LithiumBank Resources

Greenland Technologies Reports Fourth Quarter and Full Year 2022 Unaudited Financial Results

30 March 2023
  • 4Q22 Gross Margin Rises 380 Basis Points Year over Year
  • FY22 Gross Margin Rises 200 Basis Points Year over Year
  • Cash Balance Rises 47% to $16.3 Million as of End-22

EAST WINDSOR, N.J., March 30, 2023 /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 fourth quarter and full year ended December 31, 2022.

Full Year 2022 Financial and Operating Highlights

  • Revenue was $90.8 million, compared with $98.8 million a year ago.
  • Gross margin was 21.8%, up 200 basis point from 19.8% in 2021 on improved product mix.
  • Net income was $6.6 million, compared with $7.3 million in 2021.
  • Transmissions products sold were 129,686 units, compared with 141,431 units last year.

Mr. Raymond Wang, Chief Executive Officer of Greenland Technologies Holding Corporation, commented, "Even though China's zero covid restrictions put pressure on transmission product sales in the fourth quarter and the full year, we maintained our competitive position in the sector. Looking forward, we are beginning to see demand recover following the end of China's zero covid restrictions. As a result, we anticipate revenue growth for our core transmissions business in 2023."

Mr. Wang continued, "We continue to make progress with our HEVI division of all-electric industrial heavy equipment.  I am proud to announce that we have multiple active product pilots and demos with flagship organizations such as United Rentals, Inc, the world's largest equipment rental company. The product demand and growth potential we have witnessed further strengthens our resolve to continue investing in HEVI infrastructure, talent and technology.  We will pioneer and lead the industry's transition from heavy emission fossil fuels to cleaner alternative power."

Mr. Jing Jin, Chief Financial Officer of Greenland, commented: "Despite the challenging environment, our deliberate transition towards higher value transmission products helped improve our gross margin to 19.9% in the fourth quarter and 21.8% for the full year, representing a 380 and 200 basis point improvement year over year, respectively. Additionally, our balance sheet remains strong with $16.3 million cash on hand. Given our strong financials and significant growth potential we believe Greenland's current market capitalization does not accurately reflect our true value."

Recent Developments and Strategic Highlights:

  • Multiple Active Product Pilots: Greenland, through its HEVI subsidiary, has secured active product demos and pilots with market-leading organizations such as United Rentals, Inc.
  • Ramp Up of Assembly Site in Baltimore, Maryland: The initial US-based assembly site continues to ramp up its staff, procedures and equipment with the first machine expected to roll off the assembly line in Q2 2023.
  • Expansion of HEVI Leadership Team: Greenland continues to invest in HEVI by expanding and developing its leadership team including a new Chief Operating Officer to accelerate business development.

Full Year 2022 Financial Results

Revenue was $90.8 million, a decrease of 8% from $98.8 million in 2021, primarily due to lower sales volume resulting from pandemic lockdowns in China and negative FX from a stronger dollar. The number of transmission products sold was 129,686 units, compared with 141,431 units in 2021.  On an RMB basis, excluding the impact of FX, total revenue decreased by approximately 3.7% from 2021.

Costs of goods sold were $71 million, a decrease of 10% from $79.2 million in 2021, primarily due to the decrease in sales volume.

Gross profit was $19.8 million, a slight increase of 1.2% from $19.6 million in 2021. Gross margin was 21.8%, up 200 basis points from 19.8% in 2021, as a result of a strategic shift in Greenland's product mix towards higher value, and more sophisticated products, such as hydraulic transmissions.

Total operating expenses were $13.9 million, compared with $11.3 million in 2021. Operating expenses as a percentage of total revenue was 15.3%, compared with 11.5% in 2021. The increase in operating expenses were primarily due to higher employee expense, increased marketing activities and higher legal and consultancy fees associated with the Company's expansion.

Income from operations was $6 million, compared with $8.3 million in 2021. 

Net income was $6.6 million, compared with $7.3 million in 2021.

Basic and diluted net income per ordinary share were both $0.30, compared with $0.58 in 2021.

Cash and cash equivalents were $16.3 million as of December 31, 2022, an increase of 47% from $11.0 million as of December 31, 2021.

Fourth Quarter 2022 Financial Results

Revenue was $19.1 million, a decrease of 17% from $22.9 million in the fourth quarter of 2021, primarily due to lower sales volume resulting from pandemic lockdowns in China and negative FX from a stronger dollar. The number of transmission products sold was 27,542 units, compared with 31,349 units in the fourth quarter of 2021. On an RMB basis, excluding the impact of FX, total revenues decreased by approximately 6% from the fourth quarter of 2021.  

Costs of goods sold were $15.3 million, a decrease of 21% from $19.3 million in the fourth quarter of 2021, primarily due to the decrease in sales volume.

Gross profit was $3.8 million, compared with $3.7 million in the fourth quarter of 2021. Gross margin was 19.9%, up 380 basis points from 16.1% in the fourth quarter of 2021, as a result of a strategic shift in Greenland's product mix towards higher value, and more sophisticated products, such as hydraulic transmissions.

Total operating expenses were $5.5 million, compared with $3.8 million in the fourth quarter of 2021. Operating expenses as a percentage of total revenues was 28.8%, compared with 16.5% in the fourth quarter of 2021. The increase in operating expenses were primarily due to higher employee expense, increased marketing activities and higher legal and consultancy fees associated with the Company's expansion.

Loss from operations was $1.7 million, compared with $0.1 million in the fourth quarter of 2021. 

Net loss was $0.8 million, compared with net income of $0.4 million in the fourth quarter of 2021.

Basic and diluted net loss per ordinary share were both $0.08, compared with basic and diluted net income of $0.03 per ordinary share in the fourth quarter of 2021.

Conference Call

Greenland Technologies management will host an earnings conference call at 8:00 AM on Thursday, March 30, 2023, U.S. Eastern Time (8:00 PM on March 30, 2022, Beijing/Hong Kong Time).

Participant Registration

Investors and analysts interested in participating in Greenland's fourth quarter and full year 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/BIdcb2edf13f0141819e35adc0a45def6b

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 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 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 MONTHS AND YEARS ENDED DECEMBER 31, 2022 and 2021

 

(IN U.S. DOLLARS)

 
  
  

For the three months ended

December 31,

  

For the years ended

December 31,

 
  

2022

  

2021

  

2022

  

2021

 

REVENUES

 

$

19,134,350

  

$

22,939,906

  

$

90,830,674

  

$

98,839,900

 

COST OF GOODS SOLD

  

15,319,047

   

19,253,272

   

70,995,940

   

79,246,280

 

GROSS PROFIT

  

3,815,303

   

3,686,634

   

19,834,734

   

19,593,620

 

Selling expenses

  

950,626

   

470,694

   

2,630,226

   

1,868,156

 

General and administrative expenses

  

1,742,430

   

1,134,730

   

5,459,020

   

3,948,850

 

Research and development expenses

  

2,818,374

   

2,189,490

   

5,786,946

   

5,526,546

 

Total operating expenses

 

$

5,511,430

  

$

3,794,914

  

$

13,876,192

  

$

11,343,552

 

INCOME FROM OPERATIONS

 

$

(1,696,127)

  

$

(108,280)

  

$

5,958,542

  

$

8,250,068

 

Interest income

  

21,578

   

54,130

   

56,817

   

68,295

 

Interest expense

  

(80,327)

   

(78,905)

   

(402,968)

   

(587,264)

 

(Loss) income on disposal of property and equipment

  

(816)

   

2,744

   

(1,511)

   

1,785

 

Other income

  

286,926

   

548,082

   

1,705,506

   

1,378,597

 

INCOME BEFORE INCOME TAX

 

$

(1,468,766)

  

$

417,771

  

$

7,316,386

  

$

9,111,481

 

INCOME TAX

  

(693,044)

   

(1,359)

   

699,691

   

1,843,260

 

NET INCOME

 

$

(775,722)

  

$

419,130

  

$

6,616,695

  

$

7,268,221

 

LESS: NET INCOME ATTRIBUTABLE TO
   NONCONTROLLING INTEREST

  

216,993

   

91,221

   

3,057,130

   

1,002,643

 

NET INCOME (LOSS) ATTRIBUTABLE TO
   GREENLAND TECHNOLOGIES HOLDING
   CORPORATION AND SUBSIDIARIES

 

$

(992,715)

  

$

327,909

  

$

3,559,565

  

$

6,265,578

 

OTHER COMPREHENSIVE INCOME (LOSS):

  

2,402,406

   

1,506,491

   

(5,740,161)

   

1,476,710

 

Unrealized foreign currency translation income (loss)
   attributable to Greenland Technologies Holding
   Corporation and subsidiaries

  

1,600,657

   

1,108,637

   

(3,845,818)

   

1,077,324

 

Unrealized foreign currency translation income (loss)
   attributable to Noncontrolling interest

  

801,749

   

397,854

   

(1,894,343)

   

399,386

 

Comprehensive income (loss)

  

607,942

   

1,436,546

   

(286,253)

   

7,342,902

 

Noncontrolling interest

  

1,018,742

   

489,075

   

1,162,787

   

1,402,029

 

WEIGHTED AVERAGE ORDINARY SHARES
   OUTSTANDING:

                

Basic and diluted

  

12,657,590

   

11,329,530

   

11,886,876

   

10,840,638

 

NET INCOME (LOSS) PER ORDINARY SHARE
   ATTRIBUTABLE TO OWNERS OF THE
   COMPANY:

                

Basic and diluted

  

(0.08)

   

0.03

   

0.30

   

0.58

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

AS OF DECEMBER 31, 2022 and 2021

 

(IN U.S. DOLLARS)

 
  
  

December 31,

  

December 31,

 
  

2022

  

2021

 
       

   ASSETS

      

   Current assets

      

Cash and cash equivalents

 

$

16,295,695

  

$

11,062,590

 

Restricted cash

  

3,433,361

   

6,738,302

 

Short Term Investment

  

7,800,723

   

2,105,938

 

Notes receivable

  

28,748,879

   

37,551,121

 

Accounts receivable, net of allowance for doubtful accounts of $762,325 and
   $859,319, respectively

  

14,337,760

   

15,915,002

 

Inventories

  

23,096,382

   

25,803,474

 

Due from related parties-current

  

36,669,907

   

39,679,565

 

Advance to suppliers

  

412,766

   

434,893

 

Prepayments and other current assets

  

1,568,687

   

14,518

 

Total Current Assets

 

$

132,364,160

  

$

139,305,403

 
         

Non-current asset

        

Property, plant, equipment and construction in progress, net

  

15,585,214

   

18,957,553

 

Land use rights, net

  

3,639,067

   

4,035,198

 

Other intangible assets

  

147,465

   

-

 

Long term investment

  

250,000

   

-

 

Deferred tax assets

  

219,207

   

141,623

 

Goodwill

  

-

   

3,890

 

Operating lease right-of-use assets

  

2,627,110

   

80,682

 

Other non-current assets

  

283,118

   

44,093

 

Total non-current assets

 

$

22,751,181

  

$

23,263,039

 

TOTAL ASSETS

 

$

155,115,341

  

$

162,568,442

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

AS OF DECEMBER 31, 2022 and 2021 (Continued)

 

(IN U.S. DOLLARS)

 
  
  

December 31,

  

December 31,

 
  

2022

  

2021

 
       

  Current Liabilities

      

  Short-term bank loans

 

$

8,986,255

  

$

8,760,945

 

  Notes payable-bank acceptance notes

  

28,272,472

   

42,093,061

 

  Accounts payable

  

24,817,165

   

29,064,132

 

  Taxes payables

  

192,478

   

108,058

 

  Customer deposits

  

227,432

   

387,919

 

  Due to related parties

  

1,693,315

   

3,619,459

 

  Other current liabilities

  

1,547,390

   

1,198,427

 

  Current portion of operating lease liabilities

  

472,182

   

33,308

 

  Lease obligations - current

  

-

   

197,915

 

  Total current liabilities

 

$

66,208,689

  

$

85,463,224

 
         

  Long-term liabilities

        

  Long term operating lease liabilities

  

2,176,130

   

47,614

 

  Other long-term liabilities

  

1,812,759

   

2,212,938

 

  Total long-term liabilities

 

$

3,988,889

  

$

2,260,552

 

  TOTAL LIABILITIES

 

$

70,197,578

  

$

87,723,776

 
         

  COMMITMENTS AND CONTINGENCIES

        

  EQUITY

        

  Ordinary shares, no par value, 12,978,504 shares authorized; 12,978,504 and
     11,329,530 shares issued and outstanding as of December 31, 2022 and
     December 31, 2021.

  

-

   

-

 

  Additional paid-in capital

  

32,955,927

   

23,759,364

 

  Statutory reserves

  

3,842,331

   

3,842,331

 

  Retained earnings

  

37,228,261

   

33,668,696

 

  Accumulated other comprehensive income (loss)

  

(2,831,419)

   

1,014,399

 

  Total shareholders' equity

 

$

71,195,100

  

$

62,284,790

 

  Non-controlling interest

  

13,722,663

   

12,559,876

 

  TOTAL EQUITY

 

$

84,917,763

  

$

74,844,666

 
         

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

155,115,341

  

$

162,568,442

 

Sign Up To Get Daily Green Stock News In Your Inbox

Please review our Disclaimer and Privacy Policy before subscribing.

STOCK QUOTE

FEATURED GREEN STOCK

Sienna Resources

Sienna Resources is at the forefront of the battery metals revolution. The company is one of the largest landholders in the prolific Clayton Valley district, which is the only lithium producing region in the United States and located just miles...

CLICK TO LEARN MORE

FEATURED GREEN STOCK

Hillcrest Energy Technologies

Hillcrest Energy Technologies is a clean technology company developing high value, high performance power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable...

CLICK TO LEARN MORE

COPYRIGHT ©2022 GREEN STOCK NEWS