Greenland Technologies Holding Corporation (GTEC), a prominent developer and manufacturer of electric industrial vehicles and drivetrain systems, announced impressive unaudited financial results for the second quarter and first half of 2024. The company witnessed a remarkable near 100% year-over-year increase in net income during the second quarter, demonstrating the significant scalability of its operations and the momentum it has been building.
Greenland’s CEO, Raymond Wang, attributed this success to the company’s unwavering focus on expanding its higher-profit, higher-return-on-investment opportunities. This strategy is paying off handsomely, and the company expects its growth trajectory to accelerate further in the future. Moreover, Greenland is strategically expanding its partner network to make it easier for customers to purchase and operate its electric industrial vehicles. This includes the expansion of its HEVI Authorized Service Provider (ASP) network and the introduction of an innovative financing program agreement.
In a strategic move, Greenland’s board of directors decided to terminate the planned spin-off of its drivetrain systems segment, citing changing market conditions. The company’s board concluded that the spin-off would likely not yield significant value for shareholders in the current market environment.
Greenland’s CFO, Jing Jin, emphasized the company’s strong financial position and positive outlook, despite market fluctuations. She highlighted the impressive growth in earnings per share (EPS), with an 88.89% increase in the second quarter and a 76.67% increase for the first six months of 2024.
Key Financial Highlights for the Second Quarter of 2024:
* Revenue reached approximately $23.02 million, representing a slight decrease of 2.3% compared to the same period in 2023. This decline was primarily due to a decrease in the sales volume of transmission products.
* Gross profit amounted to approximately $6.77 million, a decrease of 2.2% compared to the previous year. This reduction was primarily attributed to the decrease in sales volume.
* Despite the revenue and gross profit decreases, the gross margin remained stable at approximately 29.4%.
* Total operating expenses decreased by 20.7% to $2.79 million, driven by lower shipping fees, staffing costs, and general and administrative expenses.
* Income from operations increased by approximately $0.58 million to $3.99 million.
* Net income surged by 99.66% to approximately $5.87 million, with net income per basic and diluted share reaching $0.34, a significant increase of 88.89%.
Key Financial Highlights for the First Half of 2024:
* Revenue reached approximately $45.74 million, a slight increase of 0.0% compared to the same period in 2023.
* Gross profit amounted to approximately $12.42 million, a decrease of 0.2% compared to the previous year, primarily due to an increase in raw material costs.
* Gross margins remained relatively stable at 27.16% compared to 27.23% in the previous year.
* Total operating expenses decreased by 2.40% to $6.51 million, driven by lower shipping fees, staffing costs, and general and administrative expenses.
* Income from operations increased by approximately $0.13 million to $5.91 million.
* Net income increased by approximately $4.04 million to $9.44 million, with net income per basic and diluted share reaching $0.53, a significant increase of 76.67%.
Overall, Greenland’s strong financial performance reflects the company’s commitment to driving growth in its core electric industrial vehicle and drivetrain systems businesses. The company’s focus on profitability, strategic partnerships, and its decision to remain a unified company position it for continued success in the evolving market for clean industrial heavy equipment.
