UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 31, 2021 (March 30, 2021)
GREENLAND TECHNOLOGIES HOLDING CORPORATION
(Exact name of registrant as specified in its charter)
| British Virgin Islands | 001-38605 | N/A | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
|
11-F, Building #12, Sunking Plaza, Gaojiao Road Hangzhou, Zhejiang, People’s Republic of China |
311122 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number including area code: (86) 010-53607082
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b–2 of the Securities Exchange Act of 1934 (§ 240.12b–2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Ordinary shares, no par value | GTEC | The NASDAQ Stock Market LLC |
| ITEM 2.02 | Results of Operations and Financial Condition |
On March 30, 2020, Greenland Technologies Holding Corporation issued a press release to report its financial results for the fiscal year ended December 31, 2020. A copy of the press release is being filed as Exhibit 99.1 attached hereto and is incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| ITEM 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
| Exhibit No. | Description |
| 99.1 | Greenland Technologies Reports Full Year 2020 Results |
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Greenland Technologies Holding Corporation |
| March 31, 2021 | By: | /s/ Raymond Z. Wang |
| Name: | Raymond Z. Wang | |
| Title: | Chief Executive Officer |
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Exhibit 99.1
Greenland Technologies Reports Full Year 2020 Results
Highlights (Full Year 2020 compared to Full Year 2019)
| ● | 27.6% Increase in Revenue |
| ● | 3.5% Expansion of Gross Profit |
| ● | 34% Increase in Selling Expenses to Drive Growth |
| ● | 19.6% Increase in Net Income Per Basic and Diluted Share on Nearly 2.1 Million Higher Year-Over-Year Share Count |
EAST WINDSOR, N.J., March 30, 2021 – Greenland Technologies Holding Corporation (NASDAQ: GTEC) ("Greenland"), a technology developer and manufacturer of electric industrial vehicles and drivetrain systems for material handling machineries and vehicles, today announced audited results for the full year 2020 ended December 31, 2020.
Raymond Wang, CEO of Greenland Technologies Holding Corporation, commented, “Despite unprecedented challenges with the global pandemic, we achieved 27.6% growth in revenue for the full year 2020 compared to the prior year, as we executed on our operating strategy, focused on our long-term plan and supported our customers. Our team did an excellent job hitting our product roadmap benchmarks on time, with innovative lithium battery powered solutions such as electric industrial vehicles and other solutions to add value and further differentiate Greenland in the market. At the same time, we made significant progress on our manufacturing capacity expansion with multiple initiatives, including planning a major U.S. manufacturing expansion that will establish our U.S. market manufacturing footprint and increase our total worldwide capacity, and announcing a cooperation with strategic partner Fujian South China Heavy Machinery Manufacture Co. Ltd.”
Mr. Wang continued, “The expansion of Greenland from a critical component provider to a fully integrated electric industrial vehicle company, will expand the potential value of our addressable market opportunities on a major scale. To facilitate our success, we leveraged our robust R&D capabilities, strategic supply chain partners, and expertise in the development of our new line of electric industrial vehicles. We expect to have our first production-ready electric industrial vehicle this summer, which will be a compact electric loader vehicle with a payload capacity of approximately 1,800 kilograms (or 3,968 lbs.). This new line of electric industrial vehicles will offer customers a better return on investment when compared to traditional internal combustion vehicles. Following the first electric loader product, we plan to expand into other industrial vehicles and sizes, as we work to meet customer demand and build greater value for shareholders.”
Jing Jin, CFO of Greenland Technologies Holding Corporation, added, “While we are pleased with our revenue growth and higher profitability, our 19.6% year over year increase in net income per share to $0.67 for the full year 2020 would have been approximately $0.20 per share higher absent the dilution impact from the 2.08 million share increase in shares outstanding related to the Company’s offering process last year. Our successful offering provided capital to increase our investments in revenue generating areas and R&D, while reducing non-revenue generating general and administrative expenses. For example, we ended 2020 with about 270 employees across production, R&D, and sales and marketing, compared to about only 40 in management and administration. As a result, we ended 2020 in a strong financial position, and made the strategic decision to proactively increase our inventory level to ensure we could meet our customers’ needs during Chinese New Year, which typically affects production and transportation of materials. Overall, we remain focused on our long-term growth strategy and on driving both financial and operational improvements.”
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Full Year 2020 Results
Greenland’s revenue was approximately $66.9 million for the twelve months ended December 31, 2020, representing an increase of approximately $14.5 million, or 27.6%, as compared to approximately $52.4 million for the twelve months ended December 31, 2019. The year over year increase reflects ongoing customer demand growth and the fulfillment of backlog orders from the first half of 2020, and underscores the Company’s understanding that it is one of the major developers and manufacturers of transmission products for the small and medium sized forklift trucks.
The total cost of goods sold was approximately $54.1 million for the twelve months ended December 31, 2020, representing an increase by approximately $14.0 million, or 35.1%, as compared to approximately $40.1 million for the twelve months ended December 31, 2019. The year over year increase was due to the Company’s higher sales volume.
The Company’s gross profit was approximately $12.8 million for the twelve months ended December 31, 2020, representing an increase by approximately $0.04 million, or 3.5%, as compared to approximately $12.4 million for the twelve months ended December 31, 2019. Gross margin was approximately 19.2% and 23.6%, respectively, for the twelve months ended December 30, 2020 and for the twelve months ended December 31, 2019.
Income from operations for the twelve months ended December 31, 2020 was approximately $6.7 million, representing an increase of approximately $0.01 million, or 1.2%, as compared to approximately $6.6 million for the twelve months ended December 31, 2019.
Net income per basic and diluted share was approximately $0.67 per share for the twelve months ended December 31, 2020, representing an increase of approximately $0.11 per share or 19.6%, as compared to approximately $0.56 per share for the twelve months ended December 31, 2019. The year over year increase in net income per share would have been approximately $0.20 per share higher absent the dilution impact from the 2.08 million share increase in shares outstanding related to the Company’s offering process last year. As of March 30, 2021, the Company had 10,498,127 shares outstanding.
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Business Outlook
Looking forward, Mr. Wang, CEO of Greenland Technologies Holding Corporation, continued, “We exited 2020 in a great position as we execute on our strategy, drive improved financial results and strengthen our balance sheet. We are engaged in in the highest number of customer opportunities in the company’s history. Our R&D investments are paying off with 108 registered patents and two registered trademarks, as of December 31, 2020. Importantly, we are firmly on track for the planned July 2021 completion of our first production-ready electric industrial vehicle, a compact loader with a payload capacity of approximately 1,800 kilograms (3,968 pounds). Following the first electric vehicle, we plan to expand our product line to other industrial vehicles and sizes, including an electric forklift vehicle, electric digging vehicle and more. We are in the midst of a global clean energy and vehicle electrification trend, with the global construction equipment market anticipated to grow at a compound annual growth rate of 3.9% from 2020 to 2025, reaching $205 billion (1). We expect the electric subsegment will outpace the broader market growth as it gains momentum, with supply chains and support infrastructure fully built out. We are concentrating on the strategic opportunities that will contribute to our growth over the coming years and those that we believe present the most significant opportunities to build value for the company and shareholders.” (1) source: Marketsandmarkets, November 2020.
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 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.
For more information, please contact:
Global IR Partners
David Pasquale
New York Phone: +1-914-337-8801
GTEC@globalirpartners.com
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GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2020 AND 2019
(IN U.S. DOLLARS)
| For the year ended December 31, | ||||||||
| 2020 | 2019 | |||||||
| REVENUES | $ | 66,864,375 | $ | 52,400,844 | ||||
| COST OF GOODS SOLD | 54,051,367 | 40,022,243 | ||||||
| GROSS PROFIT | 12,813,008 | 12,378,601 | ||||||
| Selling expenses | 1,588,302 | 1,187,263 | ||||||
| General and administrative expenses | 2,131,405 | 2,231,953 | ||||||
| Research and development expenses | 2,384,951 | 2,355,307 | ||||||
| Total operating expenses | $ | 6,104,658 | $ | 5,774,523 | ||||
| INCOME FROM OPERATIONS | $ | 6,708,350 | $ | 6,604,078 | ||||
| Interest income | 2,645 | 151,532 | ||||||
| Interest expense | (930,634 | ) | (1,289,133 | ) | ||||
| Loss on disposal of property and equipment | (79,216 | ) | (252,556 | ) | ||||
| Other income/(loss) | 1,002,642 | 720,612 | ||||||
| Remeasurement gain from change in functional currency | 1,940,773 | - | ||||||
| INCOME BEFORE INCOME TAX | $ | 8,644,560 | $ | 5,934,533 | ||||
| INCOME TAX | 2,272,997 | 847,367 | ||||||
| NET INCOME | $ | 6,371,563 | $ | 5,087,166 | ||||
| LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | (386,939 | ) | 622,610 | |||||
| NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | $ | 6,758,502 | $ | 4,464,556 | ||||
| OTHER COMPREHENSIVE INCOME (LOSS): | 937,629 | (689,290 | ) | |||||
| Unrealized foreign currency translation income (loss) attribute to Greenland technologies holding corporation and subsidiaries | 298,056 | (534,862 | ) | |||||
| Unrealized foreign currency translation income (loss) attribute to Noncontrolling interest | 639,573 | (154,428 | ) | |||||
| Comprehensive income | 7,056,558 | 3,929,694 | ||||||
| Noncontrolling interest | 252,634 | 468,182 | ||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||||||||
| Basic and diluted | 10,018,197 | 7,932,567 | ||||||
| NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||||||
| Basic and diluted | 0.67 | 0.56 | ||||||
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GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2020 AND 2019
(IN U.S. DOLLARS)
| December 31, | December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,159,015 | $ | 2,123,485 | ||||
| Restricted cash | 2,244,038 | 3,593,722 | ||||||
| Notes receivables | 30,803,772 | 16,156,692 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $986,532 and $1,037,797, respectively | 12,408,548 | 11,971,889 | ||||||
| Inventories | 15,380,063 | 9,972,877 | ||||||
| Due from related parties-current | 38,535,171 | 36,042,829 | ||||||
| Advance to suppliers | 447,901 | 50,664 | ||||||
| Prepayments and Other current assets | 664,926 | 327,555 | ||||||
| Total Current Assets | $ | 107,643,434 | $ | 80,239,713 | ||||
| Non-current asset | ||||||||
| Property, plant, equipment and construction in progress, net | 20,135,339 | 20,630,251 | ||||||
| Land use rights, net | 4,035,254 | 3,862,547 | ||||||
| Other intangible assets | - | 5,174 | ||||||
| Due from related parties-non current | - | 430,034 | ||||||
| Deferred tax assets | 158,455 | 513,805 | ||||||
| Goodwill | 3,890 | 3,890 | ||||||
| Other non-current assets | 2,365 | 798,429 | ||||||
| Total non-current assets | $ | 24,335,303 | $ | 26,244,130 | ||||
| TOTAL ASSETS | $ | 131,978,737 | $ | 106,483,843 | ||||
| Current Liabilities | ||||||||
| Short-term bank loans | $ | 18,487,356 | $ | 16,861,615 | ||||
| Notes payable-bank acceptance notes | 25,889,067 | 15,050,902 | ||||||
| Accounts payable | 22,005,260 | 14,713,008 | ||||||
| Taxes payables | - | 12,529 | ||||||
| Customer deposits | 366,029 | 132,194 | ||||||
| Due to related parties | 9,051,119 | 3,481,984 | ||||||
| Other current liabilities | 2,212,325 | 3,086,859 | ||||||
| Long-term payable- current portion | 797,179 | 2,654,230 | ||||||
| Total current liabilities | $ | 78,808,335 | $ | 55,993,321 | ||||
| Long-term liabilities | ||||||||
| Long-term bank loans | - | - | ||||||
| Long-term payables | 166,292 | 1,349,850 | ||||||
| Other long-term liabilities | 2,342,648 | 2,178,548 | ||||||
| Total long-term liabilities | $ | 2,508,940 | $ | 3,528,398 | ||||
| TOTAL LIABILITIES | $ | 81,317,275 | $ | 59,521,719 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, no par value, 10,225,142 shares authorized; 10,225,142 and 10,006,142 shares issued and outstanding as of December 31, 2020 and December 31, 2019 | - | - | ||||||
| Additional paid-in capital | 13,707,398 | 15,226,685 | ||||||
| Statutory reserves | 4,517,117 | 3,866,574 | ||||||
| Retained earnings | 26,728,332 | 19,863,600 | ||||||
| Accumulated other comprehensive income (loss) | (62,925 | ) | (360,981 | ) | ||||
| Total shareholders’ equity | $ | 44,889,922 | $ | 38,595,878 | ||||
| Non-controlling interest | 5,771,540 | 8,366,246 | ||||||
| TOTAL EQUITY | $ | 50,661,462 | $ | 46,962,124 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 131,978,737 | $ | 106,483,843 | ||||
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