- 19% Increase in 1Q22 Revenue to Record $29.3 Million Compared to 1Q21
- 19% Increase in 1Q22 Net Income to $2.9 Million Compared to 1Q21
- Cash Balance Rises 30% to $13.2
Million
EAST WINDSOR, N.J.,
May 16, 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 first quarter ended March 31,
2022.
First Quarter 2022 Financial and Operating Highlights
- Total revenues were $29.3
million, an increase of 19% from $24.6 million in the same period of 2021.
- Gross margin was 21.7%, an increase of 100 basis points
year over year.
- Net Income was $2.9
million, an increase of 19% from $2.4
million in the same period of 2021.
- Number of transmission products sold was 41,902 units,
an increase of 13% compared with 36,986 units in the same period of
2021.
Mr. Raymond Wang, Chief Executive
Officer of Greenland Technologies Holding Corporation, commented,
"We delivered our highest quarterly revenue to date, as we drove
19% year over year growth in first quarter revenue and a 19% year
over year increase in net income. Our team continues to make
impressive progress executing on our rapidly expanding industrial
electric vehicle product line, while at the same time moving
forward with our U.S. production expansion to ensure we have
capacity to support the overwhelmingly positive customer response
and expected long-term demand."
Mr. Wang added, "Our ongoing strategic shift toward
higher-value, feature-rich products helped drive a 100 basis points
improvement in gross margin to 21.7%. Additionally, our electric
industrial vehicle division is on track with our upcoming assembly
facility in Baltimore County,
Maryland on schedule for a July opening. Though the industry
is facing continued headwinds from the pandemic lockdown in
China, we remain optimistic given
the long-term transformation of the industrial vehicle industry,
led by demand for cleaner, greener electric vehicles and support
from local legislation. With our proven track record and
expanding product roadmap, we are positioned to address the growing
demand for our industrial electric vehicles, as we focus on
building increased value for shareholders."
Mr. Jing Jin, Chief Financial
Officer of Greenland, commented:
"Demand for Greenland's
transmission products remained strong, as we leverage our global
brand, inventory management and performance track record to
partially offset headwinds from higher raw materials and component
prices, COVID-19 shutdowns, global inflation, and higher logistics
costs. In addition to our strong 19% year over year revenue and 19%
year over year net income growth, we further strengthened our
balance sheet with a 30% increase in our cash on hand. This gives
us added confidence and flexibility, as we continue to prioritize
investments in R&D innovation and revenue generation, which we
believe will drive Greenland's
long-term market share gains in the electric industrial vehicle
market and significant value creation for shareholders."
Recent Developments and Strategic Highlights:
- Secured Lease On Assembly Facility: Greenland has secured and fully executed a
lease on its first assembly facility located in Baltimore County, Maryland. The site is over
54,000 sq ft and will produce over 500 electric heavy equipment
units per year when fully operational. Maryland's Governor Larry Hogan noted, "As we continue to invest in
new products and technologies, Greenland's vision and growth in electric
industrial vehicles will fit in well with our state's innovative
ecosystem."
- Launched of New HEVI Brand: Greenland has launched a new HEVI brand to
encapsule its electric heavy industrial equipment division. This
brand replaces Greenland Machinery and better exemplifies the
culture and objective of introducing clean and sustainable
alternatives to the industrial equipment industry.
- Passed Clean Cars Act of Maryland: Greenland supported the passing of HB1391 –
Maryland Clean Cars Act of 2022 that will introduce consumer
incentives for electric heavy industrial equipment purchases within
the state effective July 1,
2022.
First Quarter 2022 Financial Results
Total revenues were $29.3 million,
an increase of 19% from $24.6 million
in the first quarter of 2021. The increase was primarily due
to higher sales volume, driven by continued demand for the
Company's products and its effective supply chain management. The
number of transmission products sold was 41,902 units, up 13% from
36,986 units in the first quarter of 2021.
Costs of goods sold were $22.9
million, an increase of 18% from $19.5 million in the first quarter of 2021. The
increase was primarily due to the increase in sales volume, higher
cost of raw materials and components, higher shipping costs and
higher logistics costs.
Gross profit was $6.4 million, an
increase of 25% from $5.1 million in
the first quarter of 2021. Gross margin was 21.7%, an increase of
100 basis points from 20.7% in the first quarter of 2021, as a
result of the Company's strategic shift towards higher value, more
sophisticated products, such as hydraulic transmissions.
Total operating expenses were $3.0
million, up 33% from $2.2
million in the first quarter of 2021. Operating expenses as
a percentage of total revenues was 10.2%, compared to 9.1% in the
first quarter of 2021. The increase in operating expenses was
primarily due to the Company's investments in support of its growth
strategy, with an expansion of revenue-generating and R&D
efforts.
Income from operations was $3.4
million, an increase of 18% from $2.9
million in the first quarter of 2021.
Net Income was $2.9 million, an
increase of 19% from $2.4 million in
the first quarter of 2021.
Basic and diluted net income per ordinary share was $0.16, compared with $0.21 in the first quarter of 2021.
Conference Call
The Greenland Technologies Holding Corporation management team
will host an earnings conference call at 8:00 AM on Monday, May 16, 2022, U.S. Eastern Time
(8:00 PM on May 16, 2022, 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/2888891
A replay of the conference call may be accessed by phone at the
following numbers until May 24, 2022.
To access the replay, please reference the conference ID
2888891.
|
Phone
Number
|
International
|
+61 2
8199-0299
|
United
States
|
+1 (855)
452-5696
|
China Hong
Kong
|
+852
800963117
|
Mainland
China
|
+86
4008209035
+86
8009880552
|
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. Information on the Company's clean industrial
heavy equipment division can be found at HEVI Equipment, its new
clean industrial heavy equipment division. For additional 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
Global IR Partners
Mr. David Pasquale
Phone: +1 914-337-8801
Email: GTEC@globalirpartners.com
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
FOR THE THREE
MONTHS ENDED MARCH 31, 2022 AND 2021
(UNAUDITED, IN
U.S. DOLLARS)
|
|
|
|
For
the
three months
ended
March
31,
|
|
|
|
2022
|
|
|
2021
|
|
REVENUES
|
|
$
|
29,306,957
|
|
|
$
|
24,610,894
|
|
COST OF GOODS
SOLD
|
|
|
22,938,983
|
|
|
|
19,506,507
|
|
GROSS
PROFIT
|
|
|
6,367,974
|
|
|
|
5,104,387
|
|
Selling
expenses
|
|
|
639,647
|
|
|
|
379,230
|
|
General and
administrative expenses
|
|
|
1,279,746
|
|
|
|
911,139
|
|
Research and
development expenses
|
|
|
1,082,594
|
|
|
|
959,545
|
|
Total operating
expenses
|
|
$
|
3,001,987
|
|
|
$
|
2,249,914
|
|
INCOME FROM
OPERATIONS
|
|
$
|
3,365,987
|
|
|
$
|
2,854,473
|
|
Interest
income
|
|
|
12,562
|
|
|
|
4,595
|
|
Interest
expense
|
|
|
(105,009)
|
|
|
|
(180,189)
|
|
Loss on disposal of
property and equipment
|
|
|
(404)
|
|
|
|
(1,770)
|
|
Other
income
|
|
|
261,032
|
|
|
|
288,746
|
|
INCOME BEFORE
INCOME TAX
|
|
$
|
3,534,168
|
|
|
$
|
2,965,855
|
|
INCOME
TAX
|
|
|
619,370
|
|
|
|
522,616
|
|
NET
INCOME
|
|
$
|
2,914,798
|
|
|
$
|
2,443,239
|
|
LESS: NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
|
|
1,127,746
|
|
|
|
314,671
|
|
NET INCOME
ATTRIBUTABLE TO GREENLAND TECHNOLOGIES
HOLDING CORPORATION AND SUBSIDIARIES
|
|
$
|
1,787,052
|
|
|
$
|
2,128,568
|
|
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|
|
373,910
|
|
|
|
(258,229)
|
|
Unrealized foreign
currency translation income (loss) attributable to Greenland
technologies holding corporation and
subsidiaries
|
|
|
248,082
|
|
|
|
(189,103)
|
|
Unrealized foreign
currency translation income (loss) attributable to
Noncontrolling
interest
|
|
|
125,828
|
|
|
|
(69,126)
|
|
Comprehensive
income (loss)
|
|
|
2,035,134
|
|
|
|
1,939,465
|
|
Noncontrolling
interest
|
|
|
1,253,574
|
|
|
|
245,545
|
|
WEIGHTED AVERAGE
ORDINARY SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
11,329,530
|
|
|
|
10,333,968
|
|
NET INCOME PER
ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF
THE COMPANY:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.16
|
|
|
|
0.21
|
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF MARCH 31,
2022 AND DECEMBER 31, 2021
(IN U.S.
DOLLARS)
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,853,839
|
|
|
$
|
11,062,590
|
|
Restricted
cash
|
|
|
6,330,613
|
|
|
|
6,738,302
|
|
Short Term
Investment
|
|
|
4,066,630
|
|
|
|
2,105,938
|
|
Notes
receivable
|
|
|
33,524,960
|
|
|
|
37,551,121
|
|
Accounts receivable,
net of allowance for doubtful accounts of $869,034 and
$859,319, respectively
|
|
|
24,715,861
|
|
|
|
15,915,002
|
|
Inventories
|
|
|
24,963,483
|
|
|
|
25,803,474
|
|
Due from related
parties-current
|
|
|
39,790,638
|
|
|
|
39,679,565
|
|
Advance to
suppliers
|
|
|
632,664
|
|
|
|
434,893
|
|
Prepayments and other
current assets
|
|
|
80,782
|
|
|
|
14,518
|
|
Total Current
Assets
|
|
$
|
140,959,470
|
|
|
$
|
139,305,403
|
|
|
|
|
|
|
|
|
|
|
Non-current
asset
|
|
|
|
|
|
|
|
|
Property, plant,
equipment and construction in progress, net
|
|
|
18,553,625
|
|
|
|
18,957,553
|
|
Land use rights,
net
|
|
|
4,032,128
|
|
|
|
4,035,198
|
|
Deferred tax
assets
|
|
|
676,622
|
|
|
|
141,623
|
|
Goodwill
|
|
|
3,890
|
|
|
|
3,890
|
|
Operating lease
right-of-use assets
|
|
|
72,480
|
|
|
|
80,682
|
|
Other non-current
assets
|
|
|
42,892
|
|
|
|
44,093
|
|
Total non-current
assets
|
|
$
|
23,381,637
|
|
|
$
|
23,263,039
|
|
TOTAL
ASSETS
|
|
$
|
164,341,107
|
|
|
$
|
162,568,442
|
|
GREENLAND
TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF MARCH 31,
2022 AND DECEMBER 31, 2021 (Continued)
(IN U.S.
DOLLARS)
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
9,595,697
|
|
|
$
|
8,760,945
|
|
Notes payable-bank
acceptance notes
|
|
|
37,072,247
|
|
|
|
42,093,061
|
|
Accounts
payable
|
|
|
32,257,872
|
|
|
|
29,064,132
|
|
Taxes
payables
|
|
|
-
|
|
|
|
108,058
|
|
Customer
deposits
|
|
|
443,138
|
|
|
|
387,919
|
|
Due to related
parties
|
|
|
2,022,459
|
|
|
|
3,619,459
|
|
Other current
liabilities
|
|
|
2,307,551
|
|
|
|
1,198,427
|
|
Current portion of
operating lease liabilities
|
|
|
33,816
|
|
|
|
33,308
|
|
Lease obligations -
current
|
|
|
198,954
|
|
|
|
197,915
|
|
Total current
liabilities
|
|
$
|
83,931,734
|
|
|
$
|
85,463,224
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
Lease obligations –
non-current
|
|
|
-
|
|
|
|
-
|
|
Long term operating
lease liabilities
|
|
|
38,994
|
|
|
|
47,614
|
|
Other long-term
liabilities
|
|
|
2,159,936
|
|
|
|
2,212,938
|
|
Total long-term
liabilities
|
|
$
|
2,198,930
|
|
|
$
|
2,260,552
|
|
TOTAL
LIABILITIES
|
|
$
|
86,130,664
|
|
|
$
|
87,723,776
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no
par value, unlimited shares authorized; 11,329,530 and
10,225,142 shares issued and outstanding as of
December 31, 2021 and December
31, 2020.
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
23,836,433
|
|
|
|
23,759,364
|
|
Statutory
reserves
|
|
|
3,842,331
|
|
|
|
3,842,331
|
|
Retained
earnings
|
|
|
35,455,748
|
|
|
|
33,668,696
|
|
Accumulated other
comprehensive income (loss)
|
|
|
1,262,481
|
|
|
|
1,014,399
|
|
Total
shareholders' equity
|
|
$
|
64,396,993
|
|
|
$
|
62,284,790
|
|
Non-controlling
interest
|
|
|
13,813,450
|
|
|
|
12,559,876
|
|
TOTAL
EQUITY
|
|
$
|
78,210,443
|
|
|
$
|
74,844,666
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
164,341,107
|
|
|
$
|
162,568,442
|
|
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SOURCE Greenland Technologies Holding Corporation