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
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:
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: This email address is being protected from spambots. You need JavaScript enabled to view it.
Ms. Miranda Tian
Phone: +86 135-2551-1189
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
In the United States:
The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Global IR Partners
Mr. David Pasquale
Phone: +1 914-337-8801
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
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 | $ | 1,787,052 | $ | 2,128,568 | ||||
OTHER COMPREHENSIVE INCOME (LOSS): | 373,910 | (258,229) | ||||||
Unrealized foreign currency translation income (loss) attributable to Greenland | 248,082 | (189,103) | ||||||
Unrealized foreign currency translation income (loss) attributable to Noncontrolling | 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 | ||||||||
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 | 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 | - | - | ||||||
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 | ||||
| Last Trade: | US$1.88 |
| Daily Change: | 0.03 1.62 |
| Daily Volume: | 169,816 |
| Market Cap: | US$25.550M |
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