GLG Life Tech Corporation Reports 2024 Third Quarter Financial Results

Rhea-AI Summary

GLG Life Tech reported Q3 2024 financial results with revenues of $3.4 million, up 42% from Q3 2023. Nine-month revenues reached $10.5 million, a 78% increase from 2023. The company recorded a significant one-time gain from the transfer of its Runde subsidiary, resulting in a total comprehensive gain of $84.8 million for Q3 2024. SG&A expenses were reduced by $0.2 million in Q3 and $0.5 million in the first nine months of 2024. The company was delisted from TSX effective September 3, 2024, and is now listed on the NEX exchange. A cease trade order remains in effect due to delayed financial filings.

Positive

• Revenue increased 42% YoY to $3.4M in Q3 2024
• Nine-month revenue grew 78% to $10.5M
• SG&A expenses reduced by $0.2M in Q3 and $0.5M YTD
• Significant debt reduction through Runde subsidiary transfer
• Total comprehensive gain of $84.8M in Q3 2024

Negative

• Net loss from continuing operations of $3.5M in Q3 2024
• Delisted from TSX due to financial deficiencies
• Cease trade order remains in effect
• Negative working capital situation continues
• Risk of insolvency without cash infusion

VANCOUVER, BC / ACCESSWIRE / November 29, 2024 / GLG Life Tech Corporation (TSX:GLG) ("GLG" or the "Company"), a global leader in the agricultural and commercial development of high-quality zero-calorie natural sweeteners, announces financial results for the three and nine months ended September 30, 2024. The complete set of financial statements and management discussion and analysis are available on SEDAR and on the Company's website at www.glglifetech.com.

FINANCIAL SUMMARY

The Company reported revenues of $3.4 million in the third quarter of 2024, compared to $2.4 million in revenue for the third quarter of 2023, an increase of 42%. The Company reported revenues of $10.5 million in the first nine months of 2024, compared to $5.9 million in revenue for the first nine months of 2023, an increase of 78%. The revenue increases in both the three- and nine-month periods was attributable to an increase in international stevia volumes.

The Company continues its efforts to closely manage its SG&A expenses, reducing SG&A by $0.2 million in the third quarter of 2024 and by $0.5 million in the first nine months of 2024, relative to the 2023 comparative periods.

The Company recorded in the third quarter of 2024 the transfer of its "Runde" subsidiary (previously announced as approved by shareholders and to be recorded in the third quarter of 2024 after regulatory reviews were completed), resulting in a significant one-time gain driven by the debt elimination associated with that asset transfer. On a consolidated continuing and discontinued operations basis, the Company recorded total comprehensive gain of $84.8 million for the three months ended September 30, 2024, (versus total comprehensive loss of $7.6 million in the third quarter of 2023), and for the nine months ended September 30, 2024, on this basis, the Company recorded total comprehensive gain of $71.0 million (versus total comprehensive loss of $16.3 million in the first nine months of 2023).

On a consolidated (continuing and discontinued operations) per share basis, the Company reported consolidated gain per share of $2.24 attributable to the Company for the three months ended September 30, 2024, (versus consolidated loss per share of $0.17 in the third quarter of 2023) and $1.90 for the nine months ended September 30, 2024 (versus consolidated loss per share of $0.59 for the first nine months of 2023).

For continuing operations, for the three months ended September 30, 2024, the Company had net loss attributable to the Company from continuing operations of $3.5 million, a decrease of $0.7 million over the comparable period in 2023 ($4.2 million net income). For the nine months ended September 30, 2024, the Company had a net loss attributable to the Company from continuing operations of $11.5 million, an increase in net loss of $4.3 million over the comparable period in 2023 (net loss of $7.2 million).

The Company reported a net loss per share from continuing operations of $0.09 for the third quarter of 2024, compared to net income per share of $0.11 for the third quarter of 2023. For the first nine months of 2024, the Company reported a net loss per share from continuing operations of $0.30, compared to a net loss per share of $0.19 for the first nine months of 2023.

CORPORATE AND SALES DEVELOPMENTS

Subsidiary Transfer Agreement and Special Shareholder Meeting

On February 20, 2024, the Company announced that it had signed an agreement, which, once fully approved, would result in the transfer of its Qingdao Runde Biotechnology Company, Ltd. ("Runde") production facility to Fengyang Xiaogang Hongzhang Health Industrial Park Co. Ltd ("Xiaogang"). This transfer, at the time contingent on necessary shareholder approval, and still contingent on regulatory approval, would eliminate significant bank debt from GLG's balance sheet.

Under the terms of the agreement, for the sale price of one Chinese RMB, one hundred percent of the equity in Runde, currently held by the Company's Anhui Runhai Biotechnology Joint Stock Company, Ltd. ("Runhai") subsidiary, will be transferred to Xiaogang. Xiaogang will thereafter own Runde's tangible assets and will have sole liability for Runde's debts including bank debt. The Company will retain its intellectual property rights, including its proprietary technology and know-how in agriculture and natural sweetener production.

Under supplemental agreements then expected to be signed by Runhai and Xiaogang in the coming weeks (and subsequently signed), Xiaogang will utilize Runde for the benefit of GLG and GLG's customers. Xiaogang will partner with Qingdao Honghongyuan Health Industry Technology Co., Ltd. ("HHY") - the operating entity previously formed to manage Runde's production operations - such that Runde's production continues unchanged under HHY's processes and management. Xiaogang, via HHY, will produce goods at Runde exclusively for GLG, except for domestic China sales. In this manner, GLG's customers will be able to rely on the same production expertise, processes, and highest quality standards remaining in place after this asset transfer becomes fully effective.

The agreement concerning Runde provides that the equity transfer will only become effective upon completion of any regulatory obligations, including putting the agreement forth to the Company's shareholders for a shareholder vote and additional securities-/exchange-related obligations. This agreement was put to shareholder vote at a special shareholder meeting and approved by the shareholders with over 99% of votes cast in favor of the transaction on May 16, 2024.

On August 13, 2024, Management completed its regulatory review regarding the transfer agreement. Management has determined that no further regulatory review or approvals were required to consummate the transfer, having already obtained the approval of over 99% of the shareholders casting votes at the Company's Special Shareholder Meeting held on May 16, 2024. Management has reflected the transfer of Runde, including Runde's assets and debts, in its third quarter interim financial filings.

The Company still owns its Runhai stevia and monk fruit manufacturing facility, located in Anhui province. The Company currently centers its stevia and monk fruit production operations at the Runde facility and plans to continue doing so, via Xiaogang and HHY, with the option to later augment Runde's operations with production operations at Runhai.

Delisting Review / Delisting from the TSX

On April 3, 2024, the Company announced that the Toronto Stock Exchange ("TSX") had commenced a delisting review, effective April 2, 2024. The TSX provided the Company a 120-day window in which to remedy several long-standing deficiencies, including the Company's financial condition and/or operating results and the Company's share price and market capitalization.

At the time of the announcement, the Company stated that it could not provide any assurance that it would be able to remedy the deficiencies identified by the TSX within the 120-day window or thereafter, particularly as there was no guarantee that the Company's share price, trading activity, or market capitalization would improve sufficiently to avoid continued TSX concern in those areas. The Company also confirmed that it had been in contact with the TSX Venture Exchange ("TSX-V") regarding an application for a listing on the TSX-V to maintain trading continuity in the event that the Company is delisted from the TSX.

Since that announcement, the Company was notified by the TSX that it would be delisted effective close of business on September 3, 2024. While the Company was not able to list on the TSX-V due to a Cease Trade Order in effect, the Company has been able to list on the NEX exchange, and the Company's NEX listing became effective on September 4, 2004.

Delay in Filing Financials and Cease Trade Order

As a result of the Company's failure to file its 2023 financials (consisting of annual financial statements, its management discussion and analysis relating to its annual financial statements, and its Annual Information Form and CEO and CFO certifications, all in respect of its year ended December 31, 2023) by March 31, 2024, the British Columbia Securities Commission ("BCSC") issued a failure-to-file cease trade order ("FFCTO"). The failure to file timely resulted from the late-coming court orders regarding Runyang's bankruptcy proceedings and the additional financial and audit work necessitated by those orders.

The delayed 2023 financial filings, which have since been filed on June 27, 2024, also led to a delay in the filing of the Company's first quarter 2024 interim financials, which have since been filed on July 23, 2024. With the Company now current in its filings, Management is pursuing a revocation of the FFCTO. Management cannot at this time provide an expected date for a revocation of the FFCTO nor any assurance that the revocation will be granted.

Final Disposition of Runyang Operations

In the course of the bankruptcy proceedings concerning Runyang, the Chinese court ultimately declared Runyang bankrupt, having liquidated all of its assets. In the fourth quarter of 2023, with Runyang's obligations thereby terminated, the Company realized a significant reduction in its liabilities, substantially outweighing the book value of the liquidated assets.

2024 AGM Voting Results

The Company held its Annual General Meeting on June 28, 2024. The shareholders voted in all four nominated directors, with favorable votes for each exceeding 99%. Dr. Luke Zhang continues as Chairman of the Board and Chief Executive Officer and Mr. Brian Palmieri continues as Vice Chairman of the Board. Madame Liu Yingchun and Mr. Simon Springett continue as directors of the Company.

Company Outlook

In recent quarters, management has placed, and continues to place, particular focus on mitigating the losses that the Company has suffered over the last several years and to ameliorate the Company's financial position. As a result of those sustained losses, the Company lacks the cash necessary to fully fund the business operations and its strategic product initiatives. The Company continues to manage its cash flows carefully to mitigate risk of insolvency. As a result of these efforts, management has been successful in improving the Company's cash flows. Nevertheless, without an infusion of cash in the months ahead, the Company may not be able to realize its strategic plans and could eventually cease to be a going concern.

To address that cash need, management previously negotiated revolving loan facilities with a third party for working capital purposes. In 2020, management also realized the sale of one of its two idle assets; the sale of the "Runhao" facility resulted in significant debt reduction. In 2023, the Company also realized significant debt reduction through the bankruptcy liquidation of its other long-idled asset, "Runyang". In 2024, as of August 13, the Company has finalized the transfer of its "Runde" facility, including Runde's debts and assets (to be reflected in the Company's third quarter interim financial filings), which will bring substantial improvements to its balance sheet, while indirectly maintaining production operations (not under the Company's own name but via HHY) at Runde. Collectively, these efforts to overhaul the Company's balance sheet better position the Company to avail itself of capital resources to support future growth.

The Company's focus on maintaining positive cash flow led the Company to take decisive steps in 2021, 2022 and 2023 to reduce its SG&A costs as well as its production costs. Both its North American operations and Chinese operations significantly reduced SG&A costs. For many years, the Company's production capacity had been far greater than its projected order levels, as it had then sought rapid increases in orders, particularly for Reb A products. The Company's aim transitioned to "right-sizing" its Chinese operations - i.e., to optimize its staffing and production planning to meet the Company's projected production requirements while retaining the ability to accommodate growth in future order volumes - and management made significant progress in this area.

A factor that continues to contribute to the Company's financial situation is the competitive price pressure in the stevia market over the last few years that has reduced mainstream "Reb A" products (such as Reb A 80 and Reb A 97) to the lowest price levels in years. Monk fruit prices have also become highly competitive in the marketplace. To maintain margins at sustainable levels, the Company previously focused on improving production efficiencies, and having made significant progress in that area (prior to transferring Runde's operations to HHY), the Company continues to strive for a mix of products that is weighted more heavily on higher margin, specialty products, and has focused more on higher margin direct sales. These right-sizing and efficiency efforts have enabled the Company to sell its goods at more competitive and/or more profitable prices, although the competitive price pressures remain strong and the most recent stevia leaf harvest has brought increased raw materials costs in tension with the Company's focus on product margins.

Revenue trends have been and remain encouraging, as Management's efforts to increase sales have brought increased revenues in the last three quarters (Q2 and Q1 2024 and Q4 2023) relative to the several prior quarters. Management currently foresees 2024 full-year revenues as meaningfully exceeding full-year 2023 revenues. This revenue growth is important to the Company's goals of maintaining positive cash flow and positive EBITDA.

Against this backdrop of sales growth, the Company faces significant regulatory hurdles. It is currently cease-traded, as a result of its delay in filing its 2023 full-year financials (since filed, on June 28, 2024), pursuant to a British Columbia Securities Commission order (the failure-to-file cease trade order or "FFCTO"). As a result of that filing delay, the Company was also delayed in filing its interim first quarter financials for 2024 (filed on July 23, 2024). Further, the Company was under a delisting review initiated by the TSX, on the basis of the Company's share price and market capitalization remaining lower than the TSX's requirements, as well as the Company's sustained losses over the years and negative working capital situation, that as noted above, culminated in a decision by the TSX to delist the Company's shares effective close of business September 3, 2024. The Company has since transferred its listing to the NEX exchange, where it is currently listed (as of September 4, 2024), but the FFCTO remains in effect.

As has been previously announced by the Company, the financial filing delays resulted from late-coming court orders in China related to proceedings concerning the Runyang; the court proceedings resulted in the disposal of the Runyang business, including elimination of significant debts previously carried by the Company, such debt elimination far greater than the carried value of the disposed assets. Management has since brought the Company current in its financial reporting requirements. Accordingly, Management is presently working to have the FFCTO rescinded, but cannot at present provide a timeline or any measure of certainty in having the FFCTO rescinded in the near future.

Although the regulatory hurdles are substantial, Management continues to have a positive outlook, at least in the near term, on the Company's revenues, particularly compared to 2023, as sales volumes remain elevated approaching the end of 2024 and entering 2025. As Management seeks to have the Company's stock trading again, Management continues to focus on maintaining and increasing revenues, notwithstanding pricing pressures, as well as on maintaining and improving margins and increase cash flows. Management also continues to work on improving the Company's negative working capital situation, and in particular, on options to restructure or otherwise resolve some or all of the remainder of the Company's long-standing bank debt.

SELECTED FINANCIALS

As noted above, the complete set of financial statements and management discussion and analysis for the three and nine months ended September 30, 2024, are available on SEDAR and on the Company's website at www.glglifetech.com.

Results from Operations

The following results from operations have been derived from and should be read in conjunction with the Company's annual consolidated financial statements for 2023 and the condensed interim consolidated financial statements for the nine-month period ended September 30, 2024.

In thousands Canadian $, except per share amounts		3 Months Ended September 30								% Change				9 Months Ended September 30								% Change
		2024				2023-Restated								2024				2023-Restated
Results from Continuing Operations
Revenue		$	3,373			$	2,370				42	%		$	10,514			$	5,922				78	%
Cost of Sales		$	(2,762	)		$	(1,993	)			(39	%)		$	(8,584	)		$	(4,716	)			(82	%)
% of Revenue			(82	%)			(84	%)			2	%			(82	%)			(80	%)			(2	%)
Gross Profit		$	612			$	376				63	%		$	1,931			$	1,205				60	%
% of Revenue			18	%			16	%			2	%			18	%			20	%			(2	%)
Expenses		$	(388	)		$	(658	)			(41	%)		$	(1,387	)		$	(2,152	)			(36	%)
% of Revenue			(12	%)			(28	%)			16	%			(13	%)			(36	%)			23	%
Income/(Loss) from Operations		$	224			$	(282	)			179	%		$	544			$	(947	)			157	%
% of Revenue			7	%			(12	%)			19	%			5	%			(16	%)			21	%
Other Income/(Expenses)		$	(3,745	)		$	(3,894	)			4	%		$	(12,064	)		$	(6,314	)			(91	%)
% of Revenue			(111	%)			(164	%)			53	%			(115	%)			(107	%)			(8	%)
Net Income/(Loss)		$	(3,521	)		$	(4,176	)			16	%		$	(11,520	)		$	(7,261	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(110	%)			(123	%)			13	%
Net Income/(Loss) Attributable to GLG		$	(3,515	)		$	(4,167	)			16	%		$	(11,499	)		$	(7,243	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(109	%)			(122	%)			13	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.09	)		$	(0.11	)			16	%		$	(0.30	)		$	(0.19	)			(59	%)
Consolidated Results (Consolidating Continued and Discontinued Operations)
Net Income/(Loss) - Continuing Operations		$	(3,521	)		$	(4,176	)			16	%		$	(11,520	)		$	(7,261	)			(59	%)
Net Income/(Loss) - Discontinued Operations		$	90,640			$	(2,394	)			3886	%		$	85,432			$	(15,458	)			653	%
Net Income/(Loss)		$	87,119			$	(6,570	)			1426	%		$	73,912			$	(22,719	)			425	%
Net Income/(Loss) Attributable to GLG		$	86,083			$	(6,533	)			1418	%		$	72,951			$	(22,524	)			424	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	2.24			$	(0.17	)			1418	%		$	1.90			$	(0.59	)			424	%
Other Comprehensive Income/(Loss)		$	(1,258	)		$	(1,079	)			(17	%)		$	(1,974	)		$	6,286				(131	%)
Comprehensive Net Income/(Loss)		$	85,859			$	(7,649	)			1222	%		$	71,938			$	(16,433	)			538	%
Comprehensive Net Income/(Loss) Attributable to GLG		$	84,826			$	(7,594	)			1217	%		$	70,993			$	(16,303	)			535	%

Revenue

Revenue for the three months ended September 30, 2024, was $3.4 million compared to $2.4 million in revenue for the same period last year. Sales increased by 42% or $1.0 million for the three-month period ending September 30, 2024, compared to the prior period. The $1.0 million increase in sales is primarily attributable to an increase in stevia sales, with an increase in sales volumes more than offsetting the effect of lower unit sales prices driven by competitive price pressure in the stevia marketplace. The Company's third quarter 2024 and 2023 revenues consisted solely of international sales (i.e., ex-China).

Revenue for the nine months ended September 30, 2024, was $10.5 million compared to $5.9 million in revenue for the same period last year. Sales increased by 78% or $4.6 million for the nine months ending September 30, 2024, compared to the prior period. The sales increase of $4.6 million was driven by an increase in stevia sales, with monk fruit sales decreasing slightly in absolute terms. The increase in stevia sales was driven in part by the base effect of a 2023 first quarter planned delay in orders placed from one of the Company's largest customers and in part by the Company's successful efforts to increase sales volumes. The Company's 2024 and 2023 nine-month revenues consisted solely of international sales.

Cost of Sales

For the three months ended September 30, 2024, the cost of sales increased to $2.8 million, compared to a cost of sales of $2.0 million for the same period last year (an increase in cost of sales of 39%). Cost of sales as a percentage of revenues was 82% for the third quarter, a two-percentage point decrease compared to the third quarter of 2023 (84%). This two-percentage point decrease in cost of sales as a percentage of revenues is attributable, at root, to higher market-wide pricing for certain stevia leaf and base stevia extracts in 2024, relative to 2023, which effectively drove up, and/or impeded the Company's ability to negotiate, the cost of goods produced for and/or sourced by the Company in the third quarter of 2024 relative to the third quarter of 2023, with pricing to end customers often constrained either contractually or by competitive marketplace conditions.

For the nine months ended September 30, 2024, the cost of sales increased to $8.6 million, compared to a cost of sales of $4.7 million for the same period last year (an increase in cost of sales of 82%). Cost of sales as a percentage of revenues was 82% for the first nine months of 2024, a two-percentage point increase compared to the first nine months of 2023 (80%).

For both the three- and nine-month periods, cost of sales as a percentage of revenues increased given higher market-wide pricing for certain stevia leaf and base stevia extracts in 2024, relative to 2023, but such increases were wholly (three-month) or partly (nine-month) offset by the elimination of idle capacity charges to cost of sales in 2024, whereas idle capacity charges contributed to cost of sales in 2023.

Gross Profit

Gross profit for the three months ended September 30, 2024, increased by $0.2 million to $0.6 million, a 63% increase compared to $0.4 million in gross profit for the same period last year. This 63% increase in gross profit was driven by the increase in sales volumes for the third quarter of 2024 compared to the third quarter of 2023. The gross profit margin was 18% for the third quarter of 2024, compared to 16% in the third quarter of 2023. The gross profit margin increased in the third quarter of 2024 due to the elimination of idle capacity charges, as the idle capacity charges in the third quarter of 2023 effectively reduced the Company's gross profit margins in that period.

Gross profit for the nine months ended September 30, 2024, increased by $0.7 million to $1.9 million, a 60% increase compared to a gross profit of $1.2 million for the comparable period in 2023. This 60% increase in gross profit was driven by the increase in sales volumes for the first nine months of 2024 compared to the first nine months of 2023. The gross profit margin was 18% in the first nine months of 2024 compared to 20% for the same period in 2023. The gross profit margin declined due to higher market-wide pricing for certain stevia leaf and base stevia extracts in 2024, relative to 2023; the elimination of idle capacity charges in 2024 partly offset the effect of the higher market prices for these stevia raw materials.

Selling, General and Administration Expenses

Selling, General and Administration ("SG&A") expenses include sales, marketing, general and administration costs ("G&A"), stock-based compensation, and depreciation and amortization expenses on G&A fixed assets. A breakdown of SG&A expenses into these components is presented below:

In thousands Canadian $		3 Months Ended September 30								% Change				9 Months Ended September 30								% Change
		2024				2023-Restated								2024				2023-Restated
Results from Continuing Operations
G&A Expenses		$	375			$	553				(32	%)		$	1,349			$	1,824				(26	%)
Depreciation Expenses		$	13			$	105				(88	%)		$	38			$	328				(88	%)
Total		$	388			$	658				(41	%)		$	1,387			$	2,152				(36	%)

G&A expenses for the three months ended September 30, 2024, were $0.4 million, a $0.2 million decrease compared to the same period in 2023 ($0.6 million). The $0.2 million decrease in G&A expenses for the third quarter of 2024 was driven largely by reductions in salaries and wages and consulting fees. G&A-related depreciation and amortization expenses for the three months ended September 30, 2024, were $nil million compared with $0.1 million for the third quarter of 2023.

G&A expenses for the nine months ended September 30, 2024, were $1.3 million, a $0.5 million decrease compared to the same period in 2023 ($1.8 million). The $0.5 million decrease in G&A expenses for the first nine months of 2024 was driven largely by reductions in salaries and wages and consulting fees. G&A-related depreciation and amortization expenses for the nine months ended September 30, 2024, were $nil million compared with $0.3 million for the first nine months of 2023.

Net Income (Loss) Attributable to the Company (Continuing Operations)

In thousands Canadian $		3 Months Ended September 30								% Change				9 Months Ended September 30								% Change
		2024				2023-Restated								2024				2023-Restated
Net Income/(Loss) - Continuing Operations
Net Income/(Loss)		$	(3,521	)		$	(4,176	)			16	%		$	(11,520	)		$	(7,261	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(110	%)			(123	%)			13	%
Net Income/(Loss) Attributable to NCI		$	(7	)		$	(9	)			22	%		$	(21	)		$	(18	)			(17	%)
Net Income/(Loss) Attributable to GLG		$	(3,515	)		$	(4,167	)			16	%		$	(11,499	)		$	(7,243	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(109	%)			(122	%)			13	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.09	)		$	(0.11	)			16	%		$	(0.30	)		$	(0.19	)			(59	%)

For the three months ended September 30, 2024, the Company had net loss attributable to the Company from continuing operations of $3.5 million, a decrease of $0.7 million over the comparable period in 2023 ($4.2 million net income). This $0.7 million decrease in net loss is attributable to (1) a decrease in SG&A expenses ($0.3 million), (2) an increase in gross profit ($0.2 million), and (3) a decrease in other expenses ($0.2 million).

For the nine months ended September 30, 2024, the Company had a net loss attributable to the Company of $11.5 million, an increase in net loss of $4.3 million over the comparable period in 2023 (net loss of $7.2 million). The $4.3 million increase in net loss attributable to the Company was driven by (1) an increase in other expenses ($5.7 million), which was offset by (2) a decrease in SG&A expenses ($0.8 million) and (3) an increase in gross profit ($0.7 million).

Comprehensive Income (Loss) (Consolidated Continuing and Discontinued Operations

In thousands Canadian $		3 Months Ended September 30								% Change				9 Months Ended September 30								% Change
		2024				2023-Restated								2024				2023-Restated
Comprehensive Income/(Loss) - Consolidated (Continuing and Discontinued Operations)
Net Income/(Loss)		$	87,119			$	(6,570	)			1426	%		$	73,912			$	(22,719	)			425	%
Net Income/(Loss) Attributable to NCI		$	1,035			$	(37	)			2897	%		$	962			$	(196	)			591	%
Net Income/(Loss) Attributable to GLG		$	86,083			$	(6,533	)			1418	%		$	72,951			$	(22,524	)			424	%
Other Comprehensive Income/(Loss)		$	(1,258	)		$	(1,079	)			(17	%)		$	(1,974	)		$	6,286				(131	%)
% of Revenue			(37	%)			(46	%)			8	%			(19	%)			106	%			(125	%)
Other Comprehensive Income/(Loss) Attributable to NCI		$	(2	)		$	(18	)			89	%		$	(16	)		$	65				(125	%)
Other Comprehensive Income/(Loss) Attributable to GLG		$	(1,256	)		$	(1,061	)			(18	%)		$	(1,958	)		$	6,221				(131	%)
% of Revenue			(37	%)			(45	%)			8	%			(19	%)			105	%			(124	%)
Comprehensive Income/(Loss)		$	85,859			$	(7,649	)			1222	%		$	71,938			$	(16,433	)			538	%
% of Revenue			2545	%			(323	%)			2868	%			684	%			(277	%)			962	%
Comprehensive Income/Loss Attributable to NCI		$	85,859			$	(7,649	)			1222	%		$	71,938			$	(16,433	)			538	%
Comprehensive Income/Loss Attributable to GLG		$	84,826			$	(7,594	)			1217	%		$	70,993			$	(16,303	)			535	%
% of Revenue			2515	%			(320	%)			2835	%			675	%			(275	%)			951	%

The Company, on a consolidated continuing and discontinued operations basis, recorded total comprehensive income of $84.8 million for the three months ended September 30, 2024, comprising, as attributable to the Company, $86.1 million of net income and $1.3 million of other comprehensive loss. On the same basis, the Company recorded total comprehensive loss of $7.6 million for the three months ended September 30, 2023, comprising, as attributable to the Company, $6.5 million of net loss and $1.1 million of other comprehensive loss. The $86.1 million of net income in the third quarter of 2024 is primarily attributable to gain recorded from the sale of the Company's Runde facility.

The Company, on a consolidated continuing and discontinued operations basis, recorded total comprehensive gain of $71.0 million for the nine months ended September 30, 2024, comprising, as attributable to the Company, $73.0 million of net income and $2.0 million of other comprehensive loss. On the same basis, the Company recorded total comprehensive loss of $16.3 million for the nine months ended September 30, 2023, comprising, as attributable to the Company, $22.5 million of net loss, offset by $6.2 million of other comprehensive income.

Quarterly Basic and Diluted Loss per Share

The basic and diluted loss per share from continuing operations was $0.09 for the three months ended September 30, 2024, compared with a basic and diluted net loss per share from continuing operations of $0.11 for the comparative period in 2023. The basic and diluted gain per share from consolidated continuing and discontinued operations was $2.24 for the three months ended September 30, 2024, compared with a basic and diluted net loss per share from consolidated operations of $0.17 for the comparative period in 2023.

The basic and diluted loss per share from continuing operations was $0.30 for the nine months ended September 30, 2024, compared with a basic and diluted net loss per share from continuing operations of $0.19 for the comparative period in 2023. The basic and diluted gain per share from consolidated continuing and discontinued operations was $1.90 for the nine months ended September 30, 2024, compared with a basic and diluted net loss per share from consolidated operations of $0.59 for the comparative period in 2023.

Additional Information

Additional information relating to the Company, including our Annual Information Form, is available on SEDAR (www.sedar.com). Additional information relating to the Company is also available on our website (www.glglifetech.com).

For further information, please contact:

Simon Springett, Investor Relations
Phone: +1 (604) 669-2602 ext. 101
Fax: +1 (604) 662-8858
Email: ir@glglifetech.com

About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in the supply of high-purity zero calorie natural sweeteners including stevia and monk fruit extracts used in food and beverages. GLG's vertically integrated operations, which incorporate our Fairness to Farmers program and emphasize sustainability throughout, cover each step in the stevia and monk fruit supply chains including non-GMO seed and seedling breeding, natural propagation, growth and harvest, proprietary extraction and refining, marketing and distribution of the finished products. Additionally, to further meet the varied needs of the food and beverage industry, GLG, through its Naturals+ product line, supplies a host of complementary ingredients reliably sourced through its supplier network in China. For further information, please visit www.glglifetech.com.

Forward-looking statements: This press release may contain certain information that may constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements. Specific reference is made to the risks set forth under the heading "Risk Factors" in the Company's Annual Information Form for the financial year ended December 31, 2023. In light of these factors, the forward-looking events discussed in this press release might not occur.

Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.

SOURCE: GLG Life Tech Corporation

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FAQ

What was GLG Life Tech's revenue growth in Q3 2024?

GLG Life Tech (GLGLF) reported Q3 2024 revenue of $3.4 million, representing a 42% increase compared to Q3 2023.

Why was GLG Life Tech delisted from TSX in September 2024?

GLG Life Tech was delisted from TSX on September 3, 2024, due to failing to meet requirements for share price, market capitalization, and sustained financial losses.

What was GLG Life Tech's comprehensive gain in Q3 2024?

GLG Life Tech reported a total comprehensive gain of $84.8 million in Q3 2024, primarily due to debt elimination associated with the Runde subsidiary transfer.