Executive Summary

Record quarter: revenue $24.61M (+149.3% YoY), gross margin 20.7% (+120 bps YoY), and EPS $0.21, powered by 36,986 transmission units delivered (+129.7% YoY) .
Operating leverage was significant: operating income $2.85M vs $0.07M YoY; net income $2.44M vs $0.33M YoY, with OpEx at 9.1% of revenue (down 970 bps YoY) .
FY 2021 revenue guidance introduced at $80–$90M (+20%–35% YoY), reflecting core drivetrain demand and initial Industrial EV contributions later in the year .
Strategic catalysts: lithium-powered integrated drivetrains gaining traction, U.S. assembly footprint for electric industrial vehicles (GEL 1800) targeted for Q4 commercialization; management underscores strong China forklift demand and electrification tailwinds .

What Went Well and What Went Wrong

What Went Well

Best quarter to date with $24.61M revenue, 36,986 units delivered; CEO: “We achieved our best quarter to date…record delivery of roughly 37,000 transmission units” .
Gross margin expansion to 20.7% driven by reduced material costs via supplier negotiations and productivity gains; CFO: “we generated 20.7% of gross margin…higher than…2019.5%” .
Operating efficiency: OpEx +21% YoY vs revenue +149%, lowering OpEx/revenue to 9.1%; CFO emphasized process automation and optimized management functions .

What Went Wrong

Rising raw material (steel) costs created procurement challenges; CEO noted China steel prices up ~40% since January, requiring intensive sourcing efforts to sustain production .
Sales concentration: >95% revenue from China; global diversification remains future-focused (U.S. market entry in 2021/2022) .
Limited quarterly disclosure on segment/product mix (no Q1 segment breakdowns); visibility into non-forklift EV revenue limited to annual disclosures, constraining near-term mix analysis .

Financial Results

Metric	Q1 2020	Q3 2020	Q1 2021
Revenue ($USD Millions)	$9.87	$16.52	$24.61
EPS (Basic & Diluted, $)	$0.03	$0.02	$0.21
Gross Margin (%)	19.5%	20.6%	20.7%
Operating Income ($USD Millions)	$0.07	$2.24	$2.85
Net Income ($USD Millions)	$0.33	$0.46	$2.44
Transmission Units Sold (’000)	16.10	N/A	36.99

KPIs and Operating Detail (Q1 2021 vs Q1 2020):

KPI	Q1 2020	Q1 2021
COGS ($USD Millions)	$7.95	$19.51
Gross Profit ($USD Millions)	$1.92	$5.10
Selling Expense ($USD Millions)	$0.22	$0.38
G&A Expense ($USD Millions)	$1.07	$0.91
R&D Expense ($USD Millions)	$0.56	$0.96
OpEx as % of Revenue	18.8%	9.1%
Shares Outstanding (Weighted Avg)	10.01M	10.33M

Segment/Product Mix (context – annual):

Product	FY 2019 Revenue ($USD)	FY 2020 Revenue ($USD)
Transmission boxes for Forklift	$52,140,258	$58,407,137
Transmission boxes for Non-Forklift (EV, etc.)	$260,586	$8,457,238
Total	$52,400,844	$66,864,375

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2021	None provided	$80M–$90M	Introduced

Management commentary indicates Industrial EV commercialization in Q4 2021 with U.S. assembly sites; no explicit margin, OpEx, OI&E, tax rate, or dividend guidance provided .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2020 and FY 2020)	Current Period (Q1 2021)	Trend
Electrification & Lithium Adoption	Delayed robotics; ramping lithium innovations; planning U.S. manufacturing; 108 patents	Integrated drivetrains for lithium forklifts seeing strong adoption; GEL 1800 EV loader to be commercially available in Q4 2021	Accelerating product roadmap adoption
Supply Chain & Raw Materials	COVID-related disruptions managed; improved balance sheet, inventory planning	Steel prices +40% since Jan; expanded supplier base; expect policy-driven normalization	Short-term cost pressure; medium-term stabilization expected
Demand in China	Backlog fulfillment; strong OEM demand lifted Q3	China forklift demand “skyrocketing”; OEM growth ~40%+; China ~40% of global forklift sales	Robust domestic demand continues
Geographic Diversification	Planning U.S. manufacturing footprint	>95% sales China; U.S. entry starting with EVs; assembly in U.S. via asset-light model	Early-stage international expansion
Market Position	Leading transmission developer; expanding product scope	~35% forklift drivetrain share; largest independent supplier in China	Reinforced leadership
R&D Execution	108 patents; roadmap milestones	R&D +70% YoY to $0.96M; beta phase for EVs completed	Sustained investment in innovation

Management Commentary

CEO: “We achieved our best quarter to date, with $24.6 million in revenue driven by a record delivery of roughly 37,000 transmission units… demand for material handling vehicles… in China has never been larger” .
CEO: “We expect to have our first production-ready electric industrial vehicle, an electric loader… 1.8-ton payload… powered by a 141kwh lithium battery, in Q4 of this year” .
CFO: “Operating expenses as a percentage of total revenue was 9.1%, a decrease of 9.7 percentage point compared to 18.8%… general and administrative expenses were $0.9 million, a decrease of 15%” .
CEO on raw materials: “price of steel has increased by 40%… we anticipate that the price of steel is going to drop down dramatically” .
CEO on market share and customers: “largest independent drive train supplier for forklift trucks in China with over 35% market share… clientele includes Toyota, Linde, Heli, Hangcha, and Doosan” .

Q&A Highlights

Market share definition: ~35% share across both electric and ICE forklifts; not inclusive of other small equipment categories .
Geographic concentration: >95% sales in China; shift toward global sales expected starting 2022 .
Growth drivers: China infrastructure and warehouse build-out; electrification with lithium adoption (+186% YoY for lithium forklifts; 25% of electric forklift sales) driving integrated drivetrain demand .
Margin dynamics: Steel +40% since Jan; procurement secured; expectation of price relief from policy changes; potential further margin improvement thereafter .
Industrial EV launch: Beta R&D completed; pilot cost ~$150k–$250k; full-scale assembly investment $2.5M–$5M; U.S. macro-assembly model with China-sourced core components; commercialization targeted Q4 2021, with sales impact in 2022 .

Estimates Context

Wall Street consensus from S&P Global (EPS, revenue) for Q1 2021 and FY 2021 was unavailable at time of access due to SPGI request limits. As a result, we cannot quantify beats/misses versus consensus for this quarter [SPGI error: Daily Request Limit Exceeded].
Given the magnitude of outperformance vs prior year and sequential step-up vs Q3 2020, sell-side estimates may need upward revisions for FY 2021 to reflect stronger baseline demand, margin resilience, and EV commercialization timing .

Key Takeaways for Investors

Strong operational execution and pricing/productivity levers drove record revenue and margin expansion; operating leverage is evident and likely persists if raw materials normalize .
China forklift demand and lithium adoption remain powerful tailwinds; integrated drivetrain product line positions GTEC to capture OEM urgency to electrify .
FY 2021 guidance ($80–$90M) now anchors expectations; watch Q2/Q3 trajectory for run-rate sustainability and early Industrial EV revenue signals .
U.S. expansion via asset-light assembly reduces capex intensity and accelerates EV market entry; commercialization in Q4 2021 could be a narrative catalyst into 2022 .
Supply chain breadth improved under stress; potential steel price relief may support further margin improvement, offering upside to profitability .
Sales concentration in China is a risk; execution on U.S. EV entry and diversification will be critical to multiple re-rating .
With consensus unavailable, near-term estimate revisions are probable following record Q1—monitor future calls for EV order intake, mix, and margin guidance updates .

Appendix: Additional Data Points

Balance sheet strength: Current assets $121.34M; total equity $54.76M as of 3/31/21 .
Q3 2020 context: Revenue $16.52M, gross margin 20.6%, operating income $2.24M; COVID backlog fulfillment enabled the step-up ahead of Q4/Q1 records .

Greenland Technologies Holding Corp. (GTEC)·Q1 2021 Earnings Summary