- Company Drives Year-over-Year Revenue Growth and
Gross Margin Expansion
- Strengthens Balance Sheet with 90% YoY Increase in
Cash and Cash Equivalents
- Company Optimistic about Outlook, with Growth Led
by Key Strategic Initiatives Including its Winning Port of
Baltimore Bid, and Newly Launched HEVI Approved Service Provider
Network Program
EAST
WINDSOR, N.J., Nov. 20,
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 third
quarter and nine month period ended September 30, 2023.
Raymond Wang, Chief Executive
Officer of Greenland Technologies, said, "We have made considerable
progress in our business expansion over the past year and are very
optimistic in our outlook based on several catalysts. In our
advancement, propelled by our expertise in catering to the
expanding global material handling sector through groundbreaking
products, our commitment to research and development remains a
driving force for growth. We are extending our innovative product
offerings into underserved market segments, enabling Greenland to provide cutting-edge products to
our customers and achieve higher profit margins for the
business."
"At the same time, we continue to make significant progress with
our HEVI brand of electric industrial heavy equipment. We continue
to pioneer the industry of sustainable heavy machinery through
inroads with supportive states, which are incentivizing both
production and customer adoption. Our efforts are shining a light
on the environmental benefits of electrification of this important
industry and have fueled nearly 20 states into offering incentives
specifically directed to the electrification of off-highway heavy
equipment. We recently announced that HEVI won a bid from
Maryland's Port of Baltimore, under which Greenland will help facilitate the Port of
Baltimore's ambitious plan to
electrify port equipment, including planned sales of our new
GEL-5000 all-electric front loader. This is the first step
towards market penetration with many more to come as the industry
becomes more comfortable and educated on the compelling advantages
of our product offerings. As the first company in the U.S. to
commercially offer electric off-highway heavy equipment, we will
continue to develop and explore the right strategies to penetrate
the market and support cleaner job sites for our local
communities."
Jing Jin, Chief Financial Officer
of Greenland, commented, "We
achieved revenue of approximately $67.6
million for the first nine months of 2023, which represents
only a single-digit decrease year over year, despite the continued
adverse impact on our business of logistical and supply chain
challenges. Given the challenging operating environment, we
continue to focus on improving efficiencies and reducing costs
wherever possible. We also continue to execute on our product mix
shift towards higher value and more sophisticated products, which
helped drive an expansion in gross margin to 27.7% from 22.3% for
the first nine months of 2023 compared to the first nine months of
2022. Our balance sheet remains strong, with a 90% year over year
increase in cash and cash equivalents after paying off an
$8.81 million bank loan, and we have
a $21 million accounts receivable
balance to be collected over the coming quarters."
Financial Highlights
Greenland's revenue was
approximately $21.84 million for the
three months ended September 30,
2023, representing an increase of approximately $0.05 million, or 0.2%, as compared to that of
approximately $21.79 million for the
three months ended September 30,
2022. The increase in revenue YoY was primarily an increase
in the Company's sales volume, driven by increasing market
demand.
Greenland's gross profit was
approximately $6.27 million for the
three months ended September 30,
2023, representing an increase by approximately $1.46 million, or 30.3%, as compared to that of
approximately $4.81 million for the
three months ended September 30,
2022.
For the three months ended September 30,
2023 and 2022, Greenland's
gross margins were approximately 28.7% and 22.1%%, respectively.
The increase in gross margin in the three months ended September 30, 2023 compared to same time frame in
2022 was primarily due to a shift in Greenland's product mix towards higher value
and more sophisticated products, such as hydraulic transmission
products.
Cost of goods sold was approximately $15.57 million for the three months ended
September 30, 2023, representing a
decrease by approximately $1.40
million, or 8.3%, as compared to that of approximately
$16.97 million for the three months
ended September 30, 2022. Cost
of goods sold decreased due to the decrease in production cost.
Total operating expenses were $3.46
million, an increase of 26.5% from $2.74 million in the third 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 for the three months ended September 30, 2023, was approximately
$2.81 million, representing an
increase of approximately $0.74
million, as compared to that of approximately $2.07 million for Q3 2022.
Net income was approximately $0.19
million for the three months ended September 30, 2023, representing a decrease of
approximately $1.91 million, as
compared to that of approximately $2.10
million for the three months ended September 30, 2022. Basic and diluted net loss
per ordinary share were both $0.07,
compared to net income of $0.10 per
basic and diluted ordinary share in the year ago period.
For the first nine months of 2023, revenue was approximately
$67.56 million, as compared to
$71.69 million in the year ago
period. The decrease in revenue was primarily due to logistical and
supply chain challenges due to the initial wave of COVID-19 cases
following the lifting of China's
zero COVID policies in the first quarter of calendar year
2023.
For the first nine months of 2023, Greenland sold an aggregate of 112,414 sets of
transmission products, as compared to 102,144 sets for the same
period in 2022.
Net income was approximately $5.59
million for the first nine months of 2023, as compared to
$7.39 million in the year ago period.
Basic and diluted net income per ordinary share were both
$0.22, as compared to $0.39 for the same period the year prior.
Cash equivalents refers to all highly liquid investments
purchased with original maturity of three months or less. As of
September 30, 2023, Greenland had approximately $21.54 million of cash and cash equivalents,
representing an increase of approximately $5.25 million, or 32.21%, as compared to that of
approximately $16.30 million as of
December 31, 2022. The increase of
cash was mainly attributable to the decrease of short-term
investment, as compared to that as of December 31, 2022.
Restricted cash represents the amount held by a bank as security
for bank acceptance notes and therefore is not available for use
until the bank acceptance notes are fulfilled or expired, which
typically takes less than twelve months. As of September 30, 2023, Greenland had approximately $2.80 million of restricted cash, representing a
decrease of approximately $0.63
million, or 18.34%, as compared to that of approximately
$3.43 million as of December 31, 2022. The decrease of restricted
cash was due to a decrease of mortgaged assets.
As of September 30, 2023,
Greenland had an approximately
$21 million to be collected accounts
receivables balance, reflecting slower payment at certain customers
given ongoing challenging market conditions.
Third Quarter 2023 Results Conference Call and
Webcast
Greenland Technologies management will host an earnings
conference call at 8:00 AM on Monday,
November 20, 2023, U.S. Eastern Time (9:00 PM on November 20,
2023, Beijing/Hong Kong
Time). Investors and analysts can register to participate and
will be sent a dedicated dial-in phone number by using the
following registration URL:
https://register.vevent.com/register/BId34da1aff4fb4551bce99d2a8a3f2f9b
An archived webcast will also be available on the investor
relations section of Greenland's
website at https://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.
For more information, please contact:
Greenland
Technologies
Josh
Centanni
Phone:
+1 888-827-4832
Email:
jcentanni@gtec-tech.com
|
Global IR
Partners
David
Pasquale
Phone: +1
914-337-8801
Email:
GTEC@globalirpartners.com
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
AS OF
SEPTEMBER 30, 2023 AND DECEMBER 31,
2022
|
(IN U.S.
DOLLARS)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
21,543,963
|
|
|
$
|
16,295,695
|
|
Restricted
cash
|
|
|
2,803,756
|
|
|
|
3,433,361
|
|
Short Term
Investment
|
|
|
4,393,777
|
|
|
|
7,800,723
|
|
Notes
receivable
|
|
|
32,403,217
|
|
|
|
28,748,879
|
|
Accounts receivable,
net of allowance for doubtful accounts of $1,093,826
and
$762,325, respectively
|
|
|
20,826,354
|
|
|
|
14,337,760
|
|
Inventories
|
|
|
20,498,166
|
|
|
|
23,096,382
|
|
Due from related
parties-current
|
|
|
34,684,542
|
|
|
|
36,669,907
|
|
Advance to
suppliers
|
|
|
1,687,939
|
|
|
|
412,766
|
|
Prepayments and other
current assets
|
|
|
90,732
|
|
|
|
1,568,687
|
|
Total Current
Assets
|
|
$
|
138,932,446
|
|
|
$
|
132,364,160
|
|
|
|
|
|
|
|
|
|
|
Non-current
asset
|
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
13,730,136
|
|
|
|
15,585,214
|
|
Land use rights,
net
|
|
|
3,376,901
|
|
|
|
3,639,067
|
|
Other intangible
assets
|
|
|
208,154
|
|
|
|
147,465
|
|
Long term
investment
|
|
|
300,000
|
|
|
|
250,000
|
|
Deferred tax
assets
|
|
|
279,085
|
|
|
|
219,207
|
|
Operating lease
right-of-use assets
|
|
|
2,253,162
|
|
|
|
2,627,110
|
|
Other non-current
assets
|
|
|
253,760
|
|
|
|
283,118
|
|
Total non-current
assets
|
|
$
|
20,401,198
|
|
|
$
|
22,751,181
|
|
TOTAL
ASSETS
|
|
$
|
159,333,644
|
|
|
$
|
155,115,341
|
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
AS OF
SEPTEMBER 30, 2023 AND DECEMBER 31, 2022
(Continued)
|
|
(IN U.S.
DOLLARS)
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
6,524,123
|
|
|
$
|
8,986,255
|
|
Notes payable-bank
acceptance notes
|
|
|
30,713,480
|
|
|
|
28,272,472
|
|
Accounts
payable
|
|
|
25,731,835
|
|
|
|
24,817,165
|
|
Taxes
payables
|
|
|
67,776
|
|
|
|
192,478
|
|
Customer
deposits
|
|
|
303,122
|
|
|
|
227,432
|
|
Due to related
parties
|
|
|
4,080,627
|
|
|
|
1,693,315
|
|
Other current
liabilities
|
|
|
2,654,935
|
|
|
|
1,547,390
|
|
Current portion of
operating lease liabilities
|
|
|
485,207
|
|
|
|
472,182
|
|
Total current
liabilities
|
|
$
|
70,561,105
|
|
|
$
|
66,208,689
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
Long term operating
lease liabilities
|
|
|
1,807,408
|
|
|
|
2,176,130
|
|
Other long-term
liabilities
|
|
|
1,577,010
|
|
|
|
1,812,759
|
|
Total long-term
liabilities
|
|
$
|
3,384,418
|
|
|
$
|
3,988,889
|
|
TOTAL
LIABILITIES
|
|
$
|
73,945,523
|
|
|
$
|
70,197,578
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no par
value, unlimited shares authorized; 13,594,530 and
12,978,504 shares issued and outstanding as of September 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
|
|
|
40,186,954
|
|
|
|
37,228,261
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(3,552,846)
|
|
|
|
(2,831,419)
|
|
Total shareholders'
equity
|
|
$
|
73,432,366
|
|
|
$
|
71,195,100
|
|
Non-controlling
interest
|
|
|
11,955,755
|
|
|
|
13,722,663
|
|
TOTAL
EQUITY
|
|
$
|
85,388,121
|
|
|
$
|
84,917,763
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
159,333,644
|
|
|
$
|
155,115,341
|
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE
AND NINE MONTHS ENDED SEPTEMBER
30, 2023 AND 2022
|
(UNAUDITED, IN U.S.
DOLLARS)
|
|
|
|
|
For the three
months
ended September 30,
|
|
|
For the nine
months
ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
REVENUES
|
|
$
|
21,836,761
|
|
|
$
|
21,786,862
|
|
|
$
|
67,555,570
|
|
|
$
|
71,696,324
|
|
COST OF GOODS
SOLD
|
|
|
15,568,224
|
|
|
|
16,974,566
|
|
|
|
48,835,766
|
|
|
|
55,676,893
|
|
GROSS
PROFIT
|
|
|
6,268,537
|
|
|
|
4,812,296
|
|
|
|
18,719,804
|
|
|
|
16,019,431
|
|
Selling
expenses
|
|
|
606,649
|
|
|
|
521,865
|
|
|
|
1,568,174
|
|
|
|
1,679,600
|
|
General and
administrative expenses
|
|
|
1,610,100
|
|
|
|
1,192,210
|
|
|
|
4,771,568
|
|
|
|
3,716,590
|
|
Research and
development expenses
|
|
|
1,245,646
|
|
|
|
1,023,443
|
|
|
|
3,790,931
|
|
|
|
2,968,572
|
|
Total operating
expenses
|
|
$
|
3,462,395
|
|
|
$
|
2,737,518
|
|
|
$
|
10,130,673
|
|
|
$
|
8,364,762
|
|
INCOME FROM
OPERATIONS
|
|
$
|
2,806,142
|
|
|
$
|
2,074,778
|
|
|
$
|
8,589,131
|
|
|
$
|
7,654,669
|
|
Interest
income
|
|
|
4,242
|
|
|
|
12,790
|
|
|
|
79,318
|
|
|
|
35,239
|
|
Interest
expense
|
|
|
(72,952)
|
|
|
|
(125,981)
|
|
|
|
(218,949)
|
|
|
|
(322,641)
|
|
Loss on disposal of
property and equipment
|
|
|
(204)
|
|
|
|
(301)
|
|
|
|
(443)
|
|
|
|
(695)
|
|
Other
income(expense)
|
|
|
(1,663,423)
|
|
|
|
655,838
|
|
|
|
(1,374,809)
|
|
|
|
1,418,580
|
|
INCOME BEFORE INCOME
TAX
|
|
$
|
1,073,805
|
|
|
$
|
2,617,124
|
|
|
$
|
7,074,248
|
|
|
$
|
8,785,152
|
|
INCOME
TAX
|
|
|
878,922
|
|
|
|
518,931
|
|
|
|
1,480,595
|
|
|
|
1,392,735
|
|
NET
INCOME
|
|
$
|
194,883
|
|
|
$
|
2,098,193
|
|
|
$
|
5,593,653
|
|
|
$
|
7,392,417
|
|
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING INTEREST
|
|
|
1,082,303
|
|
|
|
820,229
|
|
|
|
2,634,960
|
|
|
|
2,840,137
|
|
NET INCOME(LOSS)
ATTRIBUTABLE TO
GREENLAND TECHNOLOGIES HOLDING
CORPORATION AND SUBSIDIARIES
|
|
$
|
(887,420)
|
|
|
$
|
1,277,964
|
|
|
$
|
2,958,693
|
|
|
$
|
4,552,280
|
|
OTHER COMPREHENSIVE
INCOME (LOSS):
|
|
|
3,756,643
|
|
|
|
(4,441,025)
|
|
|
|
(517,156)
|
|
|
|
(8,142,567)
|
|
Unrealized foreign
currency translation income (loss)
attributable to Greenland Technologies Holding
Corporation and subsidiaries
|
|
|
2,251,583
|
|
|
|
(2,974,517)
|
|
|
|
(721,427)
|
|
|
|
(5,446,475)
|
|
Unrealized foreign
currency translation income (loss)
attributable to Noncontrolling interest
|
|
|
1,505,060
|
|
|
|
(1,466,508)
|
|
|
|
204,271
|
|
|
|
(2,696,092)
|
|
Comprehensive income
(loss) attributable to Greenland
Technologies Holding Corporation and
subsidiaries
|
|
|
1,364,163
|
|
|
|
(1,696,553)
|
|
|
|
2,237,266
|
|
|
|
(894,195)
|
|
Noncontrolling
interest
|
|
|
2,587,363
|
|
|
|
(646,279)
|
|
|
|
2,839,231
|
|
|
|
144,045
|
|
WEIGHTED AVERAGE
ORDINARY SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
13,594,530
|
|
|
|
12,222,387
|
|
|
|
13,307,954
|
|
|
|
11,628,243
|
|
NET INCOME PER
ORDINARY SHARE
ATTRIBUTABLE TO OWNERS OF THE
COMPANY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
(0.07)
|
|
|
|
0.10
|
|
|
|
0.22
|
|
|
|
0.39
|
|
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SOURCE Greenland Technologies Holding Corporation