Pond Technologies

Greenland Technologies Reports 64% YoY Increase in 1Q 2024 Net Income Per Share

16 May 2024
  • Drives Year-over-Year Revenue Growth and Gross Margin Expansion
  • Achieves Major Milestone with Sales to Maryland's Port of Baltimore
  • Accelerates Expansion of the HEVI Authorized Service Provider (ASP) National Network

EAST WINDSOR, N.J., May 16, 2024 /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, 2024.

Raymond Wang, Chief Executive Officer of Greenland, said, "In the first quarter of 2024, we achieved a remarkable 64% year-over-year increase in our net income per share, driven by our focused execution of both short-term and long-term business strategies. Our electric vehicle (EV) sales are gaining significant traction, thanks to our strategic investments in developing a highly competitive lineup of electric industrial vehicles. These vehicles not only provide customers with the power and features necessary for their operations but also offer a renewable footprint and compelling return on investment. Furthermore, the expansion of our HEVI Authorized Service Provider ("ASP") national network is proving to be immensely beneficial. This network enhances confidence among HEVI owners, ensuring they have access to a robust and reliable service and support infrastructure wherever they operate. Our success in expanding our ASP national network is a key reason we have been building business momentum and have been able to secure numerous purchase agreements for our GEL-5000 and GEL-1800 all-electric loaders."

"In light of our significant progress and accelerating growth, the response from our customers and partners has been overwhelmingly positive, as they share in our dedication to excellence. We are thrilled about all of our pivotal strategic developments and eagerly anticipate providing further updates as we progress forward, as we strive to unlock value for all shareholders."

Jing Jin, Chief Financial Officer of Greenland, commented, "We started 2024 on a high note, with positive advancements in key financial metrics, strides in our long-term growth strategy, and a robust balance sheet to bolster our expansion initiatives. While we acknowledge challenges such as heightened shipping costs, credit losses, and staffing expenses associated with our expansion, we are optimistic that these headwinds will gradually ease as we progress through the year. This, in turn, we believe, will fuel additional profitable growth and enhance shareholder value."

Financial Highlights

Greenland's revenue was $22.72 million for the three months ended March 31, 2024, representing an increase of $0.57 million, or 2.6%, as compared to $22.15 million for the three months ended March 31, 2023. The increase in revenue was primarily a result of the increase in the Company's sales volume, driven by increasing market demand for transmission products for the three months ended March 31, 2024. On an RMB basis, revenue for the three months ended March 31, 2024 increased by approximately 7.8% as compared to the three months ended March 31, 2023.

Greenland's gross profit was $5.65 million for the three months ended March 31, 2024, representing an increase of $0.13 million, or 2.2%, as compared to $5.52 million for the three months ended March 31, 2023. For the three months ended March 31, 2024 and 2023, Greenland's gross margins were 24.9%. The increase in gross profit in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to the increase in sales volume.

Greenland's cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the Company's manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was $17.08 million for the three months ended March 31, 2024, representing an increase of $0.45 million, or 2.7%, as compared to $16.63 million for the three months ended March 31, 2023. Cost of goods sold increased due to the increase in sales volume.

Total operating expenses were $3.72 million, an increase of 18.1% from $3.15 million in the first quarter of 2023. The increase was primarily due to higher shipping fees, staffing costs and general and administrative expenses.

Income from operations for the three months ended March 31, 2024 was $1.93 million, representing a decrease of $0.44 million, as compared to that of $2.37 million for the three months ended March 31, 2023.

Net income was $3.57 million for the three months ended March 31, 2024, representing an increase of $1.11 million, as compared to that of $2.46 million for the three months ended March 31, 2023. Net income was $0.18 per basic and diluted share for the three months ended March 31, 2024, representing an increase of 64%, as compared to $0.11 for the three months ended March 31, 2023.

Cash equivalents refers to all highly liquid investments purchased with original maturity of three months or less. As of March 31, 2024, Greenland had $15.99 million of cash and cash equivalents, a decrease of approximately $7.00 million, or 30.44%, as compared to $22.98 million as of December 31, 2023. The decrease of cash and cash equivalents was mainly due to an increase in notes receivables and fixed deposit, as compared to that as of December 31, 2023.

As of March 31, 2024, Greenland had approximately $22.58 million of accounts receivables, an increase of $5.23 million, or 30.14%, as compared to $17.35 million as of December 31, 2023. The increase in accounts receivables was due to the increase in the Company's sales volume and slowed down efforts in receivables collections. Greenland recorded $1.42 million and $0.87 million of allowance for expected credit losses as of March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024, Greenland had $32.13 million of notes receivables, which it expects to collect within twelve months. The increase was $4.99 million, or 18.39%, as compared to $27.14 million as of December 31, 2023.

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 Corp. 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 Corp.

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 filed with the U.S. 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. 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 BALANCE SHEETS

(UNAUDITED, IN U.S. DOLLARS)

 
  
  

March 31,

  

December 31,

 
  

2024

  

2023

 

ASSETS

      

Current assets

      

Cash and cash equivalents

 

$

15,985,073

  

$

22,981,324

 

Restricted cash

  

3,850,217

   

5,208,063

 

Short Term Investment

  

2,794,690

   

2,818,068

 

Notes receivable

  

32,125,580

   

27,135,249

 

Accounts receivable, net

  

21,159,628

   

16,483,533

 

Inventories, net

  

24,746,244

   

24,596,795

 

Due from related parties-current, net

  

228,311

   

225,927

 

Advance to suppliers

  

606,469

   

288,578

 

Prepayments and other current assets

  

1,878,130

   

53,204

 

Total Current Assets

 

$

103,374,342

  

$

99,790,741

 
         

Non-current asset

        

Property, plant, equipment and construction in progress, net

  

14,110,492

   

13,698,997

 

Land use rights, net

  

3,369,694

   

3,448,505

 

Other intangible assets

  

162,579

   

189,620

 

Deferred tax assets

  

437,459

   

256,556

 

Right-of-use assets

  

1,996,392

   

2,125,542

 

Fixed deposit

  

15,395,169

   

9,916,308

 

Other non-current assets

  

335,304

   

1,050,698

 

Total non-current assets

 

$

35,807,089

  

$

30,686,226

 

TOTAL ASSETS

 

$

139,181,431

  

$

130,476,967

 

Current Liabilities

      

Short-term bank loans

 

$

8,254,505

  

$

3,042,296

 

Notes payable-bank acceptance notes

  

33,167,150

   

36,712,562

 

Accounts payable

  

30,845,465

   

25,272,528

 

Taxes payables

  

745,662

   

758,307

 

Customer deposits

  

339,838

   

137,985

 

Due to related parties

  

4,021,592

   

4,021,636

 

Other current liabilities

  

1,947,696

   

2,091,507

 

Lease liabilities

  

488,568

   

487,695

 

Total current liabilities

 

$

79,810,476

  

$

72,524,516

 
         

Long-term liabilities

        

Lease liabilities

  

1,560,279

   

1,684,614

 

Other long-term liabilities

  

1,447,490

   

1,529,831

 

Warrant liability

  

3,049,299

   

4,084,605

 

Total long-term liabilities

 

$

6,057,068

  

$

7,299,050

 

TOTAL LIABILITIES

 

$

85,867,544

  

$

79,823,566

 
         

COMMITMENTS AND CONTINGENCIES

  

-

   

-

 

Shareholders' equity

        

Ordinary shares, no par value, unlimited shares authorized; 

13,594,530 and 13,594,530 shares issued and outstanding as of

March 31, 2024and December 31, 2023.

  

-

   

-

 

Additional paid-in capital

  

30,286,560

   

30,286,560

 

Statutory reserves

  

3,842,331

   

3,842,331

 

Retained earnings

  

21,037,336

   

18,535,133

 

Accumulated other comprehensive loss

  

(3,237,602)

   

(2,583,794)

 

Total shareholders' equity

 

$

51,928,625

  

$

50,080,230

 

Non-controlling interest

  

1,385,262

   

573,171

 

TOTAL EQUITY

 

$

53,313,887

  

$

50,653,401

 
         

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

139,181,431

  

$

130,476,967

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED, IN U.S. DOLLARS)

 
  

For the

three months ended

March 31,

 
  

2024

  

2023

 

Revenues

 

$

22,723,591

  

$

22,149,360

 

Cost of goods sold

  

17,076,522

   

16,625,930

 

Gross profit

  

5,647,069

   

5,523,430

 

Selling expenses

  

549,496

   

387,485

 

General and administrative expenses

  

2,183,429

   

1,641,904

 

Research and development expenses

  

987,724

   

1,119,891

 

Total operating expenses

 

$

3,720,649

  

$

3,149,280

 

INCOME FROM OPERATIONS

 

$

1,926,420

  

$

2,374,150

 

Interest income

  

169,213

   

30,393

 

Interest expense

  

(43,840)

   

(66,493)

 

Change in fair value of the warrant liability

  

1,035,306

   

-

 

Other income

  

296,148

   

417,382

 

INCOME BEFORE INCOME TAX

 

$

3,383,247

  

$

2,755,432

 

INCOME TAX BENEFIT (EXPENSE)

  

(186,001)

   

296,858

 

NET INCOME

 

$

3,569,248

  

$

2,458,574

 

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST

  

1,067,045

   

1,011,599

 

NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES

   HOLDING CORPORATION AND SUBSIDIARIES

 

$

2,502,203

  

$

1,446,975

 

OTHER COMPREHENSIVE INCOME (LOSS):

  

(908,762)

   

317,332

 

Unrealized foreign currency translation income (loss) attribute to Greenland

   Technologies Holding Corporation and subsidiaries

  

(653,808)

   

212,352

 

Unrealized foreign currency translation income (loss) attribute to non-controlling

   interest

  

(254,954)

   

104,980

 

Total comprehensive income attributable to Greenland Technologies Holding

   Corporation and subsidiaries

  

1,848,395

   

1,659,327

 

Total comprehensive income attributable to noncontrolling interest

  

812,091

   

1,116,579

 

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:

  

13,594,530

   

12,978,504

 

Basic and diluted

  

0.18

   

0.11

 

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