-3Q22 Net Income Increases 67% Compared to 3Q21
EAST WINDSOR, N.J., Nov. 9, 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 third quarter ended September 30, 2022.
Third Quarter 2022 Financial and Operating Highlights
Mr. Raymond Wang, Chief Executive Officer of Greenland Technologies Holding Corporation, commented, "While we are not immune to the ongoing global supply chain challenges, inflationary pressures and lockdowns in China, we made significant progress in the areas that will drive our long-term growth and build value for shareholders. For example, we are firmly on track with our capacity plans for the U.S., and we are seeing an improvement in the supply chain with lower freight costs and speed. We are also benefitting from the full support of Maryland's local and state level officials after formally opening our new Baltimore facility. They share in our leadership vision of the opportunities for electrification of industrial vehicles and the positive economic impact from job creation, related commerce and positives for the environment. This represents a significant opportunity for Greenland and the communities we operate in."
"We are also pleased with the additional innovation and further development with our strategic partners of new features for our vehicles that not only differentiate our HEVI brand but add premium value for our customers, including tracking now available with vehicle purchase. This is an essential selling point as operators laser focus on fleet ROI and asset utilization. Overall, we continue to benefit from several Greenland-specific catalysts. We are entering Q4 with a solid backlog and expect our results to more accurately reflect our business fundamentals as we move through 2023 and current headwinds become tailwinds. Longer-term we continue to make steady progress toward our ambitious goals, including the ramping our new U.S. assembly facility. This will serve as a powerful, high visibility showcase for our vehicles, which we expect will drive sales by helping us convert customer interest into orders when they see our innovative vehicles in person."
Mr. Jing Jin, Chief Financial Officer of Greenland, commented: "Our third quarter revenue was negatively impacted by the stronger dollar. Excluding FX impact, our revenue in Chinese RMB actually grew 2% year-over-year. During Q3, we also improved our operating efficiency by streamlining and simplifying our product lines, which led to a 10% decrease in our operating expenses and contributed to our 67% increase in net income. Looking ahead, we will continue to manage operating expenses closely as we shift our focus towards ramping up HEVI production capacity and deployment capabilities."
Recent Developments and Strategic Highlights:
Third Quarter 2022 Financial Results
Total revenue was $21.8 million, compared with $23.1 million in the third quarter of 2021, primarily due to the impact of unfavorable foreign exchange. On an RMB basis, total revenues increased by approximately 2% from the third quarter of 2021. The number of transmission products sold was 31,303 units, up 1% from 31,050 units in the third quarter of 2021.
Costs of goods sold were $17.0 million, a decrease of 6% from $18.0 million in the third quarter of 2021, primarily due to the impact of foreign exchange.
Gross profit was $4.8 million, compared with $5.1 million in the third quarter of 2021, primarily due to the impact of unfavorable foreign exchange. Gross margin was 22.1%, on par with the third quarter of 2021.
Total operating expenses were $2.7 million, a decrease of 10% from $3.0 million in the third quarter of 2021. Operating expenses as a percentage of total revenues was 12.6%, down 60 basis points from 13.2% in the third quarter of 2021. The decrease in operating expenses was primarily due to improved operating efficiency.
Income from operations was $2.07 million, an increase of 1% from $2.05 million in the third quarter of 2021.
Net income was $2.1 million, an increase of 67% from $1.3 million in the third quarter of 2021, primarily due to improved operating efficiency, increase in grant income and lower effective tax rate.
Basic and diluted net income per ordinary share were both $0.1, compared with $0.09 in the third quarter of 2021.
Conference Call
Greenland Technologies management will host an earnings conference call at 8:00 AM on Wednesday, November 9, 2022, U.S. Eastern Time (9:00 PM on November 9, 2022, Beijing/Hong Kong Time).
Participant Registration
Investors and analysts interested in participating in Greenland's third quarter 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/BIe16b8fc2914c4c76ba13993c76c2a903
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.
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 AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 |
||||||||||||||||
(UNAUDITED, IN U.S. DOLLARS) |
||||||||||||||||
For the three months ended September 30, |
For the nine months ended September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
REVENUES |
$ |
21,786,862 |
$ |
23,084,793 |
$ |
71,696,324 |
$ |
75,899,994 |
||||||||
COST OF GOODS SOLD |
16,974,566 |
17,987,363 |
55,676,893 |
59,993,008 |
||||||||||||
GROSS PROFIT |
4,812,296 |
5,097,430 |
16,019,431 |
15,906,986 |
||||||||||||
Selling expenses |
521,865 |
522,770 |
1,679,600 |
1,397,462 |
||||||||||||
General and administrative expenses |
1,192,210 |
1,150,769 |
3,716,590 |
2,814,120 |
||||||||||||
Research and development expenses |
1,023,443 |
1,372,215 |
2,968,572 |
3,337,056 |
||||||||||||
Total operating expenses |
$ |
2,737,518 |
$ |
3,045,754 |
$ |
8,364,762 |
$ |
7,548,638 |
||||||||
INCOME FROM OPERATIONS |
$ |
2,074,778 |
$ |
2,051,676 |
$ |
7,654,669 |
$ |
8,358,348 |
||||||||
Interest income |
12,790 |
4,737 |
35,239 |
14,165 |
||||||||||||
Interest expense |
(125,981) |
(106,506) |
(322,641) |
(508,359) |
||||||||||||
Loss on disposal of property and equipment |
(301) |
- |
(695) |
(959) |
||||||||||||
Other income |
655,838 |
231,466 |
1,418,580 |
830,515 |
||||||||||||
INCOME BEFORE INCOME TAX |
$ |
2,617,124 |
$ |
2,181,373 |
$ |
8,785,152 |
$ |
8,693,710 |
||||||||
INCOME TAX |
518,931 |
927,844 |
1,392,735 |
1,844,619 |
||||||||||||
NET INCOME |
$ |
2,098,193 |
$ |
1,253,529 |
$ |
7,392,417 |
$ |
6,849,091 |
||||||||
LESS: NET INCOME ATTRIBUTABLE TO |
820,229 |
225,181 |
2,840,137 |
911,422 |
||||||||||||
NET INCOME ATTRIBUTABLE TO GREENLAND |
$ |
1,277,964 |
$ |
1,028,348 |
$ |
4,552,280 |
$ |
5,937,669 |
||||||||
OTHER COMPREHENSIVE INCOME (LOSS): |
(4,552,121) |
(605,515) |
(8,253,663) |
(29,781) |
||||||||||||
Unrealized foreign currency translation income (loss) |
(2,974,517) |
(433,694) |
(5,446,475) |
(31,313) |
||||||||||||
Unrealized foreign currency translation income (loss) |
(1,577,604) |
(171,821) |
(2,807,188) |
1,532 |
||||||||||||
Comprehensive income (loss) |
(1,696,553) |
594,654 |
(894,195) |
5,906,356 |
||||||||||||
Noncontrolling interest |
(757,375) |
53,360 |
32,949 |
912,954 |
||||||||||||
WEIGHTED AVERAGE ORDINARY SHARES |
||||||||||||||||
Basic and diluted |
12,222,387 |
11,329,530 |
11,628,243 |
10,715,132 |
||||||||||||
NET INCOME PER ORDINARY SHARE |
||||||||||||||||
Basic and diluted |
0.10 |
0.09 |
0.39 |
0.55 |
GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021 |
||||||||
(UNAUDITED, IN U.S. DOLLARS) |
||||||||
September 30, |
December 31, |
|||||||
2022 |
2021 |
|||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
11,306,600 |
$ |
11,062,590 |
||||
Restricted cash |
3,720,931 |
6,738,302 |
||||||
Short Term Investment |
12,243,140 |
2,105,938 |
||||||
Notes receivable |
31,606,518 |
37,551,121 |
||||||
Accounts receivable, net of allowance for doubtful accounts of $774,452 and |
18,344,356 |
15,915,002 |
||||||
Inventories |
21,884,848 |
25,803,474 |
||||||
Due from related parties-current |
35,462,308 |
39,679,565 |
||||||
Advance to suppliers |
676,823 |
434,893 |
||||||
Prepayments and other current assets |
96,323 |
14,518 |
||||||
Total Current Assets |
$ |
135,341,847 |
$ |
139,305,403 |
||||
Non-current asset |
||||||||
Property, plant, equipment and construction in progress, net |
15,503,755 |
18,957,553 |
||||||
Land use rights, net |
3,550,039 |
4,035,198 |
||||||
Other intangible assets |
157,153 |
- |
||||||
Deferred tax assets |
126,872 |
141,623 |
||||||
Goodwill |
3,890 |
3,890 |
||||||
Operating lease right-of-use assets |
2,748,910 |
80,682 |
||||||
Other non-current assets |
242,866 |
44,093 |
||||||
Total non-current assets |
$ |
22,333,485 |
$ |
23,263,039 |
||||
TOTAL ASSETS |
$ |
157,675,332 |
$ |
162,568,442 |
September 30, |
December 31, |
||||||
2022 |
2021 |
||||||
Current Liabilities |
|||||||
Short-term bank loans |
$ |
8,715,822 |
$ |
8,760,945 |
|||
Notes payable-bank acceptance notes |
33,716,344 |
42,093,061 |
|||||
Accounts payable |
23,954,824 |
29,064,132 |
|||||
Taxes payables |
- |
108,058 |
|||||
Customer deposits |
196,125 |
387,919 |
|||||
Due to related parties |
1,594,227 |
3,619,459 |
|||||
Other current liabilities |
1,622,362 |
1,198,427 |
|||||
Current portion of operating lease liabilities |
462,365 |
33,308 |
|||||
Long-term payables - current |
- |
197,915 |
|||||
Total current liabilities |
$ |
70,262,069 |
$ |
85,463,224 |
|||
Long-term liabilities |
|||||||
Long-term payables – non-current |
- |
- |
|||||
Long term operating lease liabilities |
2,293,844 |
47,614 |
|||||
Other long-term liabilities |
1,828,340 |
2,212,938 |
|||||
Total long-term liabilities |
$ |
4,122,184 |
$ |
2,260,552 |
|||
TOTAL LIABILITIES |
$ |
74,384,253 |
$ |
87,723,776 |
|||
COMMITMENTS AND CONTINGENCIES |
|||||||
EQUITY |
|||||||
Ordinary shares, no par value, unlimited shares authorized; 12,579,530 and |
- |
- |
|||||
Additional paid-in capital |
32,955,927 |
23,759,364 |
|||||
Statutory reserves |
3,842,331 |
3,842,331 |
|||||
Retained earnings |
38,220,976 |
33,668,696 |
|||||
Accumulated other comprehensive income (loss) |
(4,432,076) |
1,014,399 |
|||||
Total shareholders' equity |
$ |
70,587,158 |
$ |
62,284,790 |
|||
Non-controlling interest |
12,703,921 |
12,559,876 |
|||||
TOTAL EQUITY |
$ |
83,291,079 |
$ |
74,844,666 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
157,675,332 |
$ |
162,568,442 |
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