Drives Year-over-Year Revenue Growth and Gross Margin Expansion Achieves Major Milestone with Sales to Maryland’s Port of Baltimore Accelerates Expansion of the HEVI Authorized Service Provider (ASP) National Network
EAST WINDSOR, N.J., May 16, 2024 /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 first quarter ended March 31, 2024.
Raymond Wang, Chief Executive Officer of Greenland, said, "In the first quarter of 2024, we achieved a remarkable 64% year-over-year increase in our net income per share, driven by our focused execution of both short-term and long-term business strategies. Our electric vehicle (EV) sales are gaining significant traction, thanks to our strategic investments in developing a highly competitive lineup of electric industrial vehicles. These vehicles not only provide customers with the power and features necessary for their operations but also offer a renewable footprint and compelling return on investment. Furthermore, the expansion of our HEVI Authorized Service Provider ("ASP") national network is proving to be immensely beneficial. This network enhances confidence among HEVI owners, ensuring they have access to a robust and reliable service and support infrastructure wherever they operate. Our success in expanding our ASP national network is a key reason we have been building business momentum and have been able to secure numerous purchase agreements for our GEL-5000 and GEL-1800 all-electric loaders."
"In light of our significant progress and accelerating growth, the response from our customers and partners has been overwhelmingly positive, as they share in our dedication to excellence. We are thrilled about all of our pivotal strategic developments and eagerly anticipate providing further updates as we progress forward, as we strive to unlock value for all shareholders."
Jing Jin, Chief Financial Officer of Greenland, commented, "We started 2024 on a high note, with positive advancements in key financial metrics, strides in our long-term growth strategy, and a robust balance sheet to bolster our expansion initiatives. While we acknowledge challenges such as heightened shipping costs, credit losses, and staffing expenses associated with our expansion, we are optimistic that these headwinds will gradually ease as we progress through the year. This, in turn, we believe, will fuel additional profitable growth and enhance shareholder value."
Financial Highlights
Greenland’s revenue was $22.72 million for the three months ended March 31, 2024, representing an increase of $0.57 million, or 2.6%, as compared to $22.15 million for the three months ended March 31, 2023. The increase in revenue was primarily a result of the increase in the Company’s sales volume, driven by increasing market demand for transmission products for the three months ended March 31, 2024. On an RMB basis, revenue for the three months ended March 31, 2024 increased by approximately 7.8% as compared to the three months ended March 31, 2023.
Greenland’s gross profit was $5.65 million for the three months ended March 31, 2024, representing an increase of $0.13 million, or 2.2%, as compared to $5.52 million for the three months ended March 31, 2023. For the three months ended March 31, 2024 and 2023, Greenland’s gross margins were 24.9%. The increase in gross profit in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to the increase in sales volume.
Greenland’s cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the Company’s manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was $17.08 million for the three months ended March 31, 2024, representing an increase of $0.45 million, or 2.7%, as compared to $16.63 million for the three months ended March 31, 2023. Cost of goods sold increased due to the increase in sales volume.
Total operating expenses were $3.72 million, an increase of 18.1% from $3.15 million in the first quarter of 2023. The increase was primarily due to higher shipping fees, staffing costs and general and administrative expenses.
Income from operations for the three months ended March 31, 2024 was $1.93 million, representing a decrease of $0.44 million, as compared to that of $2.37 million for the three months ended March 31, 2023.
Net income was $3.57 million for the three months ended March 31, 2024, representing an increase of $1.11 million, as compared to that of $2.46 million for the three months ended March 31, 2023. Net income was $0.18 per basic and diluted share for the three months ended March 31, 2024, representing an increase of 64%, as compared to $0.11 for the three months ended March 31, 2023.
Cash equivalents refers to all highly liquid investments purchased with original maturity of three months or less. As of March 31, 2024, Greenland had $15.99 million of cash and cash equivalents, a decrease of approximately $7.00 million, or 30.44%, as compared to $22.98 million as of December 31, 2023. The decrease of cash and cash equivalents was mainly due to an increase in notes receivables and fixed deposit, as compared to that as of December 31, 2023.
As of March 31, 2024, Greenland had approximately $22.58 million of accounts receivables, an increase of $5.23 million, or 30.14%, as compared to $17.35 million as of December 31, 2023. The increase in accounts receivables was due to the increase in the Company’s sales volume and slowed down efforts in receivables collections. Greenland recorded $1.42 million and $0.87 million of allowance for expected credit losses as of March 31, 2024 and December 31, 2023, respectively.
As of March 31, 2024, Greenland had $32.13 million of notes receivables, which it expects to collect within twelve months. The increase was $4.99 million, or 18.39%, as compared to $27.14 million as of December 31, 2023.
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. 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 filed with the U.S. 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. 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 BALANCE SHEETS
(UNAUDITED, IN U.S. DOLLARS)
March 31,
December 31,
2024
2023
ASSETS
Current assets
Cash and cash equivalents
$
15,985,073
$
22,981,324
Restricted cash
3,850,217
5,208,063
Short Term Investment
2,794,690
2,818,068
Notes receivable
32,125,580
27,135,249
Accounts receivable, net
21,159,628
16,483,533
Inventories, net
24,746,244
24,596,795
Due from related parties-current, net
228,311
225,927
Advance to suppliers
606,469
288,578
Prepayments and other current assets
1,878,130
53,204
Total Current Assets
$
103,374,342
$
99,790,741
Non-current asset
Property, plant, equipment and construction in progress, net
14,110,492
13,698,997
Land use rights, net
3,369,694
3,448,505
Other intangible assets
162,579
189,620
Deferred tax assets
437,459
256,556
Right-of-use assets
1,996,392
2,125,542
Fixed deposit
15,395,169
9,916,308
Other non-current assets
335,304
1,050,698
Total non-current assets
$
35,807,089
$
30,686,226
TOTAL ASSETS
$
139,181,431
$
130,476,967
Current Liabilities
Short-term bank loans
$
8,254,505
$
3,042,296
Notes payable-bank acceptance notes
33,167,150
36,712,562
Accounts payable
30,845,465
25,272,528
Taxes payables
745,662
758,307
Customer deposits
339,838
137,985
Due to related parties
4,021,592
4,021,636
Other current liabilities
1,947,696
2,091,507
Lease liabilities
488,568
487,695
Total current liabilities
$
79,810,476
$
72,524,516
Long-term liabilities
Lease liabilities
1,560,279
1,684,614
Other long-term liabilities
1,447,490
1,529,831
Warrant liability
3,049,299
4,084,605
Total long-term liabilities
$
6,057,068
$
7,299,050
TOTAL LIABILITIES
$
85,867,544
$
79,823,566
COMMITMENTS AND CONTINGENCIES
–
–
Shareholders’ equity
Ordinary shares, no par value, unlimited shares authorized;
13,594,530 and 13,594,530 shares issued and outstanding as of
March 31, 2024 and December 31, 2023.
–
–
Additional paid-in capital
30,286,560
30,286,560
Statutory reserves
3,842,331
3,842,331
Retained earnings
21,037,336
18,535,133
Accumulated other comprehensive loss
(3,237,602)
(2,583,794)
Total shareholders’ equity
$
51,928,625
$
50,080,230
Non-controlling interest
1,385,262
573,171
TOTAL EQUITY
$
53,313,887
$
50,653,401
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
139,181,431
$
130,476,967
GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED, IN U.S. DOLLARS)
For the
three months ended
March 31,
2024
2023
Revenues
$
22,723,591
$
22,149,360
Cost of goods sold
17,076,522
16,625,930
Gross profit
5,647,069
5,523,430
Selling expenses
549,496
387,485
General and administrative expenses
2,183,429
1,641,904
Research and development expenses
987,724
1,119,891
Total operating expenses
$
3,720,649
$
3,149,280
INCOME FROM OPERATIONS
$
1,926,420
$
2,374,150
Interest income
169,213
30,393
Interest expense
(43,840)
(66,493)
Change in fair value of the warrant liability
1,035,306
–
Other income
296,148
417,382
INCOME BEFORE INCOME TAX
$
3,383,247
$
2,755,432
INCOME TAX BENEFIT (EXPENSE)
(186,001)
296,858
NET INCOME
$
3,569,248
$
2,458,574
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
1,067,045
1,011,599
NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES
HOLDING CORPORATION AND SUBSIDIARIES
$
2,502,203
$
1,446,975
OTHER COMPREHENSIVE INCOME (LOSS):
(908,762)
317,332
Unrealized foreign currency translation income (loss) attribute to Greenland
Technologies Holding Corporation and subsidiaries
(653,808)
212,352
Unrealized foreign currency translation income (loss) attribute to non-controlling
interest
(254,954)
104,980
Total comprehensive income attributable to Greenland Technologies Holding
Corporation and subsidiaries
1,848,395
1,659,327
Total comprehensive income attributable to noncontrolling interest
812,091
1,116,579
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:
13,594,530
12,978,504
Basic and diluted
0.18
0.11
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