–3Q22 Net Income Increases 67% Compared to 3Q21
EAST WINDSOR, N.J., Nov. 9, 2022 /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 ended September 30, 2022.
Mr. Raymond Wang, Chief Executive Officer of Greenland Technologies Holding Corporation, commented, “While we are not immune to the ongoing global supply chain challenges, inflationary pressures and lockdowns in China, we made significant progress in the areas that will drive our long-term growth and build value for shareholders. For example, we are firmly on track with our capacity plans for the U.S., and we are seeing an improvement in the supply chain with lower freight costs and speed. We are also benefitting from the full support of Maryland’s local and state level officials after formally opening our new Baltimore facility. They share in our leadership vision of the opportunities for electrification of industrial vehicles and the positive economic impact from job creation, related commerce and positives for the environment. This represents a significant opportunity for Greenland and the communities we operate in.” “We are also pleased with the additional innovation and further development with our strategic partners of new features for our vehicles that not only differentiate our HEVI brand but add premium value for our customers, including tracking now available with vehicle purchase. This is an essential selling point as operators laser focus on fleet ROI and asset utilization. Overall, we continue to benefit from several Greenland-specific catalysts. We are entering Q4 with a solid backlog and expect our results to more accurately reflect our business fundamentals as we move through 2023 and current headwinds become tailwinds. Longer-term we continue to make steady progress toward our ambitious goals, including the ramping our new U.S. assembly facility. This will serve as a powerful, high visibility showcase for our vehicles, which we expect will drive sales by helping us convert customer interest into orders when they see our innovative vehicles in person.” Mr. Jing Jin, Chief Financial Officer of Greenland, commented: “Our third quarter revenue was negatively impacted by the stronger dollar. Excluding FX impact, our revenue in Chinese RMB actually grew 2% year-over-year. During Q3, we also improved our operating efficiency by streamlining and simplifying our product lines, which led to a 10% decrease in our operating expenses and contributed to our 67% increase in net income. Looking ahead, we will continue to manage operating expenses closely as we shift our focus towards ramping up HEVI production capacity and deployment capabilities.” Recent Developments and Strategic Highlights: Third Quarter 2022 Financial Results Total revenue was $21.8 million, compared with $23.1 million in the third quarter of 2021, primarily due to the impact of unfavorable foreign exchange. On an RMB basis, total revenues increased by approximately 2% from the third quarter of 2021. The number of transmission products sold was 31,303 units, up 1% from 31,050 units in the third quarter of 2021. Costs of goods sold were $17.0 million, a decrease of 6% from $18.0 million in the third quarter of 2021, primarily due to the impact of foreign exchange. Gross profit was $4.8 million, compared with $5.1 million in the third quarter of 2021, primarily due to the impact of unfavorable foreign exchange. Gross margin was 22.1%, on par with the third quarter of 2021. Total operating expenses were $2.7 million, a decrease of 10% from $3.0 million in the third quarter of 2021. Operating expenses as a percentage of total revenues was 12.6%, down 60 basis points from 13.2% in the third quarter of 2021. The decrease in operating expenses was primarily due to improved operating efficiency. Income from operations was $2.07 million, an increase of 1% from $2.05 million in the third quarter of 2021. Net income was $2.1 million, an increase of 67% from $1.3 million in the third quarter of 2021, primarily due to improved operating efficiency, increase in grant income and lower effective tax rate. Basic and diluted net income per ordinary share were both $0.1, compared with $0.09 in the third quarter of 2021. Conference Call Greenland Technologies management will host an earnings conference call at 8:00 AM on Wednesday, November 9, 2022, U.S. Eastern Time (9:00 PM on November 9, 2022, Beijing/Hong Kong Time). Participant Registration Investors and analysts interested in participating in Greenland’s third quarter 2022 earnings call need to register in advance using the URL provided below. Conference access information will be provided upon registration. Participant Online Pre-Registration: https://register.vevent.com/register/BIe16b8fc2914c4c76ba13993c76c2a903 A live and archived webcast will also be available on the investor relations section of Greenland’s website 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. Information on the Company’s clean industrial heavy equipment division can be found at HEVI. 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. GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 (UNAUDITED, IN U.S. DOLLARS) For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 REVENUES $ 21,786,862 $ 23,084,793 $ 71,696,324 $ 75,899,994 COST OF GOODS SOLD 16,974,566 17,987,363 55,676,893 59,993,008 GROSS PROFIT 4,812,296 5,097,430 16,019,431 15,906,986 Selling expenses 521,865 522,770 1,679,600 1,397,462 General and administrative expenses 1,192,210 1,150,769 3,716,590 2,814,120 Research and development expenses 1,023,443 1,372,215 2,968,572 3,337,056 Total operating expenses $ 2,737,518 $ 3,045,754 $ 8,364,762 $ 7,548,638 INCOME FROM OPERATIONS $ 2,074,778 $ 2,051,676 $ 7,654,669 $ 8,358,348 Interest income 12,790 4,737 35,239 14,165 Interest expense (125,981) (106,506) (322,641) (508,359) Loss on disposal of property and equipment (301) – (695) (959) Other income 655,838 231,466 1,418,580 830,515 INCOME BEFORE INCOME TAX $ 2,617,124 $ 2,181,373 $ 8,785,152 $ 8,693,710 INCOME TAX 518,931 927,844 1,392,735 1,844,619 NET INCOME $ 2,098,193 $ 1,253,529 $ 7,392,417 $ 6,849,091 LESS: NET INCOME ATTRIBUTABLE TO 820,229 225,181 2,840,137 911,422 NET INCOME ATTRIBUTABLE TO GREENLAND $ 1,277,964 $ 1,028,348 $ 4,552,280 $ 5,937,669 OTHER COMPREHENSIVE INCOME (LOSS): (4,552,121) (605,515) (8,253,663) (29,781) Unrealized foreign currency translation income (loss) (2,974,517) (433,694) (5,446,475) (31,313) Unrealized foreign currency translation income (loss) (1,577,604) (171,821) (2,807,188) 1,532 Comprehensive income (loss) (1,696,553) 594,654 (894,195) 5,906,356 Noncontrolling interest (757,375) 53,360 32,949 912,954 WEIGHTED AVERAGE ORDINARY SHARES Basic and diluted 12,222,387 11,329,530 11,628,243 10,715,132 NET INCOME PER ORDINARY SHARE Basic and diluted 0.10 0.09 0.39 0.55 GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021 (UNAUDITED, IN U.S. DOLLARS) September 30, December 31, 2022 2021 ASSETS Current assets Cash and cash equivalents $ 11,306,600 $ 11,062,590 Restricted cash 3,720,931 6,738,302 Short Term Investment 12,243,140 2,105,938 Notes receivable 31,606,518 37,551,121 Accounts receivable, net of allowance for doubtful accounts of $774,452 and 18,344,356 15,915,002 Inventories 21,884,848 25,803,474 Due from related parties-current 35,462,308 39,679,565 Advance to suppliers 676,823 434,893 Prepayments and other current assets 96,323 14,518 Total Current Assets $ 135,341,847 $ 139,305,403 Non-current asset Property, plant, equipment and construction in progress, net 15,503,755 18,957,553 Land use rights, net 3,550,039 4,035,198 Other intangible assets 157,153 – Deferred tax assets 126,872 141,623 Goodwill 3,890 3,890 Operating lease right-of-use assets 2,748,910 80,682 Other non-current assets 242,866 44,093 Total non-current assets $ 22,333,485 $ 23,263,039 TOTAL ASSETS $ 157,675,332 $ 162,568,442 September 30, December 31, 2022 2021 Current Liabilities Short-term bank loans $ 8,715,822 $ 8,760,945 Notes payable-bank acceptance notes 33,716,344 42,093,061 Accounts payable 23,954,824 29,064,132 Taxes payables – 108,058 Customer deposits 196,125 387,919 Due to related parties 1,594,227 3,619,459 Other current liabilities 1,622,362 1,198,427 Current portion of operating lease liabilities 462,365 33,308 Long-term payables – current – 197,915 Total current liabilities $ 70,262,069 $ 85,463,224 Long-term liabilities Long-term payables – non-current – – Long term operating lease liabilities 2,293,844 47,614 Other long-term liabilities 1,828,340 2,212,938 Total long-term liabilities $ 4,122,184 $ 2,260,552 TOTAL LIABILITIES $ 74,384,253 $ 87,723,776 COMMITMENTS AND CONTINGENCIES EQUITY Ordinary shares, no par value, unlimited shares authorized; 12,579,530 and – – Additional paid-in capital 32,955,927 23,759,364 Statutory reserves 3,842,331 3,842,331 Retained earnings 38,220,976 33,668,696 Accumulated other comprehensive income (loss) (4,432,076) 1,014,399 Total shareholders’ equity $ 70,587,158 $ 62,284,790 Non-controlling interest 12,703,921 12,559,876 TOTAL EQUITY $ 83,291,079 $ 74,844,666 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 157,675,332 $ 162,568,442 SOURCE Greenland Technologies Holding Corporation
NONCONTROLLING INTEREST
TECHNOLOGIES HOLDING CORPORATION
AND SUBSIDIARIES
attributable to Greenland Technologies Holding
Corporation and subsidiaries
attributable to Noncontrolling interest
OUTSTANDING:
ATTRIBUTABLE TO OWNERS OF THE
COMPANY:
$859,319, respectively
11,329,530 shares issued and outstanding as of September 30, 2022 and
December 31, 2021.
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