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): November 23, 2020 (November 23, 2020)
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 November 23, 2020, Greenland Technologies Holding Corporation issued a press release announcing certain financial results for the fiscal quarter ended September 30, 2020. A copy of the press release is attached hereto as Exhibit 99.1.
This information under this Item 2.02 and the press release attached to this Form 8-K as Exhibit 99.1 shall be deemed to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and shall not be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following is filed as an exhibit to this report:
| Exhibit No. | Description | |
| 99.1 | Press Release, dated November 23, 2020. |
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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 |
| November 23, 2020 | 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 Third Quarter 2020 Results
Highlights (3Q 2020 compared to 3Q 2019)
| ● | 38% Increase in Revenue |
| ● | 70% Expansion of Gross Profit |
| ● | 390 Basis Improvement in Gross Margin |
| ● | 122% Increase in Income from Operations |
HOWELL, N.J., November 23, 2020 – Greenland Technologies Holding Corporation (NASDAQ: GTEC) ("Greenland"), a technology developer and manufacturer of forklift transmission and drivetrain systems, today announced financial results for the third quarter ended September 30, 2020.
Raymond Wang, CEO of Greenland Technologies Holding Corporation, commented, “We are pleased with the strong growth of our business and significant expansion of gross profit and income from operations. COVID-19 has continued to affect business and manufacturing activities worldwide, with government mandated shutdowns complicating production and logistics. While we implemented a temporary suspension of manufacturing activities for most of February, we were able to restart and rebound as we moved through the year. Given the uncertain market environment, however, we made the strategic decision to delay the launch of our robotic cargo carriers. We believe this segment represents a major, long-term growth opportunity for the Company and we are committed to moving forward with this new product line. We expect our robotic cargo carriers will serve as a multi-year driver of our revenue growth and expansion of profitability due to the acceleration underway in companies seeking to implement higher levels of automation in all areas of their operations in an effort to reduce human operator exposure to COVID-19 and to avoid costly shutdowns.”
Jing Jin, CFO of Greenland Technologies Holding Corporation, said, “Our operations team has done an excellent job working with our supply chain to secure inventory, while trying to reduce the impact COVID-19 has had on higher costs and lower component availability. We ended the third quarter of 2020 in a stronger financial position, with an improved balance sheet, enabling us to invest in the growth opportunities that will help us achieve our long-term financial targets, as we work to build increased value for the Company and shareholders.”
Third Quarter 2020 Results
Greenland’s revenue was approximately $16.52 million for the three months ended September 30, 2020, representing an increase of approximately $4.57 million, or 38.2%, as compared to approximately $11.95 million for the three months ended September 30, 2019. The year over year increase reflects ongoing customer demand growth and the fulfillment of backlog orders from the first quarter of 2020 when the Company implemented a COVID-19 related shutdown.
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The total cost of goods sold was approximately $13.12 million for the three months ended September 30, 2020, representing an increase by approximately $3.17 million, or 31.9%, as compared to approximately $9.95 million for the three months ended September 30, 2019. The year over year increase was due to the Company’s higher sales volume.
The Company’s gross profit was approximately $3.40 million for the three months ended September 30, 2020, representing an increase by approximately $1.40 million, or 69.8%, as compared to approximately $2.00 million for the three months ended September 30, 2019. Gross margin was approximately 20.6% and 16.7%, respectively, for the three months ended September 30, 2020 and for the three months ended September 30, 2019.
Income from operations for the three months ended September 30, 2020 was approximately $2.24 million, representing an increase of approximately $1.23 million, as compared to approximately $1.01 million for the three months ended September 30, 2019.
Net income was approximately $0.46 million for the three months ended September 30, 2020, representing an increase of approximately $0.22 million, as compared to approximately $0.24 million for the three months ended September 30, 2019.
Business Outlook
Looking forward, Mr. Wang, CEO of Greenland Technologies Holding Corporation, continued, “Despite near term uncertainties related to COVID-19, we are very positive about the Company’s outlook for growth and profit expansion given our differentiated market position, track record of execution and innovation, large and growing global demand, and our robust financial position. Equally important, we are well under way in our product roadmap, including robotic cargo carriers and lithium battery powered innovations, to meet the growing long-term demand from customers seeking clean energy solutions, longer battery life, lower maintenance and overall improved performance.”
About Greenland Technologies Holding Corporation
Greenland Technologies Holding Corporation (NASDAQ: GTEC) is a developer and a manufacturer of transmission and drivetrain systems for material handling machineries and electric vehicles, as well as electric forklift trucks. The Company’s clean energy lithium battery systems require less maintenance, charge faster, operate more efficiently and last significantly longer than lead acid power. 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 Operations and Comprehensive Income
(Unaudited)
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| REVENUES | $ | 16,520,598 | $ | 11,951,535 | $ | 42,969,010 | $ | 40,502,305 | ||||||||
| COST OF GOODS SOLD | 13,122,382 | 9,949,895 | 34,764,736 | 31,875,891 | ||||||||||||
| GROSS PROFIT | 3,398,216 | 2,001,640 | 8,204,274 | 8,626,414 | ||||||||||||
| Selling expenses | 270,654 | 180,252 | 792,030 | 778,348 | ||||||||||||
| General and administrative expenses | 324,073 | 363,353 | 1,841,958 | 1,253,646 | ||||||||||||
| Research and development expenses | 564,204 | 450,111 | 1,604,151 | 1,600,890 | ||||||||||||
| Total operating expenses | $ | 1,158,931 | $ | 993,716 | $ | 4,238,139 | $ | 3,632,884 | ||||||||
| INCOME FROM OPERATIONS | $ | 2,239,285 | $ | 1,007,924 | $ | 3,966,135 | $ | 4,993,530 | ||||||||
| Interest income | 66,960 | 6,111 | 142,791 | 132,141 | ||||||||||||
| Interest expense | (231,760 | ) | (415,203 | ) | (942,524 | ) | (1,292,746 | ) | ||||||||
| Other income (loss) | (1,267,982 | ) | (309,018 | ) | (415,150 | ) | 40,092 | |||||||||
| INCOME BEFORE INCOME TAX | $ | 806,503 | $ | 289,814 | $ | 2,751,252 | $ | 3,873,017 | ||||||||
| INCOME TAX | 346,502 | 47,784 | 491,660 | 624,735 | ||||||||||||
| NET INCOME | $ | 460,001 | $ | 242,030 | $ | 2,259,592 | $ | 3,248,282 | ||||||||
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 252,068 | 86,346 | 535,898 | 420,650 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | $ | 207,933 | $ | 155,684 | $ | 1,723,694 | $ | 2,827,632 | ||||||||
| OTHER COMPREHENSIVE INCOME (LOSS): | 3,657,192 | (1,613,847 | ) | 2,410,267 | (1,725,902 | ) | ||||||||||
| Unrealized foreign currency translation income (loss) attributable to Greenland technologies holding corporation and subsidiaries | 2,863,032 | (1,662,531 | ) | 2,303,218 | (1,740,796 | ) | ||||||||||
| Unrealized foreign currency translation income attributable to Noncontrolling interest | 794,160 | 48,684 | 107,049 | 14,894 | ||||||||||||
| Comprehensive income (loss) | 3,070,965 | (1,506,847 | ) | 4,026,912 | 1,086,836 | |||||||||||
| Noncontrolling interest | 1,046,228 | 135,030 | 642,947 | 435,544 | ||||||||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||||||||||||||||
| Basic and diluted | 10,021,142 | 7,500,000 | 10,017,204 | 7,500,000 | ||||||||||||
| NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||||||||||||||
| Basic and diluted | 0.02 | 0.02 | 0.17 | 0.38 | ||||||||||||
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Greenland Technologies Holding Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands; Unaudited)
| September 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 10,418,741 | $ | 2,123,485 | ||||
| Restricted cash | 775,875 | 3,593,722 | ||||||
| Notes receivables, net of allowance for notes receivables of $7,354 and $15,338, respectively | 20,018,092 | 16,156,692 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,183,770 and $1,037,797, respectively | 15,693,614 | 11,971,889 | ||||||
| Inventories, net of provision for slow moving inventory of $76,922 and $134,535, respectively | 12,573,915 | 9,972,877 | ||||||
| Due from related parties-current | 1,104 | 36,042,829 | ||||||
| Advance to suppliers | 104,872 | 50,664 | ||||||
| Prepayments and Other current assets | 125,151 | 327,555 | ||||||
| Total Current Assets | $ | 59,711,364 | $ | 80,239,713 | ||||
| Non-current asset | ||||||||
| Property, plant, equipment and construction in progress, net | 19,861,333 | 20,630,251 | ||||||
| Land use rights, net | 3,888,621 | 3,862,547 | ||||||
| Other intangible assets | 12,031 | 5,174 | ||||||
| Due from related parties-non current | 37,210,144 | 430,034 | ||||||
| Deferred tax assets | 545,567 | 513,805 | ||||||
| Goodwill | 3,890 | 3,890 | ||||||
| Other non-current assets | 5,454 | 798,429 | ||||||
| Total non-current assets | $ | 61,527,040 | $ | 26,244,130 | ||||
| TOTAL ASSETS | $ | 121,238,404 | $ | 106,483,843 | ||||
| Current Liabilities | ||||||||
| Short-term bank loans | $ | 20,712,560 | $ | 16,861,615 | ||||
| Notes payable-bank acceptance notes | 17,671,375 | 15,050,902 | ||||||
| Accounts payable | 21,573,305 | 14,713,008 | ||||||
| Taxes payables | 268,861 | 12,529 | ||||||
| Customer deposits | 338,892 | 132,194 | ||||||
| Due to related parties | 4,076,314 | 3,481,984 | ||||||
| Other current liabilities | 1,513,260 | 3,086,859 | ||||||
| Long-term payable- current portion | 741,215 | 2,654,230 | ||||||
| Total current liabilities | $ | 66,895,782 | $ | 55,993,321 | ||||
| Long-term liabilities | ||||||||
| Long-term payables | 370,392 | 1,349,850 | ||||||
| Other long-term liabilities | 2,310,894 | 2,178,548 | ||||||
| Total long-term liabilities | $ | 2,681,286 | $ | 3,528,398 | ||||
| TOTAL LIABILITIES | $ | 69,577,068 | $ | 59,521,719 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, no par value: 10,021,142 and 10,006,142 shares issued and outstanding as of September 30, 2020 and December 31, 2019 | - | - | ||||||
| Additional paid-in capital | 15,269,485 | 15,226,685 | ||||||
| Statutory reserves | 4,338,618 | 3,866,574 | ||||||
| Retained earnings | 21,101,803 | 19,863,600 | ||||||
| Accumulated other comprehensive income (loss) | 1,942,237 | (360,981 | ) | |||||
| Total shareholders’ equity | $ | 42,652,143 | $ | 38,595,878 | ||||
| Non-controlling interest | 9,009,193 | 8,366,246 | ||||||
| TOTAL EQUITY | $ | 51,661,336 | $ | 46,962,124 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 121,238,404 | $ | 106,483,843 | ||||
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