Greenland Technologies Reports Fourth Quarter and Full Year 2021 Unaudited Financial Results

-          48% Increase in FY21 Revenue to $98.8 Million Compared to FY20
-          14% Increase in FY21 Net Income to $7.3 Million Compared to FY20
-          Cash Balance Nearly Doubles to $17.8 Million
-          Company Expects Continued Growth in 2022 as Production Ramps

EAST WINDSOR, N.J., March 28, 2022 /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, 2021.

Full Year 2021 Financial and Operating Highlights

  • Total revenues were $98.8 million, an increase of 48% from $66.9 million in 2020.
  • Gross margin was 19.8%, an increase of 70 basis points year over year.
  • Net Income was $7.3 million, an increase of 14% from $6.4 million in 2020.
  • Number of transmission products sold was 141,431 units, an increase of 30% compared with 108,913 units in 2020.

Mr. Raymond Wang, Chief Executive Officer of Greenland Technologies Holding Corporation, commented, "This was a record year for Greenland as our team drove 48% growth in full year 2021 revenue compared to last year, while expanding our gross margin another 70 basis points to 19.8%. We introduced a series of popular new electric industrial vehicle models, expanded our new vehicle pipeline to reach additional categories in the industrial market and made major progress on our manufacturing strategy."

Mr. Wang added, "Our long-term vision remains for Greenland to be the global standard for electric industrial vehicles, which we believe deliver superior performance and a faster return on investment than traditional industrial vehicles. To that end, we recently announced a new distribution agreement with a minimum potential market value of $5 million to $8.4 million; and we announced new strategic partnerships for lithium battery solutions and autonomous vehicle technology. As a result, while we are pleased with our continued success and progress, we are even more excited about the Company's future, as we leverage our advantaged market position to capture an increased share of the growth opportunities in front of us."

Mr. Jing Jin, Chief Financial Officer of Greenland, commented: "We continued to drive record revenue growth and gross margin expansion led by higher transmission sales, while increasing investments in our infrastructure to support the next phase of our growth. Costs have increased in nearly all areas from materials to shipping, which we were able to partially mitigate through prior agreements we had in place but this remains a near-term headwind. Importantly, we continued to add to our revenue generating headcount, with sales and marketing hires, while also more than doubling our investment in R&D in support of our expanded product roadmap. Despite the significant increase in investment, operating expense as a percentage of total revenues increased only 2.3 percentage points from the prior year to 11.5% for the full year 2021. Finally, we took the opportunity in 2021 to fortify our balance sheet, giving us added flexibility as we move forward with the next phase of Greenland's growth."

Recent Developments and Strategic Highlights:

  • Major U.S. Manufacturing Expansion: Greenland formally selected Maryland as the site for the next phase of the Company's major U.S. manufacturing expansion. Maryland's Governor Larry Hogan, noted, "As we continue to invest in new products and technologies, Greenland's vision and growth in electric industrial vehicles will fit in well with our state's innovation ecosystem."
  • $5 million to $8.4 Million Minimum Potential Agreement: Greenland announced a new distribution agreement with a minimum potential market value of $5 million to $8.4 million to sell electric vehicles in Morocco. The agreement includes both fixed and adjustable minimum purchase requirements across a multi-year term to accommodate Greenland's expanding electric industrial vehicle product line.
  • Launch of GEX-8000 Electric Industrial Excavator: Greenland launched its latest innovative industrial vehicle, the GEX-8000 Industrial Electric Excavator, marking another major expansion in the Company's product roadmap. The GEX-8000 Industrial Electric Excavator is powered by a 141 kWh lithium battery that boasts a rapid 2 hour charge time with 9 hours of operating time per charge. With an 8.0 ton rated load, the powerful yet zero operating emissions GEX-8000 is positioned to help further modernize the global industrial equipment market.
  • Launch of GEL-1800 Electric Wheeled Front Loader: Greenland's new GEL-1800 Electric Loader is powered by an environmentally-friendly 141 KWh lithium battery. The zero operating emissions GEL-1800 boasts a rapid 2 hour charge, with nine hours of operating time on a single charge. The GEL-1800 answers some of the biggest issues facing modern facility managers, with its clean and sustainable power, zero operating emissions, and both 60% less operating noise and lower maintenance costs compared to diesel internal combustion vehicles. 
  • Lithium Battery Strategic Partnership: Greenland announced an exciting new strategic partnership with Princeton NuEnergy Inc. The two companies will collaborate to create a safe and sustainable recycling solution for end-of-life lithium-ion batteries used in Greenland's electric industrial vehicles including electric forklifts, electric loaders and electric excavators to further minimize their environmental footprint.
  • Self-Driving / Autonomous Vehicle Partnership: There are currently more than 850,000 forklifts operating in the U.S. alone. Greenland and Cyngn will work together to bring scalable, secure, and reliable self-driving capabilities to this widely-used and ubiquitous vehicle type, and other industrial applications.

Full Year 2021 Financial Results

Total revenues were $98.8 million, an increase of 48% from $66.9 million in 2020. The increase was primarily due to the significant increase in our sales volume that resulted from increased customer demand and Greenland's effective supply chain management, which allowed it to partially mitigate the impact from logistics constraints and materials shortages. The number of transmission products sold increased 30% to 141,431 units from 108,913 units in 2020.

Costs of goods sold were $79.2 million, an increase of 47% from $54.1 million in 2020. The increase was primarily due to the increase in sales volume and the increase in raw material prices.

Gross profit was $19.6 million, an increase of 53% from $12.8 million in 2020. Gross margin was 19.8%, up 70 basis points from 2020. The increase was primarily due to the ongoing strategic product mix shift towards higher value, more sophisticated products, such as hydraulic transmission products. 

Total operating expenses were $11.3 million, up 86% from $6.1 million in 2020. Operating expense as a percentage of total revenues was 11.5%, an increase of 2.3 percentage points from 2020. The increase in operating expenses was primarily due to the Company's investments in support of its higher revenue level and targeted growth, with an expansion of its revenue generating headcount and a more than doubling of its R&D for the full year 2021 compared to the full year 2020.

Income from operations was $8.3 million, an increase of 23% from $6.7 million in 2020. 

Net Income was $7.3 million, an increase of 14% from $6.4 million in 2020.

Basic and diluted net income per ordinary share was $0.58, compared with $0.67 in 2020.

Fourth Quarter 2021 Financial Results

Total revenues were $22.9 million, compared with $23.9 million in the fourth quarter of 2020. The slight decline was due to the recognition of orders that accumulated during the pandemic but were not fulfilled until the fourth quarter of 2020, combined with the adverse impact in the fourth quarter of 2021 of ongoing supply chain constraints that limited availability of necessary materials and components. The number of transmission products sold was 31,349 units, compared with 37,164 units in the fourth quarter of 2020.

Costs of goods sold were $19.3 million, almost unchanged from the fourth quarter of 2020.

Gross profit was $3.7 million, compared with $4.6 million in the fourth quarter of 2020. Gross margin was 16.1%, compared with 19.3% in the fourth quarter of 2020, as a result of the lower revenue and higher raw material prices. 

Total operating expenses were $3.8 million, up 103% from $1.9 million in the fourth quarter of 2020. Operating expense as a percentage of total revenues was 16.5%, compared to 7.8% in the fourth quarter of 2020. The increase in operating expenses was primarily due to the Company's investments in support of its growth strategy, with an expansion of its revenue generating headcount and 180% increase in its R&D on a year over year basis. 

Loss from operations was $0.1 million, compared with income from operations of $2.7 million in the fourth quarter of 2020. 

Net Income was $0.4 million, compared with $2.2 million in the fourth quarter of 2020.

Basic and diluted net income per ordinary share was $0.03, compared with $0.31 in the fourth quarter of 2020.

Business Outlook

For the full year of 2022, the Company expects to deliver between 100 to 150 vehicles.

The above outlook is based on information available as of the date of this press release and reflects the Company's current and preliminary expectations regarding its business situation and market conditions. The outlook is subject to change, especially considering the uncertainties which may result from how the COVID-19 pandemic develops globally.

Conference Call

The Greenland Technologies Holding Corporation management team will host an earnings conference call at 8:00 AM on Monday, March 28, 2022, U.S. Eastern Time (8:00 PM on March 28, 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/2738409

A replay of the conference call may be accessed by phone at the following numbers until April 5, 2022. To access the replay, please reference the conference ID 2738409.


Phone Number

International

+61 2 9003-4211

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. For 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: feifei@blueshirtgroup.com

Ms. Miranda Tian                                                          
Phone: +86 135-2551-1189
Email: miranda@blueshirtgroup.com

In the United States:

The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: Julia@blueshirtgroup.com

Global IR Partners
Mr. David Pasquale
Phone: +1 914-337-8801
Email: GTEC@globalirpartners.com

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(IN U.S. DOLLARS)







For the years ended

December 31,




2021



2020


REVENUES


$

98,839,900



$

66,864,375


COST OF GOODS SOLD



79,246,280




54,051,367


GROSS PROFIT



19,593,620




12,813,008


Selling expenses



1,868,156




1,588,302


General and administrative expenses



3,948,850




2,131,405


Research and development expenses



5,526,546




2,384,951


Total operating expenses


$

11,343,552



$

6,104,658


INCOME FROM OPERATIONS


$

8,250,068



$

6,708,350


Interest income



68,295




2,645


Interest expense



(587,264)




(930,634)


Loss on disposal of property and equipment



1,785




(79,216)


Other income/(loss)



1,378,597




1,002,642


Remeasurement gain from change in functional currency



-




1,940,773


INCOME BEFORE INCOME TAX


$

9,111,481



$

8,644,560


INCOME TAX



1,843,260




2,272,997


NET INCOME


$

7,268,221



$

6,371,563


LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST



1,002,643




(386,939)


NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING
    CORPORATION AND SUBSIDIARIES


$

6,265,578



$

6,758,502


OTHER COMPREHENSIVE INCOME (LOSS):



1,476,710




937,629


Unrealized foreign currency translation income (loss) attribute to Greenland
technologies holding corporation and subsidiaries



1,077,324




298,056


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



399,386




639,573


Comprehensive income



7,342,902




7,056,558


Noncontrolling interest



1,402,029




252,634


WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:









Basic and diluted



10,840,638




10,037,249


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









Basic and diluted



0.58




0.67


See accompanying notes to the consolidated financial statements.

 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020

(IN U.S. DOLLARS)










December 31,



December 31,




2021



2020









ASSETS







Current assets









Cash and cash equivalents


$

11,062,590



$

7,159,015


Restricted cash



6,738,302




2,244,038


Short Term Investment



2,105,938




-


Notes receivable



37,551,121




30,803,772


Accounts receivable, net of allowance for doubtful accounts of $859,319 and
    $986,532, respectively



15,915,002




12,408,548


Inventories



25,803,474




15,380,063


Due from related parties-current



39,679,565




38,535,171


Advance to suppliers



434,893




447,901


Prepayments and other current assets



14,518




664,926


Total Current Assets


$

139,305,403



$

107,643,434











Non-current asset









Property, plant, equipment and construction in progress, net



18,957,553




20,135,339


Land use rights, net



4,035,198




4,035,254


Deferred tax assets



141,623




158,455


Goodwill



3,890




3,890


Operating lease right-of-use assets



80,682




-


Other non-current assets



44,093




2,365


Total non-current assets


$

23,263,039



$

24,335,303


TOTAL ASSETS


$

162,568,442



$

131,978,737


 

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020 (Continued)

(IN U.S. DOLLARS)










December 31,



December 31,




2021



2020









Current Liabilities









Short-term bank loans


$

8,760,945



$

18,487,356


Notes payable-bank acceptance notes



42,093,061




25,889,067


Accounts payable



29,064,132




22,005,260


Taxes payables



108,058




-


Customer deposits



387,919




366,029


Due to related parties



3,619,459




9,051,119


Other current liabilities



1,198,427




2,212,325


Current portion of operating lease liabilities



33,308




-


Lease obligations - current



197,915




797,179


Total current liabilities


$

85,463,224



$

78,808,335











Long-term liabilities









Lease obligations – non-current



-




166,292


Long term operating lease  liabilities



47,614




-


Other long-term liabilities



2,212,938




2,342,648


Total long-term liabilities


$

2,260,552



$

2,508,940


TOTAL LIABILITIES


$

87,723,776



$

81,317,275











COMMITMENTS AND CONTINGENCIES









EQUITY









Ordinary shares, no par value, 11,329,530 shares authorized; 11,329,530 and
    10,225,142 shares issued and outstanding as of December 31, 2021 and
    December 31, 2020.



-




-


Additional paid-in capital



23,759,364




13,707,398


Statutory reserves



3,842,331




4,517,117


Retained earnings



33,668,696




26,728,332


Accumulated other comprehensive income (loss)



1,014,399




(62,925)


Total shareholders' equity


$

62,284,790



$

44,889,922


Non-controlling interest



12,559,876




5,771,540


TOTAL EQUITY


$

74,844,666



$

50,661,462











TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

162,568,442



$

131,978,737



See accompanying notes to the consolidated financial statements.