Greenland Reports 75.3% Increase in Net Income for First Nine Months of 2024

Revenue for the First Nine Months of 2024 of $64.57 Million,Decreases Slightly from $67.56 Million in First Nine Months of 2023

Operating Expenses Decrease 15.6% for the First Nine Months of 2024 Compared to the First Nine Months of 2023

Strong Balance Sheet with Cash and Restricted Cash Balance of $20.72 Million After Repaying $9.25 Million in Loans

Continues to Execute on Growth Strategy with Significant Expansion of Product Roadmap and Strategic Partner Distribution,Sales and Support Ecosystem

EAST WINDSOR,N.J.,Nov. 15,2024 -- Greenland Technologies Holding Corporation (Nasdaq: GTEC) ("Greenland," "we," "our," "us," 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 nine months and third quarter ended September 30,2024,with net income for the first nine months of 2024 increasing 75.3% compared to the first nine months of 2023.

Raymond Wang,Chief Executive Officer of Greenland,said,"Our team continues to execute on our growth strategy with significant expansion of our product roadmap,and our strategic partner distribution,sales and support ecosystem. This includes launching our game changing all electric vehicle,model H65L,which was the largest electric wheel loader available in North America at launch. As with all HEVI products,customers can expect the same reliable performance they demand with fewer costs and zero emissions. Our focus on delivering maximum productivity with minimal environmental impact is resonating with customers. We expect that as the broader economy continues to rebound and demand for our electric vehicles will increase further. We are confident in our outlook for the coming quarters based on discussions with customers,our backlog of orders and the tailwinds benefiting the Company from supportive regulatory and subsidy."

Jing Jin,Chief Financial Officer of Greenland,commented,"For the first nine months of 2024,we drove operating expenses down 15.6% and net income up 75.3% compared to the first nine months of 2023,all with a corresponding 4.4% decrease in revenue over the same period. This surge in profitability is a testament to the durability of our business model and our unwavering focus on driving costs down across our operations and profits up. We have emerged from a challenging period in global business in a stronger position,with a healthy balance sheet to support our growth strategy,as we continue to prioritize building shareholder value."

Nine Months Ended September 30,2024 Financial Highlights

Greenland's revenue was approximately $64.57 million for the nine months ended September 30,representing a decrease of approximately $2.99 million,or 4.4%,as compared to that of approximately $67.56 million for the nine months ended September 30,2023. The decrease in revenue was primarily a result of the decrease of approximately $3.60 million in the Company's sales volume of transmission products for the nine months ended September 30,2024. On an Renminbi ("RMB") basis,our revenue for the nine months ended September 30,2024 decreased by approximately 2.2% as compared to that for the nine months ended September 30,2023.

Greenland's cost of goods sold consists primarily of material costs,freight charges,purchasing and receiving costs,inspection costs,internal transfer costs,wages,employee compensation,amortization,depreciation and related costs,which are directly attributable to the Company's manufacturing activities. The total cost of goods sold was approximately $47.19 million for the nine months ended September 30,representing a decrease by approximately $1.65 million,or 3.4%,as compared to that of approximately $48.84 million for the nine months ended September 30,2023.

Greenland's gross profit was approximately $17.39 million for the nine months ended September 30,representing a decrease by approximately $1.33 million,or 7.1%,as compared to that of approximately $18.72 million for the nine months ended September 30,2023. For the nine months ended September 30,2024 and 2023,Greenland's gross margins were approximately 26.9% and 27.7%,respectively. The decrease in gross profit in the nine months ended September 30,2024 compared to the nine months ended September 30,2023 was primarily due to a decrease in our sales volume.

Total operating expenses were $8.55 million for the nine months ended September 30,a decrease of 15.6% from $10.13 million in the first nine months of 2023. The decrease was primarily due to lower advertising and marketing expenses,shipping fees,staffing costs,general and administrative expenses,and research and development expenses.

Income from operations for the nine months ended September 30,2024 was approximately $8.84 million,representing an increase of approximately $0.25 million,as compared to that of approximately $8.59 million for the nine months ended September 30,2023.

Net income was approximately $9.80 million for the nine months ended September 30,representing an increase of approximately $4.21 million,as compared to that of approximately $5.59 million for the nine months ended September 30,2023. Net income per basic and diluted share was $0.48 for the nine months ended September 30,representing an increase of 118.2%,as compared to $0.22 for the nine months ended September 30,2023.

Cash equivalents refers to all highly liquid investments purchased with original maturity of three months or less. As of September 30,Greenland had approximately $17.63 million of cash and cash equivalents,representing a decrease of approximately $5.35 million,or 23.27%,as compared to approximately $22.98 million as of December 31,2023. The decrease of cash and cash equivalents was mainly due to a decrease in short-term bank loans and notes payable,as compared to that as of December 31,2023.

Restricted cash represents the amount held by a bank as security for bank acceptance notes and therefore is not available for use until the bank acceptance notes are fulfilled or expired,which typically takes less than twelve months. As of September 30,Greenland had approximately $3.09 million of restricted cash,representing a decrease of approximately $2.12 million,or 40.64%,as compared to that of approximately $5.21 million as of December 31,2023. The decrease of restricted cash was due to a decrease of notes payable.

For the nine months ended September 30,the Company's PRC subsidiary,Zhejiang Zhongchai Machinery Co. Ltd.,paid off approximately $8.56 million in bank loans,and approximately $0.69 million associated with loans to third parties,while maintaining $17.63 million cash on hand. The Company plans to maintain the current debt structure and rely on governmentally supported loans with lower costs,if necessary.

As of September 30,Greenland had approximately $20.27 million of accounts receivables,an increase of approximately $3.79 million,or 22.97%,as compared to approximately $16.48 million as of December 31,2023. The increase in accounts receivables was due to the increase in our sales volume and our slowed-down efforts in receivables collections.

3Q 2024 Financial Highlights

Greenland's revenue was approximately $18.83 million for the three months ended September 30,representing a decrease of approximately $3.01 million,or 13.8%,as compared to that of approximately $21.84 million for the three months ended September 30,2023. The decrease in revenue was primarily a result of the decrease of approximately $2.88 million in the Company's sales volume of transmission products for the three months ended September 30,2024. On an RMB basis,our revenue for the three months ended September 30,2024 decreased by approximately 14.9% as compared to that for the three months ended September 30,which are directly attributable to the Company's manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was approximately $13.87 million for the three months ended September 30,representing a decrease by approximately $1.70 million,or 10.9%,as compared to that of approximately $15.57 million for the three months ended September 30,2023. Cost of goods sold decreased due to the decrease in our sales volume.

Greenland's gross profit was approximately $4.97 million for the three months ended September 30,representing a decrease by approximately $1.30 million,or 20.8%,as compared to that of approximately $6.27 million for the three months ended September 30,2023. For the three months ended September 30,Greenland's gross margin were approximately 26.4% and 28.7%,respectively. The decrease in gross profit in the three months ended September 30,2024 compared to the three months ended September 30,2023 was primarily due to the decrease in our sales volume.

Total operating expenses were $2.04 million,a decrease of 41% from $3.46 million in the third quarter of 2023. The decrease was primarily due to lower advertising and marketing expenses,and research and development expenses.

Income from operations for the three months ended September 30,2024 was approximately $2.93 million,representing an increase of approximately $0.12 million,as compared to that of approximately $2.81 million for the three months ended September 30,2023.

Net income was approximately $0.36 million for the three months ended September 30,representing an increase of approximately $0.17 million,as compared to that of approximately $0.19 million for the three months ended September 30,2023. Net loss per basic and diluted share was $0.05 for the three months ended September 30,representing a 29% improvement,as compared to a net loss of $0.07 for the three months ended September 30,2023.

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. Information on the Company's clean industrial heavy equipment division can be found at HEVI Corp.

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 Reports on Form 10-K filed with the U.S. 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 the success of Greenland's business execution,ability to unlock shareholder value or its ability to grow its business as an integrated company. 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.

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(AUDITED,IN U.S. DOLLARS)

September30,

December31,

2024

2023

ASSETS

Current assets

Cash and cash equivalents

$

17,633,936

$

22,981,324

Restricted cash

3,091,545

5,208,063

Short Term Investment

7,053,694

2,818,068

Notes receivable

27,681,834

27,135,249

Accounts receivable,net

20,268,970

16,483,533

Inventories,net

21,844,780

24,596,795

Due from related parties-current,net

228,311

225,927

Advance to suppliers

631,924

288,578

Prepayments and other current assets

1,748,121

53,204

Total Current Assets

$

100,183,115

$

99,790,741

Non-current asset

Property,plant,equipment and construction in progress,net

13,823,008

13,698,997

Land use rights,net

3,423,184

3,448,505

Other intangible assets

118,139

189,620

Deferred tax assets

483,781

256,556

Right-of-use assets

1,818

2,125,542

Fixed deposit

7,337,008

9,916,308

Other non-current assets

390,365

1,050,698

Total non-current assets

$

27,324,303

$

30,686,226

TOTAL ASSETS

$

127,507,418

$

130,476,967

Current Liabilities

Short-term bank loans

$

-

$

3,042,296

Notes payable-bank acceptance notes

25,463,319

36,712,562

Accounts payable

26,342,111

25,272,528

Taxes payables

767,200

758,307

Customer deposits

420,266

137,985

Due to related parties

3,831,666

3,636

Other current liabilities

2,365,909

2,281,507

Lease liabilities

506,118

487,695

Total current liabilities

$

59,696,589

$

72,524,516

Non-current liabilities

Lease liabilities

1,301,291

1,684,614

Deferred revenue

1,372,358

1,529,831

Warrant liability

3,841,293

4,084,605

Total non-current liabilities

$

6,514,942

$

7,299,050

TOTAL LIABILITIES

$

66,211,531

$

79,566

COMMITMENTS AND CONTINGENCIES

-

-

Shareholders' equity

Ordinary shares,no par value,unlimited shares authorized;13,594,530 and

13,530 shares issued and outstanding as of September 30,2024 and

December 31,2023.

-

-

Additional paid-in capital

30,286,560

30,560

Statutory reserves

3,842,331

3,331

Retained earnings

25,003,855

18,535,133

Accumulated other comprehensive loss

(2,004,595)

(2,583,794)

Total shareholders' equity

$

57,128,151

$

50,080,230

Non-controlling interest

4,167,736

573,171

TOTAL SHAREHOLDERS' EQUITY

$

61,295,887

$

50,653,401

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

127,967

GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(AUDITED,IN U.S. DOLLARS)

For the three months ended

September30,

For the nine months ended

September30,

2024

2023

2024

2023

Revenues

$

18,834,093

$

21,836,761

$

64,574,944

$

67,555,570

Cost of goods sold

13,868,406

15,568,224

47,188,133

48,835,766

Gross profit

4,965,687

6,537

17,386,811

18,719,804

Selling expenses

397,444

606,649

1,412,086

1,174

General and administrative expenses

1,202,242

1,610,100

4,585,163

4,771,568

Research and development expenses

437,978

1,245,646

2,548,765

3,931

Total operating expenses

$

2,037,664

$

3,462,395

$

8,546,014

$

10,130,673

INCOME FROM OPERATIONS

$

2,928,023

$

2,806,142

$

8,840,797

$

8,589,131

Interest income

237,333

4,242

622,278

79,318

Interest expense

(9,477)

(72,952)

(89,325)

(218,949)

Change in fair value of the warrant liability

(2,661,012)

-

243,312

-

Other income (loss)

208,676

(1,663,627)

1,023,713

(1,375,252)

INCOME BEFORE INCOME TAX

$

703,543

$

1,073,805

$

10,640,775

$

7,074,248

INCOME TAX EXPENSE

344,250

878,922

839,050

1,480,595

NET INCOME

$

359,293

$

194,883

$

9,801,725

$

5,593,653

LESS: NET INCOME ATTRIBUTABLE TO

NONCONTROLLING INTEREST

1,043,684

1,082,303

3,333,003

2,634,960

NET INCOME ATTRIBUTABLE TO GREENLAND

TECHNOLOGIES HOLDING CORPORATION

AND SUBSIDIARIES

$

(684,391)

$

(887,420)

$

6,468,722

$

2,958,693

OTHER COMPREHENSIVE INCOME (LOSS):

2,153,895

3,756,643

840,761

(517,156)

Unrealized foreign currency translation loss attributable to

Greenland Technologies Holding Corporation and

subsidiaries

1,530,392

2,251,583

579,199

(721,427)

Unrealized foreign currency translation loss attributable to

non-controlling interest

623,503

1,505,060

261,562

204,271

Total comprehensive income attributable to Greenland

technologies holding corporation and subsidiaries

846,001

1,364,163

7,047,921

2,237,266

Total comprehensive income attributable to

noncontrolling interest

1,667,187

2,587,363

3,565

2,839,231

WEIGHTED AVERAGE ORDINARY SHARES

OUTSTANDING:

13,530

13,307,954

Basic and diluted

(0.05)

(0.07)

0.48

0.22