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.,Nov. 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.

The total cost of goods sold was approximately $13.12 million for the three months ended September 30,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,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,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,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 transmissionand drivetrain systemsfor 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.

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

7,000

NET INCOME PER ORDINARY SHARE

ATTRIBUTABLE TO OWNERS OF THE

COMPANY:

Basic and diluted

0.02

0.02

0.17

0.38

Greenland Technologies Holding Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands; Unaudited)

September30,

December31,

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

$

80,713

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

$

121,404

$

106,483,843

Current Liabilities

Short-term bank loans

$

20,712,560

$

16,615

Notes payable-bank acceptance notes

17,671,375

15,050,902

Accounts payable

21,305

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

3,859

Long-term payable- current portion

741,215

2,654,230

Total current liabilities

$

66,895,782

$

55,321

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: 10,142 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

4,618

3,866,574

Retained earnings

21,101,803

19,600

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

$

121,843

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