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Greenland Technologies Holding Corp. (GTEC)·Q4 2020 Earnings Summary

Executive Summary

  • Q4 2020 delivered a strong finish, with estimated quarterly revenue of $23.90M derived from FY 2020 less 9M 2020, and gross margin ~19.3%, reflecting robust demand and backlog fulfillment while margins normalized from Q3’s 20.6% .
  • No Q4 earnings call transcript or explicit numerical guidance was provided; management emphasized execution on electrification, U.S. manufacturing expansion, and being “firmly on track” to complete its first production-ready electric industrial vehicle (compact loader) by July 2021 .
  • Annual results show solid growth: revenue +27.6% y/y to $66.86M, operating income +1.2% y/y to $6.71M, and diluted EPS $0.67 (+19.6% y/y), though gross margin compressed to 19.2% from 23.6% and EPS was diluted by a ~2.08M share increase .
  • Consensus estimates for Q4 2020 EPS and revenue were unavailable via S&P Global at time of request, preventing beat/miss assessment; focus shifts to strategic catalysts including the December launch of the electric industrial vehicle division and planned North America product rollouts .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line momentum: FY 2020 revenue +27.6% y/y to $66.86M; Q4 revenue derived at ~$23.90M indicates solid demand and backlog fulfillment into year-end .
  • Strategic pivot to electrification: “We expect to have our first production-ready electric industrial vehicle this summer…a compact electric loader…approximately 1,800 kilograms (3,968 lbs.),” broadening the addressable market and positioning for cleaner energy trends .
  • Manufacturing expansion: planning “a major U.S. manufacturing expansion” to establish a U.S. footprint and increase global capacity, which should aid customer proximity and supply resilience .

What Went Wrong

  • Gross margin compression: FY gross margin declined to 19.2% (from 23.6% in 2019), reflecting higher COGS growth (+35.1% y/y) versus revenue growth (+27.6% y/y) .
  • Operating leverage muted: FY operating income rose just +1.2% y/y to $6.71M despite strong sales, indicating cost pressures and mix effects offsetting scale benefits .
  • EPS dilution: CFO noted EPS would have been ~$0.20 higher absent the ~2.08M increase in shares outstanding related to the offering, highlighting near-term per-share dilution from capital raising .

Financial Results

Quarterly comparison (oldest → newest)

MetricQ3 2020Q4 2020
Revenue ($USD)$16,520,598 $23,895,365 (Derived: FY $66,864,375 − 9M $42,969,010)
Gross Profit ($USD)$3,398,216 $4,608,734 (Derived: FY $12,813,008 − 9M $8,204,274)
Gross Margin (%)20.6% ~19.3% (Derived: $4,608,734 ÷ $23,895,365)
Total Operating Expenses ($USD)$1,158,931 $1,866,519 (Derived: FY $6,104,658 − 9M $4,238,139)
Operating Income ($USD)$2,239,285 $2,742,215 (Derived: FY $6,708,350 − 9M $3,966,135)
Net Income Attributable ($USD)$207,933 $3,930,870 (Derived: FY $6,758,502 − 9M $2,827,632)
Diluted EPS ($USD)$0.02 N/A (not separately disclosed for Q4)

Notes: Q4 figures are derived from audited FY 2020 minus unaudited 9M 2020; category presentations in quarterly vs annual releases may differ and include remeasurement gains in FY (e.g., $1.94M) that affect net income attribution .

Annual comparison

MetricFY 2019FY 2020
Revenue ($USD)$52,400,844 $66,864,375
Gross Profit ($USD)$12,378,601 $12,813,008
Gross Margin (%)23.6% 19.2%
Income from Operations ($USD)$6,604,078 $6,708,350
Net Income Attributable ($USD)$4,464,556 $6,758,502
Diluted EPS ($USD)$0.56 $0.67
Weighted Avg Shares7,932,567 10,018,197

Segment breakdown

SegmentFY 2020 RevenueCommentary
Transmission & Drivetrain Systems (core)Not separately disclosedCompany reports consolidated figures; emphasizes drivetrain products for small and medium forklift trucks and expansion into electric industrial vehicles .

KPIs and Balance Sheet Indicators (FY 2020)

KPIValueCommentary
Registered Patents108Supports R&D-led electrification strategy
Employees~270 (production, R&D, sales & marketing) vs ~40 management/adminStrategic resource allocation toward revenue-generating functions
Inventory ($USD)$15,380,063Proactively increased to meet demand around Chinese New Year
Cash & Equivalents ($USD)$7,159,015Improved liquidity vs FY 2019

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
First production-ready electric compact loaderJuly 2021N/A“Firmly on track” for July 2021 completion Introduced/maintained
Revenue/Margins/OpExN/A (Q4 2020 disclosures)N/ANot providedMaintained at “no numerical guidance”

Earnings Call Themes & Trends

Note: No Q4 2020 earnings call transcript was available in the document set; themes reflect press releases and prepared remarks.

TopicPrevious Mentions (Q2 2020)Previous Mentions (Q3 2020)Current Period (Q4 2020)Trend
Electrification/Product RoadmapNo disclosure foundDelayed robotic cargo carriers due to market uncertainty; set roadmap toward lithium-powered innovations On track for July 2021 compact loader; expansion into other electric industrial vehicles (forklift, digging vehicle) Accelerating execution
Supply Chain/COVIDNo disclosure foundTemporary suspension in Feb; logistics challenges; strategic inventory moves Proactive inventory build to meet demand; continued customer demand growth/backlog fulfillment Improving operational resilience
Manufacturing ExpansionNo disclosure foundN/APlanning major U.S. manufacturing expansion to establish footprint and increase capacity Capacity scaling
R&D/PatentsNo disclosure foundN/A108 registered patents; robust R&D capabilities leveraged for EV line IP base strengthening
Market/Regulatory TrendsNo disclosure foundN/AClean energy/electrification trend; construction equipment market CAGR ~3.9% to $205B (MarketsandMarkets, Nov 2020) Favorable macro tailwinds

Management Commentary

  • CEO on execution and electrification: “We achieved 27.6% growth in revenue for the full year 2020…with innovative lithium battery powered solutions such as electric industrial vehicles…planning a major U.S. manufacturing expansion…” .
  • CEO on product launch: “We expect to have our first production-ready electric industrial vehicle this summer, which will be a compact electric loader…approximately 1,800 kilograms (3,968 lbs.)…followed by other industrial vehicles and sizes” .
  • CFO on EPS dilution and investment focus: “Our 19.6% year over year increase in net income per share to $0.67…would have been approximately $0.20 per share higher absent the dilution impact from the 2.08 million share increase…” and emphasis on investing in revenue-generating areas and R&D .
  • Strategic division launch: “Launches New Division; Company Enters the Electric Industrial Vehicle Market” to diversify offerings and leverage IP, manufacturing, and global relationships .

Q&A Highlights

  • No Q4 2020 earnings call transcript was located; therefore, no Q&A themes or clarifications can be provided for this period based on primary call materials [List: none found 2020-12-01 to 2021-03-31].

Estimates Context

  • Wall Street consensus estimates (S&P Global) for Q4 2020 EPS and revenue were unavailable at time of request due to data restrictions; no beat/miss determination can be made. Values could not be retrieved from S&P Global; consensus comparison is not possible in this recap.
  • Where relevant, future estimate comparisons should be revisited once S&P Global access is available.

Key Takeaways for Investors

  • Q4 strength: Derived quarterly revenue ~$23.90M and operating income ~$2.74M underscore strong exit momentum, aided by backlog fulfillment and customer demand .
  • Margins normalizing: Q4 gross margin ~19.3% vs Q3 20.6%; FY margin compression to 19.2% highlights cost inflation/mix headwinds to monitor into 2021 .
  • Strategic catalyst: Electrification division launch and July 2021 compact loader milestone provide near-term product catalysts and narrative support for U.S./North America expansion .
  • Capital and dilution: FY EPS growth (+19.6%) came with share count dilution; assess future capital needs versus per-share value creation as EV initiatives scale .
  • Supply chain agility: Proactive inventory build and planned U.S. manufacturing expansion should enhance fulfillment and customer proximity—key in an uncertain logistics environment .
  • No Q4 call/consensus: Absence of a Q4 transcript and consensus data limits beat/miss assessments; focus on operational execution and electrification milestones for trading cues [List: none found; GetEstimates errors].
  • Medium-term thesis: Transition from component supplier to integrated electric industrial vehicle company increases TAM and potential margin structure as product mix shifts to higher-value EV solutions .

Search and document coverage notes:

  • Q4 2020 8-K 2.02 press release (full-year results; period flagged Q4 2020) read in full .
  • Q3 2020 8-K 2.02 press release read in full for trend analysis .
  • Other Q4-relevant press release: Electric industrial vehicle division launch (8-K 8.01) read in full .
  • No Q4 2020 earnings call transcript found; Q1 2021 transcript exists (outside scope) .
  • Prior two quarters: Q3 2020 available and used; Q2 2020 press release not found in the document set ; estimates via S&P Global were unavailable due to request limits (no values retrieved).