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): August 11, 2021 (August 10, 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.) |
|
50 Millstone Road, Building 400 Suite 130 East Windsor, NJ, United States |
08512 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number including area code: 1 (888) 827-4832
N/A
(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 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 August 10, 2021, Greenland Technologies Holding Corporation (the “Company”) issued a press release to report its unaudited financial results for the second quarter ended June 30, 2021. 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 Holding Corporation Reports Second Quarter 2021 Unaudited Financial 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 | ||
| Date: August 11, 2021 | By: | /s/ Raymond Z. Wang |
| Name: | Raymond Z. Wang | |
| Title: | Chief Executive Officer | |
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Exhibit 99.1
Greenland Technologies Holding Corporation Reports Second Quarter 2021 Unaudited Financial Results
- Second Quarter Revenue of $28.2 million, up 70.1% year over year
- Second Quarter Net Income of $3.2 million, up 114.2% year over year
- 2021 Revenue Guidance Raised to be between $90 million to $100 million
EAST WINDSOR, N.J., August 10, 2021 /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 second quarter ended June 30, 2021.
Second Quarter 2021 Financial and Operating Highlights
| ● | Total revenues were $28.2 million, an increase of 70.1% from $16.6 million in the second quarter of 2020. |
| ● | Gross margin was 20.2%, an increase of 2.8 percentage points year over year. |
| ● | Net Income was $3.2 million, an increase of 114.2% from $1.5 million in the second quarter of 2020. |
| ● | Number of transmission products sold was 42,046 units, an increase of 43.6% compared with 29,281 units in the second quarter of 2020 |
CEO and CFO Remarks
Mr. Raymond Wang, CEO of Greenland Technologies Holding Corporation, commented, “We have once again achieved a record quarter with revenue generated of $28.2 million representing a 70% revenue growth and 42,046 transmissions sold representing a 44% increase on a year over year basis. We are benefitting from strong demand as forklifts are the ultimate necessity for clients moving raw materials, components, and finished goods through a global supply chain to meet accelerating growth.”
Mr. Wang continued, “Our team continues to do an excellent job supporting the growing markets with operational excellence and innovative solutions. Our latest electric GEF-series lithium powered forklifts offer all the competitive advantages of lithium, with longer battery life and reduced maintenance costs, as compared to traditional lead acid and propane forklifts. With deliveries starting by September in the North America market we expect this to be additive to second half of 2021 revenue and our longer-term results. This line will be promptly followed by our industry disruptive GEL-1800, an all electric 1.8T rated front loader, and GEX-8000, an all electric 8.0T rated load excavator. We are pleased with our progress to date, but even more excited about Greenland’s future, as we expand our global business and build shareholder value.”
Mr. Jing Jin, Greenland Technologies’ Chief Financial Officer commented: “In the first half of 2021, we generated a total revenue of $52.8 million and net income of $5.6 million, doubling the revenue and tripling net income from the previous year. Our gross margin was 20.2% in the second quarter of 2021, an increase of 280 basis points from the second quarter of last year. These strong financial results demonstrate our market leading position to satisfy growing demands for high quality transmission products and our ability to navigate supply chain challenges. In June, we successfully raised $7 million for the strategic execution of new electric vehicle products launched in the U.S. With strong cash flow and a track record for delivering excellent revenue results, we are well positioned to lead in commercial vehicle electrification.”
Recent Developments and Strategic Highlights:
| ● | Debut of New GEF-Series Electric Lithium Forklifts |
In July 2021, Greenland launched its brand new GEF-series EV forklifts, one of the industry’s first lithium-powered EV forklift trucks. The GEF-series is designed with variously rated load capabilities and suited for a wide spectrum of applications, including logistics, warehousing, manufacturing, etc. Deliveries of this innovative series will commence in September 2021 in the North American market.
| ● | Completion of $7 Million Underwritten Public Offering |
In June 2021, Greenland closed the public offering of 857,844 ordinary shares and raised $7 million for strategic execution in operations
| ● | Forming Major Strategic Partnership with Shandong Zhongcha Heavy Industry Machinery |
In June 2021, Greenland entered a major strategic partnership with Shandong Zhongcha Heavy Industry Machinery Co. (“Shandong”), a multinational heavy machinery and automotive manufacturing company, to boost revenue and strengthen leadership position as a first mover.
The companies will jointly launch a lithium-powered forklift, which features Greenland’s new integrated drivetrain system and will be available for sale in the U.S. by Greenland. They will also combine R&D resources to develop the next stage of lithium-powered forklifts to ensure market leadership for both maintains in the long term.
| ● | Launch of EV Pre-booking Service |
On June 15, 2021, Greenland announced the launch of an online EV pre-booking service for its new GEL-1800 1.8-ton electric loader and its GEX-8000 electric excavator. Deliveries of the two electric industrial vehicle models are expected to start in the fourth quarter of 2021. Customers can reserve an industrial EV with a $250 refundable deposit.
| ● | Showcasing Greenland’s First Electric Industrial Vehicle at Hannover Messe 2021 Digital Expo |
In April 2021, Greenland showcased its new GEL-1800 1.8-ton electric loader at the Hannover Messe 2021 Digital Expo from April 12-16 to allow attendees to have a first look at the sleek design and production specifications of the Company’s first industrial EV. The vehicle is designed for a wide range of applications, including construction, mining, farming, industrial, etc.
Second Quarter 2021 Financial Results
Revenues
Total revenues were $28.2 million, an increase of approximately 70.1% year-over-year. The increase was primarily due to the significant increase in our sales volume resulting from the continuously growing market demand and the ability to boost supplies while some peers met challenges in handling material shortage and were unable to deliver. The number of transmission products sold increased 43.6% to 42,046 units from 29,281 units in the second quarter of 2020.
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Costs of Goods Sold
Costs of goods sold were $22.5 million, an increase of 64.3% from $13.7 million in the second quarter of 2020. The increase was primarily due to the increase in sales volume and the increase in raw material prices.
Gross profit
Gross profit was $5.7 million, an increase of 98.0% from $2.9 million in the second quarter of 2020.
Gross margin was 20.2%, up 2.8 percentage points from 17.4% in the second quarter of 2020. The increase was primarily due to a shift in the product mix towards the higher value and more sophisticated products such as hydraulic transmission products.
Operating expenses
Total operating expenses were $2.3 million, up 84.1% from $1.2 million in the second quarter of 2020. Operating expense as a percentage of total revenues was 8.0%, an increase of 0.6 percentage points compared to 7.4% in the second quarter of 2020. The increase in operating expenses was primarily due to the increase in sales and labor costs year-over-year.
| ● | Selling expenses were $0.50 million, an increase of 62.7% from $0.30 million in the second quarter of 2020. The increase was mainly due to the increase in the unit price of transportation expenses. |
| ● | General and administration expenses were $0.75 million, an increase of 69.6% from $0.44 million in the second quarter of 2020. The increase was primarily due to the expiration of the Chinese government’s policy related to the Covid-19 relief. |
| ● | Research and development expenses were $1.0 million, an increase of 111.4% from $0.48 million in the second quarter of 2020. The increase was mainly due to the increase in the R&D investment in higher value and more sophisticated products and electrification products. |
Income from operations
Income from operations was $3.5 million, an increase of 108.2% from $1.7 million in the second quarter of 2020.
Net Income
Net Income was $3.2 million, an increase of 114.2% from $1.5 million in the second quarter of 2020.
Earnings per share
Basic and diluted net income per ordinary share was $0.26, an increase of 100.0% from $0.13 in second quarter of 2020.
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Business Outlook
For the full year of 2021, the Company expects total revenues to be between $90 million to $100 million, as compared to the previous guidance range of $80 million to $90 million. The new revenue guidance range represents an increase of approximately 35% to 49% year over year from 2020.
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 Tuesday, August 10, 2021, U.S. Eastern Time (8:00 PM on August 10, 2021, 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/2837618
A replay of the conference call may be accessed by phone at the following numbers until August 18, 2021. To access the replay, please reference the conference ID 2837618.
| Phone Number | |
| International | +61 2 8199-0299 |
| United States | +1 (855) 452-5696 |
| China Hong Kong | +852 800963117 |
| Mainland China |
+86 4006322162 +86 8008700205 |
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.
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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
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GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2020
(UNAUDITED, IN U.S. DOLLARS)
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| REVENUES | $ | 28,204,307 | $ | 16,576,345 | $ | 52,815,201 | $ | 26,448,412 | ||||||||
| COST OF GOODS SOLD | 22,499,138 | 13,694,235 | 42,005,645 | 21,642,354 | ||||||||||||
| GROSS PROFIT | 5,705,169 | 2,882,110 | 10,809,556 | 4,806,058 | ||||||||||||
| Selling expenses | 495,462 | 304,535 | 874,692 | 521,376 | ||||||||||||
| General and administrative expenses | 752,212 | 443,476 | 1,663,351 | 1,517,885 | ||||||||||||
| Research and development expenses | 1,005,296 | 475,649 | 1,964,841 | 1,039,947 | ||||||||||||
| Total operating expenses | $ | 2,252,970 | $ | 1,223,660 | $ | 4,502,884 | $ | 3,079,208 | ||||||||
| INCOME FROM OPERATIONS | $ | 3,452,199 | $ | 1,658,450 | $ | 6,306,672 | $ | 1,726,850 | ||||||||
| Interest income | 4,833 | 42,521 | 9,428 | 75,831 | ||||||||||||
| Interest expense | (221,664 | ) | (389,072 | ) | (401,853 | ) | (710,764 | ) | ||||||||
| Other income | 311,114 | 255,580 | 598,090 | 852,832 | ||||||||||||
| INCOME BEFORE INCOME TAX | $ | 3,546,482 | $ | 1,567,479 | $ | 6,512,337 | $ | 1,944,749 | ||||||||
| INCOME TAX | 394,159 | 95,971 | 916,775 | 145,158 | ||||||||||||
| NET INCOME | $ | 3,152,323 | $ | 1,471,508 | $ | 5,595,562 | $ | 1,799,591 | ||||||||
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 371,570 | 212,411 | 686,241 | 283,830 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | $ | 2,780,753 | $ | 1,259,097 | $ | 4,909,321 | $ | 1,515,761 | ||||||||
| OTHER COMPREHENSIVE INCOME (LOSS): | 833,963 | 58,835 | 575,734 | (1,246,925 | ) | |||||||||||
| Unrealized foreign currency translation income (loss) attributable to Greenland technologies holding corporation and subsidiaries | 591,484 | 45,180 | 402,381 | (559,814 | ) | |||||||||||
| Unrealized foreign currency translation income (loss) attributable to Noncontrolling interest | 242,479 | 13,655 | 173,353 | (687,111 | ) | |||||||||||
| Comprehensive income | 3,372,237 | 1,304,277 | 5,311,702 | 955,947 | ||||||||||||
| Noncontrolling interest | 614,049 | 226,066 | 859,594 | (403,281 | ) | |||||||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||||||||||||||||
| Basic and diluted | 10,814,479 | 10,021,142 | 10,574,223 | 10,015,203 | ||||||||||||
| NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||||||||||||||
| Basic and diluted | 0.26 | 0.13 | 0.46 | 0.15 | ||||||||||||
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2021 AND DECEMBER 31, 2020
(IN U.S. DOLLARS)
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 10,756,968 | $ | 7,159,015 | ||||
| Restricted cash | 9,767,210 | 2,244,038 | ||||||
| Notes receivables | 33,113,729 | 30,803,772 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $996,984 and $986,532, respectively | 20,519,818 | 12,408,548 | ||||||
| Inventories | 17,731,415 | 15,380,063 | ||||||
| Due from related parties-current | 38,946,503 | 38,535,171 | ||||||
| Advance to suppliers | 732,019 | 447,901 | ||||||
| Prepayments and other current assets | 542,882 | 664,926 | ||||||
| Total Current Assets | $ | 132,110,544 | $ | 107,643,434 | ||||
| Non-current asset | ||||||||
| Property, plant, equipment and construction in progress, net | 19,534,056 | 20,135,339 | ||||||
| Land use rights, net | 4,030,352 | 4,035,254 | ||||||
| Other intangible assets | - | - | ||||||
| Due from related parties – non-current | - | - | ||||||
| Deferred tax assets | 158,698 | 158,455 | ||||||
| Goodwill | 3,890 | 3,890 | ||||||
| Other non-current assets | 41,860 | 158,455 | ||||||
| Total non-current assets | $ | 23,768,856 | $ | 24,335,303 | ||||
| TOTAL ASSETS | $ | 155,879,400 | $ | 131,978,737 | ||||
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2021 AND DECEMBER 31, 2020 (Continued)
(IN U.S. DOLLARS)
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
| Current Liabilities | ||||||||
| Short-term bank loans | $ | 11,899,452 | $ | 18,487,356 | ||||
| Notes payable-bank acceptance notes | 38,202,952 | 25,889,067 | ||||||
| Accounts payable | 28,300,234 | 22,005,260 | ||||||
| Customer deposits | 163,435 | 366,029 | ||||||
| Due to related parties | 7,904,430 | 9,051,119 | ||||||
| Other current liabilities | 1,475,090 | 2,212,325 | ||||||
| Long-term payable- current portion | 584,003 | 797,179 | ||||||
| Total current liabilities | $ | 88,529,596 | $ | 78,808,335 | ||||
| Long-term liabilities | ||||||||
| Long-term payables | - | 166,292 | ||||||
| Other long-term liabilities | 2,240,949 | 2,342,648 | ||||||
| Total long-term liabilities | $ | 2,240,949 | $ | 2,508,940 | ||||
| TOTAL LIABILITIES | $ | 90,770,545 | $ | 81,317,275 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, no par value, 11,448,327 shares authorized; 11,448,327 and 10,225,142 shares issued and outstanding as of June 30, 2021 and December 31, 2020. | - | - | ||||||
| Additional paid-in capital | 21,983,495 | 13,707,39 | ||||||
| Statutory reserves | 3,842,331 | 4,517,117 | ||||||
| Retained earnings | 32,312,439 | 26,728,332 | ||||||
| Accumulated other comprehensive loss | 339,456 | (62,925 | ) | |||||
| Total shareholders’ equity | $ | 58,477,721 | $ | 44,889,922 | ||||
| Non-controlling interest | 6,631,134 | 5,771,540 | ||||||
| TOTAL EQUITY | $ | 65,108,855 | $ | 50,661,462 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 155,879,400 | $ | 131,978,737 | ||||
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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