PR Newswire | Nov 23, 2020 08:01AM EST

11/23 07:00 CST

Greenland Technologies Holding Corporation Reports Third Quarter 2020 Results HOWELL, N.J., Nov. 23, 2020

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 For the nine months ended September 30, 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 252,068 86,346 535,898 420,650 NONCONTROLLING INTEREST

NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION $ 207,933 $ 155,684 $ 1,723,694 $ 2,827,632 AND SUBSIDIARIES

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 2,863,032 (1,662,531) 2,303,218 (1,740,796) corporation and subsidiaries

Unrealized foreign currency translation income attributable 794,160 48,684 107,049 14,894 to Noncontrolling interest

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, 20,018,092 16,156,692 respectively

Accounts receivable, net of allowance for doubtful accounts of $1,183,770 and 15,693,614 11,971,889 $1,037,797, respectively

Inventories, net of provision for slow moving inventory of $76,922 and$134,535, 12,573,915 9,972,877 respectively

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

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SOURCE Greenland Technologies Holding Corporation