Greenland Technologies Holding Corporation Reports Second Quarter 2021 Unaudited Financial Results

EAST WINDSOR,N.J.,Aug. 10,2021 -- 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 48.5% compared with 28,305 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 49% 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 48.5% to 42,046 units from 28,305 units in the second quarter of 2020.

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.

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,U.S. Eastern Time (8:00 PM on August 10,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

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.

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

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE AND SIX 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

1,296

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.

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30,2021 AND DECEMBER 31,2020

(IN U.S. DOLLARS)

June 30,

December31,

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.

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30,2020 (Continued)

(IN U.S. DOLLARS)

June 30,

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

22,260

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

$

2,949

$

2,508,940

TOTAL LIABILITIES

$

90,770,545

$

81,317,275

COMMITMENTS AND CONTINGENCIES

EQUITY

Ordinary shares,no par value,11,327 shares authorized; 11,327 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

4,117

Retained earnings

32,312,439

26,728,332

Accumulated other comprehensive loss

339,456

(62,925)

Total shareholders' equity

$

58,477,721

$

44,922

Non-controlling interest

6,631,134

5,771,540

TOTAL EQUITY

$

65,108,855

$

50,661,462

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

155,737

The accompanying notes are an integral part of the unaudited consolidated financial statements.

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