GTEC
$7.31
Greenland Technologies Holding
($.39)
(5.06%)
Earnings Details
Quarter September 2020
Monday, November 23, 2020 8:00:00 AM
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Summary

Greenland Technologies Holding (GTEC) Recent Earnings

Greenland Technologies Holding (GTEC) reported Quarter September 2020 earnings of $0.02 per share on revenue of $16.5 million..

Results
Reported Earnings
$0.02
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$16.5 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Greenland Technologies Holding Corporation Reports Third Quarter 2020 Results

Highlights (3Q 2020 compared to 3Q 2019)

  • 38% Increase in Revenue
  • 70% 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 $16.52 million for the three months ended September 30, 2020, representing an increase of approximately $4.57 million, or 38.2%, as compared to approximately $11.95 million for the three months ended September 30, 2019. The year over year increase reflects ongoing customer demand growth and the fulfillment of backlog orders from the first quarter of 2020 when the Company implemented a COVID-19 related shutdown.

The total cost of goods sold was approximately $13.12 million for the three months ended September 30, 2020, representing an increase by approximately $3.17 million, or 31.9%, as compared to approximately $9.95 million for the three months ended September 30, 2019. The year over year increase was due to the Company's higher sales volume.

The Company's gross profit was approximately $3.40 million for the three months ended September 30, 2020, representing an increase by approximately $1.40 million, or 69.8%, as compared to approximately $2.00 million for the three months ended September 30, 2019. Gross margin was approximately 20.6% and 16.7%, respectively, for the three months ended September 30, 2020 and for the three months ended September 30, 2019.

Income from operations for the three months ended September 30, 2020 was approximately $2.24 million, representing an increase of approximately $1.23 million, as compared to approximately $1.01 million for the three months ended September 30, 2019.

Net income was approximately $0.46 million for the three months ended September 30, 2020, representing an increase of approximately $0.22 million, as compared to approximately $0.24 million for the three months ended September 30, 2019.

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
September 30,



For the nine months ended
September 30,




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
   NONCONTROLLING INTEREST



252,068




86,346




535,898




420,650


NET INCOME ATTRIBUTABLE TO GREENLAND
   TECHNOLOGIES HOLDING CORPORATION
   AND SUBSIDIARIES


$

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)
   attributable to Greenland technologies holding
   corporation and subsidiaries



2,863,032




(1,662,531)




2,303,218




(1,740,796)


Unrealized foreign currency translation income attributable
   to Noncontrolling interest



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
   OUTSTANDING:

















Basic and diluted



10,021,142




7,500,000




10,017,204




7,500,000


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

















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 $7,354 and $15,338,
   respectively



20,018,092




16,156,692


Accounts receivable, net of allowance for doubtful accounts of $1,183,770 and
   $1,037,797, respectively



15,693,614




11,971,889


Inventories, net of provision for slow moving inventory of $76,922 and $134,535,
   respectively



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
   outstanding as of September 30, 2020 and December 31, 2019                         



-




-


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


 

 

Cision View original content:http://www.prnewswire.com/news-releases/greenland-technologies-holding-corporation-reports-third-quarter-2020-results-301178609.html

SOURCE Greenland Technologies Holding Corporation