Greenland Technologies Holding Corporation Reports Third Quarter 2020 Results
Greenland Technologies Holding Corporation (NASDAQ: GTEC) reported significant growth for Q3 2020, achieving a 38.2% revenue increase to approximately $16.52 million. The company also saw a 69.8% rise in gross profit, reaching around $3.40 million, which improved gross margin to 20.6%. Income from operations grew by 122% to about $2.24 million. Despite challenges from COVID-19, Greenland remains optimistic about future growth, especially with upcoming launches of robotic cargo carriers and clean energy solutions.
- 38.2% increase in revenue to approximately $16.52 million.
- 69.8% increase in gross profit, reaching around $3.40 million.
- Improved gross margin from 16.7% to 20.6%.
- 122% increase in income from operations to approximately $2.24 million.
- Stronger financial position enhances growth opportunities.
- Temporary suspension of manufacturing in February due to COVID-19.
- Delays in launching robotic cargo carriers affecting short-term growth.
Highlights (3Q 2020 compared to 3Q 2019)
38% Increase in Revenue70% 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
The total cost of goods sold was approximately
The Company's gross profit was approximately
Income from operations for the three months ended September 30, 2020 was approximately
Net income was approximately
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 | |||||||||||||||
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 | ||||||||||||
NET INCOME ATTRIBUTABLE TO GREENLAND | $ | 207,933 | $ | 155,684 | $ | 1,723,694 | $ | 2,827,632 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | 3,657,192 | (1,613,847) | 2,410,267 | (1,725,902) | ||||||||||||
Unrealized foreign currency translation income (loss) | 2,863,032 | (1,662,531) | 2,303,218 | (1,740,796) | ||||||||||||
Unrealized foreign currency translation income attributable | 794,160 | 48,684 | 107,049 | 14,894 | ||||||||||||
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 | ||||||||||||||||
Basic and diluted | 10,021,142 | 7,500,000 | 10,017,204 | 7,500,000 | ||||||||||||
NET INCOME PER ORDINARY SHARE | ||||||||||||||||
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 | 20,018,092 | 16,156,692 | ||||||
Accounts receivable, net of allowance for doubtful accounts of | 15,693,614 | 11,971,889 | ||||||
Inventories, net of provision for slow moving inventory of | 12,573,915 | 9,972,877 | ||||||
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 | - | - | ||||||
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
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