAL
EQUITY
|
|
$
|
65,108,855
|
|
$
|
50,661,462
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
155,879,400
|
|
$
|
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